COUNCIL OF THE EUROPEAN UNION update

 

Press material Thursday 28 April 2022

● Council of the EU   28/04/2022 15:38 | Press release | Daisy chains: provisional agreement on a revised bank resolution framework   To help ensure that banks remain resilient and capable of withstanding future shocks, the Council presidency and the European Parliament reached a provisional agreement today on a draft regulation which will strengthen the prudential regulatory framework for credit institutions operating in the Union. The ‘Daisy Chain’ proposal introduces targeted adjustments that will help improve the resolvability of bank institutions. The revised Union bank resolution framework aims to better ensure that the loss absorption and recapitalisation of banks occurs through private means when those banks become financially unviable and are placed in resolution. The Daisy Chain proposal amends the Union bank resolution framework by: incorporating a dedicated treatment for the indirect subscription of instruments eligible for internal minimum requirement for own funds and eligible liabilities (MREL) further aligning the treatment of global systemically important institution (G-SII) groups with a Multiple Point of Entry (MPE) resolution strategy with the treatment outlined in the Financial Stability Board's (FSB) international Total Loss-absorbing Capacity Term Sheet (the ‘TLAC standard’) clarifying the eligibility of instruments in the context of the internal TLAC. Today, the co-legislators succeeded in bridging their divergences on the text including on the two main political issues: The first point concerns the deduction regime for own funds and eligible liabilities meeting the requirements for loss-absorption in resolution (MREL) that are channelled through an intermediate entity in the context of their upstreaming within complex resolution groups, nicknamed ‘Daisy Chains”. Under the provisional agreement, a revised deduction regime is introduced, so as to avoid in particular double-counting of MREL elements at the level of intermediate entities, thus ensuring that EU banking groups always keep a robust loss-absorption capacity in line with their disclosed MREL. In addition, a carefully framed review clause is added, to take into account the impact on different types of banking group structures. Such potential improvements will be assessed by the Commission services, with a view to possible inclusion within the future Bank Recovery and Resolution Directive (BRRD) review proposal, expected from the Commission in the course of 2022. The second point concerns the treatment of groups with a multiple-point-of-entry resolution strategy (MPE groups), as opposed to a single-point-of-entry (SPE) resolution strategy, especially as regards aligning such treatment on the regime foreseen under TLAC international standards and taking into account third-country entities within such groups. The issue arises especially in cases where the resolution regime of a third country is not equivalent to the regime in force in the Union. Under the provisional agreement, a well-framed transitional regime, with additional flexibility until end-2024, is introduced for MPE groups, subject to an assessment by EU resolution authorities. The provisional agreement reached today is subject to approval by the Council and the European Parliament before going through the formal adoption procedure. Background On 28 October 2021 the Commission presented the ‘Daisy Chain’ proposal. It is part of the single rulebook of the Banking Union and amends the rules in the Capital Requirements Regulation and the Bank Recovery and Resolution Directive. Regulation (EU) No 575/2013 of the European Parliament and of the Council (the Capital Requirements Regulation or CRR) establishes together with Directive 2013/36/EU of the European Parliament and of the Council (the Capital Requirements Directive or CRD) the prudential regulatory framework for credit institutions operating in the Union. The CRR and the CRD were adopted in the aftermath of the 2008-2009 financial crisis to enhance the resilience of institutions operating in the EU financial sector, largely based on global standards agreed with the EU’s international partners, in particular within the Basel Committee on Banking Supervision (BCBS). Resolution related issues have been identified since the revised TLAC/MREL framework became applicable in 2019. The Daisy Chain proposal aims to address those issues. The Council adopted its negotiating mandate on 21 December 2021. The European Parliament adopted its negotiating position in mid-February 2022. Trilogues between the co-legislators started on 31 March 2022 and ended in the provisional agreement reached today. Daisy Chain: member states ready to negotiate with European Parliament (press release, 21 December 2021) Commission proposal Single rulebook of the Banking Union (background information)

