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Tag: 2022

  • Ursula von der Leyen – 2022 Statement at the End of COP27

    Ursula von der Leyen – 2022 Statement at the End of COP27

    The statement made by Ursula von der Leyen, the President of the European Commission, on 20 November 2022.

    COP27 marks a small step towards climate justice but much more is needed for the planet.

    We have treated some of the symptoms but not cured the patient from its fever.

    I am pleased that COP27 has opened a new chapter on financing loss and damage, and laid the foundations for a new method for solidarity between those in need and those in a position to help. We are rebuilding trust. This is crucial moving forward because there can be no lasting action against climate change without climate justice. The European Union is already the world’s leading contributor of international climate finance, and I am satisfied that we confirmed our commitment to support the most vulnerable on our planet through a first contribution on loss and damage.

    COP27 has kept alive the goal of 1.5C. Unfortunately however, it has not delivered on a commitment by the world’s major emitters to phase down fossil fuels, nor new commitments on climate mitigation. But the EU will stay the course, notably through the European Green Deal and REPowerEU, because it is essential to keep the ambition of the Paris Agreement within reach.

    I extend my heartfelt thanks to the EU’s negotiating team in Sharm El Sheikh for their determination and hard work throughout the conference.

  • Ursula von der Leyen – 2022 Speech to the International Institute for Strategic Studies Manama Dialogue

    Ursula von der Leyen – 2022 Speech to the International Institute for Strategic Studies Manama Dialogue

    The speech made by Ursula von der Leyen, the President of the European Commission, on 18 November 2022.

    Thank you Dr Chipman, dear John

    Your Royal Highness,

    Your Highnesses,

    Excellencies,

    Distinguished guests,

    Ladies and Gentlemen,

    Allow me to thank the IISS for its continued leadership in convening a regional dialogue. It is a pleasure to be back at the Manama Dialogue. And it is so good to see that Bahrain continues to be a driving force for dialogue between countries and cultures. Since my last visit four years ago, Bahrain’s achievements have been remarkable. In difficult times for the world, you have been a voice of wisdom and a voice for engagement.

    I have come to Bahrain, I have come to the Gulf, directly from the G20 Summit in Bali. This was the first G20 Summit since Russia invaded Ukraine. And of course, the Summit was dominated by the spillover effects of this atrocious war. Take food security, the Russian blockade of Ukraine’s ports, the deliberate bombing of grain silos and the disruption of Ukraine’s agriculture is having a devastating effect on global food security. Therefore, we welcome yesterday’s prolongation of the Black Sea grain deal for 120 days. However, given the uncertainties, we have to boost even more our alternative routes. That is why Europe just invested an additional billion euros into linking Ukraine’s granaries to our ports by rail, road and rivers. These solidarity lanes have – since the start of the war – taken more than 60% of Ukrainian food exports to the rest of the world. That is more than 17 million tonnes altogether.

    The second big topic was energy security. In energy, no one knows better than you in the Gulf that it is all about trust and reliability. For many years, you have supplied energy to the world to support its economic and social development. This has been transformative for many lives and livelihoods. We are in the middle of a difficult and turbulent period in history. Tectonic shifts in the energy landscape are happening right now. Before the war started, Europe was Russia’s biggest energy customer. Today, not even nine months later, this has changed fundamentally. Russia has unilaterally and deliberately cut 80% of its pipeline gas to Europe. But Europe has managed to replace most of it with gas from reliable suppliers. Our storages are full at 95% – and we are safe for this winter. Our challenge will be next year’s winter. At the same time, for emerging and developing countries, the energy crunch is happening right now. They are facing skyrocketing energy expenditures, soaring inflation, and the energy crisis is rapidly leading into an unsustainable debt crisis. Therefore, the world is looking to the key energy suppliers to ensure that these countries that rely on imported fuels and are vulnerable are substituted at reasonable prices.

    So much for the immediate crisis. But the tectonic shifts are running deeper. It is climate change that is the pacemaker. Desertification is rapidly swallowing fertile land, devastating floods covered one-third of Pakistan this summer, forest fires raged across Europe, even in Belgium and the UK. There is a reason why the largest economies in the world – the G20 – reaffirmed the Paris climate goals. The clean energy transformation will take place. And the winners will be those who invest now and massively in clean tech and infrastructure. Europe is massively investing into home-grown renewable energy. This is the European Green Deal – our fundamental growth strategy. But in addition, we will also continue to rely on energy imports. Many of the countries in this region have the natural resources for clean energy in abundance – wind, sun, etcetera – and have the know-how on existing and emerging technologies, such as carbon capture and storage. This change is creating opportunities for today’s major exporters to provide the fuels and energy services of tomorrow; to diversify into low-emission fuels such as hydrogen; to show leadership in areas such as CCUS; and as a result of these changes, to diversify also their broader economies and to provide a sustainable basis for long-term growth.

