COUNCIL OF THE EUROPEAN UNION news

 

Press material Tuesday 24 May 2022   ● Council of the EU   24/05/2022 13:34 | Press release | Ukraine: Council adopts temporary trade liberalisation with Ukraine   The Council adopted today a regulation allowing for temporary trade liberalisation and other trade concessions with regard to certain Ukrainian products. This means that for one year import duties on all Ukrainian exports to the European Union will not be due. Thanks to these measures the EU will be able to significantly support Ukraine's economy. Russia's unprovoked and unjustified war of aggression against Ukraine has had a devastating impact on the country's production capacity, transport infrastructure and access to the Black sea, as well as its wider ability to trade with the rest of the world. The consequences cannot be underestimated both internally, and internationally, in terms of impact on food security. Today’s decision will apply for a period of one year, and will suspend in particular: –all those tariffs under Title IV of the Association Agreement between the EU and Ukraine establishing a deep and comprehensive free trade area (DCFTA) that had not yet been liberalised. The suspension covers notably: industrial products subject to duty phase out by the end of 2022, fruits and vegetables subject to the entry-price system, and agricultural products and processed agricultural products subject to tariff-rate quotas, – the collection of anti-dumping duties on imports originating in Ukraine, and – the application of the common rules for imports with respect of imports originating in Ukraine. Today's decision is conditional upon respect for the principles set out in Article 2 of the DCFTA.

Today, the Council adopted its position to improve the European long-term investment funds (ELTIFs) regulation to facilitate long-term investment in … Press material Tuesday 24 May 2022   ● Council of the EU   24/05/2022 13:27 | Press release | European long-term investment funds: Council adopts its position   Today, the Council adopted its position to improve the European long-term investment funds (ELTIFs) regulation to facilitate long-term investment in the real economy. The updated regulation will make these investment funds more attractive to asset managers and investors, and develop the number of such investment funds in Europe. ELTIFs are important funds to help finance the green and digital transitions, and they can help finance small and medium-sized enterprises (SMEs). They have an important role to play in the deepening of the Capital Markets Union (CMU). Since 2015, the ELTIF regulatory framework has set up these new type of funds, by detailing fund rules on eligible assets and investments, diversification and portfolio composition, leverage limits and marketing. ELTIFs are the only type of funds dedicated to long-term investments which can be distributed on a cross-border basis to both professional and retail investors. However, since its adoption, only a limited number of ELTIFs have been launched, and only in four member states (France, Italy, Luxembourg and Spain), due to significant constraints in the distribution process and stringent rules on portfolio composition. The review is expected to unlock untapped potential to mobilise capital for the financing of long-term projects. It will: Make the creation of such funds more attractive for asset managers, by updating the scope of eligible assets and investments, the portfolio composition and diversification requirements, the borrowing of cash and other fund rules, the requirements pertaining to the authorisation, investment policies and operating conditions of ELTIFs. Make it easier for retail investors to invest in ELTIFs, in particular by removing the minimum €10,000 investment threshold, while ensuring strong investor protection. In its position, the Council underlined three priorities: Channel more financing to SMEs and long-term projects, including by removing existing constraints on the portfolio composition of ELTIFs, especially for those distributed solely to professional investors; Enhance the role of retail investors by making ELTIFs more attractive to them, and by lifting the barriers to entry which did not take into account the profile and objectives of each investor; Maintain high investor protection standards and provide retail investors with all the relevant information so that they can take informed decisions. Next steps Now that the Council has adopted its position, it is ready to enter negotiations with the European Parliament in order to agree on a final version of the text, once the latter has set its position. Background The Commission presented its Capital Markets Union package, including the review of the ELTIF regulation, on 25 November 2021. Council mandate for negotiations with the European Parliament Commission proposal Capital Markets Union (background information)