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Results of the ECB Survey of Professional Forecasters in the fourth quarter of 2020

HICP inflation expectations for 2020 and 2021 revised down slightly, while longer-term inflation expectations broadly unchanged
Expected profile of real GDP revised up slightly, with slightly milder downturn in 2020 and rebound in 2021
Unemployment rate expectations revised down across all horizons

Respondents to the European Central Bank (ECB) Survey of Professional Forecasters (SPF) for the fourth quarter of 2020 reported point forecasts for annual HICP inflation averaging 0.3%, 0.9% and 1.3% for 2020, 2021 and 2022 respectively. These results represent downward revisions of 0.1 percentage points for both 2020 and 2021. Average longer-term inflation expectations (which, like all other longer-term expectations in this round of the SPF, refer to 2025) edged up to 1.7% from 1.6% in the previous round.
The expectations of SPF respondents for euro area real GDP growth averaged -7.8%, 5.3% and 2.6% for 2020, 2021 and 2022 respectively. These figures represent revisions from the previous round amounting to +0.5 percentage points for 2020, -0.4 percentage points for 2021 and +0.2 percentage points for 2022. Average longer-term expectations for real GDP growth were unchanged at 1.4%.
Average unemployment rate expectations stood at 8.3%, 9.1% and 8.4% for 2020, 2021 and 2022 respectively. These represent downward revisions of 0.8, 0.2 and 0.1 percentage points. Expectations for the unemployment rate in the longer term were revised down 0.1 percentage points to 7.6%.

Table: Results of the ECB Survey of Professional Forecasters for the fourth quarter of 2020

(annual percentage changes, unless otherwise indicated)

 
 
 
 
 

Survey horizon
2020
2021
2022
Longer term (1)

HICP inflation
 
 
 
 

Q4 2020 SPF
0.3
0.9
1.3
1.7

Previous SPF (Q3 2020)
0.4
1.0
1.3
1.6

HICP inflation excluding energy, food, alcohol and tobacco
 
 
 

Q4 2020 SPF
0.7
0.8
1.1
1.5

Previous SPF (Q3 2020)
0.8
0.9
1.1
1.5

Real GDP growth
 
 
 

Q4 2020 SPF
-7.8
5.3
2.6
1.4

Previous SPF (Q3 2020)
-8.3
5.7
2.4
1.4

Unemployment rate (2)
 
 
 

Q4 2020 SPF
8.3
9.1
8.4
7.6

Previous SPF (Q3 2020)
9.1
9.3
8.5
7.7

 

1) Longer-term expectations refer to 2025.

2) As a percentage of the labour force.
 
 
 
 

Contact:

Stefan Ruhkamp | stefan.ruhkamp@ecb.europa.eu

Compliments of the European Central Bank.
The post Results of the ECB Survey of Professional Forecasters in the fourth quarter of 2020 first appeared on European American Chamber of Commerce New York [EACCNY] | Your Partner for Transatlantic Business Resources.

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IMF Managing Director’s Opening Remarks at United Kingdom Article IV Press Conference

Kristalina Georgieva, October 29, 2020 |
Chancellor, thank you very much for your kind introduction. Ladies and gentlemen, good morning. Over the last week we have been having virtual meetings for our Article IV consultation for the British economy.
We meet at a time when the UK and the world are in the grip of the worst pandemic in a century. It has already taken an enormous human toll and caused unprecedented economic disruption, including in the UK, and unfortunately we are seeing a second wave hitting Europe.
Let me start by recognizing the enormous efforts the UK authorities have made to contain the impact of the pandemic. The unprecedented package of fiscal, monetary, and financial sector support measures has helped to sustain incomes, keep unemployment down, and curb corporate insolvencies. It is one of the best examples of coordinated action that we have seen globally. We welcome the continuing efforts the government has made to refine its support measures, including adaptations to the Jobs Support Scheme announced last week.
My main message today is that continued policy support is essential to address the pandemic and to sustain and invigorate a recovery. We welcome that the authorities have committed to deliver it as long as necessary to manage expectations and boost confidence. The policy space exists to do this.
Let me highlight three key points:

First, it would be important to keep the special job and company support programs in place until the direct impact of the pandemic on the economy subsides. This extended safety net will reduce scarring and temper the unequal effects of the crisis, and it can naturally sunset as the pandemic fades. Therefore, we support an additional fiscal push, necessary to enhance the safety net, but also to boost public investment. It offers an opportunity to “build forward” and address the UK’s climate targets, reduce regional inequality, and help those who do end up losing their livelihood.
Second, while we do not think that policy rotation toward fiscal adjustment is imminent, it cannot be ignored either. It will be essential for the government to stabilize then reduce public debt ratios and begin to rebuild buffers. Still, experience suggests that rotation to fiscal consolidation should only happen once the private sector has durably picked up steam.
Third, monetary policy should remain accommodative, given the significant risk that inflation will undershoot targets. This can be done by scaling up government bond purchases. Other tools like negative rates can be brought in after further understanding is developed on their application in the UK context.

