EACC

Coronavirus: EU interoperability gateway goes live, first contact tracing and warning apps linked to the system

To exploit the full potential of contact tracing and warning apps to break the chain of coronavirus infections across borders and save lives, the Commission, at the invitation by EU Member States, has set up an EU-wide system to ensure interoperability – a so-called ‘gateway’. After a successful pilot phase, the system goes live today with the first wave of national apps now linked through this service: Germany’s Corona-Warn-App, Ireland’s COVID tracker, and Italy’s immuni. Together, these apps have been downloaded by around 30 million people, which corresponds to two-thirds of all app downloads in the EU.
Thierry Breton, Commissioner for Single Market, said: “Many Member States have launched voluntary contact tracing and warning apps, and the Commission has supported them in make these apps safely interact with each other. Free movement is an integral part of the Single Market – the gateway is facilitating this while helping save lives.”
Stella Kyriakides, Commissioner for Health and Food Safety, added: “Coronavirus tracing and warning apps can effectively complement other measures like increased testing and manual contact tracing. With cases on the rise again, they can play an important role to help us break the transmission chains. When working across borders these apps are even more powerful tools. Our gateway system going live today is an important step in our work, and I would call on citizens to make use of such apps, to help protecting each other.”
Jens Spahn, Germany’s Federal Minister of Health, said: “Everywhere in Europe, infections are on the rise again. Right now, national warning apps are making a real difference. Because every infection chain that, thanks to an app, is broken more quickly helps to contain the pandemic. With the new gateway service, we are connecting apps across Europe. Like this, contacts can also be warned during or following a trip abroad.”
In the fight against coronavirus, most Member States have decided to launch a contact tracing and warning app. In total, 20 apps which are based on decentralised systems can be interoperable through the gateway service. They can be linked to the gateway after following a protocol that foresees several tests and checks, and an update has to be issued for each app. The second group of apps will be linked next week. Then, Czechia’s eRouška, Denmark’s smitte stop, Latvia’s Apturi COVID and Spain’s Radar Covid are expected to join, while further apps will be linked to the system in November. The overview of participating Member States is available on a dedicated webpage.
The gateway ensures that apps work seamlessly cross-borders. Thus, users will only need to install one app and when they travel to another participating European country they will still benefit from contact tracing and receiving alerts, be it in their home country or abroad. The gateway server keeps the amount of data exchanged to a minimum. It will efficiently receive and pass on arbitrary identifiers between national apps. No other information than arbitrary keys, generated by the apps, will be handled by the gateway: the information is pseudonymised, encrypted, kept to the minimium, and only stored as long as necessary to trace back infections. It does not allow the identification of individual persons, nor to track location or movement of devices.
The setup of the gateway follows the agreement by Member States on technical specifications to ensure a safe exchange of information between the backend servers of national contact tracing and warning apps based on a decentralised architecture. The system was developed and set up in less than two months by T-Systems and SAP, and will be operated from the Commission’s data centre in Luxembourg.
Background
Contact tracing apps, if fully compliant with EU rules and well-coordinated, can play a key role in all phases of crisis management. They can complement existing manual contact tracing and help interrupt the transmission chain of the virus. Thereby, they can contribute to saving lives.
Since the outbreak of the coronavirus pandemic, Member States, backed by the Commission, have been assessing the effectiveness, security, privacy, and data protection aspects of digital solutions to address the crisis. They have developed an EU toolbox for contact tracing and warning apps, which was accompanied by guidance on data protection. This was part of a common coordinated approach to support the gradual lifting of confinement measures, as set out in a Commission Recommendation. To ensure tracing and warning apps work cross-border, Member States, with the support of the Commission agreed on interoperability guidelines in May, on a set of technical specifications in June, and the Commission adopted an Implementing Decision to provide a legal basis for the gateway service. In September, the system was tested in a pilot phase.
Compliments of the European Commission
The post Coronavirus: EU interoperability gateway goes live, first contact tracing and warning apps linked to the system first appeared on European American Chamber of Commerce New York [EACCNY] | Your Partner for Transatlantic Business Resources.

EACC

2021 EU Commission work programme – from strategy to delivery

Today, the Commission adopted its 2021 work programme, designed to make Europe healthier, fairer and more prosperous, while accelerating its long-term transformation into a greener economy, fit for the digital age. It contains new legislative initiatives across all six headline ambitions of President von der Leyen’s Political Guidelines and follows her first State of the Union Speech. While delivering on the priorities set out in this work programme, the Commission will continue to put all its efforts into managing the crisis, and into making Europe’s economies and societies more resilient.
Ursula von der Leyen, President of the European Commission, said: “Our utmost priority will continue being to save lives and livelihoods threatened by the coronavirus pandemic. We have already achieved a lot. But Europe is not out of the woods yet and the second wave is hitting hard across Europe. We must remain vigilant and step up, all of us. The European Commission will continue its efforts to secure a future vaccine for Europeans and to help our economies recover, through the green and digital transition.”
Maroš Šefčovič, Vice-President in charge of Interinstitutional Relations and Foresight, said: “Whilst ensuring Europe can manage the pandemic and its devastating impact, we also continue to draw lessons from the crisis. Therefore, the priorities set out in this work programme will not only help deliver Europe’s recovery but also our long-term resilience – through future-proof solutions across all policy areas. For that, we will make the best use of strategic foresight as well as our better law-making principles – evidence-based and transparent, efficient and fit for the future.”
Delivering on EU priorities
The 2021 Commission work programme sees a shift from strategy to delivery across all six political priorities. It confirms the Commission’s resolve to lead the twin green and digital transition – an unparalleled opportunity to move out of the fragility of the crisis and create a new vitality for the Union.