    Of course, what is behind these crises in food security and energy security is Russia’s war. Let me give you a European perspective on what is happening on European soil and the global implications. Almost nine months ago, Russian tanks rolled across an internationally recognised border with the declared objective to bring down a legitimate government and establish rule from Moscow. But Russia’s efforts have backfired spectacularly. It has proven to be a colossal strategic mistake.

    First of all, the people of Ukraine have fought bravely, with grit and determination, to defend their own freedom; to reaffirm their independence and their right to determine their own future. If Putin was aiming to wipe Ukraine off the map, he achieved the exact opposite: The Nation of Ukraine stands today stronger than ever. Second, if Putin wanted to divide Europe and its partners and allies, he failed yet again. Sweden and Finland will join NATO. Denmark has removed its defence opt-out. And Ukraine is now a candidate to join the European Union. Thirdly, this war is weakening Russia’s economic perspective for decades to come. Our technology sanctions are crippling Russia’s economy for the future. And its industry is in tatters.

    From an energy point of view, Russia has lost its biggest customer. Europe is ending its dependency on Russian fossil fuels – for good. From a military point of view, the Russian army has shown its weaknesses and appears overstretched. Its military industrial complex is lacking chips and spare parts to fix their hardware. The equipment Russia is throwing at the frontline is getting older and older. The conscripts, who arrive with it, are barely trained and younger and younger. And from a diplomatic point of view, Russia’s illegal annexation of four Ukrainian regions has been roundly rejected as a sham around the world. It was condemned by 143 countries in the UN General Assembly, including by the overwhelming majority of the Gulf, the Middle East and North Africa. In sum, Putin has achieved a weaker Russia domestically and abroad.

    The European Union is united and steadfast in its support to Ukraine. From the very beginning, we have provided a strategic answer. With massive and tailored sanctions; with broad humanitarian aid; with substantial financial support of over EUR 20 billion; and, for the first time ever, the European Union directly financed military assistance of over EUR 3.1 billion.

    Ladies and Gentlemen,

    My last point is about the international order and how to defend it. There is one recent development that I find very telling. Last January, exactly one month before Russia attacked Ukraine, civilians in Abu Dhabi came under fire of Iran-made Shahed-136 UAVs launched from Yemen. Just a few days ago, the oil tanker ‘Pacific Zircon’ was attacked off the coast of Oman by the very same Iranian drones. And now in Europe too, Russia has launched these very same Iranian drones, time and again, against civilian targets in Ukraine’s cities. These are blatant breaches of humanitarian law and qualify as war crimes. Several Gulf countries have been warning for years about the risk that Iran feeds rogue nations around the world with drones. It took us too long to understand a very simple fact that while we work to prevent Iran from developing nuclear weapons, we must also focus on other forms of weapons proliferation, from drones to ballistic missiles. It is a security risk, not just for the Middle East but for us all.

    This is why the European Union has already sanctioned Iranian individuals and entities linked to the Iranian Revolutionary Guard – that are responsible for providing drones to Russia. And we are coordinating with partners and allies to take further sanctions against Iran responding to the proliferation of Iranian drones. By teaming up, Iran and Russia are undermining the basic rules and principles of our global order. And where does this end, if left unchallenged? History shows that this is a recipe for perpetual war. It is a recipe for arms races and the proliferation of weapons of mass destruction. It is a recipe for constant foreign interference, for never-ending violence and instability. And we simply cannot accept this. And we will not accept this.

    Ladies and Gentlemen,

    The world needs a stronger security architecture, against the spread of chaos. We know this in Europe and it matters also here in the Gulf. Europe is willing to do its part. We want to strengthen our engagement with the region – both economically but also in terms of security. We want closer cooperation on maritime security – for instance to ensure safe shipping lanes. And I am also convinced that we should work on a coordinated approach to Iran – with a broader focus than nuclear. Gulf security matters to Europe, as Europe’s security matters to the Gulf. Therefore, we will appoint a Special Representative to the Gulf. Let us join forces for our collective security.

    Ladies and Gentlemen,

    I believe we face a historic opportunity to build new ties between our regions. For our mutual benefit. For today and for the long run. Thank you very much for hosting me, and I look forward to our discussion.

  • PRESS RELEASE : European Pillar of Social Rights five years on – from principles to concrete action for a strong social Europe [November 2022]

    PRESS RELEASE : European Pillar of Social Rights five years on – from principles to concrete action for a strong social Europe [November 2022]

    The press release issued by the European Commission on 17 November 2022.

    Today, the EU celebrates the fifth anniversary of the European Pillar of Social Rights, at the first European Employment & Social Rights Forum, taking stock of progress made, and looking ahead to what comes next.

