As the night draws in this evening, the sun will set on more than 45 years of the United Kingdom’s membership of the European Union. For us, as Presidents of the three main EU institutions, today will inevitably be a day of reflection and mixed emotions – as it will for so many people.
Our thoughts are with all of those who have helped to make the European Union what it is today. Those who are concerned about their future or disappointed to see the UK leave. Those British members of our institutions who helped shape policies that made lives better for millions of Europeans. We will think of the UK and its people, their creativity, ingenuity, culture, and traditions, that have been a vital part of our Union’s tapestry.
These emotions reflect our fondness for the United Kingdom – something which goes far beyond membership of our Union. We have always deeply regretted the UK’s decision to leave but we have always fully respected it, too.  The agreement we reached is fair for both sides and ensures that millions of EU and UK citizens will continue to have their rights protected in the place they call home.
At the same time, we need to look to the future and build a new partnership between enduring friends. Together, our three institutions will do everything in their power to make it a success. We are ready to be ambitious.
How close that partnership will be depends on decisions that are still to be taken. Because every choice has a consequence. Without the free movement of people, there can be no free movement of capital, goods and services. Without a level playing field on environment, labour, taxation and state aid, there cannot be the highest quality access to the single market. Without being a member, you cannot retain the benefits of membership.
Over the next weeks, months and years we will have to loosen some of the threads carefully stitched together between the EU and the UK over five decades. And as we do so, we will have to work hard to weave together a new way forward as allies, partners and friends.
Whilst the UK will cease to be an EU member, it will remain part of Europe. Our shared geography, history and ties in so many areas inevitably bind us and make us natural allies.  We will continue to work together on foreign affairs, security and defence with a common purpose and shared mutual interests. But we will do it in different ways.  
We do not underestimate the task that lies before us but we are confident that with goodwill and determination we can build a lasting, positive and meaningful partnership.    
But tomorrow will also mark a new dawn for Europe.
The last few years have brought us closer together – as nations, as institutions and as people. They have reminded us all that the European Union is more than a market or economic power but stands for values that we all share and defend. How much stronger we are when we are together.
This is why the Member States of the European Union will continue to join forces and build a common future. In an age of great power competition and turbulent geopolitics, size matters. No country alone can hold back the tide of climate change, find the solutions to the digital future or have a strong voice in the ever-louder cacophony of the world.
But together, the European Union can.
We can because we have the largest internal market in the world. We can because we are the top trading partner for 80 countries. We can because we are a Union of vibrant democracies. We can because our peoples are determined to promote European interests and values on the world stage. We can because EU member states will leverage their considerable, collective economic power in discussions with allies and partners – the United States, Africa, China or India.
All of this gives us a renewed sense of shared purpose. We have a common vision of where we want to go and a commitment to be ambitious on the defining issues of our times. As set out in the European Green Deal, we want to be the first climate neutral continent by 2050, creating new jobs and opportunities for people in the process. We want to take the lead on the next generation of digital technologies and we want a just transition so that we can support the people most affected by change.
We believe only the European Union can do this. But we know we can only do it together: people, nations, institutions. And we, as Presidents of the three institutions, are committed to playing our part.  
That work continues as soon as the sun rises tomorrow.
Ursula von der Leyen
Pres. of the European Commission                      
Charles Michel
Pres. of the European Council                      
David Maria Sassoli
Pres. of the European Parliament
Compliments of the European Commission.
The article appeared among others in 24 Chasa, Alithia, De Volkskrant, Dnevnik, Frankfurter Allgemeine, Gazeta Wyborcza, In-Nazzion, Jutarnji List, Kronen Zeitung, La Repubblica, Latvijas Avize, Le Parisien, Le Quotidien, Le Soir, Lidové noviny, Maaseudun Tulevaisuus, Magyar Nemzet, Politiken, Publico, Svenska Dagbladet, The Times.

In June 2016, the ECB launched its corporate sector purchase programme, through which it purchased corporate bonds in an effort to improve the financing conditions of euro area firms. In this article, I argue that the programme was successful. In particular, by increasing prices and reducing yields in the targeted bond market segment, the programme encouraged investors to shift their investments towards similar but somewhat riskier bonds. This reduced borrowing costs for many firms, including those whose bonds were not eligible for direct purchase by the ECB.
