The minimum wage should be adequate to ensure a decent standard of living
Right to redress for workers, their representatives and trade union members if rules are violated
EU rules to respect the powers of national authorities and social partners to determine wages
Collective bargaining to be strengthened in countries where it covers fewer than 80% of workers

The agreed legislation aims to ensure that minimum wages in all EU countries guarantee decent living standards for workers.

With a deal struck on Monday night, Parliament and Council negotiators agreed on EU rules to set adequate minimum wages, as provided by national law and/or collective agreements. The new legislation will apply to all EU workers who have an employment contract or employment relationship. The EU countries in which the minimum wage is protected exclusively via collective agreements will not be obliged to introduce it nor to make these agreements universally applicable.
Adequate wages
According to the agreement, member states will have to assess whether their existing statutory minimum wages (i.e. the lowest wage permitted by law) are adequate to ensure a decent standard of living, taking into account their own socio-economic conditions, purchasing power or the long-term national productivity levels and developments.
For the adequacy assessment, EU countries may establish a basket of goods and services at real prices. Member states may also apply indicative reference values commonly used internationally, such as 60% of the gross median wage and 50% of the gross average wage.
Deductions from or variations to the minimum wage will have to be non-discriminatory, proportionate and have a legitimate objective, such as the recovery of overstated amounts paid or deductions ordered by a judicial or administrative authority.
Collective bargaining
EU negotiators agreed that EU countries will have to strengthen sectoral and cross-industry collective bargaining as an essential factor for protecting workers by providing them with a minimum wage. Member states in which less than 80% of the workforce is protected by a collective agreement will have to create an action plan to progressively increase this coverage. To design the best strategy for this purpose, they should involve social partners and inform the Commission of the adopted measures and make the plan public.
Monitoring and right to redress
The agreed text introduces the obligation for EU countries to set up an enforcement system, including reliable monitoring, controls and field inspections, to ensure compliance and address abusive sub-contracting, bogus self-employment, non-recorded overtime or increased work intensity.
National authorities will have to ensure the right to redress for workers whose rights have been infringed. Authorities must also take the necessary measures to protect workers and trade union representatives.
Next steps
The provisional political agreement reached by the EP negotiating team will now have to be approved first by the Employment and Social Affairs Committee, followed by a plenary vote. The Council also has to approve the deal.
Quotes
After the deal was struck, co-rapporteur Dennis Radtke (EPP, DE) said: “With the agreement on minimum wages, we are writing socio-political history in Europe. For the first time, EU legislation will contribute directly to ensuring that workers are getting fairer, better pay checks”.
Co-rapporteur Agnes Jongerius (S&D, NL) added : With this European law, we reduce wage inequalities, and push for higher wages for Europe’s lowest paid workers. They should be able to buy new clothes, join a sports team, or go on a well-deserved holiday. In short, they should have a decent standard of living”.
Dragos PÎSLARU, (Renew, RO), Chair of the Employment and Social Affairs Committee concluded: “The directive opens new opportunities for European citizens to avoid in-work poverty and gain access to social dialogue. It creates transparent and appropriate procedures as well as common enforcement measures at EU level while also balancing national particularities”.
Background
In the EU, 21 out of 27 countries have a statutory minimum wage, while in the other six (Austria, Cyprus, Denmark, Finland, Italy and Sweden) wage levels are determined through collective bargaining. Expressed in euro, monthly minimum wages vary widely across the EU, ranging from €332 in Bulgaria to €2 202 in Luxembourg (2021 data from Eurostat).

Compliments of the European Parliament.
The post Deal reached on new rules for adequate minimum wages in the EU first appeared on European American Chamber of Commerce New York [EACCNY] | Your Partner for Transatlantic Business Resources.

In response to several months of exceptionally high and volatile energy prices, the Commission sets out today a series of additional short-term measures to tackle high energy prices and address possible supply disruptions from Russia. It also presents a number of areas where the electricity market design can be optimsied, making it fit for the transition away from fossil fuels and more resilient to price shocks, while protecting consumers and delivering affordable electricity.
Commissioner for Energy, Kadri Simson, said: “The EU has put in place a well-functioning and interconnected energy market that continues to provide reliable energy supply in today’s challenging situation. But exceptional times require exceptional measures and today we present additional steps that the Member States can take to combat the high prices. As Russia pursues its unprovoked war in Ukraine, we must also plan for gas supply disruptions and their impact with solidarity measures and possible price interventions. In parallel, we are taking forward the work to improve the electricity market to better protect consumers, reduce volatility and continue to support the green transition.”
Short-term intervention measures
The Commission invites Member States to continue using its Energy Prices Toolbox, which contains measures to lower the energy bills paid by European consumers. In addition, a number of short-term measures are put at the disposal of Member States and can be used now and during the next heating season.
In gas markets:

A possibility for Member States to temporarily extend end-consumer price regulation to a broad range of customers, including households and industry.
Temporary ‘circuit breakers’ and emergency liquidity measures to support effective functioning of commodity markets, in full respect of State aid provisions.
Using the EU Energy Platform to aggregate gas demand, ensure competitive gas prices via voluntary joint purchases, and reduce EU reliance on Russian fossil fuels.

