Following dialogues with the Commission and the network of national consumer protection (CPC) authorities, TikTok has committed to align its practices with the EU rules on advertising and consumer protection, namely, the Unfair commercial practices Directive, the Consumer rights Directive and the Unfair contract terms Directive.  This dialogue first originated from a complaint of the European Consumer Organisation (BEUC). In February 2021, BEUC raised the alarm regarding certain problematic practices of TikTok allegedly breaching EU consumer rules. For instance, BEUC had found that the social media platform was failing to protect children from hidden advertising and inappropriate content. Following the complaint, the Commission, together with the CPC, and led by the Irish and Swedish consumer authorities, launched a dialogue with TikTok. The series of concerns have now been addressed and TikTok committed to change its practices.
Commissioner for Justice, Didier Reynders said: “All social media platforms are required to play by the rules and make sure that consumers can easily identify commercial content, including when promoted by influencers. We welcome TikTok’s commitment for more transparency in the way it operates its business activity. Thanks to our dialogue, consumers will be able to spot all kinds of advertisement that they are exposed to when using this platform. Despite today’s commitment, we will continue to monitor the situation in the future, paying particular attention to the effects on young users.”
Overview of main commitments:

Users can now report advertisements and offers that could potentially push or trick children into purchasing goods or services;
Branded content now abides by a policy protecting users, which prohibits the promotion of inappropriate products and services, such as alcohol, “get rich quick” schemes and cigarettes;
Users are prompted to switch on a toggle when they publish content captioned with specific brand-related keywords such as #ad or #sponsored;
If a user has more than 10,000 followers, their videos are reviewed by TikTok against its Branded Content Policy and Community Guidelines to ensure that the content is appropriate;

Policies clarify how to purchase and use coins, and pop-up windows will provide the estimated price in local currencies. Consumers are allowed to withdraw within 14 days from the purchase, and their purchase history is also available;

Policies also clarify how to get rewards from TikTok and how to send gifts, for which users will be able to easily calculate their price;

Paid advertisement in videos will be identified with a new label, which will be tested for effectiveness by a third party;
Users are able to report undisclosed branded content, and new rules for hashtags and labels will be implemented.

Next steps
The Consumer Protection Cooperation Network (CPC) will actively monitor the implementation of these commitments, in 2022 and beyond. Data Protection Authorities will remain competent to assess compliance of the new policies and practices of the company with EU data protection rules.
CPC authorities will, in particular, monitor and assess compliance where concerns remain, such as whether there is sufficient clarity around children’s understanding of the commercial aspects of TikTok’s practices. For example, for what concerns personalised advertising, in light of the recently published “5 key principles of fair advertising to children”
The CPC will also carefully check the outcome of the testing of labels, as well as their implementation, and the adequacy of the display of the estimated unit price per coin in local currency when sending a gift. In addition, actions at national level may be launched to ensure that EU standards are respected and to guarantee that all platforms abide by the same rules.
Background
The Consumer Protection Cooperation (CPC) is a network of authorities responsible for the enforcement of EU consumer protection laws. To tackle cross-border issues, their actions are coordinated at EU level.
National authorities are responsible for the enforcement of EU consumer protection laws. Thanks to the updated Consumer Protection Cooperation Regulation, they now have stronger powers to detect irregularities and take speedy action against rogue traders. Cooperation applies to consumer rules covering various areas such as unfair commercial practices, e-commerce, geo-blocking, package holidays, online selling, and passenger rights.
Compliments of the European Commission.
The post EU Consumer protection: TikTok commits to align with EU rules to better protect consumers first appeared on European American Chamber of Commerce New York [EACCNY] | Your Partner for Transatlantic Business Resources.

“Check against delivery”
Good morning everybody. It’s great to be here in Riga today.
We are going through an energy crisis that threatens our climate goals and energy security and independence all in one.
The ripple effects of the Russian aggression in Ukraine have kick started a huge change in our geopolitical environment. In recent days and weeks, Russia has again and again demonstrated that it is an unreliable supplier who uses energy as a political weapon – trying to single out targets across the EU. The disruptions in gas flows to a number of countries are clearly designed to undermine the EU’s unity and determination in the face of Kremlin’s invasion of Ukraine.
But the EU has remained united. Six packages of sanctions so far have been agreed on.
And remaining united is also extremely important for our energy security during this time.
That underlines the importance of events like the Three Seas Forum. Each member country faces a different energy challenge in this new context, but working collectively can enhance our energy security. Coordination is more important now than ever.
In this new political context, we cannot continue to feed the Russian war machine with our fossil fuel imports.
Instead, we need a plan to look forward. That Plan is RepowerEU: a blueprint to build a future based on a clean energy system without Russian influence.
A plan that builds on our Green Deal, not change the course of it.
Because it would not make sense to try and replace fossil fuels from Russia simply with fossil fuels from somewhere else. It would jeopardise our decarbonisation goals.
The Green Deal existed long before Russia made the decision to attack Ukraine. So we will stay on the same track but pick up the pace with REPowerEU.
To do that, the central element of our Plan is to boost renewable energy even further.
This means more renewable electricity to replace gas in power generation, heating and cooling, more renewable gases to help industry to shift away from gas.
We are proposing to increase our renewables target from the current 40% to 45% by 2030. To back this up, we proposed:

a Strategy for the solar sector to double today’s level by 2025.
a plan to accelerate the production of green hydrogen.
and an action plan to double the production of biomethane by 2030.

