The European Commission has today sent the United Kingdom a letter of formal notice for breaching its obligations under the Withdrawal Agreement. This marks the beginning of a formal infringement process against the United Kingdom. It has one month to reply to today’s letter.
Article 5 of the Withdrawal Agreement states that the European Union and the United Kingdom must take all appropriate measures to ensure the fulfilment of the obligations arising from the Withdrawal Agreement, and that they must refrain from any measures which could jeopardise the attainment of those objectives. Both parties are bound by the obligation to cooperate in good faith in carrying out the tasks stemming from the Withdrawal Agreement.
On 9 September 2020, the UK government tabled a Bill (‘United Kingdom Internal Market Bill’) that, if adopted, would flagrantly violate the Protocol on Ireland / Northern Ireland, as it would allow the UK authorities to disregard the legal effect of the Protocol’s substantive provisions under the Withdrawal Agreement. Representatives of the UK government have acknowledged this violation, stating that its purpose was to allow it to depart in a permanent way from the obligations stemming from the Protocol. The UK government has failed to withdraw the contentious parts of the Bill, despite requests by the European Union.
By doing so, the UK has breached its obligation to act in good faith, as set out in Article 5 of the Withdrawal Agreement. Furthermore, it has launched a process, which – if the Bill is adopted – would impede the implementation of the Withdrawal Agreement. As a result, the Commission has launched infringement proceedings today in line with the provisions of the Withdrawal Agreement.
Next steps
The UK has until the end of this month to submit its observations to the letter of formal notice. After examining these observations, or if no observations have been submitted, the Commission may, if appropriate, decide to issue a Reasoned Opinion.
Background
The Withdrawal Agreement was ratified by both the EU and the UK. It entered into force on 1 February 2020 and has legal effects under international law.
Following the publication by the UK government of the draft ‘United Kingdom Internal Market Bill’ on 9 September 2020, Vice-President Maroš Šefčovič called for an extraordinary meeting of the EU-UK Joint Committee to request the UK government to elaborate on its intentions and to respond to the EU’s serious concerns. The meeting took place in London on 10 September between Michael Gove, Chancellor of the Duchy of Lancaster, and Vice-President Maroš Šefčovič.
At the meeting, Vice-President Maroš Šefčovič stated that if the Bill were to be adopted, it would constitute an extremely serious violation of the Withdrawal Agreement and of international law. He called on the UK government to withdraw these measures from the draft Bill in the shortest time possible and in any case by the end of the month of September.
At the third ordinary meeting of the Joint Committee on 28 September 2020, Vice-President Maroš Šefčovič again called on the UK government to withdraw the contentious measures from the bill. The UK government on this occasion confirmed its intention to go ahead with the draft legislation.
The Withdrawal Agreement provides that during the transition period, the Court of Justice of the European Union has jurisdiction and the Commission has the powers conferred upon it by Union law in relation to the United Kingdom, also as regards the interpretation and application of that Agreement.
Compliments of the European Commission.
The post Withdrawal Agreement: European Commission sends letter of formal notice to the United Kingdom for breach of its obligations first appeared on European American Chamber of Commerce New York [EACCNY] | Your Partner for Transatlantic Business Resources.

Statement explaining how ECB administers €STR
Compliance of the ECB with IOSCO Principles, and therefore with international best practice, in its administration of €STR
Independent assurance by external auditor

The European Central Bank (ECB) today published its statement of compliance with the Principles for Financial Benchmarks developed by the International Organization of Securities Commissions (IOSCO). This statement shows how the ECB complies with these principles, and therefore with international best practice, in its administration of the €STR. The statement has been independently assured by the auditing firm PricewaterhouseCoopers.
The ECB has been the administrator of the euro short-term rate (€STR) since it went live on 2 October 2019. The ECB’s governance, quality and accountability processes for the €STR apply the IOSCO Principles – where relevant and appropriate – to ensure that an effective and transparent control framework in line with international best practice is in place in order to protect the integrity and independence of the process used to determine the €STR. The statement of compliance with the IOSCO Principles for Financial Benchmarks provides an overview of how the ECB administers the €STR, presents a self-assessment of its compliance with each IOSCO Principle, and describes the relevant frameworks and procedures.
Compliments of the European Central Bank.
The post ECB publishes statement of compliance of €STR with IOSCO Principles for Financial Benchmarks first appeared on European American Chamber of Commerce New York [EACCNY] | Your Partner for Transatlantic Business Resources.

