COUNCIL OF THE EUROPEAN UNION,update

 

Press material Friday 15 December 2023

● European Council   15/12/2023 04:51 | Press release | Press statement by the President of the European Council Charles Michel   Following the first day of the European Council meeting, President Michel made the following statement: "The MFF (Multiannual financial framework) Revision as set out in the document below, in all its components and priorities – i.e. support for Ukraine, migration and the external dimension (Headings 4 and 6), strategic technologies for Europe platform, NGEU (NextGenerationEU) interest payments, special instruments, new own resources and elements that reduce the impact on national budgets - is firmly supported by 26 Heads of State or Governments. We will revert early next year." Multiannual Financial Framework 2021-2027 Negotiating Box

Press material Thursday 14 December 2023

● European Council   14/12/2023 21:47 | Press release | European Council conclusions on Ukraine, enlargement and reforms   I. UKRAINE 1. The European Council reiterates its resolute condemnation of Russia’s war of aggression against Ukraine, which constitutes a manifest violation of the UN Charter, and reaffirms the European Union’s unwavering support for Ukraine’s independence, sovereignty and territorial integrity within its internationally recognised borders and its inherent right of self-defence against the Russian aggression. 2. The European Council recalls its previous conclusions and confirms the European Union’s unwavering commitment to continue to provide strong political, financial, economic, humanitarian, military and diplomatic support to Ukraine and its people for as long as it takes. 3. The European Union and its Member States will continue to address Ukraine’s pressing military and defence needs. In particular, the European Council insists on the importance of timely, predictable and sustainable military support for Ukraine, notably through the European Peace Facility and the EU Military Assistance Mission, as well as through direct bilateral assistance by Member States. The European Council stresses the urgent need to accelerate the delivery of missiles and ammunition, notably under the one million rounds of artillery ammunition initiative, and to provide Ukraine with more air defence systems. The European Council invites the Council to intensify work on the reform of the European Peace Facility and the further increase of its financing, building on the proposal of the High Representative. The European Union and its Member States remain committed to contributing, for the long-term and together with partners, to security commitments to Ukraine, which will help Ukraine to defend itself, resist destabilisation efforts and deter acts of aggression in the future. Following the report by the High Representative, the European Council discussed the EU’s future security commitments to Ukraine. It invites the High Representative and Member States to take work forward in the Council. The European Council will remain seized of the matter. Military support and security commitments will be provided in full respect of the security and defence policy of certain Member States and taking into account the security and defence interests of all Member States. 4. In the face of continued Russian attacks against Ukraine’s civil and critical infrastructure, the European Union and its Member States will intensify the provision of further humanitarian and civil protection assistance to Ukraine, as well as assistance to ensure the resilience of its energy sector through the winter. Moreover, the European Union remains committed to supporting Ukraine’s repair, recovery and reconstruction, in coordination with international partners, including the demining process and psychosocial rehabilitation. 5. The European Union and its Member States will continue their intensive global outreach efforts and cooperation with Ukraine and partners from all regions of the world to ensure the widest possible international support for a comprehensive, just and lasting peace and the key principles and objectives of Ukraine’s Peace Formula, with a view to a future Global Peace Summit. 6. The European Council reiterates its call for decisive progress, in coordination with partners, on how extraordinary revenues held by private entities stemming directly from Russia’s immobilised assets could be directed to support Ukraine and its recovery and reconstruction, consistent with applicable contractual obligations, and in accordance with EU and international law. In this context, it takes note of the recent proposals on extraordinary revenues stemming from immobilised Russian assets. 7. Russia and its leadership must be held fully accountable for waging a war of aggression against Ukraine and for other most serious crimes under international law, as well as for the massive damage caused by its war. The European Council encourages further efforts, including in the Core Group, to establish a tribunal for the prosecution of the crime of aggression against Ukraine that would enjoy the broadest cross-regional support and legitimacy, and a future compensation mechanism; it reiterates its support for the Council of Europe’s Register of Damage Caused by the Aggression of the Russian Federation Against Ukraine, as a first tangible step in this direction. It also calls on all states to sign and ratify rapidly the Ljubljana-The Hague Convention on International Cooperation in the Investigation and Prosecution of the Crime of Genocide, Crimes against Humanity, War Crimes and other International Crimes. The European Council also reiterates its support for the work of the International Criminal Court and condemns Russia’s continued attempts to undermine its international mandate and functioning. 