The corporate arm of the ECB’s quantitative easing
When interest rates are already so low that conventional rate cuts cannot further stimulate the economy, central banks may directly intervene in financial markets by buying assets from both the sovereign and the corporate sectors. That is exactly what the ECB started doing in March 2015. In that month, the ECB began purchasing assets issued by euro area central governments, agencies and European institutions. Then, in June 2016, it expanded the purchases to the corporate sector via the corporate sector purchase programme, or CSPP.
The aims of the CSPP were twofold. The first was straightforward: to signal that the ECB was committed to providing further stimulus to the economy. The second was somewhat more complex. Through the CSPP, the ECB wanted to lower the yield on the bonds that were targeted for purchase. However, mainly through the working of the so-called portfolio rebalancing channel, it also wanted to influence other asset prices, in particular those of corporate bonds not eligible for its own purchases. In this way, the ECB could support the financing conditions of all firms borrowing in the bond market (Draghi 2015, ECB 2017).
The portfolio rebalancing channel mainly works through investors shifting their investments away from the segment in which the ECB is making purchases. The idea is that investors, facing a scarcity of eligible bonds due to the ECB’s asset purchases, are encouraged to reallocate their holdings to other, riskier, bonds. This portfolio “rebalancing” in turn leads to higher prices and lower yields also for bonds in non-eligible market segments (Vayanos and Vila 2009, Krishnamurthy and Vissing-Jorgensen 2011, Hancock and Passmore 2011).[2]
While we know in theory how the rebalancing channel works, do we have any indication that it works in practice? In a recent research paper, I address this question through an empirical analysis (Zaghini, 2019). In particular, I analyse the evolution of the prices and quantities of bonds in three different market segments after the implementation of the CSPP: bonds actually purchased, eligible bonds not purchased, and bonds that were not eligible. Below I describe the article’s main findings. The main conclusion is that the CSPP, through the portfolio rebalancing channel, significantly reduced the cost of borrowing for euro area firms.
Portfolio rebalancing at work
In a nutshell, under the CSPP the Eurosystem purchases bonds issued by non-bank corporations registered in the euro area, denominated in euro, and that have at least an investment-grade rating. It purchases them both in the primary market (i.e. upon issuance) and in the secondary market.[3] I examine the effect of the CSPP by looking at changes in corporate bond spreads (the difference between the actual bond yield and an equivalent risk-free rate): if the implementation of the programme leads to a decline in such spreads, it will have succeeded in reducing borrowing costs for firms.
A first look at the evidence seems encouraging. Immediately after the announcement of the CSPP in March 2016, spreads on secondary market trades declined in both eligible and non-eligible market segments (see Chart 1). Initially, spreads on eligible bonds declined faster than those on non-eligible bonds, suggesting a larger improvement in the funding conditions for investment-grade firms. However, by June 2017 the gap had narrowed significantly, to the point of disappearance, thus hinting at better funding conditions also for lower rated firms.
While the evidence in Chart 1 is telling, bond spreads depend on many factors, such as the riskiness of the issuer, the amount placed and the maturity of the bond. Thus, in order to isolate the spread component due to the CSPP, I rely on a model proposed by Sironi (2003) and Zaghini (2016) for the euro area primary bond market. The model takes into account a large number of bond features and firm characteristics. In addition, it also considers the market conditions on the exact issuance date of every single bond. This makes it possible to isolate the effects of the CSPP on the bonds’ spreads quite precisely.
The empirical analysis shows that after a large signalling effect upon announcement (which saw spreads decrease by 36 basis points), the effect of the CSPP purchases on bond yields strengthened over time. In the first six months of the programme, from July to December 2016, eligible bonds enjoyed a spread (around 70 basis points) significantly lower than that on non-eligible bonds. This applied to all eligible bonds, regardless of whether or not they were purchased on the primary market by the ECB. By contrast, non-eligible bonds recorded a slight deterioration of their financing conditions. However, the difference between the two sets of bond spreads vanished in 2017. Indeed, in the first two quarters of that year non-eligible bonds caught up significantly, their spreads decreasing by around 50 basis points.
