For the first time ever, nearly all European Ambassadors to the United States went on a joint trip outside of the Beltway to showcase EU unity and celebrate the close political, economic, and cultural ties between the European Union and the State of Maryland
Are you sure this is going to work? Can we manage so many events simultaneously? Will we be able to remain on schedule with multiple parallel programs across the State of Maryland?
When the ambassador of the European Union to the United States, Stavros Lambrinidis, came up with the idea of a joint trip of EU ambassadors to Maryland, some of us at the EU Delegation to the US — and probably in some Member States’ embassies too — started scratching our heads. And yet, it worked out remarkably well.
While European embassies and the EU Delegation regularly organize joint missions across the United States, it is the first time that such a trip is organized at the ambassador level in the country. And all are eager to repeat this again in another State.
23 European Ambassadors knock on Governor Hogan’s door
The full-day trip started in the early hours of Tuesday, December 3rd, with 22 European Union Member States’ ambassadors and the EU ambassador departing Washington, DC, for a meeting with Maryland Governor Larry Hogan in Annapolis, MD.
The meeting with Governor Hogan started with a lot of pictures being taken in front of the Maryland State House Christmas tree…including a few ambassadorial selfies.
Governor Hogan and the European ambassadors then talked about the benefits of strong trade and investment ties between Maryland and the European Union, supporting jobs and prosperity on both sides of the Atlantic — including 120,000 jobs in Maryland. Governor Hogan, who also serves as the Chair of the National Governors Association and is part of the U.S. Climate Alliance, also discussed our common policy goals in areas such as climate action with the visiting ambassadors.
23 Ambassadors across the State of Maryland
Following their joint meeting in Annapolis, the European ambassadors split into multiple groups to engage with Marylanders, in all their diversity, with a particular focus on youth — from a public charter school to universities and the U.S. Naval Academy. Ambassadors also talked with business and environmental protection actors.
At the U.S. Naval Academy, several European ambassadors paid tribute to the late Senator John McCain, a lifelong advocate of vibrant transatlantic relations.
Reunited for a flag changing ceremony at Fort McHenry
The ambassadors then reconvened in Baltimore where they visited historic Fort McHenry, which played a role in defending the city in 1812 and inspired America’s national anthem. In the freezing cold, the ambassadors assisted rangers in changing the flag.
A celebration of Maryland in Baltimore
Final stop: the American Visionary Art Museum in Baltimore.
More than 200 Baltimoreans — many of whom from European diasporas — gathered to get to meet the ambassadors, Mayor Bernard ‘Jack’ Young, and senior state officials. Mayor Young handed over a Mayoral Salute to the European Union.
The trip ended with several dance shows, wrapping up a visit that brought Europeans and Marylanders even closer.
And the question now is: where will European Ambassadors go next? Stay tuned…
Compliments of the Delegation of the European Union to the United States

The European Accessibility Act aims to ensure more products and services are accessible for elderly people and people living with a disability. 

On 13 March Parliament approved the European Accessibility Act (EAA). The new rules are a step towards a fairer and more inclusive Europe and will improve the daily lives of the elderly and people with disabilities across the EU.
The final text will still need to be approved by the Council before it can enter into force. Once the legislation has been published in the EU’s official journal, member States will have three years to transpose the new provisions into national law and six years to apply them. 
More accessible products and services
More than 80 million people live with disabilities in the EU and many have difficulties using everyday products, such as smartphones, computers, e-books, and encounter problems in accessing key services via ticket machines or ATMs.
The UN Convention on the Rights of Persons with Disabilities (UNCRPD) requires the EU and member states to ensure accessibility. Measures at EU level are needed to set common accessibility requirements for key products and services.