If we want to succeed, we need new tools and new approaches. And to find a way around what is preventing us from speeding up production and deployment. That’s why a key part of this Plan is our proposal on permitting procedures. Right now we are looking at almost a decade for some offshore wind projects to get off the ground. Far too long. And time we don’t have to waste.
Our aim is to simplify and prioritise. With our new proposal, renewable energy projects are considered as being in the overriding public interest. And we are also recommending that repowering projects and solar panel installations have shorter and simpler procedures.
And last, we are proposing that Member States can designate ‘go-to’ areas. These are places most suited for developing renewable installations and where the environmental risks are known to be lower. And the definition will be based on a strategic environmental assessment.
Once this is done upstream, individual projects will not need a separate assessment, meaning permitting procedures will be done much faster. In these areas, it shouldn’t take more than a year or six months for repowering projects.
Beyond renewables, diversification must be part of the approach. There is a clear risk to our short-term energy security.
Renewables and energy efficiency are necessary, but not enough. Right now, we can’t match the shortfall from Russian gas with these alone.
Winter is around the corner, and it will be a challenging moment. We are not just looking at high prices, there is a real risk that we do not have enough energy for our societies. We need to make sure the impact on citizens and industry is as low as possible. So preparation is key.
Energy storage is our first insurance policy. So we have introduced regulation to ensure that storage levels are filled up to 90% by November 1st each year.
The filling of storage is advancing well, despite the high prices. The EU-wide storage level is already above 50% of capacity, around six percentage points higher than last year at the same time.
We also need to be pragmatic and diversify Russian gas from other reliable sources and through smart investment.
We aim to replace 50 BCM of Russian gas with LNG supplies and 10 BCM with additional pipeline supplies.
And things are already moving in the right direction. Our dependence on Russian imports is already decreasing.
LNG imports are at record levels: 12.6 BCM were imported in April in the EU. This represents a 36% year on year increase for LNG.
Meanwhile, the share of Russian gas imports in the EU is already decreasing.
April 2021 it was 45%, compared with April this year at 31%.
If we look at pipeline gas alone, the reduction is even bigger, from 40% last year to 26%.
Our gas infrastructure and cooperation on security of supply allows us to increase LNG and let the gas flow to where it’s needed. The fact that Gazprom has cut off a number of Member States including Poland, Bulgaria, Finland, the Netherlands and Denmark – and the situation is stable, is proof of this.
I also want to talk about the EU Energy Platform – one of the key drivers of our effort to diversify.
The Platform will:

 aggregate EU gas demand,
Allow us to better and more efficiently use gas infrastructure, like LNG terminals
and carry out outreach to supply partners.

We are also working to set up a joint venture mechanism that will help us purchase gas directly and redirect it in a competitive way among interested Member States.
As part of the Platform, we have already established the first regional sub-platform for South Eastern Europe, to help Bulgaria and neighbouring countries. And they should be an example to follow. We want to see other regional platforms come out of the Three Seas Group as soon as possible. There’s no reason that the Baltic Region couldn’t be the next Group, so I’d really encourage the authorities and market actors to make the most of this avenue.
In terms of outreach to international partners, we are quite advanced with the United States, as well as Norway. Last week I travelled to Cairo where we signed an MoU with Egypt and Israel. I will also visit Azerbaijan in July. At the same time, we have intense contacts with Canada, Qatar, Algeria, and others.
Despite all of these efforts, uncertainties remain. That’s why Member States absolutely need to step up preparedness, update the contingency plans in place and conclude any outstanding bilateral solidarity agreements.
I am also giving priority to deliver a coordinated contingency plan for next winter and to provide guidance to Member States on how to organize demand reduction decisions, if it’s needed. So that we know what we will do depending on what happens.
There is no immediate risk to our security of supply, but if needed, we will handle it in the spirit of solidarity and minimising the impact on EU’s citizens and business. The EU is ready to deal with these developments. Already since last year we have been working hard to enhance our preparedness for gas disruptions – including the most serious scenarios.
REPowerEU is a plan for our security and independence in the EU. Individual countries and regions can build on what we have set out. Energy is now being used as a weapon on a daily basis. And as I said earlier, close cooperation is incredibly important to protect against it. Particularly for those countries that are most exposed to Russian threats.
The three Baltic States and Finland have historically been fully dependent on Russian gas.
And infrastructure is going to be key for energy security, for these countries in particular but also the wider EU.
Important developments either have been completed or are in the works.
The Baltic Pipe and GIPL.
A better interconnection between Lithuania and Latvia.
And the ENTSO-G assessment shows us that the FSRU to be installed in either Estonia or Finland latest in 2022 will be a huge help in removing dependence on Russian gas.
Aside from gas, electricity is also an area of security concern because the Baltic States are the last Member States with grids still dependant on third countries.
Synchronisation with the European continental grid is a priority, one that will be completed at the latest by the end of 2025.
And when it’s in place, it will create a more secure energy system as well as increasing renewables uptake in the region.
Ladies and gentlemen,
As I see it, these are the key drivers to reach a safe and resilient energy system.
I hope this gives you a clear direction of travel and a good basis for your discussion in a few moments.
Thank you very much for listening.
Compliments of the European Commission.
The post Speech by Commissioner Simson at the Three Seas Business Forum: ‘Building a Balanced and Resilient Energy Sector in the Three Seas Region’ first appeared on European American Chamber of Commerce New York [EACCNY] | Your Partner for Transatlantic Business Resources.

