The Commission is launching today the first call for proposals under the Innovation Fund , one of the world’s largest programmes for the demonstration of innovative low-carbon technologies, financed by revenues from the auction of emission allowances from the EU’s Emissions Trading System. The Innovation Fund will finance breakthrough technologies for renewable energy, energy-intensive industries, energy storage, and carbon capture, use and storage. It will provide a boost to the green recovery by creating local future-proof jobs, paving the way to climate neutrality and reinforcing European technological leadership on a global scale.

“This call for proposals comes at just the right time. The EU will invest €1 billion in promising, market-ready projects such as clean hydrogen or other low-carbon solutions for energy-intensive industries like steel, cement and chemicals. We will also support energy storage, grid solutions, and carbon capture and storage. These large-scale investments will help restart the EU economy and create a green recovery that leads us to climate neutrality in 2050.”Executive Vice-President Frans Timmermans

For the period 2020-2030, the Innovation Fund will allocate around €10 billion from the auctioning of allowances under the EU Emissions Trading System, in addition to undisbursed revenues from the Innovation Fund’s predecessor, the NER 300 programme.
The first call will provide grant funding of €1 billion to large-scale projects for clean technologies to help them overcome the risks linked to commercialisation and large-scale demonstration. This support will help new technologies to reach the market. For promising projects which are not yet ready for market, a separate budget of €8 million is set aside for project development assistance.
The call is open for projects in eligible sectors from all EU Member States, Iceland and Norway. The funds can be used in cooperation with other public funding initiatives, such as State aid or other EU funding programmes. Projects will be evaluated according to their potential to avoid greenhouse gas emission, innovation potential, financial and technical maturity, and potential for scaling up and cost efficiency. The deadline for submission of applications  is 29 October 2020. Projects can apply via the EU Funding and Tenders portal where more details on the overall procedure are available.
Background
The Innovation Fund aims to create the right financial incentives for companies and public authorities to invest now in the next generation of low-carbon technologies and give EU companies a first-mover advantage to become global technology leaders.
The Innovation Fund will be implemented by the Executive Agency for Networks and Innovation (INEA), while the European Investment Bank will provide project development assistance to promising projects that are not ready for full application.
More Information:
Innovation Fund website
INEA website
Funding and Tenders portal
European Green Deal
European strategic long-term vision for a prosperous, modern, competitive and climate neutral economy
Compliments of the European Commission.

