Vice-Minister of Finance M. Liutvinskas: “The ongoing decision on the transfer of profits from frozen russian assets to Ukraine is a good first step”
On 13-14 May, Vice-Minister of Finance Mindaugas Liutvinskas will attend the meetings of the Eurogroup and the Council of Finance Ministers of the European Union (ECOFIN) in Brussels. The meetings will focus on financial support to Ukraine, the EU’s economic prospects and the development of capital markets.
At the ECOFIN meeting, there will be a discussion on the economic and financial impact of the russian war against Ukraine. Ukraine’s reform and investment plan is expected to be approved, which will serve as a basis for the country’s closer accession to the EU and for further payments under Ukraine’s EUR 50 billion Facility.
To date, the Facility has disbursed EUR 6 billion of pre-financing to Ukraine. Once approved, a further advance payment of EUR 1.9 billion will be paid. In total, around EUR 16 billion are expected to be disbursed to Ukraine this year.
“The approval of Ukraine’s Plan is an important step to ensure a predictable continuation of financial assistance to the country. The implementation of the Plan will help Ukraine reform, strengthen its economy and move closer to EU membership. We welcome the freshly reached political consensus on the use of profits from frozen russian assets for Ukraine. We see this as a good first step, which – once the procedures have been finalised – will allow to provide up to EUR 3 billion a year to Ukraine. However, this is not enough, we must continue to look for solutions together with international partners on how to use the frozen assets for the benefit of Ukraine," Liutvinskas stated.
At the ECOFIN meeting, ministers will seek a political consensus on the VAT in the digital age package. This proposal aims to modernize the EU VAT system, making it more efficient for business and more resistant to fraud, by using and promoting digitalisation. A political consensus will also be sought on the FASTER directive, which provides for a faster and more efficient application of refund benefits for the overpayment of withholding taxes.
The meeting will adopt conclusions on fiscal sustainability challenges arising from an ageing population and conclusions on financial literacy. The state of play on the implementation of the Recovery and Resilience Facility (RRF) and the adoption of Council decisions on the modification of the RRF plans for Italy and Spain will be presented.
During the EG, ministers will discuss the economic situation and prospects for the euro area and the next steps towards the development of the EU’s single EU capital market. There will also be a discussion on the competitiveness of the euro area and the situation in the euro area banking sector.
Last updated: 16-05-2024
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