The spread dynamics estimated by the model are fully consistent with the theory on how the portfolio rebalancing channel works. In the first six months of the CSPP, the ECB purchased a great deal of eligible bonds. Doing so drove up prices (and accordingly reduced the spreads) in that market segment, crowding out other investors. Those investors then reached for the non-eligible bonds which are close substitutes, but have higher expected returns. Due to the higher demand for non-eligible bonds, that segment also saw prices increase and yields decrease.
In addition to price dynamics, the changes over time in the quantities of bonds issued in the two market segments suggest that the portfolio rebalancing channel was working. First there was a significant rise in both the number of bonds and the total volume issued in the eligible market segment in the second half of 2016. Then this was followed by a similar increase in the non-eligible segment in the first half of 2017. While the former increase was entirely driven by the additional demand from the ECB, the latter was purely market-driven and so due to the working of the rebalancing channel, since it only involved bonds which were not targeted by the ECB.
Concluding remarks
The announcement and actual deployment of the CSPP provide a good case study of the effects of large-scale asset purchase programmes. This analysis of developments in estimated bond spreads and amounts issued in the primary market shows that the programme eventually influenced the whole corporate bond market.
Indeed, in a first phase the CSPP only had an effect on the bonds directly targeted – immediately improving the funding conditions of eligible corporations, and gradually crowding out the other investors in that segment. Six months into the programme, the effect spilled over to non-eligible bonds. This was possible because the scarcity brought about in the eligible bond segment pressed investors to rebalance their portfolios towards other similar, but riskier, segments – in particular towards non-eligible corporate bonds. In this way the programme had an effect on both market segments. As a result, it achieved a more far-reaching improvement in the borrowing conditions of euro area corporations.
Compliments of the European Central Bank

The Governing Council of the European Central Bank (ECB) today launched a review of its monetary policy strategy. The monetary policy strategy was adopted in 1998 and some of its elements were clarified in 2003.
Since 2003 the euro area and the world economy have been undergoing profound structural changes. Declining trend growth, on the back of slowing productivity and an ageing population, as well as the legacy of the financial crisis, have driven interest rates down, reducing the scope for the ECB and other central banks to ease monetary policy by conventional instruments in the face of adverse cyclical developments. In addition, addressing low inflation is different from the historical challenge of addressing high inflation. The threat to environmental sustainability, rapid digitalisation, globalisation and evolving financial structures have further transformed the environment in which monetary policy operates, including the dynamics of inflation.
In the light of these challenges, the Governing Council has decided to launch a review of its monetary policy strategy, in full respect of the ECB’s price stability mandate as enshrined in the Treaty.
“As our economies are undergoing profound changes, it is the time for a strategy review to ensure we deliver on our mandate in the best interest of Europeans,” said ECB President Christine Lagarde.
The Governing Council will take stock of how the monetary policy strategy has supported the fulfilment of the ECB’s mandate under the Treaty over the years and consider whether any elements of the strategy need to be adjusted. The quantitative formulation of price stability, together with the approaches and instruments by which price stability is achieved, will figure prominently in this exercise. The review will also take into account how other considerations, such as financial stability, employment and environmental sustainability, can be relevant in pursuing the ECB’s mandate. The Governing Council will review the effectiveness and the potential side effects of the monetary policy toolkit developed over the past decade. It will examine how the economic and monetary analyses through which the ECB assesses the risks to price stability should be updated, also in view of ongoing and new trends. Finally, it will review its communication practices.
The process is expected to be concluded by the end of the year. The Governing Council will be guided by two principles: thorough analysis and open minds. Accordingly, the Eurosystem will engage with all stakeholders.
Compliments of the European Central Bank

The Presidents of the three main EU institutions will meet on Thursday in Bazoches to debate the future of the EU as well as current geopolitical challenges.

European Parliament President David Sassoli, European Council President Charles Michel and European Commission President Ursula von der Leyen will meet in Bazoches-sur-Guyonne (France) at the Jean Monnet House, a symbolic place for the history of European integration.
They will discuss the future of the EU, including the upcoming Conference on the Future of Europe, current geopolitical challenges as well as the climate and digital transitions.
