By John Bruton, former Irish Prime Minister (Taoiseach)
There is, at last, some movement in the Brexit negotiation.
On the UK side, Boris Johnson previously insisted on the Irish backstop being scrapped. Now he is making proposals (unacceptable so far to the EU) to rewrite it.
On the EU side, there is a movement too.
 The present Agreement contains a backstop to cover the whole UK. Now the EU is apparently willing to contemplate a backstop confined to Northern Ireland (NI) alone. This is a step backward for Ireland.  An “NI only” backstop would not protect Irish trade with Britain which is more valuable than trade across the border with NI.
Why are the new UK proposals for an NI only backstop unacceptable so far to the EU?
It is hard to give a complete answer to this question because the UK has insisted that its legal text for the new backstop remain confidential. This is a pity because any such text could benefit from constructive criticism from outside the narrow confines of the UK negotiation team and the Article 50 Task Force.
The only thing we have to go on is an Explanatory note published by the UK Government.
The note says the UK Government wants to uphold the Belfast Agreement of 1998. This Agreement was made in good faith by the then Irish government, on the basis of joint Irish and British membership of the EU Single Market, which had come into force only five years earlier in 1993, and had removed trade barriers between the two parts of Ireland.
 If there was at that time any possibility of the UK ever withdrawing from the Single Market, it would have been for the UK side to have brought that up in the negotiations. Neither the then UK government, nor the Tory Opposition, did so.
  If they had, there would probably have been no Belfast Agreement.
This is because the Belfast Agreement is all about convergence between North and South, as well as convergence between Ireland and Britain.  In contrast, Brexit inevitably is about divergence between North and South, AND divergence between Britain and Ireland. At a fundamental level they are incompatible. 
While everybody may now be acting in full good faith, there is also the issue for the EU of the structural reliability of the UK as a negotiating partner. 
 A Conservative government, with a parliamentary majority, signed a joint paper with the EU, committing it to protect the Belfast Agreement and to avoid border controls.  Now another Conservative government, in the same Parliament but now without a majority, wants to renege on that. 
UK public opinion sees no problem with this, but it is difficult for the EU. The EU would be setting a precedent for future negotiations, with the UK and with others. 
The latest UK proposals would align the regulatory standards for goods in NI, with EU standards. This is a welcome move, but it would mean new controls, between NI and Britain, to check compliance with EU standards. On the other hand it would remove the need for controls, for this particular purpose, at the land border in Ireland.
 But the proposals completely ignore tariffs there will be between the EU and UK. Once the transition period is over, imports from the UK will have to pay EU tariffs, which are quite high for some products, particularly agricultural ones. 
These tariffs will have to be collected at or near the land border in Ireland. The proposal to align NI and EU regulatory standards for goods does not solve that problem of tariffs on those same goods. 
The collection of these tariffs at or near the border will be highly contentious, although it will be absolutely necessary if Ireland is to remain in the EU. 
 If , in future, the UK  makes a trade agreements with a third country (say the US), and has to make concessions on either tariffs or goods standards to get these agreements, there would  then have to be additional or wider controls. These wider controls would be the land border for tariffs, and between NI and UK for standards.
 This problem would get steadily worse as time goes on. Boris Johnson has said that the UK will deliberately diverge from EU labour, environmental and product standards and will be making many concessions in his trade deals, so the scope and scale of the controls will become greater all the time.
 These will be either on the land border, or on the Irish Sea. Both go against the convergence goals of the Belfast Agreement. 
The new UK proposals envisage a system of notifications to prevent prohibited products entering the EU and for the collection of VAT. It remains to be seen if these can be rendered compatible with the EU Customs code, which envisages the tariff, tax, and quality status of goods being checked at the same place, at a customs post on the border.
 I expect the Article 50 Task force are now subjecting these UK proposals to forensic examination. They will ensure that Ireland’s status as a fully compliant part of the EU Single Market is not put in doubt and that the VAT is collected.  
The entire UK package would create dangerous new opportunities for smuggling, and smuggling is often used to finance political terrorism and mafia practices. 
The UK proposals are conditional on “Consent” in Northern Ireland to adherence to EU goods and food standards and to the Single Electricity Market.
 They would not to come into effect, without the consent of the NI Executive and Assembly. This consent would have to be renewed every four years. 
 The NI Assembly nowadays seems incapable of meeting, let alone of making decisions, so I do not think the EU being happy to delegate the future of any hard won compromise it makes with the UK to it. It would be giving a regional body, in a non EU state, a power to obviate an Agreement into which the EU would have entered in good faith every four years. We must not forget that the NI Assembly operates on the basis of a “petition of concern” whereby, a minority ( 30 out of 90)  of members in the Assembly, could block consent to deal . 
This  NI “consent” provision is to be inserted into the heart of what one hopes will to be a balanced, and hard fought, overall deal between the UK and the EU. I cannot see the EU agreeing to  all this being subject to the ongoing vagaries of NI politics. 
Compliments of John Bruton

