The Eurogroup discussed macroeconomic and fiscal developments in the euro area and looked into the functioning of adjustment mechanisms. Ministers also adopted the Eurogroup work programme for the second half of 2021 and heard the reports from the chairs of the ECB Supervisory Board and of the Single Resolution Board.
Exchange of views on macroeconomic and fiscal developments
The Eurogroup exchanged views with the chair of the ECON committee of the European Parliament, Ms Irene Tinagli, on the macroeconomic and fiscal situation in the euro area, also on the basis of the Commission’s spring forecast.

We can see a recovery taking hold. But we also know that the challenges remain great, that the risk of scarring and damage from this pandemic in our societies, for our citizens and on the balance sheets of employers continues to be real.
Paschal Donohoe, President of the Eurogroup

This exchange is part of an ongoing dialogue aiming to strengthen the exchange of information between the European Parliament and the Eurogroup.

Spring 2021 economic forecast (European Commission)

Functioning of adjustment mechanisms within the euro area – insights from the COVID-19 pandemic
Finance ministers discussed the functioning of adjustment mechanisms in the euro area, focussing on the COVID-19 pandemic.
In September 2017, the Eurogroup agreed to use economic resilience as a general framework for future thematic discussions on growth and jobs. As part of this work stream, ministers look into adjustment mechanisms, which are an important element of economic resilience in the euro area.

We will plan for a fiscal policy that will get the balance right between continuing to support our employers and our citizens towards a sustainable recovery, but also doing so in a sustainable and in a targeted way.
Paschal Donohoe, President of the Eurogroup

COVID-19: the EU’s response to the economic fallout (background information)

Work programme for the second half of 2021
The Eurogroup adopted the work programme for the second half of the year, covering the period from July until December.

Statement by the Eurogroup President on the Eurogroup work programme for the second half of 2021, 21 May 2021

Reporting on banking union operational aspects
13th hearing of the chair of the Supervisory Board
The chair of the Supervisory Board of the European Central Bank, Mr Andrea Enria, informed the Eurogroup about the supervisory tasks carried out since the last report. The chair focused on credit and climate risks, and Brexit.
A regular exchange of views between the Eurogroup and the chair of the ECB’s Supervisory Board is foreseen in the regulation (1024/2013) of the Single Supervisory Mechanism (SSM) as well as in the memorandum of understanding between the Council of the European Union and the ECB on the cooperation on procedures related to the SSM.
The 12th hearing took place in November 2020.

Council Regulation (EU) No 1024/2013 of 15 October 2013 conferring specific tasks on the European Central Bank concerning policies relating to the prudential supervision of credit institutions
Memorandum of Understanding between the Council of the European Union and the ECB on the cooperation on procedures related to the Single Supervisory Mechanism

Reporting on recent activities of the Single Resolution Board
The chair of the Single Resolution Board (SRB), Ms Elke König, updated the Eurogroup on the recent activities undertaken by the SRB, focusing particularly on the progress made on resolvability, the minimum requirements for own funds and eligible liabilities (MREL) and the build-up of the Single Resolution Fund (SRF).
This is a regular presentation, which takes place twice a year in parallel with the hearing of the chair of the ECB Supervisory Board.

Banking union (background information)

Compliments of the European Council.
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The OECD released a new report today – Tax Co-operation for Development: Progress report in the COVID-19 era – looking back on the past year showing how developing countries have interacted with the OECD on a range of tax policy and administration issues. These include participating in the development and implementation of inclusive international standards; country-level capacity building programmes delivered through a variety of platforms and modalities; guidance and data developed and analysed by world-class experts on tax policy and administration; and through partnerships with international organisations, regional tax organisations and other stakeholders.
The COVID-19 pandemic has had a huge impact on the health of both people and economies, with developing countries hit the hardest. Developing countries already struggle with limited fiscal space – for example, average tax-to-GDP ratios in African countries is 16.5%, as compared to the OECD average of 34.3%, and have less scope for borrowing or quantitative easing. Developing countries tend to rely more heavily on VAT and corporate income tax, both of which have been negatively affected by the shocks to the economy in 2020.
The report shows how the OECD is working with developing countries to maximise revenue collection and develop targeted and effective tax policy measures, particularly as they adjust to the challenges of the COVID-19 pandemic. Following the suspension of travel in March 2020, the OECD made a rapid adjustment to providing virtual support, including e-learning and virtual workshops, to replace face-to-face events. In 2020, the OECD’s tax capacity building service covered more than 30 000 tax officials from the developing world, compared to 5 000 in a typical year.
The progress report covers the full range of assistance that the OECD provides to developing countries on facilitating knowledge sharing of tax policy and administration responses to the pandemic, preventing tax avoidance and combating tax evasion, and supporting them on a range of tax issues relevant to achieving the Sustainable Development Goals.
Contact:

Media enquiries: ctp.communications@oecd.org

Compliments of the OECD. 
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Governments around the world are playing a crucial role in providing lifelines to people and firms to help combat the pandemic and its economic fallout. To support the effectiveness of these efforts, it is important that such spending be subject to adequate transparency and accountability.

‘The IMF presses for better governance through greater transparency.’

To this end, the IMF has called for ensuring transparency and accountability in pandemic-related spending, so that the money and measures help the people who need it most, using the adage, “spend what you must, but keep the receipts.”
The IMF presses for better governance through greater transparency, and has sought specific governance measures for countries receiving IMF financing during the crisis. These include commitments to publish pandemic-related procurement contracts and the beneficial ownership of companies awarded these contracts, as well as COVID-19 spending reports and audit results.
The measures are tailored to country circumstances and the severity of corruption risks. In addition, all recipient countries commit to undertake a Safeguards Assessment—a due diligence exercise that is aimed at ensuring that a country’s central bank is able to provide reliable information and transparently manage the funds that it receives from the IMF.
Addressing corruption is a long game. These emergency spending measures are not silver bullets and will only go so far in addressing deeper challenges. Longer-term governance and corruption vulnerabilities will continue to be addressed under the IMF’s broader 2018 Framework for Enhanced Fund Engagement on Governance, with a focus on multi-year IMF lending arrangements, annual health checks of IMF member countries, and capacity development.
Are the receipts coming in?
A year into the emergency response, information is becoming available on the progress in implementing these governance measures in pandemic-related spending.

On publication of contract information, most of the commitments have or are in the process of being met, including, for example, in the Dominican Republic, Guinea, Nepal, and Ukraine. In some countries, capacity constraints contribute to limited progress. In these cases, the IMF is providing capacity development to support implementation.
Collecting and publishing the beneficial ownership of contracting companies is a measure that aims to deter corruption, including by facilitating the detection of potential conflicts-of-interest involving public officials. It requires bidding companies to provide the names of the people with effective control over a company, that is the “beneficial owners.” This information is provided to the procurement agency, which must publish it.

Implementation of this innovative practice has proven challenging in some cases, with only half of the countries (including Benin, Ecuador, Jordan, Malawi, and Moldova) having implemented this commitment or made substantial progress toward it.
However, such commitments made in the context of IMF financing during the pandemic have helped spur some countries, such as Kenya and the Kyrgyz Republic, to adopt this reform on a permanent basis. That is, beyond just pandemic-related spending.

On audits of emergency spending, the deadline for conducting ex-post audits is typically set at 3-12 months after the end of the fiscal year. Accordingly, it is too early to assess implementation—most audits are in preparation based on existing systems.

However, some countries, such as Jamaica, Honduras, Maldives, and Sierra Leone have already taken early action by conducting risk-based, real-time audits. Where needed, the IMF is also stepping up its capacity development to help supreme audit institutions fulfill their responsibility, while also supporting efforts to ensure that such information is easily retrievable.

On reporting of pandemic-related spending, most countries are, or will shortly begin, publicly reporting on execution of this spending.

Safeguard assessments are being undertaken rapidly, with the pace of these assessments doubling after the pandemic’s onset.

