Kiev - Ukraine's parliament on Wednesday authorised billions
of dollars of funding critically needed for the Euro 2012 football
championship.
Ukraine's legislature, the Verhovna Rada, approved some 1.3
billion dollars in state funding for Euro 2012 preparations, while
for the first time also making it legal for the central government to
draw money directly from National Bank of Ukraine reserves (NBU), if
the government is otherwise unable to finance the work.
Ukraine's government since October has been battling a tide of red
ink in the national budget brought on by the international financial
crisis, and falling tax receipts.
Repairs, particularly to bring Ukrainian roads and airports up to
standards specified by the UEFA to get ready for Euro 2012, have been
stalled for months due lack of government cash.
Ukraine's state bank the NBU despite the poor economic climate has
some 25 billion dollars in reserves, but until passage of the
Wednesday bill had been barred by law from transfering funds from its
reserves to support any particular government programme.
The legislation approved by parliament allows the NBU to cover all
cash shortfalls in the government's Euro 2012 preparation plan, with
payments made quarterly.
A strong 373 member majority out of Ukraine's 450-member
legislature voted in favour of the bill, as well as legalising direct
NBU support to Euro 2012 preparation effort.
The money will ,according to the government Euro 2012 preparation
plan, go primarily towards overhauls to the country's transportation
infrastructure. Airports, roads, the railroad system, and public
transport in game cities are all slated for repairs.
Only 10 per cent of a planned 333 million dollars for 2009
government-financed transportation projects had been paid out by mid-
June, the Interfax news agency reported.
In Ukraine, repairs to football stadia are the responsibility of
privately-owned professional clubs in host cities, rather than of the
government.
Progress on the overhaul of Ukrainian stadia is, according to
observers, relatively well advanced, with work moving at a good pace
in the host cities Kiev, Donetsk, and Kharkiv; and at slower pace in
Ukraine's fourth designated game venue Lviv.
Ukraine's hospitality industry is thought to be the weakest part
of the former Soviet republic's hosting package, with the capital
Kiev containing several dozen mostly expensive hotels, and other host
cities practically unable to handle more than a few hundred guests a
time.
Ukraine's government has suggested the hotel shortage may be
remedied with cruise ships tied up on rivers in the game venue
cities, but UEFA officials have said Euro 2012 fans should have
lodging meeting conventional international standards.
Poland and Ukraine in April 2007 were named co-hosts of the Euro
2012 tournament.
Lack of funding has dogged the Ukrainian efforts to improve sports
and tourist infrastructure. UEFA officials in May warned Ukraine
could lose its share of the event and have games scheduled in Ukraine
moved to Poland, if the Ukrainian preparation effort were not
improved.
USA
Your Talkback on this Story