Following the publication today of the World Trade Organization’s (WTO) award regarding the amount of U.S. countermeasures in the WTO Airbus dispute, Commissioner for Trade Cecilia Malmström made the following statement:
“The European Union takes note of the decision of the World Trade Organization’s (WTO) arbitration panel in the Airbus case, and the level of possible countermeasures.
We remain of the view that even if the United States obtains authorisation from the WTO Dispute Settlement Body, opting for applying countermeasures now would be short-sighted and counterproductive.
Both the EU and the U.S. have been found at fault by the WTO dispute settlement system for continuing to provide certain unlawful subsidies to their aircraft manufacturers.
In the parallel Boeing case, the EU will in some months equally be granted rights to impose countermeasures against the U.S. as a result of its continued failure to comply with WTO rules. A preliminary list of U.S. products to be considered for countermeasures was published last April.
The mutual imposition of countermeasures, however, would only inflict damage on businesses and citizens on both sides of the Atlantic, and harm global trade and the broader aviation industry at a sensitive time.
The European Commission has consistently communicated to the United States that the European Union is ready to work with them on a fair and balanced solution for our respective aircraft industries.
The aircraft sector is amongst the most complex industries in the world, from the development, production and financing point of view. The specificity of the sector calls for comprehensive subsidy disciplines so that all players compete on an equal footing.
The EU has, as recently as this July, shared concrete proposals with the U.S. for a new regime on aircraft subsidies, and a way forward on existing compliance obligations on both sides. So far the U.S. has not reacted.
Our readiness to find a fair settlement remains unchanged. But if the U.S. decides to impose WTO authorised countermeasures, it will be pushing the EU into a situation where we will have no other option than do the same.”
For More InformationWTO decision authorising countermeasuresHistory of the disputeParallel WTO dispute on Boeing and potential EU countermeasures

In a continued effort to reduce Europe’s carbon footprint and to make energy bills cheaper for European consumers, the Commission today adopted new eco-design measures for products such as refrigerators, washing machines, dishwashers and televisions. Improving the ecodesign of products contributes to implementing the ‘Energy efficiency first’ principle of the EU’s Energy Union priority. For the first time the measures include requirements for repairability and recyclability, contributing to circular economy objectives by improving the life span, maintenance, re-use, upgrade, recyclability and waste handling of appliances.

