Statement made July 23, LONDON |
Ladies and gentlemen,
Good afternoon to all of you.
I am happy to meet you here in Europe House in London, at the end of this sixth negotiation round. I would like to thank the EU Delegation, and our Ambassador João Vale de Almeida for welcoming us.Thank you also for the very useful work you do, representing the EU in the UK, together with the 27 EU Ambassadors, whom I met yesterday. This negotiation takes place in the middle of a very serious health, economic and social crisis across Europe and the world. This crisis gives us a duty to act responsibly and to work for an agreement limiting the negative consequences of Brexit. This is also why the agreement found this week in the European Council is so important. EU leaders, including Presidents Ursula von der Leyen and Charles Michel, showed responsibility and EU unity in agreeing on a budget for the next 7 years and on a very ambitious recovery plan. The European Parliament is debating this today.
Ladies and gentlemen,
Let me begin with a few words on the context of this round. At the High-Level Meeting with Presidents Ursula von der Leyen, David Sassoli and Charles Michel in June, Prime Minister Boris Johnson told us that he wanted to reach a political agreement quickly.
The Prime Minister also stated three red lines:
no role for the European Court of Justice in the UK;
the right to determine future UK laws without constraints and;
an agreement on fisheries that shows that Brexit makes a real difference compared to the existing situation.
Ladies and gentlemen,
What Boris Johnson says and writes matters to the EU. Therefore, following the High-Level Meeting, we agreed to intensify our discussions. We have tried to understand how these three red lines can be squared with our commitment to a comprehensive new partnership – as set out in the Political Declaration, signed by Prime Minister Johnson on 17 October last year. Because of course, any international agreement implies constraints on both Parties. We have continued to engage sincerely and constructively, in line with the mandate given to us by the Member States, with the support of the European Parliament. However, over the past few weeks, the UK has not shown the same level of engagement and readiness to find solutions respecting the EU’s fundamental principles and interests. This week, we have had useful discussions on some issues in goods and services. But these negotiations are complex and require us to make progress across all areas. And we are still far away. This week, discussions took place in a positive atmosphere, and I want to thank David Frost and his team, as well as the EU team, for their professional approach.
It has allowed us to make some progress:
We had useful discussions to narrow our divergences in the areas of social security coordination and Union programmes.
We made progress towards the objective of a comprehensive and single institutional framework, which must include robust enforcement mechanisms.
And we had good discussions on police and judicial cooperation, even if divergences remain.
On two important subjects, transport and energy, we had intense and useful discussions. However, the UK continued to request single market-like benefits.
In addition, there is still no progress on two essential topics of our economic partnership.
First, there must be robust guarantees for a level playing field – including on State aid and standards – to ensure open and fair competition among our businesses, also over time. This is a core interest for all 27 Member States – and in my view also for the UK.
Second, we have to agree on a balanced, sustainable and long-term solution for fisheries, with the interests of all Member States concerned in mind, and not least the many men and women whose livelihoods depend on it on both sides.
These two points should not come as a surprise. We have been saying the same thing since the beginning of the negotiations – not only this year, but consistently over the last three years. These points are mentioned explicitly in the Political Declaration – a rather precise text. They were part and parcel of our political engagement with Prime Minister Boris Johnson eight months ago. We are simply asking to translate this political engagement into a legal text. Nothing more.
Once again, what the Prime Minister writes and says matters to us.
On the two points I mentioned – the level playing field and fisheries – this week again, the UK did not show a willingness to break the deadlock.
1/ On the level playing field, the UK still refuses to commit to maintaining high standards in a meaningful way.
On State aid, despite the clear wording of the Political Declaration, we have made no progress at all. This is all the more worrying because we have no visibility on the UK’s intention on its future domestic subsidy control regime. We respect the UK political debate but the time for answers is quickly running out.
On important areas such as climate, environment, labour or social law, the UK refuses effective means to avoid undercutting by lowering standards. The UK wants to regain its regulatory autonomy. We respect that. But can the UK use this new regulatory autonomy to distort competition with us? We have to answer this question as we commit to a new economic partnership.