Turning to the ongoing post-Brexit trade discussions, we strongly encourage the UK and EU authorities to make every effort to reach an agreement. Progress on a range of issues has been made over the past year and there is room for a compromise beneficial to both sides. A solution would remove important downside risks from the outlook. Regardless of the outcome, it will be important to prepare the economy, firms, and people.
In sum, the UK economy is facing an extraordinarily challenging period. But the UK entered 2020 with advantages. It has strong institutions, highly credible fiscal and monetary policy frameworks, and flexible labor markets; households and corporations have strengthened their balance sheets since 2008; banks remain well capitalized and liquid. The UK has always risen to the challenges confronting it, and we have no doubt it will respond to the present challenges with its usual resolve.
Let me conclude by recognizing the UK’s wider global leadership on the COVID response, including vaccines and the contributions provided to the IMF for our low-income lending facilities, and for debt relief. These contributions will provide us with resources to help the least developed countries, who face great needs at present — helping them will also help reduce global instability for the benefit of all.
I am now happy to take your questions.
Compliments of the IMF.
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Coronavirus resurgence: EU Commission steps up action to reinforce preparedness and response measures across the EU

Today, the European Commission is launching an additional set of actions to help limit the spread of the coronavirus, save lives and strengthen the internal market’s resilience. Concretely, the measures aim to better understand the virus’ spread and the effectiveness of the response, ramp up well-targeted testing, bolster contact tracing, improve preparations for vaccination campaigns, and maintain access to essential supplies such as vaccination equipment, while keeping all goods moving in the single market and facilitating safe travel. This comes ahead of the European Leaders’ virtual meeting on 29 October on COVID-19 coordination, following the 15 October European Council. Even though Member States are better prepared and more coordinated than in the early months of the pandemic, citizens, families and communities across Europe continue to face an unprecedented risk to their health and well-being.
President of the European Commission, Ursula von der Leyen, said: “The COVID-19 situation is very serious. We must step up our EU response. Today we are launching additional measures in our fight against the virus; from increasing access to fast testing, and preparing vaccination campaigns to facilitating safe travel when necessary. I call on Member States to work closely together. Courageous steps taken now will help save lives and protect livelihoods. No Member State will emerge safely from this pandemic until everyone does.”
Stella Kyriakides, Commissioner for Health and Food Safety, said: “The rise in COVID-19 infection rates across Europe is very alarming. Decisive immediate action is needed for Europe to protect lives and livelihoods, to alleviate the pressure on healthcare systems, and to control the spread of the virus. Next month, we will present the first step towards a European Health Union. In the meantime, Member States must improve cooperation and data sharing. Our EU surveillance system is only as strong as its weakest link. It is only by showing true European solidarity and working together that we can overcome this crisis. Together we are stronger.”
The Commission’s Communication on additional COVID-19 response measures sets out next steps in key areas to reinforce the EU’s response to the resurgence in COVID-19 cases:
1. Improving the flow of information to allow informed decision-making
Ensuring accurate, comprehensive, comparable and timely information on epidemiological data, as well as on testing, contact tracing and public health surveillance, is essential to track how the coronavirus spreads at regional and national level. To improve the sharing of data at EU level, the Commission calls on Member States to provide all relevant data to the European Centre for Disease Prevention and Control (ECDC) and the Commission.
2. Establishing more effective and rapid testing
Testing is a decisive tool to slow down the spread of the coronavirus. To promote a common approach and effective testing, the Commission is today adopting a Recommendation on COVID-19 testing strategies, including the use of rapid antigen tests. It sets out key elements to be considered for national, regional or local testing strategies, such as their scope, priority groups, and key points linked to testing capacities and resources, and indications as to when rapid antigen testing may be appropriate. It also calls on Member States to submit national strategies on testing by mid-November. To directly purchase rapid antigen tests and deliver them to Member States, the Commission is mobilising €100 million under the Emergency Support Instrument. In parallel, the Commission is launching a joint procurement to ensure a second stream of access. Where Member States are applying prior testing requirements to incoming travellers and where no testing capacities are available for asymptomatic travellers in the country of origin, travellers should be offered the possibility to undergo a test after arrival. If negative COVID-19 tests are to be required or recommended for any activity, mutual recognition of tests is essential, in particular in the context of travel.
3. Making full use of contact tracing and warning apps across borders
Contact tracing and warning apps help to break transmission chains. So far, Member States have developed 19 national contact tracing and warning apps, downloaded more than 52 million times. The Commission recently launched a solution for linking national apps across the EU through a ‘European Federation Gateway Service‘. Three national apps (Germany, Ireland, and Italy) were first linked on 19 October when the system came online. Many more will follow in the coming weeks. In total, 17 national apps are currently based on decentralised systems and can become interoperable through the service in the coming rounds; others are in the pipeline. All Member States should set up effective and compatible apps and reinforce their communication efforts to promote their uptake.
4. Effective vaccination
The development and uptake of safe and effective vaccines is a priority effort to quickly end the crisis. Under the EU Strategy on COVID-19 vaccines, the Commission is negotiating agreements with vaccine producers to make vaccines available to Europeans and the world as soon as soon as they are proven safe and effective. Once available, vaccines need to be quickly distributed and deployed to maximum effect. On 15 October, the Commission set out the key steps that Member States need to take to be fully prepared, which includes the development of national vaccination strategies. The Commission will put in place a common reporting framework and a platform to monitor the effectiveness of national vaccine strategies. To share the best practices, the conclusions of the first review on national vaccination plans will be presented in November 2020.
5. Effective communication to citizens
Clear communication is essential for the public health response to be successful since this largely depends on the public adherence to health recommendations. All Member States should relaunch communication campaigns to counter false, misleading and dangerous information that continues to circulate, and to address the risk of “pandemic fatigue”. Vaccination is a specific area where public authorities need to step up their actions to tackle misinformation and secure public trust, as there will be no compromise on safety or effectiveness under Europe’s robust vaccine authorisation system. Vaccines do not save lives – vaccination does.
6. Securing essential supplies
Since the beginning of the outbreak, the EU has supported manufacturers to ensure the availability of essential medicines and medical equipment. The Commission has launched a new joint procurement for medical equipment for vaccination. In order to give Member States better and cheaper access to the tools needed to prevent, detect and treat COVID-19, the Commission is today also extending the temporary suspension of customs duties and VAT on the import of medical equipment from non-EU countries. The Commission is also proposing that hospitals and medical practitioners should not have to pay VAT on vaccines and testing kits used in the fight against the coronavirus.
7. Facilitating safe travel
Free movement within the EU and the border-free Schengen area are prized achievements of European integration – the Commission is working to ensure that travel within Europe is safe both for travellers and for their fellow citizens:

The Commission calls on Member States to fully implement the Recommendation adopted by the Council for a common and coordinated approach to restrictions to free movement. Citizens and businesses want clarity and predictability. Any remaining COVID-19 related internal border control measures should be lifted.
The European Union Aviation Safety Agency and the ECDC are working on a testing protocol for travellers, to be used by public health authorities, airlines and airports to help the safe arrival of passengers. The Commission will also work with Member States and agencies on a common approach to quarantine practices, with inputs from ECDC to be presented in November.
Passenger Locator Forms help Member States undertake risk assessments of arrivals and enable contact tracing. A pilot next month will allow Member States to prepare for the launch and use of a common EU digital Passenger Locator Form, while fully respecting data protection.

Re-open EU provides timely and accurate information on health measures and travel restrictions in all Member States and some partner countries. The Commission calls on Member States to provide accurate and up-to-date information to turn Re-open EU into the one-stop-shop for information about health measures and travel possibilities across the EU. A mobile Re-open EU app is being developed and will launch in the coming weeks.

When it comes to restrictions on non-essential travel from non-EU countries into the EU, the Commission is presenting guidance on categories of persons considered to be essential and therefore exempted from restrictions. This will help Member States to consistently implement the Council Recommendation on the temporary travel restriction to the EU. The Commission also once more encourages Member States to facilitate the reunion of those in durable relationships and provides examples of evidence that can be used for this purpose.

Green Lanes extension

Since March, the application of Green Lanes – most notably for road freight to cross borders in less than 15 minutes – has helped to maintain the supply of goods and the economic fabric of the EU. The Commission proposes to extend the Green Lane approach to ensure that multi-modal transport works effectively in areas including rail and waterborne freight and air cargo, and provides additional guidance to facilitate application in practice, on issues such as electronic documentation, and availability of rest and refuelling points. Member States should ensure the seamless free movement of goods across the Single Market.
Background
Recent weeks have seen an alarming increase in the rate of COVID-19 infections across Europe, and sparked new measures to limit the spread of the coronavirus and mitigate its impact. With health systems again under pressure, more needs to be done to control and overcome the situation, protecting lives and livelihoods, and promote European solidarity. Although preparedness and cooperation between Member States has improved since the start of the pandemic, coordination remains essential and must be enhanced.
Compliments of the European Commission.
The post Coronavirus resurgence: EU Commission steps up action to reinforce preparedness and response measures across the EU first appeared on European American Chamber of Commerce New York [EACCNY] | Your Partner for Transatlantic Business Resources.

