The Commodity Futures Trading Commission (CFTC) and the European Securities and Markets Authority (ESMA) today announced the signing of a new Memorandum of Understanding (MOU) regarding cooperation and the exchange of information with respect to certain registered derivatives clearing organizations established in the United States that are central counterparties (CCPs) recognized by ESMA under the European Market Infrastructure Regulation (EMIR).
Through the MOU, ESMA and the CFTC express their desire for enhanced cooperation as to the larger U.S. CCPs operating in the European Union with provisions that expand upon the collaboration set out in the 2016 CFTC-ESMA MOU related to recognized CCPs. The MOU reflects ESMA’s and the CFTC’s commitment to strengthening their mutual cooperative relationship, which has continued to flourish under the leadership of Chair Steven Maijoor and Chairman Heath P. Tarbert.
“We look forward to building upon our strong relationship with ESMA and embarking upon a cooperative relationship with ESMA’s new CCP Supervisory Committee,” said Suyash Paliwal, Director of the CFTC’s Office of International Affairs. “The deferential approach embodied in this MOU is a major milestone in the years-long engagement between the CFTC and its EU counterparts on the implementation of EMIR as amended.”
“I am pleased to see ESMA entering a phase of closer cooperation with the CFTC,” said Chair of ESMA’s CCP Supervisory Committee Klaus Löber. “This MOU sets out the basis for the enhanced collaboration between our institutions and is an important step towards building the risk-based and outcome-focused supervision of CCPs in accordance with the amended European Market Infrastructure Regulation.”
Compliments of the European Securities and Market Authority.
The post CFTC & ESMA sign enhanced MOU related to certain recognized central couterparties first appeared on European American Chamber of Commerce New York [EACCNY] | Your Partner for Transatlantic Business Resources.

EU-UK relations are changing following Brexit and the deal reached at the end of 2020. Find out what this means for you.
The UK left the EU on 31 January 2020. There was a transition period during which the UK remained part of the Single market and Customs Union to allow for negotiations on the future relations. Following intense negotiations, an agreement on future EU-UK relations was concluded end of December 2020. Although it will be provisionally applied, it will still need to be approved by the Parliament before it can formally enter into force. MEPs are currently scrutinising the text in the specialised parliamentary committees before voting on it during a plenary session.
A number of issues were already covered by the withdrawal agreement, which the EU and the UK agreed at the end of 2019. This agreement on the separation issues deals with the protection of the rights of EU citizens in the UK and UK citizens living in other parts of the EU, the UK’s financial commitments undertaken as a member state, as well as border issues, especially on the Isle of Ireland.
Living and working in the UK or the EU
EU citizens in the UK or UK citizens in an EU member state who were already living there before January 2021 are allowed to continue living and working where they are now provided they registered and were granted settlement permits by the national authorities of the member states or the UK.
For those UK citizens not already living in the EU, their right to live and work in any EU country apart from the Republic of Ireland (as the UK has a separate agreement with them) is not automatically granted and can be subject to restrictions. Also, they no longer have their qualifications automatically recognised in EU countries, which was previously the case.
For UK citizens wanting to visit or stay in the EU for more than 90 days for any reason need to meet the requirements for entry and stay for people from outside the EU. This also applies to UK citizens with a second home in the EU.
People from the EU wanting to move to the UK for a long-term stay or work – meaning more than six months – will need to meet the migration conditions set out by the UK government, including applying for a visa.
Travelling
UK citizens can visit the EU for up to 90 days within any 180-day period without needing a visa.
However, UK citizens can no longer make use of the EU’s fast track passport controls and customs lanes. They also need to have a return ticket and be able to prove they have enough funds for their stay. They also need to have at least six months left on their passport.
EU citizens can visit the UK for up to six months without needing a visa. EU citizens will need to present a valid passport to visit the UK.
Healthcare
EU citizens temporarily staying in the UK still benefit from emergency healthcare based on the European Health Insurance Card. For stays longer than six months, they need to pay a healthcare surcharge.
Pensioners continue to benefit from healthcare where they live. The country paying for their pension will reimburse the country of residence.
Erasmus
The UK has decided to stop participating in the popular Erasmus+ exchange programme and to create its own exchange programme. Therefore EU students will not be able to participate in exchange programme in the UK anymore. However, people from Northern Ireland can continue to take part.
Trade in goods and services
With the agreement, goods exchanged between the UK and EU countries are not subject to tariffs or quotas. However, there are new procedures for moving goods to and from the UK as border controls on the respect of the internal market rules (sanitary, security, social, environmental standard for example) or applicable UK regulation are in place. This means more red tape and additional costs. For example, all imports into the EU are subject to customs formalities while they must also meet all EU standards so they are subject to regulatory checks and controls. This does not apply to goods being moved between Northern Ireland and the EU.
Regarding services, UK companies no longer have the automatic right to offer services across the EU. If they want to continue operating in the EU, they will need to establish themselves here.
Compliments of the European Parliament
The post Brexit deal: how new EU-UK relations will affect you first appeared on European American Chamber of Commerce New York [EACCNY] | Your Partner for Transatlantic Business Resources.