We want to trade with the UK free from tariffs, free from quotas, but also free from unfair competition. And I am sure UK businesses want that too. The UK tells us it needs certainty for its businesses. But that cannot be at the price of long term uncertainty and disadvantage for our businesses in the EU.
We respect the UK government’s political choice and we are ready to work on solutions. But the EU cannot and will not accept to foot the bill for the UK’s political choices. And let me be very clear: A less ambitious agreement on goods and services will not lead the EU to drop its demands for a robust level playing field.
2/ On fisheries, the UK is effectively asking for a near total exclusion of EU fishing vessels from UK waters.
That is simply unacceptable. The UK will be an independent coastal state, and the EU fully respects that. We also recognise that, under the future agreement, there may be change to the benefit of UK fishermen. But common stocks need to be managed jointly – according to international law and the principle of responsible and sustainable management of resources. And any agreement cannot lead to the partial destruction of the EU fishing industry. I repeat: we have to agree on a balanced, sustainable and long-term solution for fisheries protecting the many men and women whose livelihoods depend on it.
The EU has always insisted that an economic partnership with the UK must include robust level playing field rules and an equitable agreement on fisheries. This means that, by its current refusal to commit to conditions of open and fair competition and to a balanced agreement on fisheries, the UK makes a trade agreement at this point unlikely.
Ladies and gentlemen,
Until the very last day of this negotiation and despite the current difficulties, the EU will remain engaged, constructive and respectful. In any case, the UK has chosen to leave the Single Market and the Customs Union on 1 January 2021 – in little more than five months. This will bring inevitable changes.
On our side, we are getting ready.
We have published a Communication to help EU citizens, businesses and public administrations prepare for the end of the transition period.
EU leaders have agreed this week on a 5 billion euro special instrument – the “Brexit Adjustment Reserve” – to counter unforeseen and adverse consequences in Member States and sectors that are worst affected by Brexit.
In parallel, we have so far published over 70 sector specific notices: they explain in detail what actions must be taken in each sector to be ready for the end of the transition period. These notices are mandatory reading for stakeholders. They are available on our UK task force webpage.
But if we do not reach an agreement on our future partnership, there will be far more friction. For instance, on trade in goods, in addition to new customs formalities, there will be tariffs and quotas. This is the truth of Brexit. And I will continue to tell the truth. If we want to avoid this additional friction, we must come to an agreement in October at the latest, so that our new treaty can enter into force on 1 January next year. This means that we only have a few weeks left, and that we should not waste them.
Let me also remind you that we only have little time left to properly implement the Withdrawal Agreement. Together with Vice-President Maroš Šefčovič, we continue to follow closely the implementation by the UK of its commitments under the Protocol on Ireland and Northern Ireland. In this context, EU leaders have also agreed on Monday to allocate 120 million euro to the PEACE PLUS programme in support of peace and reconciliation and of the continuation of North-South cross border cooperation.
The recent Specialised Committee on the Protocol was a useful occasion to take stock of progress. I would like to thank Michael Gove and his team for their engagement. But we remain concerned that the necessary measures will not be in place on 1 January. Let me remind you that there is no grace period for the proper implementation of this Protocol.
We also remain vigilant, together with the 27 EU governments and the European Parliament, to guarantee the rights of British nationals covered by the Withdrawal Agreement. In the same way, we expect the rights of EU citizens here in the UK to be safeguarded.
Ladies and gentlemen,
Today in London, I want to reaffirm the EU’s willingness to reach an ambitious partnership agreement in all areas including, even later on, in external security and defense. This is also the wish of Presidents Ursula von der Leyen and Charles Michel, the European Parliament and the 27 Heads of State or government. I continue to believe that Prime Minister Boris Johnson and the UK government want to find an agreement with the EU. Because it is in our common interest to cooperate and to address the many and serious challenges of today: climate change and biodiversity, health and security, research and innovation, democracy and fundamental rights, the fight against poverty and financial stability. If I may borrow a famous line from Saint-Exupéry, negotiation is not just to look or to speak at one another. It is to look together in the same direction. I will be back in London with my team next week as planned. A new round is foreseen mid-August. Work continues. Our resolve remains unchanged.
Compliments of the European Commission

