Today, the Council formally adopted the amended regulation on European environmental economic accounts, the EU’s common statistical system which brings together economic and environmental information. The new rules extend the scope of the European environmental economic accounts, introducing forest accounts, ecosystem accounts, and environmental subsidies accounts. The amended regulation aims to provide better information for the European Green Deal, in order to support monitoring and evaluation of the EU’s progress in meeting its environmental objectives.
 
New account modules 
The current regulation on European environmental economic accounts sets out a common framework for collecting, compiling, transmitting and evaluating European environmental economic accounts. The regulation contains six modules, including air emissions accounts and environmentally related taxes.
Relevant and detailed data from member states is key to keeping the EU on track to meet the European Green Deal objectives. Therefore, the new regulation introduces three new environmental account modules for more comprehensive monitoring:

ecosystem accounts, which provide data on the extent and condition of ecosystems and on the services delivered to society and the economy by ecosystem assets

forest accounts, which specifically measure forest areas and the share available for timber extraction, and trace changes over time

environmental subsidies, which identify and quantify resources that support the Green Deal through economic activities and products, protecting the environment and safeguarding natural resources

Member states will start reporting these data to the Commission (Eurostat) in 2025 and 2026.
Statistical data portal 
The amended regulation introduces a new statistical data portal (statistical dashboard) for environmental economic accounts, which will summarise the key indicators and data from those accounts in an understandable and accessible way for all users. It will also contain data on climate change mitigation investments by member states.
The data portal will be operated by the Commission (Eurostat) from December 2024 and will be updated once a year. It will be publicly available on the Eurostat website.
Next steps
This formal adoption marks the last step in the ordinary legislative procedure. The regulation will now be published in the Official Journal of the European Union and will enter into force 20 days after its publication.
By 31 December 2024 and at least every two years thereafter, Eurostat will publish data and statistics on climate change mitigation, including on related investments.
Within two years from the date of entry into force of the regulation, the Commission will present a report on the quality of the data available on energy subsidies, including fossil fuel subsidies, on climate change adaptation and on water, and may submit a legislative proposal to introduce a further three new modules on these issues.
Background
The current regulation on environmental economic accounts already includes six modules: air emissions accounts, environmental taxes by economic activity, economy-wide material flow accounts, environmental protection expenditure accounts, environmental goods and services sector accounts, and physical energy flow accounts.
The existing rules provided for new modules to be introduced later based on Commission proposals; on 11 July 2022, the Commission adopted the relevant proposal.
On 15 December 2022, the Council agreed on its negotiating mandate. After one trilogue on 5 December 2023 and several technical meetings, the European Parliament and the Council agreed on the final shape of the regulation.
 
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Speech by Christine Lagarde, President of the ECB, at an event to mark the 15th anniversary of the Autorité de la concurrence
Paris, 5 November 2024
 