A European Green Deal

To achieve a climate-neutral Europe by 2050, the Commission will table a Fit for 55 package to reduce emissions by at least 55% by 2030. This will cover wide-ranging policy areas – from renewables to energy efficiency first, energy performance of buildings, as well as land use, energy taxation, effort sharing and emissions trading. A Carbon Border Adjustment Mechanism will help reduce the risk of carbon leakage and ensure a level-playing field by encouraging EU partners to raise their climate ambition. In addition, the Commission will propose measures to implement Europe’s circular economy action plan, the EU biodiversity strategy and the farm to fork strategy.

A Europe fit for the digital age

To make this Europe’s digital decade, the Commission will put forward a roadmap of clearly defined 2030 digital targets, related to connectivity, skills and digital public services. The focus will be on the right to privacy and connectivity, freedom of speech, free flow of data and cybersecurity. The Commission will legislate in areas covering safety, liability, fundamental rights and data aspects of artificial intelligence. In the same spirit, it will propose a European e-ID. Initiatives will also include an update of the new industrial strategy for Europe, to take into account the impacts of the coronavirus, as well as a legislative proposal to improve the working conditions of platform workers.

An economy that works for people

To ensure that the health and economic crisis does not turn into a social crisis, the Commission will put forward an ambitious action plan to implement fully the European Pillar of Social Rights, making sure that no one is left behind in Europe’s recovery. The Commission will also come forward with a new European child guarantee, ensuring access to basic services like health and education for all children. To support our economies and strengthen the Economic and Monetary Union, it will revise the framework for handling EU bank failures, take measures to boost cross-border investment in the EU, and step up the fight against money laundering.

A stronger Europe in the world

The Commission will ensure that Europe plays its vital role in this fragile world, including by leading the global response to secure a safe and accessible vaccine for all. It will propose a Joint Communication on strengthening the EU’s contribution to a rules‑based multilateralism, a renewed partnership with our Southern neighbourhood and a Communication on the Arctic. A new strategic approach to support disarmament, demobilisation and reintegration of ex-combatants will also be presented. A Communication on the EU’s humanitarian aid will explore new ways of working with our partners and other donors.

Promoting our European way of life

In the face of COVID-19, the Commission will propose to build a stronger European Health Union, notably by strengthening the role of existing agencies and establishing a new agency for biomedical advanced research and development. To preserve and improve its functioning, a new strategy for the future of Schengen will be tabled. The new pact on migration and asylum will be followed up with a number of proposed measures on legal migration, including a ‘talent and skills’ package. Other elements include an action plan against migrant smuggling, as well as a sustainable voluntary return and reintegration strategy. The Commission will continue to strengthen the Security Union, addressing terrorism, organised crime and hybrid threats. It will also present a comprehensive strategy on combating antisemitism.

A new push for European democracy

To build a union of equality, the Commission will present new strategies on rights of the child and for persons with disabilities, as well as a proposal to combat gender-based violence. It will also propose to extend the list of euro-crimes to include all forms of hate crime and hate speech. The Commission will propose clearer rules on the financing of European political parties and take action to protect journalists and civil society against abusive litigation. A long-term vision for rural areas will propose actions to harness the full potential of these regions.
Given the long-term and transformative nature of the initiatives planned, it is more important than ever to legislate in the most impactful way and with the future in mind. The upcoming Communication on Better Regulation will renew this emphasis. It will focus on simplification and burden reduction, notably by introducing a ‘one-in-one-out’ approach. The Fit for Future Platform will support the Commission in this ambition, particularly needed in the aftermath of the COVID-19 pandemic. To deliver on the ground, the Commission will also step up its outreach, with the Conference on the Future of Europe playing a central role.
A full list of the 44 new policy objectives under the six headline ambitions are set out in Annex 1 of the 2021 work programme.
Next Steps
The Commission’s 2021 work programme is the result of close cooperation with the European Parliament, Member States and the EU consultative bodies. The Commission will now start discussions with the Parliament and Council to establish a list of joint priorities on which co-legislators agree to take swift action.
Background
Every year, the Commission adopts a work programme setting out the list of actions it will take in the coming twelve months. The work programme informs the public and the co-legislators of our political commitments to present new initiatives, withdraw pending proposals and review existing EU legislation. It does not cover the ongoing work of the Commission to implement its role as Guardian of the Treaties and enforce existing legislation or the regular initiatives that the Commission adopts every year.
The 2021 Commission work programme is closely linked to the recovery plan for Europe, with the NextGenerationEU recovery instrument and a reinforced EU budget for 2021-2027. The Recovery and Resilience Facility will channel an unprecedented €672.5 billion of grants and loans in the crucial first year of recovery. Meanwhile, Member States are drawing up recovery and resilience plans that set out reforms and investments aligned with the EU green and digital policy objectives: with a minimum 37% of green transition expenditure, and a minimum 20% related to digital. To repay the funds raised under NextGenerationEU, the Commission will put forward proposals for new own resources starting with a revised Emission Trading System, a Carbon Border Adjustment Mechanism and a digital levy.
Compliments of the European Commission
The post 2021 EU Commission work programme – from strategy to delivery first appeared on European American Chamber of Commerce New York [EACCNY] | Your Partner for Transatlantic Business Resources.

