COUNCIL OF THE EUROPEAN UNION latest

 

Library blog Wednesday 16 March 2022

● General Secretariat of the Council   Think Tank reports on the invasion of Ukraine   Just over three weeks since the invasion of Ukraine, think tanks analyse the unprecedented shift in global geopolitics and the positions of various countries; the EU response, including possible and proposed changes in foreign, security or defence policies; the growing humanitarian crisis and activation of the EU’s temporary protection mechanism in the face of the large-scale displacement of civilians; and they assess the implications of the EU’s dependence on Russian gas, the economic and financial sanctions against Russia, and the economic impact of the war, including in relation to agricultural production.

Meetings Tuesday 15 March 2022

● Council of the EU 15/03/2022 19:02 | MEETING | Main results - Informal video conference of health ministers, 15 March 2022 Health ministers met virtually to discuss a coordinated response of the EU to the health consequences of the war in Ukraine. Informal video conference of health ministers, 15 March 2022 Main results Health ministers met for an informal video conference to agree on a coordinated and inclusive EU response to the health consequences of the war in Ukraine. The unprecedented reception of refugees and displaced persons, the medical evacuation and the care of war-wounded persons and people suffering from chronic diseases will have a significant impact on the member states, in particular on their health systems and, in the first instance, on the countries bordering Ukraine. Health ministers recalled the right of access to healthcare guaranteed by the Temporary Protection Directive. Full implementation of these rights is all the more important for these people given the effects of war on their mental and physical health. Some of them have been injured or suffer from chronic or severe diseases. Ministers referred to actions in the different countries by public authorities, health institutions, health professionals and organised civil society that will allow for emergency or longer-term responses. It is in this context that health ministers have considered how to ensure the medical care of these people and to prepare, from today, for responses to this unprecedented health and human challenge. Ministers welcomed the establishment of the EU solidarity mechanism to facilitate medical evacuations of persons in need of specialised hospital treatment and care. Ministers also agreed in particular on the need to give priority to sick children in the medical evacuation of refugees by ensuring that they remain surrounded by their families, to update in real time the reception capacities for acute care of refugees in order to ensure continuity of care, to consider the means of transport of persons requiring medical evacuation in order to meet needs based on the scale of the situation and to consider the deployment of temporary hospitals in Poland to facilitate the evacuation of patients according to their pathologies. Europe stands by the millions of Ukrainian refugees. The European Union has guaranteed them a right of access to healthcare. We need to coordinate our actions and set up operations to treat, in particular, chronic and seriously ill people, who can count on our solidarity. But EU member states will also support each other to ensure that health systems can cope with these challenges.Olivier Véran, French Minister for Solidarity and Health At the heart of the discussion was the medical treatment of refugees suffering from chronic and acute illnesses in border states or member states hosting refugees and people displaced by war. Ministers also discussed resilience of the health systems of all EU member states, already significantly hit by the Covid-19 crisis and now facing a new - and potentially longer lasting - health crisis. Ukraine: Council unanimously introduces temporary protection for persons fleeing the war (press release, 4 March 2022) EU response to Russia's invasion of Ukraine (background information) Meeting information Meeting n°VC-EPSCO-22-03-15 Video conference 15 March 2022 Outcome documents List of participants