The European Accessibility Act sets standards for key products and services:

ticketing and check-in machines

ATMs and other payment terminals

PCs and operating systems

smartphones, tablets and TV equipment

access to audio-visual media services, e-books

e-commerce

some elements of passenger transport services

electronic communications, including the 112 emergency number

Opportunities for businesses and consumers
Having common standards at EU level will prevent member states from developing different laws? This will make it easier and more attractive for businesses to sell accessible products and services in the EU and abroad.
The new rules will encourage competition between economic operators and promote the free movement of accessible products and services. It is expected to give consumers more choice of accessible products and service and reduce their cost.
Exemptions for micro-enterprises
Because of their size and limited resources, exemptions would apply to some micro-enterprises, which are small companies with fewer than 10 employees and an annual turnover or balance sheet of less than €2 million.
However, these firms will be encouraged to manufacture and distribute products and provide services that comply with the accessibility requirements of the new rules.
EU countries will have to provide guidelines to these micro-enterprises to facilitate the implementation of the legislation.

Read our overview explaining how the EU improves public health.
Compliments of the European Commission

The European Supervisory Authorities (ESAs) published today joint draft Regulatory Technical Standards (RTS) to amend the Delegated Regulation on the risk mitigation techniques for non-cleared OTC derivatives (bilateral margining) as well as a joint statement on the introduction of fallbacks in OTC derivative contracts and the requirement to exchange collateral. BothRTS and the statement were developed to facilitate further international consistency in the implementation of the global framework agreed by the Basel Committee on Banking Supervision (BCBS) and the International Organisation of Securities Commissions (IOSCO).
First of all, in view of the clarifications and changes of the global framework made over the past months by the BCBS and IOSCO, the report and related RTS clarify the expectations in relation to the threshold above which initial margin is expected to be exchanged, as well as introduce a further phase-in of one year for the smaller counterparties in scope for the initial margin requirements. Secondly, taking into account the progress made globally towards the implementation of the international framework as well as the risks that the BCBS and IOSCO framework was developed to address, a few amendments have been included in relation to the treatment of physically settled FX forward and swap contracts, intragroup contracts and equity option contracts. Lastly, the statement clarifies the view of the ESAs that amendments made to outstanding uncleared OTC derivative contracts for the sole purpose of introducing such fall-backs should not create new obligations on these legacy contracts.
Legal basis, background and next steps
The ESAs’ RTS and the statement were developed in order to facilitate further international consistency in the implementation of the global framework agreed by the Basel Committee on Banking Supervision (BCBS) and the International Organisation of Securities Commissions (IOSCO).
 
The ESAs have developed the RTS under Article 11(15) of Regulation (EU) No 648/2012 of the European Parliament and Council on OTC derivatives, central counterparties and trade repositories (EMIR).
The ESAs have now submitted the draft RTS to the Commission for endorsement in the form of a Commission Delegated Regulation, i.e. a legally binding instrument applicable in all Member States of the European Union. Following the endorsement, they are then subject to non-objection by the European Parliament and the Council.
The ESAs cannot disapply EU law. However, in view of the remaining steps mentioned above that the draft RTS need to go through before being finalised and entering into force, and in light of some of the soon approaching deadlines, with regards to the bilateral margin requirements and the treatment of physically settled FX forward and swap contracts, intragroup contracts, equity option contracts and the implementation of the last phase of the initial margin requirements as proposed in the draft RTS, the ESAs expect competent authorities to apply the EU framework in a risk-based and proportionate manner until the amended RTS enter into force.
Lastly, with regards to the statement in relation to fall-backs, the ESAs believe it useful to ensure legal certainty on this issue, in case or to the extent this is not already provided in some jurisdictions. While, neither the ESAs nor competent authorities possess any formal power to disapply directly applicable EU legal text, the ESAs are in contact with the co-legislators to see how a legislative change could be achieved to ensure this legal certainty.
Compliments of the European Commission

