Tag: European Commission

The press release issued by the European Commission on 12 October 2022.

Today, the European Commission adopted its 2022 Enlargement Package, providing a detailed assessment of the state of play and the progress made by the Western Balkans and Türkiye on their respective paths towards the European Union, with a particular focus on implementing fundamental reforms, as well as clear guidance on the reform priorities ahead.

The Commission recommends that Bosnia and Herzegovina be granted candidate status by the Council, on the understanding that a number of steps are taken to reinforce democracy, functionality of state institutions, rule of law, the fight against corruption and organised crime, guarantee media freedom and migration management in the country. The Commission will continue supporting reform efforts and accelerate the integration of the Western Balkans as a whole.

EU High Representative for Foreign Affairs and Security Policy/Vice-President of the European Commission, Josep Borrell, said: “We are recommending today to the Council to grant candidate status to Bosnia and Herzegovina. We are infusing a positive dynamic into the process and hope for the region to take the chance and follow up on it by implementing key reforms. We are not only assessing the performance of partners, but of future member states. The assessments we make now are also about the kind of Union we want for the future. And it is clear that we believe in the European future of our partners. Russia’s brutal invasion of Ukraine brings into strong relief the importance of EU enlargement, which takes on a new geopolitical significance. It is a long term investment into peace, prosperity and stability for our continent.”

Presenting this year’s Package, consisting of Communication on EU enlargement policy and annual reports, Commissioner for Neighbourhood and Enlargement, Olivér Várhelyi, said: “The enlargement policy of the European Union is a geostrategic investment in our European continent’s peace, stability, security, and socio-economic growth. Our reports offer a factual and fair assessment and a clear guidance precisely to allow our partners to identify where they need to go faster in reforms to move ahead. There is no alternative, and it is in our common interest to accelerate the integration process, starting with the Western Balkans, where we have been investing for many years to bring them closer to the EU. The recommendation to grant candidate status is a historic moment for the citizens of Bosnia and Herzegovina. I urge the leaders of the country to make the most of this historic opportunity and swiftly proceed with the steps identified in our recommendation. This will restart the work on reforms and on the fulfilment of the 14 key priorities set in the Commission’s Opinion which remain key for the opening of accession negotiations.”

Western Balkans

In the case of Montenegro, the priority for further overall progress in negotiations remains the fulfilment of the rule of law interim benchmarks set under chapters 23 and 24. To reach this milestone, Montenegro needs to intensify its efforts to address the outstanding issues, including in the critical areas of freedom of expression and media freedom and fight against corruption and organised crime and credibility of the judiciary. This requires political stability and constructive engagement by all stakeholders, leading to the establishment of a stable government and broad political consensus in Parliament on key reforms.

Serbia should as a matter of priority establish a government, firmly committed to the EU strategic direction and reform path. Further work and political commitment are needed to continue and deepen reforms and address shortcomings, in particular in the key areas of the judiciary, fight against corruption and organised crime, media freedom, freedom of assembly and the domestic handling of war crimes. Serbia also needs to improve as a matter of priority its alignment with EU foreign and security policy which dropped significantly. It also needs to robustly tackle all forms of disinformation.

Albania and North Macedonia opened a new phase in their relations with the EU following the first intergovernmental conferences on accession negotiations on 19 July 2022. Albania and North Macedonia need to further intensify efforts in key areas of rule of law, the fight against corruption and the fight against organised crime. Albania also has to address property rights, minority issues and freedom of expression.

In June 2022, the European Council expressed its readiness to grant the status of candidate country to Bosnia and Herzegovina and invited the Commission to report on the implementation of the 14 key priorities, with special attention to those that constitute a substantial set of reforms. Despite political turmoil and the general elections of 2 October, the leaders of the political parties represented in the Parliamentary Assembly of Bosnia and Herzegovina in June 2022 committed to principles for ensuring a functional Bosnia and Herzegovina that advances on the European path. Fulfilling the 14 key priorities from the Commission’s Opinion on the country’s EU membership application will allow recommending opening EU accession negotiations.

Kosovo needs to intensify its efforts to strengthen democracy, public administration, the rule of law and to fight corruption. The Commission stands by its assessment of July 2018 that Kosovo has fulfilled all visa liberalisation benchmarks and the proposal, still pending in the Council, should be treated as a matter of urgency.

On the normalisation of relations, while both Serbia and Kosovo have remained engaged in the Dialogue, the EU expects both sides to engage more constructively in the negotiations on the legally-binding normalisation agreement in the coming period and show flexibility in order to make rapid and concrete progress.

Türkiye

In the area of democracy, the rule of law and fundamental rights, Türkiye needs to reverse the negative trend as a matter of priority with addressing the weakening of effective checks and balances in the political system. Dialogue on rule of law and fundamental rights remains an integral part of the EU-Türkiye relationship. The underlying facts leading to the assessment that Türkiye’s accession negotiations have effectively come to a standstill, still hold.

The European Council has repeatedly re-affirmed its strategic interest in a stable and secure environment in the Eastern Mediterranean and in the development of a cooperative and mutually beneficial relationship with Türkiye. However, the situation in the Eastern Mediterranean has again become tenser. Türkiye must respect the sovereignty and territorial integrity of all EU Member States.