The Council decided today to impose restrictive measures on an additional 15 individuals and 9 entities in respect of the ongoing unjustified and unp… Press material Tuesday 15 March 2022   ● Council of the EU   15/03/2022 17:55 | Press release | Fourth package of sanctions in view of Russia’s military aggression against Ukraine: 15 additional individuals and 9 entities subject to EU restrictive measures   The Council decided today to impose restrictive measures on an additional 15 individuals and 9 entities in respect of the ongoing unjustified and unprovoked Russian military aggression against Ukraine, and of actions undermining or threatening the territorial integrity, sovereignty and independence of Ukraine. "We are adding to our sanctions list even more oligarchs and regime-affiliated elites, their families and prominent businesspeople, which are involved in economic sectors providing a substantial source of revenue to the regime. These sanctions also target those who have a leading role in disinformation and propaganda that accompany President Putin’s war against Ukrainian people. Our message is clear: Those who enable the invasion of Ukraine pay a price for their actions." Josep Borrell, High Representative for Foreign Affairs and Security Policy The listed individuals include key oligarchs Roman Abramovich and German Khan as well as other prominent businesspeople involved in key economic sectors, such as iron and steel, energy, banking, media, military and dual use products and services. The list also includes lobbyists and propagandists, such as Konstantin Ernst (CEO of Channel One Russia) who are pushing the Kremlin’s narrative on the situation in Ukraine. Sanctioned entities include companies in the aviation, military and dual use, shipbuilding and machine building sectors. This decision is part of a fourth package of restrictive measures imposed by the EU against Russia in view of its military aggression against Ukraine. Altogether, EU restrictive measures now apply to a total of 877 individuals and 62 entities. Those designated are subject to an asset freeze and EU citizens and companies are forbidden from making funds available to them. Natural persons are additionally subject to a travel ban, which prevents them from entering or transiting through EU territories. The Council recently decided to prolong the sanctions targeting those responsible for undermining or threatening the territorial integrity, sovereignty and independence of Ukraine for a further six months until 15 September 2022. Russia’s unprovoked and unjustified military aggression against Ukraine grossly violates international law and the principles of the UN Charter and undermines European and global security and stability. It is inflicting unspeakable suffering on the Ukrainian population. Russia, and its accomplice Belarus, bear full responsibility for this war of aggression and those responsible will be held to account for their crimes, including for indiscriminately targeting civilians and civilian objects. The European Union demands that Russia ceases its military action and withdraws all forces and military equipment from the entire territory of Ukraine immediately and unconditionally, and fully respects Ukraine’s territorial integrity, sovereignty and independence within its internationally recognised borders. Official Journal of the European Union, L 087I, 15 March 2022 Russia’s military aggression against Ukraine: fourth EU package of sectoral and individual measures (press release, 15 March 2022) EU restrictive measures in response to the crisis in Ukraine (background information) Statement of the heads of state or government, meeting in Versailles, on the Russian military aggression against Ukraine, 10 March 2022 European Council conclusions, 24 February 2022 Ukraine: Declaration by the High Representative on behalf of the European Union on the invasion of Ukraine by armed forces of the Russian Federation, 24 February 2022 Meetings Tuesday 15 March 2022   ● Council of the EU   15/03/2022 17:22 | MEETING | Main results - Economic and Financial Affairs Council, 15 March 2022   Economy and finance ministers met in Brussels to discuss the economic consequences of sanctions on Russia, the carbon border adjustment mechanism, and a global minimum level of corporate taxation. Economic governance review and fiscal guidance, and Council priorities for the EU budget 2023 were also on the agenda. Council of the EU Economic and Financial Affairs Council, 15 March 2022 Main results Sanctions on Russia Over breakfast, economy and finance ministers discussed the economic and financial consequences of the sanctions imposed on Russia after its unprovoked and unjustified military invasion in Ukraine. They discussed the current state of play of implementation, as well as the consequences of those sanctions which fall under their sphere of competence. The sanctions which we have adopted are having a considerable impact on the Russian economy. They have disorganised the Russian financial system and they have paralysed the Russian Central Bank. The sanctions make sure that Putin’s regime is now starting to pay the price for its military aggression. We stand ready to adopt complementary sanctions whenever necessary. Concerning the protection of our economies, we want close coordination at a European level, as we did during the Covid crisis.Bruno Le Maire, French Minister for Economic Affairs, Finance and Recovery EU economy and finance ministers are following developments closely. On 25 February, they issued a statement together with the European Commission and the European Central Bank outlining their unity, their commitment to consider all possible sanctions, as well as their will to strengthen the economic independence of Europe. On 2 March, EU economy and finance ministers held an informal video conference dedicated entirely to the discussion of sanctions. Member states agreed to take further measures to avoid any circumvention of the sanctions. Since then, the Council adopted additional packages of sanctions, including on crypto assets. Timeline - EU response to Russia's invasion of Ukraine (background information) Informal video conference of economy and finance ministers, 2 March 2022 Ukraine: press statement from the EU Ministers for Finance, European Commission and the European Central Bank (press release, 25 February 2022) EU restrictive measures in response to the crisis in Ukraine (background information) Carbon border adjustment mechanism Today, the Council reached agreement (general approach) on the Carbon Border Adjustment Mechanism (CBAM) regulation, which is one of the key elements of the European Union’s ‘Fit for 55’ package. The main objective of this environmental measure is to avoid carbon leakage. It will also encourage partner countries to establish carbon pricing policies to fight climate change. For that purpose, CBAM targets imports of carbon-intensive products, in full compliance with international trade rules, to prevent offsetting the EU’s greenhouse gas emissions reduction efforts through imports of products manufactured in non-EU countries, where climate change policies