Bloomberg Audio Studios, podcasts, radio news. Let's get to the G seven. Oliver Krook is on location in Stressa in Isley. The EU Economy Commission of Paolo Gentiloni is alongside him. Oliver, good morning, that's right, manness, thank you very much.
And we heard Bruno Lameira talking about China and trade and sort of equal playing field. That's one of the big topics here. The other big topic will be how to get that financing for Ukraine's defense on stable footing for the years to come. A very place to be joined by Paolo Genteloni to talk about some of the main themes, monny things we've been discussing here at the G seven. So let's deal first with this the Russian
frozen assets. How to go about dealing with them? Are we close to a deal and a compromise on how to use those assets?
I would say we are working on this in a very good atmosphere from outside the U side. As you know, we a few days ago we finalized our proposal to dedicate these the windful profits from the trees and we will start to disburse to Ukraine. The first runch of this decision now in July. Then here we're working to try to maximize this and to find the best way to do this as fast as possible, again using the
windfall profits of the assets. I think having seen the discussion in the G seven in the last months, I think we are narrowing the differences and we are addressing mostly the details of these decisions. So I'm confident that in the coming weeks, so.
You think we'll have an agreement by the G seven leaders meeting, I think.
At least a political agreement before the leaders G seven is possible.
And I will also get your take on sort of how China, what sort of space that occupies in the conversations here. We heard Jenny Allen speaking about it yesterday, we heard Brunova Mayer today. Is the G seven unified on how to sort of address the question of Chinese over capacity?
But for sure the G seven needs to be unified. To have a unified approach in the EU view, we need to strengthen also our mutual exchange of information, our monitoring, because to have a common approach, we also need to share information on measure to be taken. And this is I think what everyone around the table of the G seven is agreeing. Of course, we are especially us, the European Union Economy, we are very interested in a balance. From one side, we have to face Chinese over capacity
and industrial expansion. From the other side, we don't want that this the risking compromise the advantages of global trades which are very important for the European UNICH. So how to find this balance is very important that I see unity in the G seven table and you think.
That you can get concretely because the problem is that the US can move a little bit faster, it throws up trade barriers and a lot of that overcapacity comes over to Europe. So how do you deal with that problem as the European Economy Commissioner.
But of course we are not in the condition to know if there is a redirection of Chinese.
For example, in the solar industry.
At the same time, the amount of electric vehicles that China is now exporting to US, it is not so huge to make us have a threat that these are diverted to Europe. So the problem is not the immediate impact of this decision, but it is the principle that to have the United approach we need to share information in the decision that we take.
And debt is the other sort of elephant in the room. It's something that obviously you're thinking about within the European Union. You're beginning sort of your infringement proceedings. How do you expect that to go within the EU? How do you get debt under control within Europe?
Well, we are not the one with the highest level of debt in the room, as you know, in the EU have fifty three percent of debt. But of course we have our fiscal rules that are back there, renewed, reformed, and they will address the high level of debt in some countries without i think, creating problems to growth. The positive note is that finally the European economy is moderately slowly again in the growth path. This is very.
Important, but growing a lot slower than, for example, the United States, which is really causing some issues, particularly on the rate path divergence. What do you think the risk is the European economy the divergence between the Fed and the ECB.
Well, I think that the path of inflation decline could be different. I'm sure that the ECB will decide their monetary policy independently from what the FED decide at least I don't see any risk of a different orientation from the CB in the short term. Then, as always, the ECB will decide on the basis of the data. But what the markets are expecting. I think it's realistic that in the coming months we will have a reorientation of monetary policy towards the declining of interest rates.
And a very quick question, there's been an election called in the United Kingdom, create different government, perhaps less hostile to the European You didn't mean closer ties between Europe and the UK.
Well, closer are what we expect. I have to say that we reached a very good agreement with the existing government, but if closer relation are possible with a new government, we are very happy.
So some optimism from Paolo Janceloni. He is the EO Commissioner on the Economy, joining us here at the G seven meeting of finance ministers in Stressa, Italy.