President Sassoli said: “We stand at a new departure for Europe. The internal and external challenges facing us remind us all that the European Union is more than a market or economic power, but stands for values that we all share and defend. Our reflections should not forget how much stronger we can be when we act together.”
The three Presidents will wind up the discussions with a joint statement, to be delivered in the European Parliament in Brussels on the morning of Friday 31 January at 11:00. More details will follow.
Compliments of the European Commission

Ahead of 1 February 2020, the day on which the UK will leave the EU in accordance with the Withdrawal Agreement  concluded between the EU and the UK (read the latest news here), the EUIPO has updated the Brexit section on its website.
The Withdrawal Agreement stipulates that during a transition period that will last until 31 December 2020, EU law remains applicable to and in the UK. This extends to the EUTM and RCD Regulations and their implementing instruments.
This continued application of the EUTM Regulations and the RCD Regulations during the transition period includes, in particular, all substantive and procedural provisions as well as the rules concerning representation in proceedings before the EUIPO.
In consequence, all proceedings before the Office that involve grounds of refusal pertaining to the territory of the UK, earlier rights originating from the UK, or parties/representatives domiciled in the UK will run as they did previously, until the end of the transition period.  
For more information, please consult the relevant section on our website.
Compliments of the European Commission

The Constitutional Affairs Committee agreed on Thursday to recommend that the EP plenary should approve the UK withdrawal terms.

After parliamentary ratification in the UK was concluded earlier today, with Royal Assent granted for the European Union (Withdrawal Agreement) Bill, Constitutional Affairs Committee MEPs voted in favour of a positive recommendation regarding the EU-UK Withdrawal Agreement, with 23 votes for, three against and no abstentions.
The vote took place after a statement by Committee Chair Antonio Tajani (EPP, IT) and a discussion between the Parliament’s Brexit coordinator Guy Verhofstadt (Renew Europe, BE) and political group coordinators.
The debate in the Committee focussed on Parliament’s contribution to protecting citizens’ rights in the context of Brexit (with the majority of speakers during the first round commending the EU’s negotiating team), as well as the steps that should be taken by the UK and EU27 governments to continue protecting these rights during the transition period and beyond. The discussion also addressed the overall impact of Brexit and the future relationship between the EU and the UK, which is going to be the objective of the future negotiations.
You can watch the debate on EP Live. Click on the links below for specific parts of the meeting.
Opening statement by Chair Antonio Tajani
Statement by the rapporteur Guy Verhofstadt
Statements by the shadow rapporteurs
Interventions by MEPs on behalf of political groups
Recording of the vote
Statements by MEPs after the vote: part one and part two
Next steps
The UK’s withdrawal from the EU is set for midnight CET on 31 January 2020, with Parliament scheduled to vote on the Agreement next Wednesday, 29 January. To enter into force, any withdrawal agreement between the EU and the UK needs to be approved by the European Parliament by a simple majority of votes cast (Article 50 (2) of the Treaty on European Union). The Council will then conclude the process on the EU side by a qualified majority vote, foreseen for 30 January.
Compliments of the European Parliament

Christine Lagarde, President of the ECB,Luis de Guindos, Vice-President of the ECB,Frankfurt am Main, 23 January 2020
Ladies and gentlemen, the Vice-President and I are very pleased to welcome you to our press conference. We will now report on the outcome of today’s meeting of the Governing Council.
Based on our regular economic and monetary analyses, we decided to keep the key ECB interest rates unchanged. We expect them to remain at their present or lower levels until we have seen the inflation outlook robustly converge to a level sufficiently close to, but below, 2% within our projection horizon, and such convergence has been consistently reflected in underlying inflation dynamics.
We will continue to make net purchases under our asset purchase programme (APP) at a monthly pace of €20 billion. We expect them to run for as long as necessary to reinforce the accommodative impact of our policy rates, and to end shortly before we start raising the key ECB interest rates.
We also intend to continue reinvesting, in full, the principal payments from maturing securities purchased under the APP for an extended period of time past the date when we start raising the key ECB interest rates, and in any case for as long as necessary to maintain favourable liquidity conditions and an ample degree of monetary accommodation.
