Today, the first contract the European Commission has negotiated on behalf of the EU Member States with a pharmaceutical company entered into force following the formal signature between AstraZeneca and the Commission. The contract will allow the purchase of a vaccine against COVID-19 for all the Member States of the EU as well as the donation to lower and middle income countries or the re-direction to other European countries.
Through the contract, all Member States will be able to purchase 300 million doses of the AstraZeneca vaccine, with an option for further 100 million doses, to be distributed on a population-based pro-rata basis.
The Commission continues discussing similar agreements with other vaccine manufacturers and has concluded successful exploratory talks with Sanofi-GSK on 31 July, Johnson & Johnson on 13 August, CureVac on 18 August and Moderna on 24 August.
Ursula von der Leyen, President of the European Commission, said: “The Commission is working non-stop to provide EU citizens with a safe and effective vaccine against COVID-19 as quickly as possible. The entry into force of the contract with AstraZeneca is an important step forward in this respect. I am looking forward to enriching our portfolio of potential vaccines thanks to contracts with other pharmaceutical companies and engaging with international partners for universal and equitable access to vaccination.”
Stella Kyriakides, Commissioner for Health and Food Safety, said: “Our negotiations have now delivered clear results: a first contract signed delivering on our commitment to ensure a diversified vaccine portfolio to protect the public health of our citizens. Today’s signature – made possible by the important groundwork  undertaken by France, Germany, Italy, and the Netherlands – will ensure that doses of a vaccine which, if proven effective and safe, will be delivered across Member States. We expect to announce additional agreements with other vaccine manufacturers very swiftly. “
AstraZeneca and the University of Oxford joined forces to develop and distribute the University’s potential recombinant adenovirus vaccine aimed at preventing COVID-19 infection.
AstraZeneca’s vaccine candidate is already in large-scale Phase II/III Clinical Trials after promising results in Phase I/II concerning safety and immunogenicity.
Today’s contract is based on the Advanced Purchase Agreement approved on 14 August with AstraZeneca, which will be financed with the Emergency Support Instrument. The “Inclusive Vaccine Alliance” countries (Germany, France, Italy, the Netherlands) who started negotiations with AstraZeneca asked the Commission to take over through an agreement signed on behalf of all Member States.
The decision to support the vaccine proposed by AstraZeneca is based on a sound scientific approach and the technology used (a non-replicative recombinant chimpanzee adenovirus-based vaccine ChAdOx1), speed at delivery at scale, cost, risk sharing, liability and the production capacity able to supply the whole of the EU, among others.
The regulatory processes will be flexible but remain robust. Together with the Member States and the European Medicines Agency, the Commission will use existing flexibilities in the EU’s regulatory framework to accelerate the authorisation and availability of successful vaccines against COVID-19, while maintaining the standards for vaccine quality, safety and efficacy.
The necessary safety requirements and specific assessment by the European Medicines Agency as part of the EU market authorisation procedure guarantee that citizens’ rights will remain fully protected.
In order to compensate for such high risks taken by manufacturers, the Advanced Purchase Agreements provide for Member States to indemnify the manufacturer for liabilities incurred under certain conditions. Liability still remains with the companies.
Background
Today’s contract with AstraZeneca is an important step in the implementation of the European Vaccines Strategy, adopted by the Commission on 17 June 2020.  This strategy aims to secure for all European citizens high-quality, safe, effective and affordable vaccines within 12 to 18 months.
To do so, and together with the Member States, the Commission is agreeing Advance Purchase Agreements with vaccine producers reserving or giving the Member States the right to buy a given number of vaccine doses for a certain price, as and when a vaccine becomes available.
Advanced Purchase Agreements are financed with the Emergency Support Instrument, which has funds dedicated to the creation of a portfolio of potential vaccines with different profiles and produced by different companies.
The European Commission is also committed to ensuring that everyone who needs a vaccine gets it, anywhere in the world and not only at home. No one will be safe until everyone is safe. This is why it has raised almost €16 billion since 4 May 2020 under the Coronavirus Global Response, the global action for universal access to tests, treatments and vaccines against coronavirus and for the global recovery.
Compliments of the European Commission.
The post Coronavirus: the EU Commission signs first contract with AstraZeneca first appeared on European American Chamber of Commerce New York [EACCNY] | Your Partner for Transatlantic Business Resources.