Tackling deeper challenges
Beyond these measures focused on accountability and transparency in the crisis response, broader governance and anti-corruption reforms are also progressing in the context of multi-year IMF financing arrangements.
Such reforms cover multiple areas, including fiscal governance in countries such as Ecuador, The Gambia, Jordan, Liberia, Rwanda, and Senegal; anti-corruption and anti-money laundering frameworks in Angola, Armenia, Republic of Congo, Kenya, and Tunisia; and financial sector oversight and central bank governance in Liberia and Ukraine, among others.
Beyond IMF financing
Transparency and accountability in the crisis response are important for all countries, regardless of their income level, and such measures are of course commonplace in many countries beyond those receiving IMF financing.
These efforts vary. For example, some countries publish comprehensive spending information on dedicated transparency portals as in Brazil, Colombia, Costa Rica, France, and Peru. Others, such as South Korea, conduct frequent external audits to verify pandemic-related spending. Some develop clear guidelines for emergency procurement, as in Spain, and/or detect conflicts-of-interest by analyzing beneficial ownership data and financial disclosures of senior public officials, as in Romania.
Through the IMF’s regular “Article IV” health check of the economies of its members, and through regular policy dialogue, IMF staff continue to discuss transparency and accountability in pandemic-related spending, such as in Poland, the United Kingdom, and the United States, and, more generally, in fiscal, monetary, and financial sector measures.
Building on progress
Sustained country engagement on governance and anti-corruption will be necessary to support effective implementation of reforms undertaken during the pandemic and beyond. A key component is implementing the IMF’s 2018 Framework—which remains a priority for the IMF and goes beyond anti-corruption to address fiscal governance, financial sector oversight, central bank governance, market regulation, rule of law, and anti-money laundering frameworks. As the critical capacity to implement governance measures varies across countries and by type of measure, IMF staff will also continue to provide tailored capacity development on these issues through channels such as technical assistance, training, and webinars.
The IMF will take stock of progress in implementing the 2018 framework in mid-2022, with a view to assessing how it can continue to support member countries in strengthening governance.
Efforts to enhance governance will depend even more crucially on high-level political ownership of reforms, international cooperation, and a joint effort with civil society and the private sector, among other stakeholders. Progress also requires sustained implementation of reforms over an extended period. Such progress is not easy, but it is nonetheless achievable—and it is essential for fostering stronger and more inclusive economic growth.
Authors:

Chady El Khoury
Jiro Honda
Johan Mathisen
Etienne Yehoue

Compliments of the IMF.
The post IMF | Checking the Receipts from Pandemic-Related Spending first appeared on European American Chamber of Commerce New York [EACCNY] | Your Partner for Transatlantic Business Resources.

