COUNCIL OF THE EUROPEAN UNION,update

 

Press material Wednesday, 12 June 2024

● Council of the EU   12/06/2024 12:47 | Press release | Retail investment package: Council agrees on its position   The Council today reached an agreement on strengthening the EU’s rules on retail investor protection. The retail investment package aims to support individual consumers who wish to invest on the EU’s capital markets, by better protecting their investments, providing them with clearer information about investment products and ensuring more transparency and disclosure. Stronger retail investments rules will give citizens the tools they need to make sound investment decisions on the EU’s capital markets at every step of their way. We need to get savings flowing into innovative European companies, including the small and medium-sized enterprises (SMEs) that are the backbone of Europe’s economy and that need to attract more private investment. These rules will contribute to deepening the capital markets union by increasing consumers’ trust in capital markets and channelling private funding into our economy. Vincent Van Peteghem, Belgian Minister of Finance The retail investment package aims to offer retail investors the same level of information, treatment and protection regardless of which investment products, marketing and distribution channels they use. To this end, the package aims to modernise and simplify investor protection rules so that they are coherent across the different sectors and EU laws. With this agreement, the Council is ready to engage in negotiations with the European Parliament on the final shape of the legislation. Main changes proposed by the Council Inducements In its position, the Council decided to remove the proposed ban on ’inducements’ (often referred to as “commissions” or “retrocession fees”) received for execution-only sales (where no advice is provided to the investor). A ban is already in place for independent investment advice and portfolio management with limited exceptions. At the same time, in order to reinforce the prevention of potential conflicts of interest, the Council strengthened the safeguards accompanying all inducements with: an inducement test that applies where there is no ban on inducements a new uniform test specifying the duty for advisors to act in the best interest of the client enhanced transparency and disclosure about what payments are considered as inducements, their costs and their impact on investment returns In addition, the Council further reinforced the safeguards by introducing ‘overarching principles’ to be respected when paying or receiving inducements. These overarching principles are not part of the inducement test as such, but firms should respect those principles at all times when paying or receiving inducements to or from a third party, and be able to demonstrate this to national competent authorities. According to these overarching principles, inducements should not incentivise firms to recommend particular products over others, they should not be disproportionate to the value offered and inducements paid to or accepted and retained by entities belonging to the same group should be treated in the same way as others. Member states that already have inducement bans in place, that would decide to introduce such bans in the future or that apply or would decide to apply stricter requirements in relation to inducements as provided for in EU legislation, would be allowed to do so, according to the Council mandate. The Council agreed to review the provisions on inducements five years after the entry into force. Value for Money The package introduces a new concept of ‘Value for Money’ to ensure that investment products are offered to retail clients only if they offer good value for money. Under the new rules, manufacturers and distributors would assess whether costs and charges related to a product are justified and proportionate with regard to their performance, other benefits and characteristics, their objectives and, if relevant, their strategy. The Council agreed that the European supervisory authorities European Securities and Markets Authority (ESMA) and European Insurance and Occupational Pensions Authority (EIOPA) would develop Union supervisory benchmarks. However, instead of mandatory benchmarks integrated in manufacturer’s and distributors’ product governance process, they would be a supervisory tool, developed in a way that helps national competent authorities detect investments products that fail to offer value for money. Since benchmarks used as supervisory tools would not be directly binding on manufacturers and distributors, the Council also agreed to strengthen their product governance process with a peer group system. Manufacturers and distributors would compare their investment products to a peer group of other similar investment products in the EU to establish whether the investment product offers value for money. The comparison would be based on information contained in databases managed by ESMA and EIOPA. The Council also proposes to allow member states to provide for a possibility for financial products manufacturers or distributors to opt, for the purpose of the market comparison in its value-for-money assessment processes, to compare their products with the relevant Union supervisory benchmark, instead of a peer group. Finally, the negotiating mandate would also allow those member states whose national competent authorities have developed, before 1 July 2024, national benchmarks on costs and performance to detect outliers, to decide to continue to use those national benchmarks but only in relation to insurance-based investment products. According to the Council position, the value for money framework would be reviewed seven years after the start of application of the framework. Next steps The European Parliament agreed on its negotiating mandate on the Regulation amending PRIIPs on 11 April 2024 and on the Omnibus Directive on 23 April 2024. Today’s agreement paves the way to starting interinstitutional negotiations. Background The European Commission submitted its proposal for a retail investment package on 24 May 2023 as part of measures that intend to deepen the capital markets union (CMU), which aims to complete the single market for capital. The package includes two legislative proposals: a proposal for an Omnibus Directive amending the Markets in financial instruments Directive (MIFID), the Insurance distribution Directive (IDD), Solvency II, the Undertakings for Collective Investment in Transferable Securities (UCITS) Directive and Alternative Investment Fund Managers Directive (AIFMD) a proposal for a Regulation amending the PRIIPs (Packaged Retail and Insurance-based Investment Products) Regulation. For the moment investor protection and information rules are set out across sector specific laws (like the Markets in financial instruments Directive (MIFID), Solvency II and the Alternative Investment Fund Managers Directive (AIFMD)) among others). The package sets out to impose the same transparency and information requirements across the board of EU legislation to avoid overlaps. At the same time it will adapt the legislation to the digital environment and new preferences. This covers among other things adapting disclosure rules, ensuring that investment products bring real value for money to retail investors, address potential conflicts of interest due to inducements, addressing misleading marketing, preserving high standards of qualifications for professionals, and enhancing supervisory cooperation to ensure that rules are properly applied across the EU. On the other hand, the package will adapt provisions on regulatory disclosures and make targeted changes to adapt the Key Information Documents (KIDs – documents that provide details on the investment products and their performance). More disclosure and clearer KIDs will help private investors better understand the product they are buying and compare it with other products by making key information on costs and risks clearly visible in the document they receive when they purchase certain investment products. In addition, it will be easier to access digitally and offer more legal clarity. Council negotiating mandate on the retail investment package - Omnibus Directive Council negotiating mandate on the retail investment package - PRIIPS Regulation What the EU is doing to deepen its capital markets (background information)

