European Peace Facility: Council increases the financial ceiling to nearly €7.98 billion until 2027
The Council adopted a decision increasing the financial ceiling of the European Peace Facility (EPF) to €7.979 billion (in current prices) until 2027, ensuring that additional financial needs can be covered.
The European Peace Facility has now become an integral part of the EU’s support to promote peace and security globally. Today’s decision brings the financial ceiling of the European Peace Facility to over €7.9 billion. Ensuring the financial sustainability of this instrument is crucial for our support not only to Ukraine, but also for our partners in other parts of Europe, Africa and the Middle East, as needs continue to arise.
This decision implements the political agreement reached on 12 December 2022, when the Council decided to increase the overall EPF financial ceiling by €2 billion (in 2018 prices) in 2023, and allow for the possibility of a further increase at a later stage (up to €5.5 billion in 2018 prices until 2027).
The Council also decided to set a financial reference amount for the common costs of the EU Crisis Management Military Exercise 2023 (MILEX 23) at €5 million and introduce more flexibility in the collection and use of financial contributions from member states and in their use by the facility.
In its conclusions of 15 December 2022, the European Council reiterated the global dimension of the Facility and welcomed the agreement in the Council on 12 December 2022 to ensure its financial sustainability.
Background and next steps
The European Peace Facility was established in March 2021 to finance all common foreign and security policy (CFSP) actions relating to military and defence matters, with the aim of preventing conflict, preserving peace, and strengthening international security and stability. In particular, the European Peace Facility allows the EU to finance actions designed to strengthen the capacities of non-EU countries and regional and international organisations in relation to military and defence matters.
The EPF is an off-budget instrument and originally had an overall financial ceiling of €5 billion in 2018 prices for the period 2021-2027, with annual ceilings that ranged from €420 million in 2021 to €1.132 billion in 2027.
Thanks to the EPF, the EU has been supporting the Ukrainian Armed Forces through seven successive support packages so far, as well as many other countries such as: Mozambique, Georgia, the Republic of Moldova, the Republic of Mali, Somalia, Niger, Jordan, Bosnia and Herzegovina, Lebanon and Mauritania, as well as military components of African-led Peace Support Operations and multinational units such as the Balkan Medical Task Force.