Statement | 2 October 2020 | By Executive Vice President Valdis Dombrovskis, Commissioner-Designate for Trade
Honourable Chairman, Esteemed Members of the European Parliament,
I was honoured when President von der Leyen placed her trust in me to continue to lead our shared European trade agenda. I hope that at the end of this hearing, you too will feel satisfied that you can place your trust in me. Honourable members, you already know me. I have worked with this house on many occasions. If approved, I will have a busy and challenging range of responsibilities, but we have a saying in Latvia: the ready back gets the load. As a former MEP, I understand that this committee has to be fully involved in our trade policymaking. I look forward to working closely together with you.] As Executive Vice-President of the Commission, my job is to build an economy that works for people. Trade is a powerful positive force in this respect. It supports 1 in 7 high-quality European jobs. Of course, in today’s world, trade is about much more than just trade. European trade policy must do more to help us meet the great challenges of our time. This is why we are conducting a wide review of our trade policy.
Working with you, honourable members, And with our stakeholders and civil society, I will bring forward a new roadmap for our trade policy. This roadmap must fit into our wider plan for a sustainable and digital recovery. It must be modern and up-to-date, in support of our values and wider geopolitical goals. It must maximise opportunities for our companies around the world. It must strengthen our toolbox to defend ourselves from unfair practices. It must leverage our strength as the world’s trading powerhouse. And it must unlock doors of influence globally. Only a Europe that is open to the world can shape the trade policy for the 21st century.
So, I propose to drive our trade policy forward, in order to:

reform the rules-based multilateral order;
rethink trade policy to deliver on our sustainability goals;
reinforce free and fair trade, by engaging with our partners while at the same time, strengthening our defence and enforcement; and finally,
redouble our leadership in trade by managing our key relationships.

