Achievments SOTEU / Ukraine / values / others Flashcards
EU help for Ukraine
Overview, regulatory initiatives, war crimes, sanctions, military equipm
Overview
Regulatory initiatives
* In February 2023, a landmark pact was inked between the Commission and Ukraine, associating Ukraine with the single market programme,
* The EU’s autonomous trade measures, providing full tariff liberalisation for EU imports of all Ukraine’s goods, work in tandem with the solidarity lanes to ensure a smooth flow of key agricultural goods from Ukraine to and through the EU. (run until 2024)
* Ukraine associtates with Horiton Europe and Euroatom research and trainign programme
* June 2023, the EU and Ukraine signed an agreement that will enable Ukrainian project promoters to apply for EU funding for projects of common interest in the transport, energy and digital realms, further improving the country’s connectivity with its EU neighbours.
RUssian war crimes and reparations
* EU has agreed to dedicate EUR 7.5 million to assist the International Criminal Court’s investigations into the war crimes perpetrated by Russia
* EU enabled Eurojust to better investiagte and store war crimes
* In Feb 2022, VDL accouned International Centre for the Prosecution of the Crime of Aggression against Ukraine, a special tribunal for war crimes in Ukraine
* The Commission is supporting discussion on the establishment of a compensation mechanism for damage caused by Russia’s aggression against Ukraine
* Options to utilise the EUR 24.4 billion in frozen Russian assets were presented in November 2022, along with revenue from over EUR 200 billion in immobilized Russian Central Bank assets in the EU for Ukraine’s recovery
* The Commission and the High Representative of the Union for Foreign Affairs and Security Policy are working on a proposal that would compensate Ukraine for its losses
Sanctions
* The EU has thus far enacted 11 powerful sanctions packages against Russia. Sabctions have the aim to severely hinder the Kremlin’s ability to finance and conduct the war
* An astounding EUR 24.4 billion in assets owned by Russian individuals have been frozen in the EU, in addition to the immobilisation of more than EUR 200 billion of Russian-state-owned assets.
* EU decided to exclude Russia from SWIFT, the world’s leaing finance messaging system: Approximately 70 % of the assets of the Russian banking system are now under stringent sanctions.
* Freeze and Seize’ Task Force was set up following Russia’s aggression against Ukraine to ensure EU-level coordination in the implementation of EU restrictive measures against Russian and Belarusian individuals and entities
* Furthermore, the EU has decided to add the violation of restrictive measures to the list of EU crimes included in the Treaty on the Functioning of the European Union, marking a significant advancement in sanctions enforcement.
* Impact of sanctions: . Russian GDP declined by more than 2 % in 2022, and the OECD expects a further decline of 2.5 % by the end of 2023. Federal budget now in deficit (-2.3%), following fall of oil and gas prices)
* In total: the EU has sanctioned close to 1 800 individuals and entities.
* Euroepan Council has called EC to present options to use freezed assets for supporting Ukraine’s reconstruction
Military equipment
* The European Peace Facility, with its funding of EUR 5.6 billion, has enabled the delivery of tanks, helicopters, air defence systems, missiles and ammunition
* This contribution, bolstered by bilateral military assistance from the Member States, means that a total of more than EUR 20 billion in military support has been provided to Ukraine.
* The EU Military Assistance Mission in support of Ukraine has already trained more than 20 000 Ukrainian soldiers.
* In March 2023, proposal will allow to provide 1 million rounds of artillery ammunition for Ukraine within 12 months, through coordination, join purchasing of MS, augmentingun production
Stats
* Since the moment the invasion started, the EU and its Member States have shown unprecedented solidarity with Ukraine, mobilising more than EUR 76 billion in total, EUR 31 billion of whichthrough the EU budget
* The EU–Ukraine Solidarity Lanes have evolved as a lifeline for Ukraine’s economy, facilitating the export of a 49 million tonnes of Ukrainian agricultural products. The total trade value realised through these corridors is estimated to be around EUR 99 billion
* According to MFF mid term review, costs for reconstruction of Ukraine will be
Achievments Neighborhood
- EU gave same solidarity measures it gave to Ukraine also to Western Balkan
- In December 2022, we saw a historic EU–Western Balkans Summit, with the meeting being held in the region for the first time.
- In June 2023, President von der Leyen unveiled a new growth plan for the Western Balkans, built on four pillars: bringing the Western Balkans closer to the EU single market, deepening regional economic integration, accelerating fundamental reforms and increasing pre-accession funds
- associations agreements to the Single Market Programme were signed this year with Bosnia-Herzegovina (July 2023), Kosovo (May 2023), Montenegro and North Macedonia (April 2023).
- In June, at the second meeting of the European Political Community, President von der Leyen announced a new EUR 300 million support package to help Moldova face the challenge of a war on its doorstep and to speed up their EU integration.
Achievments defence
- the EU–NATO strategic partnership has reached new heights of cooperation following the signing of the Joint Declaration on EU–NATO Cooperation in January 2023
- Two EU Member States decided recently to join the alliance. Following the conclusion of accession discussions, Finland and Sweden signed the NATO accession protocols on 5 July 2022
- In a referendum on 1 June 2022, Danish voters supported Denmark joining the EU’s common security and defence policy, ending Denmark’s 30-year-long opt-out on EU defence cooperation.