The Commission has announced today the first round of direct equity investment through the new European Innovation Council (EIC) Fund. 42 highly innovative start-ups and small and medium-sized businesses (SMEs) will together receive equity financing of around €178 million to develop and scale up breakthrough innovations in health, circular economy, advanced manufacturing and other areas. Among them, the French company CorWave is the first EU company in which the EIC Fund is investing.
Mariya Gabriel, Commissioner for Innovation, Research, Culture, Education and Youth said: “Europe has many innovative, talented start-ups, but too often these companies remain small or relocate elsewhere. This new form of financing – combining grants and equity – is unique to the European Innovation Council. It will bridge the funding gap for highly innovative companies, unlock additional private investments and enable them scale up in Europe.”
The equity investments, ranging from €500.000 to €15 million per beneficiary, complement the grant financing, which has already been provided through the EIC Accelerator Pilot to enable companies to scale up faster. This is the first time the Commission has made direct equity or quasi-equity investments, namely equity investment blended with a grant, in start-up companies, with ownership stakes expected to range from 10% to 25%.
Under the EIC Accelerator a total of 293 companies have already been selected for funding worth over €563 million in grants since December 2019. Among those, 159 companies have been selected to additionally receive the new equity investments from the EIC Fund. The 42 companies announced today are the first of this group to successfully pass the evaluation and due diligence process. The other 117 companies are in the pipeline to receive investments pending the outcome of the relevant process.
CorWave: first EU company to sign investment agreement with the EIC Fund

The highly innovative French company CorWave was the very first to receive a direct equity investment. CorWave’s mission is to bring a new standard of care to patients with life-threatening heart failure. The €15 million EIC Fund investment has played a critical role by mobilising additional investors to unite behind the French SME, which led to a €35 million of investments in the fourth stage of start-up financing for CorWave.
This sizeable venture will enable CorWave to successfully bring to the market and scale up its innovative medical solution “Left Ventricular Assist Device” (LVAD), which will significantly improve the lives of those with advanced heart failure, reducing by half severe complications and the need for rehospitalisation, while at the same time improving significantly their quality of life. CorWave’s high-growth potential will also translate into high-quality jobs in the EU.
Next steps for beneficiaries
The investment agreements with the other target companies are now being finalised, and will be announced shortly. A few examples of this first round of investments:

Hiber (The Netherlands): an international satellite and communication company that provides global and affordable Internet of Things connectivity;

XSUN (France): a solar aircraft company that designs energy-independent drones to be fully autonomous so they can operate without any human intervention;

GEOWOX LIMITED (Ireland): a technological company that provides automated property valuations, leveraging high-quality open data and machine learning models;

EPI-ENDO PHARMACEUTICALS EHF (Iceland): a pharmaceutical company focused on developing a proprietary portfolio of drugs to address the huge global burden of chronic respiratory diseases.

These first investments are preceded by a thorough evaluation by external experts, a due diligence process overseen by the external practitioners and investors on the EIC Fund Investment Committee, and a final decision by the EIC Fund Board of Directors.
Background
Established in June 2020, the European Innovation Council (EIC) Fund is a breakthrough initiative of the Commission to make direct equity and quasi-equity investments (between €500.000 and €15 million) in the capital of start-ups and SMEs. It is first of its kind in terms of EU intervention in direct equity-type investments. In its current stage, it makes such investments, in combination with grants, as part of blended finance under the EIC Accelerator Pilot. The allocated maximum funding (grants and equity) can reach €17.5 million.
The EIC Fund aims to fill a critical financing gap faced by innovative companies when bringing their technologies from high technology readiness levels to the commercialization stage. The Fund will help to fill this financing gap at the start-up stage where the EU venture capital market still underperforms compared to the global venture capital market. Its main purpose is not to maximise the return on the investments, but to have a high impact by accompanying companies with breakthrough and disruptive technologies in their growth as patient capital investor.
The Fund aims to support equality and gender balance, and to highly contribute to sustainability with a particular focus on health, resilience and the green and digital transitions. Its role has become even more important today, as the coronavirus crisis had a very strong impact on many SMEs in the EU, including many innovative startups.
Compliments of the European Commission.
The post European Innovation Council Fund: first equity investments of €178 million in breakthrough innovations first appeared on European American Chamber of Commerce New York [EACCNY] | Your Partner for Transatlantic Business Resources.