Meetings Wednesday, 12 June 2024

● Council of the EU   12/06/2024 16:48 | Meetings | Transport, Telecommunications and Energy Council (Transport), 18 June 2024   Background brief - Transport, Telecommunications and Energy Council (Transport), 18 June 2024

Meetings Wednesday, 12 June 2024

● Council of the EU   12/06/2024 15:53 | Meetings | Agenda highlights - Transport, Telecommunications and Energy Council (Transport), 18 June 2024   The Council will adopt its position (general approach) on the new regulation on the European Maritime Safety Agency (EMSA), the revised directive on river information services (RIS) and the new regulation on the use of railway infrastructure capacity in the single European railway area. Ministers will also approve conclusions on the European Court of Auditors’ special report on the EU’s efforts towards achieving its road safety objectives, and take note of progress reports on the combined transport directive, the directive on weights and dimensions for certain road vehicles, the regulation on passenger rights in the context of multimodal journeys and the directive on the EU-wide effect of certain driving disqualifications. Finally, over an informal lunch, ministers will hold a policy debate on the strategic priorities for transport during the next legislative mandate.

Press material Wednesday, 12 June 2024

● Council of the EU   12/06/2024 17:03 | Media advisory | Media advisory - Justice and Home Affairs Council of 13-14 June 2024   Indicative programme All times are approximate and subject to change Chairs: Annelies Verlinden, Belgian Minister of the Interior, Institutional Reform and Democratic Renewal Nicole de Moor, Belgian State Secretary for Asylum and Migration Paul Van Tigchelt, Belgian Deputy Prime Minister and Minister of Justice and the North Sea Thursday, 13 June - HOME AFFAIRS +/- 08.00 Arrivals (live streaming) +/- 08.15 Doorstep by Annelies Verlinden, Belgian Minister of the Interior (live streaming) +/- 08.15 Doorstep by Nicole de Moor, Belgian State Secretary for Asylum and Migration (live streaming) 09.00 Meeting of the Schengen Mixed Committee - Schengen Declaration - Overall state of the Schengen area (a) Commission State of Schengen Report 2024 (b) Priorities for the Schengen Council Cycle 2024-2025 - Implementation of interoperability - Any other business - The future of EU visa policy +/- 11.45 Home Affairs Approval of "A" items: Legislative list (+/- 11.50 public session) Non-legislative list Pact on migration and asylum: implementation (a) Presidency follow-up (b) Common implementation plan for the Pact +/- 13.30 Working lunch: Strengthening preparedness and crisis response at EU level +/- 15.15 Countering security challenges (a) Assessment by the Intelligence Advisory Board (b) Preventing and countering violent extremism and terrorism The fight against drug trafficking and organised crime (a) Report by the Presidency State of play (b) Conclusions on mapping the most threatening criminal networks Access to data for effective law enforcement: presentation of the recommendations of the High-Level Group Consequences of Russia's aggression against Ukraine (a) Internal security (b) Extending temporary protection for Ukrainian refugees Regulation laying down rules to prevent and combat child sexual abuse (+/- 17.40 public session) Any other business: Current legislative proposals (+/- 17.55 public session) Non-paper on a New SecEUrity Package EU cooperation - Middle East