Türkiye’s continued policy of not aligning with restrictive measures against Russia is of concern due to the free circulation of products, including dual use goods, within the EU-Turkey Customs Union. Türkiye also needs to take decisive steps to improve alignment with EU CFSP, including EU restrictive measures, and avoid actions that go against its stated objective to join the EU.

Türkiye remains a key partner for the European Union in essential areas of joint interest, such as migration, counterterrorism, economy, trade, energy, food security and transport. High-level dialogues and intensified engagement in these areas continued. Türkiye has facilitated dialogue between Russia and Ukraine and played a key role in the agreement on the export of grains, although it has also decided to increase trade and financial relations with Russia.

Next steps

It is now for the Council to consider today’s recommendations of the Commission and take decisions on the steps ahead.

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

Today, the EU signed a €100 million grant agreement (about US$97.2 million) for the International Monetary Fund’s (IMF) Poverty Reduction and Growth Trust (PRGT). These funds will allow the IMF to make about €630 million worth of zero interest loans for PRGT-eligible African, Caribbean and Pacific countries (ACP) facing balance of payments difficulties. Access to affordable finance is key to help these countries address the economic and food crisis situation worsened by Russia’s war of aggression against Ukraine. The EU’s contribution is part of Team Europe’s response to the crisis as it complements pledges by EU Member States to channel Special Drawing Rights (SDR) to the IMF’s Trusts for on-lending and their grants to the IMF’s PRGT Subsidy Account. Team Europe has so far pledged to channel SDRs contributions equivalent to about $23 billion.

Commissioner for International Partnerships, Jutta Urpilainen, said: “Russia’s war of aggression against Ukraine has made many African, Caribbean and Pacific countries more vulnerable at a time when they were still struggling with the consequences of the COVID-19 pandemic, and millions of people are pushed into poverty and hunger. With our contribution to the IMF’s Poverty Reduction and Growth Trust, we want to help them address this crisis and avoid further deepening of inequalities. Today’s signature also marks our commitment as Team Europe to multilateral solutions to tackle today’s most pressing challenges. Our partnership with the IMF is of key relevance in this regard.”

Commissioner for Economy Paolo Gentiloni, said: “The economic shockwaves from Russia’s war against Ukraine are hitting low-income countries hardest, spurring demand for concessional loans from the IMF’s Poverty Reduction and Growth Trust. It is essential that we maximise the resources available for this key financing tool. With today’s €100 million contribution, the Commission is playing its part and complementing the on-lending of EU Member States’ Special Drawing Rights. These efforts bring us closer to the G20 global ambition of $100 billion of voluntary contributions to vulnerable countries, a target we must strive collectively to achieve.”

Managing Director of the IMF, Kristalina Georgieva said: “I am very grateful to the EU and its Member States for their continued support to low-income countries facing crisis after crisis. Its grant contribution today of €100 million will help to subsidize PRGT loans and support our provision of zero-interest lending to our most vulnerable members. I urge other countries to also contribute to the PRGT so we can support our members during these difficult times.”

Access to concessional/zero-interest loans provides affordable finance that increases liquidity and available budgetary resources in countries facing balance of payments difficulties, helping them to achieve, maintain, or restore a stable and sustainable macroeconomic and fiscal position. It also prevents depletion of international reserves, supports the import of essential goods and putting in place adequate social protection schemes for the most vulnerable. Concessional support through the PRGT is interest-free, with maturities up to 10 years.

Background

This announcement is part of the broader €600 million package already announced from the reserves under the 10th and 11th European Development Funds to address the current food security crisis in ACP countries further aggravated by Russia’s war of aggression against Ukraine. The package has three components that are complementary and mutually reinforcing, supporting: food production and resilience of food systems (€350 million), humanitarian assistance (€150 million) and macro-economic support through the IMF’s PRGT (€100 million). With the additional €600 million, the EU expects to allocate for food security and food systems programmes in partner countries €7.7 billion until 2024 worldwide.

The IMF provides broad support to low-income countries through surveillance and capacity-building activities, as well as concessional financial support to help them achieve, maintain, or restore a stable and sustainable macroeconomic position consistent with strong and durable poverty reduction and growth.

The press release issued by the European Commission on 11 October 2022.

EU trade deals mean increased exports, more stable economic relations and secure access to resources, a new report out today shows. EU exports to preferential partners for the first time surpassed €1 trillion in 2021, according to the Commission’s 2nd Annual Report on the Implementation and Enforcement of EU Trade Agreements. The Report also shows that EU efforts to break down trade barriers and support small businesses are helping EU exports and thus supporting European jobs.

Executive Vice-President and Commissioner for Trade, Valdis Dombrovskis, said: “This report provides welcome news in the face of the many economic and geostrategic challenges Europe faces. It highlights that our EU trade strategy is bearing fruit: we have removed more market access barriers and we have been able to better support our SMEs. Our focus now is on growing the EU’s broad network of trade agreements, which play a crucial role in helping our economies to grow at this time of economic uncertainty, securing privileged access to key markets for our exports, as well as access to key inputs and raw materials via diversified and resilient supply chains. Cooperation with reliable global partners matters more than ever in this changing geopolitical landscape.”