The European Commission has today adopted a Capital Markets Recovery Package, as part of the Commission’s overall coronavirus recovery strategy. On 28 April, the Commission had already proposed a Banking Package to facilitate bank lending to households and businesses throughout the EU. Today’s measures aim to make it easier for capital markets to support European businesses to recover from the crisis.  The package proposes targeted changes to capital market rules, which will encourage greater investments in the economy, allow for the rapid re-capitalisation of companies and increase banks’ capacity to finance the recovery.
Valdis Dombrovskis, Executive Vice-President for an Economy that works for the people said: “We are continuing with our efforts to help EU citizens and businesses during the coronavirus crisis and the subsequent recovery. One way of doing so is to help businesses raise capital on public markets. Today’s targeted amendments will make it easier for our businesses to get the funding they need and to invest in our economy. Capital markets are vital to the recovery, because public financing alone will not be enough to get our economies back on track. We will present a wider Capital Markets Union Action Plan in September.”
The package contains targeted adjustments to the Prospectus Regulation, MiFID II and securitisation rules. All of the amendments are at the heart of the Capital Markets Union project aimed at better integrating national capital markets and ensuring equal access to investments and funding opportunities across the EU.
Targeted amendments to the prospectus regime – EU Recovery Prospectus: Easy to produce – Easy to read – Easy to scrutinise
A prospectus is a document that companies need to disclose to their investors when they issue shares and bonds. The Commission is today proposing to create an “EU Recovery Prospectus” – a type of short-form prospectus – for companies that have a track record in the public market. This temporary prospectus would be easy to produce for companies, easy to read for investors, and easy to scrutinise for national competent authorities. It would cut down the length of prospectuses from hundreds of pages to just 30 pages. This will help companies to raise capital – such as shares – instead of going deeper into debt. A second set of targeted amendments to the Prospectus Regulation aims at facilitating fundraising by banks that play an essential role in financing the recovery of the real economy.
Targeted amendments to the MiFID II requirements for European firms
The Commission is today proposing to make some targeted amendments to MiFID II requirements, in order to reduce some of the administrative burdens that experienced investors face in their business-to-business relationships. Lesser-experienced investors (such as households investing their savings for retirement) will remain just as protected as before. These amendments refer to a number of requirements that were already identified (during the MiFID/MiFIR public consultation) as being overly burdensome or hindering the development of European markets. The current crisis makes it even more important to alleviate unnecessary burdens and provide opportunities to nascent markets. The Commission therefore proposes to recalibrate requirements to ensure that there is a high level of transparency towards the client, while also ensuring the highest standards of protection and acceptable compliance costs for European firms. In parallel, the Commission has today opened a public consultation on amendments to the MiFID II delegated directive to increase the research coverage regime for small and mid-cap issuers and for bonds. In particular, SMEs need a good level of investment research to give them enough visibility to attract new investors.  We are today also proposing to amend the MiFID rules affecting energy derivatives markets. This is intended to help the development of euro-denominated energy markets – important for the international role of the euro – as well as allow European companies to cover their risks, while safeguarding the integrity of commodity markets, especially for agricultural products.
Targeted amendments to securitisation rules
The Commission is today proposing a package of measures amending the Securitisation Regulation and the Capital Requirements Regulation. Securitisation is a tool through which banks can bundle loans, turn them into securities, and sell them onto capital markets. The aim of these changes is to facilitate the use of securitisation in Europe’s recovery by enabling banks to expand their lending and to free their balance sheets of non-performing exposures. It is helpful to let banks transfer some of the risk of SME (small and medium-sized enterprises) loans to the markets so that they can keep lending to SMEs. In particular, the Commission proposes creating a specific framework for simple, transparent and standardised on-balance-sheet securitisation that would benefit from a prudential treatment reflecting the actual riskiness of these instruments. In addition, the Commission proposes to remove existing regulatory obstacles to the securitisation of non-performing exposures. This can help banks offload non-performing exposures that can be expected to grow because of the coronavirus crisis. Today’s changes are based on extensive work and analysis carried out by the European Banking Authority in 2019 and 2020.
For more information
Link to today’s package
Questions and Answers
Compliments of the European Commission.

