Together with our members we are creating a Video series of first-hand accounts of the Pandemic’s impact, both personally & professionally.
We invite you to join us today for a first-hand look at the impact of the global shutdown following the Coronavirus (COVID-19) outbreak – Today we are featuring Celia Belline, CEO, CILcare a EACCNY member.The questions we asked our members for this series are:1) What are some challenges you, personally and your organization have faced?2) What are some of the most surprising (positive, innovative) responses/changes you have witnessed?3) How will this experience change us going forward, as a society and in terms of how we do business?

EACCNY has its finger on the pulse of how this worldwide pandemic is effecting companies and organizations on both sides of the Atlantic. EACC is where Americans & Europeans connect to do business.
Stay tuned for more on this series! We hope you enjoy these short vignettes our members and friends of the EACC created to share their experience.

May 20, 2020 |
The EU is adapting certain rules for different transport sectors to help companies and authorities cope in the extraordinary circumstances created by the coronavirus crisis. Today, the Council adopted temporary measures enabling the extension of the validity of certain certificates and licences in road, rail and waterborne transport, and relaxing the rules on charging ships for the use of port infrastructures.
Enabling the extension of the validity of licences and certificates will provide the flexibility and legal certainty needed to maintain our supply chains and ensure continued mobility by road, rail, sea and inland waterways, while safeguarding safety and security. The possibility of waiving port infrastructure charges will help mitigate the serious negative impact of the crisis on the shipping sector. – Oleg Butković, Croatian Minister for the Sea, Transport and Infrastructure, President of the Council
The regulation enabling the extension of the validity of certificates and licences will support those transport operators, individuals and national administrations that, owing to the coronavirus restrictions, are having difficulties fulfilling certain administrative formalities before the expiry of the relevant deadlines. This applies for instance to driving licences, roadworthiness tests for motor vehicles and boat-masters’ certificates.
Certain periodic checks in the road, rail, inland navigation and shipping sectors will also be postponed temporarily, as they may not be feasible in current circumstances.
The text takes into account the fact that, given the differences in the spread of the pandemic throughout Europe, some member states are able to continue to deliver specific licences or certificates, while others find it difficult or impossible to do so. However, even if a country continues to issue licences itself, it will need to accept licences originating in another member state which has used the possibility of extending their validity. This will help ensure the smooth functioning of the internal market and continued cross-border activities.
The amendment to the port services regulation will contribute to the financial sustainability of ship operators in the context of the pandemic by providing flexibility to the existing rule that requires member states to ensure that a port infrastructure charge is levied. The amendment will give ports the possibility to waive, suspend, reduce or defer the charges for port users due between 1 March 2020 and 31 October 2020.
The Council’s vote on the two regulations was taken using a written procedure, which was concluded today. The European Parliament voted on 15 May 2020.
Both legal acts will enter into force the day after they are published in the EU Official Journal, which is expected to take place next week.
The legislative process is still ongoing for the other two proposals in the transport emergency package presented by the Commission on 29 April 2020, which concern aviation and the fourth railway package.
• Regulation laying down specific and temporary measures in view of COVID-19 outbreak and concerning the validity of certain certificates, licences and authorisations and the postponement of certain periodic checks and training in certain areas of transport legislation – full text
• Regulation amending regulation 2017/352, so as to enable managing bodies or competent authorities to provide flexibility in respect of the levying of port infrastructure charges in the context of the COVID-19 outbreak – full text
• COVID-19 coronavirus outbreak and the EU’s response (background information)
• Travel and transportation during the coronavirus pandemic
Compliments of the European Council.

