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

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

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

Read more about OECD work on plastics
Contact:

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

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​​Tourism has been one of the sectors worst affected by the Covid-19 pandemic: hotels, restaurants, airlines and travel agencies had to stop their activity almost completely during a long period and only now touristic activity is slowly recovering back to pre-2020 levels. However, the pandemic has also accelerated the transition to a more sustainable models of tourism. This was the topic of a conference organised by the CoR’s NAT Commission in Santiago de Compostela on 3 June. The host city is known for the Camino de Santiago (The Way of St James), which provides a perfect example of sustainable, low-impact tourism combining cultural heritage and bringing together people from across Europe.
The President of the Government of Galicia, Alfonso Rueda Valenzuela, noted that 100 000 pilgrims have already arrived in Santiago de Compostela this year, which means that the city is on the way to beat the record from 2019. “People want to travel again, discover new places and cultural heritage, but the pandemic has changed models of tourism towards destinations that are nearer and less massified”, he said.
While touristic activity has returned to pre-pandemic levels in many regions of Europe during spring 2022, Manuel Cardenete Flores (ES/Renew Europe), Regional Minister for Education and Sport in Andalusia, warned that the war in Ukraine and the energy crisis are posing new challenges to the sector. He underlined the importance of tourism to the economic growth – for example, in Andalusia it represents more than 13 percent of the GDP – and called for the European Union to consider tourism as one of its key policy areas.
This call was shared by the MEP Cláudia Monteiro de Aguiar (PT/EPP) who recalled that the European Parliament has urged the European Commission to present a new strategy on sustainable tourism in Europe and to establish an EU Agency for Tourism. She insisted that the green and digital transition in the tourism sector should be supported through the National Recovery Plans and eventually by setting up a separate budget line.
At the same time, cities and regions across Europe are responding to the growing demand for more sustainable ways of travel: for example, the Veneto Region in Italy has recently inaugurated several new walking and cycling routes across the territory. The President of Veneto Region Roberto Ciambetti (IT/ECR) also referred to a study showing that 54% of tourists arriving in his region would accept to pay an extra price for a more ecologic-friendly accommodation.
“Sustainability must be the rule, not exception”, concluded the NAT Commission Chair Ulrika Landergren (SV/Renew Europe). ” The EU must develop a strategy that takes into account the tourism’s ecologic and social impact”, she added, regretting that unsustainable practices still exist: golf courses are watered in areas suffering from drought and some cruise ships continue dumping wastewater into oceans.
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The European Commission and the US Commerce Department have agreed to strengthen coordination on the enforcement of export controls on Russia, building on the excellent cooperation under the US-EU Trade and Technology Council.
In a meeting in Brussels, Deputy Secretary of Commerce Don Graves, US Ambassador to the European Union Mark Gitenstein and Assistant Secretary for Export Enforcement Matthew Axelrod, discussed export control enforcement with Bjoern Seibert, Head of Cabinet for the President of the European Commission, Ursula von der Leyen, and Sabine Weyand, Director-General for Trade, and Gerassimos Thomas, Director-General for Taxation and Customs Union.
They agreed to exchange regularly on export enforcement implementation, expand information sharing on diversion networks, and support investigations.
Additional talks will take place next week in Brussels on how to take this initiative forward.
Compliments of the European Commission.
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Introductory statement by Fabio Panetta, Member of the Executive Board of the ECB, at the meeting of the Euro Accession Countries Working Group of the Committee on Economic and Monetary Affairs of the European Parliament | Brussels, 1 June 2022 |
Thank you for inviting me to discuss our latest ECB Convergence Report.[1]
As foreseen in the EU Treaties[2], we publish our Convergence Report at least once every two years. The report examines the progress made by non-euro area Member States[3] towards satisfying the necessary conditions for adopting the single currency. Specifically, it assesses whether a high degree of sustainable economic convergence has been achieved.[4] Moreover, it examines whether the national legislation is compatible with the EU Treaties (including our Statute[5]), and whether the statutory requirements are fulfilled for the relevant national central bank to become an integral part of the Eurosystem.
Our assessment is independent from the Commission’s assessment, which has just been presented to you by Executive Vice-President Dombrovskis. I will now briefly discuss our conclusions on the state of economic and legal convergence. I will then focus on our assessment of Croatia.
The state of economic and legal convergence in non-euro area countries
Looking at the general picture first, let me highlight four points.
First, since our last Convergence Report in 2020, the seven Member States under review have made limited progress overall towards meeting the convergence criteria, with the notable exception of Croatia. This lack of progress is mainly due to challenging economic conditions. While the countries rebounded strongly from a longer than initially expected COVID-19 shock, the Russian invasion of Ukraine has darkened economic prospects.