EACC

EU at the 2020 Annual Meetings of the IMF and the World Bank

Several senior EU representatives are participating to the 2020 edition of the Annual Meetings of the World Bank and the International Monetary Fund (October 5-23), which are held virtually due to the COVID-19 pandemic.
European Commission Executive Vice President Valdis Dombrovskis speaks at two high-level climate and sustainable finance events. On October 12, he joined the Fourth Ministerial-Level Meeting Coalition of Finance Ministers for Climate Action. He will also speak alongside IMF Managing Director Kristalina Georgieva and other counterparts at the event celebrating the first anniversary of the International Platform for Sustainable Finance (IPSF) on October 16 (event livestreamed by the IMF at 10am ET here(link is external)). The IPSF works towards improved transparency in global markets for sustainable finance to unlock financial resources for a green recovery from the Covid-19 crisis.
Executive Vice-President Dombrovskis will also participate in the Institute of International Finance (IIF) Annual Membership meeting and represent the EU at the International Monetary and Financial Committee plenary (IMFC) on October 15.
The European Commissioner for International Partnerships, Jutta Urpilainen, participated in a High-level Ministerial Meeting on Sahel, Economic Challenges from the security crisis in the Sahel on October 8, a High-Level discussion on Mobilizing with Africa II on October 9, and a meeting on Governance of COVID-19 Emergency Financing on October 12. She will also participate to the Development Committee Meeting on October 16 and to a discussion on a Resilient Recovery from COVID-19 in Fragile Settings on October 19. The Commissioner will promote a global recovery that links debt relief and investment to SDGs and the Paris Agreement.
The European Commissioner for the Economy, Paolo Gentiloni, participates in the G20 Finance Ministers and Central Bank Governors meeting on October 15. In addition, Commissioner Gentiloni will speak at a panel discussion on fiscal policy in Europe and the United States hosted by UBS and the Reinventing Bretton Woods Committee, also on October 15.
The European Commissioner for Budget and Administration, Johannes Hahn, will be speaking at an event, together with Managing Director of the European Stability Mechanism (ESM) Klaus Regling, and European Investment Bank (EIB) Vice-President Ambroise Fayolle, organized by DZ Bank and the Official Monetary and Financial Institutions Forum on Europe’s sustainable recovery on October 15.
The European Commission Directorate-General for International Cooperation and Development (DEVCO) organized a discussion on Sustainable Transformation of Societies: A Green Consensus for Macro-Fiscal Policies on October 9, which featured Environment Commissioner Virginijus Sinkevičius and aimed to galvanize support for a new consensus within the Bretton Woods institutions and to advise partner countries to pursue an equitable, resilient, green and sustainable recovery.
Finally, EIB President Werner Hoyer and Vice-Presidents Ambroise Fayolle and Lilyana Pavlova will lead the EU Bank’s delegation at the Annual Meetings. EIB leadership and experts will discuss how to best respond to the COVID-19 pandemic worldwide, while supporting a green recovery. They will highlight the importance of multilateralism as a response to global challenges, including gender equality and women’s economic empowerment. Learn more on the EIB’s participation here.
Compliments of the Delegation of the European Union to the United States.
The post EU at the 2020 Annual Meetings of the IMF and the World Bank first appeared on European American Chamber of Commerce New York [EACCNY] | Your Partner for Transatlantic Business Resources.