It is truly a pleasure to be back here today to celebrate the 15th anniversary of the Autorité de la concurrence.
Competition policy in Europe has always played an important role in ensuring the functioning of our Economic and Monetary Union. The main objective of competition policy has been to preserve competition within Member States and within the Single Market.
At the political level, these policy objectives were sometimes challenged, as they were seen as an obstacle to the goal of creating national champions in some sectors.
This apparent contradiction has now been aggravated by profound changes in the global economic and political landscape.
New technologies are transforming markets, new competitors are emerging globally, and governments are facing a new set of priorities, including louder calls for state aid and industrial policy.
As a result, some argue that the supposed trade-off between competition and competitiveness is becoming more accentuated – in the sense that competition policy is limiting EU companies’ ability to compete against larger, in many cases state-backed, global rivals.
In my view, this trade-off is not inherent. We should avoid walking backwards into the future.
With a careful approach, Europe can preserve the benefits of competition while adapting to the changing world we are facing.
So, in these remarks, I would like to recall why competition is vital to our economies and the new challenges facing competition policy today.
I will then offer three key principles that can help us navigate this environment without sacrificing our competitive framework. These are consistency, complementarity and competence.
The benefits of a strong competition framework
There are well-founded reasons for strong competition policy and enforcement. Let me briefly mention three.
First, competition has positive effects on growth.
It leads to resources being reallocated to the most productive firms more effectively, managers running their businesses more efficiently, and greater innovation and investment.
As a result, a recent review by the European Commission finds clear and consistent evidence that industries which experience greater competition also experience stronger productivity growth, and that weaker competition undermines productivity growth.[1]
Second, competition leads to lower and less volatile prices.[2]
It not only prevents firms from charging excessive markups, but also ensures that companies quickly re-optimise production after cost shocks, keeping inflation subdued.
In France, for example, products subject to online competition displayed lower inflation during the period from 2009 to 2018.[3] The difference in inflation between a basket of supermarket products sold only offline and those same products also sold online was 2 percentage points.
Third, competition makes the economy more sensitive to interest rates, which supports macroeconomic management by the central bank and the transmission of monetary policy.
When markets are competitive, firms typically have lower profits and cash reserves. As a result, they are less able to fund investments internally and need to look outside for finance. This exposure to external financing makes them more sensitive to changes in interest rates by the central bank.
ECB research finds that the lower the concentration of the market in which firms operate, the greater the impact of monetary policy changes on those firms.[4] Conversely, a concentration of market power is found to reduce the responsiveness of the economy to interest rate changes.
So, as competition improves productivity, lowers inflation and strengthens policy transmission, it should be no surprise that the ECB has always supported a robust competition framework.
Since the start of the euro, there has been a relatively stable consensus in Europe about the approach to competition. This approach was built around implementing the Single Market, strong antitrust enforcement and a strict approach towards state aid. And, by and large, it was a success.
Single Market integration did not prevent markups from rising in Europe, but they remained well below the levels seen in the United States.[5]
The instances of extreme market concentration in the United States – in terms of firms and sectors – were far less of an issue in Europe.[6]
And state aid was controlled, averaging just 0.7% of EU GDP each year between 2000 and 2019.[7]
Overall, the system of shared competence – with the Commission and national authorities jointly enforcing EU law – was effective. In fact, 90% of all competition decisions taken under EU law are taken by national authorities.
New challenges for competition policy
But in recent times, we have seen increasing tension between the internal and external dimensions of competition.
With the United States being the home of tech giants and China producing at astonishing scale, the question is whether Europe needs to change its competition policy to compete globally.
In some sectors, like telecoms, there are proposals to redefine the relevant market to encourage larger European players that can invest more and match their international rivals.[8]
In other sectors, like tech, the Commission is being encouraged to give greater consideration to “innovation criteria” when considering mergers to facilitate large investments.
And in the defence and space sectors, for example, there are calls to give more weight to “resilience criteria” as geopolitical dependencies are at stake.[9]
This shift is also being reflected in a new attitude towards industrial policy and state aid.
In 2022, almost 1.5% of EU GDP was spent on state aid – more than double the pre-pandemic average. 65% of this spending took place in the three largest EU countries.[10] Much of this aid was related to the pandemic and the energy crisis. But there is also a clear trend among governments to provide more funding to “strategic” industries such as chips and batteries.
We cannot wish these changes away. We are facing a new global landscape.
But we must also be clear that, if we prioritise fending off external competition over preserving internal competition, it will mean sacrificing other goals that matter to us today.
It is now widely understood that Europe needs to boost its lagging productivity growth, and that a key driver of our weak productivity is a static industrial structure. Unlike in the United States, the same “middle tech” companies dominate R&D spending year after year, while too few innovative companies rise up in high tech sectors.[11] There is also broad agreement that the best way to facilitate the scaling-up of young firms is to complete the Single Market.
Allowing more state aid or industry consolidation might seem attractive to protect the competitive position of incumbent companies. But if the price we pay is a more fragmented Single Market or new entry barriers for young firms, we will end up losing more than we gain.
So, the key challenge for Europe will be to construct a framework through which we can deliver on governments’ new policy goals without sacrificing the benefits of competition.
Key principles to move forward
In my view, three principles will be key for success: consistency, complementarity and competence.
First, we need consistency in how we assess competition and deliver state support.
An unfortunate trend we are seeing today is the fragmentation of competition law at the national level, especially in new markets, like digital markets. Some countries are attempting to enforce their own rulebooks for large digital companies or adding national rules to EU legislation.
The singleness of EU competition law is what binds our whole competition framework together, so this trend must be stamped out to preserve the level playing field.
Likewise, if we are entering a world in which we systematically allow more state support for companies, it must be done, as much as possible, in a European way.
The optimal level for action is the EU budget, and I am encouraged by the Commission’s intention to refocus the next Multiannual Financial Framework on competitiveness and simplify access to EU financing. But I also recognise the limitations here. We need to reflect deeply on how we can embed European principles in state aid policy when it remains largely a national concern.
Second, industrial and competition policies must be seen as complements, not substitutes.
From the competition side, there is no inherent trade-off with industrial policy if competition authorities take into account innovation, resilience and sustainability in their decisions – which they can already do within the existing EU rules.
And from the industrial policy side, interventions can be designed in an innovation-focused way that is pro-competition – not to protect national champions or “pick winners”.[12]
As Philippe Aghion, Jean Tirole and Mathias Dewatripont recently argued, the mRNA vaccines introduced during the pandemic are a good example of how this approach can work.[13]
When COVID-19 emerged, the US Biomedical Advanced Research and Development Authority concentrated its funding on three technologies, with two projects per technology. The authorities did not pretend to know which technologies would work and offered no incumbency advantage.
While all six projects ended up being approved, the two main winners, the US firm Moderna and the German firm BioNTech, were actually small biotechs. This experience provides a useful model for Europe for how to combine state-led goals with innovation and competition.
The third principle is competence, by which I mean both assigning responsibility appropriately and drawing on the best available expertise.
Specifically, competition authorities must remain in the driving seat in determining the appropriate level of concentration in different types of markets.
There may be circumstances where allowing consolidation is justified to achieve wider policy goals. For example, economists in the Schumpeterian tradition have suggested that, to promote innovation, there is an optimal intermediate level of competition that balances some market power – creating a surplus for firms to invest in R&D – and competition to leave room for new entrants.[14]
But it is difficult to judge where different sectors lie on this curve. Studies find opposing results on the impact of mergers on innovation activity, driven by factors like differences in market structure and the reduction in the number of competitors.[15]
So careful analysis, carried out on a case-by-case basis by experts with deep understanding, will be essential. Competition policy is a field where both lawyers and economists will have to closely interact.
Conclusion
On that positive note, let me conclude.
Competition policy is entering a new phase, with internal and external forces pulling in different directions. Should this lead to less competition, it would be bad for Europe. But I believe there is a path ahead that will allow us to achieve our wider policy goals in a way that is pro-competition.
We will only be able to take this path if we refuse to accept false trade-offs, and if competition authorities remain at the heart of the process.
As Frédéric Bastiat said, “Détruire la concurrence, c’est tuer l’intelligence”. Fortunately, the Autorité will be here for many years to come, keeping us on our toes.

