EACC

International use of the euro broadly stable in 2019

June 09, 2020 |
• Euro remains unchallenged as second most used currency globally after the US dollar
• Role of euro stable as global reserve currency
• International role declined after the global financial crisis, now bottomed out
• Euro used as main currency of denomination globally for green bond issuance
The euro’s international role remained overall stable in 2019. This was one of the principal findings in the latest annual report on The international role of the euro, published today by the European Central Bank (ECB).
Adjusting for exchange rate valuation effects, the share of the euro in outstanding international loans was 1 percentage point higher at the end of 2019 than at the end of 2018, at 15.4%. The share of the euro in outstanding international debt securities declined. The share of the euro in global foreign exchange reserves and in outstanding international deposits remained broadly stable, as did the share of the euro as an invoicing currency for extra-euro area transactions in goods and the stock of euro banknotes circulating outside the euro area.
Since its introduction 20 years ago, the euro has remained unchallenged as second most used currency globally after the US dollar, but its usage declined after the global financial crisis, bottoming out in 2016. The international role of the euro is primarily supported by a deeper and more complete Economic and Monetary Union (EMU), including advancing the capital markets union, in the context of the pursuit of sound economic policies in the euro area.
“The recent COVID-19 pandemic underlines the urgency of these policies and reform efforts, which are paramount to raising the attractiveness of the euro globally”, said ECB President Christine Lagarde.
The report also contains a box on the role of the euro in global green bond markets, with the euro being the main currency of denomination for the issuance of green bonds in 2019. “The swift implementation of an EU taxonomy of sustainable economic activities would provide a credible and standardised framework, ensure greater investor confidence and could thereby also contribute to strengthening the international role of the euro”, said Fabio Panetta, member of the ECB’s Executive Board.
Compliments of the ECB.

EACC

Survey: How is COVID-19 impacting your community?

The Federal Reserve wants to hear from you.
Now, more than ever, we need to elevate community voices to inform meaningful actions. We want to hear from you and learn how the pandemic is affecting your community.
In April, the Federal Reserve System conducted a survey to better understand the range of challenges facing under-resourced and low-income communities as an effect of COVID-19. The findings are available in Perspectives from Main Street: The Impact of COVID-19 on Communities and the Entities Serving Them and helped us understand how the pandemic is impacting organizations, like yours, supporting community needs.
We are committed to fielding this survey every eight weeks to report on how the effects of COVID-19 are changing within communities over time. Please take this survey today. The survey should take about 10 minutes to complete.
START SURVEY
The survey will close at 11:59 p.m. ET on Friday, June 12, 2020.
We also invite you to participate in the upcoming Federal Reserve Bank of New York’s Fed & Main Street series, The Immigrant Experience during COVID-19, where key advocates will cover topics ranging from the challenges of immigrant populations during the pandemic to cross-sector efforts to address financial and economic disparities. In addition, visit the Community Resources on Coronavirus hub from the Federal Reserve Bank of New York that you may find useful.
Thank you for your time and for your shared commitment to supporting our communities. We encourage you to forward the survey link to others who have unique knowledge of what is happening in their communities.
Compliments of the Federal Reserve of New York.

EACC

EACCNY #COVID19 Impact Stories from Our Members – Mach Media

Together with our members we are creating a Video series of first-hand accounts of the Pandemic’s impact, both personally & professionally.
We invite you to join us today for a first-hand look at the impact of the global shutdown following the Coronavirus (COVID-19) outbreak – Today we are featuring Cameron Heffernan, Director of North America, Mach Media a EACCNY member.The questions we asked our members for this series are:1) What are some challenges you, personally and your organization have faced?2) What are some of the most surprising (positive, innovative) responses/changes you have witnessed?3) How will this experience change us going forward, as a society and in terms of how we do business?

EACCNY has its finger on the pulse of how this worldwide pandemic is effecting companies and organizations on both sides of the Atlantic. EACC is where Americans & Europeans connect to do business.
Stay tuned for more on this series! We hope you enjoy these short vignettes our members and friends of the EACC created to share their experience.
 