and North Africa countries Ministerial meeting between the United States and the European Union on justice and home affairs (Brussels, 20-21 June 2024) Work programme of the incoming Presidency At the end of the meeting press conference (+/- 18.30 in the ECCL Luxembourg press room) in live streaming. Friday, 14 June - JUSTICE +/- 08.00 Arrivals (live streaming) +/- 08.15 Doorstep by Paul Van Tigchelt, Belgian Minister of Justice (live streaming) 9.00 Continuation of the Justice and Home Affairs Council The fight against drug trafficking and organised crime: report by the Presidency Directive on combating corruption (+/- 09.30 public session) Directive on combating the sexual abuse and sexual exploitation of children (+/- 09.40 public session) Directive harmonising certain aspects of insolvency law (+/- 11.10 public session) Regulation on establishing and recognising parenthood in cross-border situations (+/- 11.25 public session) Any other business: Current legislative proposals (+/- 12.55 public session) Conclusions on enhancing and protecting free, open and informed democratic debate +/- 13.30 Working lunch: Russia’s war of aggression against Ukraine: fight against impunity +/- 15.15 European Public Prosecutor’s Office (EPPO) Implementation of the Istanbul Convention Any other business: EU-US negotiations on an e-evidence agreement 2024 EU Justice Scoreboard Access to data for effective law enforcement: presentation of the recommendations of the High-Level Group Ministerial meeting between the United States and the European Union on justice and home affairs (Brussels, 20-21 June 2024) Work programme of the incoming Presidency At the end of the meeting press conference (+/- 16.30 in the ECCL Luxembourg press room) in live streaming. Meeting page - Justice and Home Affairs Council (Home affairs), 13 June 2024 Meeting page - Justice and Home Affairs Council (Justice), 14 June 2024

Press material Wednesday, 12 June 2024

● Council of the EU   12/06/2024 10:10 | Media advisory | Press briefing - Environment Council of 17 June 2024   The press briefing ahead of the Environment Council will take place on Friday, 14 June 2024 at 15.00. 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 remotely or in person at the Europa Building press room. To attend the event remotely, please use this link to register and have the possibility to ask questions. Those who already registered for previous press events of the Environment Council do not need to do it again. Deadline for registration: Friday, 14 June 2024, 13.30  Further instructions will be sent to all registered participants after the deadline.

Press material Wednesday, 12 June 2024

● Council of the EU   12/06/2024 10:26 | Media advisory | Press briefing - Transport, Telecommunications and Energy Council (Transport) of 18 June 2024   The press briefing ahead of the Transport, Telecommunications and Energy Council (Transport) will take place on Thursday, 13 June at 9.30. 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 remotely or in person at the Europa Building press room. To attend the event remotely, please use this link to register and have the possibility to ask questions. Those who already registered for the previous press events of Transport, Telecommunications and Energy Council (Transport) do not need to do it again. Deadline for registration: Thursday, 13 June 2024, 8.30 Further instructions will be sent to all registered participants shortly after the deadline.