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

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

EACCNY has its finger on the pulse of how this worldwide pandemic is effecting companies and organizations on both sides of the Atlantic. EACC is where Americans & Europeans connect to do business.
Stay tuned for more on this series! We hope you enjoy these short vignettes our members and friends of the EACC created to share their experience.
The post EACCNY #COVID19 Impact Stories from Our Members – therecruitingproject first appeared on European American Chamber of Commerce New York [EACCNY] | Your Partner for Transatlantic Business Resources.

Blog post by EU High Representative Josep Borrell |
26 August – Foreign policy never stops. But the summer of 2020 has been exceptionally busy, with a seemingly never-ending series of crises: in Lebanon, Belarus, Mali and the Eastern Mediterranean. At the informal Gymnich meeting in Berlin (27-28 August) we must forge a common way forward. It is both urgent and feasible to strengthen Europe’s international clout.
“In the EU, what matters is not how a discussion begins, with 27 different views. What matters is how a discussion ends, with a common vision on what to do and a commitment to put resources behind it.” HR/VP Josep Borrell
One of the summer’s big events was the devastating bomb blast in Lebanon on 4 August. The images were near apocalyptic. The explosion left at least 220 dead, with thousands injured and homeless, and €15 billion in damages. It sent shockwaves not only through the harbour of Beirut but also the political system of the country. It exposed deep flaws in its governance in terms of ‘state capture’ with elites responsible for corruption and mismanagement. These flaws were already known beforehand – and COVID-19 had already added to the urgency to enact reforms.
Now this urgency can no longer be denied. As EU we demonstrated our solidarity with the Lebanese people in their hour of maximum need [link blog]. That was the message of Presidents Macron and Michel when they visited. We will continue to support Lebanon, with humanitarian supplies in the short term but also with macro-financial assistance, in cooperation with the IMF. But all this will require deep reforms in how the country is run politically: we need a new political settlement, to be agreed of course by the Lebanese people.
Then on 9 August we had the Presidential elections in Belarus. We always knew that the Lukashenko regime would not allow fully free and fair elections. But his announced re-election with 80% of the vote, despite many indications to the contrary, was a blatant rejection of the desire of the Belarusians for change. What’s worse is that the regime has chosen to respond to the mass demonstrations with the full panoply of repression: police violence and mass arrests. Impressively, people in Belarus have come out again and again in large numbers, demanding respect for their democratic rights.
As EU we have made it clear that we do not recognise the result of this election and fully support these democratic aspirations; that we will sanction those responsible for electoral fraud and the subsequent violence; and that a national political dialogue is urgently needed. We cannot stay silent when fellow Europeans insist on their democratic rights and wish to shape their own future – they need they need our support and the space to do so by themselves. This was also my clear message to Russian Foreign Minister Lavrov when I spoke to him.
“We cannot stay silent when in Belarus fellow Europeans insist on their democratic rights and wish to shape their own future – they need our support and the space to do so by themselves.”
Another major shock came on 18 August when a military coup took place in Mali, deposing the President and Prime Minister. I immediately condemned this coup as unconstitutional, and the African Union and ECOWAS did the same. It was yet another reminder of the deep- rooted crises facing the country and the Sahel region (of governance, security, development). A coup is never the right answer but we do need to think hard about how to change the way we as EU support the local population, which craves sustainable security and inclusive economic development.
All throughout the summer the situation in the Eastern Mediterranean has grown more tense, with Turkish ships conducting seismic work in European waters. In July, I had visited our Member States Greece and Cyprus a well as Turkey, and I have remained in constant contact throughout the summer, including meeting the Turkish Foreign Minister on 6 August.
Our core aim is and remains to show strong solidarity with EU Member States under threat, while working to de-escalate the tensions and allow dialogue and negotiations to underlying address  the issues, which are highly complex and integrated. In August, developments were taking a worrying turn, carrying the risk of triggering open conflict. We discussed this at a special Foreign Affairs Council on 14 August, followed by an emergency European Council on 19 August. We agreed to send a clear signal of Turkey needing to halt its illegal drilling activities and work to de-escalate the situation and that all options are on the table.
On Turkey, we need to show strong solidarity with EU Member States under threat, while working to de-escalate the tensions and allow dialogue and negotiations to address the underlying issues.
EU-Turkey relations are complex and multifaceted: Turkey is an important neighbour and partner for Europe in many fields; a crucial ally in NATO; and both sides want to keep a cooperative framework on migration in place. But Turkish domestic dynamics and its regional role are increasingly problematic with assertions of Turkish power, also in Syria, Libya and elsewhere.
We need to define a firm and balanced long-term strategy for EU-Turkey relations, based in the first place on solidarity with the most concerned Members States but also knowing that diplomacy can only work if all sides invest in building trust.
The Gymnich meeting and how to enhance the EU’s clout
How we position ourselves on these important issues and geo-political crises will be discussed with EU Foreign Ministers at the upcoming ‘Gymnich’ meeting, at the end of this week in Berlin. This is an informal meeting, held twice a year, where we discuss things without neckties and without the pressure of having to take formal decisions. We should take a step back and reflect more deeply on how to approach our overall relations with Turkey, with Russia, our engagement in the Sahel and how we can strengthen the EU’s strategic autonomy in the post-pandemic world. I have previously set out my belief (link is external)that Europe should position itself as a ‘partner of choice’ to others. Principled, but not dogmatic. Open, but not weak. Progressive but not naïve. Ready to act multilaterally whenever we can and autonomously if we must.
Nine months into the mandate, I feel there is a shared awareness of just how serious the challenges are that Europe is facing, in our neighbourhood but also when it comes to the wider trends around us. It is clear we face more assertive players, some with an imperial mind-set: a determination to deploy all forms of power at a global scale. However, if truth be told, our European responses are not always keeping pace. We are not always clear enough, or fast enough, or acting with enough impact and consistency.
Intellectually, people tend to agree with this diagnosis. But when it comes to changing things, well, then politics often gets in the way. It is the familiar problem of 27 points of view and the need for unanimity. This produces an EU foreign and security policy of ‘strong nouns and rather weak verbs’, as the former Commissioner for External Relations Chris Patten used to say. A policy that is high on rhetoric but when it comes to corresponding financial resources, we don’t always put our money where our mouth is.
We cannot change big global trends, but we can change how we respond to them.
The positive point here is that these constraints are self-imposed. We cannot change big global trends, but we can change how we respond to them. In our decision-making, each country can ultimately block any EU position or action. That’s negative power. If everyone sits on their position and expects the rest of the group to converge on their viewpoints, that’s not the way that helps us shape the world or set the agenda. For that, you need positive power. By investing more in unity, all Member States would gain in influence, because by slowing things down or weakening our capacity to act, they also harm themselves.
In the EU, what matters is not how a discussion begins, with a range of views among 27 countries, each with their own histories and different interests. What matters is how a discussion ends, with a common vision on what to do and a commitment to put resources behind it.
If we are able to combine the unity of the Council with the capacities of the Commission and the EEAS, the EU can have a real impact, acting as a real power. I will do all I can at the Gymnich meeting and beyond to build the necessary unity among Member States to do just that.
Compliments of the Delegation of the European Union to the United States.
The post Josep Borrell | The rentrée of 2020: decision time for EU foreign policy first appeared on European American Chamber of Commerce New York [EACCNY] | Your Partner for Transatlantic Business Resources.