The European Commission has today adopted a Communication setting out how it can follow up on the outcome of the Conference on the Future of Europe.
After a year of deliberations, the Conference came to an end on 9 May 2022. In the closing ceremony in Strasbourg, the Presidents of the European Parliament, Commission and Council received a final report from the Conference participants containing 49 wide-ranging, ambitious and forward-looking proposals and 326 individual measures.
These proposals, covering nine broad themes, were based on recommendations made by citizens during the European Citizens’ Panels and the National Citizens’ Panels, and who contributed their ideas through the Multilingual Digital Platform.
While the Conference has delivered in both quantity and quality of proposals, its success will ultimately hinge on the change that it can deliver. In this spirit, the European Commission, along with both the European Parliament and Council, all committed in the Joint Declaration of March 2021 to following up on what was proposed – each within the framework of their competences and in accordance with the Treaties. President von der Leyen repeated this commitment at the Conference closing ceremony.
Today’s Communication is the first step in the Commission’s follow-up. It offers an assessment of what is needed to follow up on the Conference’s proposals, gives an overview of the next steps and sets out how best to learn the lessons from the Conference and embed participative democracy into the EU’s policy and law-making. For instance, building on the success of the European Citizens’ Panels in the Conference, the Commission will enable these panels to deliberate and make recommendations ahead of certain key proposals, as part of its wider policy making and in line with Better Regulation principles.
President Ursula von der Leyen said: “European citizens have given us rich and wide-ranging ideas to improve our Union: 49 detailed proposals and more than 300 measures to make everyday life better. To build a better future. We promised to follow up. Today’s Communication is the first step in doing so. I will always stand by those who want to reform our Union for the better.”
Analysis of proposals and next steps
The Commission believes that for the assessment of the proposals to be credible, it is essential to stick to the spirit and the letter of what is proposed – without any re-interpretation or selection. This is what is set out in the annex to this Communication. The 49 proposals are divided up into the same thematic areas chosen by the Conference, with the Commission’s assessment set out under each area.
The annex sets out four categories of responses: existing initiatives that address the proposals (e.g. the European Climate Law); those already proposed by the Commission where the European Parliament and the Council are called upon to adopt (e.g. the New Pact on Migration); planned actions which will deliver on the ideas, building in new reflections from the Conference (e.g. the Media Freedom Act); and new initiatives or areas of work inspired by the proposals, falling within the remit of the Commission (e.g. issues related to mental health).
The first set of new proposals will be announced in President von der Leyen’s State of the Union address in September 2022, as well as in the accompanying Letter of Intent. These proposals will be amongst those to be included in the 2023 Commission work programme and beyond. In following up, the Commission will ensure that new reforms and policies are not mutually exclusive to discussions on the need for Treaty change, focusing on making the most of what is currently possible, while being open to Treaty change where that will be necessary.
To keep the citizens who have participated in the Conference informed, and to keep up the momentum, a Conference feedback event will be organised in autumn 2022. This event would be the moment for communicating and explaining how the three EU institutions are following up and taking stock of progress at that stage of the process.
Members of the College said:
Vice-President Dubravka Šuica: “The success of the Conference on the Future of Europe is a result of the dedication, engagement and rigour of all the citizens involved. They have articulated their vision of the future and have entrusted us with its delivery.”
Vice-President Maroš Šefčovič: “People from right across Europe put huge energy and effort into agreeing these 49 proposals. I witnessed this first-hand, particularly in the area of health. It is now for us in the EU institutions to put that same energy and effort into responding to their calls. By feeding the outcomes of the Conference into the 2023 Commission Work Programme, we can demonstrate clearly to citizens that not only have we listened to them, we have heard them.”
Vice-President Věra Jourová: “The Conference on the Future of Europe created momentum to listen more attentively to the people of Europe. Now we must bring forth tangible results. Today‘s Communication is the first step on the path to delivery and provides for concrete follow-up to the recommendations presented by citizens.”
Background
President von der Leyen called for a Conference on the Future of Europe in her Political Guidelines of July 2019, as part of a vision for a new push for European democracy – and committed to following up on its results.
The Conference on the Future of Europe, which kicked off on Europe Day 2021, ran for one year. It was an unprecedented pan-European exercise in deliberative democracy – the largest and broadest of its kind. It connected people from all ages, countries and backgrounds, many of whom had never engaged with Europe or were not familiar with the European Union’s institutional make-up. They all brought their different stories and perspectives, their different languages and identities to set out their expectations of Europe and to weave together a vision of its future.
The proposals made by the Conference include 326 measures for the EU institutions and Member States to follow up on under nine topics: climate change and the environment; health; a stronger economy, social justice and jobs; EU in the world; values and rights, rule of law, security; digital transformation; European democracy; migration; education, culture, youth and sport.
Compliments of the European Commission.The post EU Commission sets out first analysis of the proposals stemming from the Conference on the Future of Europe first appeared on European American Chamber of Commerce New York [EACCNY] | Your Partner for Transatlantic Business Resources.

Today, the European Commission presented its Opinions on the application for EU membership submitted by Ukraine, Georgia and the Republic of Moldova as invited by the Council. Today’s Opinions are based on the Commission’s assessment in light of the three sets of criteria to join the EU agreed by the European Council: political criteria, economic criteria and the ability of the country to assume the obligations of EU membership (EU acquis). The Opinions also take into account Ukraine, Moldova and Georgia’s efforts in implementing their obligations under the Association Agreements (AA), including the Deep and Comprehensive Free Trade Areas (DCFTA), which cover significant parts of the EU acquis.
The European Commission has found that Ukraine overall is well advanced in reaching the stability of institutions guaranteeing democracy, the rule of law, human rights and respect for and protection of minorities; has continued its strong macro-economic record, demonstrating a noteworthy resilience with macroeconomic and financial stability, while needing to continue ambitious structural economic reforms; and has gradually approximated to substantial elements of the EU acquis in many areas.
On this basis, the Commission recommends that Ukraine be given the perspective to become a member of the European Union. It should be granted candidate status on the understanding that steps are taken in a number of areas.
As regards Moldova, the European Commission concludes that the country has a solid foundation in place to reach the stability of institutions guaranteeing democracy, the rule of law, human rights and respect for and protection of minorities; macroeconomic policies have been reasonably sound and progress has been made in strengthening the financial sector and business environment but key economic reforms remain to be undertaken; the country has established a solid basis to further alignment with the EU acquis.
On this basis, the Commission recommends that Moldova be given the perspective to become a member of the European Union. It should be granted candidate status on the understanding that steps are taken in a number of areas.
The European Commission assesses that Georgia has a foundation in place to reach the stability of institutions guaranteeing democracy, the rule of law, human rights and respect for and protection of minorities, even if recent developments have undermined the country’s progress; it has achieved a good degree of macroeconomic stability and has a sound record of economic policy and a favourable business environment, but further reforms are needed to improve the functioning of its market economy; and overall, Georgia has established a solid basis for further alignment with the EU acquis.
On this basis, the Commission recommends that Georgia be given the perspective to become a member of the European Union. It should be granted candidate status once a number of priorities have been addressed.
Ursula von der Leyen, President of the European Commission, said: “Ukraine, Moldova and Georgia share the strong and legitimate aspiration of joining the European Union. Today, we are sending them a clear signal of support in their aspirations, even as they face challenging circumstances. And we do so standing firm on our European values and standards, setting out the path they need to follow in order to join the EU. The Commission’s opinions mark an inflection point in our relations. Indeed, this is a historic day for the people of Ukraine, Moldova and Georgia. We are confirming that they belong, in due time, in the European Union. The next steps are now in the hands of our Member States.”
Olivér Várhelyi, Commissioner for Neighbourhood and Enlargement, said: “We have worked quickly and efficiently to be able to present our opinions in record time. We expect member states to take forward decisions in the coming days, but our partner countries should already start working to deliver on their side on the key reforms outlined in our recommendation. This is crucial in order for Ukraine, Moldova and Georgia to move ahead on their EU path.”
Next steps
Based on the European Commission’s Opinions, the EU Member States will now have to decide unanimously on the next steps.
The applications for EU membership by Ukraine, Georgia and Moldova in light of the Commission’s Opinions will be discussed at the next European Council on 23 and 24 June. In the meantime, the EU remains committed to continue to further strengthen ties and deepen their partnership to support Ukraine, Moldova and Georgia, in line with our Association Agreements and Deep and Comprehensive Free Trade Areas.
Background
On 28 February 2022, Ukraine presented its application for EU membership.
On 3 March 2022, Georgia and the Republic of Moldova presented their applications for EU membership.
On 7 March, the Council of the European Union invited the Commission to submit its Opinions on these applications. Ukraine received the part of the questionnaire on the political and economic criteria on 8 April 2022 and the part on the EU acquis on 13 April. Ukraine provided its replies on 17 April and on 9 May respectively. Georgia and Moldova received the first part of the questionnaire on the political and economic criteria on 11 April 2022 and the part on the EU acquis on 19 April. Moldova provided its replies on 22 April and 12 May. Georgia provided its replies on 2 and 10 May
Compliments of the European Commission.The post The European Commission recommends to Council confirming Ukraine, Moldova and Georgia’s perspective to become members of the EU and provides its opinion on granting them candidate status first appeared on European American Chamber of Commerce New York [EACCNY] | Your Partner for Transatlantic Business Resources.