Today, the European Commission has granted a conditional marketing authorisation (CMA) for the COVID‑19 vaccine developed by Moderna, the second COVID-19 vaccine authorised in the EU. This authorisation follows a positive scientific recommendation based on a thorough assessment of the safety, effectiveness and quality of the vaccine by the European Medicines Agency (EMA) and is endorsed by the Member States.
The President of the European Commission, Ursula von der Leyen, said: “We are providing more COVID-19 vaccines for Europeans. With the Moderna vaccine, the second one now authorised in the EU, we will have a further 160 million doses. And more vaccines will come. Europe has secured up to two billion doses of potential COVID-19 vaccines. We’ll have more than enough safe and effective vaccines for protecting all Europeans.”
Stella Kyriakides, Commissioner for Health and Food Safety, said: “We are all in this together and united. This is why we have negotiated the broadest vaccine portfolio in the world for all our Member States. Today we are authorising a second safe and effective vaccine from Moderna, which together with BioNTech-Pfizer, will ensure that 460 million doses will be rolled out with increasing speed in the EU, and more will come. Member States have to ensure that the pace of vaccinations follows suit. Our efforts will not stop until vaccines are available for everyone in the EU.”
Moderna submitted on 30 November 2020 an application for marketing authorisation to EMA, which had already started a rolling review of the data in November. Thanks to this rolling review, EMA has been assessing the quality, safety and efficacy of the vaccine as data has become available. EMA’s human medicines committee (CHMP) has thoroughly assessed the data and recommended by consensus that a formal conditional marketing authorisation is granted. A conditional marketing authorisation is one of EU’s regulatory mechanisms for facilitating early access to medicines that fulfil an unmet medical need, including in emergency situations such as the current pandemic.
On the basis of EMA’s positive opinion, the Commission has verified all the elements supporting the marketing authorisation and consulted Member States before granting the conditional market authorisation.
The Moderna vaccine is based on messenger RNA (mRNA). mRNA plays a fundamental role in biology, transferring instructions from DNA to the cells’ protein making machinery. In an mRNA vaccine, these instructions produce harmless fragments of the virus, which the human body uses to build an immune response to prevent or fight disease. When a person is given the vaccine, their cells will read the genetic instructions and produce a spike protein, a protein on the outer surface of the virus which it uses to enter the body’s cells and cause disease. The person’s immune system will then treat this protein as foreign and produce natural defences — antibodies and T cells — against it.
Next steps
Moderna, with whom the Commission signed a contract on 25 November, will deliver the total amount of 160 million doses between the first and the third quarters of 2021. It will add to the 300 million doses of the vaccine distributed by BioNTech/Pfizer, the first vaccine to have been authorised in the EU on 21 December 2020.
Background
A conditional marketing authorisation (CMA) is an authorisation of medicines on the basis of less complete data required for a normal marketing authorisation. Such a CMA may be considered if the benefit of a medicine’s immediate availability to patients clearly outweighs the risk linked to the fact that not all the data are yet available. However, once a CMA has been granted, companies must provide within certain deadlines further data including from ongoing or new studies to confirm that the benefits continue to outweigh the risks.
Moderna submitted on 30 November 2020 an application for a CMA for their vaccine to EMA. EMA has already been assessing data on the vaccine’s safety, effectiveness and quality and results from laboratory studies and clinical trials in the context of a rolling review. This rolling review and the assessment of the CMA application allowed EMA to quickly conclude on the safety, effectiveness and quality of the vaccine. EMA recommended granting the conditional marketing authorisation as the benefits of the vaccine outweigh its risks.
The European Commission has verified whether all necessary elements – scientific justifications, product information, educational material to healthcare professionals, labelling, obligations to marketing authorisation holders, conditions for use, etc. – were clear and sound. The Commission also consulted the Member States, as they are responsible for the vaccines marketing and the use of the product in their countries. Following the Member States’ endorsement and on the basis of its own analysis, the Commission decided to grant the conditional market authorisation.
Compliments of the European Commission.
The post European Commission authorises second safe and effective vaccine against COVID-19 first appeared on European American Chamber of Commerce New York [EACCNY] | Your Partner for Transatlantic Business Resources.