In an extraordinary plenary session, MEPs commented on the 17-21 July European Council deal on EU financing and the recovery plan to tackle the pandemic fallout.

In the debate with Council and Commission Presidents Charles Michel and Ursula von der Leyen, the deal reached at the recent European Council meeting on the recovery fund was qualified as “historic” by many MEPs as for the first time, member states have agreed to issue €750 billion of joint debt. With cuts made to the long-term budget (multiannual financial framework, MFF) however, most were “not happy”.
“We are not ready to swallow the MFF pill”, said Manfred Weber (EPP). Also, S&D leader Iratxe García would not accept the cuts, “not at a time when we need to strengthen our strategic autonomy and reduce disparities between Member states”.
Many highlighted that the question of reimbursing the debt was not resolved. MEPs insisted that the burden must not fall on the citizens, and that a robust system of new own resources including a digital tax or levies on carbon for the repayment must be guaranteed, with a binding calendar. Furthermore, many underlined that “the EU is not a cash machine for national budgets”, deploring that “frugal” countries do not want to pay the price for benefiting from the single market, and insisting that no funds should go to “pseudo-democratic” governments which do not respect the rule of law and EU values.
Others were more sceptical about new own resources generating enough to repay all the debt and warned that the crisis should not be used as a pretext for further EU integration. Most however stressed that Parliament is ready for swift negotiations to make the necessary improvements to the Council’s common position.
MEPs now vote on a resolution to wind up the debate, which will serve as a mandate for the upcoming negotiations with the German Presidency of the Council of the EU. The result of the final vote will be announced in plenary today at 17.30.
Click on links to view individual statements
Charles Michel, President of the European Council
Ursula von der Leyen, President of the European Commission
Manfred Weber (EPP, DE), Iratxe García Pérez (S&D, ES), Dacian Cioloș (RE, RO), Nicolas Bay (ID, FR), Philippe Lamberts (Greens/EFA, BE)
Robert Zīle (ECR, LV), Martin Schirdewan (GUE/NGL, DE)
Closing remarks by Charles Michel, President of the European Council
Compliments of the European Parliament.

Washington, DC |
On July 13, the Executive Board of the International Monetary Fund (IMF) approved a temporary increase in the annual limits on overall access to resources in the General Resources Account and the Poverty Reduction and Growth Trust. The severe impact of the COVID-19 pandemic on global economic conditions has resulted in an unprecedented number of member countries seeking financial support from the IMF. As of July 13, 2020, 72 countries have already received financial assistance from the IMF’s emergency financing instruments since the onset of the pandemic, facilitated by the doubling of annual access limits under these facilities approved by the Executive Board on April 6. Further requests for assistance, the majority of which are likely to be met through the IMF’s regular lending instruments, are expected in the months ahead.
IMF lending is subject to an annual limit on the access to resources that a country can obtain from its general resources and a separate annual limit on access under its concessional facilities. Many of the countries that have received financial support from the IMF since the onset of the pandemic have reached, or are approaching, the relevant annual access limits. Requests for financial assistance in excess of these annual limits trigger application of the relevant exceptional access framework, where the request is subject to tighter scrutiny and can be approved only if specified criteria are met.
Given the unique circumstances created by the pandemic, the IMF’s Executive Board approved temporary increases in these annual access limits, to remain in effect through April 6, 2021. This will allow member countries to obtain higher levels of financial support during this time period without triggering the application of the exceptional access framework. The existing limits on cumulative access are unaffected by this temporary change.
The Executive Board also approved the temporary suspension of the limit on the number of disbursements under the Rapid Credit Facility (RCF) through April 6, 2021. This allows emergency financing to the IMF’s poorest member countries to be provided more frequently over the course of a year, provided that the combined amounts of support provided under the RCF does not exceed the annual limit on access under this facility.
Executive Board Assessment [1]
Executive Directors welcomed the opportunity to consider proposals to raise the limits on annual access to Fund resources on a temporary basis. They noted that the COVID‑19 pandemic had triggered a uniquely severe synchronized shock across the global economy and an ensuing surge in requests for financial support under the Fund’s emergency financing instruments. While access limits under these instruments had already been increased temporarily on April 6 as part of the Fund’s COVID‑19 response, Directors recognized that many countries, in seeking to contain the impact of the pandemic and to lay the basis for economic recovery, would likely need additional financial support from the Fund in the coming year.
Against this background, Directors supported increases in the annual access limits in the General Resources Account (GRA) from 145 to 245 percent of quota, and under the Poverty Reduction and Growth Trust (PRGT) from 100 percent to 150 percent of quota, on a temporary basis through April 6, 2021. They also supported a temporary increase in the exceptional annual access limit under the PRGT by 50 percent of quota to 183.33 percent of quota for the same period. While a few Directors would have preferred more moderate increases, many other Directors would have supported a larger increase in the normal annual access limit under the PRGT, in line with the increase in the limit to access to GRA resources. Directors highlighted the need to secure sufficient subsidy resources to ensure the self‑sustainability of the PRGT and looked forward to discussing possible funding options in the upcoming review of concessional financing. Directors also looked forward to the planned discussion of a policy on enhanced safeguards for high‑level access to combined GRA and PRGT resources. They took note of the clarifications as to how annual access should be calculated in applying the relevant annual access limits.
Directors agreed to suspend, on a temporary basis, the limit on the number of disbursements under the Rapid Credit Facility (RCF) within a 12‑month period through April 6, 2021. They acknowledged that, with the temporary doubling of the limit on annual access to resources under the exogenous shocks window of the RCF, the current limit on the number of disbursements unduly constrains the flexibility with which the RCF could be used to support member countries.
Given prevailing uncertainties, Directors agreed to review the decisions adopted today before the end of 2020, taking account of the initial experience with the use of the higher access limits and of the global economic outlook at that juncture.
Directors acknowledged that possible modifications to the cumulative limits on overall access to the GRA and the PRGT would be considered in a broader discussion of the Fund’s risk tolerance in the coming months. Many Directors expressed disappointment that the case for increasing these limits was not proposed for consideration in the current context, while many other Directors opposed or urged caution in considering a change that could weaken important safeguards and pose substantial risks to the Fund. Directors also recognized that these cumulative access limits do not set a ceiling on the amount of financing that a member can obtain from the Fund but rather serve as a trigger for additional scrutiny under the exceptional access framework, with the exception of hard access caps in the PRGT. Directors looked forward to an early discussion of the Fund’s precautionary balances.
Directors underscored that access limits are key elements of the Fund’s risk management framework, providing an important safeguard to Fund resources and preserving their revolving nature and catalytic role. They noted that, notwithstanding higher access limits to cover the pandemic period, judgment continues to be needed in determining the amount of access in individual arrangements, including in assessing the member’s balance of payments need, repayment capacity, and strength of adjustment efforts. Directors stressed the importance of enhanced scrutiny and additional safeguards for exceptional access cases. Although the increased access limits heighten risks to the Fund, many Directors pointed to potential risks from the failure of the Fund to provide adequate financial support to its members.
[1] At the conclusion of the discussion, the Managing Director, as Chairman of the Board, summarizes the views of Executive Directors, and this summary is transmitted to the country’s authorities. An explanation of any qualifiers used in summings up can be found here: http://www.IMF.org/external/np/sec/misc/qualifiers.htm.
Compliments of the IMF.

