As Europe learns to live with the pandemic, the development and swift global deployment of safe and effective vaccines against COVID-19 remains an essential element in the eventual solution to the public health crisis. In this context, the Commission is working to ensure that there will be access to safe vaccines across Europe, and encourages a coordinated approach of vaccination strategies for deployment of the vaccines. Today, ahead of the discussion of EU Leaders, the Commission is presenting the key elements to be taken into consideration by Member States for their COVID-19 vaccination strategies in order to prepare the European Union and its citizens for when a safe and effective vaccine is available, as well as priority groups to consider for vaccination first.
President of the European Commission, Ursula von der Leyen, said: “A safe and effective vaccine is our best shot at beating coronavirus and returning to our normal lives. We have been working hard to make agreements with pharmaceutical companies and secure future doses. Now, we must ensure that once a vaccine is found, we are fully prepared to deploy it. With our Vaccination Strategy, we are helping EU countries prepare their vaccination campaigns: who should be vaccinated first, how to have a fair distribution and how to protect the most vulnerable. If we want our vaccination to be successful, we need to prepare now.”  
Vice-President for Promoting the European Way of Life, Margaritis Schinas, said: “While the evolution of the pandemic is getting back to March levels, our state of preparedness is not. Today we are adopting a milestone in the ongoing EU response to the COVID-19 pandemic; the aim is to ensure safe, affordable and accessible COVID-19 vaccines for all in the EU, once they will become available. It is only by acting together that we will avoid the cacophony and be more efficient than in the past.”
Stella Kyriakides, Commissioner for Health and Food Safety, said: “It is with great concern that I am witnessing the increasingly rapid rise of infection rates all across the EU. Time is running out – everyone’s first priority should be to do what it takes to avoid the devastating consequences of generalised lockdowns. And we must all prepare for the next steps. The vaccine will not be a silver bullet, but it will play a central role to save lives and contain the pandemic. And when and if a safe and efficient vaccine is found, we need to be prepared to roll it out as quickly as possible, including building citizens’ trust in its safety and efficacy. Vaccines will not save lives – vaccinations will.”
In line with the 17 June EU Vaccines Strategy, the European Commission and Member States are securing the production of vaccines against COVID-19 through Advance Purchase Agreements with vaccine producers in Europe. Any vaccine will need to be authorised by the European Medicine Agency according to regular safety and efficacy standards. Member States should now start preparing a common vaccination strategy for vaccine deployment.
Member States should, among others, ensure:

capacity of vaccination services to deliver COVID-19 vaccines, including skilled workforce and medical and protective equipment;
easy and affordable access to vaccines for target populations;
deployment of vaccines with different characteristics and storage and transport needs, in particular in terms of cold chain, cooled transport and storage capacity;
clear communication on the benefits, risks and importance of COVID-19 vaccines to build public trust.

All Member States will have access to COVID-19 vaccines at the same time on the basis of population size. The overall number of vaccine doses will be limited during the initial stages of deployment and before production can be ramped up. The Communication therefore provides examples of unranked priority groups to be considered by countries once COVID-19 vaccines become available, including:

healthcare and long-term care facility workers;
persons over 60 years of age;
persons whose state of health makes them particularly at risk;
essential workers;
persons who cannot socially distance;
more disadvantaged socio-economic groups.

Whilst awaiting the arrival of approved vaccines against COVID-19, and in parallel to safeguarding the continuation of other essential healthcare and public health services and programmes, the EU must continue mitigating the transmission of the virus. This can be done through the protection of vulnerable groups and ensuring that citizens adhere to public health measures. Until then and most likely also throughout the initial vaccination rollout phases, non-pharmaceutical interventions, such as physical distancing, closure of public places and adapting the work environment, [1] will continue to serve as the main public health tools to control and manage COVID-19 outbreaks.
Background
As Europe moves to the next stage of the COVID-19 pandemic, it is even more imperative that countries follow common vaccination strategies and approaches. At the Special European Council meeting of 2 October, Member States called on the Council and Commission to further step up the overall coordination effort and the work on the development and distribution of vaccines at EU level[2].
On 24 September, the European Centre for Disease Prevention and Control (ECDC) published its updated risk assessment regarding the COVID-19 pandemic, alongside a set of guidelines for non-pharmaceutical interventions (such as hand hygiene, physical distancing, cleaning and ventilation).
As stressed by President von der Leyen in the State of the Union 2020 Address, Europe needs to continue to handle the COVID-19 pandemic with extreme care, responsibility and unity, and use the lessons learnt to strengthen the EU’s crisis preparedness and management of cross-border health threats.
On 15 July, the Commission adopted a Communication on short-term EU health preparedness, calling on Member States to have prevention, preparedness and response measures ready in case of future COVID-19 outbreaks. The Communication made a set of recommendations to achieve this, in the areas of e.g. testing, contact tracing and health system capacities. The effective implementation of these measures requires coordination and effective information exchange between Member States. The recommendations provided in the Strategy are still relevant and Member States are encouraged to follow them.
One of the main action points necessary for Europe to overcome the coronavirus pandemic is accelerating the development, manufacturing, and deployment of vaccines against COVID-19. The EU’s vaccines strategy published in June charts the way forward.
Vaccine safety, quality and efficacy are the cornerstones of any vaccine development and authorisation process, and vaccine developers are required to submit extensive documentation and data to the European Medicines Agency through the EU Marketing Authorisation procedure. After authorisation, EU law requires that the safety of the vaccine as well as its effectiveness be monitored. Further evidence will need to be centrally collected to assess the impact and effectiveness of COVID-19 vaccines once rolled out in the population from a public health perspective. This will be key to overcoming the pandemic and instilling confidence in Europeans.
Compliments of the European Commission.
The post Coronavirus: EU Commission lists key steps for effective vaccination strategies and vaccines deployment first appeared on European American Chamber of Commerce New York [EACCNY] | Your Partner for Transatlantic Business Resources.