Today the von der Leyen Commission revealed its working methods which will be the basis for the new College to deliver on the President’s Agenda for Europe during the next five years. They put collegiality, transparency and efficiency first.
The Working Methods introduce a number of novelties to the way the Commission works, notably with regards to the role of the Executive Vice-Presidents, the High Representative/Vice-President, the Vice-Presidents and Commissioners’ Groups. They also set up a new body for coordinating external relations questions, the Group for External Coordination (EXCO) and define how the Commission will follow up on its pledge to act on European Parliament Resolutions based on Article 225 of the Treaty on the Functioning of the European Union (TFEU). Finally, the Working Methods also pave the way for the digital transformation of the Commission, whereby meetings shall become paperless.
The main guiding principles when working together
The European Commission takes decisions collectively. All Members of the Commission are equal when making decisions and equally accountable for these decisions. Once decisions are taken, every Member of the Commission must take ownership of them, promote and defend them. Three Executive Vice-Presidents have a dual function, acting both as Vice-Presidents and managing a policy area. The Executive Vice-Presidents, the High-Representative/Vice-President and Vice-Presidents are in charge of political steering and coordinating the work in their area of responsibility, notably though so-called ‘Commissioners’ Groups’. President von der Leyen has established six Commissioners’ Groups covering the six Political Priorities: a European Green Deal; a Europe Fit for the digital age; an Economy that works for all; Promoting our European Way of Life; a Stronger Europe in the world and a New Push for Democracy.
Transparency should characterise the work of all the Members of the Commission and of their Cabinets. All Members of the Commission will make public all meetings and contacts relating to EU policies and decision-making.
A geopolitical Commission
For the first time, a specific group will be in charge of coordinating external affairs aspects of the Commission’s work. Preparing the College meetings, the new Group for External Coordination (EXCO) will discuss on a weekly basis current international issues and coordinate positions to be taken in international fora or during Summits, amongst other things. The Group will be central in aligning the internal and external dimensions of the Commissions’ work.
Committed to a Democratic Union
To demonstrate the importance the European Commission attaches to what citizens and their directly elected representatives in the European Parliament say, the College will discuss in their meetings every decision relating to whether or not to register proposed European Citizens’ Initiatives. It will also discuss and adopt decisions concerning European Parliament resolutions and Council requests on legislative initiatives under Articles 225 and 241 TFEU –in full respect of the proportionality, subsidiarity and better law-making principles. The Vice-President for Interinstitutional Relations and Foresight, Maroš Šefčovič, will inform the European Parliament on the follow-up proposed within three months of the adoption of the relevant resolution.
In line with their mission letters, Members of the College shall visit every Member State within the first half of the Commission’s mandate at the latest. They are expected to meet regularly with national Parliaments and take part in Citizens’ Dialogues across the Union, notably as part of the Conference on the Future of Europe.
Cutting red tape
The College will apply the “one in, one out” principle whereby each legislative proposal creating new burdens should relieve people and business of an equivalent existing burden at EU level in the same policy area. The Vice-President for Interinstitutional Relations and Foresight will oversee the application of the principle and ensure that it is applied coherently across the Commission services.
A digital Commission
The European Commission strives to become a digitally transformed, user-focused and data-driven administration. The College will lead by example by holding paperless meetings supported by an e-College tool. The aim is to gradually introduce paperless meetings at all levels of the organisation. This will be done in full respect of data protection and security requirements.
A greener Commission
The Commission will step up its efforts to improve the environmental impact of its activities in the area of energy, water and paper consumption, waste management, and CO2 emissions. It will do so through new initiatives in the framework of its Environmental Management System, an improved implementation of circular economy principles in green public procurement and strengthening staff’s ability to adopt ecological behaviour.
Compliments of the European Commission

On 1 December, Josep Borrell assumed the post of EU High Representative for Foreign Affairs and Security Policy and Vice-President of the European Commission.
Josep Borrell, former Foreign Minister of Spain, assumed the post as High Representative of the Union for Foreign Affairs and Security Policy, and Vice-President of the European Commission, headed by new President Ursula von der Leyen.
 