The EU is providing additional funding and flexibility in the use of the structural funds to help member states’ recovery efforts following the COVID-19 outbreak.
EU ambassadors, meeting within the Committee of Permanent Representatives, today endorsed the Council’s partial position on REACT-EU, the EU initiative with the biggest impact in the short to medium term, as well as on a series of amendments to long-term legislative proposals.

We must ensure that European regions not only survive the crisis but emerge stronger from it. In this respect, the prompt adoption of REACT-EU will help deliver support to regions and territories quickly and help prevent the widening of disparities as a result of the pandemic.Peter Altmaier, Federal Minister for Economic Affairs and Energy, German presidency of the Council

REACT-EU will provide exceptional additional resources to member states, to be used for bolstering the economy and jobs in the worst affected regions and preparing a green, digital and resilient recovery.
The resources will be made available in 2021 and 2022, serving as a bridge from the emergency COVID-19 response to the next phase, of repairing the economy in the long term.
REACT-EU will primarily support health services and SMEs, the preservation of jobs and job creation, particularly for people in vulnerable situations, youth employment, and access to social services. Member states may also increase allocations for programmes for the most deprived.
Cohesion package 2021-2027
Also today, EU ambassadors endorsed the Council’s updated partial position, which takes into account the amendments to the structural funds for the 2021-2027 programming period.
The changes to the legislative package, which was originally proposed in May 2018, introduce measures aimed at tackling the socio-economic fallout of the COVID-19 outbreak.
Consequently, the Council’s position endorses the role of culture and tourism in economic development, social inclusion and social innovation. This means that member states will be able to invest more in these two sectors, which have been severely hit by the pandemic.
In addition, a new provision allows for the adoption of temporary measures for flexible use of the funds in future times of crisis.
The Council’s position excludes the financial elements of the proposals, including REACT-EU, which still need to be added to the negotiating mandate following the overall agreement reached on 21 July on the EU’s long-term budget and recovery package.
Next steps
Once the European Parliament has agreed on its position on the legislative proposals, negotiations will begin between the two institutions with the aim of reaching an agreement.
Council’s partial mandate on REACT-EU, 17 July 2020
Council’s partial mandate on ERDF and Cohesion Fund, 17 July 2020
Council’s partial mandate on ESF Plus, 17 July 2020
Council’s partial mandate on the Common Provisions Regulation, 17 July 2020
Compliments of the Council of the EU.

