COUNCIL OF THE EUROPEAN UNION update

 

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Press material Tuesday 27 June 2023

● Council of the EU   27/06/2023 13:26 | Press release | Central Securities Depositories: Council and Parliament reach agreement   The Council has reached a provisional agreement with the European Parliament on an update to the rules on central securities depositories (CSDs). The new law will reduce the financial and regulatory burden on CSDs and improve their ability to operate across borders, while also strengthening financial stability. "Central securities depositories are vital to the EU’s financial system and for the Capital Markets Union, yet they still face obstacles in terms of high costs and excessive red tape. Today’s agreement will help us unlock the full potential of the EU’s capital markets, making them more attractive to investors." Elisabeth Svantesson, Swedish Minister for Finance Aim of the review CSDs are national or international financial organisations that manage the ‘settlement’ (transfer of ownership) of securities such as shares and bonds. They play a key role in the EU's capital markets and financial system. The new regulation will improve the efficiency of securities settlement in the EU by reducing compliance costs and regulatory burdens for CSDs. It will make it easier for CSDs to offer services across borders, while also improving cooperation among supervisors. Today’s agreement updates the Central Securities Depositories Regulation adopted in 2014, which established a set of common requirements for CSDs operating securities settlement systems across the EU. A simpler passporting regime ‘Passporting’ refers to the procedure via which a CSD based in one EU member state can provide services in another member state. The current passporting regime is lengthy and burdensome and discourages cross-border services. The text agreed on today clarifies and simplifies the rules, thus reducing the barriers to cross-border settlement and easing the administrative and financial burden. Better supervision The agreement reached today will also make supervision of CSDs more effective by improving cooperation between supervisors. In cases where a CSD’s activities in at least two other member states are considered to be of substantial importance to the functioning of the securities markets and investor protection, a college will be set up to facilitate cooperation and information exchange between member state authorities. Supervisors will also have access to better information about the activities of non-EU CSDs operating in the EU. Improved settlement efficiency While ‘settlement efficiency’ (the rate at which securities transactions settle on the intended date) has slowly improved since the adoption of the 2014 regulation, it is still lower than in other developed capital markets. The new regulation contains measures to improve efficiency by amending certain elements of the settlement discipline regime, including the preconditions for applying so-called mandatory buy-ins. These occur when a transaction has failed to settle at the end of an agreed period and the buyer of the securities is forced to repurchase them elsewhere. Under the revised regulation, such buy-ins will only be introduced as a measure of last resort, where the rate of settlement fails in the EU is not improving and is presenting a threat to financial stability. Banking-type ancillary services The text agreed between the Council and the Parliament also includes provisions adjusting the conditions under which CDSs can access banking-type services, including through other CSDs. As a result, offering services for a broader range of currencies as well as across borders will be facilitated. Next steps Today’s provisional agreement still needs to be formally approved by the EU’s member state ambassadors. It will then be adopted by the Council at a forthcoming meeting following legal and linguistic revision of the text. The regulation will enter into force following publication in the EU’s official journal. Background The Central Securities Depositories Regulation was adopted in 2014 in the wake of the financial crisis. Its aim was to improve the safety and efficiency of settlements and provide a set of common requirements for CDSs across the EU. In July 2021 the Commission reported that, while the regulation was broadly successful in achieving its objectives, feedback from stakeholders indicated that significant barriers continued to exist in a number of areas, including passporting and settlement discipline. As a result, on 16 March 2022 the Commission published a proposal for a review of the CSDR, focusing on five main areas: the passporting regime, cooperation between supervisory authorities, banking-type ancillary services, settlement discipline and the oversight of third country CSDs. The Council agreed its negotiating position on 22 December 2022, and negotiations with the European Parliament began on 18 April 2023.

Press material Tuesday 27 June 2023

● Council of the EU   27/06/2023 12:30 | Press release | Council gives final green light to creation of EU drugs agency   The Council today adopted a legislative act which will replace the existing European Monitoring Centre for Drugs and Drug Addiction (EMCDDA) with a European Union Drugs Agency. The agency will play a key role in the EU's response to new health and security challenges posed by illicit drugs. The seat of the agency will continue to be in Lisbon, Portugal. "Illicit drugs and drug trafficking cause immense harm to our society. It is often one of the root causes of violent organised crime, and is both a national and global security problem. Thanks to the EU Drugs Agency, the EU will be better equipped to tackle these challenges in the future." Gunnar Strömmer, Swedish minister of justice "I welcome that the role of the EU Drugs Agency in preventing and addressing the health and social implications of drugs and drug addictions will be strenghthened." Jakob Forssmed, Swedish minister for social affairs and public health The main tasks of the agency will be the collection, monitoring, analysis and dissemination of data, better preparedness with early warning and risk assessment and evidence-based recommendations of actions as well as competence development to anticipate and counter drug related challenges. The regulation will also strenghthen the role of the agency in the area of international cooperation. It tasks the agency to actively seek cooperation with international organisations. The agency will also be able to involve third countries in its work.