    Five years have passed after the proclamation of the European Pillar of Social Rights at the Gothenburg Social Summit in 2017 by the European Parliament, the Council and the Commission. Since then, this commitment has been reaffirmed at the 2021 Porto Social Summit by EU leaders, social partners and civil society organisations. The Commission has put forward more than 130 initiatives to implement the Pillar in the Member States and deliver a social Europe that is fair, inclusive and full of opportunities.

    These initiatives range from pay transparency and equality between women and men, minimum wages and investment in skills, to combatting child poverty, minimum income, and protecting workers’ safety and health.

    After a strong socio-economic recovery from the COVID-19 pandemic, the Pillar’s principles remain highly relevant in the current context, where many households are struggling to make ends meet, faced with increased prices exacerbated by Russia’s invasion of Ukraine.

    Delivering on the European Pillar of Social Rights

    In March 2021, the Commission presented the European Pillar of Social Rights Action Plan. To date, the large majority of the measures set out in the plan have already either been adopted or launched by the Commission. The Pillar’s 5th anniversary was celebrated at the first European Employment & Social Rights Forum in Brussels with, Commission President Ursula von der Leyen, former Commission President Jean-Claude Juncker, Commissioner Schmit, and many other distinguished guests.

    EU governments have endorsed the EU 2030 social targets included in the Pillar Action Plan and presented their national contributions to reaching these targets. Combined, Member States’ commitments set the EU firmly on the path to achieving or even exceeding the EU-wide targets. The national targets are the outcome of an intensive consultation process by Member States, including internal consultations with key social actors like social partners, non-governmental organisations and local authorities.

    The three EU-wide targets, to be achieved by 2030, are:

    1. At least 78% of people aged 20 to 64 should be in employment.
    2. At least 60% of all adults should participate in training every year.
    3. The number of people at risk of poverty or social exclusion should be reduced by at least 15 million, including at least 5 million children, compared to 2019.

    Examples of initiatives taken to implement the Pillar – structured around its three main chapters on the labour market, working conditions and social inclusion – are:

    Equal opportunities and access to the labour market

    Fair working conditions

    • The Directive for adequate minimum wages in the EU already entered into force and aims to ensure that work pays. The Directive creates a framework to improve the adequacy of minimum wages in countries with statutory minimum wages. It also aims to promote collective bargaining as well as better enforcement and monitoring in all Member States.
    • The Commission proposal for a directive to improve the working conditions in platform work will ensure that people working through digital labour platforms can enjoy the labour rights and social benefits to which they are entitled. It will also support the sustainable growth of these platforms in the EU.
    • EU strategic framework on health and safety at work 2021-2027 sets out the key actions needed to improve workers’ health and safety over the coming years. For instance, to effectively reduce exposure to asbestos, which can cause cancer, the Commission proposed to revise the Asbestos at Work Directive and introduce an even stricter occupational exposure limit to asbestos.

    Social protection and inclusion

  • PRESS RELEASE : Press remarks by Commissioner Johansson on the readiness of Bulgaria, Romania and Croatia to fully participate in the Schengen area [November 2022]

    PRESS RELEASE : Press remarks by Commissioner Johansson on the readiness of Bulgaria, Romania and Croatia to fully participate in the Schengen area [November 2022]

    The press release issued by the European Commission on 16 November 2022.

    Schengen is the largest area of free movement in the world. 3,5 million people crossing borders every day – for work, studies, pleasure. One third of the EU population lives in border regions. Every year there are 24 million business trips, and travellers make 1.25 billion journeys in the area yearly.

    420 millions across the continent are connected in the area of free movement.

    Schengen is one of the biggest achievements of the EU. Those connections grow the internal market, they grow economies. Schengen grows people’s standard of living – pure and simple.

    22 MS and 4 associated countries are in Schengen. Now it is time to include three more.

    So today I present a Communication on a stronger Schengen with full participation of Bulgaria, Romania, and Croatia.

    It is high time to say welcome!
    It is high time to say

    Добре дошли!(Bulgarian)
    Dobrodošli! (Croatian)
    Bine ați venit! (Romanian)

    Schengen is Europe.
    These three Member States deserve to feel fully European.


    To have the privilege of being a member you are bound by the Concil acquis. Which includes conditions, such as:

    • Effective management of external borders
    • Uniform Schengen visas
    • Cooperation with law enforcement in other countries
    • Connection to information systems, such as Schengen Information System

    All this in order to maintain security within the area and in line with fundamental rights.

    Bulgaria, Romania and Croatia had strongly proven that they have met all these conditions.

    They have the tools, structures, and procedures in place to manage external borders, including possible security threats.
    They have highly trained and dedicated staff, state of the art infrastructure and knowhow.

