Vice-Minister of Finance M. Liutvinskas: "We must not be afraid to make decisions regarding the use of frozen russian assets for the benefits of Ukraine"
On 8-10 November, Vice-Minister of Finance Mindaugas Liutvinskas will participate in the meetings of the Eurogroup (EG) and the European Union (EU) Finance Ministers (ECOFIN) in Brussels, where the greatest attention will be paid to the EU's financial support to Ukraine, the EU's economic prospects and the review of common fiscal rules. An agreement on next year's EU budget is also to be reached.
At the ECOFIN meeting, the economic and financial impact of russia's war against Ukraine and the mobilization of financial support for Ukraine will be discussed, including ways to use frozen russian assets located in EU territory for this purpose.
"When discussing support for Ukraine, we cannot ignore the elephant in the room – russian assets frozen by sanctions. We must not be afraid to make legally justified decisions in the near future, which would allow us to use the funds generated on the basis of the frozen assets of the aggressor, kept in the financial institutions of the EU, for the benefit of Ukraine. According to a preliminary assessment, such a decision would allow for the mobilization of about EUR 3 billion for Ukraine's needs per year. This would be a significant first step, which should be followed by further decisions coordinated with international partners regarding the transfer of frozen russian assets to Ukraine, thus compensating at least part of the damage caused to the country," said M. Liutvinskas.
The ministers will also continue discussions on the revision of EU fiscal rules. Although there is a broad agreement among the Member States that it is necessary to ensure the sustainability of public finances in the medium and long term, providing enough space for investments important for economic growth, the opinions of the Member States still differ regarding the specific requirements for debt burden and deficit reduction. In the discussions, Lithuania consistently strives for the changed security situation to be assessed and certain flexibility for investments provided in increasing defence capabilities when revising the fiscal rules.
At the ECOFIN, the implementation of the Recovery and Resilience Facility (RRF) will also be discussed and the modification of the Lithuanian RRF plan will be endorsed. On 23 October, the EC positively assessed the project of adding new investments to the plan "New Generation Lithuania". The volume of the updated plan will increase to EUR 3.8 billion, of which about EUR 1.5 billion will be made of RRF loan investments, which will be channelled to the green transition and strengthening the competitiveness of the country's economy.
The EG meeting will host a ministerial discussion on the macro-economic prospects of the euro area, the coordination of fiscal policy next year, and the interaction of fiscal and monetary policy. The ministers will also discuss the situation in the Banking Union and further steps in deepening the EU capital markets union.
The ECOFIN meeting taking place on 10 November will aim for an agreement on next year's EU budget. On 7 June, the EC presented the draft EU budget for 2024 and, when the positions of the Council of the EU and the European Parliament did not agree, the 21-day conciliation procedure, which will end on 13 November, started.
Last updated: 14-11-2023
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