European Commission Vice-President for Jobs, Growth, Investment and Competitiveness Jyrki Katainen said: “Whether it is by fostering repairability or improving water consumption, intelligent eco-design makes us use our resources more efficiently, bringing clear economic and environmental benefits. Figures speak for themselves: these measures can save European households on average €150 per year and contribute to energy savings equal to annual energy consumption of Denmark by 2030. It is with concrete steps such as these that Europe as a whole is embracing the circular economy to the benefit of citizens, our environment and European businesses.”
European Commissioner for Climate Action and Energy, Miguel Arias Cañete said: “Together with smarter energy labels, our eco-design measures can save European consumers a lot of money, as well as help the EU reduce its greenhouse gas emissions. Eco-design is therefore a key element in the fight against climate change and a direct contribution to meeting the goals set in the Paris Agreement. As we move towards our long-term goal of a fully decarbonised EU by 2050, our energy efficiency and eco-design strategy will become ever more important”.
Commenting on the adoption of the measures, Monique Goyens, Director general of BEUC, the European Consumer Association, said: “The new repair requirements will help improve the lifetime of everyday appliances that currently fail too quickly. It is crucial we bin the current ‘throwaway’ trend, which depletes natural resources and empties consumers’ pockets. It is excellent news that consumers’ health will be better protected, thanks to fewer flickering light bulbs and the removal of harmful flame retardants in TV screens. The EU has started with five products that most consumers own at home and we strongly encourage legislators to make more product categories repairable.”
Paolo Falcioni, Director General of APPLiA, the European home industry appliance association, said: “The new, ambitious, ecodesign requirements on improving resource efficiency are a tool to ensure that all actors play by the same rules and advance the Circular Culture concept. Provided that market surveillance authorities could have enough resources and coordination to face new difficulties in verifying the compliance with the law.”
Chloé Fayole (Programme & Strategy Director at the environmental NGO ECOS) commented on behalf of the Coolproducts campaign, led by ECOS (European Environmental Citizens Organization) and the EEB (European Environmental Bureau): “Ecodesign continues to be a European success story, in terms of energy savings and now repairability of products. Giving Europeans the right to repair products they own is common sense, and we therefore welcome the decisions that the EU has made.”
The Commission estimates that these measures, together with the energy labels adopted on 11 March, will deliver 167 TWh of final energy savings per year by 2030. This is equivalent to the annual energy consumption of Denmark and corresponds to a reduction of over 46 million tonnes of CO2 equivalent. These measures can save European households on average €150 per year.
These savings come on top of those achieved by the existing eco-design and energy label requirements, which are expected to deliver yearly energy saving of around 150 Mtoe (million tonnes of oil equivalent) by 2020, roughly equivalent to the annual primary energy consumption of Italy.For consumers, this already means an average saving of up to €285 per year on their household energy bills.
Background
After a consultation process, the Commission has adopted 10 ecodesign implementing Regulations, setting out energy efficiency and other requirements for the following product groups: refrigerators; washing machines; dishwashers; electronic displays (including televisions); light sources and separate control gears; external power supplies; electric motors; refrigerators with a direct sales function (e.g. fridges in supermarkets, vending machines for cold drinks); power transformers; and welding equipment.
Compliments of the European Commission

Overweight and obesity rates among adults continue to climb across OECD countries. Childhood and morbid obesity have gone from a rare event to a common occurrence. Obesity now poses an alarming burden on individuals, societies and economies in OECD countries and beyond.
A new OECD report, The Heavy Burden of Obesity – The Economics of Prevention, will be published at 11.00 a.m. Paris time on Thursday 10 October 2019, the day before World Obesity Day. It analyses the economic, social and health costs of the rising number of people who are obese or overweight. By linking its advanced microsimulation model with the OECD’s long-term projection model, this report estimates the impact of obesity on health expenditure and the wider economy in 52 countries to 2050. The analysis also shows how obesity not only reduces life expectancy but also damages pupils’ school performances, workforce productivity, and undermines economic growth.
The report, together with country notes for Australia, Canada, France, Germany, Italy, Mexico, Spain and the United Kingdom, will be available under embargo on Wednesday 9 October. Requests should be sent by e-mail to embargo@oecd.org. In asking to receive it under embargo, journalists undertake to respect the OECD’s embargo procedures.
Complimenst of OECD

The Executive Board of the International Monetary Fund (IMF) today selected Kristalina Georgieva to serve as IMF Managing Director and Chair of the Executive Board for a five-year term starting on October 1, 2019. Ms. Georgieva, who succeeds Christine Lagarde, is the first person from an emerging market economy to lead the IMF since its inception in 1944.
The selection of Ms. Georgieva by the 24-member Executive Board representing the IMF’s 189 member countries brings to a conclusion the selection process initiated by the Executive Board on July 26, 2019 (see Press Release No. 19/302). Following interviews with Ms. Georgieva, Executive Directors selected her for the position, effective October 1.
The Managing Director is the chief of the IMF’s operating staff and Chair of the Executive Board. The Managing Director is assisted by four Deputy Managing Directors in the operation of the Fund, which serves its membership through about 2,700 staff.
Ms. Georgieva, a national of Bulgaria, has been the Chief Executive Officer of the World Bank since January 2017. From February 1, 2019 to April 8, 2019, she was the Interim President for the World Bank Group. Starting in 2010, she was at the European Commission, serving as Commissioner for International Cooperation, Humanitarian Aid and Crisis Response, then as Vice President for Budget and Human Resources. Ms. Georgieva has a Ph.D. in Economic Science and a M.A. in Political Economy and Sociology from the University of National and World Economy in Bulgaria, where she also taught from 1977 to 1991.
Compliments of the IMF

Today in the margins of the United Nations General Assembly in New York, the European Union and the United Nations are hosting a high level event on the EU-UN Spotlight Initiative – inviting all countries, leaders, civil society representatives and local ambassadors to join the movement and take action to end violence against women and girls.