Introductory remarks by Fabio Panetta, Member of the Executive Board of the ECB, at the 14th Payment Forum of Suomen Pankki − Finlands Bank, Helsinki, 19 May 2021 |
Thank you for inviting me to speak at this fourteenth edition of the Payments Forum organised by Suomen Pankki – Finlands Bank. Finland is often seen as a forerunner in the development of retail payments, certainly when it comes to digitalisation and its effects. And I am pleased that despite the ongoing pandemic, we have come together as stakeholders of the payments ecosystem.
Today, I would like to discuss how we can promote digital, European, instant retail payment solutions that can be used by everyone, everywhere.
Digital
Digitalisation has indisputably come a long way in reshaping the European retail payments landscape.[1] So it is natural for digitalisation to be one of the starting points of our retail payments strategy.[2]
Simply put, digitalisation is changing the way we pay. We are increasingly paying online and with cards. The pandemic has further accelerated this trend.[3]
In facing these developments, Europe is not optimally positioned, not least because of the “wait-and-see” attitude that has in some cases prevailed in the past. This has made Europe overly dependent on a few foreign providers for card and online payments, resulting in a high degree of market concentration.[4]
European
To increase choice, resilience and competitiveness, the European payments ecosystem must proactively stimulate competition, including by developing innovative, Europe-grown payment solutions and technologies.
For this reason, a key priority of our retail payments strategy is the development of a European payment solution for the point of interaction.[5] The ECB welcomed the launch of the European Payments Initiative[6] as its objectives meet our public interest criteria: pan-European reach and customer experience, convenience and cost efficiency, safety and efficiency, European brand and governance, and global acceptance as a longer-term goal. We remain open to other market initiatives, provided they meet these requirements.
Instant
Another key priority of our retail payments strategy is the full deployment of instant payments. Here, too, the industry has a decisive role to play, facilitated or guided by the authorities.
On the operational side, the Eurosystem has taken steps to ensure the pan-European reach of instant payments by the end of 2021 through our TARGET instant payments settlement service (TIPS).[7] But we know that the private sector, by contrast, has made far less progress on this front.
The next step is for payment service providers to offer instant payments at attractive and transparent conditions. This means that prices should be neither excessive nor hidden to consumers. While the cost for service providers of using TIPS is 0.20 eurocent (€0.002) per instant payment transaction, instant payments are sometimes offered to consumers for €1 per transaction. This must change. For instant payments to become the new normal, they must be cheap and easy to use. We would also like to see providers make instant payments available on all commonly used electronic channels and offer much-desired functionalities such as Request-to-Pay.
For everyone, everywhere
Our strategy goes further. Payments that cross the EU border must become cheaper, easier and faster. We thus contribute to the international work on cross-border payments, and we are exploring with Sveriges Riksbank how TIPS could support cross-currency instant payment transactions.
To promote innovation and digitalisation, we are also investigating the opportunities of pan-European electronic identities and electronic signatures for retail payments. Finally, the strategy encompasses work on the environmental sustainability of payments and on access to payments for all citizens.
We are also preparing for the future through our work on a possible digital euro. A digital euro would provide Europeans cost-free access to a safe form of digital money which respects privacy and has legal tender status, ensuring it can be used everywhere.
Work is ongoing in cooperation between the ECB and the national central banks, including Suomen Pankii – Finlands Bank.
Let me conclude.
The Eurosystem and the European Commission have outlined a clear vision of the future of retail payments[8] in Europe. Digital, European, instant, for everyone, everywhere. Together, we can make it happen.
Compliments of the European Central Bank.
The post ECB Speech | At the edge of tomorrow: preparing the future of European retail payments first appeared on European American Chamber of Commerce New York [EACCNY] | Your Partner for Transatlantic Business Resources.

The European Commission has today adopted a Communication on Business Taxation for the 21st century to promote a robust, efficient and fair business tax system in the European Union. It sets out both a long-term and short-term vision to support Europe’s recovery from the COVID-19 pandemic and to ensure adequate public revenues over the coming years. It aims to create an equitable and stable business environment, which can boost sustainable and job-rich growth in the EU and increase our open strategic autonomy. The Communication takes account of the progress made in the G20/OECD discussions on global tax reform.
First, the Commission will present by 2023 a new framework for business taxation in the EU, which will reduce administrative burdens, remove tax obstacles and create a more business-friendly environment in the Single Market. The “Business in Europe: Framework for Income Taxation” (or BEFIT) will provide a single corporate tax rulebook for the EU, providing for fairer allocation of taxing rights between Member States. BEFIT will cut red tape, reduce compliance costs, minimise tax avoidance opportunities and support EU jobs and investment in the Single Market. BEFIT will replace the pending proposal for a Common Consolidated Corporate Tax Base, which will be withdrawn. The Commission will launch a broader reflection on the future of taxation in the EU, which will culminate in a Tax Symposium on the “EU tax mix on the road to 2050” in 2022.
Second, today’s Communication also defines a  tax agenda for the next two years, with measures that promote productive investment and entrepreneurship, better safeguard national revenues, and support the green and digital transitions. This builds on the ambitious roadmap set out in the Tax Action Plan, presented by the Commission last summer.  Measures will include:

Ensuring greater public transparency by proposing that certain large companies operating in the EU publish their effective tax rates. The abusive use of shell companies will also be tackled through new anti-tax avoidance measures;
Supporting the recovery by addressing the debt-equity bias in the current corporate taxation, which treats debt financing of companies more favourably than equity financing. This proposal will aim to encourage companies to finance their activities through equity rather than turning to debt.

