Latest news with #ValdisDombrovskis
Reuters
5 days ago
- Business
- Reuters
Denmark gets Europe's Ukraine export guarantee scheme underway
LONDON, June 5 (Reuters) - Denmark has become the first country to formally join the European Union's new 300 million euro Ukraine export credit guarantee facility which supports European companies doing business with Ukrainian counterparts. The deal with Danish export credit agency EIFO is the first of more than a dozen similar agreements expected in the next few weeks between EU lending arm the EIB Group, the European Commission and national agencies. The overall facility is designed to back small and medium-sized firms which export to Ukraine, giving them protection if companies they deal with are impacted by the ongoing war with Russia. According to the EU's Eurostat agency, exports from the EU to Ukraine jumped to nearly 43 billion euros ($49.11 billion) last year. Up to 40 Danish companies are expected to benefit from the first agreement, while the likes of Germany, the Netherlands, Austria and some central and eastern European countries that export the most to Ukraine are expected to join soon. The European Commission's Valdis Dombrovskis said the facility represented "a significant step forward in further integrating the EU and Ukrainian economies, which is a crucial element of Ukraine's (EU) accession process." Kyiv's EU membership talks began last year, although a long and tough road lies ahead before it can join the bloc given the war with Russia. Ukraine's First Deputy Prime Minister Yulia Svyrydenko, who was in Washington on Wednesday to formally sign the high-profile minerals deal brokered by U.S. President Donald Trump, said the EU export support would help grow trade. Marjut Falkstedt, head of the European Investment Fund which provides the guarantees for the new export facility, said Denmark's sign-up was part of significant efforts made to get the facility up and running within a year. ($1 = 0.8757 euros)
Reuters
5 days ago
- Business
- Reuters
Eurozone accession to bring economic growth, Bulgaria PM says
BELGRADE, June 5 (Reuters) - Bulgaria's accession to the euro zone as of January next year will bring higher economic growth and higher living standards for the people, Prime Minister Rosen Zhelyazkov said on Thursday. On Wednesday, the European Commission approved Bulgaria's request to adopt the euro currency as of January next year. "The accession to the euro area will guarantee better growth, better purchasing power for the people, this means better convergence with the European living standards," Zhelyazkov said after meeting European Union Commissioner for the Economy Valdis Dombrovskis in Sofia. Bulgaria, a Balkan country bordering the Black Sea, joined the European Union in 2007 and it is set to become the 21st country to adopt the euro on January 1, 2026. Many fear that the accession will bring price hikes as it was the case with some other countries. Zhelyazkov said that he presented Dombrovskis the measures the government was taking to raise awareness and transparency and also to protect vulnerable groups and the elderly who fear the cost of living will rise with the introduction of the euro. He said there will be no tight deadline and no commission fees for those who want to convert their savings from the lev to the euro. "We will avoid the hastiness," Zhelyazkov said. The conversion of the local currency into euros, which will be done at a fixed exchange rate, will be supported by market players and overseen by regulators who will monitor market prices, he said. With an average monthly salary of 2,443 leva ($1,420.76), Bulgaria is the poorest country in the European Union.
United News of India
5 days ago
- Business
- United News of India
EU redirects 335 billion Euros of Covid relief money to defence projects
Brussels, June 5 (UNI) The European Union will redirect 335 billion euros from the Resilience and Recovery Facility (RRF), which was established for COVID relief, to defence projects, after receiving permission from the European Commission. According to Politico, the Commission, while declaring the amount to be eligible for defence expenditure, said that countries have until August 2026 to meet the certain agreed targets in order to receive the funds. On Wednesday, the body told countries that defence projects under common EU plans such as the satellite communication programmes were now eligible. The European Commission has called for lawmakers and governments to include in the European Defence Industry Programme (EDIP) regulations - a provision to make it possible for countries to use the recovery money - to make contributions to the defence fund. 'These alternatives could help the Recovery Facility to deliver additional important benefits from common European priorities, including in the areas of security and defense,' Economy Commissioner Valdis Dombrovskis told reporters, listing a large number of ways in which countries can redesign their plans. This move signals a significant shift in Europe's priorities since the pandemic, as the Russia-Ukraine war has both greatly impacted the European economy, as well as led to most of the EU stand with Ukraine and become increasingly hostile towards Russia, necessitating its need for greater defence spending to ensure it security, as well as the advancement of its weapons and arms industry. The idea behind the initiative is, that if a country diverts RRF-backed money to make contributions to the EU's target plans, then it can easily secure the required funds. When asked how defense investments can contribute to the RRF's green and digital goals, Dombrovskis said the current rules provide no specific treatment for defence-related measures. However, there is no clear consensus on the issue, as several countries which include Spain and Italy - the top beneficiaries of the funds - have asked for the postponement of the 2026 deadline. Additionally, the EU executive has also rejected the idea, meaning that a deal has to be reached between countries and then ratified by 20 parliaments, a process that would not only add considerable time to the initiative, but could outright stall it for a very long and uncertain time. UNI ANV PRS