Keynote speech by Fabio Panetta, Member of the Executive Board of the ECB, at the European Payments Council’s 20th anniversary conference | Frankfurt am Main, 16 June 2022 |

Let me warmly congratulate you on the 20-year anniversary of the European Payments Council (EPC).[1] Your organisation has been key to the transformation of Europe’s payment system into one of the most efficient in the world, seizing the opportunities offered by the Single Market and the introduction of the euro. Estimates suggest that Europeans pay far less for payment services than Americans do.[2] And Europe has been a pioneer in establishing instant payments settled in risk-free central bank money on a continental scale.
These results were achieved thanks to the combined efforts of the public and private sectors.
Public institutions laid the foundations for these improvements. They brought stakeholders together to steer progress, first in the Single Euro Payments Area Council and now in the Euro Retail Payments Board (ERPB), which I have the privilege of chairing. They also introduced legislation where necessary, for instance to cap interchange fees for card payments and to limit the costs of cross-border transactions. And they broadened market access and competition.[3]
The private sector played a key role, too, by fostering innovation and efficiency. And the EPC helped make that possible. By bringing payment service providers (PSPs) together in creating and managing the Single Euro Payments Area (SEPA), you greatly contributed to the integration of European payments.
The progress that has been made is remarkable. And we can now all make credit transfers and set up direct debits[4] seamlessly across Europe. By ensuring the smooth functioning of European payments, SEPA has facilitated trade across the continent, supporting economic growth[5], and has strengthened the stability of the financial system. This has helped unlock the potential of the Single Market and bolstered confidence in the euro.[6]
We are now facing the challenge of digitalisation.
To stay at the technological frontier and satisfy consumers’ demand for immediacy while preserving our sovereignty, Europe must promote digital innovation and efficiency in a way that corresponds to our societal preferences and objectives. We should roll out instant payments and make them the new normal. And we must build a truly European market with unified solutions for card and mobile payments, which are becoming increasingly popular among consumers.
The Eurosystem is leading multiple initiatives here. Above all, we are closely cooperating with the European Commission and European legislators on our retail payments strategy and the digital euro project, both of which seek to foster innovation, safety and strategic autonomy in European payments.
Today I will look back at the progress made in the last two decades and outline the remaining steps that need to be taken to overcome fragmentation on the customer-facing side of payment services. I will then explain how the digital euro could make it easier to achieve the objectives of our retail payments strategy, in particular the creation of a truly pan-European payment solution, the full deployment of instant payments and support for innovation and digitalisation.[7]
My main message is that, in order to successfully meet the challenges we face, we need the same cooperation between the public and private sectors that has been the hallmark of our success in building the European payments market over the last 20 years. The payment market is developing at a fast pace and we need to jointly feel the urgency to deliver on the needs of Europeans.
The progress made towards a Single Euro Payments Area
European integration reflects a political vision – a continuous effort to bring European countries closer together to secure peace, freedom and prosperity. Completing Economic and Monetary Union and the Single Market is a key part of that vision.[8] In the payments sector, this requires Europeans to be able to pay seamlessly, and PSPs to be able to operate, compete and innovate across the Union.
Early efforts in this area focused on unifying central bank money.
The cash changeover in 2002 marked a turning point in Europe’s integration. The new euro banknotes successfully replaced the legacy banknotes of the Member States and rapidly became the most tangible expression of monetary unification. Today, euro banknotes are the most popular instrument for in-person payments, although their use is declining as consumers are increasingly paying digitally.[9]
In parallel, the Eurosystem also made enormous efforts to rapidly integrate wholesale payment systems, which support large payments between financial intermediaries. The transition from the national real-time gross settlement systems[10] to a European system – with the launch of the TARGET system in successive waves[11] – created an efficient infrastructure for wholesale payments in central bank money accessible by European banks throughout the euro area. In other words, banks already benefit from a wholesale central bank digital currency (wholesale CBDC).
Euro banknotes and our wholesale CBDC (in the form of TARGET services) have ensured that central bank money in the euro area can be used at both retail and wholesale level.
Similar progress was also needed for retail payments based on private instruments. This was the starting point for the creation of SEPA, which aimed to make retail payments across borders as easy as within national borders.
The first pan-European payment scheme – the scheme for credit transfers – was launched in 2008. Since then, we have come a long way. Households, firms and governments can now make fast and efficient credit transfers and direct debit payments to anywhere in the European Union, and also to a number of non-EU countries.[12] Every year, over 43 billion payments are made through SEPA[13], supported by almost 4,000 PSPs that participate in one or more of the four payment schemes operated by the EPC[14]. Within this ecosystem, the number of cross-border payments has increased significantly.[15]
The success of SEPA stands out in two ways.
First, SEPA has become a model of successful partnership between public institutions and private intermediaries. It stands as an example of the progress we can achieve in the payments sector when we work together.
The public sector guided the transformation by making it easier for common systems, rules and standards to be adopted. It helped to overcome differences between domestic payment markets, provide a common legal framework and ensure timely progress.[16]
Equally crucial to SEPA’s success was its ability to rely on a strong coalition of private market participants which united all PSPs around a common vision. Today, the schemes managed by the EPC are used on a daily basis by 530 million citizens and 25 million firms.[17]
Second, SEPA’s success emphasised the benefits of innovation.
The development of the SEPA instant credit transfers (SCT Inst) scheme is preparing the European payment system for the future.[18] And the Eurosystem’s TARGET Instant Payment Settlement (TIPS) scheme[19] enables pan-European reachability[20] and allows payments to be settled immediately, around the clock and on every day of the year. This has enabled banks and other payment intermediaries to satisfy customers’ demands for immediacy in the digital age. And TIPS is also starting to be adopted beyond the euro area.[21]
SEPA has thus significantly contributed to an efficient, integrated and innovative payment system.
Integration, innovation and independence: the tasks ahead
But the progress that has been made so far is not enough. In some cases, the creation of pan-European market infrastructures (the “back end”) has not been accompanied by similar progress with the user-facing systems (the “front end”).