    Bulgaria and Romania invited a fact-finding mission last month with 17 experts from MS together with experts from the Commission, and from our agencies Frontex, Europol and Fundamental Rights Agency. They assessed the developments of the legal framework, governance, and tools to manage effectively the Schengen area.

    This was an answer to some remaining questions from some Member States. This mission, not only reported very positively, but also reaffirmed the two countries readiness to join Schengen. They have reinforced the application of the acquis.

    For Croatia I would like to emphasize that, already last year, it was the first Member State to set up an Independent Monitoring Mechanism to guarantee the protection of fundamental rights at external borders.

    Only two weeks ago the Croatian Government signed an agreement to renew and reinforce this mechanism.

    The wait has been long, I should say too long. Expectations are high, rightly so – from authorities and at least from citizens.
    The European Parliament has adopted several resolutions to support enlargement. Overwhelmingly voting to support.

    Now, the Czech Presidency plan to have it on the agenda on the Home Affairs Council on 8 December.

    This will be a truly European decision. Schengen has survived the turbulence of recent years.
    These challenges have been surmounted because of a shared European spirit.
    And this spirit must continue – in our modern world.

    Because today Schengen is something very different from when it was created. We will soon introduce interconnected large scale IT systems, VISA information System, Schengen information system, we have Europol, we have Frontex.

    And this is needed: we must have smart, strong, and interconnected control at our external borders.

    And intensive cooperation between law enforcement agencies and authorities.

    Bulgaria, Romania, and Croatia are ready join, and I should say the European Union is ready to welcome.

    I expect MS to take this important, historical, positive decision. A moment of great pride, for the citizens of these countries.

    And most importantly a decision in all our interests.

  • PRESS RELEASE : Making Schengen stronger: Bulgaria, Romania and Croatia are ready to fully participate in the Schengen area [November 2022]

    PRESS RELEASE : Making Schengen stronger: Bulgaria, Romania and Croatia are ready to fully participate in the Schengen area [November 2022]

    The press release issued by the European Commission on 16 November 2022.

    The Commission calls upon the Council to take the necessary decisions without any further delay to allow Bulgaria, Romania and Croatia to fully participate in the Schengen area. In a Communication adopted today, the Commission takes stock of the three Member States’ strong record of achievements in the application of the Schengen rules.

    For years, these Member States have significantly contributed to the well-functioning of the Schengen area, including during the time of the pandemic and more recently when faced with the unprecedented consequences of the war in Ukraine. While the three countries are already bound in part by the Schengen rules, the internal border controls with these Member States have not been lifted and therefore they do not enjoy the full benefits that come with being part of the Schengen area without internal border controls. Becoming fully part of the Schengen area is a requirement for these Member States and they should therefore be permitted to do so given that they fulfil the conditions.

    An enlarged Schengen area without internal border controls will make Europe safer – through reinforced protection of our common external borders and effective police cooperation – more prosperous – by eliminating time lost at borders and facilitating people and business contacts – and more attractive – by significantly expanding the world’s largest common area without internal border controls.

    Bulgaria has put in place a strong border management with efficient border surveillance and systematic border checks. Fight against cross-border crime is prioritised through international police cooperation, including with Europol. The Schengen Information System is well-established. Bulgaria also demonstrated that it has the necessary structures in place to ensure respect for fundamental rights, guaranteeing access to international protection, respecting the principle of non-refoulement.

    Romania has high-quality and strong border management, including border surveillance and systematic border checks, and international police cooperation. Fight against irregular migration and trafficking in human beings are two priorities where Romania is active. The Schengen Information System is well established. Concerning the respect for fundamental rights, Romania has effective structures in place to guarantee access to international protection respecting the principle of non-refoulement.

    Bulgaria and Romania successfully completed the Schengen evaluation process in 2011. The Council recognised the completion of the evaluation process in two separate Council Conclusions, but no Council decision on the lifting of internal borders has been taken for more than 11 years. Given the time passed since 2011, as well as with a view to strengthen mutual trust and in acknowledgement of the development of the Schengen rules since 2011, Bulgaria and Romania issued a Joint Declaration in the Council in March 2022. Bulgaria and Romania invited a team of experts on a voluntary basis under the coordination of the Commission to look into the application of the latest developments of the Schengen rules.

    This voluntary fact-finding mission, which took place in October 2022, confirmed that Bulgaria and Romania have not only continued implementing the new rules and tools, but that they have also substantially reinforced the overall application of the Schengen architecture in all its dimensions. Moreover, these two countries proved to have a model track record of implementation of the Schengen rules.