Third, the Commission has adopted today a Recommendation on the domestic treatment of losses. The Recommendation prompts Member States to allow loss carry-back for businesses to at least the previous fiscal year. This will benefit businesses that were profitable in the years before the pandemic, allowing them to offset their 2020 and 2021 losses against the taxes they paid before 2020. This measure will particularly benefit SMEs.
Background
Today’s Communication is part of a wider EU tax reform agenda for the coming years. In addition to the corporate tax reforms set out in the Communication, the Commission will soon present measures to ensure fair taxation in the digital economy. The Commission will propose a digital levy, which will serve as an EU own resource. The Commission will also soon come forward with a review of the Energy Taxation Directive and the Carbon Border Adjustment Mechanism (CBAM), in the context of the “FitFor55” package and European Green Deal.
Members of the College said:
Valdis Dombrovskis, Executive Vice-President for an Economy that Works for People, said: “Taxation needs to keep up to speed with our evolving economies and priorities. Our tax rules should support an inclusive recovery, be transparent and close the door on tax avoidance. They should also be efficient for businesses big and small. Today’s Communication will set the foundations for a corporate tax system in Europe that is fit for the 21st century, helping us to build a fairer and more sustainable society.”
Paolo Gentiloni, Commissioner for Economy, said, “It’s time to rethink taxation in Europe. As our economies transition to a new growth model supported by NextGenerationEU, so too must our tax systems adapt to the priorities of the 21st century. The renewal of the transatlantic relationship offers an opportunity to make decisive progress towards a global tax reform. We must work to seize that opportunity, while ensuring that an international agreement protects Europe’s key interests. Today we set out how a global deal will be implemented in the EU – and the other steps we will take over the coming three years to increase tax transparency and help businesses small and large to recover, grow and invest.”
Compliments of the European Commission.
The post Future-proof taxation – Commission proposes new, ambitious business tax agenda first appeared on European American Chamber of Commerce New York [EACCNY] | Your Partner for Transatlantic Business Resources.

The European External Action Service (EEAS), in cooperation with the Portuguese Presidency of the Council of the European Union and the European Union Institute for Security Studies (EUISS), held a scenario-based discussion with EU Member States and international partners on 17 May 2021. The discussion, the first of its kind, focused on how to address international security challenges related to cyberspace.
All EU Member States, Australia, Canada, Japan, Mexico, New Zealand, Norway, Singapore, Republic of South Korea, Switzerland, United Kingdom and United States participated in the discussion. The aim of the scenario-based discussion was to improve the mutual understanding of the respective diplomatic approaches to prevent, discourage, deter and respond to malicious cyber activities, and to identify opportunities for further strengthening international cooperation to this end.
The discussions were based on a scenario in which a territory of a fictitious EU Member State and a partner country were subjected to malicious cyber activities, affecting a broader international community. The exchanges underlined the potential impact of the misuse of information and communication technologies (ICTs) on our security, economy and society at large, how an event in one country could have an immediate impact across the globe, and how diplomatic means that are clear, transparent and consistent with international law could contribute to conflict prevention, cooperation and stability in cyberspace.
It demonstrated the need to enhance diplomatic cooperation and to continue to strengthen cyber diplomacy expertise to advance a global, open, stable and secure cyberspace, respecting human rights and fundamental freedoms and the rules-based order, grounded in the application of existing international law in cyberspace and the adherence to the norms, rules and principles of responsible state behaviour.
The scenario-based discussion marks an important milestone towards closer international cooperation in promoting security and stability in cyberspace, as part of the 2020 EU Cybersecurity Strategy.
Director Joanneke Balfoort, responsible for Security and Defence Policy, represented the EEAS.
Compliments of the Delegation of the United States to the European Union.
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Thinking about adding cryptocurrency to your investment portfolio? The number of Americans investing in cryptocurrency has increased. But as a new FTC Consumer Protection Data Spotlight suggests, the number who report getting stung by cryptocurrency investment scams has skyrocketed. You’ll want to read the Data Spotlight in detail, but here are five facts that suggests caution before sinking your savings into cryptocurrency.