From EU Trade Commissioner Phil Hogan |
Introduction
I spent the lockdown at the heart of the EU, where all the action is. I worked every day in Brussels, to keep the bays moving.
Right now everyone, be it companies or otherwise is evaluating his or her Trade Policy. It will not be business as usual. Major changes are taking place.
Fundamentally, every company will have to look at their mission statements to adapt to the reality ahead. For the EU, we will focus on sustainability, with the new EU Green Deal, and new technologies. We have also learned we are vulnerable and we know now that we need to diversify and change.
We identified that we were too dependent on certain regions. For example, we will have to rely less on PPE from China and less on pharmaceuticals from India.
De-globalisation is not the solution – we will never be self-sufficient in the EU. We are mindful of the fact we have to address certain areas, like medical/pharmaceuticals. We need to work with the G20 and within the WTO to move ahead. I sent some proposals to the US, but I get the impression they are more protectionist, and looking to increase tariffs, not lower them.
Transatlantic Relations
Together, the EU and the US can do a lot of good in a short period of time, if there is sufficient political will. By working together, we can do a lot for trade and technology.  However, it takes two to tango.
It seems to me that both President Trump  and Vice President Biden want to see America great again. So would the EU. A stronger EU means a stronger US.  Remember, 65 per cent of all EU FDI goes to US. Politicians seem to be playing against the breeze with the level of economic interconnectedness.
My message to Ambassador Lightizer is that we can reduce tariffs on pharmaceutical and medical, we can frame standards on technology and we can work together on WTO. As soon as the US and EU came together, China did a 180-degree spin. We are losing a lot by not working together.
WTO Reform
We need to reform the organisation, but I fundamentally disagree with the US’s approach to WTO.  Ironically, it was Ambassador Lighthizer who said, “if we did not have it, we would have to set it up.” So let’s work together !
My question to the political representatives of each WTO country is “do you want the WTO and, if so, what is its purpose?”
We need to reinvigorate the WTO politically. It is in a state of crisis, with major reform required and the next DG has to be someone with political experience.
To ensure the political discussion around WTO, the member country Heads of Government need to reiterate their support for rules-based trade.  The benefits of trade need to be distributed in tax and benefit systems in the domestic sphere. Each region of a WTO country needs to reap benefits of trade.  We always hear from the losers in trade, not the winners.
At end of the day, we all need to take responsibility, we need to speak up for the right thing. In the EU, every €1 billion of exports in rural areas in agri-food creates 14 000 jobs. I am sure the same is true in the US.
Vulnerabilities for EU Trade
We are responding to our vulnerabilities, particularly around medical, pharmaceuticals and digital trade. We are going to assist companies to do more in the EU and in our neighbourhood. It is a finite number of sectors. We will also want to see a rules-based approach. We will be establishing a Chief Trade Enforcement Officer in the future and the EU will be more assertive in terms of our trade policy.
EU-UK Future Relationship
The divorce is over. We are now talking about how to live together. Big decisions have already been made. The UK is out of the Customs Union and out of the Single Market. We are trying to mitigate the damage of this change, establish regulatory agreements with minimal disruption and damage to businesses, with special attention to Financial Services, Data and Fisheries.
While I can really understand the desire for a UK independent trade policy, they must remember they are next-door neighbours of the EU – not 5 000km away, like Canada.
PM Boris Johnson says there will be a quick and easy US-UK deal. It will not be a deal, it will be a framework. There will be a photo opportunity at some stage.
EU – Latin American Trade
Look at the EU-Mercosur 2019 deal. It is the largest geopolitical agreement ever made. It’s another example of where we hear from the losers, not the winners. €5 billion of trade subsidies are being eliminated are well as the elimination of barriers to trade. The agreement ensures that countries like Brazil have signed-up to the Paris Climate Agreement.
In addition to Mercosur, we are also upgrading existing agreements with Chile, Colombia, Ecuador and Mexico.
Closing Remarks
I’m very happy to join this useful collaboration between the US and EU. Keep up the good work and, if you can give any recommendations to the White House, tell them we’re open for business and dialogue so that we can work together.
Compliments of the European Commission.

The EUIPO begins its next strategic cycle with the launch of its Strategic Plan 2025 on 1 July 2020.
After two rounds of consultation with stakeholders, the Strategic Plan was adopted by the Office’s Management Board in 2019, and begins its implementation period today.
The Strategic Plan 2025 consists of projects and activities grouped under three strategic drivers, linked to an overarching vision of ‘delivering IP value for businesses and citizens in Europe.’
The first strategic driver centres on the Office’s cooperation activities both in the EU and globally, and includes both the improvement of existing tools and services and the development of new ones. It also encompasses support for IP enforcement throughout the EU.
The second driver focuses on providing advanced customer-centric services by leveraging new technologies and working methods to increase the quality of the Office’s existing products and services.
The third driver includes the integration of state of the art digital technologies like Artificial Intelligence, machine learning and blockchain into the Office’s activities, to increase its innovative capacity.
In addition, in response to the COVID-19 crisis and in the framework of the EU’s actions to combat it, the EUIPO has today launched the Ideas Powered for Business hub, which is aimed at SMEs. The hub contains a number of services for smaller businesses, including information on trade marks and designs and e-learning.
The hub is also the access point to free personalized intellectual property support, which, depending on the case, can include a new IP pro-bono scheme, which matches firms with legal experts or an effective dispute resolution service.
The Ideas Powered for Business hub is a first delivery of the SME Programme, a key project under the Strategic Plan 2025, which aims to assist small and medium enterprises to get the most out of their IP.
Compliments of the European Union Intellectual Property Office.

While the corona pandemic continues, Germany took over the six-month presidency of the Council of the EU on 1 July. We asked German MEPs for their expectations.

The coronavirus represents a significant challenge for the EU and immediate management of the pandemic and recovery are at the heart of the German programme for the presidency.
The aim is to reach a swift agreement on the recovery fund and the EU’s budget 2021-2027. Germany intends to make progress on climate protection, through the European Green Deal, and economic and social digitalisation. With a focus on Africa and relations with China, it also wants Europe to take more global responsibility and strengthen its role in the world. Another priority will be future EU-UK-relations.