Ladies and Gentlemen,
One of my first priorities will be to reform the rules-based system of global economic governance. We need to make it fit for today’s world. This means a WTO that settles disputes quickly and efficiently, with strong rules to ensure a level playing field. A WTO with the Sustainable Development Goals and climate change at the core of its work. And a WTO responding to the digital revolution, harnessing the full potential of the free flow of data.
In this respect, I will prioritise negotiations on E-commerce. Of course, it will be very important that we uphold our GDPR rules on personal data protection. Europe has the influence and credibility to lead this reform effort. In the context of the Covid-19 pandemic, we have already put forward ideas for a trade and health initiative that would facilitate trade in essential pharmaceutical and medical goods.
I am happy to announce today that I will launch a WTO Trade and Climate Initiative, focusing on green goods and services. I look forward to discussing this with you at the earliest opportunity. Staying with sustainability and climate – trade can deliver real results here.
I would direct you to my track record on sustainable finance – Europe was the first region with proper legislation in this area, and Europe is now a global leader. My approach was never top-down, but based on reaching out, finding common ground, and building alliances. My approach will stay the same. Working with our partners is how Europe achieves results.
Every time one of our trade deals includes a Trade and Sustainable Development chapter, we are making a mutual commitment. I know we need to strengthen the enforcement of these chapters even more. So, my commitment is that I will work closely with you and with our new Chief Trade Enforcement Officer to achieve results.
The Commission will propose the respect of the Paris climate commitments as an essential element in our future agreements. We will do more to support gender equality, women’s empowerment, and labour and human rights, including strong action to eliminate child labour. We will examine how we can include more granularity in the enforcement of these chapters. And I will work closely with Commissioner Reynders to advance the Commission’s proposal on mandatory due diligence already next year.
Ladies and gentlemen, one of the most urgent sustainability issues is to protect the Amazon rainforest. These are the lungs of our planet. Our best advantage is that we have an ongoing partnership discussion with the Mercosur countries. Negotiating this agreement has taken 20 years. It is the first of its kind that Mercosur has negotiated with a global partner.
The sustainability chapter is the most progressive in any of our trade deals. It contains explicit commitments on deforestation and implementation of the Paris agreement. However, I recognise the deep concerns expressed by the honourable members, by civil society, and by our citizens. I share these concerns. Therefore, we should redouble our engagement with our Mercosur partners, and find lasting solutions for the Amazon region. This will be a critical element on the path towards ratification of the agreement.
Honourable members, openness goes hand in hand with fairness. To reinforce our commitment to free and fair trade, we must engage with our partners. While at the same time, we must strengthen our defence and enforcement. Europe needs to become more assertive. By protecting our companies, securing our strategic interests, strengthening reciprocity and levelling the playing field.
The Chief Trade Enforcement Officer will work to implement our agreements. This means removing barriers and protecting our workers, consumers and companies whenever our trade partners do not play by the rules. In addition, I will seek to strengthen our enforcement tools. With your support, I hope we can swiftly agree on the updated enforcement regulation.
We must also sharpen our trade defence tools. I will support the efforts to launch a new legal instrument dealing with distortions from foreign subsidies in our internal market. I will work with Member States to ensure that screening mechanisms for Foreign Direct Investment are working well on the ground. I will also look for your help to conclude the work on dual-use exports and the International Procurement Instrument. And to strengthen our hand in defending the EU against the unfair practices of others, I will bring forward a proposal next year for a new anti-coercion mechanism.
In parallel with defending ourselves better, we need to help our companies, in particular our SMEs – to derive maximum benefit from our Free Trade Agreements. This is critical for our future economic prospects, given that in the next decade, 85% of global growth will take place outside the EU. Therefore, I am very pleased to announce that later this month I will launch the Access2Markets portal. This will be a one-stop-shop, in all EU languages, to help SMEs navigate the world of international trade. I look forward to your strong participation in this high-level event.