Making the most of trade agreements and their effective implementation is becoming increasingly important: for example, 44% of the EU’s trade took place under preferential trade agreements in 2021, with this expected to rise to 47.4% with the incorporation of agreements currently under adoption or ratification.

Exports from the EU to preferential partners (minus the UK) grew more (16%) than EU exports to all trading partners (13%) between 2020 and 2021.

EU trade agreements facilitate the imports of raw materials. For example, the EU currently imports 24% of its critical raw materials from preferential trading partners; this will rise to 46% once a free trade agreement with Australia, currently under negotiation, is in place. The modernisation of the agreement with Chile, the EU’s largest source of refined lithium (78%), is expected to further enhance reliable sourcing of this key resource and therefore also our green and digital transitions.

More barriers to trade resolved and progress on trade disputes

The EU’s exports in 2021 were €7.2 billion higher thanks to the removal of several trade barriers between 2015 and 2020.

In 2021, 39 trade barriers (six more than in 2020) were fully or partially removed, mostly through cooperative engagement with the trading partners concerned. Their elimination had an immediate positive effect on EU exporters, notably in the food sector as most of them concerned sanitary and phytosanitary measures. Canada, for example, accepted the EU harmonised poultry meat certificate following cooperation with the Commission, EU Member States and business. Longstanding engagement with South Korea resulted in a resumption of EU Member States’ exports of pork and poultry in September 2022, after Korea recognised the EU’s stringent regionalisation measures to control outbreaks of African swine fever. This cooperation has the potential to unlock over one billion euros of trade in the next years.

Substantial progress was also made in addressing tariff barriers with Egypt so as to avert the planned re-reintroduction of customs duties on cars imported from the EU. Similar progress was made in addressing non-tariff barriers hampering EU exports of cosmetics to Turkey.

Dispute settlement activity at the World Trade Organization (WTO) continued despite the paralysis of the latter’s Appellate Body. The Commission settled a dispute on wind energy with the UK and advanced with a number of other partners, notably with the US on aluminium and with Turkey on pharmaceuticals. Progress was also made on implementing the panel report in the EU’s bilateral dispute with South Korea on trade and labour, with three fundamental ILO Conventions entering into force in April 2022. The Commission also launched several new challenges of breaches of trade rules that harm EU economic interests, including against China and Egypt.

The EU Trade Barriers Regulation helped to solve differences with Mexico over tequila exports.

Background

This is the Commission’s second consolidated annual report on trade implementation and enforcement actions in 2021 and the first quarter of 2022. The report focusses on results achieved at the WTO and within the framework of the EU’s network of preferential trade agreements, promoting the agreements and removing or averting barriers, thus helping SMEs. The report also provides an update on a number of EU trade-related legislative instruments, notably the International Procurement Instrument (IPI) in force since 29 August or the Commission’s proposal for an Anti-Coercion Instrument (ACI).

Under the guidance of Executive Vice-President Valdis Dombrovskis, the Commission’s Chief Trade Enforcement Officer (CTEO) steers efforts on implementation and enforcement and reports to the European Parliament and the Council. The Annual Implementation and Enforcement Report is the main instrument for this reporting.

The press release issued by the European Commission on 11 October 2022.

The European Commission has today issued €11 billion in a dual tranche transaction, the proceeds of which will be used to support Ukraine under the EU’s MFA programme and Europe’s recovery under the flagship NextGenerationEU programme. The deal consisted of a €5 billion tap of the 7-year bond due on 4 December 2029 and a new 20-year bond of €6 billion due on 4 November 2042.

Commissioner in charge of Budget and Administration, Johannes Hahn, said: “EU funding is a concrete expression of solidarity with Ukraine and Member States recovering from the pandemic. Today, we have successfully and under challenging market conditions raised a further €11 billion. Of them, €2 billion will be released swiftly to help Ukraine in this war of aggression on European soil.”

From the funds raised through the sale of the new 20-year bond, €2 billion will be granted as loans to Ukraine. This will be the first instalment of the €5 billion in macro-financial assistance (MFA) loans to Ukraine agreed on 20 September 2022.

With today’s transaction, the Commission has issued a total of €86.6 billion in long-term funding under NextGenerationEU in 2022 and €157.6 billion since the start of the programme in June 2021. Of this total, €36.6 billion have been issued since July 2022. This represents 73% of the Commission’s NextGenerationEU funding target for the second half of the year, with further transactions – both auctions and syndications – planned for late October, November and possibly December 2022, as per the funding plan published in June 2022.

Following today’s transaction, the Commission has so far raised €3 billion under its MFA programme for Ukraine in the second half of the year, on top of €1.2 billion earlier in 2022. This will be followed by further loans to Ukraine in the coming weeks. This has been part of the extraordinary support of €19 billion secured by Team Europe for Ukraine to date.

On the basis of the funds raised, the Commission has so far paid out nearly €113 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

NextGenerationEU is a temporary recovery instrument of more than €800 billion in current prices to support Europe’s recovery from the coronavirus pandemic and help build a greener, more digital and more resilient Europe.

