The European Commission’s regulation increasing tariffs on U.S. exports into the EU worth $4 billion will be published in the Official Journal of the EU.
The countermeasures have been agreed by EU Member States since the U.S. has not yet provided the basis for a negotiated settlement, which would include an immediate removal of U.S. tariffs on EU exports in the Airbus WTO case. The World Trade Organization (WTO) formally authorised the EU on 26 October to take such countermeasures against illegal U.S. subsidies to aircraft maker Boeing. The measures will take effect as from tomorrow. The European Commission stands ready to work with the U.S. to settle this dispute and also to agree on long-term disciplines on aircraft subsidies.
Executive Vice-President for an Economy that Works for People and Commissioner for Trade Valdis Dombrovskis said: “We have made clear all along that we want to settle this long-running issue. Regrettably, due to lack of progress with the U.S., we had no other choice but to impose these countermeasures. The EU is consequently exercising its legal rights under the WTO’s recent decision. We call on the U.S. to agree to both sides dropping existing countermeasures with immediate effect, so we can quickly put this behind us. Removing these tariffs is a win-win for both sides, especially with the pandemic wreaking havoc on our economies. We now have an opportunity to reboot our transatlantic cooperation and work together towards our shared goals.”
The countermeasures bring the EU equal footing with the U.S., with sizeable tariffs on each side based on two WTO decisions related to aircraft subsidies. They include additional tariffs of 15% on aircraft as well as additional tariffs of 25% on a range of agricultural and industrial products imported from the U.S., thereby strictly mirroring the countermeasures imposed by the United States in the context of the WTO case on subsidies to Airbus.
Background
In March 2019, the Appellate Body, the highest WTO instance, confirmed that the U.S. had not taken appropriate action to comply with WTO rules on subsidies, despite the previous rulings. Instead, it continued its illegal support of its aircraft manufacturer Boeing to the detriment of Airbus, the European aerospace industry and its many workers. In its ruling, the Appellate Body:

confirmed the Washington State tax programme continues to be a central part of the U.S. unlawful subsidisation of Boeing;
found that a number of ongoing instruments, including certain NASA and U.S. Department of Defence procurement contracts constitute subsidies that may cause economic harm to Airbus, and;
confirmed that Boeing continues to benefit from an illegal U.S. tax concession that supports exports (the Foreign Sales Corporation and Extraterritorial Income Exclusion).

Today’s decision confirming the EU right to retaliate stems directly from that previous decision.
In a parallel case on Airbus, the WTO allowed the United States in October 2019 to take countermeasures against European exports worth up to $7.5 billion. This award was based on an Appellate Body decision of 2018 that had found that the EU and its Member States had not fully complied with the previous WTO rulings with regard to Repayable Launch Investment for the A350 and A380 programmes. The U.S. imposed these additional tariffs on 18 October 2019. The EU Member States concerned have taken in the meantime all necessary steps to ensure full compliance.
Compliments of the European Commission.
The post Boeing WTO case: EU puts in place countermeasures against U.S. exports first appeared on European American Chamber of Commerce New York [EACCNY] | Your Partner for Transatlantic Business Resources.

Leaders from across the world offered their congratulations on Saturday, November 7 to U.S. President-elect Joseph R. Biden, Jr. and Vice President-elect Kamala Harris, following their projected win in the 2020 presidential election.
As partners with shared history and values, EU leaders were among the first to send well wishes to Biden and Harris. European Commission President Ursula von der Leyen said she looked forward to working with President-elect Biden, adding, “The European Union and the United States are friends and allies, our citizens share the deepest of links.” Read her full statement here, and watch her video message here.
High Representative Josep Borrell Fontelles took note of the record turnout in the election, which “expressed [the] will of the American people for change.”
Leaders of all 27 EU member states offered their own messages of congratulations, friendship, and hope for the new administration, which is expected to be sworn in on January 20, 2021.
The post EU Leaders Congratulate President-Elect Biden and Vice President-Elect Harris first appeared on European American Chamber of Commerce New York [EACCNY] | Your Partner for Transatlantic Business Resources.