Ladies and gentlemen, All the goals I have outlined require our global partnerships to be strong and responsive. The Transatlantic trade and investment relationship remains the global engine of prosperity. I will spare no effort in revitalising our strategic partnership with the United States. I will bring a fresh impetus to transatlantic work on trade, technology, taxation, and reform of the multilateral trading system, including disciplines on industrial subsidies.  The recent deal on tariff reductions represents the first step of a renewed cooperation. However, if the U.S. continues to disengage from multilateralism and pursue unilateral actions, the EU will not hesitate to defend its interests and respond in a proportionate way.
Let me turn now from the United States to China. We need to pursue a results-oriented engagement with Beijing. I co-chair the High Level Economic Dialogue with China in my current role. This gives me a clear understanding of the political and economic reality. We will work to enhance our trade and investment relationship with China – notably by concluding the Comprehensive Agreement on Investment. However, our partnership must be restructured to be reciprocal, balanced and fair. European companies in China need fair treatment and real market access.
Closer to home, I see Africa as a key partner for Europe. Africa is on our doorstep. It is the continent with the highest growth potential in the world: by 2050, Africa will represent around 75% of the growth of the global workforce. I am committed to reinforcing our economic partnership agreements with Africa, building resilient value chains and boosting sustainable public and private investment in sectors of mutual interest.   Our long-term objective is to achieve a continent-to-continent agreement.
Moving still a little closer, we need to enhance our cooperation with our neighbourhood region. These relationships are an important aspect of our trade policy with a strong geopolitical dimension. Likewise, we must continue to support EU candidates and potential candidates, including through the extension of our autonomous trade measures. I count on the co-legislators to have the new regulation in place in time.And I very much welcome the recent vote in the INTA committee in this regard.
I would like to say a few words on our negotiations with the United Kingdom. It is in the strong interest of both sides to construct the closest possible trading relationship. But I should underline that progress will depend on both sides respecting their commitments under the Withdrawal Agreement. Both the Commission and the Parliament have been very clear on this point.
To conclude, honourable members, all the steps I have outlined will feed into the ongoing review of our trade policy. This will help us to design the new direction for EU trade, based on the concept of open strategic autonomy. If confirmed, I will come back to this house regularly to engage with you on all these issues. I will also maintain an active outreach to civil society. As proof of my commitment to a wide and inclusive approach, a series of dedicated civil society dialogues will start already next month. I pledge to maintain a high degree of transparency in my dealings with the European Parliament. I will ensure that you have all the information you need, in good time. I want to reassure the group coordinators that I have taken good note of the expectations you expressed in the context of my predecessor’s hearing last year. I hope you recognise that this has inspired the programme I have put before you today.
Let me conclude by saying that we live in unprecedented times. We face increasing challenges at home and abroad. Working together, we can design a strong European plan to address these challenges. Working together, we can future-proof Europe’s trade policy.
Thank you.
Compliments of the European Commission.
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Main results
On 1 and 2 October, EU leaders met in Brussels to discuss foreign affairs and the EU’s economic base.
On Thursday, they discussed the situation in the Eastern Mediterranean. They also addressed relations with China, the situation in Belarus, the conflict in Nagorno-Karabakh and the poisoning of Alexei Navalny.
On Friday, COVID-19, the single market, industrial policy and digital transition were on the agenda. Leaders were also updated on EU-UK relations and the MFF negotiations with the European Parliament.

European Council conclusions, 1-2 October 2020
Remarks by President Charles Michel after the Special European Council meeting on 2 October 2020
Remarks by President Charles Michel after the Special European Council meeting on 1 October 2020

President Charles Michel presented the Leaders’ Agenda 2020-2021, which covers the key challenges confronting the EU and allows the ground to be prepared for strategic discussions in the European Council meetings.