Intervention options in electricity markets for Member States:

The possibility to reallocate exceptionally high infra-marginal revenues (so-called windfall profits) to support consumers is extended to cover the next heating season.
In addition, congestion revenues can be used to finance consumer support.
A temporary extension of regulated retail prices to cover small and medium-sized businesses.
For regions with very limited interconnection, the possibility to introduce subsidies for fuel costs in power production to reduce the electricity price, provided they are designed in a way compatible with EU Treaties, in particular with regard to the absence of restrictions to cross border exports, sectoral legislation and State aid rules.

EU measures in case of full disruption of gas supplies
In case of full disruption of Russian gas supplies, further exceptional measures may be needed to manage the situation. The Commission invites Member States to update their contingency plans, taking into account the recommendations contained in the Commission’s EU preparedness review.

The Commission will facilitate setting up a coordinated EU demand reduction plan with pre-emptive voluntary curtailment measures to be ready in case an emergency arises. In a spirit of solidarity, less affected Member States could reduce their gas demand for the benefit of more affected Member States.
To accompany these measures, an administrative price cap on gas might be necessary at EU level in response to a full supply disruption. If introduced, this cap should be limited to the duration of the EU emergency and should not compromise the EU’s ability to attract alternative sources of pipeline gas and LNG supplies, and to reduce demand.

A future-proof electricity market design
The recent ACER report concludes that the fundamentals of the market design bring significant benefits to consumers. It also notes that there are several ways to better protect consumers and deliver affordable electricity, make the market more robust and resilient to future shocks, and align it further with the European Green Deal objectives.
The Commission therefore sets out a number of issues to be studied for an optimal future functioning of the market. These include market-based instruments to protect consumers against price volatility, measures enhancing demand-response and promoting individual self-consumption schemes, appropriate investment signals and a more transparent market surveillance. Building on the analysis presented today, the Commission will launch an impact assessment process on possible adjustments to the electricity market design.
Background
Following the ‘Energy Prices Toolbox’ of October 2021, the Commission presented on 8 March 2022 additional guidance for Member States to shield businesses and households from high prices. It confirmed the possibility to regulate prices for end consumers in exceptional circumstances, and described how Member States can redistribute revenue from high energy sector profits and emissions trading to consumers. On 23 March, the Commission outlined further options to mitigate high energy prices and proposed minimum gas storage obligations and voluntary common gas purchases.
At the meeting of the European Council on 24-25 March 2022, EU leaders asked the Commission to submit proposals that address the problem of excessive electricity prices while preserving the integrity of the Single Market, maintaining incentives for the green transition, preserving the security of supply and avoiding disproportionate budgetary costs. The Commission committed to assess options to optimise the design of the EU’s electricity market and detail a plan to end our dependence on Russian fossil fuels.
Compliments of the European Commission.
The post Energy Markets: EU Commission presents short-term emergency measures and options for long-term improvements first appeared on European American Chamber of Commerce New York [EACCNY] | Your Partner for Transatlantic Business Resources.

The Commission has today proposed an annual EU budget of €185.6 billion for 2023, to be complemented by an estimated €113.9 billion in grants under NextGenerationEU. The EU budget will continue to mobilise significant investments to boost Europe’s strategic autonomy, the ongoing economic recovery, safeguard sustainability and create jobs. The Commission will continue to prioritise green and digital investments while addressing pressing needs arising from recent and current crises.
Commissioner Johannes Hahn, responsible for the EU Budget, said: “We are continuing to put forward extraordinary amounts of funding to support Europe’s recovery and to tackle current and future challenges. The budget remains an important tool the Union has at its disposal to provide clear added value to people’s lives. It helps Europe shape a changing world, in which we are working together for peace, prosperity and our European values”.
The draft budget 2023, boosted by NextGenerationEU, is designed to respond to the most crucial recovery needs of EU Member States and our partners around the world. These financial means will continue to rebuild and modernise the European Union and strengthen Europe’s status as a strong global actor and reliable partner.
Additional proposals to finance the impact of the war in Ukraine both externally and internally will be tabled later in the year, on the basis of a more precise needs assessment, as per the European Council conclusions of 31 May 2022.
The budget reflects the EU’s political priorities, which are crucial to ensure a sustainable recovery and to strengthen Europe’s resilience. To that end, the Commission is proposing to allocate (in commitments):

