Today, the Dispute Settlement Body of World Trade Organization (WTO) formally authorised the EU to take countermeasures against the United States. The EU can now increase its duties on U.S. exports worth up to $4 billion. Today’s decision follows the WTO panel announcement confirming EU retaliation rights in reaction to illegal subsidies granted to the U.S. aircraft maker, Boeing.
Executive Vice-President for an Economy that Works for People and Commissioner for Trade, Valdis Dombrovskis, said: “Today’s formal approval by the Dispute Settlement Body of the WTO confirms the EU’s right to impose countermeasures for illegal subsidies to the American aircraft maker, Boeing. The European Commission is preparing the countermeasures, in close consultation with our Member States. As I have made clear all along, our preferred outcome is a negotiated settlement with the U.S. To that end, we continue to engage intensively with our American counterparts, and I am in regular contact with U.S. Trade Representative Robert E. Lighthizer. In the absence of a negotiated outcome, the EU will be ready to take action in line with the WTO ruling.”
The European Commission is currently finalising the process, involving EU Member States, to be ready to use its retaliation rights in case there is no prospect of bringing the dispute to a mutually beneficial solution in a near future.
Compliments of the European Commission.
The post Boeing WTO case: the EU gets formal green light to impose duties on U.S. imports first appeared on European American Chamber of Commerce New York [EACCNY] | Your Partner for Transatlantic Business Resources.

At the 21st International Conference of Banking Supervisors, senior banking supervisors and central bankers discussed issues related to the future of banking supervision in a changing world.
Discussions covered the digitalisation of finance and the evolution of banking models, operational resilience, climate-related financial risks and remote working arrangements.
This was the first time the Basel Committee has worked with a host country to offer a completely virtual conference.

The 21st International Conference of Banking Supervisors (ICBS), hosted virtually by the Office of the Superintendent of Financial Institutions (OSFI) and the Bank of Canada, was held on 19-22 October 2020. Approximately 450 senior banking supervisors and central bankers representing close to 100 countries took part.
Delegates discussed a wide range of issues related to the future of banking supervision in a changing world. The discussions covered the digitalisation of finance and the evolution of banking models, operational resilience, climate-related financial risks and remote working arrangements. Participants also exchanged views on the challenges for central banks and bank supervisors in advanced and emerging market economies during the Covid-19 pandemic, as well as adapting to the changing operating environment for central banks and supervisors.
The event included several panel discussions and keynote speeches by Pablo Hernández de Cos, Chair of the Basel Committee on Banking Supervision and Governor of the Bank of Spain, and Prithwiraj Choudhury, Associate Professor at Harvard Business School.
This successful event marks the first time that the Basel Committee has worked with a host country to offer a completely virtual conference.
The ICBS, which has been held every two years since 1979, brings together bank supervisors and central bankers from around the world as well as representatives of international financial institutions. The conference promotes the discussion of key supervisory issues and fosters the continuing cooperation in the oversight of international banking. With its wide membership of senior supervisors and policymakers, the ICBS presents a unique opportunity for a broad-based discussion on issues that are timely and relevant to supervisors in both advanced and emerging market economies.

“This virtual ICBS lived up to our high expectations of providing a forum for central bankers and supervisors to discuss current challenges and the future of banking supervision in a fast-moving world. A critical element to see through the changes is the implementation of all aspects of the Basel Framework by our members.”Pablo Hernández de Cos, Chair of the Basel Committee and Governor of the Bank of Spain

“I am very proud that OSFI co-hosted this event on behalf of Canada. Now more than ever, it is important that banking supervisors can come together and share their experiences and perspectives. Reimagining this year’s ICBS as a model for the “conference of the future” ensured that we were able to do so.”Jeremy Rudin, Superintendent, Office of the Superintendent of Financial Institutions

My sincere thanks to all the personnel at the Basel Committee, OSFI and the Bank of Canada, whose hard work and ingenuity made this year’s conference possible. The success of this virtual event epitomises many of the themes that were discussed – digitalisation, operational resilience, collaboration and adaptation to changing circumstances.Tiff Macklem, Governor, Bank of Canada

Compliments of the Bank of International Settlements.
The post BIS | Focus on the future of banking supervision in a changing world first appeared on European American Chamber of Commerce New York [EACCNY] | Your Partner for Transatlantic Business Resources.