To finance NextGenerationEU, the Commission – on behalf of the EU – is raising from the capital markets up to around €800 billion between now and end-2026.

In parallel to NextGenerationEU, the Commission runs several back-to-back funding programmes to finance the specific needs of the EU Member States and third countries. This includes the macro-financial assistance programme, under which the Commission is currently providing support to Ukraine, among others.

 

Today’s bond syndication 7-year tap The 7-year bond carries a coupon of 1.625% and came at a re-offer yield of 3.026% providing a spread of -21 bps to mid-swaps, which is equivalent to +88.3 bps over the 7-year Bund due in August 2029 and to 47.8 bps over the 7-year OAT due in November 2029. The final order book was of €13.9 billion. 20-year bond The 20-year bond carries a coupon of 3.375% and came at a re-offer yield of 3.404% providing a spread of +32 bps to mid-swaps, which is equivalent to 101.7 bps over the 22-year Bund due in July 2044 and to 20.2 bps to the 21-year OAT due in May 2043. The final order book was of €26 billion. The joint lead managers of this transaction were Barclays, BofA Securities, Deutsche Bank, J.P. Morgan, and NatWest Markets.

 

7-year tap

Investor type
Bank Treasuries	54%
Fund Managers	26%
Insurance and Pension Funds	5%
Central Banks / Official Institutions	8%
Banks	6%
Hedge Funds	1%
Grand Total	100%

 

Geography
France	15%
UK	27%
Other Europe	12%
Germany	7%
Italy	11%
Iberia	10%
Rest of World	0%
Benelux	3%
Nordics	6%
Switzerland	6%
Asia	3%
Grand Total	100%

 

20-year bond

Investor type
Bank Treasuries	31%
Fund Managers	39%
Insurance and Pension Funds	18%
Central Banks / Official Institutions	5%
Banks	6%
Hedge Funds	1%
Grand Total	100%

 

Geography
France	20%
UK	8%
Other Europe	12%
Germany	13%
Italy	9%
Iberia	8%
Rest of World	15%
Benelux	9%
Nordics	4%
Switzerland	2%
Asia	0%
Grand Total	100%

 

The press release issued by the European Commission on 10 October 2022.

The Commission announced a series of measures to continue supporting those fleeing the unprovoked Russian aggression.

A new online job-search tool launched today will help people fleeing Russia’s invasion of Ukraine to successfully find a job in the European Union. After registering with the EU Talent Pool pilot initiative, those under temporary protection can upload their CVs, so that their profiles are available to more than 4,000 employers, national public employment services and private employment agencies. Ensuring a swift and effective integration into the labour market is important both for host communities, and for those fleeing the war to rebuild their lives.

Commissioner for Jobs and Social Rights, Nicolas Schmit, said: “The EU Talent Pool pilot demonstrates our continued solidarity with Ukraine. Not just in words, but with action. It is a tragedy that millions of people have been forced to flee their homes. It is our collective duty to provide as much support as we can to help them make a life for themselves in the EU. Finding a quality job means financial independence and it puts you on the path for better social integration.”

Commissioner for Home Affairs, Ylva Johansson, said: “From the first week of war the EU has granted immediate protection to those in need. Thanks to EU Temporary Protection, those same people arriving in the EU have access to the labour market. The talent pool makes access to the labour market easier. Our aim is to ensure that Ukrainians can continue to benefit from the Temporary Protection Directive, which I believe should continue to apply at least until March 2024. We also stand ready to support those who decide to go home to Ukraine and they can rely on us if they decide to come back to the EU. This week, I will discuss all these matters with Ministers in the upcoming JHA Council.”

The Executive Director of the European Labour Authority, Cosmin Boiangiu, said: “The EURES portal and network are a powerful instrument to match employers and jobseekers across Europe. There could not be a better European tool to deliver the Talent Pool pilot on such short notice, and facilitate the labour integration of Ukrainians seeking temporary protection and shelter in the EU.”

In its 2022 Communication on attracting skills and talent to the EU, the Commission proposed to launch an EU Talent Pool pilot to identify and map the skills of people that have fled Russia’s invasion of Ukraine, to facilitate their matching with EU employers and their labour market integration. This project is a joint initiative of the Commission and the European Labour Authority, with the continued involvement and assistance of the European Migration Network.

EU Talent Pool pilot helps to match jobseekers with employers

The EU Talent Pool pilot, available in English, Ukrainian and Russian, is implemented through the EURES portal, a job-searching portal managed by the European Labour Authority. It brings together national employment services, private employment agencies and employers across the EU. EURES contains over 3 million job vacancies and 4,000 employers, and new employers are welcome to sign up to it. The EU Talent Pool pilot is open to all jobseekers who benefit from temporary protection under the EU Temporary Protection Directive, or adequate protection under national law providing them the right to work. For Member States, participation in the EU Talent Pool pilot is voluntary.

After registration, the tool guides jobseekers through a process where they can identify the skills they have and upload their CV. The CVs published in the EU Talent Pool pilot will be visible to public employment services in all participating countries as well as to registered employers in all countries who are part of the European cooperation network of employment services (EURES). Jobseekers can also browse through all job vacancies published on the EURES portal.