It has been said that the best preparation for tomorrow is doing your best for today. When the President of the French Republic confirmed France’s participation in the Paris Collaborative on Green Budgeting in December 2017, he could hardly have known that, less than three years later, green budgeting would become a central tool for developing France’s “green recovery” from a global pandemic. At the meeting of the Paris Collaborative on Green Budgeting earlier this month, French Treasury officials showcased to delegates from across the OECD how the government had used this tool to identify environment-compatible spending that helped France meet its goal of dedicating EUR 30 billion of its COVID-19 recovery plan to a green transition.
With the introduction of green budgeting, France can now identify how budget measures affect key environmental objectives. This autumn, the country tabled its first “green budget” alongside the Finance Bill for 2021. This is the world’s first budget to document both the positive and negative impact of measures on key aspects of the environment.
France is not the only country to use green budgeting to support a green response to the COVID-19 pandemic. Preliminary results of an OECD survey show that over half of OECD countries plan to use green budgeting tools to integrate green perspectives in recovery packages. In addition to green budget tagging used by France, countries will carry out environmental and climate impact assessments of individual measures or attach green conditionality to support measures. Some countries, such as Colombia, Denmark, Latvia, Portugal and Spain, plan to go further and propose an assessment of how the recovery package as a whole affects environmental and climate objectives.
In good humour, the Irish Chair of the Paris Collaborative on Green Budgeting recently suggested that France should slow down its green budgeting efforts to let other countries catch up. However, Ireland is making impressive progress of its own. In addition to introducing its own system of green budget tagging, the country has just announced an increase in carbon prices as part of its budget for 2021. Ireland recognises the central role that tax policy can play as part of an overall package of budget measures to support a green recovery from the pandemic.
Robust tax policy tools, in particular carbon pricing, can work ‘hand-in-hand’ with green stimulus to promote clean investment and spending decisions, and support a successful, long-term recovery, according to new OECD findings. Carbon pricing reinforces green stimulus measures and helps align traditional stimulus with climate objectives, even when it is not explicitly targeted towards decarbonisation. Given competing social and economic goals, it is not realistic for all public money to go directly to green projects. France’s green budgeting analysis, for example, showed that a majority of its annual expenditure is “grey”, i.e., neither environmentally harmful nor environmentally positive. Carbon taxes or emission permit trading encourage cleaner investment and consumption choices for all public and private spending, limiting CO2 emissions and local pollution. Households and businesses will embrace low carbon on their own if they know that carbon prices will rise over time, without the need for the government to identify the most promising technologies and spending choices in advance. This reduces the risk of stranded assets and stranded jobs in the future.
Reforming carbon taxes and emissions trading will be necessary to drive a green recovery. At present, 70% of energy-related CO2 emissions from advanced and emerging economies are entirely untaxed and some of the most polluting fuels remain among the least taxed. Emissions trading systems result in significant prices for electricity and industry in some countries, but even combined with taxes, the overall carbon price signals are not in line with decarbonisation targets.
The opportunity exists for tax and spending policies to be implemented in tandem, which could make green recovery measures more acceptable from a political economy perspective. The 2021 Irish budget, presented on 13 October 2020, is a case in point. Not only did the government announce that it would spend EUR 8.5 billion on supporting people and businesses affected by COVID-19, but it will also increase the carbon tax by EUR 7.50 a tonne, from EUR 26 to EUR 33.50, while raising rates for cars taxed on CO2 emissions and extending a registration tax relief for battery-powered electric vehicles. To support the purchasing power of vulnerable groups, the government also increased a means-tested income transfer to support households during winter months. Additional spending measures to ensure a Just Transition include investments in energy efficiency, social protection and pilot environmental programmes in agriculture.
Expenditure policy can prepare the ground for a green tax shift later. For example, spending measures that support energy efficiency programmes or subsidies for R&D that unlock clean technologies can help reduce carbon emissions and make it easier in the longer term to introduce carbon pricing. Tax policy tools, such as carbon pricing, have the capacity to improve environmental outcomes, while also raising government revenues that can be used to manage the trade-offs among environmental, economic and social goals.
Doing your best today to prepare for tomorrow will involve making the most of what both green budgeting and tax policy tools have to offer. The twin challenges of COVID-19 and climate change are so great that neither green budgeting nor tax policy tools alone will be enough for a successful green recovery. By combining them, countries will be able to “build back better” from the COVID-19 crisis and provide long-term certainty to their economies.
Authors:

Elsa Pilichowski, Director of Public Governance, OECD

Pascal Saint-Amans, Director of the Centre for Tax Policy and Administration, OECD

Compliments of the OECD.
The post OECD | COVID-19 and the climate crisis: Combining green budgeting and tax policy tools for a better recovery first appeared on European American Chamber of Commerce New York [EACCNY] | Your Partner for Transatlantic Business Resources.