May 22, 2020 |
External communication
Communication in relation to the German Federal Constitutional Court ruling of 5 May 2020
On 5 May 2020 the ECB issued a press release indicating that the Governing Council had taken note of the judgement issued by the German Federal Constitutional Court earlier that day regarding the public sector purchase programme (PSPP), on which it had received a preliminary briefing by the President of the Deutsche Bundesbank and by the legal department of the ECB, and remained fully committed to doing everything necessary within its mandate to meet the ECB’s statutory objective of maintaining price stability.
Market operations
Guideline amending Guideline ECB/2014/31 on additional temporary measures relating to Eurosystem refinancing operations and eligibility of collateral
On 7 May 2020 the Governing Council adopted Guideline ECB/2020/29 amending Guideline ECB/2014/31 on additional temporary measures relating to Eurosystem refinancing operations and eligibility of collateral. This amending guideline implements the collateral easing measures decided by the Governing Council on 22 April 2020 in response to the coronavirus (COVID-19) pandemic. The guideline is available on the ECB’s website.
Ad hoc assessment of two new non-regulated markets
On 14 May 2020 the Governing Council decided to add the non-regulated Alternative Fixed-Income Market in Spain and the First North Market in Lithuania to the list of accepted non-regulated markets for assets eligible as collateral for Eurosystem monetary policy operations, following a positive assessment of their compliance with the criteria defined in the General Documentation. The complete list of accepted non-regulated markets is available on the ECB’s website.
Expansion of additional credit claim frameworks in response to the COVID-19 pandemic
On 15 May 2020 the Governing Council approved changes to the temporary additional credit claim (ACC) frameworks of six national central banks (NCBs), upon request of the respective NCBs. The proposed extensions primarily cover the acceptance of one new ACC framework and ACCs benefiting from the new guarantee schemes adopted in a number of jurisdictions in response to the COVID-19 pandemic, together with specific risk control frameworks to address deviations from the requirements applicable to guarantees under the General Documentation, as well as further changes that widen the scope of accepted assets and in-house credit assessment systems for some of the six NCBs. The ACC frameworks were introduced in 2011 to allow Eurosystem NCBs to temporarily accept as collateral certain credit claims that are not compliant with the eligibility rules and/or credit quality standards established in the General Documentation. The collateral easing package adopted by the Governing Council on 7 April 2020 introduced the possibility of expanding these frameworks further. The acceptance of these ACC frameworks is subject to prior approval by the Governing Council. More detailed information on the ACC frameworks is available on the ECB’s website.
Financial stability and supervision
Financial Stability Review May 2020
On 20 May 2020 the Governing Council authorised the publication of the “Financial Stability Review – May 2020”. This issue assesses how the financial system has functioned so far during the COVID-19 pandemic and considers the financial stability implications of its potential economic after-effects, taking into account the financial vulnerabilities identified before the pandemic, including those related to the functioning of financial markets, debt sustainability, bank profitability and the non-bank financial sector. The Review also sets out policy considerations for both the near term and the medium term with a view to promoting awareness of systemic risks among policymakers, the financial industry and the public at large. This issue also contains two special feature articles. The first is dedicated to trends in residential real estate lending standards and their implications for financial stability, and the second examines derivatives-related liquidity risk facing investment funds. The Review will be published on the ECB’s website on 26 May 2020.
Market infrastructure and payments
Identification of a new systemically important payment system
On 4 May 2020 the Governing Council adopted Decision ECB/2020/26 on the identification of MASTERCARD CLEARING MANAGEMENT SYSTEM as a systemically important payment system pursuant to Regulation (EU) No 795/2014 on oversight requirements for systemically important payment systems. This identification is the outcome of an exercise to verify that the operator fulfils a number of objective criteria that are set out in the Decision, which is available on the ECB’s website.
TARGET Annual Report 2019
On 14 May 2020 the Governing Council took note of the TARGET Annual Report 2019, which was subsequently published on the ECB’s website. The report provides information on TARGET2 traffic, its performance and the main developments in 2019. It also includes seven boxes which provide detailed information on topics of particular relevance in 2019, namely the evolution of traffic in TARGET2, a survey on TARGET2 activity, liquidity distribution in TARGET2, the treatment of a participant in resolution, end point security, detection of fraudulent payments and a status update on the TARGET2/T2S consolidation project and future real-time gross settlement services.