Consumers report losing millions to cryptocurrency scams. Since October 2020, nearly 7,000 consumers have reported losses to cryptocurrency scams totaling more than $80 million with a reported median loss of $1,900. Compared to the same period a year earlier, that’s about 12 times the number of reports and nearly 1,000% more in reported losses.

Cryptocurrency scammers blend into the scene. Cryptocurrency enthusiasts tend to congregate online to talk about their shared interest. But reports from defrauded consumers suggest that some sites can raise concerns. Is the author of that post just a friendly person sharing an investment “tip” or is he or she part of a ploy to draw consumers into a scam? Prospective investors also need to take supposed “success stories” from endorsers with a hearty helping of salt. There’s no way to verify they’re telling the truth.

A celebrity’s name is no guarantee of legitimacy. Crypto crooks may try to cover their con by stealing the name of a newsmaker or business leader – for example, by falsely claiming the celebrity will “multiply” the cryptocurrency a consumer sends. Case in point: In just the past six months, people have reportedly sent more than $2 million in cryptocurrency to Elon Musk impersonators.

(Cyber) romance and (crypto) finance can be a combustible combination. Fraudsters have been known to use the artifice of long-distance love to gain a person’s trust only to reel them into a cryptocurrency investment scam. According to the Data Spotlight, about 20% of the money people reported losing through romance scams since October 2020 was sent in the form of cryptocurrency – and many of them thought they were making an investment recommended by their supposed sweetheart.

Younger investors may be at particular risk. Since October 2020, people between 20 and 49 were over five times more likely to report losing money to cryptocurrency investment scams than older consumers. What’s more, those in their 20s and 30s reported losing far more money on investment scams than on any other type of fraud – and more than half of their reported investment scam losses were in cryptocurrency. But that doesn’t mean that consumers over 50 weren’t affected, too. Members of that age group were far less likely to report losing money on cryptocurrency investment scams. However, when they did lose money, their individual losses were higher, with a reported median loss of $3,250.

Even sophisticated business people have been taken in by cryptocurrency investment scams and the Data Spotlight has specific tips on protecting yourself. For more information about cryptocurrency scams, visit ftc.gov/cryptocurrency. If you spot a scam, report it to us at ReportFraud.ftc.gov.
Compliments of the U.S. Federal Trade Commission.
The post U.S. FTC | Cryptocurrency investment scam reports at record level: 5 facts suggest caution first appeared on European American Chamber of Commerce New York [EACCNY] | Your Partner for Transatlantic Business Resources.

What is the blue economy and how is it contributing to the overall economy?
The blue economy encompasses all industries and sectors related to oceans, seas and coasts, whether they are based in the marine environment (e.g. shipping, fisheries, energy generation) or on land (e.g. ports, shipyards, land-based aquaculture and algae production, coastal tourism).
It is a broad, fast-moving segment of our economy, where over the past decade significant steps have been taken to modernise and diversify. Alongside traditional sectors, innovative sectors are evolving and growing – such as ocean renewable energy, blue bio-economy, bio-technology and desalination – thus providing new prospects and creating jobs. The blue economy is also connected to the on-land economy through a web of spin-offs and supply chains.
According to the most recent figures by the 2020 Blue economy report, the EU blue economy directly employed close to 4.5 million people and generated around €650 billion in turnover and €176 billion in gross value added in 2018.
Under a sustainable blue economy, maritime and coastal activities reconcile economic development, improved livelihoods and social inclusion with fighting the climate crisis, protecting biodiversity and ecosystems, using resources responsibly and achieving the zero-pollution ambition.
How can the blue economy contribute to the European Green Deal?
With more sustainable models, the blue economy will use the oceans’ resources to contribute to achieving the goals of the European Green Deal of a more resilient and climate-neutral European economy. This includes:

a 90% reduction of greenhouse gas emissions from maritime transport, which accounts for more than 80% of global trade in terms of volume.