​​​​​​​​​​​​​​​On 21 October, the European Committee of the Regions, EUROCITIES, CEMR, PLATFORMA and Regions4 organised a workshop on the role of the SDGs in the crisis recovery.
Estelle Göger, member of Cabinet of Commissioner for Economy, Paolo Gentiloni, represented the European Commission and intervened following a debate with speakers representing the diversity of local and regional authorities in the EU – regions, cities, big and small, south, north, East and West of the EU.
While there is a real risk of a backsliding of the SDGs, in particular at national and EU level, all local and regional speakers confirmed that in their regions and cities, SDGs were more relevant than ever to manage our way out of the pandemic and recover from the crisis.
Mrs Aras, President of the Parliament of Baden-Württemberg, Germany, insisted that the region relies on tried and tested instrument for a sustainable recovery based on SDGs. On the contrary, Mr Rodriguez, Commissioner for the 2030 Agenda, speaking for Barcelona, Spain, explained how the pandemic reshuffled priorities of the city within the SDGs framework. The city issued the Barcelona Pact, Barcelona recovery strategy based on triple sustainability – economic, social and environmental.
All speakers echoed this focus on triple sustainability and the absolute need to operate digital transition to enable it. A strong message was that there is no certainty on how and when the classical services models we rely on will resume (for example tourism, restaurants). It is therefore indispensable to attract new talents and ideas, and rely on SDGs rather than on traditional models. Micke Larsson, Senior Strategist in Aland Islands, Finland, explained the region is using its multi-stakeholders’ platform to gather inputs to formulate its recovery strategy while Barcelona set up a task force and launched on innovation competition to collect ideas from all stakeholders, including citizens and businesses.
Participative approaches, raising awareness, creating ownership among people and organisations are key. Baden-Württemberg insisted on the impact of organising Sustainability Days to mobilise people on SDGs. Likewise, Mrs Soens, Councillor from Korkrjik, Belgium, recalled the impact of a Sustainability Week in the middle of September during the pandemic. She also paid tribute to the support national association of cities such as the VVSG – Flemish Association of Cities provide to smaller cities and their multiplying power to coach numerous cities to localise SDGs.
In the end, SDGs are much more about listening to stakeholders than talking to them. This is about empowerment of individuals and generosity towards others and future generations.
In addition to the confirmation of SDGs as the needed framework for recovery, all speakers agreed that the implementation of SDGs, even at local and regional level, need leadership from the European Commission. It is essential to show people on the ground that their region/city’s strategies operate in a wider EU framework and this is part of a coherent plan at EU level. It is also important to show continuity of action and coherence between policy actions as well as the EU plays its accompanying role for the localisation of SDGs.
The SDGs should have been implemented through their integration within the European Semester, the EU economic coordination mechanisms. However, this year saw a clear focus of the European Semester on the EU recovery fund – the Recovery and Resilience Facility (RRF) – at the detriment of the SDGs. Participants all agreed that for the recovery to be sustainable, both the RRF and the Multiannual Financial Framework should finance sustainable projects and be based on the SDGs. Mrs Göger representing the European Commission recognised that there is a risk of backsliding of SDGs because of the current crisis but also noted that as all speakers reported, SDGs has never been so relevant before.
While SDGs are barely mentioned in the current European Semester process, all underlying initiatives linked to the recovery are linked to SDGs. For example, the Green Deal, the Digital Strategy, the RRF, the Just Transition Mechanism, the Circular Economy Action Plan, the Farm to Fork Strategy and the European Pillar of Social Rights Action Plan.
Mrs Göger recognised that there is undoubtedly an issue in terms of narrative and tagging of SDGs which is absent. However, she argued that in substance, the European Commission is still working on and committed to use the SDGs framework to guide future action.
For instance, to access the RRF 672.50 Billion EUR funding, EU countries will have to detail how they will operate their green and digital transition. The European Commission will have a crucial role in accepting or negotiating the National Recovery and Resilience plans EU countries will submit. This will have to be in line with objectives underpinned in the SDGs.
Mrs Göger hinted that the RRF legislative process is still ongoing and that the lack of visibility of SDGs in the proposal – notably in the reporting of national authorities – could be reflected upon, as should a better tagging of SDGs in the European Semester. She also insisted that the European Commission is supporting a participatory approach notably via its guidelines to EU countries, requesting them to consult local and regional authorities to draw their National Recovery and Resilience Plans, and asking whether and how consultations took place. This is an excellent opportunity as Mr Sinkevicius, Mayor of Jovana, Lithuania, recalled that the pandemic fostered closer links between the national and the local level in his country.
While the online connection with Mrs Göger was interrupted, Bert Kuby for the CoR formulated follow-up remarks such the importance of not only tagging SDGs within the European Semester but to ensure policy coherence between them in this mechanism.
In conclusion, Ivy Moraes for Regions4 and Masha Smirnova for EUROCITIES recalled that the SDGs were more important than ever for EU policy-making and that it should not be a case of either or, but that the RRF should be based on SDGs. The commitment of regions and cities in keeping implementing SDGs is also key to ensure continuity on the work of SDGs, while clearly there is a need for the European Commission to take full responsibility and leadership on the SDGs. A joint EC-CoR Forum on the RRF could help foster cooperation between all government levels on a sustainable recovery. Likewise, the soon-to-be published Staff Working Document on the implementation of SDGs should link recovery and SDGs, assign clear responsibilities within the European Commission, and integrate the role of cities and regions in the localisation of SDGs.
Compliments of the European Committee of the Regions.
The post SDGs have never been so relevant for the EU say representatives of regions, cities and the European Commission first appeared on European American Chamber of Commerce New York [EACCNY] | Your Partner for Transatlantic Business Resources.