- In May 2023, Denmark became the 26th member of PESCO (Permanent Structured Cooperation), the core of EU defence cooperation.
- Thus far, EDF projects have received more than EUR 3 billion in investment. In 2023, the fund will inject another EUR 1.2 billion into projects in crucial defence domains
- Based on a Commission proposal, the co-legislators reached a political agreement in June 2023 on the European defence industry reinforcement through common procurement act, with a budget of EUR 300 million. This regulation will incentivise EU Member States to jointly procure weapons, thereby ensuring interoperability, economies of scale and a strong European defence industry
- This is in addition to the Act in Support of Ammunition Production (ASAP) which is intended to support the ramping-up of manufacturing capacities for the production of ground-to-ground and artillery ammunition, along with missiles.
Achievments energy (stats)
Saving energy
* 17.7% drop in demand between Augugst 22 and March 23
* 52.8 bcm of gas saved
* 95% of gas storages were full by Nov 22
Diversifying supply
* Share of Russian pipeline gas: down from 50% in 2021 to 8% in 2023
* LNG imports up 80% since 2021 levels
* IN May 2023, first EU tender for joint gas purchase attracted 25 international suppliers to supply a total volume of 13.4 bcm, which is 15% higher than EU aggregate demand
Investing in renewables
* 41GW of solar energy added
* 16GW of wind energy adde
* 39% of electricity generated through renewables
Achievments energy (legislatieve and others
Diversifiyng supplly, REN cpacity, hydrogen, high energy bills
Overview
* The Commission successfully countered Russia’s energy war against the EU economy with REPowerEU, guaranteeing our energy security via diversified supplies from reliable partners, well-filled gas reserves, energy savings, and an increase in and acceleration of renewables deployment
* Globally, we champion European values and interests through Global Gateway investment, prioritising strategic partnerships with trusted democracies.
REPowerEU
* We replaced over 70 bcm of Russian pipeline gas in the first 8 months of the war. In 2023, less than 10% of our total gas imports come from Russia.
* We filled European gas reserves to record levels, reaching over 95 %, and exceeding our target of 80 % by 1 November 2022
* We exited the heating season with 55 % of storage capacity filled, and entered the summer with 76 %.
* We saved energy and reduced our gas consumption by 18 % between August 2022 and March 2023, exceeding the voluntary target of a 15 % reduction.
* This means that total EU monthly payments to Russia for energy have decreased by 91 % compared to the beginning of the war, From 22 billion to 2 billion
* Norway is now our main gas supplier, and the United States have become our main supplier of liquefied natural gas,
* Solidarity was crucial: We have established default solidarity arrangements for the supply of gas between Member States and have introduced a legal framework allowing them to repurpose the windfall profits of energy-producing companies to protect consumers from high energy prices.
* the Commission has also established the EU Energy Platform to organise the first-ever joint purchase of gas for Member States, along with Georgia, Moldova, Ukraine and countries in the Western Balkans
* Building on this success of the first tender, two more tenders will be organised in 2023.
* Four key gas interconnectors came into operation this year: the Baltic Pipe, the Poland–Lithuania interconnector, the interconnector between Bulgaria and Greece and the gas interconnector between Poland and Slovakia.
REN capacity
* In 2022, we doubled the additional deployment of renewables across the EU. A record 41 gigawatts of new solar energy capacity was installed and wind capacity increased by 15 gigawatts, displacing approximately 12 billion cubic metres of Russian gas.
* In a historic first, more electricity was produced from wind and solar in 2022 than from gas.
* Through this, we have not only managed to halt the rise in CO2 emissions but have succeeded in reducing them by 2.5 %, despite the crisis we faced
* Solar Strategy will bring 250 GW by 2025 (2x current level), and 600 GW by 2030
* We have also structurally accelerated the permitting process for renewables
Hydrogen
* The EU is leading the development of a global hydrogen economy
* . The co-legislators are still working on the hydrogen and gas decarbonisation package, establishing a framework for the emerging hydrogen economy, but the EU now has rules that define green hydrogen.
* Furthermore, the Commission, the hydrogen industry, the scientific community and EU regions signed a joint declaration on 1 March 2023 with a commitment to stepping up and accelerating joint action on research into and the development, demonstration and deployment of hydrogen valleys.
High energy bills
* Moreover, the Commission has put new exceptional measures in place under the cohesion policy, within the framework of REPowerEU, to help vulnerable citizens and small and medium-sized enterprises deal with high energy bills by repurposing up to EUR 40 billion in unallocated funds.
Achievments budget
MId-term review, protection of budget
Mid-term review MFF
* the Commission proposed to allocate an additional €10 billion to targeted programmes: €3 billion for InvestEU, €0.5 billion to Horizon Europe, €5 billion to the Innovation Fund and €1.5 for the European Defence Fund
* setting up of a Ukraine facility of €50 billion for 2024-2027,
* €15 billion to help the EU address internal and external dimensions of migration
* The Commission also adjusted and complemented its proposal for a next generation of own resources
* This comes one year ahead of the initially planned date of June 2024
* The package includes a new temporary statistical own resource based on company profits. Following the political agreement on the Fit For 55 package, the Commission also proposed to adjust the own resources proposals based on the Emissions Trading System and Carbon Border Adjustment Mechanism.