Leaders’ Agenda 2020-2021

External relations
Eastern Mediterranean
The European Council reiterated its full solidarity with Greece and Cyprus, whose sovereignty and sovereign rights must be respected. EU leaders stressed that the EU has a strategic interest in a stable and secure environment in the Eastern Mediterranean and the development of a cooperative and mutually beneficial relationship with Turkey.

“Pursuing dialogue in good faith and abstaining from unilateral actions which run counter to the EU interests and violate international law and the sovereign rights of EU member states is an absolute requirement in this regard. All differences must be resolved through peaceful dialogue and in accordance with international law.”
European Council conclusions

EU leaders welcomed the recent confidence-building steps by Greece and Turkey and the announcement that they will resume their exploratory talks. At the same time, they strongly condemned violations of the sovereign rights of the Republic of Cyprus and called on Turkey to accept the invitation by Cyprus to engage in dialogue.
Provided constructive efforts to stop illegal activities vis-à-vis Greece and Cyprus are sustained, the European Council has agreed to launch a positive political EU-Turkey agenda.
In the event of renewed unilateral actions or provocations in breach of international law, the EU will use all the instruments and options at its disposal to defend its interests and those of its member states.
The European Council will come back to the situation in the Eastern Mediterranean and take decisions as appropriate at the latest at its meeting in December 2020.
EU leaders also called for a multilateral conference on the Eastern Mediterranean.
Belarus
The European Council condemned the Belarusian authorities’ unacceptable violence against peaceful protesters, intimidation and arbitrary arrests and detentions following the presidential elections, the results of which it does not recognise.

“The European Council fully supports the democratic right of the Belarusian people to elect their president through new free and fair elections, without external interference.”
European Council conclusions

EU leaders called on the Belarusian authorities to end violence and repression, release all detainees and political prisoners, respect media freedom and civil society, and start an inclusive national dialogue. They agreed that restrictive measures should be imposed and called on the Council to adopt the decision without delay. The European Council also encouraged the European Commission to prepare a plan of economic support for democratic Belarus.
EU-China
Following the EU-China summit on 22 June 2020 and the meeting with President Xi on 14 September 2020, both held via videoconference, the European Council discussed EU-China relations. The leaders recalled the goal of finalising negotiations for an ambitious EU-China Comprehensive Investment Agreement (CAI) by the end of 2020.
EU leaders encouraged China to assume greater responsibility in dealing with global challenges, in particular regarding climate. They welcomed President Xi’s statement that China will aim to achieve carbon neutrality before 2060.
The European Council also stressed its serious concerns about the human rights situation in China, including developments in Hong Kong and the treatment of people belonging to minorities.

EU-China leaders’ meeting via video conference, 14 September 2020
EU-China summit via video conference, 22 June 2020

The Nagorno-Karabakh conflict
The European Council called for an immediate cessation of hostilities and urged the parties to recommit to a lasting ceasefire and the peaceful settlement of the conflict. It expressed its support for the Co-Chairs of the OSCE Minsk Group and asked the High Representative to examine the possibility of further EU support for the settlement process.

“The loss of life and the toll on the civilian population are unacceptable. There can be no military solution to the conflict, nor any external interference. Azerbaijan and Armenia should engage in substantive negotiations without preconditions.”
European Council conclusions

Poisoning of Alexei Navalny
EU leaders condemned the assassination attempt on Alexei Navalny using a military chemical nerve agent from the ʻNovichokʼ group. They also called on the Russian Federation’s authorities to fully cooperate with the Organisation for the Prohibition of Chemical Weapons (OPCW) to ensure an impartial international investigation and bring those responsible to justice. The European Council will return to the matter on 15-16 October 2020.
COVID-19
The European Council held an in-depth discussion on the handling of the COVID-19 pandemic. It called on the Council and the Commission to further step up the overall coordination effort and work on the development and distribution of a vaccine at EU level. The European Council will come back to this issue regularly.