EACC

IMF | A Leap Forward on Cross-Border Payments

When paying for coffee, we swipe, tap, wave, and soon may wink—a quick and painless exchange of coffee for money. But when paying for imports or sending remittances, we often fill-out forms, wait for days, and pay—too much.
Progress to improve cross-border payments has been slow, but is just about to take off. That is how history evolves—one small step at a time, until it suddenly leaps forward. The confluence of new technologies and renewed determination among policymakers are making significant improvements possible. Meanwhile, households and firms have come to expect (and demand) better services.
Reforms have the potential to be transformative by making cross-border payments cheaper, faster, more transparent, and more widely accessible.
The stakes are high. Changes to cross-border payments have a bearing on the stability of the international monetary system, on financial inclusion, and on the efficiency of trade and financial markets. And reforms may unlock innovation and much needed growth, particularly following the COVID-19 crisis. But a leap forward will only be possible if the world works together.
And it has—in an exceptional manner. A roadmap to decisively enhance cross-border payments, led by the Financial Stability Board along with a wide set of institutions including the IMF, has just been endorsed by the G20. This is not simply one more report, but a set of concrete reforms, practical steps, and milestones that specific institutions will be held accountable to implement. Meanwhile, the IMF just published a staff paper on the macro-financial implications of new forms of digital money available across borders. Together, these papers provide a clear path forward, mindful of the challenges that lie ahead. If implemented, reforms have the potential to be transformative by making cross-border payments cheaper, faster, more transparent, and more widely accessible.
The next step
While international cooperation has gotten us this far, it will be all the more important to implement, and potentially even surpass, the G20 roadmap. Specifically, we need cooperation in four broad areas to ensure improvements to cross-border payments are effective, sustainable, safe, and equitable.
First, solutions to cross-border payments must be designed and pursued with all countries in mind. Countries differ considerably in implementation capacity, existing infrastructure, and financial sector development. And with different countries come different users. These cover large companies operating in less liquid markets, cost-conscious small- and medium-sized enterprises, and the 1 billion people sending and receiving remittances (which at an average cost of 7 percent are still double the target set by United Nations’ Development Goals).
The G20 roadmap is appropriately flexible given this diversity of needs. Some solutions involve improvements to existing systems, such as devising trustworthy digital identities essential for financial inclusion. Others are more exploratory and consider a world in which we can freely trade digital currencies across borders, much like we send emails today. It is essential that all these solutions continue to be pursued, discussed, tested, and some discarded—with an open mind.
Second, cooperation is essential to overcome countries’ “inaction bias,” and ensure solutions are widely applicable. A simple example is the operating hours of countries’ settlement systems: only when two countries extend hours so they overlap can cross-border transactions be settled in real time. No country will want to act alone. Even then, the two systems must talk to each other. But interoperability is not a given. It requires basic technological, design, legal, and regulatory standards. Cooperation will ensure these satisfy the needs of a wide community, which the IMF can help congregate.
Third, cooperation is critical to build solutions that benefit from the experience and perspective of all relevant actors—such as central banks, regulators, finance ministries, anti-trust agencies, data protection agencies, and international organizations. The Financial Stability Board report was exemplary in this respect. Moreover, the public and private sectors must cooperate, recognizing each other’s strengths: private companies to innovate and interact with users, and the public sector to regulate, supervise, and ultimately provide trust to the system. Where possible, public-private solutions should be explored.
Lastly, cooperation means recognizing the macro-financial effects that one country’s policies can have on others. For instance, new forms of digital money issued in major reserve currencies could improve domestic as well as cross-border payments. But they could also induce citizens abroad to forego their domestic currency, especially in countries with high inflation and volatile exchange rates. And digital money could potentially facilitate bank runs out of these countries. Meanwhile, source countries could see more volatile capital inflows and central bank balance sheets. Moreover, it is unclear if capital account restrictions, which many countries adopt, can be redesigned so they are not circumvented by digital money. Finally, the use of digital money could raise significant risks to financial integrity. These and other scenarios are detailed in our new paper.
Global links
Monetary policy, financial stability, capital flows, international reserves—all could be affected by transformations in cross-border payments, with implications for the international monetary system. The IMF’s founding members understood this link, which to some extent lies behind the vision to “assist in the establishment of a multilateral system of payments,” as stated in the Articles of Agreement.
Today, the IMF continues to play an active role in this space, working hand-in-hand with other international organizations. Our near-universal membership can help ensure that the digital revolution benefits people in all countries. And our global perspective can help recognize spillover effects, as well as provide a common forum to address the underlying policy dilemmas. Let’s engage on this promising path together.
Authors:

Tobias Adrian, the Financial Counsellor and Director of the IMF’s Monetary and Capital Markets Department

Kristalina Georgieva, Managing Director of the IMF

Compliments of the IMF.
The post IMF | A Leap Forward on Cross-Border Payments first appeared on European American Chamber of Commerce New York [EACCNY] | Your Partner for Transatlantic Business Resources.

EACC

European Council conclusions on COVID-19 and climate change, 15 October 2020

I. COVID-19
1. The European Council assessed the current epidemiological situation, which is unprecedented and gives rise to very serious concern.
2. It welcomed the progress achieved so far on overall coordination at EU level against COVID‑19, including the recommendation on a coordinated approach to the restriction of free movement. It calls on the Council, the Commission and the Member States to continue the overall coordination effort based on the best available science, notably regarding quarantine regulations, cross-border contact tracing, testing strategies, the joint assessment of testing methods, the mutual recognition of tests, and the temporary restriction on non-essential travel into the EU. The European Council will regularly revert to this matter.
3. Welcoming the work at EU level on the development and distribution of vaccines, the European Council reiterates the need for a robust authorisation and monitoring process, the building of vaccination capacity in the EU, and fair and affordable access to vaccines. The European Council also encourages further cooperation at global level.
II. EU-UK relations

European Council conclusions on EU-UK relations, 15 October 2020

III. Climate change
10. To meet the objective of a climate-neutral EU by 2050 in line with the objectives of the Paris Agreement, the EU needs to increase its ambition for the coming decade and update its climate and energy policy framework. In that context, the European Council discussed the Commissionʼs Communication on ‘Stepping up Europeʼs 2030 climate ambition’, including the proposed emissions reduction target of at least 55% by 2030, and the actions required to achieve that ambition.
11. Recalling its previous conclusions, the European Council considers that the updated target should be delivered collectively by the EU in the most cost-effective manner possible. All Member States will participate in this effort, taking into account national circumstances and considerations of fairness and solidarity. All relevant EU legislation and policies need to contribute to the new 2030 target and to the fulfilment of the climate neutrality objective, while respecting a level playing field and preventing carbon leakage.
12. The European Council invites the Council to take work on this agenda forward. It invites the Commission to conduct in-depth consultations with Member States to assess the specific situations and to provide more information about the impact at Member Statesʼ level. The European Council will return to the issue at its December meeting with a view to agreeing a new emissions reduction target for 2030 and the submission of the EUʼs updated nationally determined contribution (NDC) to the UNFCCC before the end of the year.
13. The European Council calls upon all other Parties to also submit an updated NDC. It underlines the importance of strong coordinated action through active European climate diplomacy, with a view to joining forces on the global stage to further advance the cause of fighting climate change.
Compliments of the European Council.
The post European Council conclusions on COVID-19 and climate change, 15 October 2020 first appeared on European American Chamber of Commerce New York [EACCNY] | Your Partner for Transatlantic Business Resources.