are less ambitious than in the European Union. It will also help prevent the relocation of the production or the import of carbon-intensive products. The agreement in the Council on the Carbon Border Adjustment Mechanism is a victory for European climate policy. It will give us a tool to speed up the decarbonisation of our industry, while protecting it from companies from countries with less ambitious climate goals. It will also incentivize other countries to become more sustainable and emit less. Finally, this mechanism responds to our European ambitious strategy that is to accelerate Europe’s energy independence.Bruno Le Maire, French Minister for Economic Affairs, Finance and Recovery The Council still has to make sufficient progress on a number of issues which are closely related to CBAM, but are not part of the draft legal text of the CBAM regulation. This concerns in particular the phase-out of the free allowances allocated to industry sectors covered by the CBAM, established by the EU ETS directive, and appropriate solutions on the issue of limiting potential carbon leakage from exports, so that economic efficiency, environmental integrity and WTO compatibility of the CBAM are ensured. Once sufficient progress will have been achieved at the Council, the Council will start negotiations with the European Parliament, after the latter has agreed its position. Council agrees on the Carbon Border Adjustment Mechanism (CBAM) (press release, 15 March 2022) Recording of the discussion at Ecofin Council on 15 March 2022 Commission proposal EU plan for a green transition (background information) Corporate taxation: Fair and effective taxation for multinational groups Member states have made progress towards an agreement on the directive, presented in December 2021 by the European Commission, to implement the minimum tax component of the OECD's international tax reform at EU level. The ‘Pillar 2’ directive should, once effectively implemented, limit the race to the bottom in corporate tax rates. Large multinationals, with a combined annual turnover of at least EUR 750 million, will be taxed at a minimum rate of 15%. The new rules will reduce the risk of base erosion and profit shifting, and ensure that the largest multinational groups pay the agreed global minimum rate of corporate tax. We have made major progress on the minimum taxation directive. An agreement is within reach to end the race to the bottom. Multinational companies will have to pay a minimum of 15% of taxes worldwide.Bruno Le Maire, French Minister for Economic Affairs, Finance and Recovery Recording of the discussion at Ecofin Council on 15 March 2022 Recording of the discussion at Ecofin Council on 18 January 2022 Directive on ensuring a global minimum level of taxation for multinational groups in the Union – Policy debate Proposal for a COUNCIL DIRECTIVE on ensuring a global minimum level of taxation for multinational groups in the Union Fair Taxation: Commission proposes swift transposition of the international agreement on minimum taxation of multinationals (European Commission, press release, 22 December 2021) Statement on a Two-Pillar Solution to Address the Tax Challenges Arising from the Digitalisation of the Economy – 8 October 2021 (OECD) Taxation (background information) Economic governance review & fiscal guidance The Commission presented its fiscal guidance for 2023 which should help member states in the preparation of their Stability and Convergence Programmes due in April. In response to this, the Eurogroup issued a statement yesterday. The Commission also provided an update of the state of play on the economic governance review following public consultation and discussions in the relevant committee with member states. Eurogroup statement on the fiscal guidance for 2023 (press release, 14 March 2022) Communication from the Commission to the Council: Fiscal policy guidance for 2023 Commission presents fiscal policy guidance for 2023 (European Commission, press release, 2 March 2022) Debriefing on the informal meeting of heads of state or government, Versailles, 10-11 March 2022 The presidency briefed ministers on the main outcomes of the informal meeting of heads of state or government held in Versailles on 10-11 March 2022. Main results Council priorities for the EU budget 2023 The Council set its priorities for the 2023 EU budget. The approved guidelines will serve as a reference in the coming budget cycle. Council sets its priorities for the 2023 EU budget (press release, 15 March 2022) Fiscal policy guidance for 2023: Communication from the Commission The EU’s annual budget (background information) EU budget discharge The Council adopted a recommendation on the discharge to be given to the Commission in respect of the implementation of the EU budget for 2020. Council recommendation on the discharge to be given to the Commission in respect of the implementation of the general budget of the European Union for the financial year 2020 Report on the performance of the EU budget – Status at the end of 2020 (Official Journal C 458 of 12 November 2021, p. 21.) Annual reports on the implementation of the EU budget and on the activities funded by the 8th, 9th, 10th and 11th European Development Funds for the 2020 financial year (Official Journal C 430 of 25 October 2021, p. 7) Export credits The Council has, for the first time, adopted conclusions on export credits that make three major advances. Firstly, they commit member states to adapt their export credit policies to the objectives of fighting against climate change. This progress directly echoes the dynamic initiated in April 2021 by France with the Export Finance for Future coalition, whose commitments are now taken up by all EU member states. Secondly, these conclusions strengthen the EU's assertiveness on the international scene, by pushing for the modernisation of the export credit rules at the OECD. Thirdly, in the wake of the work undertaken by the European Commission on the Trade Policy Review, these conclusions lay the foundations for a new EU export credit strategy, for which a phase of in-depth diagnosis of needs will begin. The Council adopted conclusions on export credits (press release, 15 March 2022) VAT e-commerce package The Council adopted conclusions on the implementation of the e-commerce package. The VAT e-commerce package entered into force on 1 July 2021. It provided for a number of changes in the VAT legislation to overcome the barriers to cross-border online sales and to address challenges arising from the VAT regimes for distance sales of goods and business-to-consumer supplies of services, and for the importation of low value consignments. Council adopted conclusions on the implementation of the VAT e-commerce package (press release, 15 March 2022) The Council also adopted without discussion the items that figured in the list of non-legislative A items. Meeting information Meeting n°3855 Brussels 15 March 2022 09:30 Preparatory documents Provisional agenda Provisional list of A items Provisional list of A items, addition 1 List of A items, non-legislative activities Background brief Outcome documents List of participants