Protection
* Following a proposal from the Commission under the conditionality Regulation, the Council adopted on 15 December 2022 measures to protect the EU budget from breaches to the rule of law principles in Hungary, concerning:
* public procurement, the effectiveness of prosecutorial action and the fight against corruption and conflicts of interests
* Approximately €6.3 billion of cohesion funding were notably suspended.
European Green Deal achievmnets (energy, transport, targets, finance)
Overview
* Now, more than 3 years into our journey, and despite two unprecedented global crises, the lion’s share of our work plan has been proposed and the co-legislators have turned into law or are making headway on agreements in most of these areas, with major initiatives already taking shape
* The Commission has also provided expertise to Member States to design and implement reforms helping to accelerate the green transition through the Technical Support Instrument. In the last 3 years, support has been provided to around 150 green-transition reforms in all Member States.
Just transition
* Implementation of the cohesion policy’s territory-based and dedicated decarbonisation instrument, the Just Transition Fund for regions phasing out fossil fuels, has also begun
* Its EUR 19 billion in grants will support investment in fossil-fuel-dependent and carbon-intensive regions across the Member States
* Together with the other two instruments of the Just Transition Mechanism, investment worth more than EUR 55 billion will help these regions refocus and diversify their economies, and help workers and their families gain skills that will give them access to the new jobs that will be created.
ETS and related files
* ‘Fit for 55’ now encompasses a revised EU emissions trading system, which serves as the EU’s primary instrument for achieving climate neutrality before 2050. Revenues from the emissions trading system are reinvested in the energy transition
* To achieve a fair transition, the Social Climate Fund will also provide financial support to vulnerable citizens and businesses. With a budget of up to EUR 86.7 billion (including an EU contribution of EUR 65 billion), the fund will support vulnerable households, small businesses and transport users in EU Member States between 2026 and 2032
* Together with the revised effort-sharing regulation and the regulation on land use, land-use change and forestry, the EU’s framework for emissions reductions is now aligned with the 2030 target in the European Climate Law.
Transport
* The adoption of the revised CO2 standards for cars and vans, the alternative fuels infrastructure regulation and the fuel EU maritime and refuel EU aviation regulations, followed by the co-legislators’ agreements on these proposals, represent key milestones in the decarbonisation of the EU’s transport sector.
New targets
* The agreement on the revision of the renewable energy directive sets an EU-wide renewable-energy target of 42.5 %, with an aspiration to reach 45 %
* Recently, the EU reached a consensus on the energy efficiency directive, setting a goal of achieving savings of 11.7 % by 2030.
* Recognising that buildings account for approximately 40 % of the EU’s energy consumption, negotiations on the energy performance of buildings directive are now ongoing
Finance
* The EU will need additional investment of around EUR 620 billion every year to meet the objectives of the European Green Deal and REPower EU. The bulk of this investment will have to come from private funding.
* That is why, in June 2023, the Commission put forward a new package of measures to build on and strengthen the foundations of the EU sustainable finance framework
* The Commission added new activities to the EU taxonomy and proposed new rules for environmental, social and governance rating providers
* In July 2023, the Commission adopted the European sustainable reporting standards which aim to ensure high environmental, social and governance standards and transparency
European Green Deal achievmnets (industyr & innovation, environment/nature, )
Industry and Innovation
* Green Deal Industrial Plan in Feb 2023. The Plan seeks to create an environment that is more conducive to strengthening the EU’s manufacturing capacity for the net-zero technologies necessary to meet the EU’s ambitious climate objectives.
* In March 2023, the Commission adopted a new temporary crisis and transition framework to foster support measures in sectors that are key in the transition to a net-zero economy. Together with the amendment to the general block exemption regulation, this framework enables Member States to use the flexibility provided for under State-aid rules to support the economy in the context of Russia’s war against Ukraine, speeding up investment and financing for clean-tech production in the EU.
* The Commission has adopted nearly 300 decisions on support for the economy in the current geopolitical crisis, for an estimated total approved aid amount of nearly EUR 730 billion.
* Later in March, the three fundamental proposals for the regulatory environment articulated in the Green Deal Industrial Plan were introduced: the critical raw materials act, the net-zero industry act and the reform of the way the electricity market is designed
* In June 2023, as part of its proposal for a Midterm review of the Multi-annual Financial Framework, the Commission proposed to set up a Strategic Technologies for Europe Platform to boost the EU’s long-term competitiveness on critical technologies, in the fields of digital and deep , clean and bio technologies.
Environment and nature
* To restore nature across the European Union and enable our natural environment to help in the fight against climate change, the negotiations to finalise the Nature Restoration Law are underway after the Council and the European Parliament adopted their respective positions
* THe nature restoration law is in line with the historic agreement reached in December 2022 on the Kunming–Montreal Global Biodiversity Framework.
* These measures are complemented by the 5 July package on the sustainable use of natural resources, including in particular the proposal on soil monitoring and the proposal regarding new genomic techniques, which have huge potential to contribute to sustainable agri-food systems.