Main results
The Council adopted general approaches regarding the draft regulation establishing Horizon Europe, the EU’s framework programme for research and innovation for the years 2021-2027, and the draft decision establishing the specific programme implementing Horizon Europe.

Today’s agreement is an important step forward towards final adoption of Horizon Europe. We now need to make sure with the European Parliament and the Commission that our forward-looking EU Framework Programme for Research and Innovation can enter into force in the beginning of the next year. This is our joint task for the benefit of the European research and innovation community as well as the competitiveness of the EU.
Anja Karliczek, German federal minister of education and research

Today’s agreement paves the way for finalising the negotiations with the European Parliament for the adoption of the two legal acts before the end of the year.

Agreed text of Horizon Europe regulation
Corrigendum to the agreed text of Horizon Europe regulation
Agreed text of specific programme decision
European Council conclusions, 17-21 July 2020

Compliments of the Council of the EU.
The post EU Competitiveness Council (Research and innovation), 29 September 2020 first appeared on European American Chamber of Commerce New York [EACCNY] | Your Partner for Transatlantic Business Resources.

The European Commission has today published the first EU-wide report on the rule of law. Today’s report includes input from every Member State and covers both positive and negative developments across the EU. It shows that many Member States have high rule of law standards, but important challenges to the rule of law exist in the EU. It also reflects relevant developments stemming from the emergency measures taken by Member States due to the coronavirus crisis. The report covers four main pillars with a strong bearing on the rule of law: national justice systems, anti-corruption frameworks, media pluralism and freedom, and other institutional issues related to the checks and balances essential to an effective system of democratic governance.
The aim of the new Rule of Law Report is to enlarge the existing EU toolbox with a new preventive tool and kick-start an inclusive debate and rule of law culture across the EU. It should help all Member States examine how challenges can be addressed, how they can learn from each other’s experiences, and show how the rule of law can be further strengthened in full respect of national constitutional systems and traditions.
European Commission President Ursula von der Leyen said: “The rule of law and our shared values are the foundation of our societies. They are part of our common identity as Europeans. The rule of law protects people from the rule of the powerful. While we have very high rule of law standards in the EU, we also have various challenges. The European Commission will continue working with the national authorities to find solutions, to guarantee people’s everyday rights and freedoms.”
Vice-President for Values and Transparency, Věra Jourová, said: “Today we are filling an important gap in our rule of law toolbox. The new report for the first time looks at all Member States equally to identify rule of law trends and help to prevent serious problems from arising. Each citizen deserves to have access to independent judges, to benefit from free and pluralistic media and to trust that their fundamental rights are respected. Only then, can we call ourselves a true Union of democracies.”
Commissioner for Justice and Consumers, Didier Reynders, said: “The new Rule of Law Report is the start of an open and regular dialogue with every Member State, a way in which we can share good practices and pre-empt challenges before they become entrenched. The goal is to instil a real rule of law culture across the European Union, and trigger a genuine debate at national and EU level.”
Key findings on the rule of law situation in Member States

Justice systems

A number of Member States are undertaking reforms to strengthen judicial independence and are reducing the influence of the executive or legislative power over the judiciary. This includes Member States where judicial independence has traditionally been seen as high or even very high. The country specific assessments show that judicial independence remains an issue of concern in some Member States, some of which have led to infringements or Article 7(1) proceedings. Ensuring justice systems are fit for the digital age is also an EU-wide challenge and the current pandemic has provided additional impetus to accelerate necessary digital reforms.

Anti-corruption frameworks

Several Member States have adopted comprehensive anti-corruption strategies, while others are in the process of preparing such strategies. Effective implementation and monitoring remain key to ensure progress. Many Member States have also taken, or foresee taking, measures to strengthen their corruption prevention and integrity framework, and some Member States have adopted measures to strengthen the capacity of the criminal justice system to fight corruption. On the other hand, the effectiveness of criminal investigations, prosecution and adjudication of corruption cases, including high-level corruption, is still a challenge in several Member States.

Media freedom and pluralism

EU citizens broadly enjoy high standards of media freedom and pluralism. Especially during the coronavirus pandemic, media have proven essential in fighting disinformation. The report nevertheless raises concerns about effectiveness and adequate resources, as well as risks of politicisation of media authorities in some Member States. Some country assessments have further identified cases where serious concerns have been raised regarding political pressure on media. Lastly, journalists and other media actors face threats and attacks in relation to their work in a number of Member States, although some countries have also developed practices and set up structures and measures to support and protect journalists.