Advice on legislation
ECB Opinion on a proposal for a regulation on the establishment of a European instrument for temporary support to mitigate unemployment risks in an emergency (SURE) following the COVID-19 outbreak
On 8 May 2020 the Governing Council adopted Opinion CON/2020/14 on its own initiative.
ECB Opinion on amendments to Latvian national security, emergency situation and mobilisation laws
On 11 May 2020 the Governing Council adopted Opinion CON/2020/15 at the request of the Ministry of Finance of the Republic of Latvia.
ECB Opinion on amendments to the Union prudential framework in response to the COVID-19 pandemic
On 20 May 2020 the Governing Council adopted Opinion CON/2020/16 at the request of the Council of the European Union.
Corporate governance
Schedules for the meetings of the Governing Council and the General Council of the ECB in 2021
On 29 April 2020 the Governing Council approved its meeting schedule for 2021. The General Council also approved its meeting schedule for that year. The schedules are available on the ECB’s website.
Appointment of two members of the Market Infrastructure Board
On 4 May 2020 the Governing Council appointed Mr Giandomenico Scarpelli, Head of the Payment Systems Directorate at the Banca d’Italia, as a Eurosystem national central bank (NCB) member of the Market Infrastructure Board and Ms Christina Wejshammar, Head of the Payments Department at Sveriges Riksbank, as a non-Eurosystem NCB member of the Board. These appointments were made with immediate effect until 31 May 2022 so as to coincide with the mandates of the other Board members who had been appointed or reappointed for 36 months from 1 June 2019.
Joint Eurosystem procurement legal framework
On 4 May 2020 the Governing Council took note of the 2019 annual report of the Eurosystem Procurement Coordination Office (EPCO) and approved the 2020 update of the EPCO procurement plan. On the same day, the Governing Council also adopted Decision ECB/2020/27 amending Decision ECB/2008/17 laying down the framework for joint Eurosystem procurement. The amending legal act, which takes stock of the positive experience with joint procurement of goods and services and the permanent nature of EPCO as decided by the Governing Council on 26 April 2019, caters for enlarged participation possibilities and more operational flexibility in the daily operations. The decision is available on the ECB’s website.
International and European cooperation
19th annual review of the international role of the euro
On 14 May 2020 the Governing Council approved the 19th annual review of the international role of the euro and authorised its publication. In line with the biennial cycle for publication of this report series decided on in 2016, this year’s release is an interim version without special features. It does, however, contain one analytical box on the role of the euro in global green bond markets. The report presents a concise overview of developments in the use of the euro by non-euro area residents and provides updated statistical information on the main indicators of the euro’s international status considered to be of interest to the general public. The report is scheduled to be published on the ECB’s website on 15 June 2020.
Banking supervision
Compliance with EBA Guidelines on harmonised definitions and templates for funding plans
On 30 April 2020 the Governing Council did not object to a proposal by the Supervisory Board to notify the European Banking Authority (EBA) that, for the significant institutions under its direct supervision, the ECB will comply with the EBA Guidelines on harmonised definitions and templates for funding plans of credit institutions under Recommendation A4 of ESRB/2012/2 (EBA/GL/2019/05) from 31 December 2020, the date on which they become applicable. The Guidelines enhance the granularity of the reported data points and thereby increase comparability, allowing for a more thorough assessment of banks’ funding plans.
Revised Supervisory Review and Evaluation Process in 2020
On 12 May 2020 the Governing Council did not object to a proposal by the Supervisory Board to approve a revised Supervisory Review and Evaluation Process (SREP) timeline and approach in 2020, taking into account the impact of the COVID-19 pandemic on both human resources and other general resources. Accordingly, there will be a pragmatic approach to the SREP for the 2020 cycle, focusing on banks’ ability to handle the challenges of the COVID-19 crisis. The significant institutions under the ECB’s direct supervision were subsequently informed.
Compliance with EBA Guidelines on ICT and security risk management
On 13 May 2020 the Governing Council did not object to a proposal by the Supervisory Board to notify the EBA that, for the significant institutions under its direct supervision, the ECB will comply with the EBA Guidelines on ICT and security risk management (EBA/GL/2019/04) from 30 June 2020. The Guidelines contribute to a level playing field for all financial institutions and respond to the European Commission’s request to develop guidelines on ICT risk management and mitigation requirements in the EU financial sector.
Compliments of the ECB.

