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00:00You were working flat out for three days but this communique for you is important. What was going to be in it particularly when it comes to Ukraine. I know you said they need cash on the short term. Yes of course we have to guarantee the capability of Ukraine to descend defends themselves. So we are here and we are fund raising to secure the liquidity of Ukraine government. And it appears that there will be more than 18 billion we can raise to support the queen in this crucial historical moment. And I think it's a very good signal that the G7 nations are standing shoulder to shoulder to queen because they are not only defending themselves they are defending our values. And of course Germany has said that. You yourself you've spoken that this country is going to need a Marshall Plan a huge reconstruction. But just on the short term you're putting for one billion euros. You've said you're going to commit with that. Now you talk about an communicated says a team who is funding this gap between the 1 and the 18 is a G7. Is it also European E.U. money which puts a combination here. Yes it's G7. And for example the seven point five billion dollars the U.S. Congress had decided. And in addition the EU programs and this sums up to more than 18 billion. And if we use the capabilities of the IMF I think for the foreseeable future hopefully next month there shouldn't be any concern of the Ukraine government to finance their states needs. So what you say is that for the next three months presumably Ukraine is not going to have any issues at paying for this basic needs. You don't see any funding problems for the country for the foreseeable future the next month. I think the problems are solved and we are standing ready to observe the situation. But at the moment I think the we made very important progress on guaranteeing the liquidity of a queen. And of course you know this is one issue. But in this G7 being the German finance minister is always difficult. You have to deal with a big industrial country that of course now concerns about inflation concerns about my drug policy changing. When you look at the whole picture what is the issue. I think I have an idea of what concerns you the most. But what is the issue that your focus more is inflation. It is inflation in the short term. It is inflation in the long term. We need sustainable growth for all of our economies. They have to tame growth in a sustainable inclusive way. It's a long term project. They have to finance transitions to a greener economy. Digitalization. We have this special challenges for mankind both in the short term. We have to deal this rising inflation rates. And this is I think see its key for our economies that we reach against a level of 2 percent inflation rates. Now we have to take tough decisions and do one hence the central bankers. And on the other hand the governments this sound fiscal policy measures. I'm in favor of a neutral fiscal stance. We have to maintain a stable macroeconomic environment. And I suggest to focus on the supply side of economic policies which means not to pay subsidies and subsidies and subsidies but improving these sucrose leaves see surrounding the ecosystem for businesses invest in education and research and development to put activity progress and not effects on the price level which is already very high. So kind of your message is that inflation as it stands for you as finance minister of Germany is not acceptable. Germany. It is for all these member states or G7 countries a key priority to fight inflation this tough decisions. But in first instance its responsibility for the central banks. And then we have our approach as governments. And you say rather than more money it's more about smart money and how you use it. But I wonder and Mr. Lindner it is very difficult to manage this because if you hike perhaps too much and I know it's for a central bank to decide the risk is that you take your. To a recession. We don't do it. Inflation keeps jumping. And of course the everyday person on the streets understandably gets angry. So do you trust. There's going to be a balancing act to avoid a recession in Europe but also show that you have a lesion under control and you can get a hold of this. It is our responsibility to make decisions that bring inflation down as fast as possible to reduce pressure on prices. And on the other hand. Foster growth and productivity in the European Union and in in the global global level. It's not only an issue for four G7 or European Union it's a global issue. So our effects on low income countries to be a witness. And we have to be aware of. So central banks have to play their role. And I think they are aware of their responsibilities. They are very very very important and very very very independent. At the same time. So I don't have any advice for them. But my impression from this G7 meeting in Bonn and couldn't explain to is that they are aware of this serious serious situation. And they seem to be. And they have to be seen to be. And they have to be. And on the side of the governments we know our responsibilities too. And we will make tough decisions. Tough decisions also mean that we can't pay subsidies to reduce price effects on the world market for full time but can support the most vulnerable private households. We can can improve on the supply side of the economy to foster growth but the effects far for governments are limited. To fight inflation. And so just very briefly of course where the G7 at one point where remember this was a G8 and of course Russia got kicked out. Now we're talking about the war in Ukraine as the German finance minister. What would be your message to Russia. We are isolating Russia completely politically economically and financially. Putin has to stop this war. There is no chance to return to business as usual. And there will be severe long term consequences for Russia and its economy. For example Germany is working hard to be completely independent from Russian imports when it comes to coal oil and commodities. All are natural gas for example.

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Germany’s Lindner on G-7 Ukraine Aid, Inflation, Russia

German Finance Minister Christian Lindner discusses short-term financial aid for Ukraine from Group of Seven industrialized nations, the need to bring inflation back down to 2%, and why there is no chance of a return to business as usual with Russia. He speaks with Maria Tadeo on the sidelines of a meeting of G-7 finance ministers and central bank governors near Bonn, Germany, on “Bloomberg Markets Europe.” (Source: Bloomberg)

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