R. Šadžius: “We must strengthen EU defence capabilities and ensure uninterrupted support to Ukraine”
Minister of Finance Rimantas Šadžius attends the meetings of the Eurogroup (EG) and the Council of Economic and Financial Affairs Ministers of the European Union (EU) (ECOFIN) held on 10-11 March in Brussels. The meetings will mainly focus on the discussion of the geopolitical situation, strengthening of EU defence capabilities and support to Ukraine. In early March the Commission presented proposals to increase EU defence funding, on the basis of which EUR 800 billion in additional funding could be generated at EU level over 4 years.
“In a dynamic increasingly challenging geopolitical environment, strengthening the EU defence capabilities becomes the key priority. We need to take urgent steps to substantially increase funding for EU security and defence. The proposals put forward by the Commission this week on how to do this are certainly worthy of attention and we support them. However, it is also important to bear in mind the sustainability of public finance. Whatever favourable borrowing conditions, the burden of debt has boundaries. Therefore, in addition to loan-based measures, we need to explore possibilities to provide a certain amount of funding in the form of non-repayable funding, as has been done in the fight against the COVID-19 pandemic”, R. Šadžius said.
At the ECOFIN meeting, the ministers will exchange their views on the economic and financial impact of the Russian aggression against Ukraine. The Commission will present the progress on the implementation of the main instruments of support to Ukraine, i.e. the G7 loan based on profits from Russian frozen assets and the Ukraine Facility supported by the EU budget. The ministers will also discuss the challenges related to the implementation of sanctions and the role of customs, the measures to strengthen the implementation of the EU sanctions against Russia and Belarus, to reduce the possibilities of circumvention of sanctions and to ensure their uniform application in all the Member States.
“A stable and sovereign Ukraine is an integral part of the European Security Strategy. Therefore, we must be ready to take the necessary decisions to ensure uninterrupted financial and military support to Ukraine. At the same time, we need to increase economic pressure on Russia by strengthening the implementation of sanctions and broadening them”, R. Šadžius stressed.
The ECOFIN will also have political debates on competitiveness, simplification and improvement of the business environment in Europe. The Commission published the Omnibus package of proposals in February this year, which includes the amendments to the Corporate Sustainability Reporting Directive (CSRD), the Corporate Sustainability Due Diligence Directive (CSDDD), the Carbon Border Adjustment Mechanism Regulation (CBAMR) and the InvestEu Regulation aimed to simplify the EU rules, to increase competitiveness and to free up additional investment capacity. The Commission's target is to reduce the administrative burden by at least 25% by the end of the mandate and by at least 35% for small and medium-sized enterprises (SMEs).
At the EG meeting, the ministers will discuss macroeconomic trends in the euro area and discuss the coordination of the fiscal policy in the euro area in 2025. In the extended format of the Eurogroup, the ministers will discuss the developments in crypto-assets-related activities and markets and their impact on the euro area and European economy. The preparation for the Euro Summit to be held in March will be discussed and the outcome of the meeting of G7 finance ministers and central bank governors hold in February will be also presented at the meeting.
Last updated: 18-03-2025
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