EACC

“Team Europe” global response to COVID-19: Council welcomes the mobilisation of almost €36 billion and approves conclusions

June 08, 2020 |
The Council approved conclusions on the “Team Europe” package that is part of the EU’s global response to the COVID-19 pandemic.
In its conclusions the Council expresses its deep concern about the global spread of the COVID‑19 pandemic, which continues to claim lives worldwide and have far-reaching social and economic effects.
The Council stresses the urgency of protecting the lives and livelihoods of all people, leaving no-one behind, and of prioritising efforts in partner countries that are most in need.
In light of that the Council fully supports the “Team Europe” approach and welcomes the announcement that almost 36 billion euro have now been mobilised and will be used to address the devastating effects of the COVID-19 crisis in partner countries and regions.
The Council conclusions call for full and effective implementation of a package that should allocate resources to partner countries in cooperation with them, and on the basis of a joint assessment of needs.
The Council also emphasises the need to ensure a link with medium- and long-term programming, and proper coordination with all actors involved, including the UN, regional organisations such as the African Union, and other international multilateral organisations and financial institutions.
Background
The “Team Europe” package was launched on 8 April 2020 to support EU partner countries in the fight against the COVID-19 pandemic and its consequences. The financial support initially pledged was around 20 billion euro and combined resources from the EU, its member states, and financial institutions, in particular the European Investment Bank and the European Bank for Reconstruction and Development.
Text of the Council conclusions
Updated annex to the Council conclusions
Joint Communication on the Global EU Response to COVID-19, 8 April 2020
EU “Team Europe” Package launched, 8 April 2020 (EEAS Website)
EU Humanitarian & Emergency Response (EEAS, Website)
Compliments of the European Commission.

EACC

New studies on upgrading the gas market in the context of the European Green Deal

June 05, 2020 |
Well-functioning and liquid gas markets are a prerequisite for ensuring affordable energy for consumers, competitiveness of industries, and security of supply. They also play a role in achieving the environmental ambitions of the European Green Deal, which foresees the decarbonisation of the gas sector via a forward-looking design for a competitive decarbonised gas market.
To support the reflections on the possible need to enhance the EU regulatory framework for gas markets in the context of the European Green Deal and the trajectory towards the decarbonisation of gas, two studies have been published, commissioned by the Directorate-General for Energy of the European Commission.
It is important to note that the studies reflect only the views of the authors. They have neither been adopted nor in any way approved by the Commission and should not be relied upon as a statement of the Commission’s views. The results of the studies do not bind the Commission in any way. Any possible implementation of options and/or recommendations identified will be assessed in the context of the policy objectives established in the Green Deal Strategy and subject to an impact assessment.
Gas market upgrading and modernisation – Regulatory framework for LNG terminals
The study was conducted by a consortium of consultants led by Trinomics in collaboration with REKK and Equidity. The study identifies barriers and gaps that may need to be addressed in order to ensure optimal use of existing LNG terminals in the EU. This finding is especially relevant due to the significant increase of LNG imports to the EU in the recent years. The study suggests recommendations that would allow the better use of existing LNG terminal capacities, improve their link with the gas market, and facilitate the response to market demand.
Upgrading the gas market – Regulatory and administrative requirements to entry and trade on gas wholesale markets in the EU
The study was conducted by a consortium of consultants led by Schönherr attorneys at law, identifying existing administrative and regulatory requirements to enter and trade on the EU wholesale gas markets.. Based on the overview of current barriers to entry and trade on wholesale gas markets, possible legislative options at EU-level to mitigate them are analysed, including mutual recognition, minimum requirements, an EU pass porting system, and the abolishment of licensing requirements.
Compliments of the European Commission.