* With the introduction of the Zero Pollution Action Plan, the Commission has established an ambitious vision for 2050: to reduce air, water and soil pollution to levels that are no longer harmful to health and the environment. This was succeeded by key proposals such as the Sustainable Use of Pesticides Regulation, the Revision of the Ambient Air Quality Directives, the introduction of stricter emission limits for motor vehicles (Euro 7), the Revision of the Groundwater Directive and the Urban Wastewater Treatment Directive, and the Revision of the Industrial Emissions Directive.
* To reduce the negative impact of EU demand for commodities such as soy, palm oil, coffee, cocoa, timber and rubber, the co-legislators agreed a new EU deforestation law, which entered into force in June 2023
Agriculture
* The EU successfully concluded discussions on the 2023–2027 common agricultural policy (CAP), and by December 2022 the Commission had approved all 28 CAP strategic plans
* Overall, 32 % of total CAP funding is devoted to delivering benefits relating to the climate, natural resources, biodiversity and animal welfare, while greater emphasis is placed on fairness for small family farms, young farmers and farm workers.
European Green Deal achievments (Circular economy, Gren diplomacy
Circular economy
* proposals for a regulation on packaging and waste and an eco-design for sustainable products regulation, ensuring that all products that come to the EU market are sustainable – reusable, repairable and recyclable.
* A remarkable 94 % of people living in the EU assert that environmental protection is of personal importance to them, while 68 % acknowledge that their consumption patterns negatively impact the environment, both within Europe and worldwide
* In March 2023, the Commission proposed unified criteria to counteract greenwashing on the EU market. This will ensure that products marketed as ‘green’ are genuinely eco-friendly, equipping consumers with better-quality information and allowing businesses with truly sustainable products to be easily identified and rewarded
* In MArch 2023, the Commission adopted a new proposal advocating for the repair of goods.
Green diplomacy
* In December 2022, at the UN Biodiversity Conference (COP 15) in Montreal, Canada, the EU joined 195 countries in the historic Kunming–Montreal Global Biodiversity Framework
* This framework contains global goals and targets aiming to protect and restore nature for current and future generations, ensure its sustainable use and spur investment for a green global economy
* President von der Leyen had already announced, as part of the Global Gateway, that the Commission is doubling funding for global biodiversity to reach a total of EUR 7 billion invested in protecting biodiversity around the world.
* In line with this historic agreement, in March 2023 the international community also concluded negotiations on the landmark Treaty of the High Seas to protect the ocean, tackle environmental degradation, fight climate change and prevent biodiversity loss in the oceans
* The Biodiversity Beyond National Jurisdiction treaty will allow large-scale marine protected areas to be established on the high seas.
* The EU and the Member States that are part of the related High Ambition Coalition, launched by President von der Leyen, played a key role in reaching the agreement.
* To better integrate the climate, peace and security nexus into the EU’s external policies (new outlook on climate-security nexus communication), in June 2023 the Commission and the High Representative presented the EU’s plan to become more resilient and secure as the climate crisis intensifies.
* At the Paris Summit for a New Global Financing Pact, in June 2023, President von der Leyen proposed that global carbon pricing be used to generate the funding for climate finance that the developing world so badly needs
* Since 2005, when the EU started to introduce carbon pricing, the revenues from carbon pricing have reached EUR 142 billion, and CO2 emissions have decreased by 35 %.
* In July 2023, the Commission published its inaugural Voluntary review on the implementation of the United Nations 2030 Agenda for Sustainable Development. Since the adoption of the 2030 Agenda in 2015, the EU has made moderate or strong progress across a majority of the sustainable development goals
Digital Decade achievments
AI Act, Digital Decade, Data, DMA and DSA, PAyments, Web.40, eID, divide
AI Act, Digital Decade, Chips
* Trilogue on AI ACT now begun, should be concluded until the end of the year
* With the coordinated plan on AI, the EU aims to gradually increase public and private investment in AI to a total of EUR 20 billion per year over the course of this decade.
* In December 2022, a significant consensus was reached on the European Declaration on Digital Rights and Principles for the Digital Decade
* December 2022 also saw the adoption of the Digital Decade policy programme, an initiative aimed at guaranteeing a digital transformation centred around the EU citizen
* It is through this cooperative approach that multi-country projects – endeavours of a scale no single Member State could undertake alone – will bring about our digital evolution.
* in March 2023, a pivotal agreement was reached between the European Parliament and the Member States on the European chips act, which will unlocl EUR 43 billion of policy-driven investment support
* In parallel, in October 2022 and April 2023, under EU State-aid rules, the Commission approved French and Italian aid to support more than EUR 8 billion worth of investment in first-of-a-kind semiconductor mass-production facilities in the EU.
* New IPCEI on microelectronics, which will unlock EUD 13.7 billion in private investmetn and EUR 8.1 billion of public one
Data
* The European data strategy aims to position the EU at the forefront of a data-driven society. The creation of a single market for data will allow for its free circulation within the EU and across industries, to the advantage of businesses, researchers and public administrations.