Released on October 09, 2020 |

Seven central banks and the BIS release a report assessing the feasibility of publicly available Central Bank Digital Currencies (CBDCs) in helping central banks deliver their public policy objectives.
Report outlines foundational principles and core features of a CBDC, but does not give an opinion on whether to issue.
Central banks to continue investigating CBDC feasibility without committing to issuance.

A group of seven central banks together with the Bank for International Settlements (BIS) today published a report identifying the foundational principles necessary for any publicly available CBDCs to help central banks meet their public policy objectives.
The report, Central bank digital currencies: foundational principles and core features, was compiled by the Bank of Canada, the Bank of England, the Bank of Japan, the European Central Bank, the Federal Reserve, Sveriges Riksbank, the Swiss National Bank and the BIS, and highlights three key principles for a CBDC:

Coexistence with cash and other types of money in a flexible and innovative payment system.
Any introduction should support wider policy objectives and do no harm to monetary and financial stability.
Features should promote innovation and efficiency.

The group of central banks will continue to work together on CBDCs, without prejudging any decision on whether or not to introduce CBDCs in their jurisdictions.

“This report is a real step forward for this group of central banks in agreeing the common principles and identifying the key features we believe would be needed for a workable CBDC system. As well as helping central banks to meet their public policy objectives, the report provides a useful framework for how central banks provide money and support payment systems in an ever-evolving digital world. This group of central banks has built a strong international consensus which will help light the way as we each explore the case and design for CBDCs in our own jurisdictions.”Sir Jon Cunliffe, working group co-chair, Deputy Governor of the Bank of England and Chair of the Committee on Payments and Market Infrastructures

Based on these principles, the group has identified the core features of any future CBDC system, which must be:

Resilient and secure to maintain operational integrity.
Convenient and available at very low or no cost to end users.
Underpinned by appropriate standards and a clear legal framework.
Have an appropriate role for the private sector, as well as promoting competition and innovation.

“A design that delivers these features can promote more resilient, efficient, inclusive and innovative payments. Although there will be no ‘one size fits all’ CBDC due to national priorities and circumstances, our report provides a springboard for further development of workable CBDCs.”>Benoît Cœuré, working group co-chair and Head of the BIS Innovation Hub

Further development of CBDCs requires a commitment to practical policy analysis and applied technical experimentation. While this has already started, the speed of innovation in payments and money-related technologies requires the prioritisation of collaborative experimentation.

“While technology is changing the way we pay, central banks have a duty to safeguard people’s trust in our money. Central banks must complement their domestic efforts with close cooperation to guide the exploration of central bank digital currencies to identify reliable principles and encourage innovation. The present report is a convincing proof of this international cooperation.”>Christine Lagarde, President of the European Central Bank, chair of the group of central bank governors responsible for the report

Future activities will include exploring other open questions around CBDCs and the challenges of cross-border payments, as well as continuing outreach domestically and with other central banks to foster informed dialogue on key issues. Work by the BIS Innovation Hub, which serves the broader central banking community, will contribute to this objective.
Compliments of the Bank of International Settlements. 
The post Central banks and BIS publish first central bank digital currency (CBDC) report laying out key requirements first appeared on European American Chamber of Commerce New York [EACCNY] | Your Partner for Transatlantic Business Resources.

Enhanced rules and new internal tool to enable staff to speak up in confidence
Secure online platform allows for anonymous reporting
Dedicated rules and processes protect whistleblowers from retaliation

The European Central Bank (ECB) has today announced an enhanced internal whistleblowing framework to protect the integrity of the institution. It encompasses a new internal tool for simple and secure reporting of potential breaches of professional duties, inappropriate behaviour or other irregularities, and the possibility for whistleblowers and witnesses to request protection from retaliation. The new IT tool also allows for anonymous reporting.
“Acting in an ethical manner goes beyond a mere compliance with law, rules and policies. It is a commitment guiding our behaviour and driving us to make the right choice even if we are faced with challenges or put under pressure,” said Christine Lagarde, ECB President. “The new whistleblowing framework reinforces the ECB’s dedication to its shared values and encourages staff to speak up in full confidence.”
The new IT tool is expected to become available in coming weeks. The online internal reporting tool is complementary to the ECB’s existing breach reporting mechanism used primarily in banking supervision, which is available externally.
The initiative reflects the ECB’s commitment to promoting integrity, good corporate governance and the highest ethical standards.
Compliments of the ECB.
The post ECB enhances internal whistleblowing framework first appeared on European American Chamber of Commerce New York [EACCNY] | Your Partner for Transatlantic Business Resources.