Press material Tuesday, 11 June 2024

● European Council   11/06/2024 18:23 | Speech | Speech by President Charles Michel at the Gaza aid conference in Jordan   First let me thank you for convening this important conference here in Jordan. A lot has happened since the Cairo Peace Summit last October, organised by President Al-Sisi. That is why today’s conference is so vital. The European Union was born from the ashes of World War II, a horrific humanitarian disaster. Since then, we have built our Union on the principles of human dignity, international cooperation, and international humanitarian law. Each civilian life matters, always and everywhere. That is why, from day one, we have condemned Hamas’ brutal attack against the people of Israel last October. We also condemn the loss of each civilian life and the horrendous suffering and humanitarian disaster in Gaza. The EU has three key priorities: ending the war, more humanitarian assistance and a political process. First, ending the war in Gaza and ensuring the protection of all civilians. Every day without a ceasefire is another day of blood and death. We call for an immediate ceasefire, the unconditional release of all hostages, and the provision of humanitarian assistance. Since March, we have urged the Israeli government not to undertake a ground operation in Rafah. The orders of the International Court of Justice must be respected. We strongly support the 3-phased approach — starting with a ceasefire and the release of hostages as endorsed by the UN Security Council yesterday. Second, we must address the catastrophic humanitarian situation in Gaza and the magnitude of the disaster. According to sources, over 37,000 Palestinians have been killed and nearly 85,000 injured. 75% of the population in Gaza is internally displaced, with nowhere safe to go. This war has also been a nightmare for the children of Gaza. 17,000 of them are separated from their families and many are orphans. Many have had limbs amputated, often without proper medical conditions. Each of these numbers represents a human life.  And each is absolutely heartbreaking. And all this suffering is happening just a couple of hundred kilometres from here. We cannot, and we do not, forget the West Bank and we call for an immediate halt to violence, there and in East Jerusalem. I would like to thank key partners, especially Jordan and Egypt, for their leadership in providing humanitarian relief, as well as the United Nations. Since the outbreak of the crisis, the EU together with its member states have provided nearly 800 million euros in humanitarian aid for Palestinians. And we have coordinated the delivery of over 2,500 tonnes of in-kind assistance. I would like to commend the role played by our EU Commissioner for Crisis Management Janez Lenarčič, who is here with us today, for his excellent work. UNRWA is not a terrorist organisation. And we do not accept any attempt to label it as such. We will continue to support them, together with our member states. We also pay tribute to all aid workers who risk their lives to help others. Many have paid the ultimate price. Our third priority is about the future. A more peaceful future. We have no choice but to look beyond this darkness to an urgent settlement based on the two-state solution. And there is one lesson learned: security without peace is not security. Peace is the best and lasting security guarantee for both Israelis and Palestinians. We have consistently supported the two-state solution. We also support the Palestinian Authority and its reforms. This will bolster its legitimacy and credibility to deliver for its people. That is why we do not accept that Israel withhold crucial clearance revenues, which undermines the Palestinian Authority. The EU has built a Union founded on forgiveness, reconciliation, and human dignity.  We believe in International Humanitarian Law and international justice. We will always be on the side of humanity, not on the side of hatred. That is why we believe in the words of Eleanor Roosevelt. She said: “It isn’t enough to talk about peace. One must believe in it. And it isn’t enough to believe in it. One must work at it.” Humanity has no borders. It has no religion and no skin colour.  It is universal. Let’s work together to build a safe and peaceful future for this region and its children. You can count on the EU.

Meetings Tuesday, 11 June 2024

● Council of the EU   11/06/2024 16:28 | Meetings | Agenda highlights - Environment Council, 17 June 2024   EU environment ministers will meet in Luxembourg to reach a general approach on the green claims directive, the soil monitoring directive and the revised waste framework directive.