We need to implement SEPA for card, online and mobile payments in order to eliminate the residual fragmentation that is hampering or even preventing European customers from using their national payment solutions in all European markets. Not only would this allow us to reap the benefits of economies of scale, it would also help avoid our retail payments market needing to rely on non-European providers to offer pan-European solutions, which is the situation we currently have for card payments.
I therefore welcome the fact that the EPC is contributing to the further integration that is needed in this field.[22]
This brings me to another challenge we face: innovative digital retail payment solutions are not widely available in all European countries, and even less so on a pan-European basis. In many cases, digital payment solutions have limited coverage, are not based on instant settlement, and are not interoperable across Europe. This discourages people from using them.
And this is a typical problem in payments, where both sides of the market may lack incentives to adopt new solutions.
Take the example of instant payments. Not all PSPs use this payment method, therefore some suppliers may be hesitant to make the significant investments needed for it to be adopted more quickly. At the EU level, 61% of PSPs have joined the SCT Inst scheme[23], and only 12% of all SEPA Credit Transfer transactions are actually carried out as instant payments.[24]
On the end-user side, consumers may be deterred from using instant payments as they are often marketed as a premium service with the associated high prices. As I highlighted last year, it costs service providers 0.2 euro cent (€0.002) per transaction to use TIPS, yet instant payments are sometimes offered to consumers for €1 per transaction or even more.[25]
Both sides of the market – PSPs and end users – may therefore be discouraged from swiftly adopting instant payments, and this in turn prevents network effects.[26] To address this situation, we need to work on completing the rails by completing the adoption of SCT Inst and making the payment solutions available.
If we fail to meet users’ demand for innovative payments, others will fill this gap. And this may in turn raise more fundamental concerns. For example, we are seeing global technology companies – big techs – taking on a greater role in providing front-end solutions to customers. While these companies may help to improve efficiency, relying too much on a handful of non-European providers and on infrastructures operated abroad could ultimately harm competition, making the European payments market less dynamic, less diverse and less innovative. It could also leave strategic sectors of our economy exposed to influence by market players that do not necessarily share Europe’s societal and strategic goals.
Back in 2019, the Eurosystem launched a comprehensive retail payments strategy to involve the private sector in achieving an integrated, innovative and independent European payments market.[27]
Among a number of private initiatives launched to meet the objectives of the retail payments strategy, a group of major euro area banks have established the European Payments Initiative. Their aim is to create a unified payment solution for European consumers and merchants alike.[28]
This reflects an awareness that the fragmented nature of the European market makes it difficult to compete with large international players when it comes to digital payments, and that only by joining forces can intermediaries reach the necessary scale to offer competitive pan-European payment solutions.
But it has also become clear that coordinating such cross-border projects represents a formidable challenge. Agreeing on a shared approach to migrate from established domestic payment solutions to a European standard inevitably presents obstacles, given individual countries’ legacy payment systems and preferences. This makes it difficult to involve all euro area countries from the start, and the entire European Union in the end.
The ability to overcome differences and achieve pan-European scale is exactly what made SEPA so remarkable. SEPA’s success shows that obstacles can be overcome if public authorities and private partners work together towards a common goal.
These considerations raise the question of whether public authorities should step up their role once again, working even more closely with European intermediaries to achieve our strategic goals for retail payments.
Close public-private cooperation around the digital euro
At the same time, the ECB is facing the growing challenge of ensuring central bank money remains available and usable for retail payments in an increasingly digitalised world. And this is the primary reason why the Eurosystem is exploring the possibility of issuing a digital euro to complement cash.
For a digital euro to be successful, everyone should be able to use it for digital payments throughout the euro area. It would provide a pan-European means of exchange, just like cash, in line with people’s expectations.[29] We are currently investigating how a digital euro should be designed to be a convenient and efficient means of payment for end users and merchants while responding to Europe’s societal preferences, for instance on privacy.[30]
We have been clear from the outset that we see financial intermediaries having a crucial role in distributing and promoting the digital euro.[31] By design, the digital euro will not crowd out existing private financial instruments. Rather, it will preserve the coexistence of central bank money and private money, supporting innovation by private intermediaries.[32]
Our digital euro project may therefore provide a suitable opportunity to establish the public-private cooperation that is needed to build the pan-European private retail payment solutions of the future. This would combine the comparative advantages of the Eurosystem in relation to large-scale payment infrastructure with the expertise of private sector partners when it comes to distributing payment products and interacting with end users.
And this could bring two fundamental benefits.
First, it would allow us to achieve the required scale and scope by enabling PSPs from all euro area countries to participate and all key use cases to be included.[33] Intermediaries could build a range of innovative payment and financial services on top of the digital euro.
Second, the Eurosystem – in close cooperation with the European Commission and co-legislators – would bring a strong European dimension that all stakeholders could get behind. Given the great diversity of the stakeholders involved, it is necessary to involve all of them and to carefully balance their needs and interests.
A successful public-private partnership, building on an attractive value proposition for consumers, merchants and PSPs alike, could support the objectives of our retail payments strategy. It would help us integrate the European payments market and further digitalise the European economy. And by building on European infrastructure and governance, it would support Europe’s strategic autonomy in payments.
Conclusion
Let me conclude.
Over the past 20 years, the European payments market has become more integrated, more innovative and more efficient. The successful transition from a fragmented payments ecosystem to a Single Euro Payments Area contributed to the smooth introduction of the single currency. And it was the combined knowledge and efforts of both public authorities and private intermediaries that made this possible.
This cooperation is more important than ever today, as we face renewed challenges stemming from the digitalisation of our economies and our financial systems.
The Eurosystem is working on several fronts to meet these challenges, most notably by exploring the possible introduction of a digital euro and by implementing its retail payments strategy. In the coming months, we will step up our interaction with the private sector to explore the links between these two crucial projects. Combining our strengths and working together towards a common goal remains the best way to build a modern, efficient and inclusive European payment system for the future.
Compliments of the European Central Bank.

