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Valdu Stanbrovski's is joining us now here in our Washington, DC studio on Bloomberg Television and Radio. He is the European Commission Executive Vice President for an Economy that Works for people. Sir, thank you so much for being here
with us today. If we could first begin, given the developments overnight in the Middle East, knowing that you primarily look at the economy, how concerned are you about possible escalation from here and the impact that that could have on energy prices, which we know has been highly problematic for the European economy in years past.
Well, first of all, we see that the world economy is proving to be resilient despite a difficult situation and a different geopolitical tensions and conflicts we are currently experiencing. And also the impact on energy prices so far has been quite limited. Obviously, we need to monitor closely all of those developments, but the assessment is that the risks to the economic outlook are now broadly balanced.
You've been in Washington here meeting with lawmakers about the big story that we've been talking about here for months. Mister Executive Vice President, and just today we saw an important procedural vote pass for funding for Ukraine, Israel and the Indo Pack region. You're obviously very concerned about funding for Ukraine. What did you tell lawmakers when you met with him.
Well, indeed, that was my main message in the meetings on the hill, and basically I was emphasizing that from the EU side, we are doing a lot to provide financial but also military and other kind of support to Ukraine. So far, we have provided support of around one hundred billion euros. We know how fifty billion euro Ukraine facility for the four years twenty twenty four to twenty twenty seven.
We're already disbursing from this facility. So it's important that also other international donors and first and foremost US come also with their contribution. And therefore I very much look forward for tomorrow's votes and hopefully this Ukraine support is being approved because of what we see that in the last months, actually the situation in Ukraine is deteriorating for
the lack, especially of military support. We see it both at the front line and we see it with the daily shellings of Ukrainian city's residential areas, critical infrastructure so this support is very much needed. I would say the collective West has all the necessary resources to stop Russian
not to allow this showing to take a place. And so hopefully this is a period of on decision and dittering is coming to the end and we will be able to come with a strong and firm response to to Russia and also to other autocrats around the world, because it's also not only about Ukraine, it's about our collective security.
Well, sir, as you outline there the amount that Europe already has contributed to the Ukrainian cause, it's worth pointing out that there is at least a faction of thought here in the United States that thinks Europe is not caring as much weight as it should be. One of them is the presumptive Republican nominee. Former President Donald Trump, posted on social media yesterday effectively to summarize his words, saying that Ukrainian survival is more important to Europe than
it is to the US. So why is Europe not giving more money to help Ukraine? Why can't it equalize or match the money? This is a quote put in by the United States of America. Is there more that Europe could be doing, sir. I wonder what your response would be to Donald Trump.
Well, first of all, acts has never been the strong side of Donald Trump, and it's also, unfortunately this time the case. So that's why I'm emphasizing so much. The financial aid EU has already provided, which is one hundred billion euros in all kinds of support, the Ukraine facility which is already in place of fifty billion euros. So the fact is that EU is the largest donor to Ukraine, and we are willing to continue this way because after all,
indeed it's a war on Ukrainian, on European continent. But of course it also requires solidarity from the broader democratic world, and with EU and US being strategic allies, US support is not only financially very important, but also as a signal of a West being united against this Russian aggression.
Crystnald Trump's view reflects the view of some Republican members in the House were voting against this package. I wonder when you met with lawmakers this week, what was your reception. Did you hear pushback, did you hear criticism or were you well received with the lawmakers you met?
Well, I would say you were definitely worrying or on this topic. But my point was really to make the case why it's important not only for Ukraine but for entire global security architecture because what we are seeing that also other autocrats are seeing if the West is not even able to contain Russia, so they're also having ideas, and the recent Iran attack against Israel is just another manifestation of this point of few it's important to stay
firm and determined. Another one, indeed, to make this point on the EU's contribution so far, to really show that EU is doing a lot. EU is actually doing more than the United States. We're happy to continue to do so, but everyone has to contribute well.
Of course, your conversations here in Washington have not just been limited to lawmakers. You are also here while the IMF World Bank meetings are underway, and I wonder from an economic lens, what you are hearing in the messaging and what message you are providing about the state of the European economy right now, Knowing that for now policy is still tight, there's questions around when it will ease and where the economy will be depending on when that
easing actually happens. How are you thinking about the outlook for Europe. As the IMF essentially said, there could be a soft landing, but there are risks here.
Well. Indeed, as I was saying before, actually is the global economy is proving resilient to BOSS current geopolitical tensions and also to the process of this inflation, which we know how to go through. So the expectations for a global gross is of three point two percent of BOSS this year and next. That's a IMFs world economic outlook. And as a reguards the EU, we are expecting zero point nine percent growth this year one point seven percent
growth next year. It's somewhat subdued growth right now, one could say. But at the same time, despite a war on Zeroean continent, despite as a need to tame high inflation, different disruptions we are facing, EU's economy is nevertheless growing.
I want to ask you about another foreign policy matter that you've been concerned with, and that's China supplying components to Russia and potentially evading sanctions. There's an economic element to this, there's obviously a geopolitical element to it. How big of a problem is this becoming?
Well, that's certainly a cause of concern and the two elements one is circumvention of sanctions, but also another is innocence backfilling of the sanctions, and we are engaged with China on both of those elements. So in a sense, what we are doing we how what we call a high priority Battlefield items list, meaning items which we are finding in Ukrainian battlefields in Russian military equipment. We are
tracing the origin of these different kind of components. It's a lethal weaponry, well yes, it's Russian military weaponry which is being found on Ukrainian battlefields. And because it's not only about weapons deliveries, there's also many dual use components if we talk about semiconductors, all kind of other components. So we're tracing it back were it actually origins. Because we must face there's also still quite a few of
those components of Western origin which are reaching Russia. So we also need to work with our own companies, both in the U and US, making sure that they are not engaged in those sanction circumventions. And in the U we also have a possibility actually to go after the companies which are knowingly in engaging in these kind of activities. We are putting also requirements on no result to Russia on exports of use items UH, and we're actually coordinating
this work quite a lot with US. We recently also put certain measures against Chinese and Hong Kong companies which are involved in sanctions circumvention by prohibiting EU companies to do any business with them. So there are things which we can do, and it's clear as we are now putting strict sanctions against Russia, EU, US other players, Russia
is looking at a ways to still convince them. So we need to stay alert, follow follow the patterns and to the extent possible closes, circumvention and possible Loopholese.
Faldest Tom Bravs guests with a view from the European Commission. We appreciate you making us part of your week here in Washington, and I hope the spring meetings of the IMF continue well for you. Thanks for talking with us on Bloomberg