EACC

Remarks by President Charles Michel following the first working session of the European Council

Statements and remarks by President Charles Michel | 15 October 2020
First of all I would like to apologise for the absence of the President of the European Commission. At the beginning of the meeting she was informed that a person considered a ‘close contact’ had tested positive. She herself tested negative today. Nevertheless, in accordance with the national rules, she has decided to self-isolate.
We have had the opportunity today to hold a debate as planned on the future relationship between the European Union and the United Kingdom.
On Brexit, we are united and determined to reach an agreement. But not at any cost.
Any agreement on our future relationship would have to be based on our mandate, in particular when it comes to the level playing field, fisheries and governance.
A level playing field is critical because it ensures fair competition. For example, if the UK were to produce cars without respecting our EU standards, and with the support of massive subsidies, how could we be expected to grant them access to our markets with no tariffs and no quotas? That would be unfair and would risk hundreds of thousands of European jobs.
On those issues, we are concerned by the lack of progress at the negotiating table. We are 100 percent united. And we fully trust and support our chief negotiator, Michel Barnier, to continue negotiations. And we call on the UK to make the necessary moves.
As regards the Withdrawal Agreement and its Protocols, they must be fully implemented. Full stop. And that’s also a question of international credibility for the UK.
In parallel, we will step up our work, at all levels and for all outcomes, including that of a no deal.
You will have gathered that we have had the opportunity today not only to listen carefully to the briefing given by our chief negotiator Michel Barnier. We have also underlined the unity of the European Union in this negotiation process. We wish to do our utmost to make an agreement with the United Kingdom possible; at the same time, we will continue to defend the principles we deem important: the level playing field, the governance of the agreement and the question of fisheries are, of course, issues for which we have, from the outset, set out a series of principles and commitments of importance to us.
We are ready to continue the negotiations, and we have stated an extremely calm, equable European position – it is against this backdrop that we hope progress can be made so as to achieve clarity as soon as possible.
Compliments of the European Council.
The post Remarks by President Charles Michel following the first working session of the European Council first appeared on European American Chamber of Commerce New York [EACCNY] | Your Partner for Transatlantic Business Resources.

EACC

FSB | Market Fragmentation: updates on ongoing work

This report provides an update on work by the FSB, in collaboration with the international standard setting- bodies, to address market fragmentation. The report was delivered to G20 Finance Ministers and Central Bank Governors ahead of their meeting in October.
In June 2019, the FSB identified four areas for further work to address market fragmentation: This latest progress report provides an update on work in these areas:

Deference. The International Organization of Securities Commissions published a Report on Good Practices on Processes for Deference in June 2020 that should help authorities to mitigate the risk of unintended, regulatory-driven, fragmentation in wholesale securities and derivatives markets.

Pre-positioning of capital and liquidity. FSB members are continuing work related to the distribution of resources within global systemically important banks (G-SIB) having regard to the need to achieve a balance between certainty for host jurisdictions and flexibility to deploy resources where needed within a group in times of stress. The FSB is also working on identifying ways to further promote effective cooperation and coordination in crisis times.

Regulatory and supervisory coordination and information sharing. Regulatory and supervisory coordination and information sharing have focused on policy measures taken in response to COVID-19. The FSB has established a repository of regulatory and supervisory policy measures taken in its member jurisdictions in response to the COVID-19 pandemic. The FSB is also exploring potential ways to facilitate convergence in reporting of data to authorities.

“Too-big-to-fail” (TBTF) evaluation. The FSB has publicly consulted on its evaluation on the effects of TBTF reforms for systemically important banks. The evaluation finds no evidence that the implementation of reforms has reduced cross-border lending.

Looking beyond these specific areas, the policy response to COVID-19 has underlined policymakers’ awareness of harmful effects of market fragmentation. The official sector community has provided a rapid and coordinated response to support the real economy, maintain financial stability and minimise the risk of market fragmentation.
Compliments of the Financial Stability Board.
The post FSB | Market Fragmentation: updates on ongoing work first appeared on European American Chamber of Commerce New York [EACCNY] | Your Partner for Transatlantic Business Resources.

EACC

Coronavirus: EU Commission lists key steps for effective vaccination strategies and vaccines deployment

