EUROGROUP,COUNCIL OF THE EU,update

 

Press material Wednesday, 19 June 2024

● Council of the EU   19/06/2024 15:33 | Press release | Migrant smuggling: Enhanced role of Europol in fighting migrant smuggling   EU member state representatives (Coreper) agreed on the Council’s negotiating mandate for a regulation strenghthening Europol’s role in supporting member states in their fight against migrant smuggling and trafficking in human beings.  The draft regulation changes the current Europol regulation and strengthens the mandate of Europol in order to more actively support member states in tackling these crimes, and introduces increased information sharing requirements to improve national and EU-level cooperation. Europol is the EU agency that assists national law enforcement bodies in fighting organised crime and terrorism. “ Migrant smuggling is a billion euro crime business at the expense of the weakest. We want to put a stop to the smugglers and Europol can play an important role in this. ” —  Annelies Verlinden, Belgian Minister of the Interior Main elements of Council position Europol will be able to play a more significant role in supporting member states through the processing of biometric data to close the blind spots that criminals seek to exploit by hiding behind false and multiple identities.  In order to regulate current practice, the possibility is now foreseen for the EU agency, by request of member states, to deploy Europol staff or seconded national experts on the territory of member states and in third countries to provide analytical, operational, technical and forensic support. This operational support may for instance take place in the context of border management. In order to allow Europol to play its role in fighting migrant smuggling and increase information sharing, member states law enforcement immigration liaison officers could be connected to SIENA, Europol’s secure communication platform for law enforcement authorities. In order to ensure a closer cooperation and better exchange of information between EU crime-fighting agencies, Frontex – the EU’s border agency – and Eurojust – the European Union agency for criminal justice cooperation – will be invited to permanently second liaison officers to Europol’s European Migrant Smuggling Centre (EMSC). Europol will also strenghthen its support for the European Multidisciplinary Platform Against Criminal Threats (EMPACT), the key EU tool for fighting serious and organised crime.  The Council also decided that Europol should receive additional financial and human resources to carry out its tasks.     Next steps Today’s negotiating mandate will allow the Council to engage with the European Parliament to agree on a final legal text, as soon as Parliament has decided on its position. Background On 28 November 2023, the European Commission proposed a new legislative package to prevent and fight migrant smuggling. In addition to the regulation to reinforce Europol’s role – on which member states reached agreement today – the Commission also proposed a criminal justice law to prevent and counter migrant smuggling.  According to Europol, more than 90% of the irregular migrants who reach the EU make use of the services of smugglers, and the UN estimates that smuggling networks rake in profits of between €4.7 and €6 billion annually.   Fighting migrant smuggling and human trafficking (background information)

Press material Wednesday, 19 June 2024

● Council of the EU   19/06/2024 13:28 | Press release | Council agrees its position on simpler financial reporting requirements   The Council today reached an agreement on a proposal to simplify certain reporting requirements in the field of financial services and investment support. The proposal updates existing rules on data sharing between the European Supervisory authorities (ESAs) and other financial sector authorities with the aim to reduce administrative burden for authorities in the financial sector. “ Financial authorities have reporting requirements under many pieces of legislation, which is needed for European market supervisory authorities to keep an eye on the good functioning of the EU’s financial markets. This regulation aims to rationalise reporting requirements by increasing efficiency in data sharing between EU supervisory authorities and easing administrative burden for both national administrations and financial sector entities. ” —  Vincent Van Peteghem, Belgian minister of finance With this negotiating mandate, the Council is ready to engage in negotiations with the European Parliament on the final shape of the legislation. Streamlined reporting requirements The main aim of the proposal is to facilitate data sharing between European Supervisory Authorities (ESAs) and other financial sector authorities, and restrain new reporting requirements. This aims to promote a more efficient collection of data and avoid double reporting with a direct benefit to European and national authorities and an indirect benefit for those financial sector entities having to provide information. The proposal also aims to reduce the frequency of reporting for InvestEU implementing partners from every 6 months to once a year for most elements of the reporting requirements. This will lower the administrative burden on implementing partners, and therefore indirectly on businesses and SMEs. Main changes brought by the Council In its mandate, the Council supports the underlying objectives of the proposal. It agrees with the measures to streamline reporting and data sharing for public sector authorities. Regarding the scope, the Council clarified that the exchange of information should lie with the ESAs and the European Systemic Risk Board (ESRB), which should share the information received from the national competent authorities with other ESAs and Union and national authorities and that it should concern only data stemming from reporting requirements under Union not national law. The proposed peer reviews on reporting requirements should also be based on data collections stemming from EU law only. Whereas the Council agreed to include the European Central Bank’s Single Supervisory Mechanism and the Single Resolution Board in the set of authorities that are allowed to issue a request for data sharing, it decided to leave the newly created Anti-Money Laundering and Countering the Financing of Terrorism Authority (AMLA) out of the scope of the regulation at this stage and to reevaluate its inclusion within 2 years after the entry into force of the regulation. The Council agreed that authorities may decide at their own discretion to grant access to information to the Commission and to third parties such as financial institutions, researchers, and other entities with a legitimate interest, provided that specific conditions are met to safeguard this data. Next steps The European Parliament adopted its negotiating mandate on 12 March 2024. Today’s agreement paves the way to interinstitutional negotiations in view of reaching an agreement on the final shape of the text. Once an agreement is reached, it would have to be formally adopted by both institutions before becoming law. Background The Commission submitted a proposal on 17 October 2023 for a Regulation amending Regulations (EU) No 1092/2010, (EU) No 1093/2010, (EU) No 1094/2010, (EU) No 1095/2010 and (EU) 2021/523 as regards certain reporting requirements in the fields of financial services and investment support. Council negotiating mandate on reporting requirements