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Advancing the EU social market economy: adequate minimum wages for workers across Member States

The Commission today proposes an EU Directive to ensure that the workers in the Union are protected by adequate minimum wages allowing for a decent living wherever they work. When set at adequate levels, minimum wages do not only have a positive social impact but also bring wider economic benefits as they reduce wage inequality, help sustain domestic demand and strengthen incentives to work. Adequate minimum wages can also help reduce the gender pay gap, since more women than men earn a minimum wage. The proposal also helps protect employers that pay decent wages to workers by ensuring fair competition.
The current crisis has particularly hit sectors with a higher share of low-wage workers such as cleaning, retail, health and long-term care and residential care. Ensuring a decent living for workers and reducing in-work poverty is not only important during the crisis but also essential for a sustainable and inclusive economic recovery.
President of the European Commission Ursula von der Leyen said: “Today’s proposal for adequate minimum wages is an important signal that also in crisis times, the dignity of work must be sacred. We have seen that for too many people, work no longer pays. Workers should have access to adequate minimum wages and a decent standard of living. What we propose today is a framework for minimum wages, in full respect of national traditions and the freedom of social partners. Improving working and living conditions will not only protect our workers, but also employers that pay decent wages, and create the basis for a fair, inclusive and resilient recovery.”
Executive Vice-President for an Economy that Works for People, Valdis Dombrovskis, said: “It is important to ensure that also low wage workers benefit from the economic recovery. With this proposal we want to make sure that workers in the EU earn a decent living wherever they work. Social partners have a crucial role to play in negotiating wages nationally and locally. We support their freedom to negotiate wages autonomously, and where this is not possible, we give a framework to guide Member states in setting minimum wages.”
Nicolas Schmit, Commissioner for Jobs and Social Rights, said: “Almost 10% of workers in the EU are living in poverty: this has to change. People who have a job should not be struggling to make ends meet. Minimum wages have to play catch up with other wages which have seen growth in recent decades, leaving minimum wages lagging behind. Collective bargaining should be the gold standard across all Member States. Ensuring adequate minimum wages is written in black and white in Principle 6 of the European Pillar of Social Rights, which all Member States have endorsed, so we are counting on their continued commitment.”
A framework for minimum wages in full respect of national competences and traditions
Minimum wages exist in all EU Member States.  21 countries have statutory minimum wages and in 6 Member States (Denmark, Italy, Cyprus, Austria, Finland and Sweden) minimum wage protection is provided exclusively by collective agreements. Yet, in the majority of Member States, workers are affected by insufficient adequacy and/or gaps in the coverage of minimum wage protection. In light of this, the proposed Directive creates a framework to improve the adequacy of minimum wages and for access of workers to minimum wage protection in the EU. The Commission’s proposal fully respects the subsidiary principle: it sets a framework for minimum standards, respecting and reflecting Member States’ competences and social partners’ autonomy and contractual freedom in the field of wages. It does not oblige Member States to introduce statutory minimum wages, nor does it set a common minimum wage level.
Countries with high collective bargaining coverage tend to have a lower share of low-wage workers, lower wage inequality and higher minimum wages. Therefore, the Commission proposal aims at promoting collective bargaining on wages in all Member States.
Countries with statutory minimum wages should put in place the conditions for minimum wages to be set at adequate levels. These conditions include clear and stable criteria for minimum wage setting, indicative reference values to guide the assessment of adequacy and regular and timely updates of minimum wages. These Member States are also asked to ensure the proportionate and justified use of minimum wage variations and deductions and the effective involvement of social partners in statutory minimum wage setting and updating.
Finally, the proposal provides for improved enforcement and monitoring of the minimum wage protection established in each country. Compliance and effective enforcement is essential for workers to benefit from actual access to minimum wage protection, and for businesses to be protected against unfair competition. The proposed Directive introduces annual reporting by Member States on its minimum wage protection data to the Commission.
Background
President von der Leyen promised to present a legal instrument to ensure that the workers in our Union have a fair minimum wage at the start of her mandate and repeated her pledge in her first State of the Union address on 16 September 2020.
The right to adequate minimum wages is in Principle 6 of the European Pillar of Social Rights, which was jointly proclaimed by the European Parliament, the Council on behalf of all Member States, and the European Commission in Gothenburg in November 2017.
Today’s proposal for a Directive is based on Article 153 (1) (b) of the Treaty on the Functioning of the EU (TFEU) on working conditions. It follows a two-stage consultation of social partners carried out in accordance with Article 154 TFEU. The Commission’s proposal will now go to the European Parliament and the Council for approval. Once adopted, Member States will have two years have to transpose the Directive into national law.
Compliments of the European Commission.
The post Advancing the EU social market economy: adequate minimum wages for workers across Member States first appeared on European American Chamber of Commerce New York [EACCNY] | Your Partner for Transatlantic Business Resources.