As Europe learns to live with the pandemic, the development and swift global deployment of safe and effective vaccines against COVID-19 remains an essential element in the eventual solution to the public health crisis. In this context, the Commission is working to ensure that there will be access to safe vaccines across Europe, and encourages a coordinated approach of vaccination strategies for deployment of the vaccines. Today, ahead of the discussion of EU Leaders, the Commission is presenting the key elements to be taken into consideration by Member States for their COVID-19 vaccination strategies in order to prepare the European Union and its citizens for when a safe and effective vaccine is available, as well as priority groups to consider for vaccination first.
President of the European Commission, Ursula von der Leyen, said: “A safe and effective vaccine is our best shot at beating coronavirus and returning to our normal lives. We have been working hard to make agreements with pharmaceutical companies and secure future doses. Now, we must ensure that once a vaccine is found, we are fully prepared to deploy it. With our Vaccination Strategy, we are helping EU countries prepare their vaccination campaigns: who should be vaccinated first, how to have a fair distribution and how to protect the most vulnerable. If we want our vaccination to be successful, we need to prepare now.”  
Vice-President for Promoting the European Way of Life, Margaritis Schinas, said: “While the evolution of the pandemic is getting back to March levels, our state of preparedness is not. Today we are adopting a milestone in the ongoing EU response to the COVID-19 pandemic; the aim is to ensure safe, affordable and accessible COVID-19 vaccines for all in the EU, once they will become available. It is only by acting together that we will avoid the cacophony and be more efficient than in the past.”
Stella Kyriakides, Commissioner for Health and Food Safety, said: “It is with great concern that I am witnessing the increasingly rapid rise of infection rates all across the EU. Time is running out – everyone’s first priority should be to do what it takes to avoid the devastating consequences of generalised lockdowns. And we must all prepare for the next steps. The vaccine will not be a silver bullet, but it will play a central role to save lives and contain the pandemic. And when and if a safe and efficient vaccine is found, we need to be prepared to roll it out as quickly as possible, including building citizens’ trust in its safety and efficacy. Vaccines will not save lives – vaccinations will.”
In line with the 17 June EU Vaccines Strategy, the European Commission and Member States are securing the production of vaccines against COVID-19 through Advance Purchase Agreements with vaccine producers in Europe. Any vaccine will need to be authorised by the European Medicine Agency according to regular safety and efficacy standards. Member States should now start preparing a common vaccination strategy for vaccine deployment.
Member States should, among others, ensure:

capacity of vaccination services to deliver COVID-19 vaccines, including skilled workforce and medical and protective equipment;
easy and affordable access to vaccines for target populations;
deployment of vaccines with different characteristics and storage and transport needs, in particular in terms of cold chain, cooled transport and storage capacity;
clear communication on the benefits, risks and importance of COVID-19 vaccines to build public trust.

All Member States will have access to COVID-19 vaccines at the same time on the basis of population size. The overall number of vaccine doses will be limited during the initial stages of deployment and before production can be ramped up. The Communication therefore provides examples of unranked priority groups to be considered by countries once COVID-19 vaccines become available, including:

healthcare and long-term care facility workers;
persons over 60 years of age;
persons whose state of health makes them particularly at risk;
essential workers;
persons who cannot socially distance;
more disadvantaged socio-economic groups.

Whilst awaiting the arrival of approved vaccines against COVID-19, and in parallel to safeguarding the continuation of other essential healthcare and public health services and programmes, the EU must continue mitigating the transmission of the virus. This can be done through the protection of vulnerable groups and ensuring that citizens adhere to public health measures. Until then and most likely also throughout the initial vaccination rollout phases, non-pharmaceutical interventions, such as physical distancing, closure of public places and adapting the work environment, [1] will continue to serve as the main public health tools to control and manage COVID-19 outbreaks.
Background
As Europe moves to the next stage of the COVID-19 pandemic, it is even more imperative that countries follow common vaccination strategies and approaches. At the Special European Council meeting of 2 October, Member States called on the Council and Commission to further step up the overall coordination effort and the work on the development and distribution of vaccines at EU level[2].
On 24 September, the European Centre for Disease Prevention and Control (ECDC) published its updated risk assessment regarding the COVID-19 pandemic, alongside a set of guidelines for non-pharmaceutical interventions (such as hand hygiene, physical distancing, cleaning and ventilation).
As stressed by President von der Leyen in the State of the Union 2020 Address, Europe needs to continue to handle the COVID-19 pandemic with extreme care, responsibility and unity, and use the lessons learnt to strengthen the EU’s crisis preparedness and management of cross-border health threats.
On 15 July, the Commission adopted a Communication on short-term EU health preparedness, calling on Member States to have prevention, preparedness and response measures ready in case of future COVID-19 outbreaks. The Communication made a set of recommendations to achieve this, in the areas of e.g. testing, contact tracing and health system capacities. The effective implementation of these measures requires coordination and effective information exchange between Member States. The recommendations provided in the Strategy are still relevant and Member States are encouraged to follow them.
One of the main action points necessary for Europe to overcome the coronavirus pandemic is accelerating the development, manufacturing, and deployment of vaccines against COVID-19. The EU’s vaccines strategy published in June charts the way forward.
Vaccine safety, quality and efficacy are the cornerstones of any vaccine development and authorisation process, and vaccine developers are required to submit extensive documentation and data to the European Medicines Agency through the EU Marketing Authorisation procedure. After authorisation, EU law requires that the safety of the vaccine as well as its effectiveness be monitored. Further evidence will need to be centrally collected to assess the impact and effectiveness of COVID-19 vaccines once rolled out in the population from a public health perspective. This will be key to overcoming the pandemic and instilling confidence in Europeans.
Compliments of the European Commission.
The post Coronavirus: EU Commission lists key steps for effective vaccination strategies and vaccines deployment first appeared on European American Chamber of Commerce New York [EACCNY] | Your Partner for Transatlantic Business Resources.

Read More
EACC

IMF | Fiscal Policy for an Unprecedented Crisis

The COVID-19 crisis has devastated people’s lives, jobs, and businesses. Governments have taken forceful measures to cushion the blow, totaling a staggering $12 trillion globally. These lifelines have saved lives and livelihoods. But they are costly and, together with sharp falls in tax revenues owing to the recession, they have pushed global public debt to an all-time high of close to 100 percent of GDP.
With many workers still unemployed, small businesses struggling, and 80‑90 million people likely to fall into extreme poverty in 2020 as a result of the pandemic—even after additional social assistance—it is too early for governments to remove the exceptional support. Yet many countries will need to do more with less, given increasingly tight budget constraints.

