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EU-UK relations: Council Gives go-Ahead for Talks to Start and Adopts Negotiating Directives

The Council today adopted a decision authorising the opening of negotiations for a new partnership with the UK, and formally nominating the Commission as EU negotiator. The Council also adopted negotiating directives which constitute a mandate to the Commission for the negotiations.

The Council has adopted a clear and strong mandate for our negotiator, Michel Barnier. This confirms our readiness to offer an ambitious, wide-ranging and balanced partnership to the UK for the benefit of both sides. The EU is now ready to start negotiations.
Andreja Metelko-Zgombić, Croatian State Secretary for European Affairs

Infographic – EU-UK negotiations
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The EU wishes to establish an ambitious, wide-ranging and balanced economic partnership with the UK. The mandate stresses that the future partnership should be underpinned by robust commitments to ensure a level playing field for open and fair competition, given the EU and the UK’s geographic proximity and economic interdependence.
The EU intends to establish a free trade agreement with the UK which ensures that zero tariffs and quotas apply to trade in goods. This agreement should provide for cooperation on customs and regulatory aspects. It should also include effective management and supervision, dispute settlement and enforcement arrangements.
On fisheries, the mandate outlines that the future partnership should uphold the existing reciprocal access to waters as well as stable quota shares. The agreement on fisheries should be established by 1 July 2020, to give time for determining fishing opportunities after the end of the transition period.
The mandate also contains provisions for future cooperation in areas such as digital trade, intellectual property, public procurement, mobility, transport, and energy.
The EU will seek to establish a comprehensive security partnership with the UK. The partnership should comprise law enforcement and judicial cooperation in criminal matters, as well as foreign policy, security and defence. The mandate foresees that the future partnership should be embedded in an overall governance framework covering all areas of cooperation.
Council decision authorising the opening of negotiations, 25 February 2020
Negotiating directives
Next steps
The Commission will agree with the UK the dates for the first negotiating sessions. The first formal meeting between the EU and the UK negotiators is expected to take place in early March.
Background
The Council decision and the negotiating directives are based on a recommendation presented by the Commission on 3 February 2020. They build on the political declaration agreed by the EU and the UK in October 2019, as well as on the European Council (Art. 50) guidelines on the future EU-UK relationship of March 2018 and April 2017.
On 13 December 2019, EU27 leaders reconfirmed their aim of establishing as close as possible a future relationship with the UK. They invited the Commission to submit to the Council a draft negotiating mandate for a future relationship with the UK immediately after its departure. 
The entry into force of the withdrawal agreement marked the end of the period under Article 50 TEU and the start of a transition period until 31 December 2020. During the transition period, the UK will continue to apply Union law but it will no longer be represented in the EU institutions.
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European Cooperation stakeholders meet at EUIPO

From 24 to 28 February 2020, the first European Cooperation week of the year gets underway at EUIPO. This important forum brings together IP experts from all over the EU with the common goal of implementing the European Cooperation Programmes within the current Strategic Plan 2020 at EUIPO.
Experts from the European Union Intellectual Property Network (EUIPN) will meet for the 8th European Cooperation Projects (ECP) working group meetings, the EUIPN Point of Contacts (PoCs) meeting and the Classification working group meeting on trade marks and designs.
The meetings are a key driver of the development and sustainability of the ECP outcomes. They gather more than 170 experts from intellectual property offices of the EU, EUIPO and user associations, together with observers from the European Patent Office (EPO) and the World Intellectual Property Organization (WIPO).
The 8th ECP working groups will be reviewing the progress made on five different European Cooperation projects, including the ECP3 New Tools project on Decision Desktop, ECP4 Shared Services and Practices (CP11 and CP12), ECP5 European Network of Authenticities, and ECP2 major improvements to TMView and DesignView.
Participation and engagement in the working groups has increased over the past years, thus reinforcing the exchange of knowledge. The working group members play a decisive role in shaping the outcome of each project, all of which combine to strengthen and develop the IP system across the EU. For example, experts will be invited to validated the last updates to the new TMview version planned to go live in April (the beta version was launched in late 2019), while progress in the drafting of common practices in the Convergence Programme on new types of practices will be sought.
The EUIPN Point of Contacts meeting gathers members of the EU Intellectual Property Network (EUIPN), with the aim of facilitating a collaborative approach with EUIPO and building an interconnected, efficient and reliable IP system, through continuous cooperation and consultations, for the benefit of users. The meeting will serve to highlight the importance of efficient implementation of the new cooperation model, as well as preparing for the assessment of interest for participation in ECPs during the last part of 2020 and 2021 by the national and regional intellectual property offices of the EU.
The Classification Working group meetings, in cooperation with the Digital Transformation Department (DTD) of EUIPO, will be dealing with two different work streams, designs and trade marks, bringing together classification experts from EU IP offices as well as WIPO and User Associations.
Work stream “Designs” will be focusing on the discussion of issues related to the maintenance of the Harmonised Database of Product Indications (HDBPI) and improvements to enhance the use and quality of the database. This will be the first time a maintenance meeting is held for DesignClass. It will take place twice a year, with the next one planned for September 2020.
Similarly, work stream “trade marks” will focus on the discussion of issues related to the classification of Goods and Services, such as the content and operational issues of the Harmonised Database (HDB), Taxonomy and Nice updates.
The European Cooperation week will pave the way for future actions across the different projects, including technical acknowledgement in the March Liaison meeting or adoption of common practices in the June Management Board and Budget Committee meetings. As usual, a second European Cooperation week will be planned for the end of September 2020.
Compliments of the European Union Intellectual Property Office