European Commission (2024), “Protecting competition in a changing world: Evidence on the evolution of competition in the EU during the past 25 years”.
See, for example, Przybyla, M. and Roma, M. (2005), “Does product market competition reduce inflation? Evidence from EU countries and sectors”, Working Paper Series, No 453, ECB, March; and Andrews, D., Gal, P. and Witheridge, W. (2018), “A genie in a bottle? Globalisation, competition and inflation”, OECD Economics Department Working Papers, No 1462, OECD, March. However, other studies find that greater market power, as measured by markups, reduces the cyclicality of inflation. See Kouvavas, O., Osbat, C., Reinelt, T. and Vansteenkiste, I. (2021), “Markups and inflation cyclicality in the euro area”, Working Paper Series, No 2617, ECB, November.
Dedola, L., Ehrmann, M., Hoffmann, P., Lamo, A., Paz Pardo, G., Slacalek, J. and Strasser, G. (2023), “Digitalisation and the economy”, Working Paper Series, No 2809, ECB.
Ferrando, A., McAdam, P., Petroulakis, F. and Vives, X. (2023), “Monetary Policy, Market Power, and SMEs”, AEA Papers and Proceedings, Vol. 113, May, pp. 105-109.
European Commission (2024), op. cit.
Cavalleri, M.C., Eliet, A., McAdam, P., Petroulakis, F., Soares, A. and Vansteenkiste, I. (2019), “Concentration, market power and dynamism in the euro area”, Working Paper Series, No 2253, ECB, March.
European Commission State Aid Scoreboard.
Letta, E. (2024), “Much More Than a Market: Speed, Security, Solidarity – Empowering the Single Market to deliver a sustainable future and prosperity for all EU Citizens”, Institut Jacques Delors, France, 27 April.
Eurostat and European Commission (2024), “The Future of European Competitiveness: A Competitiveness Strategy for Europe”.
European Commission State Aid Scoreboard.
Fuest, C., Gros, D., Mengel, P.-L., Presidente, G. and Tirole, J. (2024), “EU Innovation Policy: How to Escape the Middle Technology Trap”, EconPol Policy Report Series, April.
OECD (2024), “Pro-competitive Industrial Policy”, OECD Roundtables on Competition Policy Papers, No 309, OECD Publishing, Paris, 27 September.
Aghion, P., Dewatripont, M. and Tirole, J. (2024), “Can Europe Create an Innovation Economy?”, Project Syndicate, 7 October.
Aghion, P, Bloom, N., Blundell, R., Griffith, R. and Howitt, P. (2005), “Competition and Innovation: An Inverted-U Relationship”, The Quarterly Journal of Economics, Vol. 120, No 2, May, pp. 701-728.
For a review see Haucap, J. and Stiebale, J. (2023), “Non-price Effects of Mergers and Acquisitions”, DICE Discussion Paper Series, No 402, Düsseldorf Institute for Competition Economics (DICE), Heinrich-Heine-University Düsseldorf, July.

 
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In 2023, the European Union and its 27 member states contributed €28.6 billion in climate finance from public sources and mobilised an additional amount of €7.2 billion of private finance to support developing countries to reduce their greenhouse gas emissions and adapt to the impacts of climate change.
The Council published the figures today, in preparation for the United Nations Climate Change Conference of the Parties (COP29), which will take place from 11 to 22 November in Baku, Azerbaijan. The figures are based on the EU climate finance reporting rules laid down in the governance regulation.
According to data compiled by the European Commission, approximately half of the public climate funding for developing countries has been directed to climate adaptation or to cross-cutting action (involving both climate change mitigation and adaptation initiatives). Grant based finance represents a significant share (almost 50%) in the EU and member states public contribution. At the same time, the EU actively seeks to extend the range and impact of sources and financial instruments and to mobilise more private finance, all being major tools to support international climate action. This way, the EU will continue to help developing countries to implement the 2015 Paris climate change agreement.
The 2023 figures reconfirm the EU and its member states resolute efforts for delivering on their international climate finance commitments, particularly towards the developed countries’ collective goal of mobilising $ 100 billion per year, which is applicable through to 2025.
Background
The €28.6 billion in climate finance from public budgets includes €3.2 billion from the EU budget, including from the European Fund for Sustainable Development Plus, and €2.6 billion from the European Investment Bank. The overall public figure is calculated based on commitments for bilateral and disbursements of multilateral finance reported for calendar year 2023.
The €7.2 billion figure regards the private financial support mobilised through public interventions (e.g., guarantees, syndicated loans, direct investment in companies, credit lines, etc.). It does not include any amounts of the public finance utilised for the mobilisation of this private financial support.
EU member states reported data on the 2023 climate finance pursuant to article 19.3 of regulation (EU) 2018/1999 of the European Parliament and of the Council of 11 December 2018 (‘governance regulation’) and article 6 and annexes III-V of Commission implementing regulation 2020/1208.
See original post here.
 
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EU greenhouse gas emissions fell by 8.3% in 2023, compared to 2022, reveals the latest climate action progress report by the European Commission. The report states that net greenhouse gas emissions are now 37% below 1990 levels. Over the same period, EU Gross Domestic Product (GDP) grew by 68%. This points to the fact that reducing emissions and economic growth are compatible. It also confirms that the EU remains on track to reach its goal of reducing emissions by at least 55% by 2030. 
Among the report’s findings are:

a record 16.5% decrease in 2023 emissions from power and industrial installations that are listed under the EU Emissions Trading System.
a 24% decrease in emissions from electricity production and heating, under the EU Emissions Trading System, driven by the growth of renewable energy sources, in particular wind and solar energy.
the EU Emissions Trading System generated revenues of €43.6 billion in 2023 for climate action investments.
around a 2% decrease in 2023 of overall buildings, agriculture, domestic transport, small industry and waste emissions. 

an 8.5% increase in 2023 in the EU’s natural carbon absorption, reversing the recent declining trend in the land use and forestry sector.