In the next 5 years, High Representative/Vice-President Borrell will be at the helm of the EU’s foreign policy. The need for European leadership in the world is more pronounced than ever before, and Europe must use its diplomatic and economic strength to support global stability and prosperity, as stated in the Mission letter by the Commission President-elect.
In his personal message upon taking office, High Representative/Vice-President Borrell said he would be guided by principles of realism, unity and partnerships in building the EU as an even stronger world-oriented actor. He reminded the European Union had what it takes to deliver on this crucial mission. “We have all the tools and resources at hand – from diplomacy to trade, development cooperation and crisis management. We set global rules and standards and act as a steadfast defender of multilateralism and democratic values. The combination of these assets makes us a leader in responding to global challenges and showing the way forward”, he wrote.
During his hearing in the European Parliament, Borrell stressed his intention to engage in reforms in the Western Balkans, support democracy and the integrity of Ukraine, address the challenges in the Southern neighbourhood, develop a new strategy towards Africa, work on political relations with Asia, step up cooperation with Latin America and reinforce transatlantic relations.
 
“We are the best combination of political freedom, economic prosperity and social cohesion. We have the resources, the support of our population and strong institutions. We need to build on this”, Borrell said.
 
Tasked to work for a stronger Europe in the world, Borrell underlined some of the key building blocks of Europe’s role. “We  are  a  key  normative  power  in  setting  world-wide  rules  and  standards.  We have a powerful common trade policy. Powerful because it is common. We are a true leader in shaping the 2030 Agenda, which  represents the new global consensus on building sustainability. Our budget, together with those of the Member States, makes us a financial super-power, and our diplomatic capacity is among the strongest in the world.”
 
Borrell pledged to work with all EU Member States to achieve more unity needed for Europe to be geopolitically relevant.
 
Referring to partnerships and multilateralism as part of Europe’s “collective DNA”, he stressed that Europe has to position itself in the growing confrontation between the US and China. “We have to back rules-based multilateralism and promote our own approach, avoiding  being squeezed between the two of them.” The rules-based system can and should be reformed, but not abandoned, Borrell said.
As foreign policy chief, High Representative/Vice-President Borrell is also responsible for EU’s Common Security and Defence Policy and head of the European Defence Agency. “Defence is part of our security and sometimes threats start far away from our own borders,” he said. “We have taken many initiatives in this area, and will continue to contribute to develop more usable defence capabilities.”
 
Striving for more strategic, more assertive and more united Europe in the world, High Representative/Vice-President Borrell is relying on the European External Action Service, EU civilian and military missions and operations and more than 140 EU Delegations across the world.
 
He succeeds Federica Mogherini, who served as High Representative/Vice-President from 2014-2019.
Compliments of the Delegation of the European Union to the United States

The von der Leyen team voted into office by the European Parliament
On 27 November during the plenary session in Strasbourg, a large majority of members of the European Parliament voted in favour of the von der Leyen Commission. Ahead of the vote, the President-elect presented her team of Commissioners to the European Parliament. She reaffirmed her strong commitment to working closely with the European Parliament on the defining issues of our generation: fighting climate change, harnessing digitalisation, building a social market economy for today’s world. She called for Europe to show leadership in the world and for the Commission to be geopolitical in the way that it thinks and acts. She underlined the need for Europe to care for the things Europeans cared for and to find common solutions to shared challenges. 
 