The coronavirus pandemic represents a very large shock for the global and EU economies, with very severe economic and social consequences. Economic activity in Europe suffered a severe shock in the first half of the year and rebounded strongly in the third quarter as containment measures were gradually lifted. However, the resurgence of the pandemic in recent weeks is resulting in disruptions as national authorities introduce new public health measures to limit its spread. The epidemiological situation means that growth projections over the forecast horizon are subject to an extremely high degree of uncertainty and risks.
An interrupted and incomplete recovery
The Autumn 2020 Economic Forecast projects that the euro area economy will contract by 7.8% in 2020 before growing 4.2% in 2021 and 3% in 2022. The forecast projects that the EU economy will contract by 7.4% in 2020 before recovering with growth of 4.1% in 2021 and 3% in 2022. Compared to the Summer 2020 Economic Forecast, growth projections for both the euro area and the EU are slightly higher for 2020 and lower for 2021. Output in both the euro area and the EU is not expected to recover its pre-pandemic level in 2022.
The economic impact of the pandemic has differed widely across the EU and the same is true of recovery prospects. This reflects the spread of the virus, the stringency of public health measures taken to contain it, the sectoral composition of national economies and the strength of national policy responses.
Rise in unemployment contained compared to drop in economic activity
Job losses and the rise in unemployment have put severe strains on the livelihoods of many Europeans. Policy measures taken by Member States, together with initiatives at EU level have helped to cushion the impact of the pandemic on labour markets. The unprecedented scope of measures taken, particularly through short-time work schemes, have allowed the rise in the unemployment rate to remain muted compared to the drop in economic activity. Unemployment is set to continue rising in 2021 as Member States phase out emergency support measures and new people enter the labour market, but should improve in 2022 as the economy continues to recover.
The forecast projects the unemployment rate in the euro area to rise from 7.5% in 2019 to 8.3% in 2020 and 9.4% in 2021, before declining to 8.9% in 2022. The unemployment rate in the EU is forecast to rise from 6.7% in 2019 to 7.7% in 2020 and 8.6% in 2021, before declining to 8.0% in 2022.
Deficits and public debt set to rise
The increase in government deficits is expected to be very significant across the EU this year as social spending rises and tax revenues fall, both as a result of the exceptional policy actions designed to support the economy and the effect of automatic stabilisers.
The forecast projects the aggregate government deficit of the euro area to increase from 0.6% of GDP in 2019 to around 8.8% in 2020, before decreasing to 6.4% in 2021 and 4.7% in 2022. This reflects the expected phasing out of emergency support measures in the course of 2021 as the economic situation improves.
Mirroring the spike in deficits, the forecast projects the aggregate euro area debt-to-GDP ratio will increase from 85.9% of GDP in 2019 to 101.7% in 2020, 102.3% in 2021 and 102.6% in 2022.
Inflation remains subdued
A steep fall in energy prices pushed headline inflation into negative territory in August and September. Core inflation, which includes all items except energy and unprocessed food, also fell substantially over the summer due to lower demand for services, especially tourism-related services and industrial goods. Weak demand, labour market slack and a strong euro exchange rate will exert downward pressure on prices.
Inflation in the euro area, as measured by the Harmonised Index of Consumer Prices (HICP), is forecast to average 0.3% in 2020, before rising to 1.1% in 2021 and 1.3% in 2022, as oil prices stabilise. For the EU, inflation is forecast at 0.7% in 2020, 1.3% in 2021 and 1.5% in 2022.
Members of the College said:
Valdis Dombrovskis, Executive Vice-President for an Economy that Works for People, said: “This forecast comes as a second wave of the pandemic is unleashing yet more uncertainty and dashing our hopes for a quick rebound. EU economic output will not return to pre-pandemic levels by 2022. But through this turbulence, we have shown resolve and solidarity. We have agreed unprecedented measures to help people and companies. We will work together to chart the course to recovery, using every tool at our disposal. We agreed a landmark recovery package, NextGenerationEU – with the Recovery and Resilience Facility at its heart – to provide massive support to worst-hit regions and sectors. I now call again on the European Parliament and Council to wrap up negotiations quickly for money to start flowing in 2021 so that we can invest, reform and rebuild together.”