* In June 2023, an agreement was reached on the data act, a key piece of legislation aiming to make a larger volume of data accessible and to establish rules on data use and access across all economic sectors within the EU
* The new regulations are projected to contribute an additional EUR 270 billion to the GDP of EU Member States by 2028, by tackling the legal, economic and technical challenges that currently lead to data underutilisation
DSA and DMA
* The Digital Services Act, in force since November 2022, sets forth an extensive new set of obligations for all online platforms to mitigate harm and protect the rights of users in the digital realm.
* On 25 April 2023, the Commission identified 17 very large online platforms and two very large online search engines
* Following their designation, these services are, from the end of August 2023, obliged to comply with the full set of new obligations designed to empower and protect online users, including minors
* The European Centre for Algorithmic Transparency, to enforec the act, hosted by the Commission’s Joint Research Centre, was launched on 17 April 2023.
* The Digital Markets Act, also in force since November 2022, is designed to enhance fairness and contestability in digital markets, setting out clearly defined, objective criteria to identify ‘gatekeepers’.
Payments
* In June 2023, the Commission introduced proposals to modernize the euro for the digital age: The single currency package consists of a proposal aiming at ensuring that euro cash remains a universally accepted and accessible payment method and two proposals laying the groundwork for a potential digital euro to complement cash
* Alongside this, the Commission has put forth two proposals to digitize payments and the broader financial sector,
* The first proposal seeks to revise the payment services directive, strengthening fraud prevention, consumer rights, and open-banking systems.
* The second is a legislative proposal for a framework regulating third-party access to customers’ financial data across various financial services.
* These initiatives follow up on a proposal from October 2022, aiming to make instant payments in euros available to all citizens and businesses within the EU and European Economic Area. The goal is to provide affordable and, secure euro transfers on any day within 10 seconds
Others
* In July 2023, the Commission adopted a new strategy on Web 4.0 and virtual worlds to steer the next technological transition
* As it stands today, only approximately 60 % of the EU population in 14 Member States have the ability to use their national electronic ID across borders. The European digital identity, agreed upon in June 2023, will be available to EU citizens, residents and businesses wishing to identify themselves or to verify certain personal information
* This is accompanied by investment in infrastructure and skills aiming at bridging the digital divide. The cohesion policy will dedicate EUR 36.6 billion to the digital transition during the 2021–2027 period, adding to the EUR 16 billion invested between 2014 and 2020.
Strengthenign single market
30 years IM, SURE, functioning of single market, IPRs, Banking sector
Single Market 30 years and econonomic outlook
* This year we celebrated the 30-year anniversary of the single market – the foundation of the EU’s enduring competitiveness. As the world’s largest market, comprising 440 million citizens and 23 million businesses, and amounting to 15 % of global GDP, it is estimated to have increased the EU’s GDP by an additional 9 % since its creation three decades ago.
* 2023 also saw Croatia joining the euro area. 20 EU Member States and 347 million EU citizens now share the EU’s common currency.
* On 16 March 2023, in conjunction with the anniversary of the single market, the Commission outlined its approach to long-term competitiveness.
* It acknowledges the single market’s potential to boost productivity and recommits the Commission to effectively enforcing existing single-market rules and removing the remaining obstacles to cross-border EU economic activity. This is particularly the case in those industrial sectors with the greatest economic integration potential: retail, construction, tourism, business services and renewable energy.
* Spring economic forecast lifts growth expectations to 1 % for 2023 and 1.7 % for 2024
* Thanks to significantly lower energy prices, the cost of production has sunk while inflation is falling, and is set to average 6.1 % in 2023, before dropping to 3.2 % in 2024
* The unemployment rate in the EU hit a new record low of 6.0 % in March 2022
SURE
* The final report on the implementation and impact of SURE showed that, during that year, the instrument supported more than 2.5 million businesses and helped around 31.5 million employees keep their jobs. By 2022, there was a clear phasing out of national support measures, with continued support under SURE for 40 000 firms and 350 000 people.
* Overall, between 2020 and 2022, SURE was crucial in facilitating the swift economic rebound from the pandemic, with EUR 98.4 billion disbursed in 19 Member States. Almost half of the total expenditure was allocated to short-term work schemes, and almost one third to similar measures for the self-employed.
Functioning of single market
* The foreign subsidies regulation, in force since January 2023, aims to address distortion in the single market caused by foreign subsidies.
* As of 12 October, companies will have to notify the Commission of concentrations and of participation in public procurement procedures involving financial contributions granted by non-EU countries to companies engaging in an economic activity in the EU and meeting the relevant notification thresholds.
* The reform of the EU’s customs union, which we proposed in May 2023, will replace traditional customs declarations with a smart, data-driven approach to import supervision
* This proposal will be the most comprehensive and ambitious reform of the customs union since its establishment in 1968.
* On 8 December 2022, the Commission proposed a series of measures to modernise the EU’s value added tax system and make it work better for businesses and more resilient to fraud by embracing and promoting digitalisation
* The key measures proposed will help Member States collect up to EUR 18 billion more in value added tax revenues annually
* In the same month, the Commission adopted a proposal on new tax transparency rules requiring crypto-asset providers based in the EU to report all transactions of clients living in the Union (completemtns MICA and transfer in funds regulation). THis will fight tax fraud in this space. Political agreement reached in May 2023.