A salient feature of the coronavirus (COVID-19) pandemic has been the sharp and deep decline in mobility, which has caused a slump in tourism, trade in travel services and consumption by non-residents. Lockdowns and social distancing measures led to strong declines in otherwise stable services consumption. This box takes stock of developments in the tourism sector, discusses how the impact of these developments on consumption has varied across countries and reviews the near-term prospects for a recovery in tourism and travel.
The slump in tourism and travel, reflecting restrictions and uncertainties related to people’s movement across borders (e.g. owing to quarantine measures), led to a collapse in consumption by non-residents. The effects of this collapse can be seen by looking at the difference between domestic consumption and national consumption (see panel (a) of Chart A). The former includes consumption of non-residents, whereas the latter only includes that of residents.[1] For example, in Italy and Spain, domestic consumption by non-residents plummeted by more than 90% year on year in the second quarter of 2020, and similar declines were recorded in consumption expenditure of residents of these countries abroad, significantly exceeding the fall in national consumption.
Because of the decline in cross-border travel, consumption gaps – the excess of domestic consumption over national consumption owing to net expenditures by non-residents – almost closed in the second quarter of 2020 (see panel (b) of Chart A).[2] In other words, tourism has worked as a shock amplification channel during the COVID-19 pandemic in countries which are net exporters of travel services (i.e. countries which receive a lot of tourists, such as Spain, Greece and Portugal), as they experienced a sharp contraction of domestic private consumption, and as a shock cushioning channel in countries which are net importers of travel services (e.g. Germany).[3] More specifically, in net creditors of travel services, the collapse of non-resident consumption expenditure caused domestic consumption to fall by more than national consumption, whereas the opposite occurred in countries which were net debtors of travel services before the onset of the COVID-19 pandemic. This pattern is also reflected in the sharp deterioration of the travel trade balance of the countries which are net exporters of travel services and in the improvement of the balance of net importers (see panel (a) of Chart A). Available data for the third quarter of 2020 show a partial and incomplete return of consumption gaps to the levels seen before the pandemic.

Chart A

National and domestic private consumption expenditure (PCE) and trade in travel services
(panel (a): year-on-year changes as a percentage (left-hand scale) and as a share of GDP (right-hand scale) in the second quarter of 2020; panel (b): share of GDP)

Sources: Eurostat and ECB staff calculations.Notes: Euro area represents the euro area aggregate. In panel (a) the trade balance in travel services is shown as a share of GDP. In panel (b) PCE gaps are computed as the difference between domestic PCE and national PCE, which corresponds to the net balance of foreign residents’ expenditure domestically minus domestic residents’ expenditure abroad. In panel (b) the latest observations are for the third quarter of 2020, with the exception of Greece. For the euro area the third quarter of 2020 has been estimated based on partially available information for euro area countries, which does not include data for Greece and Luxembourg.

A partial rebound notwithstanding, the data show that the foreign tourism sector remained depressed in the third quarter of 2020. Data on tourist arrivals continued to show significantly low figures for foreign arrivals when compared with the situation before the outbreak of COVID-19 (see panel (b) of Chart B). By contrast, domestic tourism remained relatively resilient and was able to partially compensate for the loss of foreign tourism, despite remaining below the levels seen in 2019. During the summer, short-haul destinations were more in demand and several governments launched promotional initiatives.[4] However, the latest available data suggest a fragile and incomplete recovery. In the euro area, tourist arrivals were less than two-thirds of the levels seen a year earlier. Tourism in countries relying on foreign arrivals, such as Greece and Portugal (see panel (a) of Chart B), still remains far below normal levels. Likewise, turnover in restaurants, and less so in accommodation, recovered but still stood at very low levels, supported by domestic tourists and locals.

Chart B
Tourist arrivals and services turnover
(panel (a): percentage of total; panel (b): ratio relative to the same quarter in the previous year)

Source: Eurostat.Notes: Owing to data availability, the ratios for tourist arrivals refer to August and September for Greece. Ratios for food and accommodation services turnover are not available for Greece or Italy.

