Secretary of the Treasury Janet L. Yellen met with Prime Minister Alexander De Croo of Belgium to discuss key policy priorities during Belgium’s six-month presidency of the Council of the European Union.
A primary focus was support for Ukraine in light of Russia’s ongoing aggression. "Chief among them is our work to provide support to Ukraine, to counter Russia’s war of aggression, and to unlock the value of immobilized Russian sovereign assets to benefit Ukraine," Yellen stated.
During its presidency, EU member states have established a multi-year 50-billion-euro Ukraine Facility aimed at meeting Ukraine's budget financing needs. Additionally, they have created a windfall stream for Ukraine from income earned on Russian sovereign assets immobilized in European central securities depositories. "Belgium has already committed its share of earnings from taxes on such income for Ukraine’s benefit this year," Yellen noted.
Yellen commended these efforts, particularly the windfall measure, and mentioned ongoing discussions about more ambitious options to expedite financial aid to Ukraine. "Last week, G7 Finance Ministers met in Italy and made significant progress in discussing these proposals, and we will continue intensive discussions ahead of the G7 Leaders’ Summit," she said.
The meeting also covered coordination with Europe and other partners regarding Chinese industrial overcapacity. Yellen highlighted concerns over China’s macroeconomic imbalances and government support for its manufacturing sector leading to overcapacity that could impact global markets. "China’s macroeconomic imbalances...can lead to overcapacity that can significantly exceed both domestic and global demand," she remarked.
Yellen concluded by expressing appreciation for the discussion with Prime Minister De Croo and anticipation for continued collaboration.
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