German priorities for the presidency

Overcoming Covid-19 pandemic; economic and social recovery

A stronger and more innovative Europe

A fair Europe

A sustainable Europe

A Europe of security and common values

A strong Europe in the world

We asked German MEPs what they expect from the German presidency.
Daniel Caspary (EPP): “The EU multi-annual budget for 2021-2027 and the recovery fund will determine whether the EU emerges stronger from the corona crisis. The German presidency of the Council and Chancellor Angela Merkel can bring experience and expertise on European issues, a positive sign for the controversial and hard discussions.” Berlin can also provide an “important impulse” for the success of the negotiations on the EU-UK agreement, he said.
Jens Geier (S&D) sees potential for change in the Covid-19 crisis: “The federal government’s strong proposal for a recovery fund is an opportunity to make Europe fairer, more social and sustainable. In line with the European Green Deal, the recovery fund should promote sustainable investments in renewable energy and digitalisation. The fact that regions in need should also receive grants rather than just loans for reconstruction is a major step towards a strong Europe.”
“Europe now needs the courage to rebuild,” said Nicola Beer (Renew Europe): “Germany will be measured, among other things, by whether it can quickly kick-start the economic recovery, relying on innovation and small and medium-sized enterprises.“ On Brexit, she said there was a need ”not to slide into a no-deal scenario“. The EU should also “finally live up to its geopolitical aspirations, externally with a strong common voice for peace, disarmament, human rights and trade, internally by releasing the blockage in asylum and migration policies“.
For Sven Giegold (Greens/EFA), climate protection remains a priority: “The climate crisis is not taking a corona break. The German presidency of the Council must therefore become a climate presidency in corona times. During the German presidency, we need to conclude the negotiations for an EU climate law with improved greenhouse gas reduction targets.”
German interests should not come second, said Jörg Meuthen (ID). “It is already the debt presidency,” he said. Germany should “reduce the EU to its core tasks and the budget to the minimum necessary, prevent EU taxing competence and instead include, as a sign of genuine solidarity, the per capita wealth of member states in the calculation of financial redistribution“.
Helmut Geuking (ECR) hopes that the German presidency of the Council will “finally fulfil the Child Guarantee and launch a European child benefit”. “Only with strong families can a strong and social Europe emerge that can hold its own in the globalised world in the future.”
The presidency could “lay the foundations for a solidarity-based EU,” said Martin Schirdewan (GUE/NGL). “Everyone should contribute their fair share to the social and economic recovery and revival of society. This means the introduction of a digital tax, a comprehensive financial transaction tax and a one-off wealth tax for the super-rich.”
Compliments of the European Parliament.