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Shaping Europe’s Digital Future: Commission Presents Strategies for Data and Artificial Intelligence

Today, the Commission unveils its ideas and actions for a digital transformation that works for all, reflecting the best of Europe: open, fair, diverse, democratic and confident. It presents a European society powered by digital solutions that put people first, opens up new opportunities for businesses, and boosts the development of trustworthy technology to foster an open and democratic society and a vibrant and sustainable economy. Digital is a key enabler to fighting climate change and achieving the green transition. The European data strategy and the policy options to ensure the human-centric development of Artificial Intelligence (AI) presented today are the first steps towards achieving these goals.
The President of the Commission, Ursula von der Leyen, said: “Today we are presenting our ambition to shape Europe’s digital future. It covers everything from cybersecurity to critical infrastructures, digital education to skills, democracy to media. I want that digital Europe reflects the best of Europe – open, fair, diverse, democratic, and confident.”
Executive Vice-President for A Europe Fit for the Digital Age, Margrethe Vestager, said: “We want every citizen, every employee, every business to stand a fair chance to reap the benefits of digitalisation. Whether that means driving more safely or polluting less thanks to connected cars; or even saving lives with AI-driven medical imagery that allows doctors to detect diseases earlier than ever before.”
Commissioner for Internal Market,Thierry Breton, said: “Our society is generating a huge wave of industrial and public data, which will transform the way we produce, consume and live. I want European businesses and our many SMEs to access this data and create value for Europeans – including by developing Artificial Intelligence applications. Europe has everything it takes to lead the ‘big data’ race, and preserve its technological sovereignty, industrial leadership and economic competitiveness to the benefit of European consumers.”
Europe as a trusted digital leader
Digital technologies, if used with purpose, will benefit citizens and businesses in many ways. Over the next five years, the Commission will focus on three key objectives in digital:
·     Technology that works for people;
·     A fair and competitive economy; and
·     An open, democratic and sustainable society.
Europe will build on its long history of technology, research, innovation and ingenuity, and on its strong protection of rights and fundamental values. New policies and frameworks will enable Europe to deploy cutting-edge digital technologies and strengthen its cybersecurity capacities. Europe will continue to preserve its open, democratic and sustainable society and digital tools can support these principles. It will develop and pursue its own path to become a globally competitive, value-based and inclusive digital economy and society, while continuing to be an open but rules-based market, and to work closely with its international partners.
Europe as a leader in trustworthy Artificial Intelligence
Europe has all it needs to become a world leader in Artificial Intelligence (AI) systems that can be safely used and applied. We have excellent research centres, secure digital systems and a robust position in robotics as well as competitive manufacturing and services sectors, spanning from automotive to energy, from healthcare to agriculture. 
In its White Paper presented today, the Commission envisages a framework for trustworthy Artificial Intelligence, based on excellence and trust. In partnership with the private and the public sector, the aim is to mobilise resources along the entire value chain and to create the right incentives to accelerate deployment of AI, including by smaller and medium-sized enterprises. This includes working with Member States and the research community, to attract and keep talent. As AI systems can be complex and bear significant risks in certain contexts, building trust is essential. Clear rules need to address high-risk AI systems without putting too much burden on less risky ones. Strict EU rules for consumer protection, to address unfair commercial practices and to protect personal data and privacy, continue to apply.
For high-risk cases, such as in health, policing, or transport, AI systems should be transparent, traceable and guarantee human oversight. Authorities should be able to test and certify the data used by algorithms as they check cosmetics, cars or toys. Unbiased data is needed to train high-risk systems to perform properly, and to ensure respect of fundamental rights, in particular non-discrimination. While today, the use of facial recognition for remote biometric identification is generally prohibited and can only be used in exceptional, duly justified and proportionate cases, subject to safeguards and based of EU or national law, the Commission wants to launch a broad debate about which circumstances, if any, might justify such exceptions.
For lower risk AI applications, the Commission envisages a voluntary labelling scheme if they apply higher standards.
All AI applications are welcome in the European market as long as they comply with EU rules.
Europe as a leader in the data economy
The amount of data generated by businesses and public bodies is constantly growing. The next wave of industrial data will deeply transform the way we produce, consume and live. But most of its potential remains unfulfilled. Europe has everything it takes to become a leader in this new data economy: the strongest industrial base of the world, with SMEs being a vital part of the industrial fabric; the technologies; the skills; and now also a clear vision.
The objective of the European data strategy is to make sure the EU becomes a role model and a leader for a society empowered by data. For this, it aims at setting up a true European data space, a single market for data, to unlock unused data, allowing it to flow freely within the European Union and across sectors for the benefit of businesses, researchers and public administrations. Citizens, businesses and organisations should be empowered to make better decisions based on insights gleaned from non-personal data. That data should be available to all, whether public or private, start-up or giant.
To achieve this, the Commission will first propose to establish the right regulatory framework regarding data governance, access and reuse between businesses, between businesses and government, and within administrations. This entails creating incentives for data sharing, establishing practical, fair and clear rules on data access and use, which comply with European values and rights such as personal data protection, consumer protection and competition rules. It also means to make public sector data more widely available by opening up high-value datasets across the EU and allowing their reuse to innovate on top.
Second, the Commission aims at supporting the development of the technological systems and the next generation of infrastructures, which will enable the EU and all the actors to grasp the opportunities of the data economy. It will contribute to investments in European High Impact projects on European data spaces and trustworthy and energy efficient cloud infrastructures.
Finally, it will launch sectoral specific actions, to build European data spaces in for instance industrial manufacturing, the green deal, mobility or health.
The Commission will also work to further narrow the digital skills gap among Europeans, and explore how to give citizens better control over who can access their machine-generated data.
Next Steps
As set out in the strategy presented today, the Commission will present later this year a Digital Services Act and a European Democracy Action Plan, propose a review of the eIDAS regulation, and strengthen cybersecurity by developing a Joint Cyber Unit. Europe will also continue to build alliances with global partners, leveraging its regulatory power, capacity building, diplomacy and finance to promote the European digitalisation model.
The White Paper on Artificial Intelligence is now open for public consultation until 19 May 2020. The Commission is also gathering feedback on its data strategy. In light of the input received, the Commission will take further action to support the development of trustworthy AI and the data economy
Background
Since 2014, the Commission has taken a number of steps to facilitate the development of a data-agile economy such as the Regulation on the free flow of non-personal data, the Cybersecurity Act, the Open Data Directive and the General Data Protection Regulation.
In 2018, the Commission presented for the first time an AI strategy, and agreed a coordinated plan with Member States. The framework for AI presented today also builds on the work carried out by the High-Level Expert Group on Artificial Intelligence, which presented their Ethics Guidelines on trustworthy AI in April 2019.
In her Political Guidelines, Commission President Ursula von der Leyen stressed the need to lead the transition to a healthy planet and a new digital world. In that context, she announced to kick-start the debate on human and ethical Artificial Intelligence and the use of big data to create wealth for societies and businesses during her first 100 days in office.
Compliments of the European Commission