Today the Governing Council also decided to launch a review of the ECB’s monetary policy strategy. Further details about the scope and timetable of the review will be published in a press release today at 15:30 CET.
The incoming data since our last meeting are in line with our baseline scenario of ongoing, but moderate, growth of the euro area economy. In particular, the weakness in the manufacturing sector remains a drag on euro area growth momentum. However, ongoing, albeit decelerating, employment growth and increasing wages continue to support the resilience of the euro area economy. While inflation developments remain subdued overall, there are some signs of a moderate increase in underlying inflation in line with expectations.
The unfolding monetary policy measures are underpinning favourable financing conditions for all sectors of the economy. In particular, easier borrowing conditions for firms and households are supporting consumer spending and business investment. This will sustain the euro area expansion, the build-up of domestic price pressures and, thus, the robust convergence of inflation to our medium-term aim.
At the same time, in the light of the continued subdued inflation outlook, monetary policy has to remain highly accommodative for a prolonged period of time to support underlying inflation pressures and headline inflation developments over the medium term. We will, therefore, closely monitor inflation developments and the impact of the unfolding monetary policy measures on the economy. Our forward guidance will ensure that financial conditions adjust in accordance with changes to the inflation outlook. In any case, the Governing Council continues to stand ready to adjust all of its instruments, as appropriate, to ensure that inflation moves towards its aim in a sustained manner, in line with its commitment to symmetry.
Let me now explain our assessment in greater detail, starting with the economic analysis. Euro area real GDP increased by 0.3%, quarter on quarter, in the third quarter of 2019, following growth of 0.2% in the second quarter. This pattern of moderate growth reflects the ongoing weakness of international trade in an environment of continued global uncertainties, which has particularly affected the euro area manufacturing sector and has also dampened investment growth. At the same time, the services and construction sectors remain more resilient, despite some moderation in the latter half of 2019. Incoming economic data and survey information point to some stabilisation in euro area growth dynamics, with near-term growth expected to be similar to rates observed in previous quarters. Looking ahead, the euro area expansion will continue to be supported by favourable financing conditions, further employment gains in conjunction with rising wages, the mildly expansionary euro area fiscal stance and the ongoing – albeit somewhat slower – growth in global activity.
The risks surrounding the euro area growth outlook, related to geopolitical factors, rising protectionism and vulnerabilities in emerging markets, remain tilted to the downside, but have become less pronounced as some of the uncertainty surrounding international trade is receding.
Euro area annual HICP inflation increased to 1.3% in December 2019, from 1.0% in November, reflecting mainly higher energy price inflation. On the basis of current futures prices for oil, headline inflation is likely to hover around current levels in the coming months. While indicators of inflation expectations remain at low levels, recently they have either stabilised or ticked up slightly. Measures of underlying inflation have remained generally muted, although there are further indications of a moderate increase in line with previous expectations. While labour cost pressures have strengthened amid tighter labour markets, the weaker growth momentum is delaying their pass-through to inflation. Over the medium term, inflation is expected to increase, supported by our monetary policy measures, the ongoing economic expansion and solid wage growth.
Turning to the monetary analysis, broad money (M3) growth stood at 5.6% in November 2019, broadly unchanged since August. Sustained rates of broad money growth reflect ongoing bank credit creation for the private sector and low opportunity costs of holding M3 relative to other financial instruments. The narrow monetary aggregate M1 continues to be the main contributor to broad money growth on the components side.
The growth of loans to firms and households remained solid, benefiting from the ongoing support provided by our accommodative monetary policy stance, which is reflected in very low bank lending rates. While the annual growth rate of loans to households remained unchanged from October, at 3.5% in November, the annual growth rate of loans to non-financial corporations moderated to 3.4% in November, from 3.8% in October, likely reflecting some lagged reaction to the past weakening in the economy. These developments are also visible in the results of the euro area bank lending survey for the fourth quarter of 2019, which indicate weakening demand for loans to firms, while demand for loans to households for house purchase continued to increase. However, credit standards for both loans to firms and loans to households for house purchase remained broadly unchanged, pointing to still favourable credit supply conditions. Overall, our accommodative monetary policy stance will help to safeguard very favourable bank lending conditions and will continue to support access to financing across all economic sectors and in particular for small and medium-sized enterprises.