Today, the European Commission adopted the EU Chemicals Strategy for Sustainability. The Strategy is the first step towards a zero pollution ambition for a toxic-free environment announced in the European Green Deal. The Strategy will boost innovation for safe and sustainable chemicals, and increase protection of human health and the environment against hazardous chemicals. This includes prohibiting the use of the most harmful chemicals in consumer products such as toys, childcare articles, cosmetics, detergents, food contact materials and textiles, unless proven essential for society, and ensuring that all chemicals are used more safely and sustainably.
Chemicals Strategy fully recognises the fundamental role of chemicals for human well-being and for the green and digital transition of European economy and society. At the same time it acknowledges the urgent need to address the health and environmental challenges caused by the most harmful chemicals. In this spirit, the Strategy sets out concrete actions to make chemicals safe and sustainable by design and to ensure that chemicals can deliver all their benefits without harming the planet and current and future generations. This includes ensuring that the most harmful chemicals for human health and the environment are avoided for non-essential societal use, in particular in consumer products and with regard to most vulnerable groups, but also that all chemicals are used more safely and sustainably. Several innovation and investment actions will be foreseen to accompany the chemicals industry through this transition. The Strategy also draws the attention of Member States to the possibilities of the Recovery and Resilience Facility to invest in the green and digital transition of EU industries, including in the chemical sector. 
Increasing protection of health and the environment
The Strategy aims to significantly increase the protection of human health and the environment from harmful chemicals, paying particular attention to vulnerable population groups. Flagship initiatives include in particular:

Phasing out from consumer products, such as toys, childcare articles, cosmetics, detergents, food contact materials and textiles, the most harmful substances, which include among others endocrine disruptors, chemicals that affect the immune and respiratory systems, and persistent substances such as per- and polyfluoroalkyl substances (PFAS), unless their use is proven essential for society;
Minimising and substituting as far possible the presence of substances of concern in all products. Priority will be given to those product categories that affect vulnerable populations and those with the highest potential for circular economy;
Addressing the combination effect of chemicals (cocktail effect) by taking better account of the risk that is posed to human health and the environment by daily exposure to a wide mix of chemicals from different sources;
Ensuring that producers and consumers have access to information on chemical content and safe use, by introducing information requirements in the context of the Sustainable Product Policy Initiative.

Boosting innovation and promoting EU’s competitiveness
Making chemicals safer and more sustainable is a continued necessity as well as a great economic opportunity. The Strategy aims to capture this opportunity and enable the green transition of the chemicals sector and its value chains. As far as possible, new chemicals and materials must be safe and sustainable by design i.e. from production to end of life. This will help avoid the most harmful effects of chemicals and ensure the lowest possible impact on climate, resource use, ecosystems and biodiversity. The Strategy envisages the EU industry as a globally competitive player in the production and use of safe and sustainable chemicals. The actions announced in the Strategy will support industrial innovation so that such chemicals become the norm on the EU market and a benchmark worldwide. This will be done mainly by:

Developing safe-and-sustainable-by-design criteria and ensuring financial support for the commercialisation and uptake of safe and sustainable chemicals;
Ensuring the development and uptake of safe and sustainable-by-design substances, materials and products through EU funding and investment instruments and public-private partnerships;
Considerably stepping up enforcement of EU rules both at the borders and in the single market;
Putting in place an EU research and innovation agenda for chemicals, to fill knowledge gaps on the impact of chemicals, promote innovation and move away from animal testing;
Simplifying and consolidating the EU legal framework – e.g. by introducing the ‘One substance one assessment’ process, strengthening the principles of ‘no data, no market’ and introducing targeted amendments to REACH and sectorial legislation, to name a few.