Meetings Wednesday, 19 June 2024

● Council of the EU   19/06/2024 09:11 | Meetings | Agriculture and Fisheries Council, 24 June 2024   Background brief - Agriculture and Fisheries Council, 24 June 2024

Press material Wednesday, 19 June 2024

● Council of the EU   19/06/2024 10:15 | Media advisory | Press briefing ahead of the Foreign Affairs Council of 24 June 2024   The press briefing ahead of the Foreign Affairs Council of 24 June 2024 will take place on Friday, 21 June 2024 at 14.30. This briefing will be "off the record" and will be given by a senior EEAS official 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 Foreign Affairs Council do not need to do it again. Deadline for registration: Friday, 21 June 2024, 13.30 Further instructions will be sent to all registered participants shortly after the deadline.

Press material Wednesday, 19 June 2024

● Council of the EU   19/06/2024 13:43 | Press release | Bank crisis management and deposit insurance framework: Council agrees on its position   The Council today agreed on a negotiating mandate on the review of the crisis management and deposit insurance (CMDI) framework for banks. The review includes a comprehensive set of measures designed to strengthen the existing EU crisis management framework, and in particular to improve the resolution process for small and medium-sized banks. It also constitutes an immediate step towards the further completion of the Banking Union, as agreed by the Eurogroup in June 2022.   “ With this mandate, we are taking a significant step towards a more integrated and effective crisis management framework that will reinforce our ability to address the challenges posed by the resolution of small and medium-size banks.  The revised CMDI framework will bring significant benefits in terms of strengthened financial stability, better protection of deposits and taxpayers’ money, and a level playing field between smaller and larger banks in the EU, all of which are key to the deepening of the Banking Union. This constitutes an important success for the Belgian Presidency, on a complicated and politically sensitive file. ” —  Vincent Van Peteghem, Belgian minister of finance With this agreement, the Council is ready to engage in negotiations with the European Parliament on the final shape of the legislation.  Public interest assessment A resolution procedure can only be initiated if it is considered to be in the public interest. The CMDI framework clarifies how the public interest assessment is to be conducted by resolution authorities. In particular, the reform aims to extend the scope of resolution to some small and medium-sized banks by broadening this public interest criterion.  To reach this objective, the Council clarifies in its mandate that the public interest assessment should be conducted in two stages. First, the resolution authority must determine whether any of the resolution objectives would be threatened in case of insolvency.  If this is the case, a normal insolvency procedure should only be possible if it achieves the resolution objectives more effectively than a resolution procedure. If a normal insolvency procedure is not more efficient, a resolution procedure must be initiated. Finally, the Council mandate also provides that when assessing disruptions of the real economy, the resolution authority should focus on both the national and regional levels, reflecting the potential footprint of some small and medium-sized banks.  ‘Bridging the gap’ One of the main objectives of the CMDI reform is to facilitate the resolution of failing banks in the EU, thereby minimising contagion risks or spillovers to the real economy. The review of the CMDI framework aims to make the framework more robust and more credible, in particular by addressing certain funding issues potentially faced by some small and medium-size banks in resolution.  The first line of defence in resolution remains the minimum requirement for own funds and eligible liabilities (‘MREL’) that banks are required to maintain to ensure that their losses are absorbed and their recapitalisation needs are first provided by their own shareholders and creditors.  Yet, the CMDI framework aims to facilitate the recourse to industry-funded safety nets (namely the national Deposit Guarantee Schemes or (DGSs) together with, in the Banking Union, the Single Resolution Fund or (SRF), or national resolution funds outside the Banking Union) as an additional source of funding to finance transfer strategies in resolution proceedings leading to a market exit.  