Today the Commission presents the European Skills Agenda for sustainable competitiveness, social fairness and resilience. It sets ambitious, quantitative objectives for upskilling (improving existing skills) and reskilling (training in new skills) to be achieved within the next 5 years. Its 12 actions focus on skills for jobs by partnering up with Member States, companies and social partners to work together for change, by empowering people to embark on lifelong learning, and by using the EU budget as a catalyst to unlock public and private investment in people’s skills.
The aim is to ensure that the right to training and lifelong learning, enshrined in the European Pillar of Social rights, becomes a reality all across Europe, from cities to remote and rural areas, to the benefit of everyone. The Commission is placing skills at the heart of the EU policy agenda, steering investment in people and their skills for a sustainable recovery after the coronavirus pandemic. Businesses need workers with the skills required to master the green and digital transitions, and people need to be able to get the right education and training to thrive in life.
Margaritis Schinas, Vice-President for Promoting the European Way of Life, said: “This unprecedented crisis needs an unprecedented answer. One that will serve us today and for many years to come. Today, the European Commission calls on EU Member States to invest in skills. The billions of EU funding put forward in the EU Recovery Plan and future long-term EU budget provide a unique opportunity to do so. We already know that skills are what allow people and our economies to thrive. Now, it is time to join hands and unlock a skills revolution, leaving nobody behind.”
Nicolas Schmit, Commissioner for Jobs and Social Rights, said: “The skilling of our workforces is one of our central responses to the recovery, and providing people the chance to build the skillsets they need is key to preparing for the green and digital transitions. It gives everyone the possibility to benefit from new opportunities in a fast-moving labour market.”
Skills for jobs in a green and digital economy
The green and digital transitions as accompanied by demographic trends are transforming how we live, work and interact. We want to ensure people have the skills they need to thrive. The coronavirus pandemic has accelerated these transitions and brought new career challenges for many people in Europe. In the aftermath of the crisis, many Europeans will need to retrain in a new skill or improve their existing skills to adapt to the changed labour market. The Skills Agenda aims to improve the relevance of skills in the EU to strengthen sustainable competitiveness, ensure social fairness and build our resilience. It does this through 12 “actions”.
A Pact for Skills
Strengthening skills intelligence
EU support for strategic national upskilling action
Proposal for a Council Recommendation on Vocational Education and Training for sustainable competiveness, social fairness and resilience
Rolling out the European universities initiative and upskilling scientists
Skills to support the green and digital transitions
Increasing STEM graduates and fostering entrepreneurial and transversal skills
Skills for Life
Initiative on Individual Learning Accounts
A European approach to micro-credentials
New Europass Platform
Improving the enabling framework to unlock Member States’ and private investments in skills
More details on each of the 12 flagship actions can be found in the accompanying Q&A.
The new Europass platform is launched today as the first implemented action of the Skills Agenda. As of today, it offers guidance in CV-writing, suggests tailored jobs and learning opportunities, provides information on trends in skills, and is available in 29 languages.
Also today the Commission adopts its proposal for a Council Recommendation on Vocational Education and Training.
Ambitious objectives
As part of its bold new skills policy, the Commission has set ambitious objectives for the next 5 years. They are based on existing indicators, which will allow to monitor progress yearly through the European Semester. At this stage, no quantitative indicators on green skills exist, so the Commission will develop new ones.
Indicators
Objectives for 2025
Current level (latest year available)
Increase (in %)
Participation of adults aged 25-64 in learning over a period of 12 months
50%
38% (2016)
+ 32%
Participation of low-qualified adults aged 25-64 in learning over a period of 12 months
30%
18% (2016)
+ 67%
Share of unemployed adults 25-64 with a recent learning experience
20%
11% (2019)
+ 82%
Share of adults 16-74 having at least basic digital skills
70%
56% (2019)
+ 25%
This means we should see 540 million training activities for adults by 2025, including 60 million for low-qualified adults, and 40 million for unemployed people. The number of adults with basic digital skills should increase to 230 million.
Unlocking investment in people’s skills
To implement the actions and meet the objectives of the Skills Agenda, the EU will need estimated additional public and private investments in skills of around €48 billion annually. The Commission’s proposal for NextGenerationEU provides significant resources as part of a major budgetary initiative to tackle the economic and social consequences of the crisis.
EU funds can act as a catalyst for investing in people’s skills. In the context of the EU Recovery Plan, unprecedented financial resources are proposed to support a sustainable recovery, and investment in skills should be at the heart of these efforts. Throughout the 2021-2027 period, EU instruments such as the European Social Fund Plus with a proposed budget of €86 billion, Erasmus with a proposed budget of €26 billion and InvestEU’s Social Investment and Skills window with a proposed budget of €3.6 billion can all be mobilised to help people gain better or new skills.The new Digital Europe Programme with a proposed budget €9.2 billion will invest in advanced digital skills development to master technologies. Moreover, the Recovery and Resilience Facility, powered by €560 billion in grants and loans, provides Member States with ample opportunity to fund upskilling and reskilling initiatives, with the appropriate reforms in place.
Background
The move to a resource-efficient, circular, digitised and low-carbon economy could create more than 1 million jobs by 2030. Artificial intelligence and robotics alone will create almost 60 million new jobs worldwide in the next 5 years. Other jobs may change or even disappear. The coronavirus pandemic has amplified the skills trends in the labour market, accelerating both the need and opportunities for change. In a fast-moving labour market and society, lifelong learning must become a reality.
Today’s initiatives build on the European Pillar of Social Rights, proclaimed by EU institutions and leaders in November 2017 and the Communication on a Strong Social Europe for Just Transitions published in January 2020.
For More Information
Questions and Answers on a European Skills Agenda for sustainable competitiveness, social fairness and resilience
Factsheet: European Skills Agenda
Communication: “European Skills Agenda for sustainable competitiveness, social fairness and resilience”
Commission proposal for a Council Recommendation on Vocational Education and Training
Factsheet on Vocational Education and Training
Visit the new Europass platform
Have Your Say: public consultation page for social Europe
Compliments of the European Commission.