The Commission will also promote safety and sustainability standards globally, in particular by leading by example and promoting a coherent approach aiming that hazardous substances that are banned in the EU are not produced for exports.
Executive Vice-President for the European Green Deal Frans Timmermans said: “The Chemicals Strategy is the first step towards Europe’s zero pollution ambition. Chemicals are part and parcel of our daily life, and they allow us to develop innovative solutions for greening our economy. But we need to make sure that chemicals are produced and used in a way that does not hurt human health and the environment. It is especially important to stop using the most harmful chemicals in consumer products, from toys and childcare products to textiles and materials that come in contact with our food”.
Commissioner for the Environment, Oceans and Fisheries Virginijus Sinkevicius said: “We owe our well-being and high living standards to the many useful chemicals that people have invented over the past 100 years. However, we cannot close our eyes to the harm that hazardous chemicals pose to our environment and health. We have come a long way regulating chemicals in the EU, and with this Strategy we want to build on our achievements and go further to prevent the most dangerous chemicals from entering into the environment and our bodies, and affecting especially the most fragile and vulnerable ones.”
Commissioner for Health and Food Safety Stella Kyriakides said: “Our health should always come first. That is exactly what we have ensured in a Commission flagship initiative such as the Chemical Strategy. Chemicals are essential for our society and they must be safe and sustainably produced. But we need to be protected from the harmful chemicals around us. This Strategy shows our high level of commitment and our determination to protect the health of citizens, across the EU.”
Background
In 2018, Europe was the second biggest producer of chemicals (accounting for 16.9% of sales). Chemical manufacturing is the fourth largest industry in the EU, directly employing approximately 1.2 million people. 59% of chemicals produced are directly supplied to other sectors, incl. health, construction, automotive, electronics, and textiles. Global chemicals production is expected to double by 2030, and the already widespread use of chemicals is likely to also increase, including in consumer products.
The EU has a sophisticated chemicals legislation, which has generated the most advanced knowledge base on chemicals in the world and set up scientific bodies to carry out the risk and hazard assessments of chemicals. The EU has also managed to reduce the risks to people and the environment for certain hazardous chemicals like carcinogens.
Yet, EU’s chemicals policy needs to be further strengthened to take into account the latest scientific knowledge and citizens concerns. Many chemicals can harm the environment and human health, including future generations. They can interfere with ecosystems and weaken human resilience and capacity to respond to vaccines. Human biomonitoring studies in the EU point to a growing number of different hazardous chemicals in human blood and body tissue, including certain pesticides, biocides, pharmaceuticals, heavy metals, plasticisers and flame retardants. Combined prenatal exposure to several chemicals has led to reduced foetal growth and lower birth rates.
Compliments of the European Commission.
The post Green Deal: EU Commission adopts new Chemicals Strategy towards a toxic-free environment first appeared on European American Chamber of Commerce New York [EACCNY] | Your Partner for Transatlantic Business Resources.

The European Commission has published today its Renovation Wave Strategy to improve the energy performance of buildings. The Commission aims to at least double renovation rates in the next ten years and make sure renovations lead to higher energy and resource efficiency. This will enhance the quality of life for people living in and using the buildings, reduce Europe’s greenhouse gas emissions, foster digitalisation and improve the reuse and recycling of materials. By 2030, 35 million buildings could be renovated and up to 160,000 additional green jobs created in the construction sector.
Buildings are responsible for about 40% of the EU’s energy consumption, and 36% of greenhouse gas emissions. But only 1% of buildings undergo energy efficient renovation every year, so effective action is crucial to making Europe climate-neutral by 2050. With nearly 34 million Europeans unable to afford keeping their homes heated, public policies to promote energy efficient renovation are also a response to energy poverty, support the health and wellbeing of people and help reduce their energy bills. The Commission has also published today a Recommendation for Member States on tackling energy poverty.
Executive Vice-President for the European Green Deal, Frans Timmermans said: “We want everyone in Europe to have a home they can light, heat, or cool without breaking the bank or breaking the planet. The Renovation Wave will improve the places where we work, live and study, while reducing our impact on the environment and providing jobs for thousands of Europeans. We need better buildings if we want to build back better.”
Commissioner for Energy, Kadri Simson, said: “The green recovery starts at home. With the Renovation Wave we will tackle the many barriers that today make renovation complex, expensive and time consuming, holding back much needed action. We will propose better ways to measure renovation benefits, minimum energy performance standards, more EU funding and technical assistance encourage green mortgages and support more renewables in heating and cooling. This will be a game changer for home-owners, tenants and public authorities.”
The strategy will prioritise action in three areas: decarbonisation of heating and cooling; tackling energy poverty and worst-performing buildings; and renovation of public buildings such as schools, hospitals and administrative buildings. The Commission proposes to break down existing barriers throughout the renovation chain – from the conception of a project to its funding and completion – with a set of policy measures, funding tools and technical assistance instruments.
The strategy will include the following lead actions:

Stronger regulations, standards and information on the energy performance of buildings to set better incentives for public and private sector renovations, including a phased introduction of mandatory minimum energy performance standards for existing buildings, updated rules for Energy Performance Certificates, and a possible extension of building renovation requirements for the public sector;
Ensuring accessible and well-targeted funding, including through the ‘Renovate’ and ‘Power Up’ Flagships in the Recovery and Resilience Facility under NextGenerationEU, simplified rules for combining different funding streams, and multiple incentives for private financing;

Increasing capacity to prepare and implement renovation projects, from technical assistance to national and local authorities through to training and skills development for workers in new green jobs;
Expanding the market for sustainable construction products and services, including the integration of new materials and nature-based solutions, and revised legislation on marketing of construction products and material reuse and recovery targets;
Creating a New European Bauhaus, an interdisciplinary project co-steered by an advisory board of external experts including scientists, architects, designers, artists, planners and civil society. From now until summer 2021 the Commission will conduct a broad participatory co-creation process, and will then set up of a network of five founding Bauhaus in 2022 in different EU countries.
Developing neighbourhood-based approaches for local communities to integrate renewable and digital solutions and create zero-energy districts, where consumers become prosumers selling energy to the grid. The strategy also includes an Affordable Housing Initiative for 100 districts.