On the other hand, aviation emissions grew by 9.5%, continuing their post-COVID trend.
Despite the mostly encouraging findings of the report, recent extreme weather events in Europe underline the fact that continued action is needed.
During the past 5 years, the EU has led the way on tackling climate change and environmental degradation under its European Green Deal. It has adopted a set of proposals to make the EU’s climate, energy, transport and taxation policies fit for reducing net greenhouse gas emissions by at least 55% by 2030, compared to 1990 levels. It is also working towards the goal of no net greenhouse gas emissions by 2050. Work in this area will remain a priority under the new Commission mandate.
The EU will also continue its international engagement, starting with COP29 from 11-22 November 2024, to ensure that our international partners are also taking the necessary action.
 
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Today the Eurogroup in inclusive format adopted a statement on the competitiveness of the European economy.
Significant shifts in the geopolitical landscape, fragmentation in global trade flows, rapid technological advancements, climate change and the energy crisis are converging to create a highly complex and dynamic global environment. The fallout from Russia’s unprovoked war of aggression against Ukraine has created further challenges. The European economy has been particularly hit by the resulting shockwaves that have dampened growth, increased inflation, tightened financial conditions and worsened supply bottlenecks amid recovery from the Covid-19 pandemic. At the same time, Europe’s long-standing challenges, compounding low growth, stagnating productivity, insufficient innovation performance and demographic challenges remain unresolved. In this context, it is imperative and urgent to address the lagging performance of the European economy by increasing its productive capacity and enhancing its competitiveness through ambitious investment and well-calibrated structural reforms.
In November 2023, the Eurogroup in inclusive format launched a series of discussions on our competitiveness challenges and has drawn valuable policy insights, supported by inputs from the Institutions and distinguished external contributors. We considered the new European Competitiveness Deal agreed by the European Council on 17-18 April 2024, alongside the conclusions of Enrico Letta’s ‘Much more than a market’ high-level report and Mario Draghi’s report on ‘The Future of European competitiveness’. Our discussions covered key issues, including energy price trends, trade fragmentation, the European Union (EU)’s innovation and productivity gap and the role of industrial policy, as well as the funding gap to finance EU strategic investments. From these discussions, we have converged on a set of policy priorities and actions to meet these emerging and persistent challenges.
Addressing the EU’s innovation and productivity challenges to boost growth
Productivity growth is at the heart of income growth and prosperity. However, over the years, the productivity gap has widened between the EU and its trading partners, such as the United States of America (US), while emerging economies like China continue to increase competitive pressure. In response, we see it as a priority to address Europe’s underperformance in productivity by facilitating conditions for European businesses to invest and innovate. The EU productivity gap stems from a lagging innovation ecosystem, which has led to the EU falling behind in high-value-added sectors, particularly in information and communication technology and digital industries. We agree that it has become urgent to stimulate investment in research and development (R&D), particularly by a market-based approach to facilitating private sector spending through enhanced framework conditions for investment, structural reforms and by improving coordination of public funding, including at the EU level. Mobilising venture capital – particularly for start-ups and scale-ups – through deep, well-functioning and integrated European capital markets is key to channelling savings and risk capital, both from inside and outside the EU. This will more effectively allow European innovative companies to scale up and drive long-term growth and ultimately help the EU become a global leader in innovation.
Enhancing human capital is essential, particularly in light of the recent decline in student performance compared to global competitors. Education and training systems must better address skill mismatches and shortages by improving upskilling and reskilling schemes, supported by greater labour market flexibility, greater labour mobility within the EU and policies that attract and retain talent to ensure an adequate provision of human capital required to strengthen the EU’s innovation potential. Increasing labour market participation, in particular that of under-represented groups, as well as attracting talent from abroad, are also crucial to mitigate the consequences of population ageing.
Reducing the cost of energy and building EU energy resilience through coordination and integration
The energy price shock has demonstrated the extent to which our economies are reliant on affordable energy, while the coordinated EU response has highlighted the benefits of common action at EU level. The deployment of energy efficient, net-zero and low-carbon solutions will be needed. We recognise that a well-planned green transition and energy security are not only complementary imperatives, but can also present our economies with significant opportunities to achieve both our competitiveness and decarbonisation objectives by leveraging inexpensive, sustainable energy and reduce dependence on external sources. The transition towards renewable sources of energy, like wind and solar energy is well underway, but the intermittent nature of these sources requires a broad range of responses, including investments in demand flexibility, storage and energy infrastructure. Insufficient interconnections and grid capacity, compounded by the inefficient use of existing grids, impede the stabilisation of local fluctuations and fragmented national strategies risk leading to inefficient investments, high costs for taxpayers and consumers, and volatile electricity prices.
We agree that to address these challenges an EU-wide strategy to complement and bring together national strategies would be essential for effective electrification and the green transition. In particular, better and cost-effective grid interconnections, in particular cross-border, are crucial for connecting producers and consumers across wide geographic areas. An integrated and flexible European electricity market, connecting the renewable potential to areas of high demand within the Union, will lead to lower and more stable prices, attract private investment, reduce the need for storage and public subsidies for energy production, including renewable energy production, and strengthen our energy security. This, in turn, would lower fiscal pressures by reducing the need for energy subsidies and support economic growth by lowering costs for businesses and households. Well-functioning European energy infrastructure is of European common interest and vital for the EU’s competitiveness.
Strengthening EU economic security in a fragmenting global trade environment
The fragmenting global environment highlights both the importance and the fragility of open international trade, requiring us to be clear-eyed about implications for our economic security. The EU and its Member States have greatly benefited from free trade and should seek to continue doing so. It is in our interest to support an open and sustainable rules-based multilateral trading system, with the World Trade Organisation (WTO) at its core ensuring a global level playing field. Yet, the rules-based system has been increasingly undermined by distortive practices by some trading partners. This calls for strengthening our economic resilience and pursuing a more strategic approach to ensure the EU remains competitive in global markets while upholding fair trade practices. To this end, reinforcing international partnerships, diversifying and maintaining secure and resilient supply chains and proactively identifying risks of dependencies in strategic sectors are essential to safeguard our economic security in an increasingly complex global landscape and mitigate risks of external shocks and associated job losses.
Revitalising the Single Market to preserve European prosperity 
We reaffirm the importance of the Single Market as a pillar of European prosperity and cohesion, emphasising the need to extend, deepen and revitalise it, including by pursuing ambitious structural reforms, while ensuring a level playing field. We therefore look forward to the presentation of the Commission’s new horizontal strategy for the Single Market. Further facilitating the cross-border provision of services, including financial services and services essential for the green transition, opens opportunities for further modernisation and deepening of the Single Market. Moreover, further market integration and leveraging the Single Market are essential for businesses to grow and develop economies of scale necessary to build capacities, in particular in strategic sectors, and compete successfully on the global stage.
Predictable, competitive and fair framework conditions for businesses are necessary, as well as reducing entry barriers. At the same time, the growing regulatory burden is becoming an increasingly important obstacle for companies, in particular smaller businesses, to innovate, scale up and grow. We must reform and intensify efforts to improve the quality of regulation and effectively reduce administrative burdens.
The resurgence of industrial policy around the world in recent years is characteristic of a global trend towards securing technological leadership, decarbonising the economy, and reducing dependencies in a context of increased geopolitical tensions. We concur that widespread use of industrial policies, particularly at the national level, should be avoided as it risks undermining the Single Market. We agree that in specific cases industrial policy can address market failures and enhance our resilience and open strategic autonomy. However, it must be carefully designed, coupled with appropriate framework conditions for businesses and properly implemented to avoid risks such as rent-seeking, resource misallocation and trade distortions. Moreover, industrial policies should be limited in scope, future-oriented, aimed at creating a favourable business environment to boost investment and focused on technologies and sectors rather than individual companies. An effective enforcement of EU State aid rules should be maintained to guarantee an effective level playing field.
Coordinating investment strategies to finance EU priorities 
We acknowledge the significant financing needs associated with the green and digital transitions, new defence priorities and R&D. At a time when public finances have been affected by multiple crises and gradual and sustained fiscal consolidation is needed, the necessary investment should come primarily from private sources. Deepening the Capital Markets Union (CMU) is urgent and essential for enhancing financial integration and facilitating the mobilisation of private funds across the EU. We reiterate our commitment to deliver on the priority measures identified in our statement on the future of Capital Markets Union of 11 March 2024 to provide deep, well-functioning and integrated European capital markets for the benefit of consumers and business. Reducing fragmentation and regulatory barriers in access to finance remains crucial and we look forward for the new Commission presenting ambitious proposals in this regard. We are also committed to completing the Banking Union as outlined in our statement on the future of the Banking Union of 16 June 2022.
We recognise the need for synergies between public and private funding. Public funds are scarce and best used as a catalyst for leveraging private capital in areas with positive spillovers. In this context, effective ways to catalyse and leverage private capital should be explored at the national and European level, including through the involvement of the European Investment Bank (EIB), in line with its statutory framework. While private investment is vital, public financing also has an important role to play. European financing should focus on areas where public goods can be more effectively delivered jointly.
We are committed to addressing these challenges and to take action without delay to ensure a coherent European strategy for competitiveness across key policy areas. We will continue to coordinate and work collaboratively to undertake structural reforms and investments to enhance the competitiveness and resilience of the European economy in the face of ongoing global transformations, while maintaining economic, social and territorial cohesion. Our ability to invest, to innovate, to adapt, to reskill and upskill, to support a competitive private sector and to maintain sustainable public finances will not only shape our capacity to support European living standards, but also contribute to the resilience of the European economy. We will collaborate closely with the Institutions in implementing the policy priorities set out above and will regularly monitor the competitiveness of the European economy.
 