Next steps

As indicated in the recently adopted migration report, the Commission will make full use of the provisions of the temporary protection directive and will foresee the extension of the protection afforded to those who fled Ukraine by one year, until March 2024. This will be now discussed with Member States.

At the same time, the Commission is working through the Solidarity Platform to provide guidance and solutions to ensure that those who go back de-register or notify the competent authorities safe in the knowledge that they can re-enter the EU easily and access their rights that temporary protection affords.

The pilot project launched today will build into a wider EU Talent Pool as proposed in the Skills and Talent package. The EU Talent Pool is one of the key deliverables of the New Pact on Migration and Asylum which aims at to attracting talent to the EU and support integration in local communities.

The press release issued by the European Commission on 6 October 2022.

The Commission welcomes the Council’s adoption of an eighth package of hard-hitting sanctions against Russia for its aggression against Ukraine. This package – which has been closely coordinated with our international partners – responds to Russia’s continued escalation and illegal war against Ukraine, including by illegally annexing Ukrainian territory based on sham “referenda”, mobilising additional troops, and issuing open nuclear threats.

This package introduces new EU import bans worth €7 billion to curb Russia’s revenues, as well as export restrictions, which will further deprive the Kremlin’s military and industrial complex of key components and technologies and Russia’s economy of European services and expertise. The sanctions also deprive the Russian army and its suppliers from further specific goods and equipment needed to wage its war on Ukrainian territory. The package also lays the basis for the required legal framework to implement the oil price cap envisaged by the G7.

Specifically, this package contains the following elements:

Additional listings

Additional individuals and entities have been sanctioned. This targets those involved in Russia’s occupation, illegal annexation, and sham “referenda” in the occupied territories/oblasts of Donetsk, Luhansk, Kherson, and Zaporizhzhia regions. It also includes individuals and entities working in the defence sector, such as high-ranking and military officials, as well as companies supporting the Russian armed forces. The EU also continues to target actors who spread disinformation about the war.

EU restrictive measure target key decision makers, oligarchs, senior military officials and propagandists, responsible for undermining Ukraine’s territorial integrity.

Extension of restrictions to the oblasts of Kherson and Zaporizhzhia

The geographical scope of the restrictive measures in response to the recognition of the non-government controlled areas of the Donetsk and Luhansk oblasts of Ukraine and the ordering of Russian armed forces into those areas has been extended to cover all the non-government controlled areas of Ukraine in the oblasts of Donetsk, Luhansk, Zaporizhzhia and Kherson.

New export restrictions

Additional export restrictions have been introduced which aim to reduce Russia’s access to military, industrial and technological items, as well as its ability to develop its defence and security sector.

This includes the banning of the export of coal including coking coal (which is used in Russian industrial plants), specific electronic components (found in Russian weapons), technical items used in the aviation sector, as well as certain chemicals.

A prohibition on exporting small arms and other goods under the anti-torture Regulation has been added.

New import restrictions

Almost €7 billion worth of additional import restrictions have been agreed.

It includes, for example, a ban on the import of Russian finished and semi-finished steel products (subject to a transition period for some semi-finished), machinery and appliances, plastics, vehicles, textiles, footwear, leather, ceramics, certain chemical products, and non-gold jewellery.

Implementing the G7 oil price cap

Today’s package marks the beginning of the implementation within the EU of the G7 agreement on Russian oil exports. While the EU’s ban on importing Russian seaborne crude oil fully remains, the price cap, once implemented, would allow European operators to undertake and support the transport of Russian oil to third countries, provided its price remains under a pre-set “cap”. This will help to further reduce Russia’s revenues, while keeping global energy markets stable through continued supplies. It will thus also help address inflation and keep energy costs stable at a time when high costs – particularly elevated fuel prices – are a great concern to all Europeans.

This measure is being closely coordinated with G7 partners. It would take effect after 5 December 2022 for crude and 5 February 2023 for refined petroleum products, after a further decision by the Council.

Restrictions on State-owned enterprises

Today’s package bans EU nationals from holding posts in the governing bodies of certain state-owned enterprises.

It also bans all transactions with the Russian Maritime Register, adding it to the list of state-owned enterprises which are subject to a transaction ban.

Financial, IT consultancy and other business services

The existing prohibitions on crypto assets have been tightened by banning all crypto-asset wallets, accounts, or custody services, irrespective of the amount of the wallet (previously up to €10,000 was allowed).

The package widens the scope of services that can no longer be provided to the government of Russia or legal persons established in Russia: these now include IT consultancy, legal advisory, architecture and engineering services. These are significant as they will potentially weaken Russia’s industrial capacity because it is highly dependent on importing these services.

Deterring sanctions circumvention

The EU has introduced a new listing criterion, which will allow it to sanction persons who facilitate the infringements of the prohibition against circumvention of sanctions.

More Information

The EU’s sanctions against Russia are proving effective. They are damaging Russia’s ability to manufacture new weapons and repair existing ones, as well as hinder its transport of material.