8. The European Council reiterates its urgent call on Russia and Belarus to immediately ensure the safe return to Ukraine of all unlawfully deported and transferred Ukrainian children and other civilians. 9. The European Union is determined to further weaken Russia’s ability to wage its war of aggression, including by further strengthening its sanctions, and through their full and effective implementation and the prevention of their circumvention, especially for high-risk goods, in close cooperation with partners and allies. The European Council welcomes the adoption of the 12th package of sanctions. It also welcomes the agreement reached on the Directive on the definition of criminal offences and penalties for the violation of Union restrictive measures. The European Council condemns the continued military support for Russia’s war of aggression provided by Iran, Belarus and the DPRK. It also urges all countries not to provide material or other support for Russia’s war of aggression. The European Union will continue its intensive work with partners to counter false Russian narratives and disinformation about the war. 10. The European Council stresses the importance of security and stability in the Black Sea. It is vital that Ukraine’s grain exports are sustainable and reach world markets. The European Council supports all efforts to facilitate exports of Ukraine’s grain and other agricultural products to the countries most in need, notably in Africa and the Middle East. The European Council also underlines the importance of using the EU’s Solidarity Lanes to their full potential, and invites the Commission to speed up work with Member States in order to propose new measures with a view to further developing the capacity of the Solidarity Lanes on all routes. 11. The European Union will continue to support the Republic of Moldova and Georgia in addressing the challenges they face as a consequence of Russia’s war of aggression against Ukraine. III. ENLARGEMENT AND REFORMS 13. Recalling the Granada Declaration, the European Council underlines that enlargement is a geo-strategic investment in peace, security, stability and prosperity. It is a driver for improving the economic and social conditions of European citizens, reducing disparities between countries, and must foster the values on which the Union is founded. Looking ahead to the prospect of a further enlarged Union, both future Member States and the EU need to be ready at the time of accession. Work on both tracks should advance in parallel. Aspiring members need to step up their reform efforts, notably in the area of rule of law, in line with the merit-based nature of the accession process and with the assistance of the EU. In parallel, the Union needs to lay the necessary internal groundwork and reforms, setting the Union’s long-term ambitions and the ways to achieve them, and addressing key questions related to its priorities and policies as well as its capacity to act. This will make the EU stronger and will enhance European sovereignty. 14. The European Council endorses the Council conclusions on enlargement of 12 December 2023. Building on the Commission’s enlargement package of 8 November 2023, the European Council takes the following decisions: Ukraine and the Republic of Moldova 15. The European Council decides to open accession negotiations with Ukraine and with the Republic of Moldova. The European Council invites the Council to adopt the respective negotiating frameworks once the relevant steps set out in the respective Commission recommendations of 8 November 2023 are taken. Georgia 16. The European Council also decides to grant the status of candidate country to Georgia, on the understanding that the relevant steps set out in the Commission recommendation of 8 November 2023 are taken. Bosnia and Herzegovina 17. The European Council will open accession negotiations with Bosnia and Herzegovina, once the necessary degree of compliance with the membership criteria is achieved. It invites the Commission to report to the Council on progress at the latest in March 2024, with a view to making a decision. North Macedonia 18. The European Union is ready to complete the opening phase of the accession negotiations with North Macedonia as soon as it has implemented its commitment to complete the constitutional changes as referred to in the Council conclusions of 18 July 2022, in line with its internal procedures. The European Council calls on North Macedonia to accelerate the completion of these changes. Western Balkans 19. Reaffirming its full and unequivocal commitment to the EU membership perspective of the Western Balkans, the European Council calls for the acceleration of their accession process. 20. The European Council takes note of the Commission’s Communication on a new growth plan for the Western Balkans, which aims to accelerate the socio-economic convergence between the Western Balkans and the European Union, based on strict conditionalities, and encourages the region to step up the pace of EU-related reforms and to advance regional economic integration through the Common Regional Market, based on EU rules and standards. 21. The European Council remains committed to advancing the gradual integration between the European Union and the region during the enlargement process itself in a reversible and merit-based manner. Reforms 22. As the Union enlarges, successful European integration requires that Union policies be fit for the future and financed in a sustainable manner, based on the values on which the Union is founded, and that the EU institutions continue to function effectively. 23. The European Council will address internal reforms at its upcoming meetings with a view to adopting by summer 2024 conclusions on a roadmap for future work.