EACC

EU structural financial indicators: end of 2019

June 08, 2020 |
• Further decline – by 6.3% on average – in number of bank branches in most EU Member States
• Number of bank employees also continued to fall by 0.9% on average
• Share of total assets of the five largest banks, at national level, ranged from 28% to 97%
The European Central Bank (ECB) has updated its dataset of structural financial indicators for the banking sector in the European Union (EU) for the end of 2019. This annual dataset comprises statistics on the number of branches and employees of EU credit institutions, data on the degree of concentration of the banking sector in each EU Member State, and data on foreign-controlled institutions in EU national banking markets.
As for the number of branches, the structural financial indicators show a further decline in the EU, on average by 6.3%. There was a decrease in 25 of 28 EU Member States and, at national level, the decrease in the number of branches varied from 0.9% to 37%. The total number of branches in the EU was 163,265 at the end of 2019 with 79 % of them located in the Euro Area.
The number of employees of credit institutions fell in 20 EU Member States with an average reduction of 0.9% across all countries. Decreasing numbers of bank employees is a trend that has been observed in most countries since 2008.
The data also indicate that the degree of concentration in the banking sector (measured by the share of assets held by the five largest banks) continues to differ widely between EU countries. The share of total assets of the five largest credit institutions, at national level, ranged from 28% to 97%, while the EU average was 65% at the end of 2019. The changes in the share of total assets of the five largest credit institutions varied across countries from -3.1% to 7.8%. In the EU, the average variation was 1.5%.
The structural financial indicators are published by the ECB on an annual basis.

Chart 1 – Number of employees of domestic credit institutions
(thousands)

Notes: Interquartile ranges and medians are calculated across average country values. Data for EU28 countries are available. SOURCE: The ECB

Chart 2 – Share of assets held by the five largest banks
(percentages)

Notes: Interquartile ranges and medians are calculated across average country values. Data for EU28 countries are available. SOURCE: The ECB
Compliments of the ECB.

EACC

Monthly U.S. International Trade in Goods and Services, April 2020

June 04, 2020 |
The U.S. Census Bureau and the U.S. Bureau of Economic Analysis announced today that the goods and services deficit was $49.4 billion in April, up $7.1 billion from $42.3 billion in March, revised. 
Notably, the Commerce Department reported a record 13.7% drop in imports compared to March, and a 20.5% fall in exports—another record—over the same period.
To access the full report: Monthly U.S. International Trade in Goods and Services, April 2020
Compliments of the US Department of Commerce.

EACC

Statement by Michel Barnier following Round 4 of negotiations for a new partnership between the European Union and the United Kingdom

June 05, 2020 | Statement by Michel Barnier
“Check against delivery”

Ladies and gentlemen,
I am happy to be with you again, virtually, at the end of this fourth round of negotiations.
Since the beginning of these negotiations, our objective has been to move forward – in parallel – on all topics of our future relationship – and there are many given that we are aiming for a very ambitious partnership.
To achieve this, as I told you at the end of our last round, we needed to make progress on four big sticking points, namely:
• Fisheries, and free and fair competition, the so-called ‘level playing field’ – two essential elements of the new economic partnership we want to build;
• Guarantees protecting people’s fundamental rights and freedoms needed to underpin a close police and judicial cooperation in criminal matters;
• And finally, the governance of our future relationship.
We therefore decided, with David Frost and the UK delegation, to dedicate time to discussing those four points this week.
And I want to thank David Frost personally, but also the two negotiating teams for the mutual respect that they have shown, for the quality of their work in these difficult circumstances, and for their professionalism.
However, at the end of this week, my responsibility – under the authority of President Ursula von der Leyen – as Union negotiator, is to tell you the truth. And the truth is that there was no substantial progress.
• On fisheries, the United Kingdom did not show any real willingness to explore other approaches than zonal attachment on quota sharing. It also continues to condition access to its waters to an annual negotiation – which is technically impossible for us. Whereas the EU wants to build a more stable economic partnership.
• On the level playing field, we didn’t make any progress on these rules of economic and commercial fair play, despite choosing to focus this week on issues that should have been more consensual, such as non-regression mechanisms on social and environmental standards, climate change, taxation or sustainable development.
• On the governance of our future relationship, we were unable to make progress on the issue of the single governance framework establishing legal linkages between our different areas of cooperation.
• Finally, on police and judicial cooperation in criminal matters, we had a slightly more constructive discussion on the question of commitment to the European Convention on Human Rights, although important questions remain as to how to reflect this commitment in our agreement.
On all these points, we are asking for nothing more than what is in the Political Declaration.
 