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The Commission welcomes today’s general approach announced by the Council on  the Commission’s proposals on VAT in the Digital Age. By embracing and promoting digitalisation, this package makes the EU’s VAT system more business-friendly and more resilient to fraud. The new rules also mark the first step to address the challenges raised by the development of the platform economy and helps level the playing field between online and traditional short-term accommodation and transport services.
This package introduces 3 measures:

The new system introduces uniform real-time digital reporting for VAT purposes based on e-invoicing for cross-border transactions, which will provide Member States timely with the valuable information they need to step up the fight against VAT fraud. E-invoicing will furthermore accelerate business transformation in the digital age by streamlining operations, ensuring compliance and security, enabling data-driven decision-making, and supporting scalability for future growth and innovation.
Moreover, platform economy operators in the passenger transport and short-term accommodation rental sectors will become responsible for collecting and remitting VAT to tax authorities, where the underlying supplier does not charge VAT. This measure will contribute to a better level playing field between online and traditional services and will make life easier for the underlying hosts and drivers, who will not be liable for the VAT.
Finally, this initiative will further reduce the need for multiple VAT registrations in different Member States, expanding the already existing ‘VAT One Stop Shop’ model for shopping-commerce companies.

Next steps
EU Finance Ministers are expected to adopt the proposal following a re-consultation with the European Parliament.
Background
VAT is one of the most important revenue streams for Member State authorities. However, according to the latest VAT GAP Report 2023, Member States lost around €61 billion in VAT revenues in 2021. To address these losses and respond to the increasing digitisation of the economy, in December 2022 the Commission proposed to modernise VAT obligations by promoting the digital transition. This legislative package was announced in the 2020 Action Plan for fair and simple taxation supporting the recovery strategy.
 