EU Leaders agreed a package of €1,824.3 billion combining the multiannual financial framework and the extraordinary recovery fund Next Generation EU that will help the EU to rebuild after the COVID-19 pandemic and will support investments in the green and digital transitions.

We have reached a deal on the recovery package and the European budget. These were, of course, difficult negotiations in very difficult times for all Europeans. A marathon which ended in success for all 27 member states, but especially for the people. This is a good deal. This is a strong deal. And most importantly, this is the right deal for Europe, right now.President Michel at the press conference of the European Council

The socio-economic fallout from the COVID-19 crisis requires a joint and innovative effort at EU level in order to support the recovery and resilience of the member states’ economies.
To achieve the desired result and be sustainable, the recovery effort should be linked to the traditional multiannual financial framework (MFF), which has shaped EU budgetary policies since 1988 and offers a long-term perspective.
EU leaders have agreed to a comprehensive package of €1 824.3 billion which combines MFF and an extraordinary recovery effort under the Next Generation EU (NGEU) instrument.
Long-term EU budget
The new Multiannual Financial Framework (MFF) will cover seven years between 2021 and 2027. The MFF, reinforced by Next Generation EU, will also be the main instrument for implementing the recovery package to tackle the socio-economic consequences of the COVID-19 pandemic.
The size of the MFF – €1 074.3 billion – will allow the EU to fulfill its long-term objectives and preserve the full capacity of the recovery plan. This proposal is largely based on the proposal made by President Michel in February, which reflected two years of discussions between member states.
The MFF will cover the following spending areas:
single market, innovation and digital
cohesion, resilience and values
natural resources and the environment
migration and border management
security and defence
neighbourhood and the world
European public administration
Recovery fund
Next Generation EU will provide the Union with the necessary means to address the challenges posed by the COVID-19 pandemic. Under the agreement the Commission will be able to borrow up to €750 billion on the markets. These funds may be used for back-to-back loans and for expenditure channelled through the MFF programmes. Capital raised on the financial markets will be repaid by 2058.
The amounts available under NGEU will be allocated to seven individual programmes:
Recovery and Resilience Facility (RFF)
ReactEU
Horizon Europe
InvestEU
Rural Development
Just Transition Fund, and
RescEU.
Loans and grants
€390 billion from the package will be distributed in the form of grants to member states and €360 billion in loans.
Allocation from the Recovery and Resilience Facility (RRF)
The plan ensures the money goes to the countries and sectors most affected by the crisis: 70% under the grants of the Recovery and Resilience Facility will be committed in 2021 and 2022 and 30% will be committed in 2023.
Allocations from the RRF in 2021-2022 will be established according to the Commission’s allocation criteria taking into account  member states’ respective living standards, size and unemployment levels.
For 2023 allocations, the unemployment criterion will be replaced by the drop in GDP in 2020 and 2021.
Governance and conditionality
In line with the principles of good governance, member states will prepare national recovery and resilience plans for 2021-2023. These will need to be consistent with the country-specific recommendations and contribute to green and digital transitions. More specifically, the plans are required to boost growth and jobs and reinforce the “economic and social resilience” of EU countries. The plans will be reviewed in 2022. The assessment of these plans will be approved by the Council by a qualified majority vote on a proposal by the Commission.
The disbursement of grants will take place only if the agreed milestones and targets set out in the recovery and resilience plans are fulfilled.
If, exceptionally, one or more member states consider that there are serious deviations from the satisfactory fulfillment of the relevant milestones and targets, they may request that the President of the European Council refer the matter to the next European Council.
Climate action
30% of the total expenditure from the MFF and Next Generation EU will target climate-related projects. Expenses under the MFF and Next Generation EU will comply with the EU’s objective of climate neutrality by 2050, the EU’s 2030 climate targets and the Paris Agreement.
Rule of law
The Union’s financial interests will be protected in accordance with the general principles embedded in the Union Treaties, in particular the values referred to in Article 2 TEU. The European Council also underlines the importance of the respect of the rule of law. Based on this background, a regime of conditionality to protect the budget and Next Generation EU will be introduced.
Rebates
Lump sum rebates on the annual gross national income-based contribution will be maintained for Denmark, Germany, the Netherlands, Austria and Sweden.
Own resources
EU leaders agreed to provide the EU with new resources to pay back funds raised under Next Generation EU. They agreed on a new plastic levy that will be introduced in 2021. In the same year the Commission is expected to put forward a proposal for a carbon adjustment measure and a digital levy, both of which would be introduced by the end of 2022.
The Commission would then come back with a revised proposal on the EU emissions trading scheme (ETS), possibly extending it to the aviation and maritime sectors. There may also be other new resources, such as a financial transaction tax. The proceeds of the new own resources introduced after 2021 will be used for early repayment of NGEU borrowing.
A €5 billion Brexit reserve will be established to support the member states and economic sectors hardest hit by Brexit.
Useful Links
European Council Conclusions (17-21 July 2020)
Remarks by President Charles Michel after the Special European Council, 17-21 July 2020
Opening remarks by President von der Leyen at the joint press conference with President Michel following the Special European Council meeting of 17-21 July 2020
Compliments of the Delegation of the European Union in the United States.