Following the widespread resurgence of COVID-19 cases, since October 2020 most euro area countries have been reimposing restrictions. Visitors are currently subject to testing or quarantine in most countries, and entry for visitors from non-EU countries is only allowed for countries considered safe.[5] In most euro area countries, governments reimposed curfews and closed tourist attractions and recreational facilities such as museums, theatres, bars and restaurants. The reintroduction of travel restrictions since October will likely imply that the substitution of foreign tourism with domestic tourism will continue to affect the dynamics of tourism services in the near term. The latest restrictions may also alter the geographical impact of the crisis on the sector, as winter tourism destinations will be more severely affected this time.
Forward-looking indicators point to a renewed deterioration of the tourism sector as restrictions are reintroduced (see Chart C). Owing to travel bans, restrictions and renewed lockdown measures (shown by the green line), travel decreased after the summer and confidence effects are weighing strongly on bookings. This is shown by a reversal in the recovery of flight capacity (red line) which occurred across euro area countries. According to the latest data, flight capacity currently stands at about 25% of pre-COVID-19 levels. Forward-looking indicators such as PMI new orders in the tourism and recreation sectors declined again in November, staying in contractionary territory. Confidence in the accommodation industry also remains depressed and well below its historical average, as suggested by the respective European Commission confidence indicator.

Chart C
Latest developments in tourism
(left-hand scale: standardised index; right-hand scale: percentage relative to the same period in the previous year)

Sources: Markit, HAVER, European Commission, OAG, Eurostat and Oxford COVID-19 Government Response Tracker.Notes: The PMI is for the EU. Accommodation is measured by the European confidence indicator. The data on flights are for Germany, Spain, France and Italy only. The stringency index is an average across euro area countries weighted by the share of tourist arrivals in 2019. Complements (100-value, where 100 is maximum stringency) of the stringency index are reported so that an increase in the series corresponds to easing and a decrease to higher stringency.

Compliments of the European Central Bank.
The post ECB | Developments in the tourism sector during the COVID-19 pandemic first appeared on European American Chamber of Commerce New York [EACCNY] | Your Partner for Transatlantic Business Resources.

1 January 2021 |

Assets (EUR millions)
Balance
Difference compared with last week due to
i)transactions
ii)quarter-end adjustments

Totals/sub-totals may not add up, due to rounding

i)
ii)

1
Gold and gold receivables
536,542
0
−22,739

2
Claims on non-euro area residents denominated in foreign currency
347,179
1,313
−10,877

2.1
Receivables from the IMF
85,379
0
−1,700

2.2
Balances with banks and security investments, external loans and other external assets
261,800
1,314
−9,178

3
Claims on euro area residents denominated in foreign currency
23,437
−373
−726

4
Claims on non-euro area residents denominated in euro
14,337
1,375
−4

4.1
Balances with banks, security investments and loans
14,337
1,375
−4

4.2
Claims arising from the credit facility under ERM II
0
0
0

5
Lending to euro area credit institutions related to monetary policy operations denominated in euro
1,793,194
355
0

5.1
Main refinancing operations
468
206
0

5.2
Longer-term refinancing operations
1,792,574
0
0

5.3
Fine-tuning reverse operations
0
0
0

5.4
Structural reverse operations
0
0
0

5.5
Marginal lending facility
152
149
0

5.6
Credits related to margin calls
0
0
0

6
Other claims on euro area credit institutions denominated in euro
25,328
−6,592
0

7
Securities of euro area residents denominated in euro
3,890,916
−820
−9,126

7.1
Securities held for monetary policy purposes
3,694,642
−819
−9,397

7.2
Other securities
196,274
−1
271

8
General government debt denominated in euro
22,676
−2
−55

9
Other assets
325,715
6,558
6,374

Total assets
6,979,324
1,816
−37,152

Liabilities (EUR millions)
Balance
Difference compared with last week due to
i)transactions
ii)quarter-end adjustments

Totals/sub-totals may not add up, due to rounding

Compliments of the European Central Bank.
The post ECB | Consolidated financial statement of the Eurosystem first appeared on European American Chamber of Commerce New York [EACCNY] | Your Partner for Transatlantic Business Resources.