€103.5 billion in grants from NextGenerationEU under the Recovery and Resilience Facility (RRF) to support economic recovery and growth following the coronavirus pandemic and to address the challenges posed by the war in Ukraine.
€53.6 billion for the Common Agricultural Policy and €1.1 billion for the European Maritime, Fisheries and Aquaculture Fund, for Europe’s farmers and fishers, but also to strengthen the resilience of the agri-food and fisheries sectors and to provide the necessary scope for crisis management in light of expected global food supply shortages.
€46.1 billion for regional development and cohesion to support economic, social and territorial cohesion, as well as infrastructure supporting the green transition and Union priority projects.
€14.3 billion to support our partners and interests in the world, of which €12 billion under the Neighbourhood, Development and International Cooperation Instrument — Global Europe (NDICI — Global Europe), €2.5 for the Instrument for Pre-Accession Assistance (IPA III), and €1.6 billion for Humanitarian Aid (HUMA).
€13.6 billion for research and innovation, of which €12.3 billion for Horizon Europe, the Union’s flagship research programme. It would receive an extra €1.8 billion in grants from NextGenerationEU.
€4.8 billion for European strategic investments, of which €341 million for InvestEU for key priorities (research and innovation, twin green and digital transition, the health sector, and strategic technologies), €2.9 billion for the Connecting Europe Facility to improve cross-border infrastructure, and €1.3 billion for the Digital Europe Programme to shape the Union’s digital future. InvestEU would receive an extra €2.5 billion in grants from NextGenerationEU.
€4.8 billion for people, social cohesion, and values, of which €3.5 billion Erasmus+ to create education and mobility opportunities for people, €325 million to support artists and creators around Europe, and €212 million to promote justice, rights, and values.
€2.3 billion for environment and climate action, of which €728 million for the LIFE programme to support climate change mitigation and adaptation, and €1.5 billion for the Just Transition Fund to make sure that the green transition works for all. The Just Transition Fund would receive an extra €5.4 billion in grants from NextGenerationEU.
€2.2 billion for spending dedicated to space, mainly for the European Space Programme, which will bring together the Union’s action in this strategic field.
€2.1 billion for protecting our borders, of which €1.1 billion for the Integrated Border Management Fund (IBMF), and €839 million (total EU contribution) for the European Border and Coast Guard Agency (Frontex).
€1.6 billion for migration-related spending, of which €1.4 billion to support migrants and asylum-seekers in line with our values and priorities.
€1.2 billion to address defence challenges, of which €626 million to support capability development and research under the European Defence Fund (EDF), as well as €237 million to support Military Mobility.
€927 million to ensure the smooth functioning of the Single Market, including €593 million for the Single Market Programme, and close to €200 million for work on anti-fraud, taxation, and customs.
€732 million for EU4Health to ensure a comprehensive health response to people’s needs, as well as €147 million to the Union Civil Protection Mechanism (rescEU) to be able deploy operational assistance quickly in case of a crisis.
€689 million for security, of which €310 million for the Internal Security Fund (ISF), which will combat terrorism, radicalisation, organised crime, and cybercrime.
€138 million for secure satellite connections under the proposal for a new Union programme, the Union Secure Connectivity Programme.
Budgetary means for the European Chips Act will be made available under Horizon Europe and through redeployment from other programmes.

The draft budget for 2023 is part of the Union’s long-term budget as adopted by the Heads of State and Governments at the end of 2020, including subsequent technical adjustments, seeks to turn its priorities into concrete annual deliverables. A significant part of the funds will therefore be dedicated to combatting climate change, in line with the target to spend 30% of the long-term budget and the NextGenerationEU recovery instrument on this policy priority.
Background
The draft EU budget for 2023 includes expenditure under NextGenerationEU, to be financed from borrowing at the capital markets, and the expenditure covered by the appropriations under the long-term budget ceilings, financed from own resources. For the latter, two amounts for each programme are proposed in the draft budget – commitments and payments. “Commitments” refer to the funding that can be agreed in contracts in a given year; and “payments” to the money actually paid out. The proposed EU budget for 2023 amounts to €185.6 billion in commitments and €166.3 billion in payments. All amounts are in current prices.
The actual NextGenerationEU payments – and funding needs for which the European Commission will seek market financing – may be different, and will be based on precise estimates evolving over time. The Commission will continue to publish six-monthly funding plans to provide information about its planned issuance volumes in the months to come.
With a budget of up to €807 billion in current prices, NextGenerationEU helps the EU recover from the immediate economic and social damage caused by the coronavirus pandemic and enables us to respond to current and future crises such as the war in Ukraine. The temporary instrument helps build a post-COVID-19 EU that is greener, more digital, more resilient and better fit for the current and forthcoming challenges. The contracts/commitments under NextGenerationEU can be concluded until the end of 2023, the payments linked to the borrowing will follow until the end of 2026.
Compliments of the European Commission.
The post EU budget 2023: Empowering Europe to continue shaping a changing world first appeared on European American Chamber of Commerce New York [EACCNY] | Your Partner for Transatlantic Business Resources.