IPRs
* Intellectual-property-intensive industries account for almost half of all GDP and more than 90 % of all EU exports
* the Commission proposed new rules on patents on 27 April 2023, to assist companies, especially small and medium-sized enterprises, in fully utilising their inventions
Banking sector
* On 18 April 2023, the Commission adopted a proposal to adjust and further strengthen the EU’s existing bank crisis management and deposit insurance framework, focusing in particular on medium-sized and smaller banks.
* gives resolution authorities more effective tools
* it seeks to facilitate the use of resolution and deposit guarantee funds, funded by the banking industry, to enable authorities to better shield depositors during bank crises
* In addition, the EU is boosting the resilience of banks operating within its borders and strengthening their supervision and risk management by finalising the implementation of the globally agreed regulatory reforms known as Basel III
* Political agreement reached in June 2023, will add output floor (limit use of internal models of banks), include Fit & proper rules for management and board members, cooling off period for former bank employees, and harmonise minimum requirements applicable to branches of third-country banks and the supervision of their activities in the EU.
Strengthening social market
Wages, social partners, platform workers
* In a context of increased inflation and heightened cost of living in the past year, policies at all levels are key for mitigating the loss in purchasing power, as highlighted in the 2023 European Semester cycle.
* To this end, we continue to implement the European Pillar of Social Rights action plan. Member States have endorsed the EU 2030 social targets and of employing at least 78 % of people aged 20–64, ensuring the participation of at least 60 % of all adults to annual training and reducing the number of people at risk of poverty or social exclusion by at least 15 million
* We have to make sure that all people working in the EU can live a dignified life. The historic agreement on the Directive on adequate minimum wage will be transposed into national law by November 2024.
* The directive will set up a procedure for setting adequate statutory minimum wages and making Member States promote collective bargaining on wage-setting
* In 2023, Council recommendation with concrete measures for the greater involvement of social partners at the national and EU levels,
* the co-legislators have entered into final negotiations on the Commission’s proposed directive on improving the working conditions in platform work.
* The proposal aims to ensure that people working through digital labour platforms are granted the legal employment status that corresponds to their actual work arrangements and can enjoy the labour rights and social benefits they are entitled to.
Skills
* To make a success of the green, digital and demographic transitions, the EU needs to invest heavily in lifelong learning, to adapt people’s skills to the ever changing labour market
* Our objective during this European Year of Skills is for everyone – governments, companies and individuals – to recognise how important training is, and to act..
* As part of the 2021-2027 budget, Member States have allocated around EUR 65 billon of EU funds to invest in skills programmes, mostly through RRF and ESF+
* In addition to earlier Council Recommendations on vocational education and training, individual learnign accounts and micro-credentials, in 2023 the Commission adopted two new proposals for Council recommendations on digital skills and digital education and training.
* Some sectoral initiatives to support skills: the Pact for Skills (to date: 1,5000 organisations) brings together public and private organisations to identify what skills gaps exist in each sector, anticipate which skills will be needed in the future and make commitments to provide training opportunities to upskill and reskill people of working age.
* So far 2 million people have benefited from up- and reskilling activities under the pact and pact members have invested EUR 160 million in skills initiatives.
Youth & demorgraphy
* As part of the European Year of Skills, in July the Commission also launched the first-stage consultation of European social partners on reinforcing the EU Quality Framework for Traineeships.
* According to a recent Eurobarometer survey, a majority of young Europeans (76%) learnt things that are useful professionally during their traineeship, and 68% found a job after completing a traineeship.
* The Youth Employment Support package of July 2020 has already resulted in a reinforced Youth Guarantee, a modernised European framework for vocational education and training, and a renewed impetus for apprenticeships.
* the Commission has continued to incorporate demographic considerations into the development of relevant EU policies.
* To assist EU regions affected by the accelerated decline of their working-age population, we launched the Talent Booster Mechanism in January 2023
NextGenerationEU and boosting European investment
RRF, REPowerEU, Borrowing, economic governance/investments, cohesion/BR
RRF
* Altogether, a total of EUR 153.4 billion has already been disbursed, including EUR 56.6 billion in pre-financing
* The Commission estimates that the investment funded by NextGenerationEU alone could boost the EU’s GDP by approximately 1.5 % in 2024.
* An analysis of Member States’ national recovery and resilience plans reveals that:
* EUR 203 billion of the total allocation has been allocated to measures aimed at reducing greenhouse gas emissions by at least 55 % by 2030;
* EUR 131 billion is dedicated to initiatives that will drive the digital transformation of European economies and societies;
* The reforms and investments proposed by the Member States have exceeded the objective to dedicate at least 37% of the expenditure to measures contributing to climate objectives and at least 20% of the expenditure to digital objectives. For the Facility as a whole, the estimated climate expenditure amounts to about 40% and the digital expenditure to 26%.
* More than one third of all measures in the 27 recovery and resilience plans are reforms
* These reforms not only make Member States more resilient in the long term, but also improve conditions for the successful delivery of the related investment under the facility
REPowerEU
* After RU invasion, we put forward REPowerEU to end our dependence on Russian fossil fuels by accelerating the clean energy transition and joining forces to achieve a more resilient energy system and a true Energy Union.