To sum up, a cross-check of the outcome of the economic analysis with the signals coming from the monetary analysis confirmed that an ample degree of monetary accommodation is still necessary for the continued robust convergence of inflation to levels that are below, but close to, 2% over the medium term.
In order to reap the full benefits from our monetary policy measures, other policy areas must contribute more decisively to raising the longer-term growth potential, supporting aggregate demand at the current juncture and reducing vulnerabilities. The implementation of structural policies in euro area countries needs to be substantially stepped up to boost euro area productivity and growth potential, reduce structural unemployment and increase resilience. The 2019 country-specific recommendations should serve as the relevant signpost.
Regarding fiscal policies, the euro area fiscal stance is expected to continue to provide some support to economic activity. In view of the weak economic outlook, the Governing Council welcomes the Eurogroup’s call in December for differentiated fiscal responses and its readiness to coordinate. Governments with fiscal space should be ready to act in an effective and timely manner. In countries where public debt is high, governments need to pursue prudent policies and meet structural balance targets, which will create the conditions for automatic stabilisers to operate freely. All countries should intensify their efforts to achieve a more growth-friendly composition of public finances.
Likewise, the transparent and consistent implementation of the European Union’s fiscal and economic governance framework over time and across countries remains essential to bolster the resilience of the euro area economy. Improving the functioning of Economic and Monetary Union remains a priority. The Governing Council welcomes the ongoing work and urges further specific and decisive steps to complete the banking union and the capital markets union.
We are now ready to take your questions.
Compliments of the European Central Bank

Today, the European Commission set out its ideas for shaping the Conference on the Future of Europe, which should be launched on Europe Day, 9 May 2020 and run for two years. The Communication adopted is the Commission’s contribution to the already lively debate around the Conference on the Future of Europe – a project announced by President Ursula von der Leyen in her Political Guidelines, to give Europeans a greater say on what the European Union does and how it works for them. The Conference will build on past experiences, such as citizens’ dialogues, while introducing a wide range of new elements to increase outreach and strengthen ways for people to shape future EU action. The Conference will allow for an open, inclusive, transparent and structured debate with citizens of diverse backgrounds and from all walks of life. The Commission is committed to follow up on the outcome.
The Commission proposes two parallel work strands for the debates. The first should focus on EU priorities and what the Union should seek to achieve: including on the fight against climate change and environmental challenges, an economy that works for people, social fairness and equality, Europe’s digital transformation, promoting our European values, strengthening the EU’s voice in the world, as well as shoring up the Union’s democratic foundations. The second strand should focus on addressing topics specifically related to democratic processes and institutional matters: notably the lead candidate system and transnational lists for elections to the European Parliament.
Ursula von der Leyen, President of the European Commission, commented: “People need to be at the very centre of all our policies. My wish is therefore that all Europeans will actively contribute to the Conference on the Future of Europe and play a leading role in setting the European Union’s priorities. It is only together that we can build our Union of tomorrow.”
Dubravka Šuica, Vice-President for Democracy and Demography, stated: “We must seize the momentum of the high turnout at the last European elections and the call for action which that brings. The Conference on the Future of Europe is a unique opportunity to reflect with citizens, listen to them, engage, answer and explain. We will strengthen trust and confidence between the EU institutions and the people we serve. This is our chance to show people that their voice counts in Europe.”
A new public forum for an open, inclusive and transparent debate
The Commission sees the Conference as a bottom-up forum accessible to people well beyond Europe’s capitals, from all corners of the Union. Other EU institutions, national Parliaments, social partners, regional and local authorities and civil society are invited to join. A multilingual online platform will ensure transparency of debate and support wider participation. The Commission is committed to taking the most effective actions, with the other EU institutions, to integrate citizens’ ideas and feedback into EU policy-making.
Background
All Members of the College will play their part in helping to make the Conference a success, with Vice-President Šuica leading the Commission’s work on the Conference, supported by Vice-President Jourová on the institutional strand, as well as Vice-President Šefčovič on the foresight and inter-institutional side.  