Paolo Gentiloni, Commissioner for Economy, said: “After the deepest recession in EU history in the first half of this year and a very strong upswing in the summer, Europe’s rebound has been interrupted due to the resurgence in COVID-19 cases. Growth will return in 2021 but it will be two years until the European economy comes close to regaining its pre-pandemic level. In the current context of very high uncertainty, national economic and fiscal policies must remain supportive, while NextGenerationEU must be finalised this year and effectively rolled out in the first half of 2021.”
A high degree of uncertainty with downside risks to the outlook
Uncertainties and risks surrounding the Autumn 2020 Economic Forecast remain exceptionally large. The principal risk stems from a worsening of the pandemic, requiring more stringent public health measures and leading to a more severe and longer lasting impact on the economy. This has motivated a scenario analysis for two alternative paths of the pandemic evolution – a more benign one and a downside one – and its economic impact. There is also a risk that the scars left by the pandemic on the economy – such as bankruptcies, long-term unemployment and supply disruptions – could be deeper and farther reaching. The European economy could also be impacted negatively if the global economy and world trade improved less than forecast or if trade tensions were to increase. The possibility of financial market stress is another downside risk.
On the upside, NextGenerationEU, the EU’s economic recovery programme, including the Recovery and Resilience Facility, is likely to provide a stronger boost to the EU economy than projected. This is because the forecast could only partially incorporate the likely benefits of these initiatives, as the information available at this stage on national plans is still limited. A trade agreement between the EU and the UK would also have a positive impact on the EU economy from 2021 compared to the forecast baseline of the UK and EU trading based on WTO Most Favoured Nation (MFN) rules.
Background
The forecast was prepared in a context of severe uncertainty, with Member States announcing major new public health measures in the second half of October 2020 to limit the spread of the virus.
The forecast is based on the usual set of technical assumptions concerning exchange rates, interest rates and commodity prices, with a cut-off date of 22 October 2020. For all other incoming data, including information on government policies, this forecast takes into consideration information up until and including 22 October. Unless policies are credibly announced and specified in adequate detail, the projections assume no policy changes.
The forecast hinges upon two important technical assumptions. First, public health measures are assumed to remain in force to some degree throughout the forecast horizon. However, after their significant tightening in the fourth quarter of 2020, the stringency of the measures is expected to gradually ease in 2021. It is also assumed that the economic impact of a given level of restrictions will diminish over time as the health system and economic agents adapt to the coronavirus environment. Second, given that the future relations between the EU and the UK are not yet clear, projections for 2021 and 2022 are based on a technical assumption that the EU and the UK will trade on WTO Most Favoured Nation (MFN) rules from 1 January 2021 onwards. This is for forecasting purposes only and reflects no anticipation nor prediction as regards the outcome of the negotiations between the EU and the UK on their future relationship.
The European Commission’s next forecast will be an update of GDP and inflation projections in the Winter 2021 Economic Forecast, which is expected to be presented in February 2021.
Compliments of the European Commission.
The post Autumn 2020 Economic Forecast: Rebound interrupted as resurgence of pandemic deepens uncertainty first appeared on European American Chamber of Commerce New York [EACCNY] | Your Partner for Transatlantic Business Resources.