Institutional checks and balances

Institutional checks and balances are at the core of the rule of law, ensuring that power exercised by one state authority is subject to democratic oversight. In a number of Member States, constitutional reforms have been initiated to strengthen institutional checks and balances. Many Member States have also established systematic policies for involving stakeholders and ensuring that structural reforms are the product of a broad discussion within society. At the same time, the report shows that excessive use of accelerated and emergency legislation can give rise to rule of law concerns. Across the EU, civil society continues to be a key actor in defending the rule of law, and in most Member States, there is an enabling and supporting environment for civil society. However, there are examples of civil society facing serious challenges in some Member States as a result of legislation limiting access to foreign funding or smear campaigns.
Emergency measures taken in the coronavirus context
The pandemic is still ongoing and emergency regimes or emergency measures are still in place in a number of Member States. The report points to some of the issues that have arisen in the national debates and the legal and political response to the crisis. For example, changing or suspending customary national checks and balances can pose particular challenges to the rule of law. At the same time, there are several good examples of where national court rulings or the involvement of ombudspersons had a positive impact on emergency measures taken. The Commission will continue its monitoring until emergency measures are phased out.
Next steps
The Rule of Law Report will feed into the wider debate on the rule of law at the European and national levels. The Commission looks forward to engaging with the European Parliament and the Council on rule of law issues and considers that this report provides a solid basis for further inter-institutional work.
The Commission also invites national parliaments and national authorities to discuss this report, including its country chapters, and seek support from one another as an encouragement to pursue reforms and an acceptance of European solidarity. Relevant national and EU-level stakeholders should also be involved.
Based on the outcome of the dialogue around the 2020 edition and drawing on experiences gained in the first year of the functioning of the European Rule of Law Mechanism, the Commission will start preparing the 2021 report, carrying forward the momentum to make the rule of law more resilient in our democracies.
Background
The first annual Rule of Law Report is one of the major initiatives of the Commission’s Work Programme for 2020, and part of the comprehensive European Rule of Law Mechanism announced in the Political Guidelines of President von der Leyen. It is the result of close dialogue with national authorities and stakeholders, and covers all Member States on an objective and impartial basis. The qualitative assessment carried out by the Commission focuses on significant developments since January 2019 and ensures a coherent approach by applying the same methodology to all Member States, while remaining proportionate to developments.
The report is part of the new annual rule of law cycle – the Rule of Law Mechanism. The Mechanism is a yearly cycle to promote the rule of law and prevent problems from emerging or deepening further. The goal is to focus on improving understanding and awareness of issues and significant developments, as well as to identify rule of law challenges and help Member States find solutions with support from the Commission and the other Member States, as well as stakeholders including the Venice Commission.
The objective of the Mechanism is preventive. It is separate from the other elements in the EU’s rule of law toolbox, and does not replace the Treaty-based mechanisms for the EU to respond to more serious rule of law related issues in Member States. These tools include infringement proceedings and the procedure to protect the founding values of the Union under Article 7 of the Treaty on European Union. It is also different from the proposed budget conditionality procedure, which aims to protect the EU budget in situations where the Union’s financial interest might be at risk due to generalised deficiencies of the rule of law in a Member State.
Compliments of the European Commission.
The post Rule of law: First Annual Report on the Rule of Law situation across the European Union first appeared on European American Chamber of Commerce New York [EACCNY] | Your Partner for Transatlantic Business Resources.