For the period from April to September 2019 the net percentage of euro area small and medium-sized enterprises’ (SMEs) turnover remained broadly stable at robust levels (20%, down from 21% for the previous period). For the first time since mid-2016, euro area SMEs reported a deterioration in profits in net terms (-1%, down from 0%), as SMEs continued to report growing labour costs (50%, down from 52%), increases in other costs (i.e. material and energy) (53%, down from 57%), and rising interest expenses (1%, down from 5%).
Lack of availability of skilled labour continued to be the dominant concern for euro area SMEs (28%, up from 25%), followed by the difficulty of finding customers (22%, down from 23%).
Access to finance remained the least important concern (7%, down from 8%). In net terms, SMEs continued to indicate improved availability of bank loans (10%, up from 9%), with the highest percentages in Greece and Portugal (13%). They attributed this to the willingness of banks to provide credit (14%, down from 16%). However, in this survey round more euro area SMEs perceived the general economic outlook as an impediment to the availability of external finance (-13% down from -9%). This assessment was broad-based across countries, but it was most marked in Spain (-26%, down from -8%), Finland (-24%, down from -7%) and Italy (-16%, up from -17%).
Regarding price terms and conditions of bank financing, euro area SMEs reported net declines in interest rates on bank loans (-9% net, down from 4% in the previous round). At the same time, 29% (down from 30%) of euro area SMEs continued to signal increases in other costs of financing, such as charges, fees and commissions.
The Survey on the Access to Finance of Enterprises was developed to provide evidence on changes in the financial situation of enterprises and to document trends in the need for and availability of external financing. The results refer to the period from April to September 2019. This survey round was conducted between 16 September and 25 October 2019. The total euro area sample size was 11,204 firms, of which 10,241 (91%) had fewer than 250 employees.
Compliments of the European Central Bank

At the COP 25 United Nations Climate Change Conference in Madrid, the European Investment Bank (EIB), the EU bank, will be discussing how its new climate action roadmap and recent decision to phase out support for unabated fossil fuel energy projects can support European Union leadership on international climate action.
The EIB delegation will engage with national governments, the private sector and civil society as well as fellow financial and European institutions to debate how more climate finance can be mobilized to tackle the climate emergency. In addition, the EIB will be signing a number of new financing agreements to promote solar energy projects in Spain and climate action investments in Latin America.
“The climate emergency is the top issue on the political agenda of our time. We must change course to a carbon neutral future and limit damage from the impact of climate change. That means every country, every industry and every institution needs to do its share,” said EIB President Werner Hoyer. “The EU bank has decided to greatly strengthen its ambition. We will stop financing unabated fossil fuels, launch the most ambitious climate investment roadmap of any International Financial Institution and propose an energy transition package to leave no one behind. We will serve as the financial engine of the European Green Deal under the new European Commission,” he added: “In the context of COP25, these decisions send an important signal to the world: The European Union and its bank are serious about climate action.
See more information about the EIB participation in COP 25 and a selection of videos, blogs, podcasts
EIB press conference: The new climate and energy roadmap – setting a global standard? 
On Monday 9th December at 10.30, the EU bank will host a press conference with its President, Werner Hoyer. The press conference will take place at the official COP 25 venue IFEMA and will be open to accredited journalists. The press conference room is CHILOE, located in Hall 10.
EIB Climate Survey: Panic or the dawning of reality?
On 2nd December, the EIB will present the results of the EIB Climate Survey conducted in the EU, the US and China. The first wave of the survey highlights how people perceive climate change and its impact on their lives.  EIB-Benelux Pavilion, 13.30-14.15.
EIB Vice-President Emma Navarro commented the survey findings: “European citizens are highly concerned about climate change and its impact on their everyday life and future. Interestingly, many of them are optimistic about the possibility to reverse it. Unfortunately, science says otherwise. We have one shot at limiting global warming and mitigating its effects. The EIB’s survey is a key tool to understand citizens’ perception on climate change, and also the role they expect from their leaders in the public and the private sectors. As one of the largest multilateral providers of climate finance worldwide, the EIB is already the EU Climate Bank and we are committed to doing much more. This is why listening to citizens’ attitudes is key for us to make sure we address their concerns, while leaving no one behind.”
Financing the Paris Agreement: How to mobilize private investors?
At a joint event on Tuesday 10th December, EIB President Hoyer will join Nadia Calviño, Spain’s Minister of Economy and Business, and Valdis Dombrovskis, European Commission Vice-President, to share EIB’s experience in mobilising private finance and discuss how to connect the financial system and sustainability to make a successful transformation to a greener, more sustainable planet. Spanish Pavilion, 10.00-12.15.
Compliments of the European Commission