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More than Money: The Long-Term EU Budget is a Tool for Europe’s Future

MEPs underlined that Parliament will only give its consent to a budget that meets the European Union’s ambitions, in a debate on EU funding for 2021-2027.

Talking about the budget means talking about the EU’s future, MEPs said in a key plenary debate with Nikolina Brnjac, Croatian State Secretary for Foreign and European Affairs, representing the Council, and Commission President Ursula von der Leyen.
The debate on Wednesday came ahead of a special EU summit starting on 20 February, where member states will try to agree on a common position on the next multiannual financial framework (MFF).
Most MEPs insisted that sufficient funding is key to achieve common ambitions such as fighting climate change, the digital and ecological transformation, dealing with the social consequences of the latter, and continuing to support regions and cities, farmers, young people, researchers or entrepreneurs. Implementing the Green Deal with a reduced budget, for example, would mean cutting successful EU programmes elsewhere, MEPs highlighted. Some said that certain EU policies need to be assessed more thoroughly, and that more spending discipline is needed.
In addition, introducing new sources of revenue (“Own Resources”) for the EU and linking the EU budget to the respect of rule of law are key for MEPs.
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ESMA Issues Opinions on Position Limits under MIFID II

The European Securities and Markets Authority (ESMA) has published seven opinions on position limits  regarding commodity derivatives under the Markets in Financial Instruments Directive and Regulation (MiFID II/MIFIR) today.

ESMA’s opinions agree with the proposed position limits regarding:
ICE Endex Dutch TTF Gas contracts
EEX Phelix DE Base Power contracts
EEX Capesize TC5 Freight contracts
EEX Spanish Power Base contracts
MEFFPOWER  Baseload contracts
ESMA found that the proposed position limits are consistent with the objectives established in MiFID II and with the methodology developed for setting those limits.
In addition to the five opinions above, ESMA published two opinions on the proposed position limits regarding the OMIP SPEL Base contracts. The first opinion relates to the position limits initially notified by Comissão do Mercado de Valores Mobiliários (CMVM ) which ESMA did not find consistent with the objectives established in MiFID II. In such circumstances, Article 57(5) of MiFID II requires the competent authority concerned  to modify the position limits in accordance with ESMA’s opinions or provide ESMA with justification why the change is considered to be unnecessary. In December 2019, CMVM accordingly notified ESMA of revised position limits for the OMIP SPEL base contracts. ESMA agreed with those revised position limits in a subsequent opinion which also has been published today.
ESMA will continue to assess the notifications received and issue opinions in order to ensure that the position limits are set in accordance with the MiFID II framework.
Compliments of the European Commission