One single charger for frequently used small and medium-sized portable electronic devices
Charging speed harmonised for devices that support fast charging
Buyers can choose whether to purchase new device with or without charging device

By autumn 2024, USB Type-C will become the common charging port for all mobile phones, tablets and cameras in the EU, Parliament and Council negotiators agreed today.
The provisional agreement on the amended Radio Equipment Directive, establishes a single charging solution for certain electronic devices. This law is a part of a broader EU effort to make products in the EU more sustainable, to reduce electronic waste, and make consumers’ lives easier.
Under the new rules, consumers will no longer need a different charging device and cable every time they purchase a new device, and can use one single charger for all of their small and medium-sized portable electronic devices. Mobile phones, tablets, e-readers, earbuds, digital cameras, headphones and headsets, handheld videogame consoles and portable speakers that are rechargeable via a wired cable will have to be equipped with a USB Type-C port, regardless of their manufacturer. Laptops will also have to be adapted to the requirements by 40 months after the entry into force.
The charging speed is also harmonised for devices that support fast charging, allowing users to charge their devices at the same speed with any compatible charger.
Better information and choice for consumers
Consumers will be provided with clear information on the charging characteristics of new devices, making it easier for them to see whether their existing chargers are compatible. Buyers will also be able to choose whether they want to purchase new electronic equipment with or without a charging device.
These new obligations will lead to more re-use of chargers and will help consumers save up to 250 million euro a year on unnecessary charger purchases. Disposed of and unused chargers are estimated to represent about 11,000 tonnes of e-waste annually.
Encouraging technological innovation
As wireless charging technology becomes more prevalent, the European Commission will be empowered to develop so-called delegated acts, on the interoperability of charging solutions.
Quote
Parliament’s rapporteur Alex Agius Saliba (S&D, MT) said: “Today we have made the common charger a reality in Europe! European consumers were frustrated long with multiple chargers piling up with every new device. Now they will be able to use a single charger for all their portable electronics. We are proud that laptops, e-readers, earbuds, keyboards, computer mice, and portable navigation devices are also included in addition to smartphones, tablets, digital cameras, headphones and headsets, handheld videogame consoles and portable speakers. We have also added provisions on wireless charging being the next evolution in the charging technology and improved information and labelling for consumers”.
Press conference
On Tuesday, 7 June, from 12.30 CEST, Parliament’s rapporteur Alex Agius Saliba (S&D, MT) and Commissioner for the Internal Market Thierry Breton will give a joint press conference in the European Parliament’s press conference room in Strasbourg.
More details on how to follow are available in this media advisory.
Watch the recording of the press conference here.
Next steps
After the summer recess, Parliament and Council will have to formally approve the agreement before it is published in the EU Official Journal. It will enter into force 20 days after publication and its provisions will start to apply after 24 months. The new rules would not apply to products placed on the market before the date of application.
Background
In the past decade, Parliament has been continuously calling on the Commission to table a proposal on a common charger solution. The legislative proposal was tabled on 23 September 2021.
Compliments of the European Parliament.
The post Deal on common charger: reducing hassle for consumers and curbing e-waste first appeared on European American Chamber of Commerce New York [EACCNY] | Your Partner for Transatlantic Business Resources.

The world may gain an estimated $78 trillion over coming decades by making this energy transition.
International negotiators can’t agree on how to phase out coal, in part because of opposition to carbon taxes, and now even countries that had been able to abandon the fuel are reversing that progress as the war in Ukraine raises energy prices.
The most common concern about scrapping coal is that replacing it with renewable energy would be too expensive, but we show in new research that the economic benefits would far outweigh the costs.
We analyze this great carbon arbitrage, as we call it, in a recent working paper that calculates the cost of replacing coal with renewables, as well as the social benefits of this important transition. The benefits from ending coal use come from avoiding damage from climate change and harm to people’s health. Our estimate is that by doing so the world would yield a net gain of nearly $78 trillion through the end of this century. That’s around four-fifths of global gross domestic product now, and would be equivalent to about 1.2 percent of annual global economic output during the period.

‘It’s sound economic logic to pay for the replacement of coal with renewables to reap a net social gain measuring in the tens of trillions of dollars.’