“Many countries will need to do more with less, given increasingly tight budget constraints.”

The October 2020 Fiscal Monitor examines countries’ experiences managing the crisis and discusses what governments can do in the different phases of the pandemic to save lives, reduce the impact of the recession, and revive growth and job creation.
Policies during the lockdown phase
Since the start of the COVID-19 crisis, governments have focused on doing whatever it takes to limit its consequences. The massive fiscal support provided since the start of the COVID-19 crisis has succeeded in protecting people and preserving jobs.
Public health measures that have contained the spread of the virus—such as large-scale testing, tracing, and public information campaigns—have helped restore confidence and created the conditions for the safe reopening of businesses.
Unemployment benefits and wages subsidies (as in most European economies) have helped preserve jobs or living standards. Cash transfers have been especially useful to support the poor and informal workers and self-employed who lost jobs. Liquidity support to firms have prevented a wave of defaults and mass layoffs. This is especially important for small-and medium-sized firms that represent a large share of employment.
Although the global fiscal response to the crisis has been unprecedented, responses by individual countries have been shaped by their access to borrowing as well as their public and private debt levels heading into the crisis.

In advanced economies and some emerging market economies, central bank purchases of government debt have helped keep interest rates at historic lows and supported government borrowing. In these economies, the fiscal response to the crisis has been massive.
In many highly indebted emerging market and low-income economies, however, governments have had limited space to increase borrowing, which has hampered their ability to scale up support to those most affected by the crisis. These governments face tough choices.

A fiscal roadmap for the recovery
As economies tentatively reopen, but uncertainty about the course of the pandemic remains, governments should ensure that fiscal support is not withdrawn too rapidly. However, it should become more selective and avoid standing in the way of necessary sectoral reallocations as activity resumes. Support should shift gradually from protecting old jobs to getting people back to work—for example, by reducing job retention programs (wage subsidies), reintroducing job search requirements, and training new skills—and helping viable but still-vulnerable firms safely reopen. With low interest rates and high unemployment, boosting public investment—starting with maintenance and ramping up projects—can create jobs and spur economic growth.
Emerging market and low-income economies facing tight financing constraints will need to deliver more with less, by reprioritizing spending and enhancing its efficiency. Some may need further official financial support and debt relief.
Governments should also adopt measures to improve tax compliance and consider higher taxes for the more affluent groups and highly profitable firms. The ensuing revenues would help pay for critical services, such as health and social safety nets, during a crisis that has disproportionately hurt the poorer segments of society.
Once the pandemic is under control, governments will need to foster the recovery while addressing the legacies of the crisis—including the large fiscal deficits and high public debt levels.

Countries with fiscal space and major scarring from the crisis, such as large long-term unemployment, should provide temporary fiscal stimulus while planning for an adjustment over the medium term.

Countries with high debt levels and less access to financing will also need to adjust over the medium term, striving to protect public investment and transfers to lower-income households.

The post-pandemic reset
Looking ahead, countries will need to make it a priority to invest in healthcare systems and education. They should also strengthen social safety nets to ensure that all people have access to food and other basic goods and services.
As economies begin to recover, governments should seize this moment to move away from the pre-crisis growth model and accelerate the transition to a low-carbon and digital economy. Carbon pricing should be a key feature of this transition, because it encourages people to reduce energy use and shift to cleaner alternatives—and, moreover, it generates revenue that can be used in part to support the most vulnerable.
As governments ramp up their public investment and other fiscal measures to foster the recovery, their policy choices will have long-lasting effects. They should make a decisive push to make economies more inclusive and resilient, and to curb global warming through green measures that also boost growth and employment.
Authors:

Vitor Gaspar, Paulo Medas, John Ralyea, and Elif Ture

Compliments of the IMF.
The post IMF | Fiscal Policy for an Unprecedented Crisis first appeared on European American Chamber of Commerce New York [EACCNY] | Your Partner for Transatlantic Business Resources.

EACC

Green Deal: EU Commission adopts new Chemicals Strategy towards a toxic-free environment

Today, the European Commission adopted the EU Chemicals Strategy for Sustainability. The Strategy is the first step towards a zero pollution ambition for a toxic-free environment announced in the European Green Deal. The Strategy will boost innovation for safe and sustainable chemicals, and increase protection of human health and the environment against hazardous chemicals. This includes prohibiting the use of the most harmful chemicals in consumer products such as toys, childcare articles, cosmetics, detergents, food contact materials and textiles, unless proven essential for society, and ensuring that all chemicals are used more safely and sustainably.
Chemicals Strategy fully recognises the fundamental role of chemicals for human well-being and for the green and digital transition of European economy and society. At the same time it acknowledges the urgent need to address the health and environmental challenges caused by the most harmful chemicals. In this spirit, the Strategy sets out concrete actions to make chemicals safe and sustainable by design and to ensure that chemicals can deliver all their benefits without harming the planet and current and future generations. This includes ensuring that the most harmful chemicals for human health and the environment are avoided for non-essential societal use, in particular in consumer products and with regard to most vulnerable groups, but also that all chemicals are used more safely and sustainably. Several innovation and investment actions will be foreseen to accompany the chemicals industry through this transition. The Strategy also draws the attention of Member States to the possibilities of the Recovery and Resilience Facility to invest in the green and digital transition of EU industries, including in the chemical sector. 
Increasing protection of health and the environment
The Strategy aims to significantly increase the protection of human health and the environment from harmful chemicals, paying particular attention to vulnerable population groups. Flagship initiatives include in particular:

Phasing out from consumer products, such as toys, childcare articles, cosmetics, detergents, food contact materials and textiles, the most harmful substances, which include among others endocrine disruptors, chemicals that affect the immune and respiratory systems, and persistent substances such as per- and polyfluoroalkyl substances (PFAS), unless their use is proven essential for society;
Minimising and substituting as far possible the presence of substances of concern in all products. Priority will be given to those product categories that affect vulnerable populations and those with the highest potential for circular economy;
Addressing the combination effect of chemicals (cocktail effect) by taking better account of the risk that is posed to human health and the environment by daily exposure to a wide mix of chemicals from different sources;
Ensuring that producers and consumers have access to information on chemical content and safe use, by introducing information requirements in the context of the Sustainable Product Policy Initiative.

Boosting innovation and promoting EU’s competitiveness
Making chemicals safer and more sustainable is a continued necessity as well as a great economic opportunity. The Strategy aims to capture this opportunity and enable the green transition of the chemicals sector and its value chains. As far as possible, new chemicals and materials must be safe and sustainable by design i.e. from production to end of life. This will help avoid the most harmful effects of chemicals and ensure the lowest possible impact on climate, resource use, ecosystems and biodiversity. The Strategy envisages the EU industry as a globally competitive player in the production and use of safe and sustainable chemicals. The actions announced in the Strategy will support industrial innovation so that such chemicals become the norm on the EU market and a benchmark worldwide. This will be done mainly by:

Developing safe-and-sustainable-by-design criteria and ensuring financial support for the commercialisation and uptake of safe and sustainable chemicals;
Ensuring the development and uptake of safe and sustainable-by-design substances, materials and products through EU funding and investment instruments and public-private partnerships;
Considerably stepping up enforcement of EU rules both at the borders and in the single market;
Putting in place an EU research and innovation agenda for chemicals, to fill knowledge gaps on the impact of chemicals, promote innovation and move away from animal testing;
Simplifying and consolidating the EU legal framework – e.g. by introducing the ‘One substance one assessment’ process, strengthening the principles of ‘no data, no market’ and introducing targeted amendments to REACH and sectorial legislation, to name a few.

The Commission will also promote safety and sustainability standards globally, in particular by leading by example and promoting a coherent approach aiming that hazardous substances that are banned in the EU are not produced for exports.
Executive Vice-President for the European Green Deal Frans Timmermans said: “The Chemicals Strategy is the first step towards Europe’s zero pollution ambition. Chemicals are part and parcel of our daily life, and they allow us to develop innovative solutions for greening our economy. But we need to make sure that chemicals are produced and used in a way that does not hurt human health and the environment. It is especially important to stop using the most harmful chemicals in consumer products, from toys and childcare products to textiles and materials that come in contact with our food”.
Commissioner for the Environment, Oceans and Fisheries Virginijus Sinkevicius said: “We owe our well-being and high living standards to the many useful chemicals that people have invented over the past 100 years. However, we cannot close our eyes to the harm that hazardous chemicals pose to our environment and health. We have come a long way regulating chemicals in the EU, and with this Strategy we want to build on our achievements and go further to prevent the most dangerous chemicals from entering into the environment and our bodies, and affecting especially the most fragile and vulnerable ones.”
Commissioner for Health and Food Safety Stella Kyriakides said: “Our health should always come first. That is exactly what we have ensured in a Commission flagship initiative such as the Chemical Strategy. Chemicals are essential for our society and they must be safe and sustainably produced. But we need to be protected from the harmful chemicals around us. This Strategy shows our high level of commitment and our determination to protect the health of citizens, across the EU.”
Background
In 2018, Europe was the second biggest producer of chemicals (accounting for 16.9% of sales). Chemical manufacturing is the fourth largest industry in the EU, directly employing approximately 1.2 million people. 59% of chemicals produced are directly supplied to other sectors, incl. health, construction, automotive, electronics, and textiles. Global chemicals production is expected to double by 2030, and the already widespread use of chemicals is likely to also increase, including in consumer products.
The EU has a sophisticated chemicals legislation, which has generated the most advanced knowledge base on chemicals in the world and set up scientific bodies to carry out the risk and hazard assessments of chemicals. The EU has also managed to reduce the risks to people and the environment for certain hazardous chemicals like carcinogens.
Yet, EU’s chemicals policy needs to be further strengthened to take into account the latest scientific knowledge and citizens concerns. Many chemicals can harm the environment and human health, including future generations. They can interfere with ecosystems and weaken human resilience and capacity to respond to vaccines. Human biomonitoring studies in the EU point to a growing number of different hazardous chemicals in human blood and body tissue, including certain pesticides, biocides, pharmaceuticals, heavy metals, plasticisers and flame retardants. Combined prenatal exposure to several chemicals has led to reduced foetal growth and lower birth rates.
Compliments of the European Commission.
The post Green Deal: EU Commission adopts new Chemicals Strategy towards a toxic-free environment first appeared on European American Chamber of Commerce New York [EACCNY] | Your Partner for Transatlantic Business Resources.