Press material Tuesday 27 June 2023

● Council of the EU   27/06/2023 12:28 | Press release | Council adopts EU laws on better access to electronic evidence   Today, the Council adopted a regulation and a directive on cross-border access to electronic evidence (e-evidence). E-evidence refers to digital data, such as emails, text messages and traffic data, that is used to investigate and prosecute criminal offences. The new rules will make it easier for the police and judicial authorities to obtain such evidence. "The laws the Council adopted today will improve the police and judicial authorities’ access to electronic evidence, especially when it is located in other countries. This is a crucial step forward to fight crime in the EU." Gunnar Strömmer, Swedish Minister for Justice European production and preservation orders According to the new rules, judicial authorities will be able to directly request electronic evidence from service providers – such as telecom or social media companies – based in another member state. The service providers will be obliged to respond within 10 days, or 8 hours in emergency cases. Through a European preservation order, judicial authorities can prevent foreign service providers from deleting data. This would enable the authorities to request this information at a later stage. Designated establishment and legal representative Service providers that offer their services in the EU must appoint a legal representative or designate an establishment to which judicial authorities can send their e-evidence orders. Their role will be the receipt of, compliance with and enforcement of European production and preservation orders. The legal representative will have to be physically present in the EU. Both the designated establishment or legal representative and the service provider itself can be held liable if they do not comply with the orders. Member states must make sure that there are penalties in place in case of non-compliance.

Press material Tuesday 27 June 2023

● Council of the EU   27/06/2023 11:28 | Press release | Towards a global digital health certificate: Council adopts recommendations   Today the Council has adopted a recommendation to ensure the smooth transition of COVID-19 certification system to a WHO global digital health certification network. The recommendation encourages member states to join, follow and participate in the further development of the WHO global digital health certification network. Until member states are connected to it, and during the period until the end of the year, they are encouraged to remain connected to the EU Gateway (the EU’s existing digital infrastructure for the verification of certificates). The WHO global digital health certification network will integrate the technology developed in EU digital COVID certificates. Connection to the global digital health certification network Member states are encouraged to connect to the global digital health certification network that is being set up by the WHO. However, it is up to member states to decide whether and when to connect to it. Issuance and acceptance of certificates Once connected to the network, member states are encouraged to issue and accept COVID-19 certificates compatible with the network requirements, in particular in case of a declared public health emergency of international concern. Further evolution of the global digital health certification network Member states are encouraged to follow and participate in the further development of the WHO global digital health certification network, such as its possible expansion to other diseases beyond COVID-19, or other uses in the health context. Transitional period until 31 December 2023 The Commission will maintain the EU Gateway until the end of the year. Member states are encouraged to remain connected to the EU Gateway and continue to issue certificates identical to the EU digital Covid certificate even after 30 June 2023. Background information The existing regulation on EU digital Covid certificate is set to expire on 30 June 2023. Against this backdrop, on 5 June 2023 the Commission put forward a proposal for a Council recommendation on a global digital health certificate. Once adopted, the recommendation enters into force on the same day. Council Recommendation on joining the global digital health certification network established by the WHO and on temporary arrangements to facilitate international travel (link to be added when public) What is the EU doing in response to the COVID-19 coronavirus pandemic (background information) Covid-19 EU Digital Certificate regulation (to expire on 30 June 2022)

