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08/11/2022 17:10 | Article ECOFIN: Ministers discuss financial assistance for Ukraine and strengthening the resilience of the banking sector Today, at a meeting of the ECOFIN Council in Brussels chaired by Zbyněk Stanjura, the finance ministers agreed on the need for a rapid continuation of macro-financial assistance to Ukraine in the amount of EUR 18 billion for 2023. The ministers also agreed on a compromise proposal implementing the Basel III international banking standards to increase the resilience of the EU banking sector. They also discussed the abolition of mandatory minimum road tax rates and the impact of the US Inflation Reduction Act legislation on European companies.

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8 November 202217:10

ECOFIN: Ministers discuss financial assistance for Ukraine and strengthening the resilience of the banking sector


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Today, at a meeting of the ECOFIN Council in Brussels chaired by Zbyněk Stanjura, the finance ministers agreed on the need for a rapid continuation of macro-financial assistance to Ukraine in the amount of EUR 18 billion for 2023. The ministers also agreed on a compromise proposal implementing the Basel III international banking standards to increase the resilience of the EU banking sector. They also discussed the abolition of mandatory minimum road tax rates and the impact of the US Inflation Reduction Act legislation on European companies.


The finance ministers discussed the economic and financial aspects of the Russian aggression against Ukraine and the need to ensure the continuation of macro-financial assistance to Ukraine. "My personal visit to Kiev last week was a really powerful experience for me. You arrive in a warring country and you receive a message warning of the risk of bombing in the area you are in. I saw for myself the difference between judging the state of a warring country from the outside and direct personal experience," said Finance Minister Zbyněk Stanjura.

In the spring, EU leaders decided to provide Ukraine with €9 billion in 2022 to run the state and ensure the functioning of critical infrastructure through macro-financial assistance. A total of €6 billion of this package has so far been disbursed to Ukraine, while the remaining €3 billion will be part of a new €18 billion package for 2023, which the Commission is expected to publish on 9 November.

"Today I have urged my colleagues in the Commission to speed up the preparation of the necessary legislation so that the new aid package can be approved at the December Ecofin under the Czech Presidency. The first € 3 billion to provide basic public services could reach Ukraine in early January," minister Stanjura added.

The ministers also discussed the implementation of the Basel III standard, the international rules approved by the Basel Committee on Banking Supervision, into European legislation. The Commission's so-called 2021 banking package aims, in particular, to revise existing capital requirements and thus make banks more resilient in the event of future economic shocks.

"We are confident that we have found a good compromise proposal that implements international standards while reflecting the specificities of the EU banking sectors. The key for us was to support the preparedness of European banks for possible future crises by increasing their capital requirements while avoiding disproportionate impacts on the EU banking sector," said minister Stanjura.

Also on the agenda was a debate on the revision of the directive on the charging of heavy goods vehicles for the use of certain roads (Eurovignette). The amendment to the directive would abolish the obligation to apply the European minimum road tax rate to trucks over 12 tonnes. "I see the modification of the Directive as another step towards greater tax liberalisation. It will allow EU countries to set a zero road tax rate, but it does not prevent anyone from maintaining the taxation of trucks. I am convinced that in the Czech Republic, the abolition of the remainder of road tax would benefit both small and medium-sized enterprises and the state, which is forced to administer this budget-poor tax in a costly manner," minister Stanjura concluded.

Meetings Tuesday 8 November 2022

● Council of the EU   08/11/2022 15:48 | MEETING | Main results - Economic and Financial Affairs Council, 8 November 2022   The Council agreed its position on the two remaining legislative acts for the implementation of the Basel III agreement. Ministers for finance and economy also agreed on a revised code of conduct for business taxation and gave political guidance for creating a structural solution for regular financial assistance for Ukraine in 2023.

