Yuriko Backes, Luxembourg's Minister of Finance; Credit: SIP / Yves Kortum

Luxembourg's Minister of Finance Yuriko Backes participated in the Eurogroup and Ecofin Council meetings held in the Grand Duchy on Monday 4 and Tuesday 5 April 2022.

These discussions were dominated by the Russia-Ukraine war and its economic repercussions for Europe.

At the Eurogroup on Monday, the nineteen finance ministers first looked at the economic and social repercussions that the war in Ukraine will have for the eurozone. These exchanges continued the following day among the 27 European Union (EU) Member States within the framework of the Ecofin Council. Ukrainian Finance Minister Sergii Marchenko spoke on this occasion with his EU counterparts via videoconference.

Luxembourg's Finance Minister Yuriko Backes commented: "There are no words strong enough to condemn the atrocities committed by the Russian army in Bucha. A strong and determined reaction from the EU is needed". She added: "Member States together with European institutions must manage this crisis in a coordinated manner". A minute of silence was observed in honour of the victims of Russian aggression.

Another topic on the Eurogroup's agenda was the digital euro project. The ministers discussed aspects related to the protection of privacy and the requirements in terms of the fight against money laundering and the financing of terrorism. Euro zone finance ministers also exchanged views on developments in the housing market in Europe.

Despite the support of most Members States (including Luxembourg), Ecofin failed to reach an agreement on the proposal for a directive aimed at transposing into EU law the agreement reached at OECD level that large multinational companies must pay an effective minimum tax of 15%.

On the sidelines of these meetings, Luxembourg's Finance Minister had bilateral meetings with the Vice-President of the European Commission, Margrethe Vestager, and the President of the Eurogroup and Minister of Finance of Ireland, Paschal Donohoe, as well as her Lithuanian, Portuguese and Czech counterparts.