Under BEPS Action 14, jurisdictions have committed to implement a minimum standard to improve the resolution of tax-related disputes between jurisdictions. Despite the significant disruption caused by the COVID-19 pandemic and the necessity to hold all meetings virtually, work has continued with the release today of the stage 2 peer review monitoring reports for Czech Republic, Denmark, Finland, Korea, Norway, Poland, Singapore and Spain.
These reports evaluate the progress made by these eight jurisdictions in batch 3, in implementing any recommendations resulting from jurisdictions’ stage 1 peer review reports. The stage 2 monitoring takes into account any developments in the period 1 August 2017 – 28 February 2019 and the MAP statistics are based on years 2016, 2017 and 2018.
The results from the peer review and peer monitoring process demonstrate positive changes across all eight jurisdictions, although not all show the same level of progress. Highlights include:

The Multilateral Instrument was signed by all eight jurisdictions and has already been ratified by five of them, which brings a substantial number of their treaties in line with the standard. In addition, there are bilateral negotiations either ongoing or concluded.
Denmark, Finland, Korea, Norway, Poland, Singapore and Spain now have a documented notification/bilateral consultation process to be applied in cases where an objection is considered as being not justified by their competent authority.
All jurisdictions have added more personnel to the competent authority function and/or made organisational improvements with a view to handle MAP cases in a more timely, effective and efficient manner.
Denmark, Finland, Korea, Norway, Singapore and Spain decreased the amount of time needed to close MAP cases.
Singapore introduced legislative changes to ensure that all MAP agreements can be implemented notwithstanding domestic time limits if the treaty does not provide for it, while in five of the other seven jurisdictions this is already the case.
Denmark, Finland, Korea, Norway and Singapore have issued or updated their MAP guidance.

Further progress on making dispute resolutions more timely, effective and efficient will become known as other stage 2 monitoring reports are published. In the meantime, the OECD will continue to publish stage 1 peer review reports in accordance with the Action 14 peer review assessment schedule. The publication of the tenth batch of Action 14 peer reviews is forthcoming.

More on the BEPS Action 14 peer review and monitoring process

Contacts:

Pascal Saint-Amans, Director of the OECD Centre for Tax Policy and Administration | pascal.saint-amans[at]oecd.org or +33 1 45 24 91 08

Achim Pross, Head of the International Co-operation and Tax Administration Division | Achim.Pross[at]oecd.org or +33 1 45 24 98 92

Compliments of the OECD.
The post OECD | Making tax dispute resolution more effective: New peer review assessments for Czech Republic, Denmark, Finland, Korea, Norway, Poland, Singapore and Spain first appeared on European American Chamber of Commerce New York [EACCNY] | Your Partner for Transatlantic Business Resources.

The European Commission announces a €150m financial contribution to the Venture Centre of Excellence (VCOE) programme, at the HTID® event in Paris
The contribution from the European Commission is an anchor investment in the VCoE with additional contributions expected from private investors predominately in the Pharma and Med-tech industry,
Co-developed by EIT Health and the European Investment Fund, the VCoE is expected to catalyse over €2bn into the European Life Sciences industry. The VCOE programme will start operations in the coming weeks.