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The U.S. Commerce Department’s Bureau of Economic Analysis (BEA) reported last week that real gross domestic product (GDP) increased at an annual rate of 2.8 percent in the third quarter of 2024. Growth was in large part due to Americans making and spending more. Consumer spending increased 3.7%, the most since early 2023, thanks to rising incomes.
The economy has grown 12.6% under the Biden-Harris Administration, with the lowest average unemployment of any Administration in 50 years, and 16 million jobs created. This demonstrates stronger economic growth than during any other presidential term this century.
The U.S. economy grew 2.7 percent in the third quarter of 2024, compared to the same quarter a year ago. The increase in September’s current-dollar personal income primarily reflected an increase in compensation. The increase in real GDP for the third quarter of 2024 primarily reflected increases in consumer spending.
In addition, investments in manufacturing continue to boom. During the first nine months of this year, construction spending amounted to $1,621.4 billion, 7.3 percent above the $1,511.4 billion for the same period in 2023, according to the latest estimates from the US. Census Bureau. Driven by the building of houses and factories, annual manufacturing construction spending is a large contributor to GDP.
For more information, see our latest blog, Manufacturing Booms Thanks to Biden-Harris Administration Investments.
By the Numbers is a blog series that showcases the Commerce Department’s economic indicators and how they impact the American economy.
 
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Today, the Council approved conclusions on a European Court of Auditors’ (ECA) report aiming to strengthen EU’s AI ambitions, notably by enhancing governance and ensuring an increased, more focused investment when moving forward in this field.
The Council agrees with the Court’s conclusion that the EU must scale up investments in AI and facilitate access to digital infrastructure to be a globally competitive actor with a global impact, assume leadership in the development and deployment of AI, foster talent and create an ecosystem of excellence and trust.
Moreover, the Council underlines that the environmental impact of AI systems, high-performance computing, and possible solutions to increase energy efficiency, as well as securing a reliable hardware supply chain, are important factors, which should be also taken into account in AI policies.
The Council also agrees with the Court that close cooperation and collaboration with member states and international organisations, with a view to maximising the impact of investments at EU and national levels, while capitalizing on synergies, is a key element to ensure EU’s global leadership in AI and its positioning as a reference point for AI governance. In this regard, the Council invites the Commission to intensify the regular information sharing towards the Council and its relevant preparatory bodies to support the EU’s strategic engagement in international fora and cooperation with partners.
Finally, understanding that AI can boost European competitiveness if the results of R&I projects are commercialised or exploited directly or indirectly, the Council agrees with the Court about the need for measurable performance targets and indicators. The Council adds, however, that such indicators should be designed carefully without hindrance to the overall objective of the projects, in a way that would not add additional burdens to the beneficiaries, the member states, and implementing entities.
Background information
On 29 May 2024, ECA published its special report titled ‘EU artificial intelligence ambition – Stronger governance and increased, more focused investment essential going forward’, which provides an in-depth assessment of the effectiveness of several Commission actions between 2018 and 2023, including AI research and innovation support policies (2018-2022), and regulatory initiatives (2023). ECA underlines that the EU framework for coordinating and regulating EU investment in AI is a work in progress, whereas the Commission’s coordination and evaluation with the member states had limited effects. ECA also notes that the implementation of the envisaged enablers for AI innovation is ongoing and that, even if the Commission boosted the funding of research and innovation (R&I) in AI, such financial support lacks an effective framework for performance monitoring.
 
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By Piero Cipollone | As they juggle various cards, apps and devices, most Europeans find that digital payments have fallen short of their promise to provide a convenient euro area-wide solution. The ECB’s Piero Cipollone explains how a digital euro would blend the simplicity of cash with digital convenience.
Twenty-five years ago, the introduction of the euro transformed Europe. For the first time, people in different countries were using the same banknotes and coins. Who would have thought that the contents of our wallets could connect us all?
Since then, euro banknotes have simplified life for European families, merchants and travellers alike. No more additional fees or wondering if your payment method will be accepted. But in today’s digital age, that ease is fading.
Most Europeans now juggle different cards, apps and devices depending on each payment situation, finding that the convenience of digital payments doesn’t always live up to the promise. In the euro area, we are stuck in a fragmented system, where digital payment solutions don’t cover all our needs. While you might easily use a card to pay contactless for a meal or a taxi ride in cities like Madrid or Paris, rural areas in Germany or Austria often only accept cash or local debit cards. Similarly, some mobile apps work well for sending money to family or friends but aren’t accepted for online purchases or by local businesses.
In a nutshell, we still don’t have a digital payment solution that works effectively everywhere in the euro area in all payment situations. What if we could bring back the universal simplicity of cash, while embracing the convenience of the digital age? A digital euro would allow us to reclaim the freedom to pay digitally, seamlessly, anytime and anywhere – including when shopping online.
A digital euro would go hand in hand with banknotes, providing – for free – an all-in-one digital payment option across the euro area. The fragmentation we experience today could become a thing of the past.
You could easily access your digital euro wallet via the digital euro app, your bank’s app or a physical card to make instant payments. Imagine stopping at a café on your way to work and realising you’ve forgotten your wallet or don’t have enough cash. Or perhaps your card isn’t accepted when you go to pay. With a digital euro, you could pay seamlessly for your coffee by card or smartphone in all those situations, because it would be accepted by all European merchants that already accept digital payments. Think of it like a digital banknote. You’d also be able to use it to pay for things in all euro area countries, making travelling even easier.
The same applies to other everyday payments – whether paying for your children’s babysitter, sending money to your daughter studying abroad or shopping online – and potentially new situations. A digital euro could allow you to pay on delivery, for example, or when/if a train has arrived on time.
A digital euro would also address any concerns about resilience and privacy: using the offline function, you’d even be able to pay without an internet connection. The offline digital euro would provide a robust backup in critical situations like internet outages or in remote locations with limited connectivity, ensuring that your payments are uninterrupted and making our payments system more resilient. Moreover, when using the offline solution, personal transaction details would remain private – they’d only be known to you and the payment recipient, much like a cash payment.
So, what’s in it for you? Pending a final decision on whether to issue a digital euro, which will only be taken by the European Central Bank once European legislators have defined its legal framework, the project promises greater freedom and convenience. You’d be able to make instant payments anytime and anywhere in the euro area, with a single, free solution backed by the highest security and privacy standards.
This is the logical next step for our single currency. It’s time we had a digital euro to complement banknotes and simplify our lives, making our payments sector more cohesive, competitive, innovative and resilient.
I think – and I hope you agree – that’s something worth considering.
This article was published as an opinion piece in media outlets across the euro area.
Check out The ECB Blog and subscribe for future posts.
 