Second, apart from Croatia, none of the other countries under review complies with all economic convergence criteria. In five of the seven Member States examined in the report, HICP inflation is well above the reference value. The long-term interest rate is above the reference value in two countries and well above it in one country. The situation has clearly deteriorated compared with 2020, when only one country was above the reference value. Furthermore, most countries have made no progress in reducing fiscal imbalances, which is not surprising given the COVID-19 pandemic and the fiscal measures adopted to mitigate its economic impact. As regards the exchange rate criterion, the Bulgarian lev and Croatian kuna were included in the exchange rate mechanism (ERM II), on 10 July 2020. Over the two-year reference period the Bulgarian lev did not exhibit any deviation from its central rate due to its currency board arrangement, while the Croatian kuna displayed a low degree of volatility and traded close to its central rate.[6]
Third, all countries, with the exception of Croatia, need to adjust their legal framework to comply with the requirements under Union law. They must address issues relating to central bank independence and the prohibition on monetary financing.
Moreover, let me reiterate what I said here in 2020 when I presented our previous ECB Convergence Report.[7]
In the interest of the euro area as a whole and of each euro area accession country, convergence has to be reached on a lasting basis, and not just at a given point in time. This requires ongoing attention, also through our economic governance mechanisms and sound financial sector supervision. In order to achieve a high level of sustainable convergence, our Convergence Report emphasises the need for lasting policy adjustments in many of the countries under review. Specifically, we emphasise that the Next Generation EU (NGEU) package represents a unique opportunity to accelerate the process of euro area convergence, with swift and effective implementation being crucial for its success.
The state of economic and legal convergence in Croatia
Let me now focus on Croatia, which is the only country that fulfils all economic and legal requirements for adopting the euro and has expressed the wish to do so on 1 January 2023.
With regard to price stability, the 12-month average rate of HICP inflation in Croatia was 4.7%, which is below the reference value of 4.9%. In terms of fiscal sustainability, Croatia’s general government budget balance was just below the 3% deficit reference value in 2021, while its debt ratio was above the 60% reference value but on a downward trajectory. Since the inclusion of the Croatian kuna in ERM II, its deviations from the agreed central rate have been significantly smaller than the standard fluctuation band of ERM II. Long-term interest rates stood at 0.8% on average and thus remained below the 2.6% reference value for the interest rate convergence criterion.
From a legal perspective, Croatian law is compatible with the Treaties and the Statute of the European System of Central Banks and of the European Central Bank. What is key is the amendment to the Law on Croatia’s central bank, which prohibits the Croatian Government from seeking to influence the members of its decision-making bodies.
With the entry into force of the close cooperation framework on 1 October 2020, the ECB gained responsibility for directly supervising eight significant institutions and for overseeing 15 less significant institutions in Croatia.[8] The convergence in banking supervision ensures the application of uniform supervisory standards and thus contributes to safeguarding financial stability.
Moreover, the agreement on Croatia’s participation in ERM II was based on several policy commitments which I discussed with you two years ago.[9]
Although the anti-money laundering (AML) commitments have been fulfilled formally, there are still several shortcomings in this respect which must be addressed, as identified in the recent MONEYVAL report.[10] This is also key from a prudential perspective. We therefore urge the Croatian Government to deliver on its commitment to fully implement a new AML action plan by 2023, when the first year of MONEYVAL’s enhanced follow-up procedure ends.
Finally, our assessment stresses that, in view of the subdued growth potential, it is crucial to strengthen Croatia’s institutional capacity to ensure effective and efficient implementation of the structural reforms that can lift its growth path.
Conclusion
Let me conclude.
The convergence assessments by the Commission and the ECB are paving the way for another euro area enlargement. Two decades after the introduction of the single currency, euro area membership remains an attractive prospect.
The euro area is facing challenges on many fronts which are mainly of a global nature, like the Russian invasion of Ukraine and persistent supply chain disruptions. But the size of our Economic and Monetary Union gives us the economic firepower and policy autonomy to respond to these adverse external shocks. And the euro buttresses our supply chains, increasing their resilience. Supply chain integration in Europe is better than in any other continent, and continues to increase.[11]
We appreciate that countries make every effort to prepare themselves for adopting the euro. And they do so under challenging economic conditions. I am convinced that the recent EU initiatives such as the Recovery and Resilience Facility and the REPowerEU Plan will help our economies stay on the path towards reforms and investment.
Croatia’s progress demonstrates its commitment to adopting the euro. Most importantly, it is another step towards economic and monetary integration in Europe. It further underpins our collective economic strength and our sovereignty.
Footnotes:

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

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Today, the European Commission has concluded that Croatia is ready to adopt the euro on 1 January 2023, bringing the number of euro area Member States to twenty.
The conclusion is set out in the 2022 Convergence Report, which assesses the progress that Bulgaria, Czechia, Croatia, Hungary, Poland, Romania and Sweden have made towards joining the euro area. These are the seven non-euro area Member States that are legally committed to adopting the euro. The Report concludes that:

Only Croatia and Sweden meet the price stability criterion.
All Member States fulfil the criterion on public finances, except Romania which is the only Member State subject to an excessive deficit procedure.
Bulgaria and Croatia are the two Member States fulfilling the exchange rate criterion.
Bulgaria, Croatia, Czechia and Sweden fulfil the long-term interest rate criterion.

The Report finds that Croatia fulfils the four nominal convergence criteria and its legislation is fully compatible with the requirements of the Treaty and the Statute of the European System of Central Banks/ECB.
The Commission’s assessment is complemented by the European Central Bank’s (ECB) own Convergence Report, which has also been published today.
Croatia’s adoption of the euro
In light of the Commission’s assessment, and taking into account the additional factors relevant for economic integration and convergence, including balance of payments developments and integration of product, labour and financial markets, the Commission considers that Croatia fulfils the conditions for the adoption of the euro. It has therefore also adopted proposals for a Council Decision and a Council Regulation on euro introduction in Croatia.
The Council will make the final decisions on Croatia’s euro adoption in the first half of July, after discussions in the Eurogroup and in the European Council, and after the European Parliament and the ECB have given their opinions.
The Report, therefore, marks a crucial and historic step on Croatia’s journey towards adopting the euro.
Overall assessment of preparedness
In all of the non-euro area Member States examined except Croatia, the Report also finds that national legislation in the monetary field is not fully compatible with EMU legislation and with the Statute of the European System of Central Banks/ECB.
The Commission also examined additional factors referred to in the Treaty that should be taken into account in the assessment of the sustainability of convergence. This analysis shows that the Member States examined are generally well integrated economically and financially in the EU. However, some of them still experience macroeconomic vulnerabilities and/or face challenges related to their business environment and institutional framework which may pose risks as to the sustainability of the convergence process.
The effective implementation of the reforms and investments set out in their national recovery and resilience plans will address key macro-economic challenges. In the case of Hungary and Poland, the plans are currently being assessed by the Commission to make sure that all assessment criteria are being fulfilled.
Members of the College said:
President of the European Commission Ursula von der Leyen said: “Today, Croatia has made a significant step towards adopting the euro, our common currency. Less than a decade after joining the EU, Croatia is now ready to join the euro area on 1 January. This will make Croatia’s economy stronger, bringing benefits to its citizens, businesses and society at large. Croatia’s adoption of the euro will also make the euro stronger. Twenty years after the introduction of the first banknotes, the euro has become one of the most powerful currencies in the world, improving the livelihoods of millions of citizens across the Union. The euro is a symbol of European strength and unity. Congratulations, Croatia!”
Valdis Dombrovskis, Executive Vice-President for an Economy that Works for People, said: “Croatia has shown great commitment, diligence and perseverance in its efforts to meet the conditions for adopting the euro on January 1, 2023. Taking on Europe’s common currency as its own will mark the completion of Croatia’s integration into the European Union less than a decade after its EU accession. This is a great achievement. It will bring real benefits to Croatian people and businesses and make Croatia’s economy more resilient. It also shows that the euro remains an attractive and successful global currency. Our currency is a symbol of Europe’s strength, unity and solidarity at a time when these qualities are being tested by a war raging on our doorstep.”
Paolo Gentiloni, Commissioner for Economy, said: “Today marks a historic milestone on Croatia’s European journey, reflecting the determined efforts the Croatian authorities have made to meet the criteria for entry into the euro area. The Croatian people can now look forward to joining more than 340 million citizens already using the euro as their currency, a rock of stability in these turbulent times. And in the year in which we celebrated the twentieth anniversary of the euro’s birth as a physical currency, the euro area as a whole can now look forward to welcoming its twentieth member.”
Background
The Convergence Report by the European Commission forms the basis for the Council of the EU’s decision on whether a Member State fulfils the conditions for joining the euro area.
The Convergence Report of the European Commission is separate to, but published in parallel with, the Convergence Report of the ECB.