The review of the Renewable Energy Directive in June 2021 will consider strengthening the renewable heating and cooling target and introducing a minimum renewable energy level in buildings. The Commission will also examine how the EU budget resources alongside the EU Emissions Trading System (EU ETS) revenues could be used to fund national energy efficiency and savings schemes targeting lower income populations. The Ecodesign Framework will be further developed to provide efficient products for use in buildings and promote their use.
The Renovation Wave is not only about making the existing buildings more energy efficient and climate neutral. It can trigger a large-scale transformation of our cities and built environment. It can be an opportunity to start a forward-looking process to match sustainability with style. As announced by President von der Leyen, the Commission will launch the New European Bauhaus to nurture a new European aesthetic that combines performance with inventiveness. We want to make liveable environments accessible to everyone, and again marry the affordable with the artistic, in a newly sustainable future.
Background
The COVID-19 crisis has turned the spotlight on our buildings, their importance in our daily lives and their fragilities. Throughout the pandemic, the home has been the focal point of daily life for millions of Europeans: an office for those teleworking, a make-shift nursery or classroom for children and pupils, for many a hub for online shopping or entertainment.
Investing in buildings can inject a much-needed stimulus into the construction sector and the macro-economy. Renovation works are labour-intensive, create jobs and investments rooted in often local supply chains, generate demand for highly energy-efficient equipment, increase climate resilience and bring long-term value to properties.
To achieve the at least 55% emissions reduction target for 2030, proposed by the Commission in September 2020, the EU must reduce buildings’ greenhouse gas emissions by 60%, their energy consumption by 14%, and the energy consumption of heating and cooling by 18%.
European policy and funding has already had a positive impact on the energy efficiency of new buildings, which now consume only half the energy of those built over 20 years ago. However, 85% of buildings in the EU were built over 20 years ago, and 85-95% are expected to still be standing in 2050. The Renovation Wave is needed to bring them up to similar standards.
Compliments of the European Commission.
The post Renovation Wave: doubling the renovation rate to cut emissions, boost recovery and reduce energy poverty first appeared on European American Chamber of Commerce New York [EACCNY] | Your Partner for Transatlantic Business Resources.

Today, the World Trade Organization (WTO) allowed the EU to raise tariffs up to $4 billion worth of imports from the U.S. as a countermeasure for illegal subsidies to the American aircraft maker, Boeing. The decision builds upon the WTO’s earlier findings recognising the U.S. subsidies to Boeing as illegal under the WTO law.
Executive Vice-President for an Economy that Works for People and Commissioner for Trade, Valdis Dombrovskis, said: “This long-awaited decision allows the European Union to impose tariffs on American products entering Europe. I would much prefer not to do so – additional duties are not in the economic interest of either side, particularly as we strive to recover from the Covid-19 recession. I have been engaging with my American counterpart, Ambassador Lighthizer, and it is my hope that the U.S. will now drop the tariffs imposed on EU exports last year. This would generate positive momentum both economically and politically, and help us to find common ground in other key areas. The EU will continue to vigorously pursue this outcome. If it does not happen, we will be forced to exercise our rights and impose similar tariffs. While we are fully prepared for this possibility, we will do so reluctantly.”
In October last year, following a similar WTO decision in a parallel case on Airbus subsidies, the U.S. imposed retaliatory duties that affect EU exports worth $7.5 billion. These duties are still in place today, despite the decisive steps taken by France and Spain in July this year [LINK] to follow suit Germany and the UK in ensuring that they fully comply with an earlier WTO decision on subsidies to Airbus.
Under the current economic circumstances, it is in the mutual interest of the EU and the U.S. to discontinue damaging tariffs that unnecessarily burden our industrial and agricultural sectors.
The EU has made specific proposals to reach a negotiated outcome to the long running transatlantic civil aircraft disputes, the longest in the history of the WTO. It remains open to work with the U.S. to agree a fair and balanced settlement, as well as on future disciplines for subsidies in the civil aircraft sector.
While engaging with the U.S., the European Commission is also taking appropriate steps and involving EU Member States so that it can use its retaliation rights in case there is no prospect of bringing the dispute to a mutually beneficial solution. This contingency planning includes finalising the list of products that would become subject to EU additional tariffs.
Background
In March 2019, the Appellate Body, the highest WTO instance, confirmed that the U.S. had not taken appropriate action to comply with WTO rules on subsidies, despite the previous rulings. Instead, it continued its illegal support of its aircraft manufacturer Boeing to the detriment of Airbus, the European aerospace industry and its many workers. In its ruling, the Appellate Body:

confirmed the Washington State tax programme continues to be a central part of the U.S. unlawful subsidisation of Boeing;
found that a number of ongoing instruments, including certain NASA and U.S. Department of Defence procurement contracts constitute subsidies that may cause economic harm to Airbus;
confirmed that Boeing continues to benefit from an illegal U.S. tax concession that supports exports (the Foreign Sales Corporation and Extraterritorial Income Exclusion).