It is a pleasure and a privilege to speak to you today under the aegis of the Bruegel Institute. Your contributions to the debate on Europe do not go unnoticed; they have an impact.
European strategic autonomy. Or sovereignty? Or strength? We all know that concepts and words can take on different connotations depending on the context. Today I’d like to concentrate on the substance behind the words. But first of all, I’d like to avoid laying myself open to a common accusation by saying: autonomy is not the same as protectionism. Quite the opposite! Allow me to try and explain why.
You will recall that Paul-Henri Spaak said, ‘There are only two types of country in Europe: small countries… and countries which are small, but don’t yet know that they are.’ One could equally say that Europe is a major player, but doesn’t yet know that it is.
The last three decades, as we have continued to build the European Union, have brought the creation of the single market, the Schengen area, the euro, the great enlargement… And finally, the Treaty of Lisbon, which consolidated our institutional framework.
Each of these stages has strengthened the European Union and its autonomy. These developments have given us a huge market, and an area of freedoms which has become the world’s largest trading bloc.
And they have given rise to the widely-acknowledged ‘Brussels effect’ so well described in Anu Bradford’s book. However, the ‘Brussels effect’ is not the bureaucracy of which we are so often accused. Rather, it is the ability to spread rules and standards across the globe, which earns admiration beyond the boundaries of the EU. Just as Molière’s Monsieur Jourdain speaks in prose without realising it, Europeans have become a world power without realising it.
Our climate diplomacy is a prime example. We are at the vanguard of the fight against climate change. In 2018, a few pioneering countries committed themselves to carbon neutrality by 2050. After that came the struggle to win people over, the mobilisation of civil society and young people for the climate. And in December 2019, with the support of Ursula von der Leyen’s Green Deal, the 27 member states made the 2050 commitment for the entire European Union. Then we firmly conveyed this message to China, including at our recent summit with Xi Jinping. His announcement at the UN last week of China’s 2060 commitment crowns a real diplomatic success. And, of course, we must remain vigilant as to its implementation.
So why is it more important now than ever for us to choose strategic autonomy for Europe?
Because the globalised world has changed radically since the end of the Cold War. And because an arc of instability has emerged around us.
To the east, the natural and harmless extension of the European democratic space has been brutally halted by Russia in Ukraine. Russia saw it as a major geopolitical threat. That cost Ukraine part of its territory and brought a war in the east that is constantly destabilising the country. Although the context is different, the events in Belarus again highlight the challenge at Europe’s eastern borders.
In the Eastern Mediterranean we face tensions and unpredictable developments. Libya and Syria are centres of insecurity and instability. Greek and Cypriot sovereignty are coming under pressure. Our relationship with Turkey is being severely tested. This is why the next European summit will be dedicated to adopting a strategic European position in relation to the region. I have proposed holding a multilateral conference on the Eastern Mediterranean to address issues including maritime boundaries, energy, security and migration.
To the south, Africa. In Europe and among Europe’s leaders, I can feel how much the perception of Africa is changing. Africa’s energy and vitality open up the prospect of an unprecedented alliance. It is up to us, the leaders of Africa and Europe, to make it happen.
To the west, Brexit. In the wake of the referendum, the European Union was shaken by the result. It was a choice in favour of national sovereignty that felt like a failure in the construction of Europe.
Where do things stand today? The United Kingdom has had to come to terms with our quiet strength. The truth of the matter is that the British are faced with a dilemma. What type of society do they want? Would they rather maintain high standards (in health and safety, food, the environment, etc.)? Or do they want to lower their standards, exposing their farmers and businesses to unfair, cut-throat competition from other parts of the world? The answer to that question will determine what level of access we can grant to our internal market.
When it comes to our alliance with the United States, beyond our values and historical ties, we cannot ignore an increasing number of geopolitical choices that run contrary to Europe’s interests. Weakening multilateralism. Withdrawing from the Paris Agreements. Pulling out of the Iran nuclear deal. Flirting with protectionism… these are not mere details. We are, and we wish to remain, a steadfast and loyal ally of the United States. We hope that it’s mutual.
Lastly, China, where our approach is one of engagement. China is an indispensable player when it comes to meeting global challenges such as climate change and COVID-19. But on trade and the economy, we are in the process of rebalancing our relationship: we want more of a level playing field, more reciprocity. On the issue of human rights, we will not look the other way, and we are prepared to promote our values.
If Europe faces complex challenges, that is not because it is weak, despite what some might claim. It is because Europe ranks among the world’s foremost strategic powers.
At times when Europe has appeared too weak, or indeed too soft, it was not necessarily because others were stronger. Often, it was because we underestimated just how much influence we had.
Europe has this unfortunate habit of self-flagellation, even when taking robust action. But the reality is that our heated debates and apparent confrontations are part and parcel of our decision-making. That is something to be proud of. We are not North Korea. We are a group of democracies, with public debate guaranteeing the legitimacy of our decisions.
Proof of this ability to overcome differences and set a course came in response to COVID-19, when the EU seized upon the ‘momentum’ created by the pandemic. The 1 800 billion euro mobilised in July is the fuel that will power our strategy for resilience and for environmental and digital transformation. That decision will go down as a key moment in history.
We are capable of rising to the challenges we face in Europe. Now it is our duty to use that capability in our external relations.
Our strategic autonomy must pursue three objectives. One: stability. Two: disseminating our standards. And three: promoting our values.