Convergence reports are issued every two years, or when there is a specific request from a Member State to assess its readiness to join the euro area – for example, Latvia in 2013.
All Member States, except Denmark, are legally committed to join the euro area. Denmark, which negotiated an opt-out arrangement in the Maastricht Treaty, is therefore not covered by the Report.
While the COVID-19 pandemic and the subsequent economic recovery in 2021 had a very significant impact on the findings of the 2022 Convergence Report, the impact of Russia’s unprovoked invasion of Ukraine which began in February 2022 on the historical data used to prepare the Report has been limited. The extent to which the economic convergence indicators are affected by the crisis triggered by Russia’s military agression as well as by other ongoing economic developments is fully captured in the economic projections for 2022 and 2023, which the Commission published on 16 May 2022 (Commission Spring 2022 Economic Forecast) and which are used to assess the sustainability of convergence.
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On the first day of the special European Council taking place on 30-31 May, EU leaders agreed on the sixth package of sanctions against Russia, that includes a ban on crude oil and petroleum products, with a temporary exception for crude oil delivered by pipeline.
President of the Commission Ursula von der Leyen welcomed the agreement, calling it an important step forward. She also recalled other restrictive measures that this package of sanctions includes, such as de-SWIFTing Sberbank, by far Russia’s largest bank, and the suspension of broadcasting of three big Russian state-owned broadcasters from EU airwaves.
Speaking about EU’s support to Ukraine, President von der Leyen said the EU was working on a mechanism to have an extraordinary EUR 9 billion of macro-financial assistance.
EU leaders noted that Ukraine’s reconstruction would require comprehensive support to rebuild the country for the future, and that the EU and its Member States were ready to play a major role. In that regard, the leaders discussed the Commission’s proposal to create a platform that would channel all the international initiatives in raising the necessary investment. President von der Leyen underlined that ‘investment comes with reform’. “It is important that we stand together to give Ukraine a fair chance to rise from the ashes and to be able to leapfrog forward that investment – concerning reconstruction as well as the improvement of the state of Ukraine,” she concluded.
Read more
Opening remarks by President von der Leyen at the joint press conference with President Michel following the special meeting of the European Council of 30 May 2022
European Council conclusions on Ukraine, 30 May 2022
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On 25 May 2022, the European Commission is proposing to add the violation of EU restrictive measures to the list of EU crimes. The Commission is also proposing new reinforced rules on asset recovery and confiscation, which will also contribute to the implementation of EU restrictive measures. While the Russian aggression on Ukraine is ongoing, it is paramount that EU restrictive measures are fully implemented and the violation of those measures must not be allowed to pay off. Today’s proposals aim to ensure that the assets of individuals and entities that violate the restrictive measures can be effectively confiscated in the future. The proposals come in the context of the ‘Freeze and Seize’ Task Force, set up by the Commission in March.
Making the violation of EU restrictive measures an EU crime
Firstly, the Commission is proposing to add the violation of restrictive measures to the list of EU crimes. This will allow to set a common basic standard on criminal offences and penalties across the EU. In turn, such common EU rules would make it easier to investigate, prosecute and punish violations of restrictive measures in all Member States alike.
The violation of restrictive measures, meets the criteria set out in Article 83(1) TFEU, as it is a crime in a majority of Member States. It is also a particularly serious crime, since it may perpetuate threats to international peace and security, and has a clear cross-border context, which requires a uniform response at EU level and global level.
Accompanying the proposal, the Commission is also setting out how a future Directive on criminal sanctions could look like in a Communication with an Annex. The potential criminal offences could include: engaging in actions or activities that seek to directly or indirectly circumvent the restrictive measures, including by concealing assets; failing to freeze funds belonging to, held or controlled by a designated person/entity; or engaging in trade, such as importing or exporting goods covered by trade bans.
Once the EU Member States agree on the Commission’s initiative to extend the list of EU crimes, the Commission will present a legislative proposal based on the accompanying Communication and Annex.
Reinforcing EU rules on asset recovery and confiscation to EU restrictive measures
Secondly, the Commission is putting forward a proposal for a Directive on asset recovery and confiscation. The core objective is to ensure that crime does not pay by depriving criminals of their ill-gotten gains and limiting their capacity to commit further crimes. The proposed rules will also apply to the violation of restrictive measures, ensuring the effective tracing, freezing, management and confiscation of proceeds derived from the violation of restrictive measures.
The proposal modernises EU asset recovery rules, among others, by:

Extending the mandate of Asset Recovery Offices to swiftly trace and identify assets of individuals and entities subject to EU restrictive measures. These powers will also apply to criminal assets, including by urgently freezing property when there is a risk that assets could disappear.
Expanding the possibilities to confiscate assets from a wider set of crimes, including the violation of EU restrictive measures, once the Commission proposal on extending the list of EU crimes is adopted.
Establishing Asset Management Offices in all EU Member States to ensure that frozen property does not lose value, enabling the sale of frozen assets that could easily depreciate or are costly to maintain.

Members of the College said:
Vice-President for Values and Transparency, Věra Jourová said: “EU sanctions must be respected and those trying to go around them punished. The violation of EU sanctions is a serious crime and must come with serious consequences. We need EU-wide rules to establish that.  As a Union we stand up for our values and we must make those who keep Putin’s war machine running pay the price”     
Commissioner for Justice and Consumers, Didier Reynders, said: “We must ensure that persons or companies that bypass the EU restrictive measures are held account. Such action is a criminal offence that should be sanctioned firmly throughout the EU. At present, divergent criminal definitions and sanctions as regards the violation of the restrictive measures can still lead to impunity. We need to close the loopholes and provide judicial authorities with the right tools to prosecute violations of Union restrictive measures”.
Commissioner for Home Affairs, Ylva Johansson said: “Crime bosses use intimidation and fear to buy silence and loyalty. But usually their greed means embrace of a rich lifestyle. That always leaves a trail. Now the European Commission is proposing new tools to fight organised crime by following this trail of assets. This proposal allows Asset Recovery officers to trace and freeze: trace where the assets are and issue an urgent freezing order. The tracing allows assets to be found and the urgent freezing gives time for courts to act. This proposal will cover new types of crime including firearms trafficking, extortion, to the tune of 50 billion. Our proposal also goes after unexplained wealth. Those at the top of criminal gangs will no longer be insulated from prosecution. Lastly the criminalisation of sanctions violation mean that reaction time against rogue actors is much quicker.”
Background
Restrictive measures are an essential tool for defending international security and promoting human rights. Such measures include asset freezes, travel bans, import and export restrictions and restrictions on banking and other services. Currently, there are over 40 regimes of restrictive measures in place in the EU and the rules criminalising the violations of such measures vary across Member States.
The Union has put in place a series of restrictive measures against Russian and Belarusian individuals and companies, as well as sectoral measures some of which date back to 2014. The implementation of EU restrictive measures following the Russian attack on Ukraine shows the complexity of identifying assets owned by oligarchs, who hide them across different jurisdictions through complex legal and financial structures. An inconsistent enforcement of restrictive measures undermines the Union’s ability to speak with one voice.
In order to enhance Union-level coordination in the enforcement of these restrictive measures, the Commission set up the ‘Freeze and Seize’ Task Force. Besides ensuring coordination among Member States, the Task Force seeks to explore the interplay between restrictive measures and criminal law measures. So far, Member States reported frozen assets worth €9.89 billion and blocked €196 billion worth of transactions. On 11 April, Europol, jointly with Member States, Eurojust and Frontex, launched Operation Oscar to support financial and criminal investigations targeting criminal assets owned by individuals and legal entities covered by EU sanctions.
Restrictive measures are only effective if systematically and fully enforced, and violations punished. Member States are already required to introduce effective, proportionate and dissuasive penalties for violations of restrictive measures. However, some Member States use much broader definitions, others have more detailed provisions in place. In some Member States, violation of restrictive measures is an administrative and a criminal offence, in some purely a criminal offence, and in some, restrictive measures violations currently only lead to administrative penalties. This patchwork enables persons subject to restrictive measures to circumvent them.
The Commission has also published today a progress report on the implementation of the EU Security Union Strategy, which highlights the security threats stemming from Russia’s unprovoked and unjustified war against Ukraine. The report emphasizes the need of a coordinated EU approach on a range of issues and highlights that fight against organised crime is one of the top priorities for the EU in ensuring a Security Union for all.
Compliments of the European Commission.
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