COVID-19 coronavirus outbreak and the EU’s response (background information)

Single market, industrial policy and digital transition
EU leaders focused on:

returning to a fully functioning single market as soon as possible
making the EU’s industries more competitive globally and increasing their autonomy
accelerating the digital transition

Single Market
The European Council called for:

strict implementation and enforcement of the Single Market rules
the removal of unjustified barriers, particularly in the area of services
the European competition framework to be updated
the new system of global economic governance to be shaped
investment in education, training and the effective use of skills

EU single market (background information)

Industrial policy
EU leaders invited the Commission to identify strategic dependencies, in particular in the most sensitive industrial ecosystems such as the health sector. They also tasked the Commission with proposing measures to reduce these dependencies.
The European Council called for:

a level playing field and a regulatory environment and state aid framework that are conducive to innovation
the development of new industrial alliances

an increase in the assistance given to pre-existing projects of importance and common European interest, and for help to be provided to member states to develop new ones
the development of EU autonomy in the space sector and a more integrated defence industrial base

EU industrial policy (background information)

Digital transition

“The COVID-19 pandemic has further underlined the need to accelerate the digital transition in Europe. (…) Building a truly digital Single Market will provide a home-based framework allowing European companies to grow and scale up.”
European Council conclusions

EU leaders look forward to the Commissionʼs proposal for a Digital Services Act by the end of 2020. They also invited the Commission to present, by March 2021, a comprehensive Digital Compass which sets out the EUʼs concrete digital ambitions for 2030.

“The EU will remain open to all companies complying with European rules and standards. Digital development must safeguard our values, fundamental rights and security, and be socially balanced.”
European Council conclusions

EU leaders agreed that at least 20% of the funds under the Recovery and Resilience Facility would be made available for the digital transition, including for SMEs. Together with the amounts under the long-term EU budget, these funds should help to advance objectives such as:

fostering European development of the next generation of digital technologies, including supercomputers, quantum computing, blockchain etc.
developing capacities in strategic digital value chains, especially microprocessors
speeding up the deployment of high capacity and secure network infrastructure, including fibre and 5G
enhancing the EUʼs ability to protect itself against cyber threats

making use of digital technologies to achieve the EU’s ambitious environmental goals

upgrading digital capacities in education systems

EU leaders welcomed the European strategy for data and the creation of common European data spaces in strategic sectors. They invited the Commission to give priority to the health data space, which should be set up by the end of 2021. The European Council also stressed the need to establish secure European cloud services to ensure that European data can be stored and processed in Europe, in compliance with European rules and standards.
The European Council called on the EU and the member states to make full use of the 5G cybersecurity toolbox adopted on 29 January 2020 and urged all EU countries to submit their national plans on the roll-out of 5G to the Commission by the end of 2020.
EU leaders also called for the development of an EU-wide framework for secure public electronic identification (e-ID), which would provide people with control over their online identity and data and facilitate access to public, private and cross-border digital services. It tasked the Commission with presenting a proposal for a ʻEuropean Digital Identificationʼ initiative by mid-2021.
The European Council will return to the topics of the Single Market, industrial policy and digital transition in March 2021, including an assessment of the situation on digital taxation.
MFF negotiations
EU leaders were updated on the negotiations with the European Parliament on the MFF, the EU’s own resources and the recovery fund.

“Our agreement in July was a political package and it’s very essential to be able, as soon as possible, to deliver, to implement what we have decided. (…) We will continue to work very hard in order to reach this goal.”
Charles Michel, President of the European Council

Long-term EU budget 2021-2027 (background information)

EU-UK relations
At the end of the meeting, a brief update on negotiations with the United Kingdom was provided.

” We are united. We are very calm. We have expressed very clearly the last weeks what we think about the current situation. And we will have the occasion in October to tackle this important topic.”
Charles Michel, President of the European Council

EU-UK negotiations on the future relationship (background information and timeline)

Compliments of the European Council.
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Publication of Eurosystem High-Level Task Force report on digital euro
Eurosystem needs to be ready for possible future decision to introduce digital euro
Public consultation and experimentation to be launched

The European Central Bank (ECB) today published a comprehensive report on the possible issuance of a digital euro, prepared by the Eurosystem High-Level Task Force on central bank digital currency (CBDC) and approved by the Governing Council.
A digital euro would be an electronic form of central bank money accessible to all citizens and firms – like banknotes, but in a digital form – to make their daily payments in a fast, easy and secure way. It would complement cash, not replace it. The Eurosystem will continue to issue cash in any case.
“The euro belongs to Europeans and our mission is to be its guardian,” said Christine Lagarde, ECB President. “Europeans are increasingly turning to digital in the ways they spend, save and invest. Our role is to secure trust in money. This means making sure the euro is fit for the digital age. We should be prepared to issue a digital euro, should the need arise.”
The Eurosystem task force, bringing together experts from the ECB and 19 national central banks of the euro area, identified possible scenarios that would require the issuance of a digital euro. These scenarios include an increased demand for electronic payments in the euro area that would require a European risk-free digital means of payment, a significant decline in the use of cash as a means of payment in the euro area, the launch of global private means of payment that might raise regulatory concerns and pose risks for financial stability and consumer protection, and a broad take-up of CBDCs issued by foreign central banks.
“Technology and innovation are changing the way we consume, work and relate to each other,” said Fabio Panetta, member of the ECB’s Executive Board and Chair of the task force. “A digital euro would support Europe’s drive towards continued innovation. It would also contribute to its financial sovereignty and strengthen the international role of the euro.”
A digital euro would preserve the public good that the euro provides to citizens: free access to a simple, universally accepted, risk-free and trusted means of payment. It also poses challenges, but by following appropriate strategies in the design of the digital euro the Eurosystem can address these.
The Governing Council has not taken a decision yet on whether to introduce a digital euro.
The Eurosystem will engage widely with citizens, academia, the financial sector and public authorities to assess their needs, as well as the benefits and challenges they expect from the issuance of a digital euro, in detail. A public consultation will be launched on 12 October.
Experimentation will start in parallel, without prejudice to the final decision.
Contact:

Alexandrine Bouilhet, Alexandrine.Bouilhet@ecb.europa.eu | +49 172 174 93 66.

Compliments of the European Central Bank.
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September 30, 2020, the Commission adopted two initiatives that will strengthen the contribution of education and training to the EU’s recovery from the coronavirus crisis, and help build a green and digital Europe. Setting out a vision of the European Education Area to be achieved by 2025, the Commission proposes new initiatives, more investment and stronger cooperation of Member States to help all Europeans, of all ages, benefit from the EU’s rich education and training offer. The Commission also adopted a new Digital Education Action Plan, reflecting lessons learned from the coronavirus crisis, and devising a plan for a high-performing digital education ecosystem with enhanced digital competences for the digital transformation.
The Communication on the European Education Area outlines how cooperation can further enrich the quality, inclusiveness and digital and green dimension of Member State education systems. It shows how together, Member States can shape a European Education Area based on freedom for learners and teachers to learn and work across the continent and for institutions to freely associate with one another in Europe and beyond.
The European Education Area is underpinned by six dimensions: quality, inclusion and gender equality, green and digital transitions, teachers, higher education, a stronger Europe in the world. Initiatives will inter alia look at ways to enhance quality, notably with regard to basic and digital skills and to make school education more inclusive and gender sensitive and improve school success. They will help strengthen understanding of climate change and sustainability, foster the greening of education infrastructure, support the teaching profession, further roll out European Universities and enhance connectivity among education and training institutions.
The Communication sets out the means and milestones to achieve the European Education Area by 2025, supported by Europe’s Recovery Plan (NextGenerationEU) and the Erasmus+ Programme. In addition, it proposes a framework for cooperation with Member States and engagement with education stakeholders, including a reporting and analysis structure, with agreed education targets, to encourage and track reforms. Efforts to establish the European Education Area will work in synergy with the European Skills Agenda, the renewed Vocational Education and Training policy and the European Research Area.
The Digital Education Action Plan (2021-2027) proposes a set of initiatives for high‑quality, inclusive and accessible digital education in Europe. It is a call to action for stronger cooperation between Member States at European level, as well as with and between stakeholders, to make education and training systems truly fit for the digital age. The coronavirus crisis has put distance learning at the centre of education practices. This has shed light on the pressing need to improve digital education, as a key strategic objective for high-quality teaching and learning in the digital age. As we move beyond the emergency phase imposed by the outbreak of the pandemic, we need a strategic and longer-term approach to digital education and training.
The Action Plan has two long-term strategic priorities: (i) fostering the development of a high-performing digital education ecosystem and (ii) enhancing digital competences for the digital transformation. In order to strengthen the cooperation and exchange in digital education at EU level, the Commission will create a European Digital Education Hub, which will foster collaboration and synergies between policy areas relevant to digital education, create a network of national advisory services and strengthen the dialogue between stakeholders from the public and private sector.
Both initiatives will also feed into the third European Education Summit, which the Commission will host online on 10 December to bring Ministers and key stakeholders together to discuss how to make education and training fit for the digital era.
Members of the College said
Executive Vice-President for a Europe Fit for the Digital Age, Margrethe Vestager, said: “Education and training have faced huge disruption due to COVID-19 and a quick shift to distance and online learning. The mass use of technology has revealed gaps and exposed weaknesses. This is also an opportunity to reset education and training for the digital age. 95% of respondents to the public consultation on the Digital Education Action Plan see the crisis as a turning point for the way technology is used in education and training. This is a momentum to shape and modernise education for the digital age.”
Vice-President for Promoting the European way of live, Margaritis Schinas, said: “Education is a mainstay of our European way of life. Our vision for the European Education Area is deeply rooted in the values of freedom, diversity, human rights and social justice. Together with the Digital Education Action Plan, we propose new initiatives to learn and work together across the continent. For our youth, for our citizens, for our prosperity.”
Commissioner for Innovation, Research, Culture, Education and Youth, Mariya Gabriel, said: “The European Education Area and the Digital Education Action Plan are both essential for European recovery and future growth. They set out a common vision of the future of education linked to our commitments towards the digital and green transitions. We now need to focus on implementation and on creating synergies between them.”
Background
The European Education Area is rooted in decades of education cooperation at EU level. The strategic framework for European cooperation in education and training (ET 2020) helped build trust and mutual understanding to support the earliest European Education Area initiatives.
In 2017, Heads of State and Government discussed education and training at the Gothenburg Social Summit, guided by the Commission’s communication setting out its vision for a European Education Area by 2025. This resulted in December 2017 Council conclusions calling on Member States, the Council and the Commission to take forward the Gothenburg agenda. Many initiatives have already been developed. Based on this rich legacy, today’s communication sets out a vision for the European Education Area, together with a reinforced approach in order to achieve it by 2025. The European Education Area also ties in with Next Generation EU and the long-term budget of the European Union for 2021-2027.
In that context, the Digital Education Action Plan is a cornerstone of the Commission’s efforts to support the digital transition in Europe. It builds on the first Digital Education Action Plan adopted in January 2018, running to the end of this year. It is more ambitious in its reach, notably with a wider scope going beyond formal education, and with a longer duration, running until 2027.
Compliments of the European Commission.
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EU Member States agreed yesterday on a Commission proposal to invest €998 million in key European energy infrastructure projects under the Connecting Europe Facility (CEF). Yesterday’s positive vote provides financial aid for works and studies for ten projects.
The largest amount of funding goes to the Baltic Synchronisation Project (€720 million), to better integrate the electricity markets of Estonia, Latvia, Lithuania and Poland. Other projects include a smart electricity grid linking Hungary and Slovakia (€102 million), and the first-ever CEF grant for works on a CO2 transport project for Belgian and Dutch ports. 
Kadri Simson, Commissioner for Energy, said: “These ten projects will contribute to a more modern, secure and smart energy infrastructure system, which is crucial for delivering the European Green Deal and meeting our ambitious 2030 climate targets. Yesterday’s decision marks a decisive step in the Baltic Synchronisation process in particular, a project of European strategic interest. These investments will help sustain the EU’s economic recovery and create jobs.”