To determine both the size of the avoided emissions, as well as any potential losses from their prevention, we use a detailed dataset compiled by Asset Resolution on companies’ historical and projected global coal production based on the aggregation of production at the plant level.
The cost estimate for adopting renewable sources includes capital spending for new energy generation capacity equal to what’s lost with coal, plus compensation to coal companies for lost earnings when they are shut down. The cost estimate does not include compensation for affected workers, but this is likely to be small relative to the overall net gains from the transition. Additional compensation to make the switch to renewables feasible could be offered as long as the social benefits of phasing out coal exceed the more comprehensive set of costs.
Carbon price
We calculate the value of doing so by estimating the reduction in emissions from phasing out coal, and by applying a carbon price to those discharges. This in turn lets us estimate the economic gain from the transition. The difference between the value of the social benefits versus costs of replacement and compensation for missed coal revenues forms our baseline estimate of world’s net gain from finally ending our reliance on the fuel.
While our conservative estimate comes with an unavoidable uncertainty, given the decades-long timeframe, the enormous social benefits from what could be thought of as an inexpensive insurance policy are clear: paying a premium offers coverage for significant potential damages.
So sizeable are the potential gains that world leaders should pursue a global agreement to finance the phase-out of coal as a complement to carbon pricing or equivalent measures that currently don’t fully offset the negative effects of the emissions. We have chosen all our parameters, including the social cost of carbon, in a conservative way. The carbon arbitrage could in fact be bigger still for less conservative estimates.
Our research shows that ending coal use shouldn’t be seen as too costly because it provides economic benefits from reduced carbon emissions, such as avoiding physical damage to infrastructure caused by climate change. Investments in renewable energy also support economic growth and offer additional attendant benefits from innovation.
Significant benefits
The analysis shows that phasing out coal isn’t just urgent because it would help limit the global temperature increase to 1.5 degrees Celsius. Importantly, the economic and health benefits are significant enough that we should push harder for global agreements that unleash the potential power of capital markets.
The bottom line for policy is that if compensation was built into an agreement to scrap coal, and if innovative financing packages could incentivize advanced, emerging and developing economies alike to end the fuel’s use, the net social gains from such an agreement would be enormous.
To better understand just how large the payments would need to be, we broke down the costs for different regions. The present value of total financing that’s conditional on commitments to scrap coal is around $29 trillion globally, in line with what other studies estimate. That works out to between $500 billion and $2 trillion annually, with a front-loaded $3 trillion investment this decade. Of the global financing need of around $29 trillion, we estimate that 46 percent is in Asia, 18 percent in Europe, 13 percent in North America, 13 percent in Australia and New Zealand, 8 percent in Africa, and 2 percent in Latin America and the Caribbean.
It’s a major funding challenge. But despite arguments that no government can afford such investments and that the private sector should steer its funding to renewable energy, most of the backing can indeed come from the private sector, once risks are reduced by sufficient public funds via so called blended finance, which could mean public funding of around 10 percent.
Broadly speaking, it’s in the interest of a government to finance 10 percent of its country’s total costs to replace coal with renewables if this amount is less than its resulting social benefits in terms of lower climate damages. A back-of-the-envelope calculation suggests this holds true for nearly all countries. Considerations of fairness, a country’s fiscal position, or both, may in certain cases call for foreign contributions to finance 10 percent of a country’s costs to phase out coal.
Energy transition
We view global carbon taxation at the social cost of carbon as a first-best solution. Public-private partnerships to finance the replacement of coal with renewables could accelerate the green transition and complement incomplete carbon pricing by helping to achieve the Paris Agreement’s aim of making finance flows consistent with a pathway toward low greenhouse gas emissions and climate-resilient development.
For their part, economists have two different approaches to what the profession calls internalizing negative externalities. That loosely translates as making companies pay more of the costs imposed by some harmful result of their activity, such as pollution. One, associated with Arthur C. Pigou, uses taxation or some other pricing to fully reflect the social cost of an economic activity. The other, linked to Ronald H. Coase, seeks an efficient social outcome through bargaining and contracting. Clearly, both approaches are needed for a global strategy to combat climate change.
Our research concludes that, under the kind of approach Coase pioneered, it’s sound economic logic to pay for the replacement of coal with renewables to reap a net social gain measuring in the tens of trillions of dollars.
Phasing out coal is not only a matter of urgency for the planet. It also makes economic sense because, as we show, the social gains far outweigh the costs of climate financing to end coal.
Compliments of the IMF.
The post IMF | How Replacing Coal With Renewable Energy Could Pay For Itself first appeared on European American Chamber of Commerce New York [EACCNY] | Your Partner for Transatlantic Business Resources.

The amount of plastic waste produced globally is on track to almost triple by 2060, with around half ending up in landfill and less than a fifth recycled, according to a new OECD report.
Global Plastics Outlook: Policy Scenarios to 2060 says that without radical action to curb demand, increase product lifespans and improve waste management and recyclability, plastic pollution will rise in tandem with an almost threefold increase in plastics use driven by rising populations and incomes. The report estimates that almost two-thirds of plastic waste in 2060 will be from short-lived items such as packaging, low-cost products and textiles.
“If we want a world that is free of plastic pollution, in line with the ambitions of the United Nations Environment Assembly, we will need to take much more stringent and globally co-ordinated action,” OECD Secretary-General Mathias Cormann said. “This report proposes concrete policies that can be implemented along the lifecycle of plastics that could significantly curb – and even eliminate – plastic leakage into the environment.”