Digitalization has in the past few years enabled developing countries in particular to leapfrog on financial inclusion. Countries like Kenya, Ghana, Rwanda and Tanzania have made great advances in connecting their citizens to financial systems by leveraging on mobile phone technology.

“Digitalization must be driven by the needs of the people and work for them.”

As the world has grappled with the COVID-19 pandemic, with closing of borders, curfews, lockdowns and other movement restrictions, digitalization has come to the rescue. Online shopping and entertainment, digital financial services, virtual meetings and events have taken center stage in lives and livelihoods globally.
Digital solutions
Policymakers at the onset of the pandemic took emergency measures to support and facilitate digital activities. The Central Bank of Kenya waived charges and expanded the limit for low-value mobile money transactions. This led to a significant increase in both value and number of transactions, mostly of $10 or less, helping to cushion the most vulnerable households, and attracting more than 1.6 million additional customers. In Rwanda, all charges were waived in March. By the end of April 2020, the weekly value of all kinds of mobile money transactions increased by 450 percent from pre-pandemic levels.
Businesses also moved quickly to leverage the power of digital technology. In China, Ant Group partnered with more than 100 banks to launch the Contactless Loans initiative to help small and medium enterprises recover from COVID-19. In Brazil, the central bank is launching PIX, an instant-payments system expected to become widely available this month. In India, Riskcovry, a Mumbai-based start-up, introduced a coronavirus insurance policy for businesses that want to offer their employees hospitalization and lost-wages coverage.
Fortuitously, for the last 18 months, as part of the United Nations Secretary-General’s Task Force on Digital Financing of the Sustainable Development Goals , we explored how digitalization can help tackle the world’s most urgent development challenges. COVID-19 only amplified its mandate. The pandemic has hindered the implementation of the Sustainable Development Goals, particularly in health and education. Getting back on track will be imperative to achieve a global recovery.
How can digitalization help?
We have three recommendations to share. First, placing people at the center of the global financial system. Digitalization must be driven by the needs of the people and work for them. For instance, Kenya introduced in 2017 a mobile-based digital bond dubbed M‑Akiba to mobilize micro-savings of as little as $30 to finance government. Remarkably, 85 percent of investors were participating in the government securities market for the first time.
Second, connecting citizens to mitigate the digital divide. Over 700 million people lack broadband connectivity, while over a billion lack formal identification. Countries must invest in digital infrastructure and digital identity so their citizens can access online services. Coupled with that, there has to be investment in numeracy and financial literacy. International co-operation will be needed to support these efforts. The International Monetary Fund, World Bank and other international organizations are working with the private and public sectors globally to help countries.
Third, strengthen the governance of global digital financial platforms. The so-called Big Techs are transforming the delivery of services globally including in developing countries. COVID-19 has accelerated this trend as they get more entrenched in everybody’s lives. However, developing countries have not been at the table when the governance of these platforms is discussed. One of the taskforce’s key initiatives is the Dialogue on Global Digital Finance Governance, that seeks to facilitate a balanced and more inclusive dialogue, particularly involving developing nations, on better aligning Big Tech governance to the Sustainable Development Goals.
Down the road
As we build a digital bridge to the future, we must stay focused on the resultant risks. Cybersecurity, and data privacy and security are the greatest threats to vulnerable citizens using digital services for the first time. We must mitigate these risks and protect their information and their hard-earned money.
The pandemic crisis presents the greatest opportunity to enhance the lives and livelihoods of citizens. Governments, the private sector, international organizations and citizens must take up the challenge of increasing digitalization and dare to make a difference. The moment is now!
Authors:

Patrick Njoroge, the ninth Governor of the Central Bank of Kenya (CBK)

Ceyla Pazarbasioglu, Director of the Strategy, Policy, and Review Department (SPR) of the IMF

Compliments of the IMF.
The post Bridging the Digital Divide to Scale Up the COVID-19 Recovery first appeared on European American Chamber of Commerce New York [EACCNY] | Your Partner for Transatlantic Business Resources.