Today the European Commission is taking action to give young people all possible opportunities to develop their full potential to shape the future of the EU, and thrive in the green and digital transitions. The coronavirus pandemic has emphasised the often difficult start many young people face in the labour market. We need to act fast. Now is the time to direct our attention towards the next generation.
The Commission is using this opportunity to ingrain the green and digital transitions in the DNA of the EU’s youth and employment policies. With NextGenerationEU and the future EU budget, the Commission already proposed significant EU financing opportunities for youth employment. It is now for the Member States to prioritise these investments. At least €22 billion should be spent on youth employment support.
Executive Vice-President for an Economy that Works for People, Valdis Dombrovskis, said: “It is more important than ever that we help the next generation of Europeans to thrive and get on the jobs ladder, especially at this time of crisis. We are proposing clear and specific ways forward for our young people to get the professional chances that they deserve. Today’s proposals also set out what EU funding is available to support Member States in boosting youth employment. By investing in the youth of today, we will help to create a competitive, resilient and inclusive labour market for tomorrow.”
Nicolas Schmit, Commissioner for Jobs and Social Rights, said: “Now is the time to carry out much-needed reforms of the support measures we offer to young people. We owe it to the millions of graduates and those taking their early steps on the labour market to mobilise all the support we can. Our youth deserve the very best opportunities possible to develop their full potential.”
Youth Employment Support: a bridge to jobs for the next generation
The Youth Employment Support package is built around four strands that together provide a bridge to jobs for the next generation:
The EU created the Youth Guarantee in 2013 and has since built bridges to the labour market for some 24 million young people. The Commission’s proposal for a Council Recommendation on a Bridge to Jobs reinforces theYouth Guarantee and steps up the outreach to vulnerable young people across the EU, now covering people aged 15 – 29. The Recommendation keeps the pledge that if you sign up to the Youth Guarantee, you will receive an offer of employment, education, apprenticeship or training within four months. Bridge to Jobs will be more inclusive to avoid any forms of discrimination, with a wider outreach to more vulnerable groups, such as youth of racial and ethnic minorities, young people with disabilities, or young people living in some rural, remote or disadvantaged urban areas. It will link in with the needs of companies, providing the skills required – in particular those for the green and digital transitions – and short preparatory courses; and it will provide tailored counselling, guidance and mentoring.
 The Commission’s proposal for a Council Recommendation on vocational education and training aims to make systems more modern, attractive, flexible and fit for the digital and green economy. More agile, learner-centred vocational education and training will prepare young people for their first jobs and gives more adults opportunities to enhance or change their careers. It will help vocational education and training providers to become centres of vocational excellence, while supporting diversity and inclusiveness.
 A renewed impetus for apprenticeships will benefit both employers and young people, adding a skilled labour force to a wide range of sectors. The European Alliance for Apprenticeships has made available more than 900,000 opportunities. The renewed Alliance will promote national coalitions, support SMEs and reinforce the involvement of social partners: trade unions and employers’ organisations. The goal is to sustain the apprenticeship offers now, as apprentices we train now will be highly skilled workers in a few years’ time.
 Additional measures to support youth employment include employment and start-up incentives in the short term, and capacity building, young entrepreneur networks and inter-company training centres in the medium term.
More details on each of these measures can be found in the accompanying Q&A.
The Commission urges Member States to step up youth employment support by making use of the significant funding available under NextGenerationEU and the future EU budget. For example, the EU can help fund:
Start-up grants and loans for young entrepreneurs, mentoring schemes and business incubators
Bonuses for SMEs hiring apprentices
Training sessions to acquire new skills needed on the labour market
Capacity-building of public employment services
Career management training in formal education
Investments in digital learning infrastructure and technology
Background
During the aftermath of the global 2008 financial crisis, youth unemployment went up from 16.0% in 2008 to a peak of 24.4% in 2013. The figures went down since, with record lows of 14.9%, just before the pandemic hit. Nevertheless, youth unemployment has always remained more than twice as high as general unemployment. The latest figures show that youth unemployment stood at 15.4% across the EU in April 2020. Many fear that a spike is just in front of us.
Significant EU funding is available for Member States to implement reforms spearheaded by the initiatives presented today. The European Social Fund Plus will be a key EU financial resource to support the implementation of the youth employment support measures. As part of the Recovery Plan for Europe, the Recovery and Resilience Facility and REACT-EU will provide additional financial support for youth employment.
For more information
Q&A on Youth Employment Support: a bridge to jobs for the next generation
Factsheet on Youth Employment Support
Communication “Youth Employment Support: a bridge to jobs for the next generation”
Commission proposal for a Council Recommendation on a Bridge to Jobs – reinforcing the Youth Guarantee
Commission proposal for a Council Recommendation on Vocational Education and Training
Factsheet on Vocational Education and Training
Compliments of the European Commission.