Board of Governors of the Federal Reserve SystemFederal Deposit Insurance CorporationOffice of the Comptroller of the Currency
The federal bank regulatory agencies today finalized three rules, which are either identical or substantially similar to interim final rules currently in effect that were issued earlier this year. They include:

A final rule that temporarily modifies the community bank leverage ratio, as required by the CARES Act;
A final rule that makes more gradual, as intended, the automatic restrictions on distributions if a banking organization’s capital levels decline below certain levels; and
A final rule that allows institutions that adopt the current expected credit losses or “CECL” accounting standard in 2020 to mitigate the estimated effects of CECL on regulatory capital for two years.

The final rule modifying the community bank leverage ratio adopts without change two interim final rules issued in April. The final rule temporarily lowers the community bank leverage ratio threshold and provides a gradual transition back to the prior level. Specifically, the threshold would be 8 percent for the remainder of this year, 8.5 percent for 2021, and 9 percent beginning January 1, 2022. This final rule is effective as of October 1, 2020.
Similarly, the final rule on automatic restrictions of distributions adopts without change two interim final rules, one of which was Board-only, issued in March. The final rule makes more gradual, as intended, the automatic restrictions on capital distributions, such as share repurchases, dividend payments, and bonus payments. This final rule is effective as of January 1, 2021.
Lastly, the CECL final rule is substantially similar to the interim final rule issued in March. The final rule gives eligible institutions the option to mitigate the estimated capital effects of CECL for two years, followed by a three-year transition period. Taken together, these measures offer institutions a transition period of up to five years. In a change from the interim rule, the final rule expands the pool of eligible institutions to include any institution adopting CECL in 2020. The CECL final rule is effective immediately upon publication in the Federal Register.
Federal Register notice: Regulatory Capital Rule and Total Loss-Absorbing Capacity Rule: Eligible Retained Income (PDF)
Federal Register notice: Regulatory Capital Rule: Revised Transition of the Current Expected Credit Losses Methodology for Allowances (PDF)
Federal Register notice: Regulatory Capital Rule Temporary Changes to and Transition for the Community Bank Leverage Ratio Framework (PDF)
Compliments of the U.S. Federal Reserve.
The post U.S. Federal Bank Regulatory Agencies Issue Three Final Rules first appeared on European American Chamber of Commerce New York [EACCNY] | Your Partner for Transatlantic Business Resources.