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The EU Single Window Environment for Customs – a path towards streamlined customs controls and trade facilitation through enhanced cooperation between authorities at the EU borders

On 28 October 2020, the European Commission proposed a new initiative that will make it easier for different authorities involved in goods clearance to exchange electronic information submitted by traders. The “EU Single Window Environment for Customs” will enhance cooperation and coordination between different authorities, and will support the automatic verification of non-customs formalities for goods entering or leaving the EU.
Each year, the Custom Union facilitates the trade of more than €3.5 trillion worth of goods. Efficient customs clearance and controls are essential to allow trade to flow smoothly while also protecting EU citizens, businesses and the environment. The EU Single Window Environment for Customs is a future-looking digital solution for quicker and more efficient sharing of electronic data between different government authorities involved in goods clearance at the border. Once fully rolled out, the Single Window will also allow businesses to complete border formalities in one single portal in a given Member State. Customs and other authorities will then be able to automatically verify that the goods in question comply with EU requirements and that the necessary formalities have been completed.

Image courtesy of the European Commission.
Why has the Commission proposed the Single Window?
Currently, the formalities required at the EU’s external borders often involve many different authorities in charge of different policy areas, such as health and safety, the environment, agriculture, fisheries, cultural heritage and market surveillance and product compliance. As a result, businesses have to submit information to several different authorities, each with their own portal and procedures. This is cumbersome and time-consuming for traders and reduces the capacity of authorities to act in a joined-up way in combatting risks.
This proposal is the first step in creating a digital framework for enhanced cooperation between all border authorities, through one Single Window. The Single Window will enable businesses and traders to provide data in one single portal in an individual Member State, thereby reducing duplication, time and costs. Customs and other authorities will then be able to collectively use this data, allowing for a fully coordinated approach to goods clearance and a clearer overview at EU level of the goods that are entering or leaving the EU.

Image courtesy of the European Commission.
How will the Single Window work in practice?
Member States should set up national Single Window portals, through which businesses can upload the information related to the goods they are bringing in or out of the EU. These national portals will then link up through the EU digital framework that the Commission will put in place, so that all relevant authorities can access the relevant data and collaborate more easily on border checks.
Ultimately, the aim is that national Single Windows will replace the multitude of different portals used by the different authorities responsible for border checks. This will create a much more streamlined, coordinated and holistic approach to goods clearance within the Union.
What is expected from Member States?
The Commission’s proposal is just the first step in creating the Single Window Environment for customs. This is an ambitious project that will entail important investment at both EU and Member State level, with gradual implementation over the next decade or so. Member States will need to invest in transforming their national legislation, processes and IT systems, so that they can fully reap the benefits of the Single Window. Where possible, the Commission is ready to support them in this work, including through funding from the Recovery and Resilience Facility.
The Single Window proposal was announced in the new Customs Union Action Plan published in September this year and it is part of President von der Leyen’s commitment to take the Customs Union to the next level.