Ladies and gentlemen,
We can only take note that there has been no substantial progress since the beginning of these negotiations, and that we cannot continue like this forever.
Especially given the United Kingdom’s continued refusal to extend the transition period.
On our side, as President Ursula von der Leyen has said, we were always open to the possibility of a one- or two-year extension, as foreseen in the Withdrawal Agreement. Our door remains open.
But if there is no joint decision on such an extension – as I understand this to be the case – the UK will leave the Single Market and the Customs Union in less than 7 months.
Taking into account the time needed to ratify a deal, we would need a full legal text by 31 October at the latest, i.e. in less than 5 months.
We must use this time in the best possible way.
That is why I suggested, last week already, to David Frost, to accompany our negotiation rounds on all topics with more restricted formats so that we can concentrate on the more difficult issues.
I hope that this will help to inject new political dynamism in the 11 negotiating tables, which we hope will be able to meet physically again in the coming weeks and months, as this could help us gain in efficiency.
Of course, in the coming months, I will continue to work in full confidence and transparency with the Member States and the European Parliament.
Ladies and gentlemen,
To be clear: Our lack of progress in this negotiation is not due to our method, but to the substance.
We must stick to our commitments if we want to move forward!
We engaged in this negotiation on the basis of a joint Political Declaration that clearly sets out the terms of our future partnership.
This document is available in all languages, including English. It is a good read, if I may say so.
This declaration was negotiated with and approved by Prime Minister Johnson.
It was approved by the leaders of the 27 Member States at the European Council in October 2019. It has the backing of the European Parliament.
It is – and it will remain for us – the only valid reference, the only relevant precedent in this negotiation, as it was agreed by both sides.
Yet, round after round, our British counterparts seek to distance themselves from this common basis.
Let me give you four concrete examples, referring precisely to the text of the Political Declaration:
1. Prime Minister Johnson agreed, in paragraph 77 of the Political Declaration, that ‘given our geographic proximity and economic interdependence’, our future agreement must encompass robust commitments to prevent distortions of trade and unfair competitive advantages. This is what, together, we chose to call the ‘level playing field’.
• In this paragraph, Prime Minister Johnson agreed to uphold the common high standards applicable in the Union and the UK at the end of the transition period in these areas: state aid, competition, social and employment standards, environment, climate change, and relevant tax matters.
• We are today very far from this objective.
2. Prime Minister Johnson agreed, in paragraph 66 of the Political Declaration on civil nuclear cooperation, to maintain our existing high standards of nuclear safety.
• We are very far from this objective.
3. Prime Minister Johnson agreed, in paragraph 82 of the Political Declaration that our agreement should cover anti-money laundering and counter terrorism financing.
• We are very far from this objective.
4. Prime Minister Johnson agreed, in paragraph 118 of the Political Declaration, to base our future relationship on an overarching institutional framework, with links between specific areas of cooperation.
• We are, once again, very far from this objective.
In all these areas – and many others – the UK continues to backtrack on the commitments it has undertaken in the Political Declaration.
Including on fisheries, where we committed to use our “best endeavours” to conclude and ratify a new agreement by 1st July 2020.
It seems clear that we will not reach this target considering how the negotiations in this area are going for the moment.
Even in the rare areas where we saw some movement this week, such as the European Convention on Human Rights, we still fall short of what we had agreed in the Political Declaration.
Finally, let me remind you that, since the beginning of these negotiations, the UK has refused to talk about our cooperation on foreign policy, development and defence, even though we agreed this with Boris Johnson in the Political Declaration.
To tell the truth – as a former Minister for Foreign Affairs in my own country – I still don’t understand why.
 