The Federal Reserve on Thursday, August 13 highlighted the research and experimentation undertaken to enhance its understanding of the opportunities and risks associated with central bank digital currencies. The initiatives complement a broad set of payments-related innovation projects currently underway within the Federal Reserve System.
“Given the dollar’s important role, it is essential that the Federal Reserve remain on the frontier of research and policy development regarding central bank digital currencies,” said Federal Reserve Board Governor Lael Brainard. “Like other central banks, we are continuing to assess the opportunities and challenges of, as well as the use cases for, a digital currency, as a complement to cash and other payments options.”
Technological innovations inspire new ways to think about money. Consistent with its role in promoting a safe, accessible, and efficient U.S. payment system, the Federal Reserve is engaged in ongoing research and experimentation with the latest payment technologies. The Federal Reserve Board’s Technology Lab (TechLab) is expanding experimentation with technologies relevant to digital currencies and other payment innovations. The TechLab conducts hands-on research to further the Federal Reserve’s understanding of payment technologies and support development of policy views. The TechLab is a multidisciplinary team composed of Board and Federal Reserve Bank staff with expertise in payments, economics, law, information technology, and computer science.
In addition, the Federal Reserve Bank of Boston is collaborating with researchers at the Massachusetts Institute of Technology on a multiyear effort to build a hypothetical digital currency oriented for central bank use. This research project is intended to support the Board’s broader efforts in assessing the safety and efficiency of central bank digital currency systems. The project focuses solely on developing an understanding of the capacities and limitations of the relevant technologies, rather than serving as a prototype for a Federal Reserve issued digital currency or addressing the wide-ranging policy issues associated with its potential issuance.
The Federal Reserve also continues its collaboration with other central banks and international organizations as it advances its understanding of central bank digital currencies.
For media inquiries, call 202-452-2955
Compliments of the U.S. Federal Reserve Board.
The post U.S. Federal Reserve highlights research and experimentation undertaken to enhance its understanding of the opportunities and risks associated with central bank digital currencies first appeared on European American Chamber of Commerce New York [EACCNY] | Your Partner for Transatlantic Business Resources.

The European Commission has adopted today a package of proposals that aims to increase trade between the European Union and neighbouring countries in the Pan-Euro-Mediterranean (PEM) region, thereby contributing to the economic recovery following the coronavirus outbreak. Today’s proposals will modernise the EU’s preferential trade agreements with 20 PEM trading partners by making the relevant ‘rules of origin’ in those agreements more flexible and business-friendly.
These proposals amend the EU’s bilateral agreements with the following countries: Iceland, Liechtenstein, Norway, Switzerland, Faroe Islands, Turkey, Egypt, Israel, Jordan, Lebanon, Palestine[1], Georgia, the Republic of Moldova, Ukraine, Albania, Bosnia and Herzegovina, North Macedonia, Montenegro, Serbia and Kosovo.
Paolo Gentiloni, Commissioner for Economy, said: “We need to do everything we can to facilitate trade and economic activity between the EU and our neighbours in the Euro-Mediterranean area, and to promote regional integration. This will also help countries like Lebanon recover and rebuild, while at the same time supporting European businesses in accessing new markets.”
‘Rules of origin’ are necessary under any trade agreement because they determine which goods can benefit from preferential treatment. The ‘origin’ is the ‘economic nationality’ of the goods traded. Origin procedures ensure that customs authorities can verify the origin of a good and allow businesses to prove the origin of their goods. When all the necessary requirements are met, goods with preferential origin are eligible to be imported with lower duty rates, or even a zero rate, depending on the preferential tariff treatment.
Today’s new rules, which are the result of ten years of negotiations, will apply alongside those of the Regional Convention on pan-Euro-Mediterranean preferential rules of origin (PEM Convention), pending the review of the Convention, which is currently under way.
Background
This package, which is a step towards the modernisation of the PEM Convention, comprises of 21 proposals for Council Decisions that will provide for more user-friendly rules of origin in the EU’s trade agreements with most of its neighbouring countries. Trade with these countries accounted for €677 billion in 2019, which is almost half of the EU’s preferential trade. These provisions will make it easier for products to benefit from trade preferences, such as:

Simpler product-specific rules, such as the elimination of cumulative requirements, thresholds for local value added, more adapted to EU production needs, and new double transformation for textiles;
Increased thresholds of tolerance for non-originating materials, from 10% to 15%;
The introduction of “full” cumulation, under which the manufacturing operations needed to acquire origin for most products can be split among several countries;
The possibility of duty-drawback (repayment of duties on imported components) for most products to help EU exporters compete.

Rules of origin applied autonomously, as well as implementing provisions on origin are part of the EU’s customs legislation.
Compliments of the European Commission.
The post Rules of origin: EU to enhance preferential trade with Pan-Euro-Mediterranean (PEM) countries first appeared on European American Chamber of Commerce New York [EACCNY] | Your Partner for Transatlantic Business Resources.

The European Commission has presented proposals to the Council for decisions to grant financial support of €81.4 billion to 15 Member States under the SURE instrument. SURE is a crucial element of the EU’s comprehensive strategy to protect citizens and mitigate the severely negative socio-economic consequences of the coronavirus pandemic. It is one of the three safety nets agreed by the European Council to shield workers, businesses and countries.
Once the Council approves these proposals, the financial support will be provided in the form of loans granted on favourable terms from the EU to Member States. These loans will assist Member States in addressing sudden increases in public expenditure to preserve employment. Specifically, they will help Member States to cover the costs directly related to the financing of national short-time work schemes, and other similar measures they have put in place as a response to the coronavirus pandemic, in particular for the self-employed.
Following consultations with the Member States that have requested support and after assessing their requests, the Commission proposes to the Council to approve the granting of financial support to:

Belgium
€7.8 billion

Bulgaria
€511 million

Czechia
€2 billion

Greece
€2.7 billion

Spain
€21.3 billion

Croatia
€1 billion

Italy
€27.4 billion

Cyprus
€479 million

Latvia
€192 million

Lithuania
€602 million

Malta
€244 million

Poland
€11.2 billion

Romania
€4 billion

Slovakia
€631 million

Slovenia
€1.1 billion

SURE can provide financial support of up to €100 billion in total to all Member States.  The proposals put forward by the Commission to the Council for decisions to grant financial support amount to €81.4 billion and cover 15 Member States. Portugal and Hungary have already submitted formal requests which are being assessed. The Commission expects to put forward a proposal to grant support to Portugal and Hungary shortly. Member States which have not yet made formal requests may still do so.
Loans provided to Member States under the SURE instrument will be underpinned by a system of voluntary guarantees from Member States. The Commission expects that the process of Member States finalising their guarantee agreements with the Commission will be completed very shortly.
Members of the College said:
President Ursula von der Leyen said: “We must do everything in our power to preserve jobs and livelihoods. Today marks an important step in this regard: just four months after I proposed its creation, the Commission is proposing to provide €81.4 billion under the SURE instrument to help protect jobs and workers affected by the coronavirus pandemic across the EU. SURE is a clear symbol of solidarity in the face of an unprecedented crisis. Europe is committed to protecting citizens.”
Valdis Dombrovskis, Executive Vice-President for an Economy that Works for People, said: “Workers are currently enduring enormous insecurity, and we need to support them to overcome this crisis and relaunch our economies. That is why the Commission proposed SURE, to help protect workers and facilitate the economic rebound. Today, we welcome Member States’ strong interest in accessing the cheap funding available under SURE to support short-time work schemes and similar measures, and we look forward to a fast decision process to start disbursing the loans.”
Nicolas Schmit, Commissioner for Jobs and Social Rights, said: “SURE was one of the first safety nets we decided to put in place to guarantee that workers have an income while their jobs have been suspended, and that their employment is preserved. SURE will therefore help a swifter recovery. All Member States will soon have provided a cumulative €25 billion in guarantees, and we propose that the 15 Member States who requested support receive a cumulated €81.4 billion in loans. This is a demonstration of European solidarity, of how together we are stronger for the benefit of all European citizens.”
Paolo Gentiloni, Commissioner for Economy, said: “Short-time work schemes have played a key role in cushioning the impact on jobs of the COVID-19 pandemic. SURE is the European Union’s contribution to these essential safety nets. It will help to protect workers against unemployment and preserve the jobs and skills that we will need as our economies recover. The high demand from our Member States confirms the vital importance of this scheme.”
Background
As part of its coronavirus response, the Commission proposed SURE on 2 April 2020. Member States in the Council adopted the regulation establishing SURE on 19 May 2020.
Each Member State’s contribution to the overall amount of the guarantee corresponds to its relative share in the total gross national income (GNI) of the European Union, based on the 2020 EU budget.
Compliments of the European Commission.
The post Coronavirus: EU Commission proposes to provide €81.4 billion in financial support for 15 Member States under SURE first appeared on European American Chamber of Commerce New York [EACCNY] | Your Partner for Transatlantic Business Resources.