The Council today adopted new rules to improve the way crowdfunding platforms operate across the EU.
The new framework is part of the capital markets union’s project which aims at providing an easier access to new financing sources. It will remove barriers for crowdfunding platforms to provide their services cross-border by harmonising the minimum requirements when operating in their home market and other EU countries. It will also increase legal certainty through common investor protection rules.
The new rules will cover crowdfunding campaigns of up to EUR 5 million over a 12 month period. Larger operations will be regulated by MiFID and the prospectus regulation. Reward- and donation-based crowdfunding fall outside the rules’ scope since they cannot be regarded as financial services.
The adopted rules provide a high level of investor protection, whilst taking into account compliance cost for providers: they set out common prudential, information and transparency requirements and include specific requirements for non-sophisticated investors. The rules for EU crowdfunding businesses will be tailored depending on whether they provide their funding in the form of a loan or an investment (through shares and bonds issued by the company that raises funds).
The framework defines common authorisation and supervision rules for national competent authorities. The European Securities and Markets Authority (ESMA) will have an enhanced role to facilitate coordination and cooperation, through a binding dispute mediation mechanism and the development of technical standards.
Background and process
Crowdfunding is an emerging alternative form of financing that connects, typically via the Internet, those who can give, lend or invest money directly with those who need financing for a specific project. For start-ups and other SMEs, bank lending is often expensive or difficult to access due to the lack of credit history or a lack of tangible collateral. Crowdfunding can be a useful substitute funding source, in particular in the early stages of business.
Formally, the Council today adopted its position at first reading. The regulation now needs to be adopted by the European Parliament at second reading before it can be published in the Official Journal and enter into force.
Text of the crowdfunding directive, 8 July 2020
Text of the crowdfunding regulation, 8 July 2020
Compliments the European Council.

Thank you very much.
Ladies and gentlemen,
First of all, I would like to thank the President of the European Council – Charles Michel – for his enormous efforts and perseverance. This European Council’s success is also his success.
And I would like to thank Angela Merkel for her exceptional guidance. We negotiated for four long days and nights – more than 90 hours – but it was worth it. This agreement is a signal that Europe is capable of taking action.
A popular prejudiced view of Europe is that our reactions are ‘too little, too late’. This proves otherwise. At the end of April, the European Council tasked us with drawing up a recovery package. Today, only two months later, we have NextGenerationEU and it has the approval of the European Council.
In the history of the EU, this is an all-time record for a new budgetary instrument. And NextGenerationEU is impressive in its scope, worth more than EUR 1.8 trillion. That is more than 5% of the EU 27’s GDP. Europe still has the courage and imagination to think big!
Exhausted though we all may be, we are also conscious that this is an historic moment in Europe. We find ourselves in one of the most serious of economic and public health crises. And yet, following tough negotiations, Europe has successfully responded in force to this unprecedented crisis. This response draws on the EU budget and combines solidarity with responsibility.
‘Solidarity’, because all 27 Member States stand jointly behind NextGenerationEU. And ‘responsibility’, because NextGenerationEU not only leads the way out of this crisis – it can also lay the foundations for a modern, more sustainable Europe.
I want to emphasise two more points. We have now the New Own Resources tightly linked to the repayment. This is a big step forward with a clear timetable. Member States will benefit as they will contribute less to repay the investments. And the New Own Resources will strengthen the European Union also in the long term. I am glad that we managed to safeguard this achievement during the whole negotiations.
And Europe’s recovery will be green! The new budget will power the European Green Deal. It will accelerate the digitalisation of Europe’s economy. Thanks to NextGenerationEU, national reforms will be boosted. We invest in Europe’s future.
And finally, unlike in previous crises, this time, Member States have not opted for an intergovernmental solution. But they have entrusted the European Commission with Europe’s recovery. We will together manage a total of EUR 1.8 trillion. The bulk of the money will be channelled through the programmes in which the European Parliament is involved. NextGenerationEU comes with a great responsibility. We are determined to bring about reforms and investment in Europe.
Nevertheless, I must also mention a difficult point: In their search for a compromise, leaders have made far-reaching adjustments in the new MFF and NextGenerationEU, for example in health, migration, external action and InvestEU; they have not taken up the Solvency Instrument. This is regrettable. It decreases the innovative part of the budget, even if more than 50% of the overall budget – MFF and NextGenerationEU – will support modern policies.
Finally, to conclude: Europe as a whole has now a big chance to come out stronger from the crisis. Today, we have taken a historic step, we all can be proud of. But another important step remains ahead of us. First and foremost, we now have to work with the European Parliament to secure agreement. We have a lot of work ahead of us, but tonight is a big step forward towards recovery.
Thank you!
Compliments of the European Commission.