● Council of the EU   28/04/2022 12:53 | Press release | The Council amends the TACs and quotas Regulation and sets a Union quota for cod in Svalbard waters for 2022   The Council approved on Thursday 28 April, by written procedure, a second amendment to the Regulation on 2022 TACs and quotas regarding cod in the waters of Spitzbergen (Svalbard) and in the international waters of subarea 1 and division 2b of the International Council for the Exploration of the Sea (ICES). Following the completion of the formal discussions undertaken by the Commission with Norway to reach a political understanding in relation to the fisheries in ICES subareas 1 and 2, the Council set a Union quota for cod in Svalbard waters and in the international waters of ICES subarea 1 and division 2b for 2022, at the level of 19 636 tonnes, replacing the provisional Union quota of 4 500 tonnes, which expires on 30 April. The final Union quota for cod in these waters for 2022 has been allocated to member states as follows: Germany – 4 028 tonnes Spain – 9 688 tonnes France – 1 775 tonnes Poland – 1 829 tonnes Portugal - 2 019 tonnes Other member states - 297 tonnes This Regulation shall enter into force on the day of its publication in the Official Journal of the European Union. This Regulation shall be binding in its entirety and directly applicable in all member states. The representatives of the governments of the member states today appointed nine judges of the General Court.The following judges have been reappoint… r Press material Wednesday 27 April 2022   ● Council of the EU   27/04/2022 19:53 | Press release | EU Court of Justice: nine judges of the General Court appointed   The representatives of the governments of the member states today appointed nine judges of the General Court. The following judges have been reappointed for a further term of office: Mr Geert De Baere and Mr Paul Nihoul (Belgium) Mr Sten Frimodt Nielsen and Mr Jesper Svenningsen (Denmark) Mr Krisztián Kecsmár (Hungary) Mr Marc van der Woude (Netherlands) Ms Maria José Costeira and Mr Ricardo da Silva Passos (Portugal) In addition, Mr Goulielmos Valasidis (Greece) has been appointed as a judge of the General Court. The nine judges have been appointed for the period from 1 September 2022 to 31 August 2028. Background The Court of Justice of the European Union consists of two courts: the Court of Justice and the General Court. The judges and advocates-general are appointed by common accord of the governments of the member states after consultation of a panel responsible for giving an opinion on prospective candidates’ suitability to perform the duties concerned. They are chosen from among individuals whose independence is beyond doubt. For appointment to the Court of Justice, candidates must possess the qualifications required for appointment, in their respective countries, to the highest judicial offices, or be jurisconsults of recognised competence. For appointment to the General Court, they must possess the ability required for appointment to high judicial office.