Blog post by EU High Representative Josep Borrell |
Last Monday I opened the Summer University of the Universidad Internacional Menendez Palacio in Santander (Spain). We mostly discussed the consequences of the current crisis for Europe and the world. At this stage, the risk seems serious that it destabilises many developing countries and strengthens a trend towards authoritarian regimes. In this context, Europe has a key responsibility to defend effective multilateralism and help developing countries in need.
“The actual crisis risks destabilizing many developing countries and strengthening a trend towards authoritarian regime. Europe has a key responsibility to help countries in need, defend democratic values and advocate effective multilaterlism.”
This week I have been in Santander, north of Spain, where I have been directing a course on the future of Europe – Quo Vadis Europa ? – since 21 years now. The coronavirus shouldn’t stop this much celebrated academic event from continuing, so it was organised this year as a VTC. The main issue was unavoidably how the pandemics has been a game changer on the process of European integration and its role in the world. I gave the introductory remarks and today we have had the last lecture with professor Enrico Letta, former Italian prime minister. Thanks to all that participated and the thousands that followed the course.
Whilst following closely the international events, and in particular the Belarusian crisis, and participating by VTC at the European Council about it, I have had the opportunity to express during this course my fears about the global consequences of the pandemic and the key responsibilities Europe have in that context. This are some of the ideas exposed during my introductory remarks. Many others have arisen during the discussions: they could for sure feed further reflections on this blog.
Europa has been severely affected but reacted swiftly
This crisis, which is far from over, is the most important since the Second World War. It is also the most global crisis we have experienced so far. The European Union has been severely affected by the epidemic with several member states, Italy and Spain in particular, among the worst-hit in the world. After a slow start, Europe has successfully taken strong measures to regain control of the situation even if the threat of a resumption of the pandemic persists.
Europe benefits from its social model, the most developed in the world, which has made it possible to guarantee a high and widespread level of medical care, while maintaining people’s income. Nevertheless, the crisis has affected the Member States of the Union in very different ways, which risked deepening already existing differences and the functioning of the single market. This is why it was essential to provide special support to the countries hit hardest. This is the main purpose of the EU recovery plan, which was approved by the European Council last July, a major step to improve the European architecture.
“If Europe completes the process of strengthening its solidarity and internal cohesion, it could reinforce its position in the world.”
I am confident that Europeans will come out of this crisis convinced that more Europe is needed. If Europe completes the process of strengthening its solidarity and internal cohesion, it could reinforce its position in the world. This was not the case in either previous financial crises. Although these crises started in America, they ultimately had more serious and lasting consequences in Europe because we struggled to react quickly and strongly enough. It seems that the reverse may be true this time, giving Europe a major global responsibility.
The crisis has hit developing countries very hard
Away from Europe and the US, the crisis has indeed hit the developing countries very hard, whether in South Asia, Africa or Latin America, which is now the epicentre of the epidemic. This poses enormous risks for the future of the world in terms of inequality and social cohesion but also for peace and security.
“The crisis poses enormous risks for the future of the world in terms of inequality and social cohesion but also for peace and security.”
In many of these countries, the weakness of the health systems has combined with that of the social safety nets to make the fight against the epidemic extremely difficult. The importance of informal employment and the living conditions in slums have made it particularly hard to implement prolonged lockdown measures.
Developing countries have also been affected by the crisis through the fall in the price and volume of trade for raw materials linked to the slowdown in the world economy. Oil and gas producing developing and emerging countries in particular, like Iraq, Oman, Algeria or Nigeria, have seen their revenues plummet.
Remittances from migrants and tourism revenues are collapsing
Many developing countries rely also on remittances from migrants. According to the World Bank(link is external), it represented a flow of $ 554 billion in 2019 for low and middle income countries and represented more than 5 % of the GDP in 66 countries and even more than 10 % in 31 of them. This flow is expected to decline by at least 20%, or more than $100 billion, this year.
In addition to that, international tourism has also collapsed. According to the UN World Tourism Organisation(link is external), we have globally experienced a drop of 56% year-on-year in tourist arrivals between January and May. This translates into $ 320 billion lost in international tourism revenue, more than three times the loss during the 2009 economic crisis.
“It is important to keep in mind that a recession in a low income country – even a limited one – has more serious consequences than in high income countries.”
Last June, the International Monetary Fund(link is external) predicted that GDP growth in the most developed countries would fall this year by 9.7 on average compared to 2019. It is more than in the emerging – 6.7 – and low-income countries – 6.2. Geographically, the expected drops vary significantly: – 9,5 points for Latin America vs – 6,5 for Sub Saharian Africa, – 6,3 for Asia and – 5,7 for the Middle East. In all this it is important to keep in mind that a recession in a low income country – even a limited one – has more serious consequences than in high income countries in Europe or elsewhere.
These difficulties are reflected in particular in the area of external financing. The cases of Lebanon or Argentina are the most obvious, but there are many more : developing countries do not generally have the same capacity as the United States, China or Europe to resort to massive monetary creation and budget deficits to support their economies in crisis without experiencing negative consequences.
“The ability of the richest countries to help developing countries to cope with this crisis, despite having their own difficulties, will be decisive in the coming weeks and months.”
We will likely face strong social and political tensions in several regions of the world as we have already seen vividly in Lebanon, Belarus or Mali. The ability of the richest countries to help developing countries to cope with this crisis, despite having their own difficulties, will be decisive in the coming weeks and months. We can expect this to be one of the main issues at stake in the China-US rivalry but it is also a central issue for Europe, particularly in relation to our neighbourhood, in Africa and the Middle East.
The question of debt restructuring
Helping developing countries cope with the crisis is not only a question of solidarity, but also a matter of a well-understood interest: even if Europeans manage to cope with the crisis at home, if surrounding countries are destabilised, Europe will also be affected. In addition to outright financial support, the international debate on helping developing countries will also revolve around the process of restructuring and cancelling the debts of countries in difficulty. Those who will be the most proactive in this area during the next months, will have scored points for the post-crisis period.
“It is up to Europe to mobilise democracies to defend and promote fundamental human rights and democratic values in the international arena.”
At a time when the United States is tending to turn in on itself and authoritarian powers are gaining strength, it is also up to Europe to mobilise democracies to defend and promote fundamental human rights and democratic values in the international arena. Whether in Hong Kong, Sudan or Belarus, the events of the last few months have confirmed, if proof were needed, that the desire for political rights and freedoms remain universal. The peoples of all continents who are deprived of it continue to aspire to it as soon as they succeed in lifting the leaden cloak of repression.
The urgent need for a renewed multilateralism
This remobilization of democracies must serve to defend and promote a renewed multilateralism, adapted to the world of the 21st century and its challenges. The Covid-19 pandemic has shown how much we need multilateral cooperation: as long as we do not have a vaccine, we will only be able to control this disease if it is controlled everywhere.
This is true for the coronavirus pandemic but also for many other global challenges. Indeed the current health and economic crisis must not make us forget the seriousness of the threat posed by the ecological crisis. We can only hope to overcome this crisis through strong and closely coordinated global action, in particular to implement swiftly the Paris agreement and combate jointly biodiversity loss.
Compliments of the European Union External Action.
The post The crisis and Europe’s responsibilities first appeared on European American Chamber of Commerce New York [EACCNY] | Your Partner for Transatlantic Business Resources.