Documents destinés à la presse mardi 8 novembre 2022

● Conseil européen   08/11/2022 15:36 | Discours | Discours du président Charles Michel à la conférence des Nations unies sur les changements climatiques (COP27) en Égypte   Excellences, Mesdames et Messieurs, Nous avons un revolver climatique sur notre tempe. Nous sommes en sursis et la guerre de la Russie contre l'Ukraine a rendu le défi global plus complexe encore. Et je suis heureux que dans quelques instants, nous aurons l'occasion d'écouter le message virtuel adressé par le président Zelenskyy. Le Kremlin a choisi de faire de l'énergie une arme de déstabilisation massive. Il pointe cette arme directement sur l'Europe et sur les marchés mondiaux de l'énergie. De la même manière, le Kremlin a choisi d'instrumentaliser les produits alimentaires et les fertilisants. Et cette arme-là, comble du cynisme, est pointée sur les plus vulnérables et les pays en développement. La guerre en Ukraine nous enseigne une leçon paradoxale : elle conforte notre décision d'abandonner progressivement les combustibles fossiles, mais cette guerre en Ukraine provoque du désordre et un changement brusque dans les circuits d'approvisionnement, et une course accrue aux combustibles fossiles. Il n'y a pas l'ombre d'un doute : cette crise renforce davantage encore la détermination de l'Union européenne. Nous sommes et resterons champions de l'action climatique. Nous sommes déterminés à accélérer. Nous sommes résolus à protéger la nature, les océans et les forêts, qui constituent nos poumons, garants de la vie humaine sur terre et de la biodiversité. Par nature, l'Union européenne est un projet de coopération et de solidarité. Et nous avons une obligation à l'égard des populations des pays en développement. Nous avons bâti notre prospérité en partie en abusant des ressources fossiles et en maltraitant la nature. Nous devons donc assumer notre part du fardeau, et nous le faisons. L'Union européenne est le premier pourvoyeur de fonds pour le climat : plus de 20 milliards d'euros en 2021. Nous nous efforçons aussi de contribuer activement à la décarbonisation de l'industrie mondiale en créant des partenariats effectifs tangibles pour une transition énergétique équitable, juste, avec les pays du G7 et avec les pays en développement. Nous le savons, nous avons aussi une obligation envers la prochaine génération, envers les jeunes qui se lèvent, font entendre leur voix et secouent nos consciences. Nous avons une obligation envers tous nos citoyens, dans nos pays : nous leur devons la vérité, nous leur devons la lucidité. Nous avions, en Europe, fondé notre transition climatique sur le modèle d'un gaz facilement disponible et abordable. Aujourd'hui, notre objectif reste résolument le même : la neutralité climatique en 2050, avec des émissions nettes nulles. Mais nous devons regarder la réalité telle qu'elle est, et cela implique de dessiner notre stratégie de transition à la lumière du nouveau contexte géopolitique. Nous accélérons l'investissement pour le renouvelable, mais nous devrons nous appuyer sur l'ensemble des sources d'énergie de la transition. Nous devons diversifier autant que possible pour garantir la sécurité d'approvisionnement, tout en reconnaissant également que les pays en développement ont besoin de gaz pour leur développement et la transition. Nous voulons une transition juste, équitable et inclusive : nous voulons réussir ! Hier, le Secrétaire général Guterres, avec des mots tranchants, a très bien résumé le choix qui s'offre à nous : le suicide ou la solidarité. Nous choisissons la solidarité, nous choisissons la vie. Le temps des promesses qui s'additionnent est passé. C'est le temps de l'engagement, c'est le temps de la réalisation. Vous pouvez compter sur l'Union européenne.