EIT Health and EIF, with the strong commitment of the European Commission, announced the contribution of EUR 150m from EFSI to the VCoE programme in Paris today, during the annual HealthTech Innovation Days (HTID®) event. The ceremony featured speeches from French President, Emmanuel Macron, as well as Thierry Breton, European Commissioner for the Internal Market.
VCoE is a first of its kind open innovation platform in the Life Science sector in Europe aimed at fostering collaboration and investment sharing between the venture capital industry and corporates in order to boost investments in highly innovative digital health and life science start-ups. This enhanced collaboration and investment capacity is expected to boost Europe’s innovative life science ecosystem, support breakthrough technologies, ensure products and services are commercialised and scaled in Europe, and help attract talent and innovation from beyond our borders.
The Commissioner for Internal Market, Thierry Breton, said: “The crisis has accelerated the digital transformation of healthcare in Europe. We must seize this opportunity. We need to act strategically and create the conditions for start-ups, industry, healthcare systems and patients to benefit fully from the potential of digital health in Europe. As part of our efforts, today we are offering concrete support towards the Venture Centre of Excellence, an innovative platform fostering collaboration and investment that are much-needed for Europe’s health ecosystem.”
EIF Chief Executive, Alain Godard, declared:  “We must continue to support Europe’s position as a leader in life sciences. The Covid-19 pandemic has shown us that strong partnerships are key to developing solutions for global healthcare challenges. I am delighted that within a year of signing a Memorandum of Understanding with EIT Health, we can welcome a substantial commitment from the European Commission to our jointly created Venture Centre of Excellence programme. This support will help to encourage more investments into start-ups and scale-ups in the health sector, an area the EIF continues to prioritise.”
Jan-Philipp Beck, CEO of EIT Health commented : “At the EIT Health Summit in December 2019, the President of Paris Region Valérie Pécresse, announced that the Region would host and finance the installation of the operational headquarters of the Venture Centre of Excellence in Paris, alongside EIF’s teams in Luxembourg. With the strong financial backing from the European Commission, the VCoE will break down silos between key ecosystem players, and concretely support Life Science and healthcare innovation. Thanks to EIT Health’s positioning as one of the world’s largest Healthcare consortia, we will therefore be able to facilitate the access to market of high-quality solutions meeting real-world patient and citizen needs.”
The strong financial commitment from the European Commission to the VCoE is a testament to the fact that Europe’s leading healthcare and life sciences sector is vital to ensuring the health of European citizens and economies, as the Covid-19 pandemic has proven.
EIT Health chose to partner with the endowment fund HealthTech for Care to co-organise the second edition of HTID®, thus providing participants with the possibility to interact with its extensive network of partners throughout Europe. Thanks to this partnership, HTID®, while bringing together more than 200 international investors, will also provide a venue for future Venture Centre of Excellence (VCoE) members’ meetings.
Please find more information about the VCoE programme here: https://eithealth.eu/project/venture-centre-of-excellence/
About EIT Health
Europe faces a turning point in health. An ageing population, the rising burden of chronic disease, and growing multi-morbidity are all placing pressure on health systems across Europe.
EIT Health is a vast, vibrant community of world leading health innovators backed by the European Union. Working across borders, our network connects approximately 150 world-class partner organisations, as well as entrepreneurs, start-ups and SMEs from the worlds of business, research, education and healthcare delivery. Our aim is to answer the biggest health challenges Europe faces and we believe that life changing innovation happens when these worlds meet and collaborate. That’s why we call this the ‘knowledge triangle’.
From our headquarters in Munich, six regional Innovation Hubs and InnoStars cluster, which brings together organisations from regions in which the overall pace of innovation is more moderate, we provide an ecosystem in which fresh thinking can thrive. Our Regional Innovation Scheme further expands our presence in 13 countries across Central, Eastern and Southern Europe. EIT Health also leads the development of the EIT Hub in Israel, which connects innovators across Europe to other key thriving ecosystems beyond the EU.
EIT Health is supported by the European Institute of Innovation and Technology (EIT), a body of the European Union. Our ambition is to enable people in Europe to live longer, healthier lives by transforming businesses and delivering new products and services that can progress healthcare in Europe and strengthen our economy.
EIT Health: Together for healthy lives in Europe. 
For more information visit: www.eithealth.eu
About EIF
The European Investment Fund (EIF) is part of the European Investment Bank Group. Its central mission is to support Europe’s micro, small and medium-sized enterprises by helping them to access finance. It designs and implements venture and growth capital operations, as well as guarantee and microfinance instruments specifically targeting this market segment. In this role, the EIF fosters EU objectives in support of innovation, research and development, entrepreneurship, growth, and employment.
About Health Tech Innovation Days
The HealthTech Innovation Days drive and foster collaborations within the European healthcare ecosystem. This event features conferences and private meetings between innovative European Biotech, Medtech and Digital health companies, pharmaceutical companies, life sciences specialized investors, healthcare experts, KOLs and institutional representatives. The HTID® demonstrates that access to innovative care for all depends on the right funding and partnership in-between actors in health and finance. This second edition hold on October 5th & 6th 2020 held by HealthTech For Care, an endowment fund launched by France Biotech, and co-organised with EIT Health, will accelerate patient access to healthcare solutions and contribute to building a stronger ecosystem.
Contacts:

Ms. Yasmin Ghariani, EIT Health Senor Communications Lead | yasmin.ghariani[at]eithealth.eu
Mr. Jérôme Fabiano, EIT Health France External Affairs Director | jerome.fabiano[at]eithealth.eu

David Yormesor, Media Officer | d.yormesor[at]eif.org

Flora Matthaes, Press officer for employment, social inclusion and investment at the EU Commission | flora.matthaes[at]ec.europa.eu

Marietta Grammenou, Press Officer for Digital Economy, Research and Innovation at the EU Commission | marietta.grammenou[at]ec.europa.eu

Compliments of the European Investment Fund.
The post European Commission announces support for the Venture Centre of Excellence programme first appeared on European American Chamber of Commerce New York [EACCNY] | Your Partner for Transatlantic Business Resources.

The pandemic is exacting a heavy toll on Europe. More than 240,000 people have lost their lives. Millions have suffered the illness themselves, the loss of loved ones, or major disruption in their work, their businesses, and their daily lives.
The economic impact of the pandemic has been enormous. Our latest Regional Economic Outlook for Europe forecasts a 7 percent decline in Europe’s GDP in 2020. The recovery from this crisis will be uneven and partial. While real GDP is projected to rebound by 4.7 percent in 2021, it would still be lower by 6.3 percent for 2021 relative to our pre-pandemic projections, implying a GDP loss of almost 3 trillion euros. Much of this loss will not be recouped over the medium term.
“The economic impact of the pandemic has been enormous.”
An unprecedented policy response, both in swiftness and scale, prevented a more devastating outcome. To give just one example: we estimate that at least 54 million jobs have at some stage been supported by job retention schemes in Europe. This has kept many families and firms afloat in these difficult times. EU-wide policies also made a difference. Risks remain significant and are rising as a second wave of infections is intensifying. Given the considerable uncertainty, policies must stay resolutely supportive to sustain the recovery.
The European response
A decisive policy response protected incomes and the productive capacity of the economy.
Fiscal policy did the heavy lifting. We estimate that the average size of announced discretionary fiscal measures for 2020 was 6.2 percent of GDP for Europe’s advanced economies and 3.1 percent of GDP for its emerging economies. This discretionary support came on top of Europe’s powerful automatic stabilizers. A large share of the fiscal packages was used for job retention programs and liquidity support for firms. These programs were highly successful in limiting the extent of job destruction and prevented a cascading of bankruptcies and bank closures.
Monetary policy and macroprudential policies were essential in providing favorable funding conditions for all sectors of the economy. Policy rate cuts, asset purchases, easing of conditions under which banks can obtain liquidity, and lowering of bank capital and liquidity buffers helped ensure the flow of credit, especially to small and medium-sized enterprises.
And highly accommodative monetary policies by the European Central Bank and other reserve currency economies had powerful international spillovers, easing monetary conditions including in emerging Europe. IMF emergency financing supported six European countries.
These policy interventions contributed to avoiding an even deeper recession and long-lasting economic scars on the European economy. For the EU economies, we estimate that without the policy actions and the strong EU support, economic activity might have been an additional 3-4 percentage points of GDP lower in 2020.
Lessons and challenges
Policymakers need to do whatever it takes to contain the pandemic and its economic damage, and not withdraw support prematurely to avoid repeating the mistake of the global financial crisis. Over time, support should become more targeted and also more flexible to facilitate the reallocation of resources and the transformation of the economy.
Protecting people’s health remains imperative, including through international cooperation.
Income support and job retention programs should remain in place. As the pandemic evolves and the economy starts to recover, the programs should be adapted from protecting jobs toward supporting workers, including through reskilling programs.
For companies, policies now need to go beyond liquidity support and ensure that insolvent but viable firms can remain in business. Our report finds that in advanced economies around one-third of the pandemic-induced solvency shortfall could be addressed by announced policies, such as wage subsidies, grants, or tax rebates. In emerging Europe, it is only around one-quarter. Thus, policies need to be put in place that facilitate speedy debt restructurings in or outside of bankruptcy, or in some cases make equity available to viable firms.
Long-term inflation that is generally anchored around or below targets and sizable economic slack suggest that central banks should keep highly accommodative monetary policies in place. Macroprudential easing should be unwound only gradually.
European banks entered the pandemic with strong capital and liquidity buffers and proved resilient to the unprecedented shock. Their resilience, together with the strong policy response, helped prevent a credit crunch. Our work suggests that absent new shocks, the average capital ratio of large EU banks should stay well above the minimum capital requirements. Still, nonperforming loans will rise and policymakers will need to facilitate their efficient disposal. And banks will need to engage with shareholders in developing a credible strategy to raise capital over the medium term.
Transforming the economy
This is also the time to design reforms that boost productivity growth and policies that help transform the economy, to reap the benefits of digitalization and mitigate climate change. Social systems can be improved and made more robust so that they can deal better with worker dislocation and retraining needs arising from automation and technological change. Policies, including better targeting of fiscal support, will also need to address the pernicious effects of the crisis and a likely sharp rise in inequality, especially as the youth, women, and least educated have been disproportionally affected.
Without the exceptionally strong and multifaceted policy response, the recession in Europe would have been far worse. Strong policy support needs to be maintained because the pandemic is intensifying and the recovery is still nascent and fragile. Once fiscal resources are freed from temporary support of people and firms, they should be redeployed to public investment that will build a more resilient, smarter, greener and more inclusive economy for tomorrow­­. For the EU countries, the Next Generation EU instrument can play an important role in this regard. And preparations should start on plans to rebuild policy space, which will need to begin once the recovery is in full swing. Together these actions will help limit the scarring from this crisis and thereby strengthen the capacity to deal with the public and private debt burden.
Author:

Alfred Kammer, Director of the European Department, IMF

Compliments of the IMF.
The post IMF | Europe Needs to Maintain Strong Policy Support to Sustain the Recovery first appeared on European American Chamber of Commerce New York [EACCNY] | Your Partner for Transatlantic Business Resources.

Today, the Council reached an agreement on next year’s fishing opportunities in the Baltic Sea, focusing on fish stock recovery. Ministers agreed to continue decreasing the fishing opportunities for several fish stocks in the Baltic Sea to help them recover. Ministers decided to continue the closure of the Eastern Baltic cod fishery and to provide only a by-catch quota, which was again significantly reduced compared to last year’s. The biggest cuts in the total allowable catches (TACs) were for the herring of the Western and Central part of the Baltic Sea, in line with the latest scientific advice.

This agreement is a viable solution forward for fishermen and fishery resources in the Baltic Sea. It is an agreement that strengthens our efforts to sustain and help stocks recover while ensuring activities for fishermen.
Julia Klöckner, Federal Minister for Food and Agriculture of Germany

Ministers agreed for a moderate increase of the TACs for herring in the Gulf of Riga, Western Baltic cod, plaice, sprat and salmon in the main basin area of the Baltic Sea, while salmon in the Gulf of Finland will be moderately decreased. The TACs for the Bothnian herring will remain at the same level as last year.
The agreement in detail
Based on a Commission proposal, the agreed quantities take into account the commitment to meet the objectives of the Common Fisheries Policy (CFP), including the achievement of Maximum Sustainable Yield (MSY), as well as scientific advice provided in particular by the International Council for the Exploration of the Sea (ICES). The provisions of the multiannual management plan for the Baltic sea were also the guiding principles of this year’s exercise.
In addition to setting TACs and quotas on some species, the Council agreed on additional measures such as:

Maintain the existing summer spawning closure for the Eastern Baltic cod with an exception for purely scientific fisheries and small-scale coastal fisheries using specific gears.
Extend the spawning closure period for cod in Subdivision 24.
Maintain the ban on recreational fisheries of Eastern Baltic cod, and maintain the reduced bag limit for Western Baltic cod recreational fisheries.
Declaration by relevant Member States not to use year-to-year flexibility for Eastern Baltic cod.