    In December 2021, the Council confirmed that Croatia had fulfilled the conditions required to join the Schengen area without internal border controls. The evaluation process took place from 2016 to 2020. It included a successful targeted verification visit in 2020 to verify the implementation of actions in external border management. Croatia has made considerable efforts to ensure that controls of external borders comply with fundamental rights obligations. In particular, Croatia set up an Independent Monitoring Mechanism in June 2021, which provides for independent human rights monitoring of border-related operations involving migrants and asylum-seekers. The Mechanism directly involves Croatian stakeholders and is guided by an independent Advisory Board. Croatia was the first Member State to put in place such a mechanism. A new agreement extending and reinforcing the Independent Monitoring Mechanism was signed on 4 November 2022. This new agreement fully reflects all the recommendations issued by the Advisory Board on 27 October 2022.

    Next steps

    Under the steer of the Czech Presidency, on 8 December the Justice and Home Affairs Council will vote on the full participation of Bulgaria, Romania and Croatia to the Schengen area without internal border controls.

  • PRESS RELEASE : Digital Services Act – EU’s landmark rules for online platforms enter into force [November 2022]

    PRESS RELEASE : Digital Services Act – EU’s landmark rules for online platforms enter into force [November 2022]

    The press release issued by the European Commission on 16 November 2022.

    Today a landmark new set of EU rules for a safer and more accountable online environment enters into force with the Digital Services Act (DSA). The DSA applies to all digital services that connect consumers to goods, services, or content. It creates comprehensive new obligations for online platforms to reduce harms and counter risks online, introduces strong protections for users’ rights online, and places digital platforms under a unique new transparency and accountability framework. Designed as a single, uniform set of rules for the EU, these rules will give users new protections and businesses legal certainty across the whole single market. The DSA is a first-of-a-kind regulatory toolbox globally and sets an international benchmark for a regulatory approach to online intermediaries.

    New responsibilities for digital services

    The DSA introduces a comprehensive new set of rules for online intermediary services on how they have to design their services and procedures. The new rules include new responsibilities to limit the spread of illegal content and illegal products online, increase the protection of minors, give users more choice and better information. The obligations of different online players match their role, size and impact in the online ecosystem; an overview is available here.

    All online intermediaries will have to comply with wide-ranging new transparency obligations to increase accountability and oversight, for example with new flagging mechanism for illegal content. But a special regime is introduced for platforms with more than 45 million users: for such very large online platforms or search engines, further obligations include wide-ranging annual assessments of the risks for online harms on their services – for example with regard to exposure to illegal goods or content or the dissemination of disinformation. Under the DSA, suitable risk mitigation measures will have to be put in place, and subject to independent auditing of their services and mitigation measures.

    Smaller platforms and start-ups will benefit from a reduced set of obligations, special exemptions from certain rules, and most crucial increased legal clarity and certainty for operating across the whole EU’s single market.

    Enhanced safeguards for fundamental rights online

    The new rules protect users’ fundamental rights in the EU also in the online environment. New protections for the freedom of expression will limit arbitrary content moderation decisions by platforms, and offer new ways for users to take informed action against the platform when their content is moderated: for example, users of online platforms will now have multiple means of challenging content moderation decisions, including when these decisions are based on platforms’ terms and conditions. Users can complain directly to the platform, choose an out-of-court dispute settlement body or seek redress before Courts.

    New rules also require platforms’ terms to be presented in a clear and concise manner and to respect users’ fundamental rights.

    Very large online platforms and search engines will in addition have to undertake a comprehensive assessment of risks to fundamental rights, including the freedom of expression, the protection of personal data, and freedom and pluralism of the media online as well as the rights of the child.

    New supervisory powers for the Commission

    The DSA creates an unprecedented level of public oversight of online platforms across the Union, both at national and EU level. The Commission has powers to directly supervise VLOPs and VLOSEs, companies which individually reach more than 10% of the EU population, approximately 45 million people. Additionally, each Member State will have to designate a Digital Services Coordinator, who will supervise other entities in scope of the DSA as well as VLOPs and VLOSEs for non-systemic issues. The national coordinators and the European Commission will cooperate through a European Board of Digital Services. This EU-wide cooperation mechanism will be established between national regulators and the Commission.

    The Commission is setting up a European Centre for Algorithmic Transparency (ECAT) to support its supervisory role with in-house and external multidisciplinary knowledge. The Centre will provide support with assessments as to whether the functioning of algorithmic systems are in line with the risk management obligations that the DSA establishes for VLOPs and VLOSEs to ensure a safe, predictable and trusted online environment.

    Next Steps

    Following the entry into force of the DSA today, online platforms will have 3 months to report the number of active end users (17 February 2023) on their websites. The Commission is also inviting all online platforms to notify to it the published numbers. Based on these user numbers, the Commission will make an assessment as to whether a platform should be designated a very large online platform or search engine. Following such a designation decision by the Commission, the entity in question will have 4 months to comply with the obligations under the DSA, including carrying out and providing to the Commission the first annual risk assessment exercise. EU Member States will need to empower their Digital Services Coordinators by 17 February 2024, the general date of entry in application of the DSA, when the DSA is fully applicable for all entities in its scope.