The geopolitical, economic, and financial implications of Russia’s continued aggression are clear, as the war has disrupted global commodities markets, especially for agrifood products and energy. The EU continues to ensure that its sanctions do not impact energy and agrifood exports from Russia to third countries.

As guardian of the EU Treaties, the European Commission monitors the enforcement of EU sanctions across the EU.

The EU stands united in its solidarity with Ukraine, and will continue to support Ukraine and its people together with its international partners, including through additional political, financial, and humanitarian support.

The press release issued by the European Commission on 4 October 2022.

Commissioner for Crisis Management, Janez Lenarčič, is visiting Pakistan this week following the unprecedented flooding emergency that resulted in a rapid deteriorating of the humanitarian situation. During his visit, the Commissioner announced €30 million in new EU humanitarian aid for Pakistan. This new funding aims to address urgent needs such as shelter, water and sanitation, food and nutrition, health, protection, education in emergencies and cash assistance, focusing on the most affected areas of the country, notably Sindh, Balochistan, Punjab, and Khyber Pakhtunkhwa. Given the scale of the crisis, psychological support needs will also be addressed.

Commissioner Lenarčič said: “People in Pakistan are suffering the devastating consequences of an unprecedented flooding emergency. Our thoughts are with those who lost family members, friends and their own homes. What is more, many livelihoods have been lost. With this new funding, the EU reaffirms its continued support to Pakistan and stands by the most vulnerable to help them fulfil basic needs. Once again, however, nature reminded us of the impact of global warming. Mainstreaming disaster preparedness and prevention in EU funded projects will therefore remain our top priority within the provision of humanitarian assistance.”

During his visit, the Commissioner met with Pakistan Prime Minister Shehbaz Sharif, Minister of State for Foreign Affairs Hina Rabbani Khar, and representatives of UN agencies. He also visited the water purification plant sent by Denmark through the EU Civil Protection Mechanism and an EU funded project supporting the response to the floods in one of the most affected areas in Sindh province. After this visit, he also met with humanitarian organisations and partners to discuss about the current situation.

Background

Since the start of heavy precipitations in mid-June 2022, the National Disaster Management Authority of Pakistan reported the death of over 1,600 people and over 12,800 people injured, and a staggering estimated total of more than 33 million people affected by the emergency and almost 8 million people displaced.

The most affected districts are located in Sindh, Balochistan and Khyber Pakhtunkhwa, where floods caused widespread displacement, economic losses and other damages. Thanks to its solid presence on the ground, EU humanitarian staff performed missions to Sindh, Balochistan and Khyber Pakhtunkhwa to assess the situation and identify how the EU could best support Pakistan and its people.

In the immediate aftermath of the emergency the EU released over €2.35 million in humanitarian aid and has been coordinating incoming aid offers from its Member States including Belgium, Sweden, France, Denmark, Austria, Greece and Slovenia.

Following the request of assistance from Pakistani authorities, the European Civil Protection Mechanism also deployed one Liaison Officer and a team of experts to support operations and help coordinating the arrival of further assistance. The EU’s Copernicus satellite service has been activated to collect data to support the assessment of the situation in the most affected areas.

The press release issued by the European Commission on 28 September 2022.

Today, the Commission calls on Member States to modernise their minimum income schemes as part of the ongoing pledge to reduce poverty and social exclusion in Europe. The proposed Council Recommendation on adequate minimum income ensuring active inclusion sets out how Member States can modernise their minimum income schemes to make them more effective, lifting people out of poverty, while promoting the labour market integration of those who can work.

Minimum income is cash payments that help households who need it to bridge the gap to a certain income level to pay the bills and live a life in dignity. They are particularly important in times of economic downturns, helping to cushion drops in household income for people most in need, thereby contributing to sustainable and inclusive growth. They are generally complemented with in-kind benefits giving access to services and targeted incentives to access the labour market. In this way, minimum income schemes are not a passive tool but act as a springboard to improve inclusion and employment prospects. Well-designed minimum income schemes strike a balance between alleviating poverty, incentivising work and maintaining sustainable budgetary costs.

Minimum income and social safety nets must incorporate sufficient incentives and support for beneficiaries who can work to reintegrate in the labour market. Their design should therefore also help to fully realise the potential of the green and digital transitions by supporting labour market transitions and active participation of disadvantaged people.

The social and economic advantages of adequate and targeted social safety nets became even more important during the lockdowns linked to the COVID-19 pandemic. Adequate minimum income is highly relevant in the current context of rising energy prices and inflation following Russia’s invasion of Ukraine as income measures can be targeted to specifically benefit vulnerable groups.

The proposal will help achieve the EU’s 2030 social targets to reduce the number of people at risk of poverty of exclusion by at least 15 million people as set in the European Pillar of Social Rights Action Plan. It will also help Member States reach the goal that at least 78% of the population aged 20 to 64 should be in employment.

Executive Vice-President for an Economy that Works for People, Valdis Dombrovskis, said: “Social protection systems help to reduce social inequalities and differences. They ensure a dignified life for those who cannot work – and for those who can, encourage them back to a job. At a time when many people are struggling to make ends meet, it will be important this autumn for Member States to modernise their social safety nets with an active inclusion approach to help those most in need. This is how we can fight poverty and social exclusion, and help more people into work during this challenging period.”