Traditionally, this regulation also includes an amendment to the 2020 fishing opportunities to take into account recent advice for Norway pout. The Council therefore also decided on fishing opportunities for this important fishery whose season will start at the beginning of November. Given that this stock is partly present in UK waters, the TAC is currently only set until the end of the year and will need to be revised then.
Preparatory work conducive to finding swift agreement was carried out at regional level through BALTFISH, a body providing a platform for discussion on important fisheries issues in the Baltic Sea, currently under Estonia’s chairmanship.

Council agreement on 2021 catch limits in the Baltic Sea

Next steps
To ensure the entry into force of this regulation by 1 November for Norway pout fishing activities to continue, after finalisation by the legal/linguists experts, this item will be submitted for adoption by written procedure.
Background
Today’s discussions were based on a Commission proposal with article 43(3) of the Treaty on the Functioning of the European Union (TFEU) as the legal basis. Under this article, it is for the Council to adopt measures on the fixing and allocation of fishing opportunities within the framework of the common fisheries policy. The European Parliament’s participation and the Economic and Social Committee’s opinion are therefore not required for the adoption of this regulation.
Compliments of the Council of the European Union.
The post Baltic Sea fishing: Council of the EU agrees on 2021 catch limits first appeared on European American Chamber of Commerce New York [EACCNY] | Your Partner for Transatlantic Business Resources.

Today, the Council agreed its negotiating position (general approach) on the post-2020 common agricultural policy (CAP) reform package. This agreed position puts forward some strong commitments from member states for higher environmental ambition with instruments like mandatory eco-schemes (a novelty compared to the current policy) and enhanced conditionality. At the same time, the agreed position allows member states to have the necessary flexibility in how they would reach environmental goals. For instance, there would be a two-year pilot phase for eco-schemes and member states would enjoy flexibility on how to allocate funds under different green practices.
A general approach means that the Council has now the political mandate to kick-off negotiations with the European Parliament, once the co-legislator also agrees on its internal position, with a view to reaching an overall agreement.

Today’s agreement is a milestone for Europe’s agricultural policy. Member states demonstrated their ambition for higher environmental standards in farming and at the same time supported the needed flexibility in ensuring farmers’ competitiveness. This agreement fulfils the aspiration of a greener, fairer and simpler CAP.
Julia Klöckner, Federal Minister for Food and Agriculture of Germany

The reform of the CAP foresees that while more flexibility will be given to member states in shaping rules and funding allocations through the development of national strategic plans, they will be obliged to demonstrate a higher environmental ambition compared to the current period. The so-called “new delivery model” would favour performance over compliance: it would enables countries to choose the best tools and actions at their disposal (and also taking into account national specificities) to reach the agreed EU-wide objectives and standards.
Some concrete examples of member states will fulfil higher environmental standards, which were debated and agreed during the two-day Council, include:

Farmers would receive financial support under the condition that they adopt practices beneficial for the climate and the environment, to make the CAP even greener than before.
Farmers going beyond the basic environment and climate requirements would get additional financial support through the introduction of “eco-schemes”. These new instruments for environment and climate protection would be linked to a dedicated budget, constituting part of the direct payments budget. It would be ring-fenced at 20%, which means that they would be unlocked through the use of eco-schemes. An initial pilot phase of two years would ensure that member states avoid losing much-needed funds while getting acquainted with the new instruments. Indicative examples of eco-schemes include practices like precision farming, agroforestry, and organic farming, but member states would be free to design their own instruments on the basis of their needs.
All farmers would be bound to higher environmental standards; even the smaller ones. To help them in this greening transition, small farmers would be subject to more simplified controls, reducing administrative burden while assuring their contribution to environmental and climate goals.

The Council’s position is a result of negotiations and work conducted over the last two and a half years and under five presidencies.
The European Commission presented the post-2020 CAP reform package in 2018; the package consists of three proposals:

a regulation on CAP strategic plans
a regulation on financing, managing and monitoring of the CAP
a regulation on a common market organisation of agricultural products

Compliments of the Council of the European Union.
The post Council of the EU agrees its position on the next EU common agricultural policy first appeared on European American Chamber of Commerce New York [EACCNY] | Your Partner for Transatlantic Business Resources.