The European Parliament and the Council are also working on their contributions to the Conference on the Future of Europe. The European Parliament resolution of 15 January 2020 called for an open and transparent process which takes an inclusive, participatory and well-balanced approach towards citizens and stakeholders. Meanwhile, the European Council conclusions of 12 December 2019 called on the Croatian Presidency to begin work on the Council’s position. The Croatian Presidency has itself listed the Conference among its Presidency Priorities.
After this, it is of crucial importance that the three institutions work together towards a Joint Declaration to define the concept, structure, scope and timing of the Conference on the Future of Europe, as well as setting down its jointly agreed principles and objectives. This Declaration will later be open to other signatories including institutions, organisations and stakeholders. National and regional Parliaments and actors have an important role to play in the Conference and should be encouraged to hold Conference-related events The Commission underlines in its contribution today that it is commited to follow up on the outcomes and recommendations of the different debates.
The Commission proposes to officially launch the Conference on Europe Day, 9 May 2020 – 70 years after the signing of the Schuman Declaration and 75 years after the end of the Second World War.
Compliments of the European Commission

Today in Davos, the President of the European Commission, Ursula von der Leyen, met with U.S. President Donald Trump. This friendly exchange of views between allies at the World Economic Forum was a first opportunity to meet in person and to compare notes and positions on a number of topical issues, notably on trade, technology and energy. This was a first get-to-know-each-other meeting. Both sides agreed to meet soon in Washington to move the common transatlantic agenda forward.
Ursula von der Leyen, President of the European Commission: “It was good to meet with President Trump. Today was a good opportunity to connect personally. As a European and a committed transatlantist, it was important to me to emphasize the unbreakable bonds between our societies and economies. This common foundation builds on decades of friendship, cooperation in culture, science, business and youth exchange. I am looking forward to working with President Trump on the opportunities and challenges ahead of us. I am convinced that we can engage in a positive U.S.-EU agenda in trade, as well as on technology, energy and much more besides.”
Compliments of the European Commission

Digital taxation
Finance ministers had an exchange of views on tax challenges arising from digitalisation. They took stock of the progress achieved in the context of the OECD, both on the reallocation of profits of digitalized businesses (“Pillar 1”) and on the general reform of international corporate taxation (“Pillar 2).
The OECD has been working intensively in the past months with a view to agreeing on the architecture of a global solution at its meeting on 29-30 January 2020.
The debate confirmed that an international solution on digital taxation was the best way forward, as it would prevent fragmentation and unilateral measures. Ministers acknowledged that the OECD was working against a tight deadline to reach a global consensus by the end of 2020, and many highlighted the importance of making good use of the current political momentum.
The presidency concluded that it would continue attending international meetings on this issue. It will organise technical discussions in the Council in order to prepare, as far as possible, negotiations taking place at the OECD and address member states’ concerns.
European Green Deal
Ministers discussed the financial and economic aspects of the European Green Deal. The Commission presented its communication on the Sustainable Europe Investment Plan published on 14 January.
The plan aims to mobilise at least EUR 1 trillion of investments over the coming decade. The Commission proposes to achieve this by drawing on EU’s budget, through a “Just Transition Fund”, as well as bringing in private funding by leveraging guarantees under the InvestEU programme. The plan also foresees a greater role for the EIB in financing sustainable projects.
During the debate, ministers stressed the importance and relevance of the European Green Deal and their readiness to examine, as a matter of priority, the concrete actions to be put forward by the Commission under the deal in the months to come.
European Semester
The Council initiated the annual ‘European Semester’ process for the monitoring of the member states’ economic, employment and fiscal policies.
The Commission presented its Autumn package published on 17 December 2019, including:
its report on the annual sustainable growth strategy, highlighting the main challenges for 2020,
the ‘alert mechanism report’ for 2020 and
the draft Council recommendation on the economic policies of the euro area.
The Council is scheduled to approve the recommendation and adopt conclusions on the two reports at the Ecofin meeting of 18 February 2020. The recommendation will then be endorsed by the European Council at its March meeting.
The 2020 European Semester will conclude in July with the adoption of country-specific recommendations.
Compliments of the European Commission