Consumers across the EU are about to be granted broader opportunities for the collective defence of their rights. Member states’ ambassadors today approved a deal concluded between the Croatian presidency of the Council and the European Parliament on a draft directive on representative actions for the protection of the collective interests of consumers.

The single market is not there solely to provide enhanced business opportunities to traders. It is also meant to provide consumers across the EU with added value in the form of better quality products, greater variety, reasonable prices and high safety standards. The new rules will enable consumers to seek effective judicial protection collectively when traders’ infringements of EU laws deprive them of their rights.Darko Horvat, Croatian Minister of the Economy, Entrepreneurship and Crafts

The directive requires member states to put in place a system of representative actions for the protection of consumers’ collective interests against infringements of Union law. It covers actions for both injunctions and redress measures.
It empowers qualified entities designated as such by member states to seek injunctions and/or redress, including compensation or replacement, on behalf of a group of consumers that has been harmed by a trader who has allegedly infringed one of the EU legal acts set out in the annex to the directive. These legal acts cover areas such as financial services, travel and tourism, energy, health, telecommunications and data protection.
As far as the eligibility criteria for qualified entities are concerned, the directive distinguishes between qualified entities entitled to bring actions in the member state where they have been designated (domestic representative actions) and those entitled to bring actions in any other member state (cross-border representative actions). For domestic actions a qualified entity will have to fulfil the criteria set out in the law of its member state of designation, whereas for cross-border actions it will have to fulfil the harmonised criteria set out in the directive.
As a safeguard against abusive litigation, the directive provides clear rules on the allocation of judicial costs in a representative action for redress based on the ‘loser pays’ principle. Furthermore, with a view to avoiding conflicts of interest, it imposes on qualified entities a number of transparency requirements, in particular as regards their funding by third parties.
Member states will have 24 months from the entry into force of the directive to transpose it into national law, as well as an additional 6 months to start applying these provisions.
The directive will apply to representative actions brought on or after the date of its application.
Next steps
On the basis of the agreed text and after the usual legal linguistic scrutiny, the Council will adopt its position at first reading. The European Parliament will then approve the Council’s position at first reading and the directive will be deemed to have been adopted.
Background
The directive was proposed by the Commission in April 2018 as part of the Commission’s ‘New deal for consumers’ package, which aimed to ensure fair and transparent rules for EU consumers. The directive on the better enforcement and modernisation of EU consumer protection rules, which was also proposed under the same package, was adopted on 27 November 2019.
Agreed text of the directive on representative actions
Directive on the better enforcement and modernisation of EU consumer protection rules
Compliments of the Council of the European Union.