Ladies and gentlemen,
We cannot accept this backtracking on the Political Declaration.
And we will request the full respect of the Withdrawal Agreement.
On citizens’ rights, we continue to be extremely vigilant.
There have been frequent exchanges of information between Vice-President Maroš Šefčovič and Michael Gove on this topic.
Regarding EU citizens residing in the UK:
• We are pleased to hear that 3.1 million EU citizens have already been granted residence status.
• And we are carefully monitoring the situation of more vulnerable citizens that have difficulties applying digitally.
• It is also important that EU citizens residing in the UK have access to social benefits in these difficult times.
As for UK nationals residing in the EU:
• In the 13 Member States that – like the UK – have chosen a constitutive system, we are working to ensure that procedures for applying for residence status are simple, easily accessible, and clearly communicated;
• In the 14 Member States that have chosen a declaratory system, UK nationals will receive a physical document enabling them to prove their status.
We also continue to be extremely vigilant with regard to the correct implementation of the Protocol on Ireland and Northern Ireland.
• The UK Command Paper published on 20th May is useful.
• But there are still a lot of details to be settled if we want to move from aspiration to operation, in line with the legal Treaty.
• Furthermore, some of the objectives set out in this Command Paper – such as avoiding exit declarations on goods moving from Northern Ireland to Great Britain – are incompatible with the legal commitments accepted by the UK in the Protocol.
• So we really need to work more on the technical details.
Only a precise and rigorous implementation of the Withdrawal Agreement can create the confidence we need to build our future partnership.
The 27 Member States and the European Parliament have been very clear about this, including in our negotiating mandate.
 
Ladies and gentlemen,
In the coming days, the Commission will have the opportunity to take stock with the 27 Member States, the President of the European Council Charles Michel, as well as with the European Parliament, its President David Sassoli, and the coordination group chaired by David McAllister.
The month of June will also see the second meeting of the Joint Committee – on 12 June – and the High Level Meeting that we agreed to in the Political Declaration to take stock of these negotiations.
We still need to decide on the date and the modalities of this meeting. This is also the case for the next rounds – the first of which would probably take place towards the end of June or early July.
But it is clear that we are approaching a moment of truth: We expect the United Kingdom to respect its engagements – both when it comes to our, already ratified, Withdrawal Agreement, and to the precise content of the Political Declaration, which remains and will remain the basis and the framework for our negotiation.
If this is the case, and if we keep our mutual respect, our serenity and our determination, I have no doubt that we will find, in the course of the summer or by early autumn at the latest, a landing zone between the United Kingdom and the European Union. Then, finally, we will reach an agreement on our partnership for the future.
Compliments of the European Commission.

EACC

EACCNY #COVID19 Impact Stories from Our Members – Québec in NY

Together with our members we are creating a Video series of first-hand accounts of the Pandemic’s impact, both personally & professionally.
We invite you to join us today for a first-hand look at the impact of the global shutdown following the Coronavirus (COVID-19) outbreak – Today we are featuring Catherine Loubier, Delegate General of Québec in New York a EACCNY member.The questions we asked our members for this series are:1) What are some challenges you, personally and your organization have faced?2) What are some of the most surprising (positive, innovative) responses/changes you have witnessed?3) How will this experience change us going forward, as a society and in terms of how we do business?

EACCNY has its finger on the pulse of how this worldwide pandemic is effecting companies and organizations on both sides of the Atlantic. EACC is where Americans & Europeans connect to do business.
Stay tuned for more on this series! We hope you enjoy these short vignettes our members and friends of the EACC created to share their experience.