Ahead of the event, High Representative/Vice-President Federica Mogherini said: “Violence against women is violence against the entire society – so the entire society must react to end it. The European Union is already by far the first investor in gender equality around the world, and together with our partners, we will continue to fight for women’s human rights.”
Commissioner for International Cooperation and Development Neven Mimica added: “Over the last two years Spotlight has become a genuine movement. Thanks to the many survivors, activists, advocates, government and community leaders who have joined the initiative we are pushing ahead to end gender-based violence in all its forms. And to make sure that every woman and every girl, everywhere, is safe and free to realise her full potential.”
Deputy Secretary-General, Amina Mohammed said: “The Spotlight Initiative in partnership with national governments will also be introducing new country programmes for Afghanistan, Belize, Grenada, Guyana, Haiti, Jamaica, Kyrgyzstan, Papua New Guinea, Samoa, Tajikistan, Timor-Leste and Vanuatu in 2020. With our expanded global footprint, we can scale-up our collective efforts on violence prevention, protection and the provision of high-quality services, alongside broader efforts to ensure women’s economic empowerment and participation in all aspects of society.”
Two years after its launch, the Spotlight Initiative’s activities are spanning the entire globe – thanks to the EU’s and UN’s engagement, and the support of partner governments and civil society at all levels. 13 countries have already started implementing Spotlight programmes, and around 2/3 of the European Union’s initial seed funding of €500 million have already been allocated.
In Africa, Spotlight aims to eliminate sexual and gender-based violence, including harmful practices. The programme worth €250 million is under implementation across Liberia, Malawi, Mali Mozambique, Niger, Nigeria, Uganda and Zimbabwe. It will also include a regional component to scale up existing initiatives on fighting female genital mutilation and child marriage and joint activities with the Africa Union.
In Asia, the Spotlight Initiative is focussing on ending female trafficking and labour exploitation. The “Safe and Fair” programme, worth €25 million and implemented through the International Labour Organization and UN Women, aims at ensuring that labour migration is safe and fair for all women in the ASEAN region. It focusses on countries of origin – Cambodia, Indonesia, Lao PDR, Myanmar, Philippines, Vietnam – and countries of destination – Brunei Darussalam, Malaysia, Singapore and Thailand.
Further, €32 million are devoted to projects addressing gender-based violence in “forgotten crises”. The initiative is now rolling out and includes activities in Yemen, Iraq and Palestine, Bangladesh, Cameroon, Sudan, Mali and Chad; Ghana, Liberia and Mali.
In Latin America, the €50 million initiative focuses on ending femicide, with targeted programmes in Argentina, El Salvador, Guatemala, Honduras and Mexico, and on empowering regional networks.
The Pacific regional Spotlight programme was launched last March with a budget of €50 million and focuses on ending domestic violence in the region.
This will be followed by actions to tackle family violence in the Caribbean region, supported by an envelope of €50 million; the countries selected are Haiti, Jamaica, Grenada, Belize, Guyana, and Trinidad and Tobago.
Background
Violence against women and girls still takes place every day, whether at home, at work, at school, in the street, or online. As many as 1 in 3 women worldwide have experienced physical or sexual violence at some point in their lives.
The European Union and the United Nations launched the Spotlight Initiative, a multi-year partnership to eliminate all forms of violence against women and girls (VAWG) in September 2017.
The EU has offered initial seed funding of €500 million inviting other donors and partners to join the Initiative to broaden its reach and scope.
Public participation, ambitious political action that are built on evidence-based policies, as well as increased resources and knowledge generation are all vital to the Initiative.
Compliments of the European Commission

An international criminal network involved in the trafficking of 167 people for labour exploitation was taken down by the national authorities of France and Bulgaria in several joint action days. One French and three Bulgarian suspects were arrested and heard in France, and numerous searches were carried out in Bulgaria. Eurojust, the EU’s Judicial Cooperation Unit, supported the simultaneous operations through real-time coordination of the national judicial and law enforcement authorities, and by setting up a joint investigation team (JIT). The JIT allowed the authorities to safely and rapidly exchange vital information on the national investigations, and agree on and implement a common strategy.