Press material Thursday 14 December 2023

● Council of the EU   14/12/2023 21:26 | Press release | Blood, tissues and cells: Council and Parliament strike deal   The Council has reached a provisional agreement with the European Parliament on new rules aimed at improving the safety and quality of blood, tissues and cells used in healthcare and facilitating cross-border circulation of these substances in the EU. The regulation on substances of human origin (SoHO) will ensure better protection for donors and recipients, as well as for children born following medically assisted reproduction. The proposed new rules aim to strengthen the existing legal framework while also increasing flexibility in order to keep up with scientific and technical developments. Under the provisional agreement, member states may choose to apply stricter measures to protect their citizens. "One of the key lessons learned during the COVID pandemic was the vital importance of effective cross-border cooperation on matters of health care. Today’s agreement not only guarantees the highest possible standards of safety and quality for SoHOs, it also makes it easier for patients to access potentially life-saving health products across member-state borders." Mónica García Gómez, Spanish Minister for Health Substances of human origin: more than just blood, tissues and cells The text agreed upon today by the co-legislators broadens the scope of SoHO to include human breast milk and intestinal microbiota. It also aims to future-proof the EU’s legislation by covering other SoHO that may be applied to humans in the future and by allowing more flexible future updates. The proposed regulation covers a wide range of activities from registration and testing of donors, collection and processing to human application and clinical outcome monitoring of substances of human origin. A common EU framework In addition to improving quality and safety, the provisional agreement aims to increase harmonisation and facilitate cross-border exchanges and access to SoHO, including by: setting up an EU-level SoHO coordination board supporting member states in the implementation of the Regulation introducing common EU-wide procedures for the authorisation and assessment of SoHO preparations requiring member states to designate a SoHO national authority and other competent authorities to authorise SoHO preparations and ensure independent and transparent oversight of SoHO-related activities setting out additional authorisation and inspection requirements for establishments that both process and store, release, import or export substances of human origin establishing a new common IT platform, the EU SoHO platform, to register and exchange information on related activities Voluntary and unpaid donation Under the provisional agreement, donations of SoHO should be voluntary and unpaid as a matter of principle, and donors must not be provided with financial incentives to donate. Living donors may receive compensation or reimbursement as appropriate in line with national legislation. Vigilance, supply continuity and national plans to response to emergency situations The draft regulation also provides for a rapid alerts system to cope with serious incidents or reactions that are likely to pose a risk for recipients or donors. Member states should also make reasonable efforts to ensure the sufficient, adequate and resilient supply of critical SoHO in their countries, including by drawing up national emergency plans, including measures to respond to critical shortages. Next steps The provisional agreement will now have to be endorsed by the Council and the Parliament. It will then be formally adopted by both institutions after legal-linguistic revision. The regulation will enter into force following publication in the EU’s Official Journal. Background The existing directives on bloods, tissues and cells were adopted in response to the transmission of communicable diseases in the 1980s and 1990s. Their recent evaluation showed that patients, donors and children born from donated eggs, sperm or embryos were not fully protected from avoidable risks, as the current framework is not up to date with scientific development. Moreover, member states have been applying different oversight systems. This has hampered the cross-border exchange of blood, tissues and cells and has not promoted innovation in this sector. On 19 July 2022, the European Commission presented a proposal for a regulation on standards of quality and safety for substances of human origin intended for human application. The proposal builds upon lessons learnt, including from the recent Covid-19 pandemic. It addresses the risk of disease transmission by blood, tissues and cells and the need for sufficiency of supply. The Council agreed on its negotiating mandate on 25 October 2023. Negotiations with the European Parliament began on 6 November 2023 and conclude with today’s provisional agreement. Eu health policy (background information)