The European Payments Council represents payment service providers (PSPs) on European payment issues. It manages Single Euro Payments Area (SEPA) payment schemes and promotes further harmonisation in European payments.

Based on McKinsey data, payments revenues amounted to 1.4% of GDP in the EU in 2019, compared with 2.4% in the United States. See McKinsey & Company (2020), “The 2020 McKinsey Global Payments Report”, October, and the testimony of Darrell Duffie (Graduate School of Business, Stanford University) at the hearing on “Building a Stronger Financial System: Opportunities of a Central Bank Digital Currency” before the Subcommittee on Economic Policy of the United States Senate Committee on Banking, Housing and Urban Affairs, 9 June 2021.

For instance, the Payment Services Directive (PSD2) aimed to increase pan-European competition and participation in the payments industry (also from non-banks).

Direct debit schemes allow customers to give companies or organisations authorisation to take money directly from their payment accounts to pay their bills.

Humphrey, D., Willesson, M., Bergendahl, G. and Lindblom, T. (2006), “Benefits from a changing payment technology in European banking”, Journal of Banking & Finance, Vol. 30, No 6, pp. 1631-1652; Levine, R. (2005), “Finance and Growth: Theory and Evidence”, Handbook of Economic Growth, Vol. 1, pp. 865-934.

According to the European Commission’s Standard Eurobarometer 96, based on fieldwork undertaken between 18 January and 14 February 2022, 77% of euro area respondents were in favour of the euro, while only 16% were not.

ECB (2021), “The Eurosystem’s retail payments strategy”.

Panetta, F. (2022), “Europe’s shared destiny, economics and the law”, Lectio Magistralis on the occasion of the conferral of an honorary degree in Law by the University of Cassino and Southern Lazio, 6 April.

Consumers still predominantly use cash for point of sale and person-to-person payments, although its usage has been gradually declining in recent years. See ECB (2020), “Study on the payment attitudes of consumers in the euro area (SPACE)”.

A real-time gross settlement system involves processing and settlement taking place on a transaction-by-transaction basis in real time.

The launch of the TARGET system in 1999, which was technically a set of connected national systems, was followed by the migration to TARGET2, designed as a single shared platform, in 2007.

SEPA was introduced for credit transfers in 2008, followed by direct debits in 2009. It was fully implemented by 2014 in the euro area and by 2016 in non-euro area SEPA countries.

Credit transfers and direct debits each account for half of these transactions. See ECB (2019), “SEPA Migration – Impact Assessment”, and European Payments Council (2022), “The European Payments Council’s 20th anniversary: the transformation of the European payments landscape”, 29 March.

The four payment schemes managed by the EPC are the SEPA Credit Transfer scheme, the SEPA Instant Credit Transfer scheme, the SEPA Direct Debit Core scheme and the SEPA Direct Debit Business-to-Business scheme.

ECB (2019), op. cit.

To ensure that migration to the SEPA schemes was taking place in a timely manner, the SEPA migration end date regulation set a migration deadline for the euro area of 1 February 2014 (later postponed to August 2014) and for non-euro area countries of 31 October 2016. As of these dates, the existing national euro credit transfer and direct debit schemes had to be replaced by the SEPA credit transfer and SEPA direct debit schemes. See Russo, D. (ed.) (2021), “Payments and market infrastructure two decades after the start of the European Central Bank”, ECB, July.

Russo, D. (ed.) (2021), ibid.

Other payment-related schemes include the SEPA Proxy Lookup scheme, which aims to facilitate interoperability between person-to-person payment solutions by enabling a proxy (i.e. mobile phone number or email address) to be converted into a payment account identifier, and the SEPA Request-to-Pay scheme, which is a messaging scheme that facilitates the initiation of credit transfer payments.

TIPS was launched by the Eurosystem in November 2018 and enables individuals and firms to transfer money to each other in seconds, irrespective of the opening hours of their local banks.

Any payment service provider in TARGET2 that adheres to the SCT Inst scheme will become reachable in TIPS, either as a participant or as a reachable party. Furthermore, automated clearing house instant payment settlement will move from TARGET2 to TIPS.

Sweden’s central bank is migrating to TIPS, paving the way for the instant settlement of payments in Swedish kronor in TIPS. And the central banks of Norway and Denmark have also expressed an interest in joining TIPS with their respective national currencies.

Following the invitation from the ERPB, the EPC is notably working in a multi-stakeholder context and involving relevant standardisation bodies in developing a QR code standard for instant payments at the point of interaction.

At national level, a majority of providers has joined the SCT Inst scheme in just nine countries, whereas 14 countries are needed to meet the legal requirements for the usage of payment schemes as stated in the SEPA Regulation.

Payments intended to be an instant transaction are often still executed as a classic credit transfer because the payee’s bank is not a member of the SCT Inst scheme.