The European Commission issued a €17 billion inaugural social bond under the EU SURE instrument to help protect jobs and keep people in work. The issuing consisted of two bonds, with €10 billion due for repayment in October 2030 and €7 billion due for repayment in 2040. There was very strong investor interest in this highly rated instrument, and the bonds were more than 13 times oversubscribed, resulting in favourable pricing terms for both bonds.
President of the European Commission Ursula von der Leyen said: “For the first time in history, the Commission is issuing social bonds on the market, to raise money that will help keep people in jobs. This unprecedented step matches the extraordinary times we are living in. We are sparing no efforts to safeguard livelihoods in Europe. I’m glad that countries hit badly by the crisis will receive support under SURE rapidly.”
European Commissioner Johannes Hahn in charge of Budget and Administration said: “With this operation, the European Commission has made a first step towards entering the major league in global debt capital markets. The strong investor interest and the favourable conditions under which the bond was placed are further proof of the great interest in EU bonds. The “social bond” character of the issuance has helped to attract investors who wish to help EU Member States in supporting employment through these difficult times.”
Both bonds were issued on attractive terms, reflecting the high level of interest. The 10-year bond was priced at 3 basis points above mid-swaps. The 20-year bond was priced at 14 basis points over mid-swaps. The final new issue premiums have been estimated at 1 bps and 2 bps for the 10-year and 20-year tranches respectively, both values being extremely limited given the amounts printed.
These represent attractive pricing conditions for the Commission’s largest ever bond issuance and a favourable debut for the SURE programme. The terms on which the Commission borrows are passed on directly to the Member States receiving the loans. (See here for more details on the pricing of the transaction).
The banks that supported the European Commission with this transaction (“joint bookrunners”) were Barclays (IRL), BNP Paribas, Deutsche Bank, Nomura and UniCredit.
The funds raised will be transferred to the beneficiary Member States in the form of loans to help them cover the costs directly related to the financing of national short-time work schemes and similar measures as a response to the pandemic.
In that context, the Commission announced earlier this month that it would issue the entire EU SURE bond of up to €100 billion as social bonds, and adopted an independently evaluated Social Bond Framework.
Background on SURE
So far, 17 Member States will receive financial support under the SURE instrument to help protect jobs and keep people in work. Financial support will be provided in the form of loans granted on favourable terms from the EU to Member States.
These loans will help Member States to cover the costs directly related to the financing of national short-time work schemes, and other similar measures they have put in place as a response to the pandemic, in particular for the self-employed. SURE could also finance some health-related measures, in particular at the work place, used to ensure a safe return to normal economic activity.
Member States can still submit formal requests for support under SURE, which has an overall firepower of up to €100 billion to help protect jobs and workers affected by the pandemic. The Commission has already proposed a total of €87.8 billion in financial support under SURE to 17 Member States.
Background on the EU borrowing

The EU was established by the Treaty of Rome in 1957 and is 0% risk weighed as an issuer (Basel III). The EU’s borrowings are direct and unconditional obligations of the EU, guaranteed by the EU Member States through the EU budget. The European Commission is empowered by the EU Treaty to borrow on the international capital markets, on behalf of the European Union.
The EU borrows exclusively in Euros for on-lending in Euros to sovereign borrowers. The EU currently operates four loan programmes: The European Financial Stabilisation Mechanism (“EFSM”), the Balance of Payments facility (“BoP”), the Macro-Financial Assistance (“MFA”) and the Support to mitigate Unemployment Risk in an Emergency (SURE), recently adopted by the Council on 19 May 2020.
The bonds issued by the EU under SURE will benefit from a social bond label.

Further details on the issuance:

Ahead of the transaction, the EU sent a Request for Proposal (RfP) to 20 banks on 9 October 2020 informing them of its intention to raise significant amounts in the market.
The formal mandate for a dual tranche issue was announced on Monday, 19 October at 13:25 CET.
Books were opened on Tuesday, 20 October 2020 in the morning at 08:55 CET and closed at 10:00 CET.

Compliments of the European Commission.
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