  • Ursula von der Leyen – 2022 Speech at the G20 Summit Session on Food and Energy Security

    Ursula von der Leyen – 2022 Speech at the G20 Summit Session on Food and Energy Security

    The speech made by Ursula von der Leyen, the President of the European Commission, on 15 November 2022.

    Dear President Widodo, colleagues, the G20 is a critical forum to address global issues.

    We must end this war.

    Russia’s war is not only unjustified, unprovoked and illegal, it is causing immense suffering in Ukraine and damage to the global economy.

    Like many around this table, the EU condemns this war.

    And the G20 must now work together to address the severe global consequences of the war.

    Let me address two points:

    First, the food crisis.

    The EU is doing its utmost to alleviate the situation:

    Just to set the record again straight. There are no sanctions on agri food products and fertilisers.

    We support full-heartedly the Black Sea Grain Initiative brokered by the Secretary General Guterres and President Erdoğan. It needs to be extended.

    In addition, in the European Union, we set up alternative transport routes to bring agri-food products out of Ukraine, which we call Solidarity Lanes. Since May, more than 15 million tonnes have been exported through these routes and we are further increasing their capacity.

    And we are stepping up our global food security aid by another 210 million euros, thus we are mobilising up to 8 billion euros over the next 3 years for food assistance and to increase local food production.

    On fertilisers, that of course include ammonia, we facilitate access and movement of fertilisers and we provide financial support. In addition, we are working with the African-Caribbean Pacific countries on innovation to develop the next generation of fertilisers.

    Second, the energy crisis.

    With regard to energy, Russia’s war was an eye-opener to the European Union. We see literally, that Russia – instead of selling gas – prefers to flare gas.

    This tightens the global energy market and leads to skyrocketing prices.

    We therefore support the introduction of an oil price cap. This will also strongly benefit the low- and middle- income countries

    Our best response to this is to speed up the green transition towards clean energy. Clean energy is the only answer to both the energy crisis and the climate crises.

    And there are huge global opportunities in this, too. In the next five alone Europe will invest at least 4 billion euros in renewable energy, like hydrogen, through our Global Gateway investment strategy. And this will unleash massive private investment as well.

    This all shows how relevant the G20 is in addressing these global issues.

    We are of course grateful to the Indonesian leaderships and I am looking forward to the upcoming Presidency of India.

  • PRESS RELEASE : European Commission issues a new €6 billion NextGenerationEU green bond and raises an additional €2.5 billion to support Ukraine [November 2022]

    PRESS RELEASE : European Commission issues a new €6 billion NextGenerationEU green bond and raises an additional €2.5 billion to support Ukraine [November 2022]

    The press release issued by the European Commission on 15 November 2022.

    The European Commission has today issued a further €8.5 billion, of which €6 billion through a NextGenerationEU green bond for its recovery programme and €2.5 billion to support Ukraine under the emergency MFA programme put forward following Russia’s war of aggression against the country. The NextGenerationEU green bond has a 10-year maturity, due on 4 February 2033, and the MFA bond a 30-year maturity, due on 4 March 2053.

    With today’s green bond, the Commission has issued a total of €35.5 billion of NextGenerationEU green bonds to finance green projects under EU Member States’ Recovery and Resilience plans.

    Overall, the Commission has issued a total of €96.5 billion in long-term funding under NextGenerationEU in 2022 and €167.5 billion since the start of the programme in June 2021. Of this total, €46.5 billion have been issued since July 2022. This represents 93% of the Commission’s NextGenerationEU funding target for the second half of the year, with further transactions planned to year end as per the funding plan published in June 2022.

    As regards the proceeds from the 30-year bond, they will be used to finance the latest instalment of macro-financial assistance (MFA) loans to Ukraine. So far in 2022, the Commission has raised €6.7 billion to finance MFA loans to Ukraine. Today’s transaction follows the disbursement of €1.2 billion in the first half of the year, €1 billion in August and €2 billion in October. A further €500 million is foreseen before year-end.

    For 2023, once approved, the up to €18 billion support package the Commission proposed on 9 November 2022 will provide further highly concessional loans, to be disbursed in regular instalments. If the legislative package proposed on 09 November is adopted, the Commission will borrow on capital markets using the systems and processes that it uses to finance NextGenerationEU.

    On this basis, the Commission has so far paid out nearly €136.55 billion under the Recovery and Resilience Facility and, as of end-June, over €15 billion under other EU programmes which benefit from NextGenerationEU financing. The Commission will continue to use the funds raised to support Europe’s post-pandemic recovery, financing Member States under the Recovery and Resilience Facility as well as via other EU programmes.

