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ECB will use all tools to bring inflation down to 2% – Executive Digest

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The European Central Bank (ECB) remains “strongly focused” on price stability in the eurozone and will use “all tools in the toolbox” to achieve a medium-term inflation target of 2%, Christine Lagarde said today.

In Latvia, ECB President Christine Lagarde warned that “a moderate recession by the end of the year and by 2023 will not be enough to contain inflation” and said that any fiscal stimulus from governments must be temporary, targeted and tailored to individual vulnerable sectors. economy.

Such measures should target the most vulnerable and include incentives to save energy as well as direct spending to reduce energy consumption, Lagarde said.

Lagarde also said Wednesday’s 0.75 percentage point hike in interest rates by the US Federal Reserve (Fed) should not be seen as a sign that the ECB will act in a similar manner.

“The US and the eurozone are not similar, there are different sources of inflation,” Lagarde said, explaining that the rise in prices in the US was driven by strong demand in the economy and an adjusted labor market.

In the US, there were 1.7 vacancies per unemployed person, while in Europe there were more job seekers than vacancies.

In the panel discussion, Lagarde was joined by EU Executive Vice President and Commissioner for Trade Valdis Dombrovskis, who stressed the need for a coherent policy mix in the European Union (EU), where “monetary and fiscal policy should not depend on cross-cutting objectives.” “.

Dombrovskis acknowledged that “the release clause (allowing the budget constraint to be broken) remains active” given the great uncertainty countries are facing, but the fiscal policy stance is changing as the European Commission discourages fiscal stimulus, especially in high-income countries. debt level. .

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The EC Vice-President said that the EU continues to move towards closer coordination of fiscal policy in relation to public spending, using the so-called European biennial framework for comprehensive oversight and coordination of economic and employment policies across the EU.

Both Lagarde and Dombrovskis agreed that climate change is a major driver of inflation and that EU economies will have to deal with temporary energy price spikes as part of the transition to sustainable, renewable and “greener” energy sources.

The ECB President stressed that the EU countries should accelerate the planned energy transition towards a combination of climate-friendly alternative sources, renewable energy sources, including nuclear energy, which is being discussed in the EU.

Lagarde said this will affect trade as well as supply chains, prices will rise as part of the transition, and reliance on reliable partners will also affect inflation.

He cited the impact of climate change on a major economy, Germany, noting that the low water level in the Rhine River resulted in barges carrying goods at half their capacity, which affected the country’s trade and gross domestic product (GDP).

Dombrovskis said the EU’s “policy flagship” is the European Green Deal, and that the EU’s response to the war against Ukraine has been to speed it up, as well as to phase out fossil fuels altogether.

Regarding Ukraine, the commissioner said that the EU institutions are working on a plan for the reconstruction of the country, which assumes that the country has suffered damage in the amount of about 400 billion euros. Dombrovskis said the plan would follow the “perpetrator pays” principle and use confiscated Russian assets to fund reconstruction and restoration.

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Dombrovskis and Lagarde spoke at a conference dedicated to the 100th anniversary of the central bank of Latvia, Latvijas banka, organized by the governor of the central bank, Mārtiņš Kazaks.

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Vladimir Putin has delayed the invasion of Ukraine at least three times.

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Putin has repeatedly consulted with Russian Chief of the General Staff Valery Gerasimov and Defense Minister Sergei Shoigu about the invasion, Europa Press told Ukraine’s chief intelligence director Vadim Skibitsky.

According to Skibitsky, it was the Russian Federal Security Service (FSB), which is responsible for counterintelligence and espionage work, that put pressure on Gerasimov and other military agencies to agree to launch an offensive. .

However, according to the Ukrainian intelligence services, the FSB considered that by the end of February sufficient preparations had already been made to guarantee the success of the Russian Armed Forces in a lightning invasion.

However, according to Kyiv, the Russian General Staff provided the Russian troops with supplies and ammunition for only three days, hoping that the offensive would be swift and immediately successful.

The head of Ukrainian intelligence also emphasized the cooperation of local residents, who always provided the Ukrainian authorities with up-to-date information about the Russian army, such as the number of soldiers or the exact location of troops.