Today’s decision confirming the EU right to retaliate stems directly from that previous decision.
In a parallel case on Airbus, the WTO allowed the United States in October 2019 to take countermeasures against European exports worth up to $7.5 billion. This award was based on an Appellate Body decision of 2018 that had found that the EU and its Member States had not fully complied with the previous WTO rulings with regard to Repayable Launch Investment for the A350 and A380 programmes. The U.S. imposed these additional tariffs on 18 October 2019. The EU Member States concerned have taken in the meantime all necessary steps to ensure full compliance.
Compliments of the European Commission.
The post Boeing subsidy case: World Trade Organization confirms EU right to retaliate against billion of U.S. imports first appeared on European American Chamber of Commerce New York [EACCNY] | Your Partner for Transatlantic Business Resources.

The international community has made substantial progress towards reaching a consensus-based long-term solution to the tax challenges arising from the digitalisation of the economy, and agreed to keep working towards an agreement by mid-2021, according to a Statement released today.
The OECD/G20 Inclusive Framework on BEPS, which groups 137 countries and jurisdictions on an equal footing for multilateral negotiation of international tax rules, agreed during its 8-9 October meeting that the two-pillar approach they have been developing since 2019 provides a solid foundation for a future agreement.
Recognising that the negotiations have been slowed by both the COVID-19 pandemic and political differences, Inclusive Framework members said that the blueprints of the two-pillar approach released today reflect convergent views on key policy features, principles and parameters for a future agreement. They identified remaining political and technical issues where differences of views remain to be bridged, and next steps in the multilateral process.
Participants approved for public consultation a new Blueprint for Pillar One of the project, which would establish new rules on where tax should be paid (“nexus” rules) and a fundamentally new way of sharing taxing rights between countries. The aim is ensure that digitally-intensive or consumer-facing Multinational Enterprises (MNEs) pay taxes where they conduct sustained and significant business, even when they do not have a physical presence, as is currently required under existing tax rules.
Participants also approved for public consultation a new Blueprint for Pillar Two of the project, which would introduce a global minimum tax that would help countries around the world address remaining issues linked to base erosion and profit shifting by MNEs.
The absence of a consensus-based solution, on the other hand, could lead to a proliferation of unilateral digital services taxes and an increase in damaging tax and trade disputes, which would undermine tax certainty and investment, the OECD said. Under a worst-case scenario – a global trade war triggered by unilateral digital services taxes worldwide – the failure to reach agreement could reduce global GDP by more than 1% annually.
“It is clear that new rules are urgently needed to ensure fairness and equity in our tax systems, and to adapt the international tax architecture to new and changing business models. Without a global, consensus-based solution, the risk of further uncoordinated, unilateral measures is real, and growing by the day,” said OECD Secretary-General Angel Gurría. “It is imperative that we take this work across the finish line. Failure would risk tax wars turning into trade wars at a time when the global economy is already suffering enormously.”
A new economic impact analysis released today shows the combined effect of the two-pillar solution under discussion. Up to 4% of global corporate income tax (CIT) revenues, or USD 100 billion of revenue gains annually, could result from implementation of the global minimum tax under Pillar Two. The analysis also shows that a further USD 100 billion could be redistributed to market jurisdictions through Pillar One plans to ensure a fairer international tax framework.
The ongoing work will be presented in a new OECD Secretary-General Tax Report and discussed during the next meeting of G20 Finance Ministers and Central Bank Governors, under the Saudi Arabian Presidency, on 14 October.
For more information on the OECD/G20 BEPS Project, and to access a highlights brochure and FAQs, visit: www.oecd.org/tax/beps/beps-actions/action1/.
Watch the live webcast of the press conference
Compliments of the OECD.
The post OECD | International community renews commitment to address tax challenges from digitalisation of the economy first appeared on European American Chamber of Commerce New York [EACCNY] | Your Partner for Transatlantic Business Resources.