    Background

    The European Commission is borrowing on international capital markets on behalf of the European Union and disbursing the funds to Member States and third countries under various borrowing programmes.

    Its largest programme is NextGenerationEU, of up to around €800 billion, which seeks to support Europe’s recovery from the coronavirus pandemic through investments in sustainability, digital solutions and resilience.

    Under its MFA programme, the Commission provides loans to countries outside of the European Union. Ukraine has been by far the largest beneficiary of this programme in 2022.

    Today’s bond syndication

    10-year bond

    The 10-year bond carries a coupon of 2.75% and came at a re-offer yield of 2.82% providing a spread of 1 bp to mid-swaps, which is equivalent to +72.4 bps over the 10-year Bund due in August 2032 and to 23 bps over the 10-year OAT due in November 2032.

    The final order book was €42 billion.

    30-year bond

    The 30-year bond carries a coupon of 3.000% and came at a re-offer yield of 3.065% providing a spread of +74 bps to mid-swaps, which is equivalent to 101.9 bps over the 30-year Bund due in August 2052 and to 17.6 bps to the 30-year OAT due in May 2053.

    The final order book was €29 billion.

    The joint lead managers of this transaction were Credit Agricole Corporate and Investment Bank, Goldman Sachs Bank Europe, Landesbank Baden-Württemberg, Morgan Stanley Europe and UniCredit Bank.

     

    10-year bond:

    Investor type  
    Bank Treasuries 46.4 %
    Fund Managers 24.9 %
    Central Banks / Official Institutions 16.4 %
    Insurance and Pension Funds 6.5 %
    Banks 4.6 %
    Hedge Funds 1.2 %
    TOTAL 100%

     

    Geography   
    Benelux 19.2 %
    Germany 16.7 %
    France 14.3 %
    UK 13.2 %
    Southern Europe 8.8 %
    Nordics 8.0 %
    Italy 7.6 %
    Asia 6.2 %
    Austria 2.8 %
    Switzerland 2.1 %
    Rest of World 0.6 %
    Other Europe 0.5 %
    TOTAL 100%

     

    30-year bond:         

    Investor type  
    Fund Managers 33.7 %
    Bank Treasuries 32.8 %
    Insurance and Pension Funds 17.0 %
    Central Banks / Official Institutions 8.9 %
    Banks 5.9 %
    Hedge Funds 1.7 %
    TOTAL 100%

     

    Geography   
    Germany 21.6 %
    UK 18.2 %
    France 15.0 %
    Southern Europe 13.3 %
    Benelux 13.1 %
    Italy 7.5 %
    Nordics 4.4 %
    Switzerland 2.4 %
    Rest of World 2.1 %
    Other Europe 1.3 %
    Austria 1.1 %
    TOTAL 100%

     

  • Ursula von der Leyen – 2022 Speech at the Partnership for Global Infrastructure Summit

    Ursula von der Leyen – 2022 Speech at the Partnership for Global Infrastructure Summit

    The speech made by Ursula von der Leyen, the President of the European Commission, on 15 November 2022.

    Thank you very much President Biden, President Widodo,

    Throughout this day, we have discussed that we live in a truly volatile global economy with obviously a changing climate. And in addition, we see that Russia’s war is rubbing salt in the wound of economic recovery from COVID-19. So this mixture made us completely re-evaluate our energy, our trade and our security relationships. What is the situation for the European Union? We have decided to completely diversify away from the Russian fossil fuels. We have understood and learnt our lesson that it was an unhealthy and unsustainable dependency and we want reliable and forward-looking connections. This is why we launched the Partnership for Global Infrastructure and Investment – PGII. We are joining forces to give our partners a powerful and a positive offer. Dear Joe, you have said that the world needs a positive investment boost. This is what it is all about. To help build the global infrastructure that we all need for sustainable growth. So invest in renewable energy, in transport corridors, in digital connections that people can trust. On the European side, the contribution is the so-called Global Gateway. It is our EUR-300-billion investment programme for abroad for the next five years combined with the wish to harness the power and the knowledge of the private sector. And we are deeply convinced that this will be a game changer for two reasons.

    First of all, Global Gateway or PGII are not just investing massively in state-of-the-art infrastructure but they are also investing in the local capacities of our partners. This is crucial. We want to strengthen our shared resilience. In the last session, we have been discussing the vaccine manufacturing example. What is special about it? If we take the example from the European Union, there is a European-American company that is sharing its mRNA technology and training local professionals. So it is about skills. Then we have African and European financial institutions that are providing the investment. And we have our regulatory medicines agencies that are sharing their know-how. No single actor in this combination could have done this alone. But together, we are really able to deliver on the ground.