Press material Thursday 14 December 2023

● Council of the EU   14/12/2023 12:53 | Press release | Agreement between the Council and the European Parliament makes EU liability rules fit for the digital age and circular economy   Negotiators from the Spanish presidency and the European Parliament have reached a political agreement on a new EU law on liability for defective products. The law will update the current, decades-old, civil liability rulebook in order to better take into account that nowadays many products have digital features and that the economy is becoming increasingly circular. Digital economy Under the new liability directive, the definition of ‘product’ will be extended to digital manufacturing files and software. Free and open-source software that is developed or supplied outside the course of a commercial activity is excluded from the scope of the directive. The digital economy has led to a lot of online sales. It has therefore been decided that online platforms can also be held liable for a defective product if they present the product or otherwise enable the transaction for the sale of the product in a way that would lead an average consumer to believe that the product is provided either by the online platform itself or by a trader acting under its authority or control. Circular economy In a circular economy, products are designed to be more durable, reusable, reparable and upgradable. When a product is modified substantially, outside the original manufacturer’s control, and is made available on the market or put into service again, the new directive stipulates that the company or person that made the substantial modification should be held liable as the manufacturer of the modified product. Right to compensation The Council and Parliament also agreed that any natural person who suffers damage by a defective product is entitled to compensation. Such damages include death or personal injury, including medically recognised damage to psychological health, damage to or destruction of property, as well as destruction or irreversible corruption of data. The right to compensation will cover material losses resulting from the damage as well as non-material losses resulting from the damage, in so far as they are compensable under national law. Due to the increasing technical complexity of many products, member states must ensure that an injured person who claims compensation before a national court can request access to relevant evidence at the disposal of the manufacturer in order to be able to prove their claim. Products bought from non-EU manufacturers Consumers are increasingly buying products from manufacturers based outside the EU. However, the level of protection they receive should remain the same when those products prove to be defective. The agreement provides that when a manufacturer of a product or a component is established outside the EU, the importer of the defective product or component, the authorised representative of the manufacturer or, as a last resort, the fulfilment service provider (a company that typically takes care of the warehousing, packaging and dispatching of a product) can be held liable for damages. Burden of proof One of the directive’s objectives is to ensure that consumers will have a fair chance of getting compensation in complex cases. When a claimant (e.g. the injured consumer) is faced with excessive difficulties, in particular due to the technical or scientific complexity of the case, to prove the defectiveness of the product or the causal link between its effectiveness and the damage, a court may decide that the claimant is only required to prove the likelihood that the product was defective or that its defectiveness is a likely cause of the damage. Next steps Today’s agreement will need to be endorsed by member states’ representatives within the Council (Coreper). If approved, the text will have to go through the formal adoption process in both the Council and the European Parliament. Background The EU product liability regime was established to compensate injured persons for physical injury or damages of property that they have suffered due to a defective product (for instance an overheating hair dryer or a leaking washing machine), simply by proving that a product was defective and that the defect caused the injury or damage.