Stability first and foremost means physical security. It also means environmental security: air quality, access to drinking water, protection of biodiversity, respect for the planet and for the human species…
It also means economic and social security. That calls for a favourable environment for investment and trade, both within our market and with the rest of the world. Upholding fair market conditions and reciprocity with our trading partners is one of our priorities. We advocate free and open economies, and we are opposed to protectionism. But access to our large market cannot be given away for free. The lower your compliance with standards, the more restricted your access. Whether you’re leaving our Union, or building closer ties with it.
Economic security also means securing our supply of critical resources: medical products, rare earth elements… And also microprocessors, which are so essential for our digital sovereignty – this is another key aspect of our strategic autonomy, which is vital for our digital transformation.
Stability also means managing our migration policies in an orderly and lawful way, with respect for human dignity. We will have a lot of work to do on this issue.
Our second objective is to safeguard our ability to set standards. That ability is a key factor contributing to Europe’s current power. Our standards on the use of chemical substances ensure that toys produced around the world are safe. Our General Data Protection Regulation sets the global standard for the protection of privacy online. Likewise, our definition of hate speech, and pressure from us to eradicate it, are what pushed the big platforms to start ridding the internet of that scourge.
We also see the degree to which climate is a new strategic front where Europe can win the battle of standards. By pioneering environmental technologies and setting the relevant standards, we will achieve two goals: taking the lead in that field, and helping to win the fight against global warming.
This actually illustrates my third objective. The strength of our economic and social model lies in the fact that it is founded, in a way which is unique, on the bedrock of our values. It gives us great legitimacy and makes us hugely attractive in the eyes of many partners around the world.
We must draw further strength from that foundation, so that we can forge a more peaceful, a more humane and a fairer world. Leading the fight against global warming, upholding fair rules on trade, fighting for fairer taxation… All this is in our interest, and in the universal interest.
We have solid instruments at our disposal. We must make more use of them and we must make better use of them.
First, we have financial resources. The recent decision on the recovery package is key in this regard. Then there are the European competences. Used wisely, they can have a major impact. Trade agreements, development aid, economic governance, financial market supervision, an industrial strategy, a digital agenda, a space strategy… And of course the euro, which needs to have its international role developed. Policies on sanctions and visas are a sovereign instrument which we can also mobilise.
Let’s be honest. There is room for improvement in terms of coordinating and harmonising these instruments for our international strategy. Our High Representative is a super-Minister for Foreign Affairs. That is the letter and the spirit of Lisbon. He is fully committed to the role. His experience and his skill are assets. It is my hope that as Vice-President of the European Commission and President of the Foreign Affairs Council, he will have all the political space needed to further our shared interests.
And his is not an easy task, since in foreign policy unanimity is required. This issue of unanimity is, as everyone knows, regularly discussed. And my opinion on it is nuanced. It is true that requiring unanimity slows down and sometimes even prevents decision-making. But this requirement pushes us to work unremittingly to unite the Member States. And this European unity is also our strength. Unanimity promotes a lasting commitment by the 27 countries to the strategies which have been developed together. So I wonder: would abandoning unanimity really be such a good idea? Are there not other, more relevant reforms which would allow us to move more quickly on the international stage without losing the added value of our unanimity?
My modest experience is as follows. Very often, in recent months, I have found that what seemed to be significant divergences between Member States were quickly worn away through substantive discussion. This was the case with China. Political preparations have in just a few months allowed us to define a common position that is now being put forward by all. It will be the same on the Eastern Mediterranean and on Belarus. I am confident that here, too, we will express common positions which will draw their strength from our unity. The major decisions taken on the budget and the recovery fund are further illustrations of this certainty: political confrontation and the exchange of substantive arguments are an indispensable part of the process of democratic debate. This is what gives decisions their legitimacy.
Trust and personal respect also play a key role, which is why I encourage interaction – in various formats, sometimes informal – as much as I can. Unity does not develop spontaneously. It takes work, tenacity and constant, unwavering commitment.
Defence is not an EU competence like any other. I am aware of the various national sensitivities. I believe that deepening common defence is necessary, and is not an ideological obsession but a matter of common sense. This project must be carried out within NATO. This is the purpose of the strategic partnership between the EU and NATO. Permanent structured cooperation and the European Defence Fund, for which we have just earmarked 7 billion euro, are fully in line with this ambition. And I applaud Jean-Claude Juncker and Federica Mogherini, whose strategic leadership in this area has not yet been fully appreciated.
The European Union is inherently a positive, open and tolerant force. We know that free and fair trade contributes to societies’ development. Our benign and humanistic values inspire our project of transformation. Climate neutrality and digital sovereignty are opening up new spaces for human intelligence, innovation and democratic debate. Our objectives are ambitious and demanding: peace and prosperity. And this is exactly why we must make better use of all aspects of our power, be more consistent in the use of our tools. True to our values, realistic, less naive… A power working for a world that is more respectful, more ethical, and more just. Sovereignty, independence, empowerment… Whichever word you use, it’s the substance that counts. Less dependence, more influence. Effective strategic autonomy is the credo that brings us together to define our destiny, and to have a positive impact on the world.
Thank you.
Contact:

Barend Leyts, Spokesperson for the European Council President | press.president@consilium.europa.eu

Compliments of the European Council.
The post ‘Strategic autonomy for Europe – the aim of our generation’ – speech by President Charles Michel to the Bruegel think tank first appeared on European American Chamber of Commerce New York [EACCNY] | Your Partner for Transatlantic Business Resources.

The Federal Reserve is committed to using its full range of tools to support the U.S. economy in this challenging time, thereby promoting its maximum employment and price stability goals.
The COVID-19 pandemic is causing tremendous human and economic hardship across the United States and around the world. Economic activity and employment have picked up in recent months but remain well below their levels at the beginning of the year. Weaker demand and significantly lower oil prices are holding down consumer price inflation. Overall financial conditions have improved in recent months, in part reflecting policy measures to support the economy and the flow of credit to U.S. households and businesses.
The path of the economy will depend significantly on the course of the virus. The ongoing public health crisis will continue to weigh on economic activity, employment, and inflation in the near term, and poses considerable risks to the economic outlook over the medium term.
The Committee seeks to achieve maximum employment and inflation at the rate of 2 percent over the longer run. With inflation running persistently below this longer-run goal, the Committee will aim to achieve inflation moderately above 2 percent for some time so that inflation averages 2 percent over time and longer-term inflation expectations remain well anchored at 2 percent. The Committee expects to maintain an accommodative stance of monetary policy until these outcomes are achieved. The Committee decided to keep the target range for the federal funds rate at 0 to 1/4 percent and expects it will be appropriate to maintain this target range until labor market conditions have reached levels consistent with the Committee’s assessments of maximum employment and inflation has risen to 2 percent and is on track to moderately exceed 2 percent for some time. In addition, over coming months the Federal Reserve will increase its holdings of Treasury securities and agency mortgage-backed securities at least at the current pace to sustain smooth market functioning and help foster accommodative financial conditions, thereby supporting the flow of credit to households and businesses.
In assessing the appropriate stance of monetary policy, the Committee will continue to monitor the implications of incoming information for the economic outlook. The Committee would be prepared to adjust the stance of monetary policy as appropriate if risks emerge that could impede the attainment of the Committee’s goals. The Committee’s assessments will take into account a wide range of information, including readings on public health, labor market conditions, inflation pressures and inflation expectations, and financial and international developments.
Voting for the monetary policy action were Jerome H. Powell, Chair; John C. Williams, Vice Chair; Michelle W. Bowman; Lael Brainard; Richard H. Clarida; Patrick Harker; Loretta J. Mester; and Randal K. Quarles.
Voting against the action were Robert S. Kaplan, who expects that it will be appropriate to maintain the current target range until the Committee is confident that the economy has weathered recent events and is on track to achieve its maximum employment and price stability goals as articulated in its new policy strategy statement, but prefers that the Committee retain greater policy rate flexibility beyond that point; and Neel Kashkari, who prefers that the Committee indicate that it expects to maintain the current target range until core inflation has reached 2 percent on a sustained basis.
Compliments of the U.S. Federal Reserve Board.
The post Federal Reserve issues FOMC statement first appeared on European American Chamber of Commerce New York [EACCNY] | Your Partner for Transatlantic Business Resources.