President Ursula von der Leyen announced a new pledge of €4.9 billion by Team Europe, with the European Investment Bank, for universal access to coronavirus vaccines, tests and treatments. Read the transcript of her first statements during the ‘Global Goal: Unite for our Future’ Summit. The event is ongoing and can be watched here.
On the world’s roadmap for ending this pandemic and the needs for investments
We will only end this pandemic when it has been ended everywhere. That means every person in the world having access to tests, treatments and vaccines, no matter where they live, where they are from or what they look like. For that, we need to invest in producing vaccines at unprecedented speed and scale. And a task of this size can only happen if the world unites. We need our best scientists to work together. We need our global health organisations to join forces. And we need governments, business and philanthropists to step in and provide funding. Tens of billions are required. This is why on 4 May I launched a pledging marathon to bring world leaders together. We raised almost 10 billion euro, And I am so grateful to those who pledged money. But we need more. This is why the European Commission teamed up with Global Citizen and with artists. I trust their power to bring people together, mobilise their energy and trigger change. We need to rebuild communities devastated by coronavirus in a fair and just way. This is why I am happy to announce that Team Europe today pledges another €4.9 billion to help vulnerable countries finance their recovery from the pandemic. This is thanks to the close partnership between the European Commission and the European Investment Bank.
On vaccine nationalism
I am a firm believer in vaccine multilateralism. To think that you can beat this virus by vaccinating only your own people while neglecting the others, is just plain wrong. We live in a very connected world. No country will be able to go back to normal while others are still fighting the virus. So, first, we need a vaccine. Then, we need to make this vaccine affordable. For that, I am trying to convince high-income countries to reserve vaccines not only for themselves but also for low- and middle income countries. This is what our campaign ‘Global Goal – Unite for our Future’ is about. This is a stress test for solidarity. And this event gives me hope.
On what today’s summit can achieve
Since this crisis started, we have already achieved a lot. We have built a network of states, global health institutions, philanthropists and businesses to provide a common answer to coronavirus. We started to collect money for a global response. We have built a system to coordinate the efforts of all players involved. Scientists, global health organisations, industry, logistics experts, public authorities. And we did all of this from scratch. None of this existed, none of this was ever done before. But the task will only be completed when vaccines, tests and treatments are available and affordable to every child, woman and man who needs them. Today’s event brings us one big step closer to that aim.
Compliments of the European Commission.

The Federal Reserve Board on Thursday released the results of its stress tests for 2020 and additional sensitivity analyses that the Board conducted in light of the coronavirus event.
“The banking system has been a source of strength during this crisis,” Vice Chair Randal K. Quarles said, “and the results of our sensitivity analyses show that our banks can remain strong in the face of even the harshest shocks.”
In addition to its normal stress test, the Board conducted a sensitivity analysis to assess the resiliency of large banks under three hypothetical recessions, or downside scenarios, which could result from the coronavirus event. The scenarios included a V-shaped recession and recovery; a slower, U-shaped recession and recovery; and a W-shaped, double-dip recession.
In the three downside scenarios, the unemployment rate peaked at between 15.6 percent and 19.5 percent, which is significantly more stringent than any of the Board’s pre-coronavirus stress test scenarios. The scenarios are not predictions or forecasts of the likely path of the economy or financial markets.
In aggregate, loan losses for the 34 banks ranged from $560 billion to $700 billion in the sensitivity analysis and aggregate capital ratios declined from 12.0 percent in the fourth quarter of 2019 to between 9.5 percent and 7.7 percent under the hypothetical downside scenarios. Under the U- and W-shaped scenarios, most firms remain well capitalized but several would approach minimum capital levels. The sensitivity analysis does not incorporate the potential effects of government stimulus payments and expanded unemployment insurance.
In light of these results, the Board took several actions following its stress tests to ensure large banks remain resilient despite the economic uncertainty from the coronavirus event. For the third quarter of this year, the Board is requiring large banks to preserve capital by suspending share repurchases, capping dividend payments, and allowing dividends according to a formula based on recent income. The Board is also requiring banks to re-evaluate their longer-term capital plans.
All large banks will be required to resubmit and update their capital plans later this year to reflect current stresses, which will help firms re-assess their capital needs and maintain strong capital planning practices during this period of uncertainty. The Board will conduct additional analysis each quarter to determine if adjustments to this response are appropriate.
During the third quarter, no share repurchases will be permitted. In recent years, share repurchases have represented approximately 70 percent of shareholder payouts from large banks. The Board is also capping dividend payments to the amount paid in the second quarter and is further limiting them to an amount based on recent earnings. As a result, a bank cannot increase its dividend and can pay dividends if it has earned sufficient income.
The Board also released the results of its full stress test designed before the coronavirus. The results from that test are comparable to the V-shaped downside scenario in the sensitivity analysis, in aggregate, and show that all large banks remain strongly capitalized. The Board will use the results of this test to set the new stress capital buffer requirement for these firms, which will take effect, as planned, in the fourth quarter. Additionally, the Board will not be objecting to five foreign banks whose capital planning practices were evaluated as part of the stress tests.
Dodd-Frank Act Stress Test 2020: Supervisory Stress Test Results (PDF)
Assessment of Bank Capital during the Recent Coronavirus Event (PDF)
Statement by Vice Chair for Supervision Quarles
Statement by Governor Brainard
Compliments of the Federal Reserve Board.