Press material Tuesday 8 November 2022

● Council of the EU   08/11/2022 15:08 | Press release | Council adopted conclusions on statistics   The Council adopted the following conclusions: Following the priorities set in the previous Council Conclusions on EU statistics of November 2021, notably on the EFC Status Report on Information Requirements in EMU, and taking into consideration the political guidelines for the Commission 2019-2024, the Council has reviewed the progress related to information requirements in EMU, statistics for the EDP, surveillance of macroeconomic imbalances and structural statistics. The statistical response to crises The Council WELCOMES that the European Statistical System (ESS) and the European System of Central Banks (ESCB) have ensured that high quality official statistics continued to be published to deadline during the COVID-19 pandemic, with a strong and growing demand from users. The Council further WELCOMES the involvement and efforts of Eurostat, in close cooperation with the Member States, for developing and implementing guidance on the statistical aspects of new policy measures to address the pandemic. The Council CALLS FOR the expansion of statistical accounts for European Union institutions to reflect the impact of these initiatives in their statistics. Further, the Council WELCOMES the response of the ESS to the needs for new and timelier statistics created by the Russian war of aggression against Ukraine, notably with respect to statistics on energy, supply chains, migration and the labour market, and ENCOURAGES the ESS to provide relevant support to the Ukrainian statistical authorities. In this overall context, the Council ACKNOWLEDGES the continuing development by the ESS of new, highly relevant statistics, often on an experimental basis, in particular those that measure the impact of the war in Ukraine on the European economies and societies. Access to data for the compilation of timelier and more detailed official statistics The Council REITERATES the importance of increased and sustained access for producers of official statistics to new data sources. The Council TAKES NOTE of the ESS position paper on the future Data Act proposal, and TAKES NOTE of the discussion on the forthcoming Data Act to support the establishment of a sustained and legally framed access to privately held data for the compilation of timely and more detailed official statistics. Furthermore, the Council LOOKS FORWARD to a possible proposal by the Commission on the revision of Regulation No°223/2009 on European statistics, addressing in particular the issue of access to new data sources from the specific perspective of European statistics as well as ways to ensure increased agility and responsiveness of the ESS. The Council ACKNOWLEDGES the importance of accurate and consistent financial and non-financial statistics. It calls upon the ESS and the ESCB to further enhance cooperation within and between the respective systems. In this context, the Council ENCOURAGES the ongoing reflections how to further facilitate the sharing of relevant information between statistical compilers. Adequate resources for official statistics The Council RECOGNIZES the need to ensure that human and financial resources are adequate for Eurostat and National Statistical Authorities, to address urgent data requirements including on the digital transformation, the green transition and climate change, as well as the aftermath of the pandemic and the impacts of the Russian war of aggression against Ukraine. The 2022 EFC Status Report on Information Requirements in EMU The Council TAKES NOTE of the developments described in the 2022 EFC Status Report on Information Requirements in the EMU. In particular, the Council: APPRECIATES the further improvements in country coverage, timeliness, length of time series and overall quality of the Principal European Economic Indicators (PEEIs). UNDERLINES the continuing important role played by the PEEIs as a basis for monitoring short- term economic developments and LOOKS FORWARD TO further progress to close remaining gaps. Statistics for the Macroeconomic Imbalances Procedure (MIP) and the Stability and Growth Pact The Council WELCOMES the quality assurance of statistics underlying the MIP, and APPRECIATES the annual ESS-ESCB quality assessment report on MIP statistics by Eurostat and the ECB, TAKING NOTE of the actions identified therein. The Council REITERATES its call on Member States to ensure that all statistical data needed for the application of the expenditure benchmark of the Stability and Growth Pact, including data on government revenue in the form of EU funding, are reported to Eurostat, and underlines the importance of harmonisation and transparency of such data. Statistics in relation to Sustainable Development Goals and the European Green Deal The Council WELCOMES Eurostat’s achievements regarding the provision of statistical indicators and information for the monitoring of the implementation of the Sustainable Development Goals at European Union level in the context of the European Semester, and ENCOURAGES Eurostat to continue to monitor progress towards SDGs in cooperation with Member States. The Council WELCOMES the efforts undertaken by the ESS to address information demands from the European Green Deal, notably in the fields of energy statistics, climate change related statistics, environmental economic accounts, transport statistics and sustainable finance. The Council WELCOMES the ECB Climate Agenda and the work towards improving the availability and quality of climate data to better identify and manage climate-related risks and opportunities, the Council LOOKS FORWARD to the release of first results in the areas of green financial instruments and transition and physical risks related to the portfolios of financial institutions. TAKING NOTE of Commission proposals for expanding the range of environmental economic accounts, the Council ENCOURAGES exploring the further development of timely indicators, whilst taking into account the burden on national statistical authorities. The Council UNDERLINES the high priority of timely energy statistics, and therefore ENCOURAGES the swift and complete implementation of the amended Energy Statistics Regulation. The Council WELCOMES the development of new indicators on energy, using new data sources where appropriate. Housing and Real estate statistics The Council WELCOMES the ongoing discussions within the ESS and the ESCB on how to better reflect the contribution of housing costs to inflation, and STRESSES the importance to carefully evaluate all the possible implications of the different options available. The Council further WELCOMES the work of both the ESS and the ESCB to improve commercial real estate indicators. The Council ENCOURAGES both the ESS and the ESCB to continue to attach the necessary importance and urgency to these issues. Business statistics The Council WELCOMES the improvements in European business statistics through the implementation of the European business statistics Regulation, in particular, with regard to the use of new data sources like the micro data on intra-EU exports of goods exchanged between Member States, which, in answer to the Council’s earlier recommendations, should allow to substantially reduce the response burden on enterprises while maintaining a sound level of quality. Τhe Council WELCOMES the development of a new index of services production. The Council ENCOURAGES the ESS to further develop statistics on the contribution of small and medium sized enterprises, regional breakdowns, microdata linking and measurement of high growth enterprises. The Council ACKNOWLEDGES the progress made by the ESS on the better measurement of digitalisation, in the context of the Digital Decade Communication, and UNDERLINES the importance of full implementation of the ESS’s action plan. Demographic and social statistics The Council WELCOMES the publication on 28 September 2022 by Eurostat of its updated population projections over a 10-year horizon. The Council REITERATES the importance of the publication by Eurostat of the long-term population projections by the end of March 2023. The Council UNDERLINES the importance of timely labour cost statistics, and ENCOURAGES the ESS to make progress on statistics relating to digital platform workers. The Council ENCOURAGES the ESS to use its ongoing review of health statistics to take forward improvements in these statistics. Quality and classifications The Council TAKES NOTE of the Peer Reviews accomplished so far within the third round of Peer Reviews of the ESS and its member institutions, and EXPECTS that the resulting recommendations from these and future reviews will be taken forward to improve the compliance with the European Statistics Code of Practice and to enhance the quality of European statistics. The Council WELCOMES the consensus reached by Member States in the revision process for the NACE classification of economic activities and TAKES NOTE of the Delegated Regulation adopted by the Commission to pave the way for the introduction of NACE Rev. 2.1 into statistical domains. Council conclusions on EU statistics