    And my second point is that the Partnership for Global Infrastructure and Investment is working because it is demand-driven. We see an enormously rising demand for renewable energy, and this is a good example. As I said, Europe has decided to completely diversify away from the Russian fossil fuels and we want to leapfrog to clean energy. We need this clean energy. Not only to have it home-grown but also to import it. Our partners in the Global South have an abundance of clean energy potential and resources. So Europe could turn into the world’s largest market for their energy exports. What is necessary is investment and infrastructure. That is where we have to team up. So here are some example: At COP27, we have signed hydrogen partnerships with Namibia, Egypt and Kazakhstan. With Namibia, we are building transport corridors from the Indian Ocean to the Atlantic port of Walvis Bay.

    And there is much more to be done. I am very happy that today we launched the Just Energy Transition Partnership with Indonesia – a big step forward. The European Union will contribute over EUR 1 billion. It is the roadmap for the country’s low-carbon future. And we are investing in developing geothermal energy. Or we are engaged in talks with India on renewable hydrogen; with Chile on critical raw materials. Or we are launching a digital alliance in Latin America to build fibre-optic cables and satellite connectivity. Many of these examples show exactly the direction of travel and the shared interest that we do have. So we are ready to contribute. If we align our investment strategies and crowd in the private sector –that is crucial –, I think we can maximise our joint impact. Let us bundle our forces and make a positive difference in investment globally.

    I now have the pleasure to invite Heads of State to deliver their remarks. And I hand over the floor to Japan’s Prime Minister Kishida. Fumio, you have the floor.

  • PRESS RELEASE : Equal Pay Day – Pay Transparency essential to close the EU gender pay gap of 13% [NOvember 2022]

    PRESS RELEASE : Equal Pay Day – Pay Transparency essential to close the EU gender pay gap of 13% [NOvember 2022]

    The press release issued by the European Commission on 14 November 2022.

    Women in the European Union still continue to earn less than men for equal job, with the average gender pay gap in the EU standing at 13%. This means that for every €1 a man earns, a women will make €0.87. Progress is steady, however still too slow, with a 2.8 percentage point gap reduction in 10 years. This year, European Equal Pay Day falls on 15 November.

    Ahead of this symbolic day, Věra Jourová, Vice-President for Values and Transparency and Helena Dalli, Commissioner for Equality, said:

    “Equal work deserves equal pay: this is a founding principle of the European Union. Solving the injustice of the gender pay gap cannot come without change to the structural imbalances in society. That is why this Commission doubled down efforts on gender equality and the root causes of pay inequality.

    We are now in the final steps to see gender balance on corporate boards becoming a reality across the EU. We have already put new rights in place for women and men to have more choice and to better share caring responsibilities and work. And we count on the Member States to up their game on accessible, affordable, and high-quality early childhood education and long-term care – a prerequisite to support women’s participation in the labour market.

    We need to empower women so that they can fulfill their potential.

    However, an important piece of the puzzle is missing: pay transparency. Transparency contributes towards ending gender bias in pay from the outset and empowers workers to enforce their right to equal pay for the same work or work of equal value. We call on the European Parliament and the Council to adopt our proposed Pay Transparency Directive without undue delay.

    Everyone benefits, when all are equal.”

    Background

    Nine out of ten Europeans – women and men – think that it is unacceptable that women are paid less than men for the same work or work of equal value. Majority of European workers is in favour of the publication of average wages by job type and gender at their company.

    The gender pay gap is a symptom of more structural imbalances between men and women in economic representations, access to education, and household care responsibilities. Women are still underrepresented, and undervalued in positions of economic decision-making.  A large majority of scientists, engineers, and skilled technical workers are men. Women disproportionately bear the duties of household and childcare with 90% of the formal care workforce made up of women, and 7.7 million women out of employment because of care responsibilities.

    In March 2020, the Commission published its Gender Equality Strategy 2020-2025 setting out actions to close the gender pay gap. In November 2020, the Commission adopted its 2021-2025 Action Plan on Gender Equality and Women’s Empowerment in External Action.

    The Commission’s proposal on pay transparency, adopted on 4 March 2021, introduces to measures to ensure that women and men in the EU get equal pay for equal work.

    In June 2022, the European Parliament and the Council approved the Commission’s proposal to improve the gender balance on corporate boards. It will soon become EU law.

    The Commission’s proposal on adequate minimum wages for workers, adopted on 28 October 2020, supports gender equality by helping to close the gender pay gap and to lift women out of poverty, as more women than men earn minimum wages in Europe.

    The Commission also addresses women’s underrepresentation in the labour market by improving the work-life balance of working parents and carers. The new Directive on work-life balance entered into force on 2 August 2022.

    In September 2022, the Commission presented the European Care Strategy to ensure quality, affordable and accessible care services across the European Union. The Strategy is accompanied by two Recommendations for Member States on the revision of the Barcelona targets on early childhood education and care, and on access to affordable high-quality long-term care.