21 August 2020| Brussels
United States Trade Representative Robert Lighthizer and European Union Trade Commissioner Phil Hogan today announced agreement on a package of tariff reductions that will increase market access for hundreds of millions of dollars in U.S. and EU exports. These tariff reductions are the first U.S.-EU negotiated reductions in duties in more than two decades.
Under the agreement, the EU will eliminate tariffs on imports of U.S. live and frozen lobster products. U.S. exports of these products to the EU were over $111 million in 2017. The EU will eliminate these tariffs on a Most Favored Nation (MFN) basis, retroactive to begin August 1, 2020. The EU tariffs will be eliminated for a period of five years and the European Commission will promptly initiate procedures aimed at making the tariff changes permanent. The United States will reduce by 50% its tariff rates on certain products exported by the EU worth an average annual trade value of $160 million, including certain prepared meals, certain crystal glassware, surface preparations, propellant powders, cigarette lighters and lighter parts. The U.S. tariff reductions will also be made on an MFN basis and retroactive to begin August 1, 2020.
“As part of improving EU-US relations, this mutually beneficial agreement will bring positive results to the economies of both the United States and the European Union.  We intend for this package of tariff reductions to mark just the beginning of a process that will lead to additional agreements that create more free, fair, and reciprocal transatlantic trade” said Ambassador Lighthizer and Commissioner Hogan.
 The post Joint Statement of the United States and the European Union on a Tariff Agreement first appeared on European American Chamber of Commerce New York [EACCNY] | Your Partner for Transatlantic Business Resources.