Press material Tuesday 8 November 2022

● Council of the EU   08/11/2022 14:10 | Press release | Myanmar/Burma: EU imposes further restrictive measures on 19 individuals and one entity   In view of the continuing escalation of violence and grave human rights violations following the military takeover two years ago, the Council adopted today a fifth round of restrictive measures. The new listings target 19 persons and one entity, including the Minister of Investment and Foreign Economic Relations Kan Zaw, the Chief Justice of the Supreme Court Htun Htun Oo, high-ranking members of the Myanmar Armed Forces (Tatmadaw) and Air Force, members of the Union Election Commission, as well as business representatives of private companies closely connected and providing support to the Tatmadaw. The State Administration Council is also included as it plays a central role in undermining democracy and the rule of law in Myanmar/Burma as well as in actions that threaten the peace, security and stability of the country. Restrictive measures currently apply to a total of 84 individuals and 11 entities. Those designated are subject to an asset freeze and a travel ban, which prevents them from entering or transiting through EU territory. In addition, EU persons and entities are prohibited to make funds available to those listed. Other EU restrictive measure will remain in place: the embargo on arms and equipment and export restrictions on equipment for monitoring communications which might be used for internal repression, the export ban on dual-use goods for use by the military and border guard police, and the prohibition of military training and cooperation with the Tatmadaw. These measures complement the withholding of EU financial assistance to the government of Myanmar and the freezing of all EU assistance, a tool that might be perceived as a means to legitimise the junta. Two years ago, on 8 November 2020, the National League for Democracy obtained overwhelming and incontestable popular support in the general elections in Myanmar/Burma. The civilian government was overthrown by the Myanmar military on 1 February 2021. The EU is deeply concerned by the continuing escalation of violence and the evolution towards a protracted conflict which has spread across the country and has regional implications. The EU condemns the continuing grave human rights violations including torture and sexual and gender-based violence, the continued persecution of civil society, human rights defenders and journalists, attacks on the civilian population, including ethnic and religious minorities, and the destruction of private property by the Myanmar armed forces. The EU will continue to strive to bring to justice all those responsible for the human rights violations, war crimes and crimes against humanity committed in the wake of the 1 February 2021 coup in Myanmar. The EU reiterates the calls for an immediate cessation of all hostilities, respect of international humanitarian law, and an end to the disproportionate use of force. The sustained use of the most despicable forms of violence by the regime against its people, including civilians and children, runs counter to the commitments set out in the ASEAN Five-Point Consensus, to which the Myanmar military regime agreed. The European Union will continue to support ASEAN’s efforts to ensure a peaceful resolution of the current crisis and looks forward to bold decisions vis-a-vis the Myanmar military regime to be agreed on at the upcoming ASEAN Leaders’ Summit in Phnom Penh.The European Union reiterates its calls for the immediate and unconditional release of all those arbitrarily detained in connection with the coup, including President Win Myint and State Counsellor Aung San Suu Kyi. The relevant legal acts have been published in the Official Journal of the European Union. Background In February 2021, the Council adopted conclusions condemning in the strongest terms the military coup carried out in Myanmar/Burma. In this document, the Council called for a de-escalation of the crisis through an immediate end to the state of emergency and the restoration of the legitimate civilian government. On 25 July 2022, the High Representative issued a declaration on behalf of the EU denouncing the execution of pro-democracy and opposition leaders in the country. In the absence of any swift improvement in the situation, the EU expressed readiness to adopt further restrictive measures against all persons and entities responsible for undermining the rule of law and for human rights violations in the country. Official Journal of the EU, 8 November 2022 (including a list of the sanctioned individuals and entities) Myanmar/Burma: EU imposes restrictive measures on 22 individuals and 4 entities in fourth round of sanctions, 21 February 2022 Myanmar/Burma: Declaration by the High Representative on behalf of the EU on the execution of pro-democracy and opposition leaders in Myanmar/Burma, 25 July 2022