The Council on September 25, 2020 approved €87.4 billion of financial support to 16 member states in the form of EU loans under SURE – a temporary EU instrument to mitigate unemployment risks during the COVID-19 crisis.
The support will help the member states finance the severe increase in public expenditure incurred as of 1 February 2020 as a result of the use of national short-time work schemes and similar measures, including for self-employed persons, and some health-related measures in response to the pandemic. SURE is one of the three safety nets, worth up to €540 billion, that were agreed by the Eurogroup on 9 April 2020 and subsequently endorsed by the EU leaders to protect workers, businesses and sovereigns.
“SURE forms an important part of our response to the unprecedented challenges that the COVID-19 crisis has created. Member states’ considerable interest in this instrument confirms its significance and true added value for workers and companies. Millions of workers across the EU will benefit from this instrument. This is a clear signal that Europe is stronger together.” – Olaf Scholz, Germany’s Federal Minister of Finance and Vice Chancellor
Financial support under SURE is granted to member states as follows:

Belgium –  €7.8 billion
Bulgaria – €511 million
Croatia – €1 billion
Cyprus – €479 million
Czech Republic – €2 billion
Greece – €2.7 billion
Italy – €27.4 billion
Latvia – €193 million
Lithuania – €602 million
Malta – €244 million
Poland – €11.2 billion
Portugal – €5.9 billion
Romania – €4.1 billion
Slovakia – €631 million
Slovenia – €1.1 billion
Spain – €21.3 billion

Other member states can still present their requests for financial assistance. Up to €100 billion can be provided under this EU instrument.
SURE loans are backed by the EU budget and guarantees provided by member states according to their share in the EU’s GNI, for a total amount of €25 billion.
The guarantee agreements with the Commission have been finalised.
Next steps
The Commission will now raise funds on international capital markets on behalf of the EU and provide them as back-to-back loans to the member states that requested the loans.
Compliments of the Council of the European Union.
The post COVID-19: Council approves €87.4 billion in financial support for member states under SURE first appeared on European American Chamber of Commerce New York [EACCNY] | Your Partner for Transatlantic Business Resources.

The European Commission has today launched a new Customs Union Action Plan setting out a series of measures to make EU customs smarter, more innovative and more efficient over the next four years. The announced measures will strengthen the Customs Union as a cornerstone of the Single Market. They also confirm its major role in protecting EU revenues and the security, health and prosperity of EU citizens and businesses.
In her political guidelines, President von der Leyen announced that the Customs Union needed to be taken to the next level, in particular, by ensuring an integrated European approach to customs risk management, which supports effective controls by EU Member States. Today’s Action Plan does just that.
Paolo Gentiloni, Commissioner for Economy, said: “The EU Customs Union was one of the first concrete achievements of European integration and for more than five decades it has helped to protect Europeans and keep trade flowing across our borders – which are only as strong as their weakest link. Today, new challenges mean that we need to make our customs rules smarter and ensure they work better for Member States, citizens and legitimate businesses. This calls for improved use of data, better tools and equipment, and more cooperation within the EU and with customs authorities of partner countries. It also requires better foresight, so that EU customs can face the future with confidence. Today, we set out how we will take our Customs Union to the next level.”
Today’s Action Plan includes a number of initiatives in areas such as risk management, managing e-commerce, the promotion of compliance and customs authorities acting as one:

Risk management: the Action Plan focuses in particular on ensuring greater availability and use of data and data analysis for customs purposes. It calls for intelligent, risk-based supervision of supply chains and for establishing a new analytics hub within the Commission for collecting, analysing and sharing customs data that can inform critical decisions, help customs authorities identify weak points at the EU’s external borders and manage future crises.

Managing e-commerce: in this regard, and in order to tackle the new challenges of e-commerce, obligations on payment service providers and online sales platforms will be strengthened to help fight customs duty and tax fraud in e-commerce.

Promotion of compliance: the upcoming ‘Single Window’ initiative will make it easier for legitimate businesses to complete their border formalities in one single portal. It will allow for more collaborative processing, sharing and exchange of information and better risk assessment for customs authorities.

Customs authorities acting as one: the Action Plan details the roll-out of modern and reliable customs equipment under the next EU budget. A new reflection group formed of Member States and business representatives will be set up to help prepare for future crises and challenges such as unanticipated global developments and future business models.