Decarbonising maritime transport (as well as fishing operations) will decrease greenhouse gas emissions, as well as air and water pollution and underwater noise.
Under the Fit for 55 package, the Commission will propose a series of legislative measures to incentivise the deployment of renewable / low carbon fuels and onshore power supply in ports.

minimising the environmental impacts of fishing on marine habitats with measures such as specifications for fishing gear and mesh sizes, closed areas and seasons. The Commission is now preparing a report on the implementation of these measures and will publish a new action plan with the aim of further reconciling fishing – including bottom-contact fishing – with biodiversity goals.
turning blue economy sectors more circular. For the recycling of large ships, the EU has a unique and ambitious set of standards in the Ship Recycling Regulation, that the Commission plans to revise by 2023 to possibly extend its scope and reinforce the existing regime.
expanding offshore renewable energy, which could generate a quarter of the EU’s electricity in 2050. To speed up its development, in 2020 the Commission published a new EU offshore renewable energy strategy that aims to multiply five-fold the capacity for offshore renewable energy by 2030 and 30-fold by 2050.
contributing to the transition towards a sustainable, low-carbon food system in line with the EU farm-to-fork strategy, including through developing and promoting low-impact aquaculture (such as low-trophic, multi-trophic and organic aquaculture). The new strategic guidelines for EU aquaculture set out the vision and an operational path to achieving this transformation. In 2022, the Commission will also table an initiative on algae to support the development of this innovative sector, which has the potential to become a significant source of low-carbon alternative food and feed materials. Moreover, a forthcoming initiatives will set new marketing standards to improve consumer information on the environmental and social sustainability of seafood and its carbon footprint.

developing nature-based solutions to adapt to sea level rise, depollute areas or fight eutrophication.

How can a sustainable blue economy contribute to a green recovery?
Innovative technologies such as big data, artificial intelligence, advanced modelling, sophisticated sensors and autonomous systems are likely to transform the blue economy in the immediate future.
The EU must be at the forefront of these changes and exploit its own strengths. Shipyards need to get ready to produce zero emission vessels. As the current leader in the production of wind, wave and tidal energy and the largest maritime space in the world, the EU is uniquely placed to develop offshore renewable energy.
The EU imports 65% of its seafood, thus there is a real market for more food and feed production from the sea, especially from low-impact aquaculture.
Transitioning to a sustainable blue economy is also about resilience. Maritime and coastal tourism accounts for 60% of the employment in the blue economy. Over half of the EU’s tourist accommodation establishments are located in coastal areas and 30% of overnight stays are at beach resorts.  This sector has suffered severe effects from the pandemic. We must learn from this crisis and rebuild a more resilient system. Following the Covid-19 outbreak, the Communication has adopted a series of initiatives to re-enable safe tourism and pave the way for a more resilient and sustainable sector. The Commission is also preparing a guide on the many funding opportunities available.
A sustainable blue economy can create many attractive jobs. Between 2017 and 2018, employment in marine renewable energy (offshore wind) has increased by 15% and it could triple by 2030. The Commission will support industry and vocational training institutes to bridge the skills gaps and prepare qualified workforce.
How will the EU finance the transition?
Member States and coastal regions should make use of the different tools and funds at their disposal to transition to a sustainable blue economy, notably through the the European Maritime, Fisheries and Aquaculture Fund or recovery funds.
The European Commission and the European Investment Bank will align efforts to reduce pollution in European seas, especially in affected water bodies such as the Mediterranean Sea. Both sides will cooperate on  a comprehensive market study and on building a pipeline of investable projects for pollution avoidance and reduction, such as, biodegradability, recycling and re-use along the entire plastic value chain. On that basis, both sides will consider appropriate solutions to increase access to financing, including through risk reduction facilities, provision of equity or loans, grants, all aimed at incentivizing private and public financiers to provide additional liquidity to such projects.
The European Commission will also cooperate with the European Investment Fund to explore a framework that would facilitate the use of shared management financial instruments for a sustainable blue economy.
Sustainability principles should be mainstreamed into all investment decisions, including corporate ones. The revision of the EU taxonomy is relevant in this respect. In addition, the Commission and the European Investment Bank (EIB) will continue to advocate for sustainable blue economy finance principles with private investors, which will create tangible opportunities for new jobs and businesses. To address the specific needs of blue economy SMEs, the Commission’s BlueInvest Platform provides them with customised support, visibility, access to investors and investment-readiness advice. The BlueInvest equity fund will combine financial contributions from the EU budget with private venture capital to finance blue tech start-ups. 
What will change following this Communication?
Ocean and seas are subject to cumulative impacts from human activities, and those impacts know no borders borders. A system managing each sector independently and allowing sectors to ignore each other is therefore inadequate. We need one single concept – that of sustainability – that must apply across sectors and across borders.
There are several areas of the maritime economy that can benefit from such a coordinated approach:

The space available for maritime activities is limited and solutions therefore need to allow fishing and energy generation, transport and tourism to co-exist and even benefit from each other’s presence. The Blue Forum will allow such dialogue for operators so that they can create synergies, reconcile competitive uses and reduce the impact of activities on habitats while leaving space for nature to run its course undisturbed.
To adapt to the challenges of our time, the EU blue economy needs to be innovative. The Communication proposes to better coordinate data collection and improve forecasting and modelling to allow for better knowledge of oceans dynamics and a better understanding of the impact of activities at sea. The candidate Horizon 2020 Mission on oceans will mobilize all players, including citizens, towards common purposes such as finding solutions to plastic pollution, coastal erosion or biodiversity loss.
EU countries share the seas also with non-EU countries. They need to join forces on common issues that could never be tackled by individual countries. The EU will continue to develop tailored strategies for each European sea basin and extend the same cooperative approach to neighbouring countries that share with the EU a basin, marine living resources and geo-economic features.
Security is essential to every economic activity, but control in the open seas is costly – even more so if each Member State and each authority, from civil protection to navy, has to do it on its own. Sharing information, which is the object of the Common Information Sharing Environment for the maritime domain (CISE), will allow Member States’ authorities to access a multitude of data, carry out common analyses and share human and physical resources (such as vessels and aircrafts).

To facilitate and accelerate the transition towards a sustainable blue economy, the communication announces a series of legislative and voluntary initiatives to be rolled out over the coming years with the support of EU funds. These include strengthening vocational training and education in blue skills to address workforce needs, fostering more resilient and sustainable forms of marine and coastal tourism, facilitating market access for innovative marine products such as algae and improving consumer information on the environmental and social sustainability of seafood and on its carbon footprint. The purpose of the Communication is to lay a foundation on which to build the initiatives of the next few years, including initiatives that are not yet planned. The European Commission will be working closely with the Member States and regions, so that Europe can move ‘as one’ towards sustainability.
Compliments of the European Commission.
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European Commission Executive Vice-President Valdis Dombrovskis, United States Trade Representative Katherine Tai and U.S. Secretary of Commerce Gina M. Raimondo today announced the start of discussions to address global steel and aluminum excess capacity. During a virtual meeting last week, the leaders acknowledged the need for effective solutions that preserve our critical industries, and agreed to chart a path that ends the WTO disputes following the U.S. application of tariffs on imports from the EU under section 232.
Executive Vice-President Dombrovskis, Ambassador Tai, and Secretary Raimondo acknowledged the impact on their industries stemming from global excess capacity driven largely by third parties.  The distortions that result from this excess capacity pose a serious threat to the market-oriented EU and U.S. steel and aluminum industries and the workers in those industries.  They agreed that, as the United States and EU Member States are allies and partners, sharing similar national security interests as democratic, market economies, they can partner to promote high standards, address shared concerns, and hold countries like China that support trade-distorting policies to account.
They agreed to enter into discussions on the mutual resolution of concerns in this area that addresses steel and aluminum excess capacity and the deployment of effective solutions, including appropriate trade measures, to preserve our critical industries.  To ensure the most constructive environment for these joint efforts, they agreed to avoid changes on these issues that negatively affect bilateral trade.   They committed to engaging in these discussions expeditiously to find solutions before the end of the year that will demonstrate how the U.S. and EU can address excess capacity, ensure the long-term viability of our steel and aluminum industries, and strengthen our democratic alliance.
Joint European Union-United States Statement
Compliments of the European Commission.
The post Joint European Union-United States Statement on addressing global steel and aluminum capacity first appeared on European American Chamber of Commerce New York [EACCNY] | Your Partner for Transatlantic Business Resources.