Press material Tuesday 8 November 2022

● Council of the EU   08/11/2022 11:44 | Press release | Banking sector: Council agrees its position on the implementation of Basel III reforms   The EU is about to boost the resilience of banks operating in the Union and strengthen their supervision and risk management by finalising the implementation of the globally agreed Basel III regulatory reforms. Today, the Council reached its position (general approach) on the proposals amending the capital requirements directive and the capital requirements regulation. "We are boosting the strength and resilience of banks operating in the Union. As we are finalising the implementation of the international Basel III reforms, it is important that we take into account the specificities of the EU banking sector and the specific situation in our member states. I am confident that the updated texts which we agreed today aim to achieve these objectives." Zbyněk Stanjura, Minister of Finance of Czechia The Slovenian, French and Czech presidencies, as well as the member states’ experts have devoted a lot of time and effort to address the many political and technical issues of this package. Thanks to the constructive approach of all member states, after 12 months of intense negotiations, the right balance has been found for the Council to reach a general approach. When it comes to limiting banks’ variability of capital levels computed by using internal models via the so-called “output floor” the Council specifies that the limit applies both at banking group level and at the level of each individual bank. Member states will nevertheless have the discretion to apply the floor at the highest level of consolidation for entities in their country if they so wish. In its position, the Council added technical improvements to the areas of credit risk, market risk and operational risk. It also added enhanced proportionality rules for small banks, in particular concerning disclosure requirements for small and non-complex institutions. The Council also revised the Commission proposals as regards the “fit and proper” framework for assessing the suitability of members of the institutions’ management bodies and key function holders, further considering national specificities and practices. Similarly, a more proportionate and targeted framework for cooling-off periods has been imposed for staff and members of governance bodies of competent authorities, before they can take up positions in supervised institutions. Last but not least, the proposal aims to harmonise minimum requirements applicable to branches of third-country banks and the supervision of their activities in the EU as well as to harmonise supervisory tools and powers to make the framework more suitable for member states’ specific market conditions. Background The EU plans to finalise the implementation of Basel III international agreements into EU law. The Basel III agreements were reached by the EU and its G20 partners in the Basel Committee on Banking Supervision to make banks more resilient to possible economic shocks. Basel III comprises a number of measures to enhance prudential regulatory standards, supervision and risk management of banks as a response to the global financial crisis of 2007/2008. The Commission’s proposal of the capital requirements directive aimed at strengthening the regulatory and supervisory landscape for banks operating in the EU by closing loopholes for third country branches, by enhancing and harmonising supervisory tools and powers in important areas and by ensuring that supervisors are sufficiently independent from economical and political influence and by incorporating environmental, social and governance related risks. The Commission’s proposal of the capital requirements regulation aimed to reinforce and facilitate the allocation of capital and liquidity within banking groups in Europe without imposing a significant increase in their capital requirements. The framework for credit risk and operational risk will be further improved and supported by a so called "output floor" which aims at reducing unjustified variances in banks' risk metrics. The European Commission presented its proposals on a review of the capital requirements directive and the capital requirements regulation on 27 October 2021. Now that the Council has set its position on the proposals, it is ready to start negotiations with the European Parliament in order to agree on a final version of the texts. General approach on directive 2013/36/EU as regards supervisory powers, sanctions, third-country branches, and environmental, social and governance risks, and amending directive 2014/59/EU General approach on regulation (EU) No 575/2013 as regards requirements for credit risk, credit valuation adjustment risk, operational risk, market risk and the output floor Commission proposal amending directive 2013/36/EU Commission proposal amending regulation (EU) No 575/2013 Banking Union (background information)