Most widespread tightening of credit terms over three-month review period since SESFOD launched in 2013
Less-favourable price terms for non-financial corporations and less-favourable non-price terms for hedge funds
Liquidity and trading deteriorated materially for all types of OTC derivatives, while initial margin requirements increased for almost all types
Some insurance companies, hedge funds and investment funds faced strained liquidity situations linked to variation margins
Survey respondents reported the most widespread tightening of credit terms and conditions over a three-month review period since the SESFOD was launched in 2013. For the March 2020 to May 2020 review period, their respective institutions offered less-favourable price and non-price credit terms for all counterparty types. For price terms, non-financial corporations were the most affected counterparty type, while for non-price terms the tightening of conditions was most noticeable for hedge funds. Respondents mainly attributed the tightening to a deterioration in general liquidity and market functioning, but they also suggested that current or expected financial strength of counterparties was an additional motivation for offering less-favourable conditions to hedge funds and non-financial corporations in particular.
The maximum amount and maturity of funding offered against all types of non-government euro-denominated collateral continued to decline, but rose for funding against government bonds as collateral. Haircuts applied to euro-denominated collateral increased significantly and financing rates/spreads increased for funding secured by all types of collateral except domestic government bonds. The liquidity of collateral deteriorated for all collateral types, and collateral valuation disputes recorded the strongest increase on record.
Initial margin requirements increased for all OTC derivatives except commodity derivatives, with a significant share of respondents reporting increased initial margin requirements for OTC credit derivatives referencing sovereigns, corporates and structured credit products. Respondents also reported that the maximum amount of exposures had decreased for OTC commodity derivatives and total return swaps referencing non-securities such as bank loans. Liquidity and trading deteriorated materially for all types of derivatives, with the most pronounced deterioration in credit derivatives referencing corporates, structured credit products and sovereigns. The volume, duration and persistence of valuation disputes rose further across all types of derivatives.
The June 2020 survey included a number of special questions aimed at gauging the impact of credit terms and margin requirements on market and counterparty liquidity situations against the background of the evolving coronavirus (COVID-19) crisis. Within the limits of their risk management frameworks, responding institutions accounted, to some degree, for their counterparties’ liquidity or solvency situation when tightening credit terms during this period. Responding institutions were able to roll over money market transactions, albeit at less-favourable pricing conditions for many institutions. Survey respondents reported that their clients predominantly covered liquidity needs resulting from margin calls by tapping repo markets or credit lines. However, some insurance companies, hedge funds and investment funds faced strained liquidity situations linked to the posting of variation margins.
The SESFOD is conducted four times a year and covers changes in credit terms and conditions over three-month reference periods ending in February, May, August and November. The June 2020 survey collected qualitative information on changes between March 2020 and May 2020. The results are based on responses from a panel of 28 large banks, comprising 14 euro area banks and 14 banks with head offices outside the euro area.
CONTACT:
For media queries, please contact William Lelieveldt at william.lelieveldt[at]ecb.europa.eu or tel.: +49 69 1344 7316.
Compliments of the European Central Bank.The post Results of the June 2020 survey on credit terms and conditions in euro-denominated securities financing and over-the-counter derivatives markets (SESFOD) first appeared on European American Chamber of Commerce New York [EACCNY] | Your Partner for Transatlantic Business Resources.