Image courtesy of the European Commission.
History of the project
Given the complex nature of this task and the extensive work it entails, a phased approach to the creation of the Single Window was adopted for its implementation.
The first step was the enabling of automated validation of supporting documents (i.e. certificates and licenses) to the customs declaration, using the EU Customs SW IT solution provided by the European Commission DG TAXUD infrastructure. The automated acceptance and verification of certificates by customs already offer benefits to both economic operators and public administrations.
The first pilot project of the EU Customs SW initiative, the EU Single Window – Common Veterinary Entry Document (EU SW-CVED), was initiated in 2012 and entered into production in December 2014.
The aim of the EU SW-CVED project is to provide for automated validity checks of the Common Veterinary Entry Document (CVED) and Common Entry Document (CED) certificates submitted with customs declarations.
This project consists in interconnecting the Member States Customs Systems and the DG SANTE certificates database TRACES, which holds the CVED and CED certificates, through the DG TAXUD IT solution.
The system is operational with nine Member States in production in 2020 in 9 Member States (Czechia, Ireland, Slovenia, Latvia, Bulgaria, Poland, Cyprus, Estonia and Portugal).
The successor of the project (called EU Customs SW – CERTEX) version 1 is being rolled out by the last quarter of 2020. EU CSW-CERTEX streamlines the interface towards Member States and expands on formalities included.
EU Customs Single Window – Certificates Exchange
The business case for the new project, the “EU Customs Single Window: Certificates exchange (EU CSW-CERTEX)” project was approved by the Member States and the Commission in early 2017 to accommodate new certificates’ integration and enhancement of the functionalities of the EU SW-CVED phase. The “EU Customs Single Window: CERTEX” project is based on the EU SW-CVED pilot project.
The enhancement of the functionalities of the EU SW-CVED consist of adding the quantity management functionality, and the possibility to generate and transmit certificates in a human-readable format (i.e. PDF) for the three certificates currently available in the EU SW-CVED (CVEDA, CVEDP and CED).
Three new certificates have been added to the project: Forest Law Enforcement, Governance and Trade (FLEGT) from DG ENV, Certificate of Organic Inspection (COI) from DG AGRI and Common Health Entry Document for Plant Protection (CHED-PP) from DG SANTE, envisaging the same functionalities as for the CVEDA, CVEDP and CED after the above-mentioned enhancement.
All three new certificates are managed by TRACES NT administered by the European Commission’s DG SANTE.
Initially, the project is limited to connecting the EU Customs SW to TRACES/TRACES NT since the six certificates falling in scope (CVEDA, CVEDP, CED, FLEGT, COI and CHED-PP) are managed within TRACES/TRACES NT. However, looking at the perspectives of the EU Customs SW evolution, other certificates hosted on a database different than TRACES NT will be added.
The next project phase will cover the interconnection with the ODS2 Licensing system of DG CLIMA, allowing the exchange of information on the Ozone Depleting Substances Licenses (ODS) and Fluorinated Greenhouse Gases (FGAS). This interconnection is planned to be enabled in 2020 for ODS and in 2021 for the FGAS flow.
More work is ongoing in area of CITES, market surveillance, etc.
Customs 2020 working group
In parallel with the activities on certificates exchange, a Customs 2020 Project Group was set up in December 2016 to study a possible framework to develop the EU Single Window environment for customs including its legal aspects.
This Project Group aimed to tackle the global vision of the EU Single Window environment for customs including the coverage for the automated acceptance and verification of certificates supporting the customs declaration, the necessary legal basis, as well as the Action Plan to establish such environment.
Following the outcome of first phase project activities, a new legal initiative was launched in April 2017, receiving political validation on 20/06/2017. The Inception Impact Assessment for this initiative was published in Europa-info-better regulation-initiatives.
The aforementioned Project Group continued to support the legal developments of the initiative as a consultative body.
Stakeholder consultations
The European Commission launched a public consultation to provide stakeholders involved in the cross-border movement of goods and the wider public with the opportunity to express their views on all elements covered by the impact assessment: problem definition and respective drivers/root causes; the issue of subsidiarity and the added value of an EU level intervention; preliminary options for measures/policy packages; likely impacts of each option. Qualitative (opinions, views, perceptions, suggestions) and quantitative information (data, statistics) were sought from stakeholders.
The public consultation ran from 09/10/2018 until 17/01/2019; the questionnaire that was used in this consultation can be found here. The individual responses submitted during the public consultation period can be viewed in their raw form in this table. A brief statistical report presents the responses for each question – the summary report a more detailed analysis of the public consultation. Participants also had the possibility to upload position papers, which can be found here.
More detailed information about all of the stakeholder consultation activities planned for this initiative can be found in this stakeholder consultation strategy here.
Contact:

TAXUD-E-CUSTOMS@ec.europa.eu

Compliments of the European Commission.
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EU Commission disburses €17 billion under SURE to Italy, Spain and Poland

The European Commission has disbursed a total of €17 billion to Italy, Spain and Poland in the first instalment of financial support to Member States under the SURE instrument. As part of today’s operations, Italy has received €10 billion, Spain €6 billion, and Poland €1 billion. Once all SURE disbursements have been completed, Italy will receive a total of €27.4 billion, Spain €21.3 billion and Poland €11.2 billion.
This support, in the form of loans granted on favourable terms, will assist these Member States in addressing sudden increases in public expenditure to preserve employment. Specifically, they will help cover the costs directly related to the financing of national short-time work schemes, and other similar measures they have put in place as a response to the coronavirus pandemic, in particular for the self-employed.
The SURE instrument can provide up to €100 billion in financial support to all Member States. The Council has so far approved €87.9 billion in financial support under SURE to 17 Member States, based on the Commission’s proposals. The next disbursements will take place over the course of the months ahead, following the respective bond issuances.
The disbursements follow last week’s inaugural social bond issuance by the Commission, marked by very strong investor interest, to finance the instrument.
Members of the College said:
President Ursula von der Leyen said: “The first disbursements under the SURE instrument are important milestones in our push to preserve jobs and livelihoods. They clearly demonstrate Europe’s solidarity with citizens in Spain, Italy and Poland affected by this unprecedented crisis. We remain committed to protecting people and jobs across Europe. SURE will play an important role in achieving this objective.”
Johannes Hahn, Commissioner in charge of Budget and Administration, said: “With the Sure instrument we have managed to live up to our citizens’ expectation regarding quick delivery of support in times of crisis.  I am glad to see that citizens and enterprises in Spain, Italy, Poland will be the first to benefit. 17 Member States have already declared their interest in receiving support from SURE and we will follow-up on this still this year. This is solidarity in action.”
Paolo Gentiloni, Commissioner for Economy, said: “Today marks an important milestone for European solidarity as the first financing flows to our Member States: 17 billion euros to support workers in Italy, Spain and Poland. This is only the beginning. As Europe prepares to face a difficult winter, let’s remember that last week’s SURE Social Bonds issuance was more than a successful market operation – it was a huge vote of confidence in the European Union’s recovery plan and in our common economic future.”
Background
On 21 October, the European Commission issued a €17 billion inaugural social bond under the SURE instrument. The issuing consisted of two bonds, with €10 billion due for repayment in October 2030 and €7 billion due for repayment in 2040. There was very strong investor interest in this highly rated instrument, and the bonds were more than 13 times oversubscribed, resulting in favourable pricing terms. The terms on which the Commission borrows are passed on directly to the Member States receiving the loans.
The bonds issued by the EU under SURE benefit from a social bond label. This provides investors in these bonds with confidence that the funds mobilised will serve a truly social objective.
Compliments of the European Commission.
The post EU Commission disburses €17 billion under SURE to Italy, Spain and Poland first appeared on European American Chamber of Commerce New York [EACCNY] | Your Partner for Transatlantic Business Resources.