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Delivers on Governor Hochul’s 2024 State of the State Initiatives To Help Small, Rural and Disadvantaged Communities With Their Water Infrastructure Needs
Funding Awarded Across New York State in All 10 Economic Development Regions
Enhanced Awards for 32 Projects in Small, Rural Communities

Governor Kathy Hochul today announced that more than $435 million is being awarded to 102 critical water infrastructure projects across New York State through the Water Infrastructure Improvement and Intermunicipal Grant programs. The grants awarded by the New York State Environmental Facilities Corporation (EFC) deliver on Governor Kathy Hochul’s 2024 State of the State to help small, rural and disadvantaged communities with their water infrastructure needs. With critical financial support for local governments across New York, Governor Hochul is laying the foundation for a healthier, more resilient future, ensuring every New Yorker has access to safe and clean water, while creating jobs and boosting the economy.
“New York is committed to funding water infrastructure upgrades because every person has a right to clean water,”  Governor Hochul said.  “With this funding for communities across the State, we are providing critical resources to local economies, creating jobs and safeguarding the health and well-being of all New Yorkers.”
The  complete list of WIIA and IMG awardees, including an interactive map and projects by region, is available on EFC’s website.
These grants will support water infrastructure projects totaling more than $1 billion that safeguard drinking water from the risk of toxic chemicals, upgrade and replace water and wastewater infrastructure in a manner that will increase community resilience, regionalize water systems, support local economies, and are critical to protecting public health and the environment. The ratepayers are projected to save an estimated $1 billion in costs the communities would have incurred if they had financed the projects on their own.
Environmental Facilities Corporation President & CEO Maureen A. Coleman said,  ”EFC’s grants are a hallmark of New York State’s robust, nation-leading investment in the environment, which will help municipalities affordably invest in water infrastructure improvement projects. These grants will help get shovels in the ground for 102 water quality projects across New York State. EFC is committed to awarding grant funding to the communities that need it most, as demonstrated by the dedicated work of our Community Assistance Teams and the award of enhanced grants totaling $126.7 million amount to small, rural and disadvantaged communities.”
This round of WIIA/IMG boasts improvements announced as part of Governor Hochul’s 2024 State of the State to maximize benefits for rural and disadvantaged communities.
Enhanced Awards for 32 Projects in Small, Rural Communities
Even with extensive financial support from the State, some municipalities are left passing a large financial burden to their ratepayers. To alleviate this burden on small, rural and disadvantaged communities, Governor Hochul directed EFC to increase grants for small, rural communities from 25 percent to 50 percent of net eligible project costs. Examples of enhanced awards include:

Town of Peru (North Country) is awarded $11 million for upgrades to the Town of Peru Water Pollution Control Plant (WPCP), with a focus on effluent disinfection.

Saint Regis Mohawk Tribe is awarded $9.8 million for upgrades to the wastewater treatment plant.

Village of Richfield Springs (Mohawk Valley)  is awarded $9.1 million for improvements to the wastewater treatment plant and sewer rehabilitation.

Town of Ellicott (Western NY)  is awarded $3.2 million for the expansion of sewer service in the area around Fluvanna Avenue.

EFC’s Community Assistance Teams Helped Municipalities Secure Grants
Small, rural and disadvantaged communities are particularly impacted by deteriorating water infrastructure and emerging contaminants and often do not possess the resources and capacity necessary to advance a project for infrastructure improvement. Governor Hochul expanded EFC’s  Community Assistance Teams program that launched in 2023 to provide essential support for updating New York’s critical water infrastructure. Thirteen municipalities that worked with EFC through this critical initiative received grants, four of which are receiving enhanced awards:

Town of Mina (Western NY) is awarded $13 million for the construction of a new sanitary sewer collection system around Findley Lake and a new wastewater treatment plant to treat sewage from the new system.

Town of Potsdam (North Country) is awarded $1.4 million for the construction of a new sewer district.

Village of Parish (Central NY) is awarded $1 million for wastewater treatment plant improvements.

Town of Wilna (North Country) is awarded $154,527 for wastewater treatment facility upgrades.

Awards Totaling $66 million To Protect Drinking Water From Emerging Contaminants
Continuing New York’s national leadership on addressing the threat of PFAS, Governor Hochul increased awards for emerging contaminant projects from 60 percent to 70 percent of net eligible project costs. This change will help ensure cost is not a barrier for communities working to make life-saving investments that eliminate risks to their drinking water supplies. Examples of emerging contaminants projects include:

Village of Hempstead (Long Island)  is awarded $37 million for water treatment improvements to remove 1,4 Dioxane and PFAS.