Today, the Commission announces the first provisional results of the implementation of the Coronavirus Response Investment Initiative (CRII) and Coronavirus Response Investment Initiative Plus (CRII+).
From the beginning of the crisis, and thanks to the flexibility introduced in the Cohesion Policy, the EU mobilised over €13 billion in investments to tackle the effects of the coronavirus pandemic, through the European Regional Development Fund (ERDF), the European Social Fund (ESF) and the Cohesion Fund (CF). The EU funds helped national, regional and local communities in countering the negative socio-economic impact of the coronavirus pandemic.
In total, €4.1 billion have been reallocated towards healthcare to purchase vital machinery and personal protective equipment to save lives. €8.4 billion have been mobilised through issuing grants, loans and a series of personalised financial instruments to support the economy and, in particular, Small and Medium enterprises (SMEs) to adapt to the crisis. Finally, around €1.4 billion have been channelled through the ESF to help people and save jobs.
To ensure maximum transparency and accountability, the Commission launches today a dedicated webpage on the Cohesion Open Data Platform to show how the EU Cohesion policy is supporting Member States to overcome the coronavirus crisis. With daily updates, the platform will show all information regarding programme amendments, where the resources are going and how these are invested. With a constant update, the overview of the platform will become everyday more complete.
Commissioner for Cohesion and Reforms, Elisa Ferreira, said: “Cohesion policy is at the heart of fighting the coronavirus pandemic and ensuring a rapid recovery. The results of our stocktaking show that all Member States are taking advantage of the Coronavirus Response Investment Initiative for the benefit of citizens, businesses and the health sector. As from today, such successful results are clearly visible to everyone on our interactive Coronavirus Dashboard, at just a click away.”
President of the European Committee of the Regions, Apostolos Tzitzikostas, added: “Thanks to simplified rules, cohesion policy has shown its added value bringing together EU’s Member States, regions and cities, to protect our people, save jobs and preserve local economies during the pandemic. We need to treasure this lesson making easier the access to EU funds and involving all levels of government to shape and deliver recovery plans. To get the utmost out of every invested euro and ensure that money goes where it is needed the most, we need cohesion to be the guiding compass for all EU investments.”
Background
The Coronavirus Response Investment Initiative (CRII) and Coronavirus Response Investment Initiative Plus (CRII+)  allow Member States to benefit from a temporary increase of the EU co–financing up to 100% and to use Cohesion policy funding to support the most exposed sectors because of the pandemic, such as healthcare, SMEs and labour markets.
Compliments of the European Commission.
The post Coronavirus Dashboard: EU Cohesion Policy response to the coronavirus crisis first appeared on European American Chamber of Commerce New York [EACCNY] | Your Partner for Transatlantic Business Resources.

Today the Council adopted a recommendation on a coordinated approach to the restrictions of free movement in response to the COVID-19 pandemic. This recommendation aims to avoid fragmentation and disruption, and to increase transparency and predictability for citizens and businesses.

The COVID-19 pandemic has disrupted our daily lives in many ways. Travel restrictions have made it difficult for some of our citizens to get to work, to university or to visit their loved ones. It is our common duty to ensure coordination on any measures which affect free movement and to give our citizens all the information they need when deciding on their travel.
Michael Roth, Germany’s Minister of State for Europe

Any measures restricting free movement to protect public health must be proportionate and non-discriminatory, and must be lifted as soon as the epidemiological situation allows.
Common criteria and mapping
Every week, member states should provide the European Centre for Disease Prevention and Control (ECDC) with the data available on the following criteria:

number of newly notified cases per 100 000 population in the last 14 days
number of tests per 100 000 population carried out in the last week (testing rate)
percentage of positive tests carried out in the last week (test positivity rate)

Based on this data, the ECDC should publish a weekly map of EU member states, broken down by regions, to support member states in their decision-making. Areas should be marked in the following colours:

green if the 14-day notification rate is lower than 25 and the test positivity rate below 4%

orange if the 14-day notification rate is lower than 50 but the test positivity rate is 4% or higher or, if the 14-day notification rate is between 25 and150 and the test positivity rate is below 4%

red if the 14-day notification rate is 50 or higher and the test positivity rate is 4% or higher or if the 14-day notification rate is higher than 150

grey if there is insufficient information or if the testing rate is lower than 300 

Free movement restrictions
Member states should not restrict the free movement of persons travelling to or from green areas.
If considering whether to apply restrictions, they should respect the differences in the epidemiological situation between orange and red areas and act in a proportionate manner. They should also take into account the epidemiological situation in their own territory.
Member states should in principle not refuse entry to persons travelling from other member states. Those member states that consider it necessary to introduce restrictions could require persons travelling from non-green areas to:

undergo quarantine
undergo a test after arrival

Member states may offer the option of replacing this test with a test carried out before arrival.
Member states could also require persons entering their territory to submit passenger locator forms. A common European passenger locator form should be developed for possible common use.
Coordination and information to the public
Member states intending to apply restrictions should inform the affected member state first, prior to entry into force, as well as other member states and the Commission. If possible the information should be given 48 hours in advance.
Member states should also provide the public with clear, comprehensive and timely information on any restrictions and requirements. As a general rule, this information should be published 24 hours before the measures come into effect.
Background information
The decision on whether to introduce restrictions to free movement to protect public health remains the responsibility of member states; however, coordination on this topic is essential. Since March 2020 the Commission has adopted a number of guidelines and communications with the aim of supporting member states’ coordination efforts and safeguarding free movement within the EU. Discussions on this topic have also taken place within the Council.
On 4 September, the Commission presented a draft Council recommendation on a coordinated approach to restrictions to freedom of movement.
The Council recommendation is not a legally binding instrument. The authorities of the member states remain responsible for implementing the content of the recommendation.
Compliments of the Council of the European Union.
The post COVID-19: EU Council adopts a recommendation to coordinate measures affecting free movement first appeared on European American Chamber of Commerce New York [EACCNY] | Your Partner for Transatlantic Business Resources.