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Boeing WTO case: the EU gets formal green light to impose duties on U.S. imports

Today, the Dispute Settlement Body of World Trade Organization (WTO) formally authorised the EU to take countermeasures against the United States. The EU can now increase its duties on U.S. exports worth up to $4 billion. Today’s decision follows the WTO panel announcement confirming EU retaliation rights in reaction to illegal subsidies granted to the U.S. aircraft maker, Boeing.
Executive Vice-President for an Economy that Works for People and Commissioner for Trade, Valdis Dombrovskis, said: “Today’s formal approval by the Dispute Settlement Body of the WTO confirms the EU’s right to impose countermeasures for illegal subsidies to the American aircraft maker, Boeing. The European Commission is preparing the countermeasures, in close consultation with our Member States. As I have made clear all along, our preferred outcome is a negotiated settlement with the U.S. To that end, we continue to engage intensively with our American counterparts, and I am in regular contact with U.S. Trade Representative Robert E. Lighthizer. In the absence of a negotiated outcome, the EU will be ready to take action in line with the WTO ruling.”
The European Commission is currently finalising the process, involving EU Member States, to be ready to use its retaliation rights in case there is no prospect of bringing the dispute to a mutually beneficial solution in a near future.
Compliments of the European Commission.
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BIS | Focus on the future of banking supervision in a changing world

At the 21st International Conference of Banking Supervisors, senior banking supervisors and central bankers discussed issues related to the future of banking supervision in a changing world.
Discussions covered the digitalisation of finance and the evolution of banking models, operational resilience, climate-related financial risks and remote working arrangements.
This was the first time the Basel Committee has worked with a host country to offer a completely virtual conference.

The 21st International Conference of Banking Supervisors (ICBS), hosted virtually by the Office of the Superintendent of Financial Institutions (OSFI) and the Bank of Canada, was held on 19-22 October 2020. Approximately 450 senior banking supervisors and central bankers representing close to 100 countries took part.
Delegates discussed a wide range of issues related to the future of banking supervision in a changing world. The discussions covered the digitalisation of finance and the evolution of banking models, operational resilience, climate-related financial risks and remote working arrangements. Participants also exchanged views on the challenges for central banks and bank supervisors in advanced and emerging market economies during the Covid-19 pandemic, as well as adapting to the changing operating environment for central banks and supervisors.
The event included several panel discussions and keynote speeches by Pablo Hernández de Cos, Chair of the Basel Committee on Banking Supervision and Governor of the Bank of Spain, and Prithwiraj Choudhury, Associate Professor at Harvard Business School.
This successful event marks the first time that the Basel Committee has worked with a host country to offer a completely virtual conference.
The ICBS, which has been held every two years since 1979, brings together bank supervisors and central bankers from around the world as well as representatives of international financial institutions. The conference promotes the discussion of key supervisory issues and fosters the continuing cooperation in the oversight of international banking. With its wide membership of senior supervisors and policymakers, the ICBS presents a unique opportunity for a broad-based discussion on issues that are timely and relevant to supervisors in both advanced and emerging market economies.