Commissioner for Jobs and Social Rights, Nicolas Schmit, said: “Today, more than one in five people in the EU are at risk of poverty and social exclusion. Minimum income schemes exist in all Member States, but analysis shows that they are not always adequate, reach all those in need, or motivate people to return to the labour market. Against a backdrop of soaring living costs and uncertainty, we must ensure our safety nets are up to the task. We should pay particular attention to getting young people back into work also through income support, so they do not get trapped in a vicious cycle of exclusion.”

Well-designed social safety nets to help people in need

While minimum income exists in all Member States, their adequacy, reach, and effectiveness in supporting people vary significantly.

Today’s proposal for a Council Recommendation offers clear guidance to Member States on how to ensure that their minimum income schemes are effective in fighting poverty and promoting active inclusion in society and labour markets.

Member States are recommended to:

• Improve the adequacy of income support:

• Set the level of level of income support through a transparent and robust methodology.
• While safeguarding incentives to work, ensure income support gradually reflects a range of adequacy criteria. Member States should achieve the adequate level of income support by the end of 2030 at the latest, while safeguarding the sustainability of public finances.
• Annually review and adjust where necessary the level of income support.

• Improve the coverage and take-up of minimum income:

• Eligibility criteria should be transparent and non-discriminatory. For instance, to promote gender equality and economic independence, especially for women and young adults, Member States should facilitate the receipt of income support per person, instead of per household, without necessarily increasing the overall level of benefits per household. In addition, further measures are needed to ensure the take-up of minimum income by single-parent households, predominantly headed by women.
• Application procedures should be accessible, simplified and accompanied by user-friendly information.
• The decision on a minimum income application should be issued within 30 days from its submission, with the possibility of reviewing this decision.
• Minimum income schemes should be responsive to socio-economic crises, for instance by introducing additional flexibility regarding eligibility.

• Improve access to inclusive labour markets:

• Activation measures should provide sufficient incentives to (re)enter the labour market, with particular attention to helping young adults.
• Minimum income schemes should help people to find a job and keep it, for instance through inclusive education and training as well as (post)placement and mentoring support.
• It should be possible to combine income support with earnings from work for shorter periods, for instance during probation or traineeships.

• Improve access to enabling and essential services:

• Beneficiaries should have effective access to quality enabling services, such as (health)care, training and education. Social inclusion services like counselling and coaching should be available to those in need.
•  In addition, beneficiaries should have continuous effective access to essential services, such as energy.

• Promote individualised support:

• Member States should carry-out an individual, multi-dimensional needs assessment to identify barriers that beneficiaries face for social inclusion and/or employment and the support needed to tackle them.
• On this basis, no later than three months from accessing minimum income, beneficiaries should receive an inclusion plan defining joint objectives, a timeline and a tailored support package to reach this.

• Increase the effectiveness of governance of social safety nets at EU, national, regional and local level, as well as monitoring and reporting mechanisms.

EU funding is available to support Member States in improving their minimum income schemes and social infrastructure through reforms and investments.

Better impact assessments for fair policies

Today, the Commission also presents a Communication on better assessing the distributional impact of Member States’ reforms. It offers guidance on how to better target policies in a transparent way, making sure that they contribute to addressing existing inequalities and taking into account the impact on different geographical areas and population groups, like women, children and low-income households. The Communication covers guidance on the policy areas, tools, indicators, timing, data and dissemination of the assessment. The guidance presented today is also relevant for Member States when designing their minimum income schemes.

Next steps

The Commission proposal for a Council Recommendation on adequate minimum income ensuring active inclusion will be discussed by Member States with a view to adoption by the Council. Once adopted, Member States should report to the Commission every three years on their progress on implementation. The Commission will also monitor progress in implementing this Recommendation in the context of the European Semester. The proposed instrument – a Council Recommendation – gives Member States enough leeway to determine how to best achieve the objectives of this initiative, taking into account their specific circumstances.

Background

Over one in five persons – or 94.5 million people in total – were at risk of poverty or social exclusion in the EU in 2021. Social safety nets play a key role in supporting these people and helping them to (re)enter the labour market if they can. However, more effective social protection systems are needed, with around 20% of jobless people at risk of poverty not being eligible to receive any income support and estimates of around 30% to 50% of the eligible population not taking up minimum income support.

The European Pillar of Social Rights includes principle 14 on the right to adequate minimum income. To promote social inclusion and employment and ensure that no one is left behind, the Commission has presented many additional initiatives, which complement today’s proposal. This includes the proposal for a Directive on adequate minimum wages to ensure that work pays for a decent living; the European Child Guarantee to give children free and effective access to key services; and the European Care Strategy to improve the situation especially of women and people in the care sector. The Commission Recommendation for Effective Active Support to Employment (EASE) offers guidance on active labour market policies, including upskilling and reskilling. The Council Recommendation on ensuring a fair transition towards climate neutrality, sets out specific guidance to implement policies for a fair transition, with particular attention to vulnerable households. Finally, the Commission proposal for a Regulation on an emergency intervention to address high energy prices seeks to address the dramatic energy price increases by reducing consumption and sharing the exceptional profits of energy producers with those who need help the most.

