**EU’s New Ukraine Export Credit Facility Gets First Member: Denmark**
The European Union has taken a significant step towards supporting its member countries in doing business with Ukraine, despite the ongoing war with Russia. Denmark has become the first country to join the EU’s new 300 million euro export credit guarantee facility, designed to protect small and medium-sized firms that export to Ukraine.
**A New Era of Cooperation**
The agreement between Denmark’s export credit agency EIFO and the European Commission is a crucial milestone in further integrating the EU and Ukrainian economies. According to Valdis Dombrovskis, the European Commission’s Executive Vice-President for an Economy that Works for People, this facility represents “a significant step forward” in supporting trade between the two regions.
The facility will provide protection to Danish companies trading with Ukrainian counterparts, giving them peace of mind if they face financial difficulties due to the war. Up to 40 Danish companies are expected to benefit from this agreement.
**A Growing Trade Relationship**
Trade between the EU and Ukraine has been increasing steadily, with exports reaching nearly 43 billion euros in 2023, according to Eurostat data. This new facility is designed to support small and medium-sized firms that have traditionally faced difficulties in accessing credit due to their smaller size.
Germany, the Netherlands, Austria, and other central and eastern European countries are expected to join soon, with more than a dozen similar agreements planned over the next few weeks.
**A Crucial Step Towards Ukraine’s EU Membership**
The European Commission’s support for Ukrainian businesses is also seen as a crucial step towards Ukraine’s accession process. The country has been in talks with the EU since last year, and this new facility demonstrates the bloc’s commitment to supporting Ukraine’s economic development despite the ongoing conflict.
**Commentary**
This development highlights the EU’s efforts to strengthen its economic ties with Ukraine at a time when trade between the two regions is growing rapidly. While the war with Russia presents significant challenges for both economies, the EU’s support for Ukrainian businesses demonstrates its commitment to fostering closer economic cooperation between member countries and third-party nations.
The fact that Denmark has been the first country to join this facility suggests that other member states are eager to participate in this initiative, which could ultimately lead to increased trade volumes and job creation on both sides of the border.
Read More @ www.reuters.com