Press material Tuesday 27 June 2023

● Council of the EU   27/06/2023 10:53 | Press release | EU-New Zealand: Council adopts the decision to sign free trade agreement   On 27 June, the Council adopted a decision on the signature of the free trade agreement (FTA) with New Zealand. The EU and New Zealand are expected to sign the agreement later on. EU-New Zealand free trade agreement The FTA will liberalise and facilitate trade and investment, as well as promote a closer economic relationship, which will open significant economic opportunities for companies and consumers on both sides. The EU is New Zealand's third-biggest trade partner. Bilateral trade in goods between the two partners has risen steadily in recent years, reaching almost €9,1bn in 2022. Once the agreement enters into force, bilateral trade is expected to grow by up to 30% thanks to this deal, with EU annual exports potentially growing by up to €4.5 billion. EU investment into New Zealand has a potential to grow by up to 80%. The deal can cut some €140 million a year in duties for EU companies from the first year of application. "In the current geopolitical context, after COVID-19 and Russia's aggression against Ukraine, this new agreement with a like-minded partner as New Zealand is of key importance for the EU and the EU’s Indo-Pacific strategy. The FTA represents major opportunities for our companies, our farmers and our consumers, as well as for the New Zealand counterparts. It also includes unprecedented social and climate commitments." Johan Forssell, Swedish Minister for International Development Cooperation and Foreign Trade Press material Tuesday 27 June 2023   ● Council of the EU   27/06/2023 10:38 | Press release | EU Public Prosecutor's Office (EPPO): Council appoints 5 European prosecutors   The Council today appointed 5 European prosecutors to the European Public Prosecutor's Office in the context of a partial renewal of the EPPO College (the term of office of 8 European prosecutors expires on 28 July 2023)*. They will take office on 29 July 2023. The names of the new European prosecutors are: Nikolaos PASCHALIS Andrea VENEGONI Anne PANTAZI LAMPROU Gedgaudas NORKŪNAS Ursula SCHMUDERMAYER They will supervise investigations and prosecutions and, together with the European Chief Prosecutor, will form the EPPO College. European prosecutors are appointed for a non-renewable term of six years. The Council may decide to extend their term for a maximum of three years at the end of this period. As part of the transitional rules for the first term of office following the creation of the EPPO the European prosecutors from one third of the member states, determined by drawing lots, were to hold a three year non-renewable mandate in order to stagger the renewal of the EPPO College. This was the case for the prosecutors from Austria, Cyprus, Greece, Italy, Lithuania, the Netherlands, Portugal and Spain. Each member state nominates candidates for the position of European prosecutor. These must be candidates who are active members of the public prosecution service or judiciary of their member state, whose independence is beyond doubt and who possess the qualifications required for appointment to high prosecutorial or judicial office in their member state. They must have relevant practical experience of national legal systems, of financial investigations and of international judicial cooperation in criminal matters. Following the nomination phase, a selection panel draws up reasoned opinions and ranks the nominated candidates for each member state who fulfilled the conditions. The Council then selects and appoints one of the candidates to be the European prosecutor for their member state. *The other 3 European prosecutors will be appointed in further proceedings Meetings Tuesday 27 June 2023   ● Council of the EU   27/06/2023 10:24 | MEETING | Main results - EU-Tajikistan Cooperation Council, 26 June 2023   The 10th EU-Tajikistan Cooperation Council exchanged views on general and political matters, trade, economic and investment issues, and international and regional issues. Meetings Tuesday 27 June 2023   ● Council of the EU   27/06/2023 17:15 | MEETING | Main results - General Affairs Council, 27 June 2023   Ministers prepared for the upcoming European Council meeting and discussed European electoral law. They also approved the 2023 integrated country-specific recommendations and endorsed the 18-month programme of the Council. Meetings Tuesday 27 June 2023   ● Council of the EU   27/06/2023 17:50 | MEETING | Main results - Agriculture and Fisheries Council, 26-27 June 2023   Agriculture and Fisheries 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 trade-related agricultural issues. Ministers also received an update from the presidency on the state of play of current legislative proposals on geographical indications (GIs), the farm sustainability data network (FSDN), and labelling rules for organic pet food. 27/06/2023 15:30 | Press release Council and Parliament agree on new banking rules Following lengthy negotiations, the Council and the European Parliament have reached a provisional agreement on new capital requirements for EU banks. As holder of the Presidency of the Council of the EU, Sweden led the negotiations. The EU Banking Package involves, among other things, implementing international standards in the EU regulatory framework on capital requirements and bank supervision. 27/06/2023 14:35 | Press release New free trade agreement between EU and New Zealand The Council of the European Union will today adopt a decision to sign a free trade agreement with New Zealand. It will also adopt a decision to authorise the European Commission to open negotiations on agreements on digital trade rules with Singapore and South Korea, and on the conclusion of digital trade principles with Japan. 27/06/2023 10:00 | Article The Swedish Presidency has safeguarded democratic values and the rule of law in the EU Respect for democratic values and the rule of law are fundamental for cooperation in the EU. This results in stronger cohesion and protection of citizens’ rights, and creates prospects for a well-functioning single market. To help improve respect for democratic values and the rule of law in all EU Member States, the Swedish Presidency has focused on the annual rule of law dialogue, hearings under Article 7 of the Treaty on European Union and organising a symposium on democracy and the rule of law.

27/06/2023 13:20 | Article

Research infrastructure and data an important issue for the Swedish Presidency

On 19–20 June, the Swedish Presidency of the Council of the European Union hosted a conference on the role of research infrastructure and data in the digital age. The focus was on measures to improve access to research infrastructure – and associated data and services – for researchers, businesses and society as a whole.

26/06/2023 17:00 | Article

Economic governance and VAT rules on the agenda at the Ecofin in Luxembourg

The final Ecofin Council meeting during the Swedish Presidency included a discussion on the European Commission’s proposal for reform of the EU’s economic governance framework. There was also a discussion on the Commission’s proposal for updated VAT rules for the digital age.