Panetta, F. (2021), “At the edge of tomorrow: preparing the future of European retail payments”, introductory remarks at the 14th Payment Forum of Suomen Pankki − Finlands Bank, 19 May.

Digital payments adoption is driven by network effects. This means that the more people hold and use a digital payments solution, the more attractive and valuable it becomes to other users. This, in turn, increases the potential number of people who may wish to adopt it as a regular means of payment. See Katz, M.L. and Shapiro, C. (1994), “Systems Competition and Network Effects”, Journal of Economic Perspectives, Vol. 8, No 2, pp. 93-115; and Claessens, S., Dobos, G., Klingebiel, D. and Laeven, L. (2003), “The growing importance of networks in finance and its effects on competition”, in Nagurney, A. (ed.), Innovations in financial and economic networks, Elgar, pp. 110-135.

The Eurosystem has identified five key objectives for its pan-European retail payments strategy: full pan-European reach and unified customer experience; convenience and cost efficiency; safety and security; European identity and governance; and, in the long run, global acceptance.

This initiative was initially aiming to offer a solution involving a payment card and a digital wallet and covering in-store, online and person-to-person payments as well as cash withdrawals. It has since decided to reduce this scope.

Kantar Public (2022), Study on New Digital Payment Methods, March.

Panetta, F. (2022), “A digital euro that serves the needs of the public: striking the right balance”, introductory statement at the Committee on Economic and Monetary Affairs of the European Parliament, 30 March.

ECB (2020), Report on a digital euro, October. See also Letter from the ECB President to Mr Antonio Maria Rinaldi, Mr Marco Zanni, Ms Francesca Donato and Mr Valentino Grant, MEPs, on a digital euro, 22 December 2020; and Panetta, F. (2021), “Evolution or revolution? The impact of a digital euro on the financial system”, speech at a Bruegel online seminar, 10 February.

Panetta, F. (2021), “Central bank digital currencies: a monetary anchor for digital innovation”, speech at the Elcano Royal Institute, 5 November.

Panetta, F. (2022), “A digital euro that serves the needs of the public: striking the right balance”, op. cit.

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After more than a year of Pandemic-related travel restrictions and US embassy closures, international travel has resumed. However, members across the EACC network share that business travel into the United States remains fraught. In certain cases, ESTA applications are being denied and visa applicants must sometimes wait for more than a year for an appointment at a US Consulate.
Please take a moment to answer the below questions about your and/or your company’s experience in attempting to gain entry into the United States for business purposes.
This survey closes on Monday June 20th.
Your responses to this survey are anonymous. No personally identifiable information will be captured unless you voluntarily offer personal or contact information in any of the comment fields.
TAKE THE SURVEY HERE
Thank you for your participation!
The post Survey on Business Travel to the U.S. – Share your Experience with us! first appeared on European American Chamber of Commerce New York [EACCNY] | Your Partner for Transatlantic Business Resources.

The European Securities and Markets Authority (ESMA), the EU’s securities markets regulator, has published its Annual Report reviewing its achievements in 2021 in fulfilling its mission of enhancing investor protection and promoting stable and orderly financial markets in the European Union (EU), and focusing on its role in the supervision of EU-wide entities and its contribution on sustainable and digital finance.
ESMA’s key achievements in 2021 included the recognition and tiering of third-country central counterparties (CCPs), the coordination of supervisory activity across the EU through its Union strategic supervisory priorities, and the preparation for the supervision of data reporting service providers (DRSPs), critical benchmarks and securitisation repositories. The Annual Report also highlights the most significant elements of ESMA’s work in 2021, particularly the development of the regulatory framework for sustainable finance and the risks and opportunities arising from the digitalisation of markets especially for retail investors.
Verena Ross, Chair, said:

“Last year was a transitional one for ESMA, marking not only its 10th anniversary and the beginning of its second decade as the EU’s securities markets regulator, but also a renewal of the organisation with a new senior management team. I take this opportunity to thank both Steven Maijoor for his work as ESMA’s first Chair and Anneli Tuominen, who acted as Interim Chair.
“Our major areas of focus in 2021 included protecting investors where their growing engagement in sustainable and digital finance risks them being subject to greenwashing and scams, ensuring effective and converged EU supervision, and to supporting the renewed focus on developing a true capital markets union.
“I would like to thank all our stakeholders for their continued support and collaboration in helping ESMA achieve its objectives.”

Natasha Cazenave, Executive Director, said:

“Last year marked ESMA’s first decade as a European Authority, providing an opportunity to reflect on the progress made since 2011 and lay the groundwork for the next decade.
“ESMA, in 2021, implemented new mandates for the supervision of securitisation repositories, critical benchmark administrators and data reporting service providers, while maintaining a strong focus on existing mandates for CRAs, trade repositories and CCPs. It also contributed to CMU initiatives and began work on key projects including, amongst others, the European Single Access Point and the consolidated tape.
“I want to thank our staff for their remarkable dedication and high-quality work and without whom none of these achievements would be possible.”

The organisation’s key achievements in 2021 related to its work on its cross-sectoral priorities:
Supporting the development of sound EU capital markets

New supervisory responsibilities for securitisation repositories, data reporting service providers and critical benchmark administrators;
Advisory reports on the MiFID/MiFIR, ELTIF, Short-Selling Regulation and Money Market Funds Regulation Reviews;
Peer Reviews on CCP liquidity stress testing and NCAs supervision of cross-border activities of investment firms;
Enforcement action against CRAs and Trade Repositories with fines of €4.3 million;
Comprehensive assessment of Tier 2 CCPs and recognition and monitoring of Tier 1 third-country CCPs;
Public statements on social media investment recommendations aimed at safeguarding retail investors;

Sustainable finance

ESMA’s Sustainable Finance Roadmap 2022-24;
Taxonomy regulation and European Union Platform on Sustainable Finance; and
Preliminary report on the European Union carbon market;

Innovation and digitalisation

Technical advice on the digital finance package; and
Preparation for the distributed ledger technology pilot regime.

Compliments of the European Securities & Markets Authority.
The post ESMA reviews its 2021 contribution to the EU’s green and digital capital markets first appeared on European American Chamber of Commerce New York [EACCNY] | Your Partner for Transatlantic Business Resources.