On 22 December 2020, the European Commission confirmed its plan for bond issuances in 2021 under its existing borrowing programmes. These include the SURE instrument to support short-term employment schemes in the EU Member States, the European Financial Stabilisation Mechanism (EFSM) to refinance debt to two EU countries, as well as the Macro-Financial Assistance (MFA) to help non-EU countries address the coronavirus crisis. In total, the EU is going to raise at least €62.9 billion under these three programmes. Of this, between €30 and €35 billion are expected to be raised in the first quarter of the year and between €25 billion and €30 billion in the second quarter.
In addition, the Commission will continue preparations for the first issuance under NextGenerationEU, the temporary recovery instrument. The Commission is due to start borrowing to finance the recovery under this tool as soon the legislative process is completed, with the horizon of mid-2021.For this to be legally possible, EU Member States need to ratify the Own Resources Decision in line with their constitutional requirements
Commissioner for Budget and Administration, Johannes Hahn said: “Between mid-October and mid-November, the Commission raised nearly €40 billion under SURE, while in parallel taking forward the rest of our operations. Our debut as a high-volume issuer capable of ensuring favourable conditions and passing them on to our Member States has been a vote of confidence to the EU as an issuer and a borrower. This has made us confident for the near future, when we will be rising to the challenge of successfully completing the implementation of SURE and launching NextGenerationEU.”
The borrowing and lending operations currently foreseen by the European Commission for the first half of 2021 include:

€50.8 billion under SURE

The Commission proposed the SURE programme “Support to mitigate Unemployment Risks in an Emergency” – in April 2020. By September 2020, the decision-making process was completed in a record-speed. So far, the Commission has raised a total of €39.5 billion via three transactions under SURE. The Commission has already disbursed this amount to 15 Member States, directly passing them the favourable funding conditions obtained.
In 2021, the Commission will proceed with further issuances under the SURE programme. These will continue to be issued under the social bond label in the form of large and liquid benchmarks. The Commission may also consider taps of the outstanding ones.
The Council has already approved a total of €90.3 billion in financial support to 18 Member States and the Commission’s current funding plans foresee issuances of €50.8, to complement the €39.5 billion already placed on the market. The respective disbursements will follow accordingly.
The Commission may proceed with further issuances under the EU SURE programme in 2021, up to the maximum available ceiling of €100 billion, depending on Member States’ demand.

€9.75 billion under the European Financial Stabilisation Mechanism (EFSM)

The EFSM was created for the European Commission to provide financial assistance to any EU country experiencing or threatened by severe financial difficulties. Under the EFSM, the Commission provided assistance, conditional on the implementation of reforms, to Ireland and Portugal between 2011 and 2014, and to provide short-term bridge loans to Greece in July 2015.
To extend maturities of the support provided to Ireland and Portugal, the Commission will refinance €9.75 billion of maturing bonds in the first half of 2021. The Commission currently has €46.8 billion of outstanding borrowing under EFSM.

€2.35 billion under the Macro-Financial Assistance programme (MFA)

The MFA is part of the EU’s wider engagement with neighbouring countries and intended as an exceptional EU crisis response instrument. It is available to the EU’s neighbouring countries experiencing balance-of-payments problems.
In 2020, the EU agreed to provide further €3 billion to ten enlargement and neighbourhood partners to help them to limit the economic fallout of the coronavirus pandemic. In 2020, the Commission already started providing funding under this package.
Further €2.35 billion will follow in 2021, both under the standard MFA assistance programme and the COVID-19 targeted issuance.
The outstanding borrowing under the MFA currently stands at €5.8 billion.
Background
The SURE and NextGenerationEU instruments are part of the European Commission response to the coronavirus and its consequences.
SURE is designed to assist EU Member States in addressing sudden increases in public expenditure to preserve employment. The funds raised under SURE are aimed at helping to 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, including for the self-employed. The loans are underpinned by a system of voluntary guarantees from Member States committed to the EU.
The bonds issued 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.
*The European Financial Stabilisation Mechanism (EFSM) was created for the European Commission to provide financial assistance to any EU country experiencing or threatened by severe financial difficulties.
The EFSM was used to provide financial assistance conditional on the implementation of reforms to Ireland and Portugal between 2011 and 2014, and to provide short-term bridge loans to Greece in July 2015.
Today, euro area countries in need of financial assistance are expected to turn to the European Stability Mechanism (ESM), a permanent intergovernmental institution. The ESM is set up by and for euro area countries.
The EFSM, however, remains in place and can be used if the need arises.
Macro-financial assistance (MFA) is a form of financial aid extended by the EU to partner countries experiencing a balance of payments crisis. It takes the form of medium/long-term loans or grants, or a combination of these, and is only available to countries benefiting from a disbursing International Monetary Fund (IMF) programme.
MFA is designed for countries geographically, economically and politically close to the EU. These include candidate and potential candidate countries, countries bordering the EU covered by the European Neighbourhood Policy (ENP) and, in certain circumstances, other third countries.
MFA is exceptional in nature and is mobilised on a case-by-case basis to help countries dealing with serious balance-of-payments difficulties. Its objective is to restore a sustainable external financial situation, while encouraging economic adjustments and structural reforms. MFA is intended strictly as a complement to IMF financing.
Compliments of the European Commission.
The post European Commission to issue €62.9 billion worth bonds under existing programmes in 2021 first appeared on European American Chamber of Commerce New York [EACCNY] | Your Partner for Transatlantic Business Resources.