Town of North Salem (Mid-Hudson)  is awarded $592,074 for the Pabst Water System PFOS Mitigation project.

Dutchess County Water & Wastewater Authority (Mid-Hudson)  is awarded $15 million for water system interconnection to remedy PFAS-Contaminated source water.

Suffolk County Water Authority (Long Island)  is awarded a total of $4.9 million for four projects using advanced oxidation to remove 1,4-dioxane from groundwater.

EFC administers the WIIA and IMG programs in coordination with the Department of Health (DOH). The State has awarded more than $2.9 billion in water infrastructure grants through EFC since 2015.
Department of Environmental Conservation Interim Commissioner Sean Mahar said, “Under Governor Hochul’s leadership, New York State continues to prioritize investments in clean water for communities statewide. Today’s award of $435 million will support more than 100 water projects across the State to protect public health and the environment. The investments, bolstered by EFC’s assistance to rural, smaller and disadvantaged communities, are advancing effective water infrastructure improvements that will benefit New Yorkers.”
State Commissioner of Health Dr. James McDonald said, “Governor Hochul is ensuring that New Yorkers throughout the State have access to clean drinking water, the foundation to good health. The financial support in this latest announcement will help municipalities make critical upgrades to their water systems, something they might not be able to afford on their own, and thus help to achieve greater health equity in our great state. New York State will continue to work with communities to ensure their water is safe to drink today and into the future.”
Secretary of State Walter T. Mosley said, “Clean water infrastructure is vital to public health and New York State is making a historic economic commitment for communities to address drinking water infrastructure needs. We thank Governor Hochul for her assistance of $435 million that will open doors for small, rural and disadvantaged communities to have an infusion of funds to get shovels in the ground to help create environmentally sound cities and towns for present and future generations.”
Majority Leader Andrea Stewart-Cousins said, “This $435 million in State grants represents a transformative investment in strengthening our water infrastructure, particularly in small, rural and disadvantaged communities. I am proud to have worked with Governor Hochul, Members of the Senate Majority and our partners in the Assembly, to secure this essential funding, which includes the $4.2 billion Clean Water, Clean Air and Green Jobs Environmental Bond Act of 2022, and $500 million for clean water infrastructure allocated in the 2024-2025 Budget. By making this investment in our small, rural and disadvantaged communities, we are not only empowering them to upgrade their infrastructure, but also improving public health, saving ratepayers money, building climate resilience and strengthening our economy.”
State Senator Pete Harckham said, “This major investment from the State ensures public health standards while supporting local businesses. Maintaining safe, accessible drinking water sources and supply systems is integral to future growth and prosperity, and I thank Governor Hochul, my colleagues in the State Legislature and the New York State Environmental Facilities Corporation for making the financial commitment to see this through.”
Assemblymember Deborah J. Glick said, “Water infrastructure improvements are a crucial component of protecting the health of New Yorkers and the environment. With the continued threats posed by PFAS and other chemical contamination, the use of lead service lines and increasingly destructive storms and flooding, we must remain focused on funding projects such as these around the State. I thank Governor Hochul and EFC for prioritizing water infrastructure improvement and look forward to working together to secure more funding next year to continue this critical work.”
New York League of Conservation Voters President Julie Tighe said, “Water is our most precious resource and investing in clean water infrastructure is absolutely critical for the health of all New Yorkers. We congratulate all of the water infrastructure awardees and commend Governor Hochul for her ongoing commitment to clean water and public health.”
The Nature Conservancy’s New York Policy and Strategy Director Jessica Ottney Mahar said, “The Nature Conservancy commends Governor Hochul for dedicating significant resources to protect clean drinking water and update critical infrastructure. State funding enables New York communities to protect public health, improve quality of life and strengthen local economies. The need for clean water is universal; every person, every animal, every community depends on it, which is why public investments like this are essential.”
Citizens Campaign for the Environment Executive Director Adrienne Esposito said, “Filtering out toxic PFAS and 1,4 Dioxane chemicals is one of the few things that everyone can enthusiastically support this year. These grants mean our drinking water will be safer, cleaner and more reliable, and that is why the public strongly supports clean water funding. Thank you to Governor Hochul for dispersing clean water funding in a timely and strategic way that protects public health and our environment.”
Environmental Advocates NY Senior Director of Clean Water Rob Hayes said, “We applaud Governor Hochul for delivering a transformative round of water infrastructure funding. These grants are a win-win for our economy and environment, protecting clean water and creating thousands of good-paying union jobs. We are especially thankful for increased funding to help communities remove toxic PFAS from drinking water, protecting public health. With this funding, the Governor is demonstrating her commitment to helping communities across the State be stronger, healthier and more affordable.”
New York’s Commitment to Water Quality
New York State continues to increase its nation-leading investments in water infrastructure, including more than $2.2 billion in financial assistance from EFC for local water infrastructure projects in State Fiscal Year 2024 alone. With $500 million allocated for clean water infrastructure in the FY25 Enacted Budget announced by Governor Hochul, New York will have invested a total of $5.5 billion in water infrastructure between 2017 and this year. Governor Hochul’s State of the State initiatives are ensuring ongoing coordination with local governments and helping communities to leverage these investments. The Governor increased WIIA grants for wastewater projects from 25 to 50 percent of net eligible project costs for smaller, disadvantaged communities. The Governor also expanded EFC’s Community Assistance Teams to help small, rural and disadvantaged communities leverage this funding and address their clean water infrastructure needs. Any community needing assistance with water infrastructure projects is encouraged to  contact EFC.

 
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