EACC

Coronavirus Global Response: European Commission pledges €300 million to Gavi

June 04, 2020 |
Today, the European Commission is announcing a pledge of €300 million to Gavi, the Vaccine Alliance, for the period 2021–2025. It will help immunise 300 million children around the world and finance vaccine stockpiles to shield against outbreaks of infectious diseases.
Today’s Global Vaccine Summit organised by Gavi, the Vaccine Alliance is an important milestone in strengthening health systems and immunisation capacities of the world’s most vulnerable countries. This is instrumental in reaching the objectives of the Coronavirus Global Response.
At the Coronavirus Global Response pledging event co-hosted by the European Commission on 4 May, more than €1.5 billion was pledged for Gavi, the Vaccine Alliance, including €488 million for deploying, once available, a vaccine against coronavirus.
President of the European Commission Ursula von der Leyen said, “Vaccines can only save lives if everyone who needs them can access them, especially in the most vulnerable communities and regions of the world. This is why Gavi, the Vaccine Alliance’s work is so important. It gives developing countries the means to build stronger health systems and immunisation programmes, to make the world a safer place. I am glad that the European Commission can support Gavi in such a crucial endeavour. This will help us overcome this pandemic and avoid another.”
Commissioner for International Partnerships Jutta Urpilainen said, “Building up immunisation systems is a fundamental part of the work the EU does with partner countries and Gavi to strengthen health systems, which will be more important than ever on our road to recovery from COVID-19. Improving children’s access to basic health care, notably effective and safe vaccines, was key to almost halving global child mortality between 2000 and 2017. Ensuring more vulnerable children have continued access to vaccines will be key for our collective success over the next five years.”
The new Commission pledge of €300 million represents more than its total contribution to Gavi, the Vaccine Alliance so far. The funding will help:
• Vaccinate 300 million children and save up to 8 million lives.  
• Ensure the successful transition of some countries into self-financing.
• Leverage US$ 3.6 billion in national co-financing and self-funded vaccine programmes.
• Deliver over 3.2 billion doses of life-saving vaccines to 55 countries.
• Facilitate 1.4 billion contacts between families and health services through vaccination.
• Insure the world against the re-emergence of polio through routine inactivated polio vaccine programmes in collaboration with the Global Polio Eradication Initiative.
• Fund vaccine stockpiles for emergency use to stop dangerous outbreaks.
Today’s pledge is made under the assumption that the EU’s new Multiannual Financial Framework and in particular the Neighbourhood, Development and International Cooperation Instrument (NDICI), where the funds pledged for Gavi, the Vaccine Alliance, would come from, are adopted broadly along the lines proposed by the European Commission. On 2 June, the Commission proposed to increase NDICI funding for 2021-2027 to €86 billion in 2018 prices (€96.4 billion in current prices), including €10.5 billion from the new ‘Next Generation EU’.
Background
Gavi, the Vaccine Alliance, is a non-profit global public-private partnership, based in Geneva. Gavi’s model is designed to leverage financial resources and expertise, bringing together governments and vaccine manufacturers in both industrialised and developing countries, key UN agencies, public health and research institutions, private sector and civil society, to save lives and protect health by increasing access to new and underused vaccines in poor countries. By August 2019, Gavi had helped avert 13 million deaths through routine immunisation for more than 760 million people as well as campaigns in 74 countries to immunise more than 960 million people.
Gavi is one of the 12 global health initiatives that have committed to working better together in the Global Action Plan for Healthy Lives and Wellbeing for All, launched during the High Level Event at the United Nations General Assembly in September 2019.
The Coronavirus Global Response builds on the commitment made by G20 leaders on 26 March to present a united front against the pandemic. With this in mind, on 24 April, the World Health Organization (WHO) and an initial group of health actors launched a global collaboration for the accelerated development, production and equitable global Access to COVID-19 Tools – the ACT Accelerator. Together, they issued a call to action.
The European Commission responded to this call by joining forces with global partners to host a pledging event – the Coronavirus Global Response Initiative – as of 4 May 2020.
The Coronavirus Global Response has so far raised €9.8 billion. The full list of donors and breakdown of donations are available here.
Compliments of the European Commission.