14.7.2010 Official Journal of the European Union L 179/1 (Legislative acts) | DECISIONS DECISION No 388/2010/EU OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL of 7 July 2010 providing macrofinancial assistance to Ukraine THE EUROPEAN PARLIAMENT AND THE COUNCIL OF THE EUROPEAN UNION, Having regard to the Treaty on the Functioning of the European Union, and in particular Article 212 thereof, Having regard to the proposal from the European Commission, Acting in accordance with the ordinary legislative procedure (1), Whereas: 1 S Relations between Ukraine and the European Union are developing within the framework of the European Neigh- bourhood Policy. In 2005, the Community and Ukraine agreed on a European Neighbourhood Policy Action Plan identifying medium-term  priorities in EU-Ukraine relations. That Action Plan was replaced by the EU- Ukraine Association Agenda of November 2009. Since 2007, the Community and Ukraine have been negotiating an Association Agreement that is expected to replace the existing Partnership and Cooperation Agreement. The framework of EU-Ukraine relations is further enhanced by the newly launched Eastern Partnership. The Ukrainian economy has been increasingly affected by the international financial crisis, with dramatically declining output, a deteriorating fiscal position and rising external financing needs. Ukraine’s  economic stabilisation and recovery is supported by financial assistance from the International Monetary Fund (IMF). The IMF Stand-By Arrangement (SBA) for Ukraine was approved in November 2008. Following a further deterioration of Ukraine’s fiscal position, a large part of the second tranche under the (1) Position of the European Parliament of 18 May 2010 (not yet published in the Official Journal) and decision of the Council of 29 June 2010. (10) IMFs SBA and the full amount of the third tranche were channelled to Ukraine’s State budget. Ukraine has requested Union macrofinancial assistance in view of the deteriorating economic situation and outlook. Given that a residual financing gap in 2009-2010 remains in Ukraine’s balance of payments, macrofinancial assistance is considered an appropriate response to Ukraine’s request to support economic stabilisation in conjunction with the current IMF programme. This macrofinancial assistance is also expected to contribute to alleviating the external financing needs of the State budget. Union macrofinancial assistance can only contribute to economic stabilisation if the main political forces in Ukraine ensure political stability and establish a broad consensus on a rigorous implementation of the necessary structural reforms. Union macrofinancial assistance should be provided to Ukraine in addition to the loan facility granted under Council Decision 2002/639/EC of 12 July 2002 providing supplementary macrofinancial assistance to Ukraine (2). The Union macrofinancial assistance should not merely supplement programmes and resources from the IMF and the World Bank, but should ensure the added value of Union involvement. The Commission should ensure that the Union macrofi- nancial assistance is legally and substantially in line with the measures taken within the different areas of external action and other relevant Union policies. () O] L 209, 6.8.2002, p. 22.