world-economy

EU Conditions Ukraine Aid Package on Tax Reforms

The European Union is linking disbursement of funds from its €90 billion assistance program for Ukraine to implementation of tax measures that have drawn domestic opposition, according to officials briefed on the conditions. The requirement aligns with demands previously issued by the International Monetary Fund as part of broader economic restructuring efforts. The EU's decision to attach structural conditions to the aid reflects growing pressure on Kyiv to undertake fiscal reforms even as the country manages wartime reconstruction priorities. Officials said the tax changes face resistance from Ukrainian lawmakers and business groups. The conditional approach mirrors strategies the bloc has employed in previous assistance agreements, where reforms are tied to fund releases to ensure compliance with agreed-upon targets.