The military offensive launched on February 24 by Russia in Ukraine caused at least 6.5 million internally displaced persons and more than 7.8 million refugees to European countries, which is why the UN classifies this migration crisis as the worst in Europe since World War II (1939-1945). gg.). ).

At the moment, 17.7 million Ukrainians are in need of humanitarian assistance, and 9.3 million are in need of food aid and housing.

The UN has presented as confirmed 6,755 civilian deaths and 10,607 wounded since the beginning of the war, stressing that these figures are much lower than the real ones.

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Life sentence for former Swedish official for spying for Russia

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A Stockholm court on Monday sentenced a former Swedish intelligence officer to life in prison for spying for Russia, and his brother to at least 12 years in prison. In what is considered one of the most serious cases in Swedish counterintelligence history, much of the trial took place behind closed doors in the name of national security.

According to the prosecution, it was Russian military intelligence, the GRU, who took advantage of the information provided by the two brothers between 2011 and their arrest at the end of 2021.

Peyman Kia, 42, has held many senior positions in the Swedish security apparatus, including the army and his country’s intelligence services (Säpo). His younger brother, Payam, 35, is accused of “participating in the planning” of the plot and of “managing contacts with Russia and the GRU, including passing on information and receiving financial rewards.”

Both men deny the charges, and their lawyers have demanded an acquittal on charges of “aggravated espionage,” according to the Swedish news agency TT.

The trial coincides with another case of alleged Russian espionage, with the arrest of the Russian-born couple in late November in a suburb of Stockholm by a police team arriving at dawn in a Blackhawk helicopter.

Research website Bellingcat identified them as Sergei Skvortsov and Elena Kulkova. The couple allegedly acted as sleeper agents for Moscow, having moved to Sweden in the late 1990s.

According to Swedish press reports, the couple ran companies specializing in the import and export of electronic components and industrial technology.

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The man was again detained at the end of November for “illegal intelligence activities.” His partner, suspected of being an accomplice, has been released but remains under investigation.

According to Swedish authorities, the arrests are not related to the trial of the Kia brothers.

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Ukraine admitted that Russia may announce a general mobilization

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“They can strengthen their positions. We understand that this can happen. At the same time, we do not rule out that they will announce a general mobilization,” Danilov said in an interview with the Ukrainska Pravda online publication.

Danilov believed that this mobilization would also be convened “to exterminate as many as possible” of Russian citizens, so that “they would no longer have any problems on their territory.”

In this sense, Danilov also reminded that Russia has not given up on securing control over Kyiv or the idea of ​​the complete “destruction” of Ukraine. “We have to be ready for anything,” he said.

“I want everyone to understand that [os russos] they have not given up on the idea of ​​destroying our nation. If they don’t have Kyiv in their hands, they won’t have anything in their hands, we must understand this,” continued Danilov, who also did not rule out that a new Russian offensive would come from “Belarus and other territories.” .

As such, Danilov praised the decision of many of its residents who chose to stay in the Ukrainian capital when the war broke out in order to defend the city.

“They expected that there would be panic, that people would run, that there would be nothing to protect Kyiv,” he added, referring to President Volodymyr Zelensky.

The military offensive launched on February 24 by Russia in Ukraine caused at least 6.5 million internally displaced persons and more than 7.8 million refugees to European countries, which is why the UN classifies this migration crisis as the worst in Europe since World War II (1939-1945). gg.). ).

See also  Spain returns to school, but pandemic exposes inequality

At the moment, 17.7 million Ukrainians are in need of humanitarian assistance, and 9.3 million are in need of food aid and housing.

The Russian invasion, justified by Russian President Vladimir Putin on the need to “denazify” and demilitarize Ukraine for Russia’s security, was condemned by the international community at large, which responded by sending weapons to Ukraine and imposing political and economic sanctions on Russia.

The UN has presented as confirmed 6,755 civilian deaths and 10,607 wounded since the beginning of the war, stressing that these figures are much lower than the real ones.

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