Together with our members we are creating a Video series of first-hand accounts of the Pandemic’s impact, both personally & professionally.

We invite you to join us today for a first-hand look at the impact of the global shutdown following the Coronavirus (COVID-19) outbreak – Today we are featuring Phil Hogan, the Trade Commissioner for the European Union based in Brussels.
The questions we asked our members for this series are:1) What are some challenges you, personally and your organization have faced?2) What are some of the most surprising (positive, innovative) responses/changes you have witnessed?3) How will this experience change us going forward, as a society and in terms of how we do business?

EACCNY has its finger on the pulse of how this worldwide pandemic is effecting companies and organizations on both sides of the Atlantic. EACC is where Americans & Europeans connect to do business.
Stay tuned for more on this series! We hope you enjoy these short vignettes our members and friends of the EACC created to share their experience.
 

May 19, 2020 |
• Credit terms remained broadly unchanged for almost all counterparties but are expected to tighten significantly the next reference period
• Financing collateralised by euro-denominated securities continued to decline
• Valuation disputes saw a strong increase
• Terms and conditions in secured financing and OTC derivatives markets were, on balance, broadly unchanged compared with one year ago
Against the background of the emerging coronavirus (COVID-19) crisis during the latter part of the review period December 2019 to February 2020, price and non-price credit terms offered to non-financial corporations, insurance companies and hedge funds tightened somewhat in both the securities financing market and the OTC derivatives market. Terms and conditions for banks and sovereign counterparties remained almost unchanged or eased somewhat on account of improving liquidity conditions. However, survey respondents expect credit terms and conditions to tighten significantly for all counterparty types over the next three months, in particular for banks and dealers. Respondents also reported a material increase in the volume of valuation disputes with banks and dealers.
The maximum amount and maturity of funding offered against euro-denominated securities continued to decline, especially for funding secured with high-quality government, corporate and covered bonds and, to a lesser extent, asset-backed securities. Haircuts increased for most collateral types. However, financing rates/spreads decreased somewhat for funding secured by all types of collateral except equities, convertible securities and high-yield corporate bonds. Respondents reported the strongest increase in collateral valuation disputes over a three-month reference period – for all collateral types except domestic government bonds – since the launch of the survey in 2013.
For all types of non-centrally cleared OTC derivatives, initial margin requirements increased, liquidity and trading deteriorated materially, and valuation disputes rose.
As a result of the developing coronavirus (COVID-19) crisis, many respondents submitted their survey responses for the period December 2019 to February 2020 after the 5 March 2020 deadline. These respondents finalised their feedback against the background of the rapidly evolving crisis. It cannot be excluded that these respondents took these developments into account in their submissions.
As in previous years, the March 2020 survey also included a number of special questions designed to offer a longer-term perspective on credit standards by comparing current conditions with those observed one year ago. Respondents reported that, on balance, terms and conditions in the secured financing and OTC derivatives markets remained broadly unchanged from the previous year, having tightened slightly for hedge funds and investment funds while easing for sovereigns, banks and dealers. In net terms, credit standards for secured funding eased relative to a year ago, while non-price conditions in OTC derivatives markets eased somewhat for most types of derivatives over the same period.
The SESFOD survey is conducted four times a year and covers changes in credit terms and conditions over three-month reference periods ending in February, May, August and November. The March 2020 survey collected qualitative information on changes between December 2019 and February 2020. The results are based on responses from a panel of 28 large banks, comprising 14 euro area banks and 14 banks with head offices outside the euro area.
Compliments of the European Central Bank.

April 15, 2020 |
Each year, CBO releases a set of four budget infographics that provide a detailed look at the past fiscal year as well as broader trends over the past few decades. Today, CBO published the latest infographics showing the federal budget results in fiscal year 2019.
These infographics help people understand how much the government spends and takes in each year and what programs and revenue sources account for the largest portions of those budgetary flows.
You can view the infographics for 2019 below, including an interactive version of the one about the overall federal budget:
The Federal Budget in 2019
Mandatory Spending in 2019
Discretionary Spending in 2019
Revenues in 2019
Infographics for fiscal years 2018 and 2017 are also available.
AUTHOR:Dan Ready is an analyst in CBO’s Budget Analysis Division.
Compliments of the Congressional Budget Office.