“This virtual ICBS lived up to our high expectations of providing a forum for central bankers and supervisors to discuss current challenges and the future of banking supervision in a fast-moving world. A critical element to see through the changes is the implementation of all aspects of the Basel Framework by our members.”Pablo Hernández de Cos, Chair of the Basel Committee and Governor of the Bank of Spain

“I am very proud that OSFI co-hosted this event on behalf of Canada. Now more than ever, it is important that banking supervisors can come together and share their experiences and perspectives. Reimagining this year’s ICBS as a model for the “conference of the future” ensured that we were able to do so.”Jeremy Rudin, Superintendent, Office of the Superintendent of Financial Institutions

My sincere thanks to all the personnel at the Basel Committee, OSFI and the Bank of Canada, whose hard work and ingenuity made this year’s conference possible. The success of this virtual event epitomises many of the themes that were discussed – digitalisation, operational resilience, collaboration and adaptation to changing circumstances.Tiff Macklem, Governor, Bank of Canada

Compliments of the Bank of International Settlements.
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Central banks and BIS publish first central bank digital currency (CBDC) report laying out key requirements

Released on October 09, 2020 |

Seven central banks and the BIS release a report assessing the feasibility of publicly available Central Bank Digital Currencies (CBDCs) in helping central banks deliver their public policy objectives.
Report outlines foundational principles and core features of a CBDC, but does not give an opinion on whether to issue.
Central banks to continue investigating CBDC feasibility without committing to issuance.

A group of seven central banks together with the Bank for International Settlements (BIS) today published a report identifying the foundational principles necessary for any publicly available CBDCs to help central banks meet their public policy objectives.
The report, Central bank digital currencies: foundational principles and core features, was compiled by the Bank of Canada, the Bank of England, the Bank of Japan, the European Central Bank, the Federal Reserve, Sveriges Riksbank, the Swiss National Bank and the BIS, and highlights three key principles for a CBDC:

Coexistence with cash and other types of money in a flexible and innovative payment system.
Any introduction should support wider policy objectives and do no harm to monetary and financial stability.
Features should promote innovation and efficiency.

The group of central banks will continue to work together on CBDCs, without prejudging any decision on whether or not to introduce CBDCs in their jurisdictions.

“This report is a real step forward for this group of central banks in agreeing the common principles and identifying the key features we believe would be needed for a workable CBDC system. As well as helping central banks to meet their public policy objectives, the report provides a useful framework for how central banks provide money and support payment systems in an ever-evolving digital world. This group of central banks has built a strong international consensus which will help light the way as we each explore the case and design for CBDCs in our own jurisdictions.”Sir Jon Cunliffe, working group co-chair, Deputy Governor of the Bank of England and Chair of the Committee on Payments and Market Infrastructures

Based on these principles, the group has identified the core features of any future CBDC system, which must be:

Resilient and secure to maintain operational integrity.
Convenient and available at very low or no cost to end users.
Underpinned by appropriate standards and a clear legal framework.
Have an appropriate role for the private sector, as well as promoting competition and innovation.

“A design that delivers these features can promote more resilient, efficient, inclusive and innovative payments. Although there will be no ‘one size fits all’ CBDC due to national priorities and circumstances, our report provides a springboard for further development of workable CBDCs.”>Benoît Cœuré, working group co-chair and Head of the BIS Innovation Hub

Further development of CBDCs requires a commitment to practical policy analysis and applied technical experimentation. While this has already started, the speed of innovation in payments and money-related technologies requires the prioritisation of collaborative experimentation.

“While technology is changing the way we pay, central banks have a duty to safeguard people’s trust in our money. Central banks must complement their domestic efforts with close cooperation to guide the exploration of central bank digital currencies to identify reliable principles and encourage innovation. The present report is a convincing proof of this international cooperation.”>Christine Lagarde, President of the European Central Bank, chair of the group of central bank governors responsible for the report

Future activities will include exploring other open questions around CBDCs and the challenges of cross-border payments, as well as continuing outreach domestically and with other central banks to foster informed dialogue on key issues. Work by the BIS Innovation Hub, which serves the broader central banking community, will contribute to this objective.
Compliments of the Bank of International Settlements. 
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ECB enhances internal whistleblowing framework

Enhanced rules and new internal tool to enable staff to speak up in confidence
Secure online platform allows for anonymous reporting
Dedicated rules and processes protect whistleblowers from retaliation

The European Central Bank (ECB) has today announced an enhanced internal whistleblowing framework to protect the integrity of the institution. It encompasses a new internal tool for simple and secure reporting of potential breaches of professional duties, inappropriate behaviour or other irregularities, and the possibility for whistleblowers and witnesses to request protection from retaliation. The new IT tool also allows for anonymous reporting.
“Acting in an ethical manner goes beyond a mere compliance with law, rules and policies. It is a commitment guiding our behaviour and driving us to make the right choice even if we are faced with challenges or put under pressure,” said Christine Lagarde, ECB President. “The new whistleblowing framework reinforces the ECB’s dedication to its shared values and encourages staff to speak up in full confidence.”
The new IT tool is expected to become available in coming weeks. The online internal reporting tool is complementary to the ECB’s existing breach reporting mechanism used primarily in banking supervision, which is available externally.
The initiative reflects the ECB’s commitment to promoting integrity, good corporate governance and the highest ethical standards.
Compliments of the ECB.
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