Press material Tuesday 8 November 2022

● Council of the EU   08/11/2022 11:14 | Press release | Taxation: Finance ministers agree to strengthen the code of conduct used to identify and curb harmful tax measures of member states   The EU continues to promote fair tax competition and address harmful tax practices, both within the EU and worldwide. EU finance ministers today agreed on a revised code of conduct for business taxation: a political, intergovernmental commitment by member states to apply reinforced screening rules when looking for and remedy tax measures that could be harmful to the tax bases of other member states. The ultimate goal is to tackle harmful tax competition, tax evasion and tax avoidance in the EU. While the international dimension of the work of the code of conduct group is more widely known – the group is cooperating with third country jurisdictions to promote and strengthen tax good governance and carries out the work leading to the regular revision of the EU list of non-cooperative tax jurisdictions – the primary task of the code of conduct group has been to detect and eliminate harmful tax measures in EU member states since 1997. Today’s revision of the code, the first one since 1997, means that member states will broaden the scope of the tax measures under scrutiny when examining harmful tax practices within the EU. The update of the code took the form of a resolution of the Council and of the representatives of the governments of the member states, meeting within the Council, on a revised code of conduct for business taxation. "We confirmed today our commitment to a fairer tax environment in the EU by reinforcing the rules we apply when tackling harmful tax practices in an evolving economy. Our experts in taxation constantly look out for harmful tax practices. Since starting its work in 1997, the code of conduct group succeeded in eliminating around 140 harmful tax practices within the EU. The code of conduct of business taxation has not been amended since 1997 and today´s agreement further improves its effectiveness also in the light of the recent international tax reform." Zbyněk Stanjura, Minister of Finance of Czechia The revised code of conduct introduces in particular the concept of 'tax features of general application'. Whereas previously only preferential measures (such as special regimes or exemptions from the general taxation system) were examined, under the new rules the scope will also include tax features of general application. These will be regarded as harmful if they lead to double non-taxation or the double/multiple use of tax benefits. The revised code of conduct further clarifies the review process in the code of conduct group, which is responsible for the administration of the code. This revision will allow the Council code of conduct working group to continue its work to address harmful tax practices efficiently. Background The code of conduct is a political commitment that has an intergovernmental nature. The Council's code of conduct group consists of high-level taxation experts of the member states. It is responsible for monitoring possibly harmful tax measures in the EU member states. The code of conduct forms the basis of the work of the Council code of conduct working group. Its elected Chair is supported by the General Secretariat of the Council. Its work also has an international dimension which aims to promote effective changes in respect of worldwide tax good governance through cooperation. The code of conduct group also carries out the technical work, screening and assessment leading to the regular revision by the Council of the EU list of non-cooperative jurisdictions for tax purposes. This EU list is regularly revised following an in-depth review of the implementation of commitments taken by all third-country jurisdictions that are part of the process. Council conclusions on the reform of the code of conduct for business taxation Taxation: Anguilla, The Bahamas and Turks and Caicos Islands added to EU list of non-cooperative jurisdictions for tax purposes (press release, 4 October 2022 EU list of non-cooperative jurisdictions (background information) Code of Conduct Group (Business Taxation)

Press material Tuesday 8 November 2022

● Council of the EU   08/11/2022 11:01 | Press release | EU budget: Council agrees disaster relief aid of €668 million for seven member states following floods, a volcano eruption and an earthquake   Today the Council decided to amend its yearly budget to provide €668 million in disaster relief aid to Germany, Belgium, Spain, the Netherlands, Luxembourg, Greece and Austria. The money will be used to repair damage inflicted by the major natural disasters that hit these seven member states in 2021. "When disaster hits our fellow member states, we help and also provide financial aid through the EU budget. We have a collective interest that countries struck by natural disasters can rebuild what was destroyed, and that their economies emerge stronger from these events. We all remember vividly the tragic images of the floods in Germany, Belgium, the Netherlands, Luxembourg and Austria, the volcano eruption in Spain and the earthquake in Greece. I am very pleased that the Council today agreed to provide a total of €668 million in disaster relief aid." Zbyněk Stanjura, Minister of Finance of Czechia In practice this means that the EU transfers money from the solidarity and emergency aid reserve in its budget to the so-called EU solidarity fund operational budget line, from where it can be paid to member states which were struck by natural disasters and which apply for financial assistance from this fund. The solidarity fund is designed to provide financial assistance in the event of a major disaster in a member state or a country holding accession negotiations with the EU. The aid will be distributed as follows: €612.6 million for Germany following the floods in the North Rhine-Westphalia and Rhineland-Palatinate regions of July 2021, in the course of which 196 people died; €87.7 million for Belgium after the floods of summer 2021 which caused damage to hundreds of thousands of households; €9.5 million for Spain following to the eruption of the volcano Cumbre Vieja in La Palma, Las Canarias, in September 2021 which created massive damage on the island; €4.7 million for the Netherlands due to the floods of July 2021 which caused severe damage; €1.8 million for Luxembourg which in summer 2021 registered a 100-year flood at ten gauging stations and measured the highest water levels at fifteen gauging stations since the beginning of recording; €1.4 million for Greece after the earthquake of 6 ML magnitude southeast of Heraklion, Crete, in September 2021 which killed one person, injured 36 and created substantial damages; €798.000 for Austria following the floods of July 2021 in Salzburg and Tyrol where the population and the economy was severely affected. In parallel, the Council also endorsed amendments to the 2022 EU budget in order to enter the necessary appropriations, both in commitments and payments. The financial aid will be paid out once both proposals have been adopted by the European Parliament and the Council. Council decision Transfer of EU budget EU budget (background information) EU budget for 2022 (background information) Long-term EU budget 2014-2020 (background information)