Following the statement by President Ursula von der Leyen and U.S. President Joe Biden marking the second Global COVID-19 Summit, the European Commission and the U.S. Department of Health and Human Services have signed an arrangement to strengthen cooperation on preparedness and response to public health threats. This will enable the Commission and the U.S. to work together on a broad range of topics to jointly tackle health emergencies, contributing to establishing a strong global health architecture.
Stella Kyriakides, European Commissioner for Health and Food Safety, said: “Today’s first transatlantic arrangement on cooperation in the area of health is an important step in our already close working relationship with the US to counter COVID-19. We share broad mutual interests in the control and prevention of infectious diseases globally. Today we put this cooperation on new footing, to jointly identify health threats, work together on procuring medical countermeasures and prepare for health threats together. As the pandemic has shown us, joining forces will enable us to better deal with future health crises and better protect citizens across Europe and globally.”
Xavier Becerra, Secretary of the U.S. Department of Health and Human Services, said: “Strengthening our collaboration with the European Commission through this formal arrangement signifies the importance the U.S. places on working together toward our shared pandemic preparedness and response goals. In addition, this arrangement gives us an opportunity to jointly assist other countries, including those outside of the European Union, with building up their capacity to prevent, detect, and respond to public health threats.”
The transatlantic arrangement, signed on 19 May in Berlin, will be coordinated by the European Commission Health Emergency and Preparedness Response Authority (HERA) and the Directorate-General for Health and Food Safety on the EU side and the Department of Health and Human Services on the U.S. side. As part of the arrangement, the European Commission and the U.S. will work together on epidemic and supply chain information, research and innovation, and production of medical countermeasures, including vaccines and therapeutics. By facilitating information, knowledge, and data sharing, the arrangement will reduce duplication and ensure strong synergies in our preparedness and response efforts. In particular, the European Commission and the U.S. will strengthen cooperation on:

Reviewing joint threat assessments with the goal of identifying at least one most relevant public health threat per year on which to collaborate on.
Sharing secured data for global surveillance for the early detection of emerging health threats.
Supporting procurement activities, including the assessment of vaccine platforms and exchange of best practices on vaccine arrangements.
Coordinating support for the research and development of innovative medical countermeasures.
Supporting third countries on preparedness and response to public health threats.
Tackling mis- and disinformation on health threats by exchanging good practices and initiating joint actions.

Background
The present administrative arrangement is a deliverable of the U.S.-EU Agenda for Beating the Global Pandemic, Vaccinating the World, Saving Lives Now, and Building Back Better Global Health Security.  It is part of the joint actions announced in the 12 May statement reaffirming the Joint Agenda by President von der Leyen and President Biden on the occasion of the second global COVID-19 summit. It also complements the United States–European Commission Joint Statement on the launch of the joint COVID-19 Manufacturing and Supply Chain Taskforce.
Compliments of the European Commission.
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40% of non-executive director posts should go to the under-represented sex
Dissuasive penalties for non-compliance
Small and medium-sized enterprises with up to 249 employees will be excluded

After being blocked in the Council for a decade, EP and EU countries’ negotiators finally agreed on a bill to increase the presence of women on corporate boards.

The provisional agreement reached on Tuesday night on the draft legislation aims to ensure gender parity on boards of publicly listed companies in the EU.
At least 40% of non-executive directors should be women
The so-called “Women on Boards” Directive aims to introduce transparent recruitment procedures in companies, so that at least 40% of non-executive director posts or 33% of all director posts are occupied by the under-represented sex. Thanks to Parliament, companies must comply with this target by 30 June 2026, compared to the Council’s proposal of 31 December 2027. In cases where candidates are equally qualified for a post, priority should go to the candidate of the under-represented sex.
MEPs insisted that merit must remain the key criterion in selection procedures, which should be transparent, as part of the agreement. Listed companies will be required to provide information to the competent authorities once a year about the gender representation on their boards and, if the objectives have not been met, how they plan to attain them. This information would be published on the company’s website in an easily accessible manner.
Small and medium-sized enterprises with fewer than 250 employees are excluded from the scope of the directive.
Penalties
The proposal includes effective, dissuasive and proportionate penalties for companies that fail to comply with open and transparent appointment procedures. Parliament succeeded in including examples of specific penalty measures, such as fines and companies having their selection of board directors annulled by a judicial body if they breach the national provisions adopted pursuant to the Directive.
Quotes by the rapporteurs
Evelyn Regner (S&D, AT), co-rapporteur, said: “Parliament has been asking for a Directive for more women on boards for over a decade. The Council was finally ready to come to the table 10 years after the Commission made its proposal. It was high time to have binding measures. More women on boards make companies more resilient, more innovative and will help to change top-down structures in the workplace. One of the main achievements is transparency. Selection processes have to be based on clear, predetermined criteria and with this agreement, only the best candidates will be selected, thereby improving the overall quality of boards.”
Lara Wolters (S&D, NL), co-rapporteur, added: “All data show that gender equality at the top of companies is not achieved by sheer luck. We also know that more diversity in boardrooms contributes to better decision-making and results. This quota can be a push in the right direction for more equality and diversity in companies.”
Press conference
The lead EP negotiators Evelyn Regner (S&D, AT) and Lara Wolters (S&D, NL) will answer journalists’ questions on the deal on Wednesday 8 May at 9.00 CEST in the Daphne Caruana Galizia room (WEISS N -1/201) in the European Parliament in Strasbourg. More details on how to follow the press conference are available here.
Next steps
Once Parliament and Council have formally approved the agreement, the Directive will enter into force 20 days after it has been published in the EU’s Official Journal. Member states would need to implement the directive two years after it has been adopted. Parliament succeeded in including an assessment on the scope of the directive at a later stage on whether non-listed companies should be included in the scope of directive.
Background
The European Commission first presented its proposal in 2012 and the European Parliament adopted its negotiation position back in 2013. The file was blocked in the Council for almost a decade, until Employment and Social Affairs ministers finally agreed on a position last March.
Today, only 30.6% of board members in the EU’s largest publicly listed companies are women, with significant differences among member states (from 45.3% in France to 8.5% in Cyprus).

Compliments of the European Parliament.
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