● Συμβούλιο της ΕΕ   27/04/2022 19:53 | Δελτίο τύπου | Δικαστήριο της ΕΕ: διορισμός εννέα δικαστών του Γενικού Δικαστηρίου   Οι αντιπρόσωποι των κυβερνήσεων των κρατών μελών διόρισαν σήμερα εννέα δικαστές του Γενικού Δικαστηρίου. Για την ανανέωση της θητείας τους διορίστηκαν οι ακόλουθοι δικαστές: κ. Geert De Baere και κ. Paul Nihoul (Βέλγιο) κ. Sten Frimodt Nielsen και κ. Jesper Svenningsen (Δανία) κ. Krisztián Kecsmár (Ουγγαρία) κ. Marc van der Woude (Κάτω Χώρες) κα Maria José Costeira και κ. Ricardo da Silva Passos (Πορτογαλία) Επιπλέον, ο κ. Γουλιέλμος Βαλασίδης (Ελλάδα) διορίστηκε δικαστής στο Γενικό Δικαστήριο. Οι εννέα δικαστές διορίστηκαν στο Γενικό Δικαστήριο για την περίοδο από την 1η Σεπτεμβρίου 2022 έως τις 31 Αυγούστου 2028. Γενικές πληροφορίες Το Δικαστήριο της Ευρωπαϊκής Ένωσης αποτελείται από δύο δικαιοδοτικά όργανα: το Δικαστήριο και το Γενικό Δικαστήριο. Οι δικαστές και οι γενικοί εισαγγελείς διορίζονται με κοινή συμφωνία από τις κυβερνήσεις των κρατών μελών κατόπιν διαβούλευσης με επιτροπή επιφορτισμένη να γνωμοδοτεί σχετικά με την επάρκεια των υποψηφίων για την άσκηση των συγκεκριμένων καθηκόντων. Επιλέγονται μεταξύ προσωπικοτήτων που παρέχουν πλήρη εχέγγυα ανεξαρτησίας. Για να διοριστούν στο Δικαστήριο, οι υποψήφιοι πρέπει να συγκεντρώνουν στις χώρες τους τις αναγκαίες προϋποθέσεις για τον διορισμό στους ανώτατους βαθμούς της δικαστικής ιεραρχίας ή να είναι νομικοί αναγνωρισμένου κύρους. Για να διοριστούν στο Γενικό Δικαστήριο, πρέπει να έχουν την απαιτούμενη ικανότητα για την άσκηση υψηλών δικαστικών καθηκόντων. I would like to send you — and all Ukrainians — a warm and fraternal greeting from the European Union and our 450 million citizens. For over two mont… Press material Wednesday 27 April 2022   ● European Council   27/04/2022 17:39 | Statements and remarks | President Michel's message to the Ukrainian Congress of local and regional authorities   I would like to send you — and all Ukrainians — a warm and fraternal greeting from the European Union and our 450 million citizens. For over two months, we have watched with horror the martyrdom inflicted on you by Russia. Last week I was in Kyiv. I saw with my own eyes the atrocities and devastation in Borodyanka. I have no words to describe the outrage and compassion I felt. These are war crimes. They must be punished, and they will be punished. I also witnessed the extraordinary courage and resilience of the Ukrainian people. The courage of your army and your leaders, your fighting spirit, your determination to defend your homeland, and the future of your children. Your brave resistance has inspired Europe and the free world. You are fighting for your freedom, but you are also defending our freedom and our common European values. That is why the European Union has rallied behind you from the very beginning. For the first time in our history, we are sending weapons to support your armed forces - EUR 1.5 billion in military equipment. We are also welcoming millions of your citizens who have had to flee their country. Putin will not win this war. You will win it. We must already start acting to rebuild and to support Ukraine’s long-term economic development. It is not about building back the Ukraine of 23 February … before Russia’s war. Rather, the goal must be to combine investments and reforms to rebuild the Ukraine of the future. That is why I fully embrace President Zelenskyy’s ambitious vision for Ukraine: modern, prosperous, forward-looking, and part of our European family. The European Union will be at your side to help rebuild your country and to forge the European future of Ukraine. That is precisely why the 27 EU leaders have decided to create a Solidarity Trust Fund for Ukraine. The European Commission is already working on it. I hope the donors' conference on 5 May will provide concrete resources. We are also working closely with international organisations — such as the IMF and World Bank — to mobilise more financial support. Of particular interest to all of you here today: President Zelenskyy shared with me his concept for twinning EU cities and regions with Ukrainian cities and regions in need of reconstruction. I believe this is a good idea to help revive cities destroyed and traumatised by war. I fully support it. All of you present today, you are the grassroots leaders across Ukraine. You know best what your citizens need in your towns and regions. You will be the builders and organisers on the ground, the critical local link to rebuilding your new Ukraine. And local and regional leaders in the EU — like yourselves — are best placed to understand your needs and to offer practical, concrete, and operational expertise. These twinnings will also engage Ukrainian citizens with EU citizens, building person-to-person links that will bring our peoples closer together. I have also asked the President of the European Committee of the Regions to support this project. Your role as local and regional leaders will be pivotal in building the future of Ukraine. We stand shoulder-to-shoulder with you. We both want the same things — peace, prosperity, and a confident future for our children. Slava Ukraïni! Long live Europe!