Opening remarks by European Commission President von der Leyen | Brussels | July, 21 2020
Thank you very much.
Ladies and gentlemen,
First of all, I would like to thank the President of the European Council – Charles Michel – for his enormous efforts and perseverance. This European Council’s success is also his success.
And I would like to thank Angela Merkel for her exceptional guidance. We negotiated for four long days and nights – more than 90 hours – but it was worth it. This agreement is a signal that Europe is capable of taking action.
A popular prejudiced view of Europe is that our reactions are ‘too little, too late’. This proves otherwise. At the end of April, the European Council tasked us with drawing up a recovery package. Today, only two months later, we have NextGenerationEU and it has the approval of the European Council.
In the history of the EU, this is an all-time record for a new budgetary instrument. And NextGenerationEU is impressive in its scope, worth more than EUR 1.8 trillion. That is more than 5% of the EU 27’s GDP. Europe still has the courage and imagination to think big!
Exhausted though we all may be, we are also conscious that this is an historic moment in Europe. We find ourselves in one of the most serious of economic and public health crises. And yet, following tough negotiations, Europe has successfully responded in force to this unprecedented crisis. This response draws on the EU budget and combines solidarity with responsibility.
‘Solidarity’, because all 27 Member States stand jointly behind NextGenerationEU. And ‘responsibility’, because NextGenerationEU not only leads the way out of this crisis – it can also lay the foundations for a modern, more sustainable Europe.
I want to emphasise two more points. We have now the New Own Resources tightly linked to the repayment. This is a big step forward with a clear timetable. Member States will benefit as they will contribute less to repay the investments. And the New Own Resources will strengthen the European Union also in the long term. I am glad that we managed to safeguard this achievement during the whole negotiations.
And Europe’s recovery will be green! The new budget will power the European Green Deal. It will accelerate the digitalisation of Europe’s economy. Thanks to NextGenerationEU, national reforms will be boosted. We invest in Europe’s future.
And finally, unlike in previous crises, this time, Member States have not opted for an intergovernmental solution. But they have entrusted the European Commission with Europe’s recovery. We will together manage a total of EUR 1.8 trillion. The bulk of the money will be channelled through the programmes in which the European Parliament is involved. NextGenerationEU comes with a great responsibility. We are determined to bring about reforms and investment in Europe.
Nevertheless, I must also mention a difficult point: In their search for a compromise, leaders have made far-reaching adjustments in the new MFF and NextGenerationEU, for example in health, migration, external action and InvestEU; they have not taken up the Solvency Instrument. This is regrettable. It decreases the innovative part of the budget, even if more than 50% of the overall budget – MFF and NextGenerationEU – will support modern policies.
Finally, to conclude: Europe as a whole has now a big chance to come out stronger from the crisis. Today, we have taken a historic step, we all can be proud of. But another important step remains ahead of us. First and foremost, we now have to work with the European Parliament to secure agreement. We have a lot of work ahead of us, but tonight is a big step forward towards recovery.
Thank you!

Compliments of the European Commission
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Details on the EU Recovery Plan “Next Generation EU” can be found here: https://ec.europa.eu/info/live-work-travel-eu/health/coronavirus-response/recovery-plan-europe_en.

EU leaders agreed to borrow €750 billion for a EU recovery fund, composed of €390 billion in grants & €360 billion in loans, attached to a new €1.074 trillion 7-year budget, the Multiannual Financial Framework (#MFF), bringing the total financial package to €1.82 trillion.