May 20, 2020 |
The Commission has proposed today country-specific recommendations (CSRs) providing economic policy guidance to all EU Member States in the context of the coronavirus pandemic, focused on the most urgent challenges brought about by the pandemic and on relaunching sustainable growth.
The recommendations are structured around two objectives: in the short-term, mitigating the coronavirus pandemic’s severe negative socio-economic consequences; and in the short to medium-term, achieving sustainable and inclusive growth which facilitates the green transition and the digital transformation.
A refocussed European Semester package
The Annual Sustainable Growth Strategy outlined the Commission’s growth strategy, based on promoting competitive sustainability to build an economy that works for people and the planet. With the outbreak of the coronavirus crisis this remains of utmost importance. The recommendations cover the four dimensions of competitive sustainability – stability, fairness, environmental sustainability and competitiveness – and also place a specific emphasis on health. The recommendations also reflect the Commission’s commitment to integrating the United Nations’ Sustainable Development Goals into the European Semester as they offer an integrated framework encompassing public health, social, environmental and economic concerns.
The recommendations cover areas such as investing in public health and resilience of the health sector, preserving employment through income support for affected workers, investing in people and skills, supporting the corporate sector (in particular small and medium-sized enterprises) and taking action against aggressive tax planning and money laundering. Recovery and investment must go hand-in-hand, reshaping the EU economy faced with the digital and green transitions.
The fiscal CSRs this year are qualitative, departing from the budgetary requirements that would normally apply. They reflect the activation of the general escape clause, recommending that Member States take all necessary measures to effectively address the pandemic, sustain the economy and support the ensuing recovery. When economic conditions allow, fiscal policies should aim at achieving prudent medium term fiscal positions and ensuring debt sustainability, while enhancing investment.
Monitoring fiscal developments
The Commission has also adopted reports under Article 126(3) of the Treaty on the Functioning of the EU for all Member States except Romania, which is already in the corrective arm of the Pact.
The Commission is required to prepare these reports for Member States that are themselves planning – for reasons related to the coronavirus – or are forecast by the Commission, to breach the 3% deficit limit in 2020. The reports for France, Belgium, Cyprus, Greece, Italy and Spain also assess these Member States’ compliance with the debt criterion in 2019, based on confirmed data validated by Eurostat.
These reports take into account the negative impact of the coronavirus pandemic on national public finances. In light of the exceptional uncertainty related to the extraordinary macroeconomic and fiscal impact of the pandemic, the Commission considers that at this juncture a decision on whether to place Member States under the excessive deficit procedure should not be taken.
Next steps
A coordinated European economic response is crucial to relaunch economic activity, mitigate damage to the economic and social fabric, and to reduce divergences and imbalances. The European Semester of economic and employment policy coordination therefore constitutes a crucial element of the recovery strategy.
Against this background, the Commission calls on the Council to adopt these country-specific recommendations and on Member States to implement them fully and in a timely manner.
Members of the College said:
Valdis Dombrovskis, Executive Vice-President for an Economy that Works for People, said: “The Coronavirus has hit us like an asteroid and left a crater-shaped hole in the European economy. This Spring semester package has been recast and streamlined to provide guidance to our Member States as they navigate their way through the storm. For this immediate phase, our focus is on investing in public health and protecting jobs and companies. As we shift to the recovery, the Semester will be essential in providing a coordinated approach to put our economies back on the track to sustainable and inclusive growth – no one should be left behind. We also need reforms to improve productivity and the business environment. Once conditions allow, we will need to strike a balance between achieving fiscal sustainability while also stimulating investment.”
Nicolas Schmit, Commissioner for Jobs and Social Rights, said: “Supporting workers, reinforcing social protection, fighting inequalities and guaranteeing people the right to develop their skills will be top priorities for our economic response to the crisis, as well as to ensure inclusive green and digital transitions. We can only achieve this together. The European Pillar of Social Rights remains our compass in these endeavours. The post-coronavirus recovery must foster resilience and upward convergence by putting people at the centre.”
Paolo Gentiloni Commissioner for Economy, said: “The coronavirus pandemic and the necessary containment measures have dealt a brutal blow to Europe’s economies. These recommendations reflect that unprecedented situation. The priorities today are to strengthen our healthcare, support our workers, save our businesses. Yet the challenges we faced before this crisis have not gone away. So as we look to the future, our investment and reform objectives must remain focused on making a success of the green and digital transitions and ensuring social fairness. That also means everyone must pay their share: there can be no place for aggressive tax planning in a Europe of solidarity and fairness.”
Surveillance reports for Greece, Spain and Cyprus
The Commission adopted the sixth enhanced surveillance report for Greece. The report concludes that, considering the extraordinary circumstances posed by the Coronavirus outbreak, Greece has taken the necessary actions to achieve its due specific reform commitments.
The Commission has also adopted the post-programme surveillance reports for Spain and Cyprus.
Further Information
European Semester 2020 Spring Package: Questions and answersFactsheet: European Semester Spring PackageCommunication on the country-specific recommendationsCountry-specific recommendationsReports under Article 126(3)Sixth enhanced surveillance report for GreecePost-programme surveillance report for SpainPost-programme surveillance report for CyprusEuropean Semester 2020: Country reportsSpring 2020 Economic ForecastStability and Growth PactMacroeconomic imbalance procedureThe European Semester
Compliments of the European Commission.

May 12, 2020 |
Composite leading indicators (CLIs) in most major economies collapsed by unprecedented levels in April as containment measures for Covid-19 continued to have a severe impact on production, consumption and confidence. 
In China, however, where containment measures have already been eased, the CLI for the industrial sector is tentatively pointing towards a positive change in momentum, with April’s CLI and a large upward revision for March both pushing the CLI upwards. Some care is needed in interpretation, as only partial information is currently available for China in April.
CONTINUE READING…
Compliments of the OECD.