The allocation of funds is in line with the objectives of the European Green Deal, with 84% of funds going to electricity or smart grid projects. Yesterday’s vote grants financial aid for ten projects: two for electricity transmission, one for smart electricity grids, six for CO2 transport (including five studies), and one for gas. The projects greenlighted yesterday include:
Baltic Synchronisation Project, Phase II (€720 million): Following a previous investment, this new funding will go to the construction of Harmony Link – an electricity cable connecting Poland and Lithuania through the Baltic Sea. The cable will become a building block for the future offshore grid in the Baltic Sea. This funding will also cover investments such as synchronous condensers in Estonia, Latvia and Lithuania.
Danube Ingrid (€102 million): This smart electricity grid project in Hungary and the Slovak Republic will improve network management and increase the quality and security of supply for all market participants. It will also support the efficient integration of renewables.
The Porthos CO2 transport network project (€102 million): This project between the Netherlands and Belgium will develop an open access CO2 transport network in three of Europe’s main ports (Rotterdam, Antwerp and North Sea Port) leading to an offshore storage site in the North Sea.
The Bulgaria – Serbia Interconnector (€28 million): This priority project agreed under the CESEC High-Level Group will improve security of supply and diversification of gas imports in Southeast Europe.
North Sea Wind Power Hub (€14 million): A study to support the development of an important project for the roll-out of offshore wind in the North Sea.
Background
For Europe to transition to a clean and modern economy, it is necessary to adapt European infrastructure to the future needs of the energy system. Interconnections form the backbone of an integrated EU energy market, which will improve Europe’s security of supply, reduce the dependence on single suppliers and give consumers more choice. It is also essential for renewable energy sources to thrive and for the EU to deliver on its Paris Agreement commitments and its ambition to become climate neutral by mid-century.
Only Projects of Common interest (PCIs) on the Union list adopted by the Commission are eligible for a CEF grant. The latest PCI list was published in October 2019 and the next PCI list – the 5th – is expected to enter into force in early 2021. CEF-Energy has already awarded almost €4 billion in grants since 2014 with 65% allocated to electricity projects, including smart grids.
Future CEF–Energy funding is subject to a final agreement by the EU institutions on the Mulitannual Financial Framework for 2021-2027. Future awards will be in line with the planned revision of the Trans-European Networks for Energy (TEN-E) Regulation. The Commission is due to table its TEN-E proposal before the end of 2020, to ensure a future-proof framework to allow the EU to fund the infrastructure needed for delivering the European Green Deal.
Compliments of the European Commission.
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Statement by Vice-President Maroš Šefčovič | 28 September 2020 | Brussels
Good afternoon everyone!
We have just concluded our third meeting of the Joint Committee on the implementation and application of the Withdrawal Agreement. Our main message was on the much-needed acceleration of the implementation work to prepare for the 1st January 2021 and on the need to ensure a full, timely and effective implementation of the Withdrawal Agreement. Much work remains to be done before the transition period ends in fewer than a hundred days. Let me therefore turn to the main elements of today’s meeting.
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On citizens’ rights, the EU and the Member States continue to take steps to ensure the rights under the Withdrawal Agreement of around 4.5 million EU citizens and UK nationals. We are confident that all Member States are on track to fully deploy their residence schemes and process all UK nationals in time. To that affect, some Member States have introduced – due to the pandemic – a more flexible approach. In particular, prolongation of the grace period beyond June 2021 in Member States with a constitutive system or prolongation of validity of residence documents issued under the EU free movement directive. Turning to the situation in the United Kingdom, while acknowledging efforts to register all EU citizens, I have raised our serious concern over the UK settlement scheme granting new resident status. In practice, it distinguishes between different categories of EU citizens with the same residence status – as such, it undermines legal certainty, also affecting their rights. We cannot have two classes of beneficiaries of the Withdrawal Agreement.
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Moving to the Protocol on Ireland/Northern Ireland, the window of opportunity to put in place the operational measures needed for it to function is rapidly closing. I have therefore reiterated the urgent need for the UK to accelerate its work on all aspects of the Protocol and in particular with regard to sanitary and phytosanitary controls; customs-related IT systems; and the registration of Northern Irish traders for Value Added Tax purposes. We welcome that the UK is now engaging on some of the Joint Committee decisions that need to be adopted before the end of the year to fully implement the Protocol. But many difficult issues remain and the UK’s positions are far apart from what the EU can accept. I have repeated the EU’s request to withdraw the contentious parts of the draft Internal Market Bill by the end of September. We maintain that the Bill, if adopted in its current form, would constitute an extremely serious violation of the Protocol, as an essential part of the Withdrawal Agreement, and of international law. The Withdrawal Agreement is to be implemented, not to be renegotiated – let alone unilaterally changed, disregarded or disapplied. It cannot be stressed enough that the Protocol is specifically designed to protect the Good Friday (Belfast) Agreement and the achievements of the peace process, including avoiding a hard border on the island of Ireland. It recognises Northern Ireland’s unique circumstances, allowing growth and prosperity to continue. We are willing to work hard with the UK on these issues over the coming days and weeks. I have requested that the next meeting of the respective Specialised Committee takes place in early October at the latest.
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We also discussed the Sovereign Base Areas in Cyprus and Gibraltar, the ongoing implementation work of the financial settlement at technical level as well as the remaining Joint Committee decisions, which should be adopted before the end of the transition period. It is important to accelerate the preparatory work on these decisions.
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All in all, today’s Joint Committee meeting has shown the urgent need to move into higher gear and therefore, the next Joint Committee by mid-October should take stock of the results achieved by the  Specialised Committees. The EU is fully committed to achieving a full, timely and effective implementation of the Withdrawal Agreement within the remaining time available – constructively, at full speed and in good faith.
Compliments of the European Commission.
The post Press statement by Vice-President Maroš Šefčovič following the third meeting of the EU-UK Joint Committee first appeared on European American Chamber of Commerce New York [EACCNY] | Your Partner for Transatlantic Business Resources.