* PowerEU has increased the financial capabilities of the Recovery and Resilience Facility
* Member States have access to nearly EUR 270 billion, with EUR 225 billion in recovery and resilience loans, EUR 20 billion in additional grants and the potential to receive up to EUR 23 billion in grant transfers from other EU funds. So far, the Commission has received seven revised plans that include a REPowerEU chapter, and more are expected to come by the end of the year.
Borrowing
* Concerning green bonds, the Commission remains the global leader, having issued EUR 7.7 billion worth of bonds so far in 2023 and EUR 44.2 billion overall – building up further towards its target of EUR 250 billion.
Economic governance and faciliating investment
* To adapt the EU’s fiscal rules for the future, the Commission proposed new rules on 26 April 2023 to put in place the most comprehensive reform of the EU’s economic governance rules since the aftermath of the great recession of 2008
* The central objective of these proposals is to strengthen public debt sustainability and promote sustainable and inclusive growth in all Member States through reforms and investment.
* In this context, the Commission put forward several initiatives in 2022 and 2023 and delivered on the commitments spelled out in the 2020 action plan on the capital markets union:
* * making EU clearing services more attractive and resilient, supporting the EU’s open strategic autonomy and preserving financial stability;
* making certain corporate insolvency rules more efficient across the EU with the view, with the view to promote cross-border investment;
* alleviateing, through a new listing act, the administrative burden for companies of all sizes, in particular SMEs so that they can better access public funding by listing on stock exchanges.
* Enhancing retail investors’ trust and confidence to be able to invest safely in their future and empowering them to to make investment decisions that are aligned with their needs and preferences;
* making withholding-tax procedures in the EU more efficient and secure for investors, financial intermediaries and Member States’ tax administrations to boost investment and help fight tax abuse.
Cohesion investments and Better regulation
* In the period 2021-2027, 379 programmes mobilising EUR 378 billion of EU support are expected to result in EUR 545 billion worth of investment. 70 % of this investment will be concentrated in the least developed regions
* The EU’s GDP will increase by at least 0.5 % by the end of this period and an additional 1.3 million jobs will be created thanks to cohesion policy.
* In 2022, we fully implemented the ‘one in, one out’ approach to EU law-making.
* One year in, we proposed initiatives expected to lighten the overall administrative burden by EUR 7.3 billion
* In 2023, we have committed to make a fresh push to rationalise reporting requirements, and put forward first proposals for each of the green, digital and economic areas before the autumn, with the ultimate aim to reduce such burdens by 25%,
Global Gateway and Trade
Overview Global Gateway, Trade, China, UK
Overview of global gateway activities
* The European Union is leading the push for democracy, human rights and multilateralism on the world stage. The Global Gateway is a EUR 300 billion plan for sustainable investment across the world
* The Global Gateway represents half of the total commitment of the G7’s Partnership for Global Infrastructure and Investment. The G7 states are teaming up to be part of the solution to the infrastructure investment gap.
* We are moving forward with 90 projects worldwide this year, across 3 areas
* The first feature is sustainability
* The second feature is mutual benefit.
* The third feature is partnering with investors from the private sector.
* The inaugural milestone achieved under the Global Gateway initiative materialized in the Africa–Europe investment package. Half of initial Global Gateway investment, amounting to approximately EUR 150 billion, is dedicated to projects with African partners
* During her visit to Latin America in June 2023, President von der Leyen announced that the EU would invest EUR 10 billion in the Global Gateway investment agenda for Latin America and the Caribbean
Trade
* In February 2021, the Commission unveiled a comprehensive review of the EU trade policy strategy, reflecting our steadfast commitment to a trade policy that promotes openness, sustainability and assertiveness on the global stage
* the EU and partner democracies have established Trade and Technology Councils to foster productive partnerships and address common challenges
* The EU-US trade and technology Council launched the Transatlantic Initiative on Sustainable Trade and a Clean Energy Incentives Dialogue
* EU–India Trade and Technology Council had first meeting in 2023, on backdrop of EU–India bilateral trade, which reached record levels in 2022 with EUR 120 billion worth of goods traded
* negotiations on free trade agreements were successfully concluded with Australia, Chile and New Zealand, while negotiations continued with Mercosur, Mexico and India.
Trade: special topics
* on 22 June 2022, the Commission introduced a pioneering approach mandating that all EU trade agreements incorporate comprehensive chapters on trade and sustainable development
* These chapters entail a broad spectrum of mutually agreed commitments, including upholding crucial international agreements such as the Paris Agreement and International Labour Organization conventions on workers’ rights.
* On 24 April 2023, the EU and Norway forged a Green Alliance, representing the pinnacle of bilateral engagement under the European Green Deal. This ground-breaking partnership serves as a robust platform to intensify joint efforts on climate action, environmental protection
* in 2023, Anti-Coercin Instrument introduced. If engagement fails, it also gives the EU access to a wide range of possible countermeasures against a coercing country. These include the imposition of tariffs, restrictions on trade in services, and restrictions on access to foreign direct investment or public procurement.