The report (available as a preliminary version ahead of its full publication later this year) projects global plastics consumption rising from 460 million tonnes (Mt) in 2019 to 1,231 Mt in 2060 in the absence of bold new policies, a faster rise than most raw materials. Growth will be fastest in developing and emerging countries in Africa and Asia, although OECD countries will still produce much more plastic waste per person (238 kg per year on average) in 2060 than non-OECD countries (77 kg).
Globally, plastic leakage to the environment is seen doubling to 44 Mt a year, while the build-up of plastics in lakes, rivers and oceans will more than triple, as plastic waste balloons from 353 Mt in 2019 to 1,014 Mt in 2060. Most pollution comes from larger debris known as macroplastics, but leakage of microplastics (synthetic polymers less than 5 mm in diameter) from items like industrial plastic pellets, textiles and tyre wear is also a serious concern.
The projected rise in plastics consumption and waste will come despite an expected increase in the use of recycled plastic in manufacturing new goods as well as technological advances and sectoral economic shifts that should mean an estimated 16% decrease by 2060 in the amount of plastic required to create USD 1 of economic output.
The share of plastic waste that is successfully recycled is projected to rise to 17% in 2060 from 9% in 2019, while incineration and landfilling will continue to account for around 20% and 50% of plastic waste respectively. The share of plastic that evades waste management systems – ending up instead in uncontrolled dumpsites, burned in open pits or leaking into the soil or aquatic environments – is projected to fall to 15% from 22%.
The new report builds on the OECD’s first Global Plastics Outlook: Economic Drivers, Environmental Impacts and Policy Options, released in February 2022. That first report found that plastic waste has doubled in two decades, with most ending up in landfill, incinerated or leaking into the environment. Since that report release, UN member states have pledged to negotiate a legally binding international agreement by 2024 to end plastic pollution.
Global Plastics Outlook: Policy Scenarios to 2060 looks at the impact of two potential scenarios. The first, a regional action scenario comprising a mix of fiscal and regulatory policies primarily in OECD countries could decrease plastic waste by almost a fifth and more than halve plastic leakage into the environment without a substantial impact on global GDP, which would be lower by 0.3% by 2060. The second, a global action scenario comprising more stringent policies implemented worldwide, could decrease plastic waste by a third and almost completely eliminate plastic leakage to the environment while lowering global GDP by an estimated 0.8%.
The report also looks at how actions to reduce greenhouse emissions could reduce plastic pollution given the interplay between the plastics lifecycle, fossil fuels and climate change.
Policies to reduce the environmental impacts of plastics and encourage a more circular use of them should include:

Taxes on plastics, including on plastic packaging
Incentives to reuse and repair plastic items
Targets for recycled content in new plastic products
Extended producer responsibility (EPR) schemes
Improved waste management infrastructure
Increased litter collection rates

Read more about OECD work on plastics
Contact:

Catherine Bremer, the OECD Media Office | catherine.bremer@oecd.org

Compliments of the OECD.
The post OECD | Global plastic waste set to almost triple by 2060 first appeared on European American Chamber of Commerce New York [EACCNY] | Your Partner for Transatlantic Business Resources.

​​Tourism has been one of the sectors worst affected by the Covid-19 pandemic: hotels, restaurants, airlines and travel agencies had to stop their activity almost completely during a long period and only now touristic activity is slowly recovering back to pre-2020 levels. However, the pandemic has also accelerated the transition to a more sustainable models of tourism. This was the topic of a conference organised by the CoR’s NAT Commission in Santiago de Compostela on 3 June. The host city is known for the Camino de Santiago (The Way of St James), which provides a perfect example of sustainable, low-impact tourism combining cultural heritage and bringing together people from across Europe.
The President of the Government of Galicia, Alfonso Rueda Valenzuela, noted that 100 000 pilgrims have already arrived in Santiago de Compostela this year, which means that the city is on the way to beat the record from 2019. “People want to travel again, discover new places and cultural heritage, but the pandemic has changed models of tourism towards destinations that are nearer and less massified”, he said.
While touristic activity has returned to pre-pandemic levels in many regions of Europe during spring 2022, Manuel Cardenete Flores (ES/Renew Europe), Regional Minister for Education and Sport in Andalusia, warned that the war in Ukraine and the energy crisis are posing new challenges to the sector. He underlined the importance of tourism to the economic growth – for example, in Andalusia it represents more than 13 percent of the GDP – and called for the European Union to consider tourism as one of its key policy areas.
This call was shared by the MEP Cláudia Monteiro de Aguiar (PT/EPP) who recalled that the European Parliament has urged the European Commission to present a new strategy on sustainable tourism in Europe and to establish an EU Agency for Tourism. She insisted that the green and digital transition in the tourism sector should be supported through the National Recovery Plans and eventually by setting up a separate budget line.
At the same time, cities and regions across Europe are responding to the growing demand for more sustainable ways of travel: for example, the Veneto Region in Italy has recently inaugurated several new walking and cycling routes across the territory. The President of Veneto Region Roberto Ciambetti (IT/ECR) also referred to a study showing that 54% of tourists arriving in his region would accept to pay an extra price for a more ecologic-friendly accommodation.
“Sustainability must be the rule, not exception”, concluded the NAT Commission Chair Ulrika Landergren (SV/Renew Europe). ” The EU must develop a strategy that takes into account the tourism’s ecologic and social impact”, she added, regretting that unsustainable practices still exist: golf courses are watered in areas suffering from drought and some cruise ships continue dumping wastewater into oceans.
Compliments of the European Committee of the Regions.
The post After Covid-19 pandemic, the recovery of tourism sector builds on sustainability first appeared on European American Chamber of Commerce New York [EACCNY] | Your Partner for Transatlantic Business Resources.