Press material Tuesday 8 November 2022

● Council of the EU   08/11/2022 10:50 | Press release | Vanuatu: Council fully suspends visa free travel agreement   The Council today decided to fully suspend the visa waiver agreement with Vanuatu due to the risks posed by its investor citizenship schemes (‘golden passport’ schemes). A partial suspension of the agreement had already been adopted on 3 March 2022. Following the partial suspension, the Commission started a dialogue with Vanuatu on 12 May to address the EU’s concerns. However, since then the country has failed to engage in any meaningful way and the circumstances that led to the temporary suspension still persist. Based on careful monitoring and assessment of Vanuatu’s investor citizenship schemes, the EU has concluded that they present serious deficiencies which could pose a risk to the EU, notably due to: the extremely low rejection rate, which raises doubts as to the reliability of the security and due diligence screening the absence of physical presence or residence requirements, short processing periods and a lack of information exchange with applicants’ countries of origin or residence the granting of citizenship to applicants listed in Interpol databases the nationalities of origin of successful applicants, which include several countries whose nationals require a visa to enter the EU Next steps The decision will now be published in the Official Journal and will apply as from 4 February 2023.

Press material Monday 7 November 2022

● Council of the EU   07/11/2022 14:56 | Press release | Macroeconomic dialogue with the social partners on 7 November 2022   The Council presidency, the European Central Bank and the European Commission met with European social partners on 7 November 2022 to discuss recent developments of the economic situation, as well as the energy crisis and its impact on the EU economy. "The global energy imbalance following the end of the pandemic has been aggravated by the Russia’s war of aggression against Ukraine and various other factors, such as the delayed maintenance of gas infrastructures. Mainly due to energy price hikes, the EU economy is experiencing another major negative shock. Most economic agents have been experiencing adverse microeconomic consequences. With respect to households, rising energy costs are increasing the cost of living. Firms have to deal with rising production and operating costs. As called for by the social partners, the crisis cannot be solved by conventional means, but extraordinary instruments are needed to safeguard the most vulnerable, to maintain the competitiveness of our economies, and to preserve social cohesion in the EU. The Czech presidency promotes European solutions to be delivered as swiftly as possible. In general, the unusual situation in the energy market and the overall uncertain macroeconomic environment call for a collective change in behaviour and a continued social dialogue to exit the crisis with a more resilient and greener EU economy." Zbyněk Stanjura, Minister of Finance of Czechia and chair of the Council in Ecofin formation "Russia’s war on Ukraine has major socio-economic consequences for the entire European Union. Record high energy prices and inflation are hurting EU families and businesses, with lower-income households hit the worst since they spend proportionally more on food and energy. We must give strong support to those in need, while providing incentives to save energy and maintaining a cautious fiscal stance to avoid fuelling inflation. This can only be achieved by doing a better job at targeting support measures. Social dialogue and collective agreements have an essential role to play as well. At the same time, Europe is keeping up its work to secure alternative sources of energy supply, including renewables, and to reduce our energy demand. We must stay on course to build a solid basis for Europe’s future prosperity. Here, full implementation of reforms and investments in the Recovery and Resilience Plans will help a great deal. This is not only about energy, but also about Europe’s global competitiveness and social welfare." Valdis Dombrovskis, Executive Vice-President of the European Commission "We had a very productive exchange of views at today’s macroeconomic dialogue in a difficult context given the war in Ukraine. On the economic front, European economies have stepped up and stood firm, perhaps best encapsulated by a record low level of unemployment. That said, we are all fully aware of the challenges and risks we face particularly in relation to energy costs and inflation. It is imperative that we continue to work together and to coordinate, with policies that are agile, targeted and supportive where needed." Paschal Donohoe, President of the Eurogroup "Europe faces the risk of a long and deep recession if today’s cost-of-living crisis is not dealt with correctly. The EU and member states must work together to save jobs