COUNCIL OF THE EU update

 

Press material Tuesday 27 June 2023

● Council of the EU   27/06/2023 08:46 | Press release | Banking sector: Provisional agreement reached 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, negotiators from the Council presidency and the European Parliament reached a provisional agreement on amendments to the Capital Requirements Regulation and the Capital Requirements Directive. "After intense negotiations we have reached an agreement on updated rules which we believe will boost the strength and resilience of banks operating in the Union. This is a major step forward which will help ensure that European banks can continue to operate also in light of external shocks, crises or disasters. The swift implementation of global standards is also an important signal for our international partners and the EU’s continued commitment to international cooperation and multilateralism." Elisabeth Svantesson, Swedish Minister for Finance "Today’s agreement marks the culmination of a long process to reform the EU’s banking rules in the wake of the financial crisis. By making the banking sector more resilient, the new rules will help the EU continue to withstand challenges such as COVID-19 and the economic impact of the war in Ukraine. The rules will also support the green and digital transitions by means of a strong banking sector that can provide funding to the real economy, households and citizens." Niklas Wykman, Swedish Minister for Financial Markets Under the provisional agreement, negotiators have agreed on how to implement the so-called 'output floor', limiting banks' variability of capital levels computed by using internal models, and the appropriate transitional arrangements to allow sufficient time for market players to adapt. Negotiators further agreed to make improvements to the areas of credit risk, market risk and operational risk. They also agreed to provide for additional proportionality in the rules, in particular for small and non-complex institutions. The agreement further includes a harmonised 'fit and proper' framework for assessing the suitability of members of the institutions' management bodies and key function holders. Similarly, an agreement was also reached on rules to safeguard supervisory independence, notably by providing for a minimum cooling-off period for staff and members of governance bodies of competent authorities before they can take up positions in supervised institutions, and a limit on the time in office for the members of the governance bodies. Negotiators also agreed on a transitional prudential regime for crypto assets and on amendments to enhance banks' management of ESG risks. Under the provisional agreement, negotiators decided to harmonise minimum requirements applicable to branches of third-country banks and the supervision of their activities in the EU. The agreement has been agreed 'ad referendum' and is therefore provisional as it still needs to be confirmed by the Council and the Parliament before it can be formally adopted. Background The EU is about to finalise the implementation of Basel III international agreements into EU law. The Basel III agreement was reached by the EU and its G20 partners in the Basel Committee on Banking Supervision to make banks more resilient to possible economic shocks. The Basel III-standards comprise 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 European Commission presented its proposals on a review of the Capital Requirements Regulation and the Capital Requirements Directive on 27 October 2021. In addition to amendments to implement the Basel III-standards, the proposals also included several measures related to the supervisory framework. The Council agreed on its General Approach for the proposals on 8 November 2022. Trilogues with the European Parliament started on 9 March 2023 and ended in the provisional agreement reached today. Banking sector: Council agrees its position on the implementation of Basel III reforms (press release, 8 November 2022) Banking Union (background information)

Meetings Monday 26 June 2023

● Council of the EU   26/06/2023 20:18 | MEETING | Main results - Foreign Affairs Council, 26 June 2023   The Foreign Affairs Council held discussions on the Russian aggression against Ukraine, relations between the EU and Latin America and the Caribbean, and digital diplomacy. Under current affairs it was informed about: Tunisia, Armenia and Azerbaijan, and the Belgrade-Pristina dialogue.

Meetings Monday 26 June 2023

● Council of the EU   26/06/2023 18:32 | MEETING | Main results - Agriculture and Fisheries Council, 26-27 June 2023   During the first day of the Agriculture and Fisheries Council, ministers discussed the progress made in implementing the Common Fisheries Policy and their priorities for fishing opportunities for 2024. They also exchanged views on the proposal for a regulation on the sustainable use of pesticides, and on the progress report and compromise text presented by the presidency.

Press material Monday 26 June 2023

● Council of the EU   26/06/2023 18:30 | Press release | CSDP civilian missions: Council extends mandates of EUBAM Libya, EUBAM Rafah and EUPOL COPPS   The Council decided today to renew the mandates of three civilian missions under the Common Security and Defence Policy (CSDP) and update the mandate of one of them. The mandate of the EU Integrated Border Management Assistance Mission in Libya (EUBAM Libya) has been renewed for two years until 30 June 2025. In the context of the Strategic Review of EUBAM Libya, the Council decided that the mission should contribute to enhancing the capacity of the relevant Libyan authorities and agencies to manage Libya’s borders, to fight against cross-border crime - including human trafficking and migrant smuggling - and to counter terrorism. The EU Border Assistance Mission at the Rafah Crossing Point (EUBAM Rafah) and the EU Police Mission in the Palestinian Territories (EUPOL COPPS) have both been extended for one year until 30 June 2024, with the possibility of extending for an additional year. Press material Monday 26 June 2023   ● European Council   26/06/2023 17:42 | Media advisory | Press briefing ahead of the European Council meeting of 29-30 June 2023   The press briefing ahead of the European Council meeting of 29-30 June 2023 will take place on Wednesday 28 June 2023 at 15.30. This briefing will be "off the record". The press briefing will take place in a hybrid format: EU accredited journalists will be able to participate and ask questions either in person at the Justus Lipsius press room or remotely. To attend the event remotely, please use this link to register and have the possibility to ask questions. EU accredited journalists who already registered for previous high level press events in 2022 and 2023 do not need to do it again. • Deadline for registration: Wednesday 28 June 2023 at 14.30. Further instructions will be sent to all registered participants shortly after the deadline.

Press material Monday 26 June 2023

● Council of the EU   26/06/2023 15:34 | Press release | Digital diplomacy: Council sets out priority actions for stronger EU action in global digital affairs   The Council today approved conclusions on EU digital diplomacy. In times of increasing geopolitical challenges, the rapid development of disruptive technologies having a transformative impact on economies and societies requires that the EU and its member states strengthen their role and leadership in the global digital governance. Against this background, the conclusions underline the need for a stronger, more strategic, coherent, and effective EU policy and action in global digital affairs, and set a series of priority actions, based on the progress achieved in the implementation of 2022 Council conclusions on EU Digital Diplomacy. The Conclusions stress that in order to bring its digital diplomacy to the next level, the EU needs to act in a “Team Europe” approach, jointly protecting its strategic interests and promoting its human-centric approach to digital transition. This should be done: first, by engaging strategically in all the relevant multilateral fora and safeguarding the current multistakeholder model of Internet governance second, by incorporating digital diplomacy in the Global Gateway, the EU’s “offer” to shape secure and trusted global connectivity finally, by strengthening the EU’s position as a shaper of the global digital rulebook, including through enhanced bilateral and regional digital partnerships and alliances Text of the conclusions EU digital diplomacy: Council agrees a more concerted European approach to the challenges posed by new digital technologies (press release, 18 July 2022)