Anti-money laundering and terrorism financing
Ministers discussed the Council conclusions on anti-money laundering and terrorism financing, which aim to provide the Commission with guidance in advance of its legislative proposals in 2021 on a single rule book, EU-level supervision and a coordination and support mechanism for member states’ financial intelligence units.
During the discussion, ministers expressed broad support for the draft Council conclusions as prepared by Coreper and at expert level.
In the draft conclusions, the Council outlines various areas in which the Commission should consider harmonising the EU rules via a directly applicable regulation. The Council also supports setting up an EU-level supervisor with direct supervisory powers over a selected number of high-risk obliged entities, as well as the authority to take over supervision from a national supervisor in clearly defined and exceptional situations.
The Council is due to approve the conclusions by written procedure after the video conference.

The fight against money laundering and terrorism financing is a top priority for the German presidency. Recent alleged money laundering cases, including in the EU, underline the urgency to act. More harmonised rules and EU-level supervision will allow us to be more effective and to strengthen the EU’s anti-money laundering framework. It is an important sign that we all stand united for tough anti-money laundering measures.Olaf Scholz, Germany’s Federal Minister of Finance and Vice Chancellor

Non-performing loans
The Commission updated ministers on the implementation of the 2017 action plan on non-performing loans in the banking sector and presented elements of its upcoming action plan, which is expected to set out a comprehensive strategy with a mix of complementary policy actions to tackle non-performing loans in the EU.
Non-performing loans are bank loans that are more than 90 days past-due or are unlikely to be repaid in full without requiring the realisation of collateral. They remain at high levels within some members states despite significant progress in reducing them over the past few years. The COVID-19 crisis is expected to lead to an increase in their ratios.
Ministers agreed on the importance of accelerating the implementation of the outstanding measures from the 2017 action plan. They will discuss the new action plan once it has been presented by the Commission.
European Fiscal Board 2020 annual report
Niels Thygesen, the chair of the European Fiscal Board (EFB), presented the EFB’s 2020 annual report.
The report provides an analysis of fiscal policy surveillance and coordination in the EU and aims to inform relevant stakeholders, mainly the Commission, in their efforts to strengthen and improve the EU’s fiscal framework. In particular, it offers an assessment of the implementation of the Stability and Growth Pact in 2019 and a forward-looking analysis of possible improvements to the EU fiscal framework.

2020 annual report of the European Fiscal Board

Information from the presidency
The presidency presented three sets of Council conclusions prepared at expert level, concerning the European Court of Auditors’ special report on the European Semester, the Annual Sustainable Growth Strategy 2021, and EU statistics. The conclusions are due to be approved by the Council after the video conference, either at a physical Council meeting or by written procedure.
The presidency also briefed ministers, alongside the Commission, on the discussions at the G20 finance ministers’ and central bank governors’ meeting and the IMF/World Bank annual meetings in October.
Under ‘Any other business’, the presidency updated ministers on the progress achieved on the  financial services legislative proposals, in particular on the negotiating mandates for the Capital Markets Recovery Package and the Benchmark Regulation recently agreed by the Council and work on the legislative proposals on cyber resilience and crypto assets. It also stressed the importance of reaching a quick agreement on the proposal to amend the directive on administrative cooperation in the field of taxation (DAC 7).
Compliments of the Council of the European Union.
The post Main Results: Video conference of EU economics and finance ministers, 4 November 2020 first appeared on European American Chamber of Commerce New York [EACCNY] | Your Partner for Transatlantic Business Resources.

Easing of overall credit terms and conditions represented a partial reversal of the tightening recorded in the previous two survey rounds
Increase in pressure, in particular from non-financial corporate counterparties, to obtain more favourable conditions
Valuation disputes decreased for both securities financing and derivatives transactions