and businesses, encourage pay rises through collective bargaining, and tax profits to enable short, medium and long-term investment in economic modernisation including to secure reliable and climate-friendly energy supplies, to promote digitalisation and achieve social justice. To do so, the EU needs a new solidarity mechanism like SURE that helped the EU going through the covid pandemic and prevented far worse economic outcomes. The EU’s economic-policy making rules must be reformed to enable more investment and prevent austerity that would make the EU’s economic and inequality problems even worse. Economic policies must take into account the impact on jobs and standards of living of working people when contemplating restrictive policy moves. There is also an urgent need to immediately support working people and the vulnerable to get through the cost-of-living crisis so that they don't plunge into poverty." Luca Visentini, ETUC General Secretary "Business sentiment has declined rapidly after a strong first half year driven by post-covid service sector reopening. Soaring energy bills and continuing supply chain disruptions mean costs for businesses are rising much faster than consumer inflation. EU leaders need to agree urgently on new measures to alleviate energy costs for businesses. Recent decisions to invest on other continents rather than in Europe due to concerns over long-term energy prices in the EU, which have been heightened by the depth of the present energy crisis in the EU, are a signal that cannot be ignored. Action is needed now to avoid further investment leakage. In particular, policymakers should consider EU-wide measures to temporarily decouple electricity prices from gas prices and grant governments the necessary flexibility to support businesses while maintaining a level playing field in the single market. In view of limited fiscal space in many Member States, measures to support consumers and businesses with energy costs must be temporary and well-targeted. In this context, social partners can play an important role in helping to continue to prevent the emergence of a damaging wage-price spiral." Markus J. Beyrer, Director General of BusinessEurope "Today, enterprises providing services of general interest (SGIs) are facing extreme pressures that threaten their ability to fulfil their missions, to invest, and to anticipate the impacts of climate change. Rising energy and commodity prices, labour shortages, and the increasing difficulty for end-users to pay their bills: all point to a growing risk of insolvency and service interruption for SGIs. Support to households and enterprises is needed, but this support must be temporary to contain fiscal costs while maintaining price signals to foster energy savings. Collective bargaining and timely and balanced wage negotiations are also part of the solution. With its ambitions to boost low-carbon energy systems and lowering energy consumption, the EU Green Deal is the central element to guarantee the EU’s long-term resilience and security of energy supply, and remains the only viable long-term plan for the EU." Valeria Ronzitti, General Secretary of SGI Europe "SMEunited calls on all EU Member States to act immediately and implement targeted measures for SMEs that require support in the energy crisis. The emergency regulation already provides several instruments for intervention in the retail market. In addition, only alignment at EU level can guarantee the integrity of the single market. On the cost of living, social partners should negotiate wages responsibly to avoid a dangerous wage/price spiral." Véronique Willems, SMEunited Secretary General "The macroeconomic dialogue with European social partners constitutes an important step in designing appropriate policy responses to the challenges facing EU economies. It is important to have a shared understanding to tackle the current energy crisis, which is driving up inflation and affecting households and businesses alike. With the Swedish presidency around the corner, we look forward to chairing this valuable exchange between the social partners and EU institutions next year." Anna Widenfalk, Deputy Director-General, Ministry of Finance of Sweden (Swedish Presidency: January - June 2023) "One of the main lessons we learned from the pandemic is that it is much more efficient and cheaper to protect than to let something be destroyed and then have to rebuild it from scratch. It is a lesson that we ought to keep in mind when deciding on the correct policy response to our economic problems. We have to act with unity, determination and solidarity. This proved to be the right response to the pandemic and should guide us going forward." Nadia Calviño, Minister for Economic Affairs of Spain, future chair of the Council (Spanish Presidency: July - December 2023) The next macroeconomic dialogue will be organised under the Swedish presidency. Photos and videos from the meeting