In February 2019, the Specialised Jurisdiction (JIRS) of Lyon undertook an investigation into an organised crime group (OCG) and its leaders, involved in trafficking in human beings for the purpose of labour exploitation, as well as in money laundering. At the same time, a parallel investigation into the same criminal gang was initiated by the Bulgarian Specialised Prosecutor’s Office. Due to the transnational dimension of the case, the Public Prosecutor of Lyon immediately referred the case to Eurojust to coordinate and advance the national investigations, leading to the successful joint action days.
The members of the criminal network, which is composed of Bulgarian and French nationals, used a Bulgarian recruitment agency to attract underprivileged Bulgarians to perform allegedly well-paid jobs as seasonal workers in French vineyards. The aspiring workers were also promised free accommodation and transport, the costs of which were unknowingly deducted from their salaries, along with other high charges. The victims of the gang ended up receiving only two thirds of their income, which was not even sufficient to finance their transport back to Bulgaria. The human traffickers are also suspected of using properties in France to launder their ill-gotten gains.
The operation mobilized more than 80 French investigators, as well as several Bulgarian police officers, with the support of Europol  providing analytical and operational support.
Compliments of Eurojust

A joint statement following the third annual EU-US Privacy Shield review stressed the need for strong and credible enforcement of privacy rules to protect citizens and ensure trust in the digital economy.
Today, U.S. Secretary of Commerce Wilbur Ross and EU Commissioner for Justice, Consumers, and Gender Equality Věra Jourová made the following statement regarding the third annual joint review of the EU-U.S. Privacy Shield Framework:
“Senior officials from the United States Government, the European Commission, and EU data protection authorities gathered in Washington, DC on 12 and 13 September to conduct the third annual joint review of the EU-U.S. Privacy Shield Framework. The broad and senior level participation from both sides underscored the shared and longstanding commitment of the United States and the European Union to the Framework.
The U.S. Department of Commerce hosted the two-day review, which covered all aspects of the functioning of the Privacy Shield Framework from its administration and enforcement to broader U.S. legal developments regarding matters related to commercial data protection and national security data access. The review benefited from input from Privacy Shield participants and civil society stakeholders.
Privacy Shield ensures that participating companies and relevant government authorities provide a high level of protection for the personal data of EU individuals.  Since the Framework’s implementation on 1 August 2016, more than 5,000 companies have made public and legally enforceable pledges to protect data transferred from the EU in accordance with the Privacy Shield Principles.  The rapid and continued growth of the program demonstrates Privacy Shield’s vital role in protecting personal data and contributing to the $7.1 trillion economic relationship between the United States and Europe.
The EU and U.S. welcomed the appointment of several key U.S. officials with Privacy Shield responsibilities. The United States Senate confirmed two additional members to the independent, bipartisan U.S. Privacy and Civil Liberties Oversight Board, as well as Keith Krach, who in his Under Secretary role at the U.S. Department of State serves as the Privacy Shield Ombudsperson.
EU and U.S. officials both stressed the need for strong and credible enforcement of privacy rules to protect our citizens and ensure trust in the digital economy. As provided for in the Framework, the Department of Commerce will revoke the certification of companies that do not comply with Privacy Shield’s vigorous data protection requirements.
The European Commission will publish a report on the functioning of the Privacy Shield. This report will conclude this year’s review process.”
BackgroundOperational since 1 August 2016, the EU-US Privacy Shield protects personal data transferred from the EU to the U.S. for commercial purposes. It brings also legal clarity for businesses relying on the transmission of personal data across the Atlantic. By now, more than 5000 companies are certified under the Privacy Shield and thereby committing to comply with the data protection requirements.
As agreed at the time of its launch, the EU-US Privacy Shield is reviewed on a yearly basis, to assess that it continues to ensure an adequate level of protection of personal data. On 12 September 2019, Commissioner for Justice, Consumers and Gender Equality Věra Jourová, launched with the US Secretary of Commerce Wilbur Ross the discussions over the third annual review of the EU-U.S. Privacy Shield. The reports on the first and second review can be found here. The report of the third review will be made available at a later stage.
Download the full PDF here.
Compliments of the European Commission

Christine Lagarde obtained Parliament’s approval to be the ECB’s next President, in a plenary vote on Tuesday.

In the secret vote, MEPs voted 394 in favour, 206 against and 49 abstentions to recommend Ms Lagarde to head up the European Central Bank.
The European Parliament gives a non-binding opinion on whether or not a candidate is suitable to fill the role of President of the ECB, with the final decision taken by the European Council. She is due to replace the current incumbent, Mario Draghi on 1 November.
Earlier on Tuesday, the plenary held a debate on her suitability for the position.
Next steps
Ms Lagarde’s candidature will now be put on the agenda of October’s European Council summit.
Compliments of European Parliament