Survey respondents reported an easing of credit terms and conditions over the June 2020 to August 2020 review period representing a partial reversal of the widespread tightening of credit terms and conditions observed in the previous two survey rounds.
Respondents reported a significant easing of overall credit terms for all counterparty types. This overall easing masks some divergence between price and non-price terms. Whereas price terms eased significantly, non-price terms on balance tightened for all counterparty types except banks. Respondents mainly attributed the easing of price terms to an improvement in general liquidity and market functioning, but they also suggested that the willingness to take on risk, as well as competition from other institutions were additional motivations for offering more favourable conditions to counterparties.
Survey respondents also reported increased pressure from all counterparty types, except investment firms, to obtain more favourable conditions, with this being most pronounced from non-financial corporates. This resulted in increased provision of differential terms to most-favoured, in particular non-financial corporate, clients.
The maximum amount and maturity of funding offered against euro-denominated collateral increased for most types of collateral. Haircuts applied to euro-denominated collateral and financing rates/spreads decreased for funding secured by nearly all types of collateral. Moreover, the demand for funding of all collateral types except equities weakened. In a reversal of the situation reported in the June 2020 survey, participants saw the liquidity of collateral improving for all collateral types and collateral valuation disputes decreasing.
Initial margin requirements decreased for almost all types of OTC derivatives. Respondents also reported that the maximum amount of exposures had decreased for OTC equity and commodity derivatives. Liquidity and trading deteriorated for credit derivatives referencing structured credit products as well as for equity and interest rate derivatives. The volume, duration and persistence of valuation disputes decreased across all types of derivatives.
The SESFOD is conducted four times a year and covers changes in credit terms and conditions over three-month reference periods ending in February, May, August and November. The September 2020 survey collected qualitative information on changes between June 2020 and August 2020. The results are based on responses from a panel of 26 large banks, comprising 14 euro area banks and 12 banks with head offices outside the euro area.
Compliments of the European Central Bank.
The post Results of the September 2020 survey on credit terms and conditions in euro-denominated securities financing and over-the-counter derivatives markets (SESFOD) first appeared on European American Chamber of Commerce New York [EACCNY] | Your Partner for Transatlantic Business Resources.

The Council today adopted two recast regulations, one on the taking of evidence and a second on the service of documents, to modernise cross-border exchanges between authorities through digitalisation. After reaching a political agreement with the European Parliament in June 2020, the text will now be submitted to the Parliament for its final adoption.

The COVID-19 pandemic has highlighted the need for a modern and digital justice system. The regulations adopted today will allow for faster, more efficient cooperation between judicial authorities, making it easier for citizens and businesses to exercise their right to justice.
Christine Lambrecht, German Federal Minister of Justice and Consumer Protection

The modernised regulations seek to improve the efficiency and speed of cross-border judicial proceedings by taking advantage of digitalisation and the use of modern technology, and by these means to advance access to justice and fair trial for the parties.
Changes in both regulations include the mandatory use of a decentralised IT system, composed of interconnected national IT systems, for the transmission of documents and requests between member states.
Regarding the service of documents, under the new rules documents can be served electronically and directly to an addressee with a known address in another member state, when their express consent is given in advance. The service can be performed through qualified electronic registered delivery services or, under additional conditions, by e-mail.
The new rules also promote the use of videoconferencing or other distance communication technology in the taking of evidence which implies hearing a witness, party or expert located in another member state.
Compliments of the Council of the European Union.
The post Digital Europe: EU Council adopts new rules to modernise judicial cooperation in taking of evidence and service of documents first appeared on European American Chamber of Commerce New York [EACCNY] | Your Partner for Transatlantic Business Resources.

President of the European Commission Ursula von der Leyen warned today, 28 October 2020, that situation with COVID-19 was very serious in nearly all EU countries, and called for responsibility to be taken at all levels to slow down the spread of the virus. “Our goal is clear: We need to contain the virus until we have treatments, vaccination and other means to protect everyone’s health,” she said.
Speaking to the media following the weekly meeting of the College of Commissioners, President von der Leyen said that no Member State would safely emerge from the crisis until everyone did, and stressed the urgent need for cooperation, coordination and solidarity.
She outlined an additional package of measures which the Commission proposed today and which should enable a coordinated approach to data sharing, testing, medical and non-medical equipment, travel, and vaccination strategies.
These measures build on the foundations, the experience and the expertise of the EU and its Member States in dealing with the virus and aim to reinforce our response amidst the resurgence of the virus.
Ranging from better information sharing between Member States, making testing more effective and rapid, preparing vaccination plans to linking up national tracing apps, and facilitating travel, their aim is to limit the spread of the coronavirus, save lives and strengthen the resilience of our internal market.
President von der Leyen said that tomorrow’s videoconference of the Heads of State or Government aims to ensure better coordination, reminding that ‘coordinating our action and taking responsibility at all levels, we can get control over the coronavirus, protect everyone’s health and gradually return our society and economy to normal’.
Compliments of the European Commission.
The post Coronavirus: Von der Leyen presents new preparedness and response measures first appeared on European American Chamber of Commerce New York [EACCNY] | Your Partner for Transatlantic Business Resources.