NextGenerationEU is a €750 billion temporary recovery instrument to help repair the immediate economic and social damage brought about by the coronavirus pandemic. Post-COVID-19 Europe will be greener, more digital, more resilient and better fit for the current and forthcoming challenges.

The Recovery and Resilience Facility: the centrepiece of NextGenerationEU with €672.5 billion in loans and grants available to support reforms and investments undertaken by EU countries. The aim is to mitigate the economic and social impact of the coronavirus pandemic and make European economies and societies more sustainable, resilient and better prepared for the challenges and opportunities of the green and digital transitions. Member States are working on their recovery and resilience plans to access the funds under the Recovery and Resilience Facility.
Recovery Assistance for Cohesion and the Territories of Europe (REACT-EU): NextGenerationEU also includes €47.5 billion for REACT-EU. It is a new initiative that continues and extends the crisis response and crisis repair measures delivered through the Coronavirus Response Investment Initiative and the Coronavirus Response Investment Initiative Plus. It will contribute to a green, digital and resilient recovery of the economy. The funds will be made available to

the European Regional Development Fund (ERDF)

the European Social Fund (ESF)

the European Fund for Aid to the Most Deprived (FEAD)

These additional funds will be provided in 2021-2022 from NextGenerationEU and in 2020 through a targeted revision to the current financial framework.

NextGenerationEU will also bring additional money to other European programmes or funds such as Horizon2020, InvestEU, rural development or the Just Transition Fund (JTF).

NextGenerationEU breakdown

Recovery and Resilience Facility (RRF)
€672.5 billion

of which, loans
€360 billion

of which, grants
€312.5 billion

ReactEU
€47.5 billion

Horizon Europe
€5 billion

InvestEU
€5.6 billion

Rural Development
€7.5 billion

Just Transition Funds (JTF)
€10 billion

RescEU
€1.9 billion

TOTAL
€750 billion

Source: Conclusions of the European Council of 21 July 2020
On this note, keep a eye out for programs hosted by the EACCNY on this topic. There will be much to discuss! Our upcoming events can be found here.

Compliments of the European Commission
The post Recovery Plan for Europe: NextGenerationEU first appeared on European American Chamber of Commerce New York [EACCNY] | Your Partner for Transatlantic Business Resources.