The press release issued by the European Commission on 26 September 2022.

Following the recent proposal on new rules for addressing Single Market future emergencies, the Commission is today showcasing the availibility of essential  existing tools to ensure the free movement of goods and services for  smooth functioning of the Single Market.

First, the Commission is today publishing a report on the implementation of the Single Market Transparency Directive (STMD) showing that Member States are becoming more transparent in adopting national technical regulations for products and information society services. They have also increased cooperation among Member States and with the European Commission when adressing potential challenges from these to ensure the smooth functioning of the Single Market. This transparency principles helped to have a coordinated approach during the difficult Covid-19 pandemic ensuring the Single Market continued to deliver for citizens and businesses.

Secondly, the Commission is today also holding a meeting of the Single Market Enforcement Task Force, a key forum for cooperation among Member States and the Commission to address concrete barriers in the Single Market. During today’s meeting, the Commission presents several best practices of Member States streamlining administrative requirements for cross border service providers. For example the use of modern electronic tools to exchange documents, and reduce the administrative burden for businesses. Member States agreed to examine the different best practices and see which could work for them.

Today’s report on the Implementation of the Single Market Transparency Directive, which covers the period  2016-2020, shows that during this time Member States have notified a total of 3500 national draft technical product and IT service related regulations. The highest proprotion of these concerened the construction sector, followed by rules affecting agricultural products, fishery, aquaculture and other foodstuffs. At the same time, the report finds that Member States are increasingly interested in examining such draft rules, noting an almost 4-fold increase in views provided by Member States on other Member States’ notifications between 2016 and 2020. .

Similarly, the Single Market Enforcement Task Force offers a regular forum to discuss existing barriers in the Single Market. At the meeting today, the Task Force will debrief on the results of current projects, like the prior checks and document requirements for recognition of professional qualifications, and permits for the deployment of renewable energy, which is especially important in the context of the postpandemic Single Market for services.

Background

Since 1998, the Single Market Transparency Directive has been a key tool to prevent barriers in the Single Market. The Directive requires Member States to notify the Commission about their drafts technical rules on products and information society services before their adoption, while allowing the Commission and other Member States to examine these in view of preventing possible barriers to the Single Market. It also gives a chance to businesses, including SMEs to examine these drafts national technical rules, make their voice heard and adapt their activities accordingly well in time. To ensure transparency, all national measures, as well as the contributions by the Comission and Member States responding to these are publically available online via the Technical Regulations Information Service (TRIS).

The Single Market Enforcement Task Force was set up in 2020; immediately providing an essential forum to remove barriers introduced by Member States during the COVID pandemic to ensure the availability of essential medical supplies and protective equipment in Europe. In addition, the Task Force has also played an important role in addressing certain restrictions in the agri-food sector or helping to remove requirements on certain cross-border service providers.

The press release issued by the European Commission on 27 September 2022.

d a Joint Statement by EU and Ukrainian financial institutions to provide access to affordable, accessible and transparent remittance services to Ukraine.

Today, remittances from Ukrainians in the EU are a vital way of providing means of subsistence to their families and relatives at home. In the face of the growing humanitarian crisis triggered by Russian‘s unprovoked aggression against Ukraine, lowering the costs of remittances could result in big savings for Ukrainians and their families. It could also help to scale up aid to the people of Ukraine.

With today‘s Joint Statement, signatories commit to:

• Affordable remittances: voluntarily lowering total fees and converging towards the 3% target in the Sustainable Development Goals and G20 Roadmap on cross border payments;
• Transparent remittances: disclosing total fees, including transfer fees and foreign exchange margin;
• Accessible remittances: seeking to maintain the accessibility of remittance services through a network of agents and the development of digital services.

Mairead McGuinness, Commissioner for Financial Stability, Financial Services and the Capital Markets Union, said: “Since Russian‘s illegal invasion, the European Union has been and remains steadfast in its support of Ukraine and its people. As the war continues, so too does our support for Ukraine. The people of Ukraine are suffering the horrible consequences of war.  As President von der Leyen said in her State of the Union address, Europe’s solidarity with Ukraine will remain unshakeable. Finding practical solutions to help Ukrainians living abroad, many forced to flee as a consequence of the war, to send remittances to their loved ones at home is a very concrete example of our solidarity. I welcome that EU and Ukrainian companies active in remittances have come together to achieve this objective. We are open to, and in fact would welcome, more providers joining the statement for affordable, accessible and transparent remittance services to Ukraine.”

Today‘s Joint Statement follows a roundtable meeting facilitated by the Commission and the National Bank of Ukraine with EU and Ukrainian remittance service providers, with participation of the World Bank. This initiative follows previous efforts to support Ukrainian refugees, amongst which a coordinated approach on the conversion of hryvnia banknotes by people fleeing Ukraine.

All roundtable participants have agreed to the Joint Statement. This initiative remains open: other financial sector institutions active in the provision of remittance services in the EU and Ukraine are encouraged to join the initiative and endorse the Statement.

Background

The Joint Statement applies for 9 months as of today. It will then be reviewed to take into account the fast-changing situation.