Russia Today
6 days ago
- Business
- Russia Today
EU allows members to spend Covid cash on arming Kiev
The European Commission has allowed member states to redirect funds they have struggled to claim from the joint pandemic recovery pot for national development projects into bloc-wide security and defense initiatives – with significantly less oversight and fewer bureaucratic hurdles. The EU established the €650 billion ($740 billion) Recovery and Resilience Facility (RRF) in 2021 to support green energy and growth-oriented projects in the wake of the Covid-19 pandemic. However, to receive the funds, member states must prove their projects meet specific benchmarks. Roughly half of the fund remains unspent, with the deadline to 'provide evidence' looming in September 2026, according to the Commission's communique on Wednesday. In order to 'easily secure' their share of the remaining funds before time runs out, countries can now instead channel RRF-backed money into various security programs, such as the European Defence Industry Programme (EDIP) or satellite communications initiatives, Politico reported on Wednesday. 'These alternatives could help the Recovery Facility to deliver additional important benefits from common European priorities, including in the areas of security and defense,' EU Trade Commissioner Valdis Dombrovskis said. The Commission's memo claimed that 'specific projects would subsequently be selected and supported under EDIP, for the benefit of the Member State concerned, with implementation occurring over a longer time horizon.' Kiev is specifically listed as one of the main beneficiaries of EDIP, an initiative designed to subsidize the bloc's defense industry and enhance 'joint procurement with and for Ukraine,' according to an EC factsheet. Originally a €1.5 billion program, EDIP also aims to 'use windfall profits from frozen Russian assets to support Ukraine.' Brussels has spent almost €50 billion supporting Kiev through various EU programs since the escalation of the Ukraine conflict in 2022, in addition to billions contributed by individual member states, according to data from Germany's Kiel Institute. In March, European Commission President Ursula von der Leyen presented a plan to mobilize up to €800 billion ($875 billion) in debt and tax incentives for the military-industrial complex to 'rearm' the bloc against the perceived 'Russian threat.' Last month, the Council of the European Union endorsed a €150 billion ($170 billion) militarization plan, dubbed SAFE (Security Action for Europe), to raise funds for military purposes without direct approval from the European Parliament. Russia has repeatedly dismissed claims it plans to attack Western Europe as 'nonsense,' accusing the West of using scare tactics to justify diverting public funds toward military spending. Moscow has warned that foreign involvement—including arms deliveries—will obstruct peace efforts and ultimately fail to stop Russia from achieving its military objectives. The Kremlin has also criticized the EU's militarization drive, warning it risks triggering a broader conflict in Europe.
Yahoo
6 days ago
- Business
- Yahoo
Bulgaria to adopt the euro as ECB and European Commission give green light
Bulgaria will join the eurozone at the start of next year after clearing a series of economic hurdles, securing approval from the European Central Bank and the European Commission on Wednesday. "Today's report is a historic moment for Bulgaria, the euro area and the European Union," said EU economy chief Valdis Dombrovskis. ECB Executive Board Member Philip Lane noted: "I wish to congratulate Bulgaria on its tremendous dedication to making the adjustments needed." Since it joined the EU in 2007, Bulgaria has been seeking to switch its current currency, the lev, to the euro — although persistent inflation and political unrest have stalled progress. Last year, Bulgaria's accession to the eurozone was pushed back as the country failed to contain price pressures. These shot up during Europe's energy crisis following Russia's invasion of Ukraine, although annual CPI cooled to 3.5% in April, close to the EU's 3% target. The ECB and the Commission are now satisfied that economic criteria are fulfilled, notably relating to the public debt and deficit, inflation, interest rates and the exchange rate. Bulgaria's accession must now be approved by euro area finance ministers, with the final go-ahead expected on 8 July. Wednesday's breakthrough came after a wave of protests in Bulgaria against the adoption of the euro. Disinformation campaigns from home and abroad have made certain groups fearful of the change, notably pushing narratives that the euro will worsen poverty and stoke inflation. Bulgarian President Rumen Radev encouraged the anti-euro voices by proposing earlier this month a referendum on the currency. The proposal was rejected by the pro-European majority in parliament, which accused Radev of acting in favour of Moscow with his last-minute attempt to sabotage the euro adoption. Countries that have previously joined the eurozone have seen modest inflationary spikes. Even so, eurozone membership also offers a series of benefits as it can reduce borrowing costs, attract foreign investment, and facilitate cross-border trade. A position in the eurozone would also allow Bulgaria to have a greater say over the ECB's monetary policy trajectory. Croatia was the last country to join the eurozone in 2023.