The EU Customs Union
The EU Customs Union – which in 2018 celebrated its 50th anniversary – forms a single territory for customs purposes, where a common set of rules are applied. Within the EU Customs Union, EU Member States’ customs authorities are responsible for performing a wide and increasing range of controls.
Therefore, EU customs have an important role to play in supporting the EU’s economy and future growth. Customs need to facilitate increasing amounts of legitimate trade as quickly and seamlessly as possible. At the same time, authorities are continuously engaged in fighting growing levels of fraud and smuggling of illicit or unsafe goods. Customs are also playing a vital role in our recovery from an unprecedented health crisis. Since the start of the coronavirus pandemic, EU customs authorities and officials have been at the heart of essential tasks such as facilitating imports of protective equipment, while weeding out counterfeit products like fake masks and counterfeit medicines at the EU’s external borders.
It has become apparent in recent years that Member States’ customs authorities are struggling with the challenges of performing their various roles. Major challenges such as the current public health emergency, the consequences of the UK’s departure from the EU’s Single Market and Customs Union, and the rise of digitalisation and e-commerce will continue and may even increase. To make their full contribution to the wellbeing of all EU citizens and trade facilitation, our customs authorities must be equipped with cutting-edge technical equipment and analytical capacities that allow customs to better predict risky imports and exports. Enhanced customs cooperation with major international trade partners such as China will support our efforts to facilitate trade and, at the same time, ensure effective controls.
Background
The EU’s Customs Union has developed into a cornerstone of our Single Market, keeping EU borders safe, protecting our citizens from prohibited and dangerous goods such as weapons, drugs and environmentally harmful products, while facilitating EU trade with the rest of the world. It also provides revenues for the EU budget. But recently it has become clear that smarter ways of working are needed to allow customs authorities to manage their long and growing list of responsibilities.
The Action Plan benefited from an innovative foresight project on “The Future of Customs in the EU 2040” that worked to create a shared and strategic understanding among key stakeholders of ways to deal with current and future challenges for customs and to generate a vision for how EU customs should look in 2040.
Compliments of the European Commission.
The post Customs Union: New Action Plan to further support EU customs in their vital role of protecting EU revenues, prosperity and security first appeared on European American Chamber of Commerce New York [EACCNY] | Your Partner for Transatlantic Business Resources.

ECB phasing out secured marketable assets other than asset-backed securities, legislative covered bonds and multi-cédulas as collateral
Application process and acceptance criteria for external credit assessment institutions clarified
Amendments to treatment of breaches with respect to own fund requirements and reporting on capital ratios

The European Central Bank (ECB) has today published amendments to its guidelines on the implementation of monetary policy in the Eurosystem, applicable from 1 January 2021.
The amended guidelines implement a decision taken by the Governing Council on 13 December 2019 whereby secured marketable assets other than asset-backed securities and covered bonds would no longer be accepted as Eurosystem collateral. Under the amended guidelines, the ECB will also phase out non-legislative covered bonds (i.e. contractual covered bonds) from the Eurosystem collateral framework. This means that by 1 January 2021 all covered bonds remaining in the collateral framework will be legislative covered bonds or multi-cédulas.
The guidelines also clarify the application process and acceptance criteria for external credit assessment institutions in the Eurosystem credit assessment framework.
They furthermore amend the Eurosystem monetary policy counterparty framework with respect to the treatment of confirmed breaches of minimum own funds requirements and breaches of the obligation to report information on capital ratios within the required deadlines.
Guidelines ECB/2020/45, ECB/2020/46, ECB/2020/47 and Decision ECB/2020/48 are available on the ECB’s website and will be published in 23 official EU languages in the Official Journal of the European Union.

Guideline amending Guideline (EU) 2015/510 on the implementation of the Eurosystem monetary policy framework
28 September 2020: Guideline amending Guideline (EU) 2016/65 on the valuation haircuts applied in the implementation of the Eurosystem monetary policy framework
28 September 2020: Guideline amending Guideline ECB/2014/31 on additional temporary measures relating to Eurosystem refinancing operations and eligibility of collateral
28 September 2020: Decision amending Decision (EU) 2020/187 on the implementation of the third covered bonds purchase programme

Compliments of the European Central Bank.
The post ECB amends monetary policy implementation guidelines first appeared on European American Chamber of Commerce New York [EACCNY] | Your Partner for Transatlantic Business Resources.