The European Commission and the US Commerce Department have agreed to strengthen coordination on the enforcement of export controls on Russia, building on the excellent cooperation under the US-EU Trade and Technology Council.
In a meeting in Brussels, Deputy Secretary of Commerce Don Graves, US Ambassador to the European Union Mark Gitenstein and Assistant Secretary for Export Enforcement Matthew Axelrod, discussed export control enforcement with Bjoern Seibert, Head of Cabinet for the President of the European Commission, Ursula von der Leyen, and Sabine Weyand, Director-General for Trade, and Gerassimos Thomas, Director-General for Taxation and Customs Union.
They agreed to exchange regularly on export enforcement implementation, expand information sharing on diversion networks, and support investigations.
Additional talks will take place next week in Brussels on how to take this initiative forward.
Compliments of the European Commission.
The post EU and US agree to strengthen coordination on the enforcement of export controls on Russia first appeared on European American Chamber of Commerce New York [EACCNY] | Your Partner for Transatlantic Business Resources.

Introductory statement by Fabio Panetta, Member of the Executive Board of the ECB, at the meeting of the Euro Accession Countries Working Group of the Committee on Economic and Monetary Affairs of the European Parliament | Brussels, 1 June 2022 |
Thank you for inviting me to discuss our latest ECB Convergence Report.[1]
As foreseen in the EU Treaties[2], we publish our Convergence Report at least once every two years. The report examines the progress made by non-euro area Member States[3] towards satisfying the necessary conditions for adopting the single currency. Specifically, it assesses whether a high degree of sustainable economic convergence has been achieved.[4] Moreover, it examines whether the national legislation is compatible with the EU Treaties (including our Statute[5]), and whether the statutory requirements are fulfilled for the relevant national central bank to become an integral part of the Eurosystem.
Our assessment is independent from the Commission’s assessment, which has just been presented to you by Executive Vice-President Dombrovskis. I will now briefly discuss our conclusions on the state of economic and legal convergence. I will then focus on our assessment of Croatia.
The state of economic and legal convergence in non-euro area countries
Looking at the general picture first, let me highlight four points.
First, since our last Convergence Report in 2020, the seven Member States under review have made limited progress overall towards meeting the convergence criteria, with the notable exception of Croatia. This lack of progress is mainly due to challenging economic conditions. While the countries rebounded strongly from a longer than initially expected COVID-19 shock, the Russian invasion of Ukraine has darkened economic prospects.
Second, apart from Croatia, none of the other countries under review complies with all economic convergence criteria. In five of the seven Member States examined in the report, HICP inflation is well above the reference value. The long-term interest rate is above the reference value in two countries and well above it in one country. The situation has clearly deteriorated compared with 2020, when only one country was above the reference value. Furthermore, most countries have made no progress in reducing fiscal imbalances, which is not surprising given the COVID-19 pandemic and the fiscal measures adopted to mitigate its economic impact. As regards the exchange rate criterion, the Bulgarian lev and Croatian kuna were included in the exchange rate mechanism (ERM II), on 10 July 2020. Over the two-year reference period the Bulgarian lev did not exhibit any deviation from its central rate due to its currency board arrangement, while the Croatian kuna displayed a low degree of volatility and traded close to its central rate.[6]
Third, all countries, with the exception of Croatia, need to adjust their legal framework to comply with the requirements under Union law. They must address issues relating to central bank independence and the prohibition on monetary financing.
Moreover, let me reiterate what I said here in 2020 when I presented our previous ECB Convergence Report.[7]
In the interest of the euro area as a whole and of each euro area accession country, convergence has to be reached on a lasting basis, and not just at a given point in time. This requires ongoing attention, also through our economic governance mechanisms and sound financial sector supervision. In order to achieve a high level of sustainable convergence, our Convergence Report emphasises the need for lasting policy adjustments in many of the countries under review. Specifically, we emphasise that the Next Generation EU (NGEU) package represents a unique opportunity to accelerate the process of euro area convergence, with swift and effective implementation being crucial for its success.
The state of economic and legal convergence in Croatia
Let me now focus on Croatia, which is the only country that fulfils all economic and legal requirements for adopting the euro and has expressed the wish to do so on 1 January 2023.