Press material Thursday 14 December 2023

● Council of the EU   14/12/2023 12:09 | Press release | Solvency II and IRRD: Council and Parliament agree on new rules for the insurance sector   The Council and the Parliament have reached a provisional agreement on amendments to the Solvency II directive, the EU's main piece of legislation in the insurance area and new rules on insurance recovery and resolution (IRRD). The new rules on Solvency II will boost the role of the insurance and reinsurance sector in providing long-term private sources of investments to European businesses. At the same time they will make the sector more resilient and prepared for future challenges in order to better protect insurance policyholders. With this dual role, the sector will contribute to the achievement of the Capital Markets Union, to the financing of the green and digital transitions and Europe’s economic recovery form the COVID-19 pandemic. The aim of the Insurance Recovery and Resolution Directive (IRRD) is to ensure that insurers and relevant authorities in the EU are better prepared in cases of significant financial distress, so that they can intervene sufficiently early and quickly in a crisis situation, including across borders. This will protect insurance policyholders, while minimising the impact on the economy, the financial system and any recourse to taxpayers’ money. Solvency II Channelling funds for businesses The provisional agreement will incentivise insurers to invest in long-term capital for the economy, notably towards the Green Deal. More resilience and stability The provisional agreement improves the long term guarantees measures making them more risk sensitive, and improving the resilience of the insurance industry, and introduces a new macroprudential dimension in the regime. At the same time, sustainability is going to have a very important role. According to the agreement, more simplified and proportionate rules will ensure flexibility and reduce the administrative burden especially on small and non-complex insurance companies. The enhanced framework will also strengthen coordination among national supervisory authorities regarding insurers’ and reinsurers’ cross-border activities. Consumer protection The Council and Parliament improved the protection of insurance policyholders, notably when buying an insurance in another country, through enhanced cooperation between supervisory authorities. Consumers will also be better informed. European Insurance and Occupational Pensions Authority (EIOPA) The provisional agreement assigns a number of new tasks to the European Insurance and Occupational Pensions Authority (EIOPA), not least in terms of elaborating various strands of technical standards, i.e. secondary legislation that will frame a more precise and harmonised implementation of the Directive in the Member States. The Council and Parliament agreed that the new rules will be complemented by delegated acts at a later stage, which will notably ensure a balanced review of the Solvency II prudential framework in terms of capital requirements. Insurance recovery and resolution (IRRD) An orderly resolution in case of insolvency The provisional agreement will introduce a new harmonised regime at European level for resolving insurers in an orderly manner. The Council and Parliament give national authorities preventive powers to intervene at an early stage. Member states will have to set up national insurance resolution authorities, either within existing authorities or as new self-standing legal entities, ensure effective cooperation across borders, and grant the European Insurance and Occupational Pensions Authority (EIOPA) a coordinating role. The provisional agreement requires (re)insurance companies and groups to draw up and submit pre-emptive recovery plans to national supervisory authorities. This requirement will apply to companies representing at least 60% of the respective (re)insurance market. Furthermore, resolution authorities will have to draw up a resolution plan for insurance and reinsurance undertakings and groups, representing at least 40% of their respective market. Small and non-complex undertakings will in principle not be subject to pre-emptive recovery planning requirements on an individual basis. Resolution authorities would be given powers to implement resolution actions in a coordinated and timely fashion. The provisional agreement provides resolution authorities with resolution tools and procedures (including write-down and conversion, solvent run-offs and transfer tools) to address failures, notably in a cross-border context. The provisional agreement adds more detailed conditions to the use of the tools and procedures. In particular, with regard to write-downs and conversions, some liabilities will be excluded from these tools to avoid adverse outcomes for policy holders. Furthermore, specific provisions on financing arrangements and a review clause in relation to Insurance Guarantee Schemes are included. The agreement ensures that the framework is proportionate and adapted to the insurance sector. Next steps The texts of the provisional agreements will now be finalised and presented to member states’ representatives and the European Parliament for approval. If approved, the Council and the Parliament will have to formally adopt the texts. Background Solvency II adopted in 2009 sets out requirements applicable to insurance and reinsurance companies in the EU with the aim to ensure the adequate protection of policyholders and beneficiaries. Solvency II has a risk-based approach that enables to assess the “overall solvency” of insurance and reinsurance undertakings through quantitative and qualitative measures. The Solvency II regulatory framework is built on a three-pillar structure: pillar I sets the quantitative requirements i.e. the assets and liabilities valuation and capital requirements pillar II sets the qualitative requirements, including governance and risk management of the undertakings and the Own Risk and solvency Assessment (ORSA) pillar III sets the supervisory reporting and public disclosure The three pillars allow to coherently understand and to manage risks across the sector. The key features of the Solvency II regulatory framework are: market consistent: assets and liabilities shall be valued at the amount for which they can be exchanged, transferred or settled in the market risk-based: Higher risks will lead to a higher capital requirement to cover for unexpected losses proportionate: regulatory requirements shall be applied in a manner that is proportionate to the nature, scale and complexity of the risks inherent to the business of the insurance and reinsurance undertakings group supervision: supervisors shall increase coordination and exchange of information in colleges of supervisors to improve cross-border supervision of insurance and reinsurance groups The existing legislative framework has been generally working well since its entry into force in 2016, but in the context of a review of Solvency II, the Commission identified areas of improvement. At the same time the disorderly failure of insurers can have a significant impact on policy holders, beneficiaries, injured parties or affected businesses. It can further lead to or amplify financial instability and impact the real economy as a whole or require exceptional recourse to public funds. There are currently no harmonised procedures at European level for resolving insurers, with substantial differences between member states leading to uneven levels of protection for policy holders and beneficiaries. On 22 September 2021, the Commission transmitted to the Council its proposal to amend the Solvency II directive and a proposal for an Insurance Recovery and Resolution Directive (IRRD), as part of comprehensive review package of Solvency II rules. Unlike for banks, the IRRD does not envisage minimum requirements for the insurance sector to have own funds or eligible liabilities to absorb potential losses nor an EU-wide single resolution fund financed by the sector. Commission proposal on Solvency II Commission proposal for a directive on a framework for the recovery and resolution of insurance and reinsurance undertakings (IRRD) Capital Markets Union (background information)