Tag: European Commission

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.

The press release issued by the European Commission on 19 September 2022.

Today, the Commission is presenting the new Single Market Emergency Instrument (SMEI). This crisis governance framework aims to preserve the free movement of goods, services and persons and the availability of essential goods and services in the event of future emergencies, to the benefit of citizens and businesses across the EU. While the Single Market has proven to be our best asset in crisis management, the COVID-19 pandemic has highlighted structural shortcomings hampering the EU’s ability to effectively respond to emergency situations in a coordinated manner. Unilateral measures caused fragmentation, worsening the crisis and affecting particularly SMEs.

Executive-Vice President for a Europe Fit for the Digital Age, Margrethe Vestager, said: ”The COVID-19 crisis made it clear: we must make our Single Market operational at all times, including in times of crisis. We must make it stronger. We need new tools that allow us to react fast and collectively. So that whenever we face a new crisis, we can ensure that our Single Market remains open and that goods of vital importance remain available to protect European people. The new Single Market Emergency Instrument makes it possible.”

Commissioner for the Internal Market, Thierry Breton, said: “In the sequence of crises of the past few years, we worked hard to preserve a smoothly functioning Single Market, keep our borders and supply chains open and ensure the availability of products and services that our citizens needed. But we must be better prepared to anticipate and respond to the next crisis. Rather than relying on ad hoc improvised actions, the Single Market Emergency Instrument will provide a structural answer to preserve the free movement of goods, people and services in adverse times. The SMEI will ensure better coordination with Member States, help pre-empt and limit the impact of a potential crisis on our industry and economy, and equip Europe with tools that our global partners have and that we lack.”

The Single Market Emergency Instrument complements other EU legislative measures for crisis management like the Union Civil Protection Mechanism, as well as EU rules for specific sectors, supply chains or products like health, semiconductors or food security, which already foresee targeted crisis response measures. It establishes a well-balanced crisis management framework to identify different threats to the Single Market and ensure its smooth functioning by:

• Creating a crisis governance architecture for the Single Market: A new mechanism to monitor the Single Market, identify different levels of risk and coordinate an appropriate response comprising several stages – contingency, vigilance and emergency modes. First, the contingency planning framework enables the Commission and Member States to set up a coordination and communication network to increase preparedness. Subsequently, when a threat to the Single Market has been identified, the Commission can activate the vigilance mode. Finally, in case of a crisis with a wide-ranging impact on the Single Market, the Council can activate the emergency mode. An advisory group, comprised of the Commission and Member States, will be established to assess a given situation and recommend the most suitable response measures. It will play an essential role throughout the whole process.

• Proposing new actions to address threats to the Single Market: In vigilance mode, the Member States in cooperation with the Commission would focus on monitoring supply chains of identified, strategically important goods and services as well as on building up strategic reserves in these areas. When the emergency mode has been activated, free movement in the Single Market will be upheld through a blacklist of prohibited restrictions and, more generally, through reinforced and rapid scrutiny of unilateral restrictions. The Commission may also recommend Member States to ensure the availability of crisis-relevant goods by facilitating the expansion or repurposing of production lines or accelerating permitting. Finally, it may also recommend Member States to distribute the strategic reserves built during the vigilance phase in a targeted manner. New rules will also apply to facilitate public procurement of relevant goods and services by the Commission on behalf of the Member States both in vigilance and in emergency modes.

• Allowing last-resort measures in an emergency: Under extraordinary circumstances, and only when the emergency mode has already been activated, the Commission may also make use of tools which will require a separate activation step. In this case, the Commission may issue targeted information requests to economic operators, which can be made binding. It may also ask them to accept priority rated orders for crisis-relevant products, in response to which firms must either comply or explain the grave reasons justifying refusal. Furthermore, the accelerated placing on the market of certain products through quicker testing and accreditation, including through conformity assessment, will ensure their availability during emergencies. Rules permitting such derogations are laid down in separate proposals for a Regulation and a Directive amending a number of product-specific regulatory regimes, which accompany the SMEI Regulation.

Next Steps

The proposals will now be discussed by the European Parliament and Council of the European Union. After adoption by the co-legislators, the Regulations will enter into force on the twentieth day following their publication in the Official Journal of the European Union. 

Background

For almost 30 years, the Single Market has been the EU’s most important asset, offering certainty, scale and a global springboard for our companies, and wide availability of quality products and services for consumers. However, in recent crises, and particularly in the early days of the COVID-19 pandemic, businesses and citizens suffered from entry restrictions, supply disruptions and a lack of predictability of rules which fragmented the Single Market. Intra-EU export restrictions and travel limitations, adopted in response to the pandemic, but in many cases poorly designed and justified for that purpose, disrupted the free circulation of goods, services and persons, causing economic costs, delays and hampering the overall crisis response.

The SMEI package presented today follows calls by the European Council, which in its Council Conclusions of 1-2 October 2020  stated that the EU should draw the lessons from the COVID-19 pandemic and address remaining fragmentation, barriers and weaknesses of the Single Market in facing emergency situations. In response, the Commission announced in its Updated Industrial Strategy Communication of May 2021 that it would present a dedicated instrument to ensure the freedom of movement of goods, services and persons as well as greater transparency and coordination in times of crisis. The European Parliament welcomed the Commission’s plan to present a Single Market Emergency Instrument and called on the Commission to develop it as a legally binding structural tool to ensure the free movement of persons, goods and services in case of future crises. Before presenting the proposal, the Commission undertook extensive consultations, including by publishing a call for evidence and a public consultation as well as a Member States’ survey, in addition to organising a large stakeholder workshop and numerous more targeted stakeholder consultations.

For More Information

Questions & Answers

Factsheet

Video on SMEI

Proposal for a Regulation establishing a Single Market Emergency Instrument and repealing Council Regulation (EC) 2679/98

Proposal for a Regulation for the laying down measures to facilitate the supply and availability of crisis-relevant goods in the context of a Single Market emergency and amending Regulation (EU) 2016/424, Regulation (EU) 2016/425, Regulation (EU) 2016/426, Regulation (EU) 2019/1009

Proposal for a Directive amending Directives 2000/14/EC, 2006/42/EC, 2010/35/EU, 2013/29/EU, 2014/28/EU, 2014/29/EU, 2014/30/EU, 2014/31/EU, 2014/32/EU, 2014/33/EU, 2014/34/EU, 2014/35/EU, 2014/53/EU and 2014/68/EU and introducing emergency procedures for the conformity assessment, adoption of common specifications and market surveillance in the context of a Single Market emergency