The European Securities and Markets Authority (ESMA), the EU’s securities markets regulator, has updated two statements on its approach to the application of key provisions of MiFID II/MiFIR and the Benchmark Regulation (BMR).

The Impact of Brexit on MiFID II/MiFIR
The Impact of Brexit on the BMR

Today’s statements update previous ones issued in March 2019 and October 2019 reflecting ESMA’s approach, should the UK have left the EU under a no-deal Brexit. However, as the Withdrawal Agreement entered into force on 1 February 2020, and the UK entered a transition period that will end on 31 December 2020, these statements needed to be revised.
Compliments of the European Securities and Markets Authority.
The post ESMA updates statements on the impact of Brexit on MIFID II/MIFIR and the benchmarks regulation first appeared on European American Chamber of Commerce New York [EACCNY] | Your Partner for Transatlantic Business Resources.

The European Commission has today sent the United Kingdom a letter of formal notice for breaching its obligations under the Withdrawal Agreement. This marks the beginning of a formal infringement process against the United Kingdom. It has one month to reply to today’s letter.
Article 5 of the Withdrawal Agreement states that the European Union and the United Kingdom must take all appropriate measures to ensure the fulfilment of the obligations arising from the Withdrawal Agreement, and that they must refrain from any measures which could jeopardise the attainment of those objectives. Both parties are bound by the obligation to cooperate in good faith in carrying out the tasks stemming from the Withdrawal Agreement.
On 9 September 2020, the UK government tabled a Bill (‘United Kingdom Internal Market Bill’) that, if adopted, would flagrantly violate the Protocol on Ireland / Northern Ireland, as it would allow the UK authorities to disregard the legal effect of the Protocol’s substantive provisions under the Withdrawal Agreement. Representatives of the UK government have acknowledged this violation, stating that its purpose was to allow it to depart in a permanent way from the obligations stemming from the Protocol. The UK government has failed to withdraw the contentious parts of the Bill, despite requests by the European Union.
By doing so, the UK has breached its obligation to act in good faith, as set out in Article 5 of the Withdrawal Agreement. Furthermore, it has launched a process, which – if the Bill is adopted – would impede the implementation of the Withdrawal Agreement. As a result, the Commission has launched infringement proceedings today in line with the provisions of the Withdrawal Agreement.
Next steps
The UK has until the end of this month to submit its observations to the letter of formal notice. After examining these observations, or if no observations have been submitted, the Commission may, if appropriate, decide to issue a Reasoned Opinion.
Background
The Withdrawal Agreement was ratified by both the EU and the UK. It entered into force on 1 February 2020 and has legal effects under international law.
Following the publication by the UK government of the draft ‘United Kingdom Internal Market Bill’ on 9 September 2020, Vice-President Maroš Šefčovič called for an extraordinary meeting of the EU-UK Joint Committee to request the UK government to elaborate on its intentions and to respond to the EU’s serious concerns. The meeting took place in London on 10 September between Michael Gove, Chancellor of the Duchy of Lancaster, and Vice-President Maroš Šefčovič.
At the meeting, Vice-President Maroš Šefčovič stated that if the Bill were to be adopted, it would constitute an extremely serious violation of the Withdrawal Agreement and of international law. He called on the UK government to withdraw these measures from the draft Bill in the shortest time possible and in any case by the end of the month of September.
At the third ordinary meeting of the Joint Committee on 28 September 2020, Vice-President Maroš Šefčovič again called on the UK government to withdraw the contentious measures from the bill. The UK government on this occasion confirmed its intention to go ahead with the draft legislation.
The Withdrawal Agreement provides that during the transition period, the Court of Justice of the European Union has jurisdiction and the Commission has the powers conferred upon it by Union law in relation to the United Kingdom, also as regards the interpretation and application of that Agreement.
Compliments of the European Commission.
The post Withdrawal Agreement: European Commission sends letter of formal notice to the United Kingdom for breach of its obligations first appeared on European American Chamber of Commerce New York [EACCNY] | Your Partner for Transatlantic Business Resources.

Statement explaining how ECB administers €STR
Compliance of the ECB with IOSCO Principles, and therefore with international best practice, in its administration of €STR
Independent assurance by external auditor

The European Central Bank (ECB) today published its statement of compliance with the Principles for Financial Benchmarks developed by the International Organization of Securities Commissions (IOSCO). This statement shows how the ECB complies with these principles, and therefore with international best practice, in its administration of the €STR. The statement has been independently assured by the auditing firm PricewaterhouseCoopers.
The ECB has been the administrator of the euro short-term rate (€STR) since it went live on 2 October 2019. The ECB’s governance, quality and accountability processes for the €STR apply the IOSCO Principles – where relevant and appropriate – to ensure that an effective and transparent control framework in line with international best practice is in place in order to protect the integrity and independence of the process used to determine the €STR. The statement of compliance with the IOSCO Principles for Financial Benchmarks provides an overview of how the ECB administers the €STR, presents a self-assessment of its compliance with each IOSCO Principle, and describes the relevant frameworks and procedures.
Compliments of the European Central Bank.
The post ECB publishes statement of compliance of €STR with IOSCO Principles for Financial Benchmarks first appeared on European American Chamber of Commerce New York [EACCNY] | Your Partner for Transatlantic Business Resources.