US Treasury Secretary Janet Yellen today called on US allies to increase financial support to Ukraine, saying the funds announced so far would not be enough for the country’s short-term needs as it battles the Russian invasion.
“Ukraine’s financing needs are significant,” she said, referring to comments she made at the Brussels Economic Forum, adding that the government was still functioning because of the resourcefulness and bravery of its officials.
“In the months before tax collection can be resumed at a regular rate, Ukraine needs budget funding to pay for soldiers, civil servants and retirees, as well as to run an economy that meets the basic needs of its citizens.” said Glenn. “In the short term it will need to focus on the repair and rehabilitation of critical social services and [άλλων] services “.
“While Ukraine will eventually need ‘massive support’ for reconstruction and recovery on the scale of the post-war Marshall Plan for Europe, the country will have to do it ‘one step at a time’.”
“What is clear is that the bilateral and multilateral support that has been announced so far will not be enough to meet the basic needs of Ukraine,” Yellen said.
With the war devastating up to half of Ukraine’s economy, the country needs about $ 5 billion a month in external funding in the near future to meet basic needs, according to Ukrainian President Volodymyr Zelensky and the International Monetary Fund.
The European Union is expected to propose a new loan package for Ukraine tomorrow, Wednesday, that will provide immediate liquidity along with commitments for long-term reconstruction. Although the short-term package is still being drafted, two officials familiar with the talks told Reuters they expect it to cover Ukraine’s financial needs for about two months.
Glenn called on the Allies to “join us in stepping up their financial support for Ukraine” as the US Senate moves one step closer to approving a $ 40 billion package of military and humanitarian aid to the war-torn country.
Glenn also said more work needed to be done to reach an agreement on corporate tax reform on the product processing line. This will include resolving disputes over the design of “Pillar 1” for the redistribution of certain tax rights of large, high-profit multinational corporations to “market economy countries” where their services and products are sold.
The finance minister failed Monday to persuade Polish officials to adopt the EU’s “Pillar 2” plan, which calls for a global minimum corporate tax rate of 15%, but has vowed to continue working on the issue.
“And for Pillar 2, the EU and the United States need to show leadership by enforcing the global minimum tax on our domestic laws without delay,” Yellen said.
The minister also said that the United States is committed to helping meet Europe’s energy needs as Europe seeks to break free from Russian oil and gas.
He called on Europe, the United States and other allies to join forces to reduce their dependence on China for critical materials, such as rare earths, and to diversify their supply chains.
Gelen said that as Russian energy is less available due to embargoes or supply disruptions, there is likely to be an uptrend in the use of coal and other fossil fuels in the short term. “And if that diminishes some of our immediate climate targets for a short period of time, let it also push us to redouble our efforts for clean and renewable energy,” he added.
SOURCE: AMPE
Source: Capital
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