MEPs voted for changes at the European Commission, more ambitious climate targets, and discussed the rule of law in EU countries during the 5-8 October plenary session in Brussels.
On Wednesday, Parliament approved the appointment of Mairead McGuinness as commissioner for financial services, financial stability and the Capital Markets Union as well as Executive Vice-President Valdis Dombrovskis’ change of portfolio to include responsibility for trade.
MEPs called on Wednesday for reinforcement of the rule of law across Europe through a new mechanism linking receipt of EU funds by a member state to respect for the rule of law. In a separate vote, they called for EU values to be fully and unconditionally respected in Bulgaria.
All EU countries must become climate neutral by 2050, MEPs said in a vote on the EU climate law. Parliament also called for a 2030 emissions reduction target of 60% (compared to 1990 levels) and an interim target for 2040 to ensure the Union is on track to reach its mid-century goal of climate neutrality. In a separate vote, MEPs called for the EU to promote forest management models that ensure forests are environmentally and economically sustainable.
Members also discussed Brexit and the economic recovery in a debate with Council President Charles Michel on last week’s EU summit and the upcoming one on 15-16 October.
On Thursday, MEPs called for EU countries to take stronger action to counter the impact of the Covid-19 crisis on young people by ensuring that those who register for the Youth Guarantee schemes are offered “good-quality, varied and tailored jobs, training or internships”.
Regarding Brexit, MEPs endorsed two proposals on Thursday concerning the Channel Tunnel with the goal of maintaining the same set of rules governing the whole railway tunnel once the UK has the status of a third country.
This week’s plenary also approved a deal struck with the Council on common rules to boost EU crowdfunding platforms and protect investors. The new single set of rules aims to help crowdfunding services function smoothly across the internal market and to foster cross-border business funding.
On Thursday, with public health in mind, MEPs objected Commission proposals on food products containing titanium dioxide and acrylamide.
Compliments of the European Parliament.
The post Plenary highlights: Commission changes, EU budget and climate law first appeared on European American Chamber of Commerce New York [EACCNY] | Your Partner for Transatlantic Business Resources.

October 06, 2020 | Speech by Kristalina Georgieva, IMF Managing Director | Washington, D.C.
As prepared for delivery
1. Introduction: A World Turned Upside Down
Dear Minouche, thank you for the warm welcome! I am honored to celebrate with all of you the 125th anniversary of the London School of Economics. It is a proud moment for the students and faculty, and for the alumni.
As an alumna of LSE and as Managing Director of the IMF, I know that our institutions share so many of the same values. I was reminded of that last year, when I saw a large new sculpture—the globe—on the LSE campus. We are connected by our global perspective, by caring deeply about the world we live in and its future.
Mark Wallinger’s sculpture could not symbolize any better what we are facing today: our world is turned upside down by the pandemic—by the loss of more than a million lives, by the economic impact on billions of people. In low-income countries, the shocks are so profound that we face the risk of a “lost generation.”
To confront this crisis, we can take inspiration from a previous generation. William Beveridge, a former LSE Director, issued his famous report in 1942, which led to the creation of the UK’s National Health Service. And in 1944, John Maynard Keynes and Harry Dexter White led the establishment of the Bretton Woods system—including the IMF and the World Bank.
They forged a better world in the worst possible moment, in the midst of war. We need the same spirit now for the post-pandemic world—build one that is more inclusive and more resilient.
That will be the focus of the IMF’s 189 member countries when we meet in our virtual Annual Meetings next week. It is what I will concentrate on today.
2. Global Outlook: The Long Ascent
First, let’s look at the economic picture. Global economic activity took an unprecedented fall in the second quarter of this year, when about 85 percent of the world economy was in lockdown for several weeks.
The IMF in June projected a severe global GDP contraction in 2020. The picture today is less dire. We now estimate that developments in the second and third quarters were somewhat better than expected, allowing for a small upward revision to our global forecast for 2020. And we continue to project a partial and uneven recovery in 2021. You will see our updated forecast next week.
We have reached this point, largely because of extraordinary policy measures that put a floor under the world economy. Governments have provided around $12 trillion in fiscal support to households and firms. And unprecedented monetary policy actions have maintained the flow of credit, helping millions of firms to stay in business.
But some were able to do more than others. For advanced economies, it is whatever it takes. Poorer nations strive for whatever is possible.
This gap in response capacity is one reason why we see differentiated outcomes. Another reason is the effectiveness of measures to contain the pandemic and restart economic activities. For many advanced economies, including the United States and the Euro Area, the downturn remains extremely painful, but it’s less severe than expected. China is experiencing a faster-than-expected recovery. Others are still hurting badly, and some of our revisions are on the downside.
Emerging markets and low-income and fragile states continue to face a precarious situation. They have weaker health systems. They are highly exposed to the most affected sectors, such as tourism and commodity exports. And they are highly dependent on external financing. Abundant liquidity and low interest rates helped many emerging markets to regain access to borrowing—but not a single country in Sub-Saharan Africa has issued external debt since March.
So, my key message is this: The global economy is coming back from the depths of the crisis. But this calamity is far from over. All countries are now facing what I would call “The Long Ascent”—a difficult climb that will be long, uneven, and uncertain. And prone to setbacks.
As we embark on this “ascent,” we are all joined by a single rope—and we are only as strong as the weakest climbers. They will need help on the way up.
The path ahead is clouded with extraordinary uncertainty. Faster progress on health measures, such as vaccines and therapies, could speed up the “ascent”. But it could also get worse, especially if there is a significant increase in severe outbreaks.
Risks remain high, including from rising bankruptcies and stretched valuations in financial markets. And many countries have become more vulnerable. Their debt levels have increased because of their fiscal response to the crisis and the heavy output and revenue losses. We estimate that global public debt will reach a record-high of about 100 percent of GDP in 2020.
There is also now the risk of severe economic scarring from job losses, bankruptcies, and the disruption of education. Because of this loss of capacity, we expect global output to remain well below our pre-pandemic projections over the medium term. For almost all countries, this will be a setback to the improvement of living standards.
This crisis has also made inequality even worse because of its disproportionate impact on low-skilled workers, women, and young people. There are clearly winners and losers—and we risk ending up with a Tale of Two Cities. We need to find a way out.
3. The Path Forward: Confronting the Crisis and Pushing for Transformations
So, what is the path forward? We see four immediate priorities:

First, defend people’s health. Spending on treatment, testing, and contact tracing is an imperative. So too is stronger international cooperation to coordinate vaccine manufacturing and distribution, especially in the poorest countries. Only by defeating the virus everywhere can we secure a full economic recovery anywhere.

Second, avoid premature withdrawal of policy support. Where the pandemic persists, it is critical to maintain lifelines across the economy, to firms and workers — such as tax deferrals, credit guarantees, cash transfers, and wage subsidies. Equally important is continued monetary accommodation and liquidity measures to ensure the flow of credit, especially to small and medium-sized firms—thus supporting jobs and financial stability. Cut the lifelines too soon, and the Long Ascent becomes a precipitous fall.

Third, flexible and forward-leaning fiscal policy will be critical for the recovery to take hold. This crisis has triggered profound structural transformations, and governments must play their role in reallocating capital and labor to support the transition. This will require both stimuli for job creation, especially in green investment, and cushioning the impact on workers: from retraining and reskilling, to expanding the scope and duration of unemployment insurance. Safeguarding social spending will be critical for a just transition to new jobs.

Fourth, deal with debt—especially in low-income countries. They entered this crisis with already high debt levels, and this burden has only become heavier. If they are to fight the crisis and maintain vital policy support; if they are to prevent the reversal of development gains made over decades, they will need more help—and fast. This means access to more grants, concessional credit and debt relief, combined with better debt management and transparency. In some cases, global coordination to restructure sovereign debt will be necessary, with full participation of public and private creditors.

In all these areas, our member countries can count on the IMF. We will help them all the way up the mountain. We will strive to be their ‘sherpa,’ We will help show the way with sound policy advice. We will provide the training some may need. And above all, we will be there with financial support and help ease the debt burden for those who otherwise may not make it.
We have provided financing at unprecedented speed and scale to 81 countries. We have reached over $280 billion in lending commitments—more than a third of that approved since March. And we are ready to do more: we still have substantial resources from our 1 trillion in total lending capacity to put at the service of our members as they embark on their “ascent.”
Again, this will be a difficult climb. It requires new paths up the mountain. We cannot afford simply to rebuild the old economy, with its low growth, low productivity, high inequality, and worsening climate crisis.
That is why we need fundamental reforms to build a more resilient economy—one that is greener, smarter, more inclusive—more dynamic. This is where we need to direct the massive investments that will be required for a strong and sustainable recovery.
New IMF research shows that increasing public investment by just 1 percent of GDP across advanced and emerging nations can create up to 33 million new jobs.
We know that, in many cases, well-designed green projects can generate more employment and deliver higher returns, compared with conventional fiscal stimulus.
We also know that an accelerated digital transformation is underway, promising higher productivity and new jobs with higher wages. We can unlock this potential by retooling tax systems and investing in education and digital infrastructure. Our goal must be for everyone to have access to the internet and the skills to succeed in the 21 st century economy.
4. Conclusion: Keep Climbing!
All this can be done—because we know that previous generations had the courage and resolve to climb the mountains they faced. It is now our turn; this is our mountain.
As one climber put it: “Every mountain top is within reach if you just keep climbing.”
The same goes for the Long Ascent and the polices needed to move forward. Joined by a single rope, we can overcome the crisis and achieve a more prosperous and more resilient world for all.
Thank you very much!
Compliments of the IMF.
The post IMF | The Long Ascent: Overcoming the Crisis and Building a More Resilient Economy first appeared on European American Chamber of Commerce New York [EACCNY] | Your Partner for Transatlantic Business Resources.