Downside risks to global and euro area economic growth have increased and continue to create financial stability challenges, according to the November 2019 Financial Stability Review (FSR) of the European Central Bank (ECB). Low interest rates should support economic activity in the euro area, but may also encourage excessive risk-taking by some non-bank financial institutions and highly leveraged non-financial corporations, and in some real estate markets.
“While the low interest rate environment supports the overall economy, we also note an increase in risk-taking which warrants continuous and close monitoring”, said Luis de Guindos, Vice-President of the ECB. “Authorities should use available tools to address the build-up of vulnerabilities where possible.”
Non-banks, such as investment funds, insurance companies and pension funds, which play an increasingly important role in the financing of the real economy, have continued to take on more risk and have increased their exposure to riskier segments of the corporate and sovereign sectors. In the event of a sudden repricing of financial assets, growing credit and liquidity risk in some parts of the euro area non-bank financial sector – coupled with higher leverage in investment funds – may lead non-banks to respond in ways that cause stress to spread to the wider financial system.
Pockets of vulnerability also remain in the non-financial corporate sector and some property markets. Low funding costs appear to be encouraging more borrowing by riskier firms. At the same time, property markets in a number of euro area countries have continued to see rising prices. Authorities are using, and should continue to use, targeted macroprudential measures, where available, to address the associated risks to financial stability.
Euro area banks’ profitability prospects have deteriorated further, despite expectations of a modest but continued increase in net interest, fee and commission income. Return on equity of euro area banks is expected to face further pressure from both a weaker economic outlook and persistent cost inefficiencies and overcapacity. Even so, the banking sectors’ solvency position remains robust with a Common Equity Tier 1 ratio of over 14%. And even under an adverse stress scenario, the aggregate solvency ratio is expected to remain above 11%.
This issue of the FSR contains two special features, including one that examines how and where consolidation could help banks to improve their profitability. It also includes eight boxes, including one which looks at the impact of cross-border transactions on real estate markets and one which considers the implications of misconduct costs for banks.
Compliments of the European Central Bank

Ian Steff, Deputy Assistant Secretary for Manufacturing, Performing the non-exclusive functions and duties of the Assistant Secretary of Global Markets and Director General of the United States and Foreign Commercial Service, recently led the U.S. delegation to Berlin, Germany for the U.S.-Germany Informal Commercial Exchange (ICE). The talks were held with senior German officials to discuss ways to further strengthen the substantial U.S.-German economic ties and expand cooperation on the investment environment. The delegation was hosted by Dr. Eckhard Franz, Director General in the German Ministry of Economic Affairs and Energy.
“The United States and Germany enjoy a strong bilateral economic relationship and cooperate well in areas that affect the investment climate, regulatory environment, and workforce development,” said Steff. “American companies look forward to doing more business there and are optimistic that further communication on key issues will strengthen our ties.”
The ICE Talks covered several areas of collaboration and sharing of best practices in emerging technologies and workforce development. The discussion supported U.S. and German companies and highlighted the need for both countries to train and employ highly-skilled labor to support our economies.
In 2018, Germany was our fifth largest trading partner ($183.6 billion); sixth largest merchandise export market ($57.7 billion); and, fifth largest source of merchandise imports ($125.9 billion). The United States also exported approximately $32.7 billion in services to Germany in 2017. Steff underscored the importance of reducing the trade deficit with Germany through increased U.S. exports in a wide range of sectors, as well as a reduction of non-tariff barriers facing U.S. companies there and in the larger European Union market.
The ICE Talks and other Berlin meetings, which included U.S. companies, the American Chamber of Commerce Germany, the Association of German Chambers of Industry and Commerce, and the Federation of German Industries, set the stage for a large U.S. presence at the 2020 Hannover Messe, the world’s largest industrial technology trade fair, and strengthened bilateral relations going forward.
Compliments of the Department of Commerce