December 28, 2020 | By HR/VP Josep Borell
Especially during the Covid-19 “infodemic”, we have seen how widespread and how damaging foreign interference and disinformation can be for our security, our democracy and our societies. Addressing disinformation is an urgent necessity.
In a recent blog post, I discussed the threats that our democracies are facing in the cyberspace. I have also spoken often about the on-going ‘battles of narratives’. Countries and political leaders are trying to explain their positions and to portray themselves in a favourable light. This is a normal way of acting: in democracies, political leaders have an obligation to communicate about objectives and values. This is why the EU put a lot of effort in explaining our policy approaches and the thinking behind our actions and proposals.
Beyond legitimate “public diplomacy”
However, some go much further than conducting legitimate ‘public diplomacy’. They present their way of addressing global challenges as the only effective one, while attempting to discredit others. Some foreign actors, be they state or non-state, even engage in disinformation campaigns, deliberately spreading false or misleading information. They do so to weaken us and to harm our ability to respond to crisis effectively.
“Some foreign actors, be they state or non-state, even engage in disinformation campaigns, deliberately spreading false or misleading information.”
For example, the Western vaccine developers are openly mocked on multi-lingual Russian state-controlled media, which has in some cases led to as absurd claims that vaccines will turn people into monkeys. Such narratives are apparently directed at countries where Russia wants to sell its own vaccine, Sputnik V. In the current pandemic, any attempt to instigate such unfounded doubts threatens public health. Terrorist organisations, such as Da’esh, have also used the confusion in the Corona-situation to spread their own propaganda.
Disinformation has been with us for a long time
This is not a new challenge: disinformation has been with us for a long time. However, with the possibilities offered by the Internet, it now spreads faster than ever, reaching citizens in their homes every day. Some state actors, like Russia and China, are actively involved in these activities, trying to undermine and delegitimise our democratic systems and the values of freedom, pluralism and checks and balances they are built upon.
“The EU has been working on tackling disinformation(link is external) for many years now and the EEAS has been a pioneer in monitoring pro-Kremlin disinformation.”
The EU has been working on tackling disinformation(link is external) for many years now. The European External Actions Service (EEAS) has been a pioneer in monitoring pro-Kremlin disinformation, and has then expanded its focus and toolbox. Today, EEAS taskforces focus on three different regions: the East, Southern Neighbourhood and the Western Balkans. We have recently published our 5th Special Report on COVID-19 disinformation, which shows again how much these activities can cause considerable damage during a global health crisis.
The intentional spread of false or misleading information is only part of the challenge(link is external). During the pandemic, the fight against mis- and disinformation has been also used by authoritarian regimes as a pretext to limit fundamental rights and especially freedom of expression and freedom of the media.
“We have seen attempts during the pandemic to use the fight against mis- and disinformation as a pretext to limit fundamental rights and freedoms.”
Measures range from the expulsion of foreign correspondents to online harassment and in some cases even threatening physical harm. We cannot accept this: freedom of speech and media freedom are a vital pillar of our democracies and we rely also on independent reporting from around the world. If the work of journalists is restricted, we need to take a strong stance.
The EU will protect these principles and respond effectively to disinformation. We often talk about silos that inhibit an effective approach to tackling problems in Europe. In the field of disinformation, we are working every day to increase cooperation across different EU Institutions and member states and develop the EU’s Rapid Alert System (RAS) against disinformation. A network of officials in the EU institutions and the EU member states that are dealing with disinformation related issues to enable common situational awareness and threat assessment and to strengthen coordination with researchers, civil society organisations and our international partners. 
Thanks to the cooperation with our international partners like the G7 and NATO, we can track also global trends and prepare for them. Fact-checkers, journalists, NGOs and think tanks are also contributing immensely to curbing the spread of disinformation.
On 2 December, the European Commission presented the European Democracy Action Plan, focussing on election integrity, media pluralism and tackling disinformation. In all of this, we must use a “whole-of-society” response, including civil society, media, academia and private sector (most importantly online platforms and advertisers) to protect our democracies from foreign interference.
We must also increase international cooperation. Europe is not an island: there are no borders in cyberspace. Our attempts to protect ourselves from these threats internally, risk being undermined by manipulative interference launched from countries with weaker regulatory and monitoring capacities.
“We know that we must increase international cooperation.”
The EU is offering technical support to authorities and civil society all over the world to build the capacities and oversight that we are developing inside the EU. We are providing assistance for election-related matters, for example helping others monitor online electoral campaigns and promoting initiatives on digital media literacy. The EU is also implementing a project to address COVID-19 disinformation in African countries and the Middle East. We are building partnerships with fact-checkers across Eastern Partnership countries and the Western Balkans, and we keep supporting independent journalism via the European Endowment for Democracy(link is external) in our neighbourhood and beyond.
As the world’s largest trade bloc, the EU’s normative and regulatory power extends globally. The rules and responses that we put in place within Europe to deal with interference in our democratic life and elections will play an important role in setting global standards. This is especially true for the Digital Services Act (DSA) and Digital Markets Act (DMA), proposed by the European Commission on 15 December 2020. In the fight against disinformation and foreign interference, an appropriate and transparent risk management by large platforms is a crucial step to curbing the spread of false or misleading information and safeguarding civic discourse from manipulative behaviour. In full respect of fundamental rights and freedoms, the DSA and DMA would provide the EU with necessary instruments for a better accountability, transparency and auditability of platforms’ actions.
“The Digital Services Act (DSA) and Digital Markets Act (DMA) package will bring us closer to better accountability, transparency and auditability of platforms’ actions.”
We still need to do more in the area of disinformation to prevent our adversaries to employ low-cost, low-risk and high-reward tactics to attack our societies and democracies. We must ensure that actors who intentionally disrupt and divide our societies with manipulative tactics will face appropriate consequences. Spreading disinformation must come at a price.
Compliments of the European External Action Service.
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