* In June, the Commission and the High Representative presented a new European Economic Security Strategy.The strategy focuses on minimising risks arising from certain economic flows in the context of increased geopolitical tensions.
China
* On 30 March 2023, President von der Leyen delivered a landmark speech on EU–China relations.
* In her speech, the President stressed the need to de-risk and rebalance the EU–China relationship .
* This means continuing to develop bilateral economic relations and cooperate on global challenges, while also addressing distortions emanating from China’s state-driven economic model and subsidisation, reducing the EU’s critical dependencies and tackling specific risks related to its civil–military fusion strategy and its use of coercive practices.
United Kingdom
* In February 2023, President von der Leyen and UK Prime Minister Rishi Sunak announced the Windsor Framework, a comprehensive set of joint solutions aimed at addressing, in a definitive way, the practical challenges in the operation of the Protocol on Ireland/Northern Ireland
* The full, timely and faithful implementation of the Windsor Framework and of the Withdrawal Agreement more generally, as well as of the Trade and Cooperation Agreement, is now the top priority in the bilateral EU–UK relationship
* The Trade and Cooperation Agreement covers a number of areas, such as trade in goods and in services, energy, security and the United Kingdom’s association with certain EU programmes.
Rule of law and democracy
Rule of law
* The rule of law forms the bedrock of our European Union – championing freedom, fairness and equality
* In 2022, we took decisive action on 1 410 instances of infringement procedures, ensuring the enforcement of EU law.
* Our annual rule-of-law report, the cornerstone of the EU rule-of-law cycle established in 2020, serves as the basis for a rich dialogue and the exchange of best practices among Member States
* As we can see from the 2023 report, 65 % of the recommendations from 2022 were addressed by Member States
* In May 2023, the Commission took decisive action and put forward two targeted anti-corruption proposals to fight corruption in the EU. The proposals harmonise EU rules on the definitions of and penalties for corruption offences.
* The Commission, jointly with the High Representative, has also proposed a dedicated sanctions regime to target serious acts of corruption worldwide
* In June 2023, the Commission proposed to create an interinstitutional Ethics Body, which will be in charge of developing common standards covering members of EU institutions, following consultations with the other institutions
* With the establishment of the Ethics Body there will be, for the first time, common standards for the ethical conduct of members and a formal mechanism for the coordination and exchange of views on ethical requirements among institutions
Promoting new forms of democratic engagement
* In 2023, the Commission upheld its pledge to follow up on the outcomes of the Conference on the Future of Europe. The Commission continued to act on the recommendations from the Conference, with 35 of the 43 new initiatives in the 2023 Commission work programme following up, directly or indirectly, on these proposals.
* With a view to embedding citizens’ participationin our policy-making toolbox, the Commission established a new generation of citizens’ panels, each bringing together around 150 randomly selected citizens to make recommendations ahead of certain key Commission proposals. Particular emphasis was placed on the younger generation, with one third of the panellists being between the ages of 16 and 25
* Three panels took place in 2023 – discussing the topics of food waste, virtual worlds and learning mobility
* A milestone was reached on 18 April 2023, when the 100th European citizens’ initiative, titled ‘Connecting all European capitals and people through a high-speed train network’, was registered. THe citizen’s initative has gathered over 17 million signatures for various initiatives since its inception in 2012.
* Further, we are setting up a permanent on- and offline EU Child Participation Platform to enable children across the EU to participate in EU decision-making in a systematic and meaningful way
Union of equality
* EU adopted landmark rules to enhance gender balance on corporate boards, mandating that at least 40 % of non-executive director positions in listed companies be occupied by the under-represented sex by 2026.
* In December 2022, the Commission proposed to harmonise, at the EU level, the rules relating to parenthood to strengthen the rights of families in cross-border situations.This proposal ensures that parenthood established in one Member State is recognised in all other Member States without necessitating any special procedures.
* In May 2023, we made another leap forward by adopting new rules strengthening the application of the principle of equal pay for equal work between men and women (pay transparency directive)
* On 1 June 2023 the EU finally acceded to the Istanbul Convention on preventing and combating violence against women and domestic violence, 7 years after EC proposal
* The Commission’s first LGBTIQ equality strategy, for 2020–2025, outlined measures to integrate LGBTIQ equality into all policy areas and to amplify the voices of LGBTIQ people
* The Commission also presented a proposal in December 2022 to strengthen equality bodies in the fight against discrimination
Minorities
* The 2020–2025 EU anti-racism action plan mainstreams the battle against racism across all EU policies. In February, we appointed a new coordinator to counter anti-Muslim hatred. We encouraged Member States to adopt national action plans against racism by the end of 2022.
* Concurrently, with the EU strategy on combating antisemitism, we urged Member States to devise national strategies in this area.
* In January 2023, we evaluated national strategic frameworks for Roma equality, inclusion and participation
* **Disability: ** Currently, only half of the 42.8 million working-age individuals with disabilities in the EU are employed.
* Our disability employment package, presented in September 2022, supports Member States in promoting social inclusion, fighting poverty and boosting the skills and competences of people with disabilities.
* We have provided for the introduction of the European disability card, which is set to ensure cross-border recognition of disability status, affirming the same access rights for everyone who lives in the EU.