With regard to price stability, the 12-month average rate of HICP inflation in Croatia was 4.7%, which is below the reference value of 4.9%. In terms of fiscal sustainability, Croatia’s general government budget balance was just below the 3% deficit reference value in 2021, while its debt ratio was above the 60% reference value but on a downward trajectory. Since the inclusion of the Croatian kuna in ERM II, its deviations from the agreed central rate have been significantly smaller than the standard fluctuation band of ERM II. Long-term interest rates stood at 0.8% on average and thus remained below the 2.6% reference value for the interest rate convergence criterion.
From a legal perspective, Croatian law is compatible with the Treaties and the Statute of the European System of Central Banks and of the European Central Bank. What is key is the amendment to the Law on Croatia’s central bank, which prohibits the Croatian Government from seeking to influence the members of its decision-making bodies.
With the entry into force of the close cooperation framework on 1 October 2020, the ECB gained responsibility for directly supervising eight significant institutions and for overseeing 15 less significant institutions in Croatia.[8] The convergence in banking supervision ensures the application of uniform supervisory standards and thus contributes to safeguarding financial stability.
Moreover, the agreement on Croatia’s participation in ERM II was based on several policy commitments which I discussed with you two years ago.[9]
Although the anti-money laundering (AML) commitments have been fulfilled formally, there are still several shortcomings in this respect which must be addressed, as identified in the recent MONEYVAL report.[10] This is also key from a prudential perspective. We therefore urge the Croatian Government to deliver on its commitment to fully implement a new AML action plan by 2023, when the first year of MONEYVAL’s enhanced follow-up procedure ends.
Finally, our assessment stresses that, in view of the subdued growth potential, it is crucial to strengthen Croatia’s institutional capacity to ensure effective and efficient implementation of the structural reforms that can lift its growth path.
Conclusion
Let me conclude.
The convergence assessments by the Commission and the ECB are paving the way for another euro area enlargement. Two decades after the introduction of the single currency, euro area membership remains an attractive prospect.
The euro area is facing challenges on many fronts which are mainly of a global nature, like the Russian invasion of Ukraine and persistent supply chain disruptions. But the size of our Economic and Monetary Union gives us the economic firepower and policy autonomy to respond to these adverse external shocks. And the euro buttresses our supply chains, increasing their resilience. Supply chain integration in Europe is better than in any other continent, and continues to increase.[11]
We appreciate that countries make every effort to prepare themselves for adopting the euro. And they do so under challenging economic conditions. I am convinced that the recent EU initiatives such as the Recovery and Resilience Facility and the REPowerEU Plan will help our economies stay on the path towards reforms and investment.
Croatia’s progress demonstrates its commitment to adopting the euro. Most importantly, it is another step towards economic and monetary integration in Europe. It further underpins our collective economic strength and our sovereignty.
Footnotes:

1. ECB Convergence Report 2022
2. Article 140 of the Treaty on the Functioning of the European Union.
3. Denmark has notified the Council of the European Union (EU Council) of its intention not to participate in stage three of Economic and Monetary Union. Convergence reports have therefore only been prepared for Denmark if the country requests them. In the absence of such a request, the ECB’s 2022 Convergence Report examines the following countries: Bulgaria, the Czech Republic, Croatia, Hungary, Poland, Romania and Sweden.
4. To examine the state of economic convergence in EU Member States seeking to adopt the euro, the ECB makes use of a common framework for analysis. This common framework, which has been applied in a consistent manner throughout all European Monetary Institute (EMI) and ECB Convergence Reports, is based, first, on the Treaty provisions and their application by the ECB with regard to developments in prices, fiscal balances and debt ratios, exchange rates and long-term interest rates, as well as in other factors relevant to economic integration and convergence. Second, it is based on a range of additional backward and forward-looking economic indicators considered to be useful for examining the sustainability of convergence in greater detail.
5. Statute of the European System of Central Banks and of the European Central Bank.
6. The reference period considered in the ECB’s 2022 Convergence Report is from 26 May 2020 to 25 May 2022.
7. Panetta, F. (2020), “Pursuing a successful path towards euro area accession”, introductory remarks at a meeting of the Euro Accession Countries Working Group of the Committee on Economic and Monetary Affairs of the European Parliament, 13 July.
8. For more details on the ECB’s close cooperation with Hrvatska narodna banka, see ECB (2020), “ECB establishes close cooperation with Croatia’s central bank”, press release, 10 July.
9. See Panetta, F. (op. cit.).
10. Council of Europe (2021), Anti-money laundering and counter-terrorist financing measures – Croatia, December.
11. 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.
Compliments of the European Central Bank.

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