This is referred to as using DGS funds to 'bridge the gap' allowing to subsequently unlock an intervention of the SRF. Compared to the Commission proposal on bridging the gap, the Council’s mandate provides:  additional safeguards on the use of DGS or SRF funds to avoid unintended consequences or moral hazard, ensuring in particular that bridging the gap does not replace loss absorption by the failing bank's shareholders and creditors an adequate burden sharing between the DGS and the SRF, where the latter is tapped within the Banking Union, subjecting their interventions to limits and to a ‘pecking order’, in particular giving the SRF priority for repayment purposes stricter requirements and limitations on the use of bridging the gap for banks with a balance sheet size between € 30 billion and 80 billion, which will furthermore only be available during the 10-year period after the entry into force of CMDI  Hierarchy of claims The Council’s mandate maintains the principle that deposits should benefit from a general preference, increasing the protection from which all depositors benefit in insolvency ranking.  However, it removes the Commission’s proposed ‘equal ranking’ that would give all depositors the same preferred ranking in a bank insolvency. It reintroduces a ‘super-preference status’ for DGS-protected depositors and, by extension, to the DGS in the event of subrogation.  At the same time, as the reintroduction of the super preference of the DGS limits their possibility to intervene in resolution, the Council agreed to harmonise and broaden the 'least cost test'.  This broadened test will have to be carried out before the resources of the DGS can be used outside a pure payout in insolvency, meaning to finance preventive measures before a bank is resolved, alternative measures in support of a liquidation or to support a resolution procedure.  It ensures that any use of DGS funds cannot exceed the hypothetical cost of reimbursing covered depositors in the event of liquidation, subject to certain adjustments that factor in indirect costs and to an 85% correction factor. Preventive and alternative measures  In its mandate, the Council clarifies the distinction between preventive measures to prevent a bank’s failure and alternative measures. It revises the process flow for preventive measures clarifying the involvement of each authority.  In accordance with the Eurogroup statement of June 2022, the Council mandate also introduces specific provisions to preserve a functioning framework for institutional protection schemes (“IPSs”) to implement preventive measures.  Extraordinary public financial support  The Council’s mandate clarifies what forms of public financial support for failing banks would be permissible in extraordinary circumstances and provides for a workable process for their application. SRB governance The Council’s mandate confirms the role of the executive session of the Single Resolution Board (‘SRB’) in the adoption of SRB’s legal instruments setting out resolution practices and resolution planning methodologies and clarifies the role of its plenary session in this process. Here, the objective is to promote an inclusive Single Resolution Mechanism, recognising that national resolution authorities may have legitimate concerns when resolution practices and methodologies are established by the SRB.   Next steps The European Parliament adopted its position in first reading on 24 April 2024. Today’s agreement paves the way to interinstitutional negotiations in view of reaching an agreement in early second reading. Once an agreement is reached, it would have to be formally adopted before becoming law.    Background On 18 April, the Commission adopted the set of legislative proposals to review the crisis management and deposit insurance (CMDI) framework. The review is composed of:  a proposal for a directive amending the bank recovery and resolution directive a proposal for a directive amending the deposit guarantee schemes directive  a proposal for a regulation on a proposal for a the single resolution mechanism regulation targeted amendments to the daisy chain act The targeted amendments to the daisy chain act were adopted on 26 March 2024. Council mandate for negotiations for a directive on early intervention measures, conditions for resolution and financing of resolution action Council mandate for negotiations for a regulation on early intervention measures, conditions for resolution and funding of resolution action Council mandate for negotiations on the scope of deposit protection, use of deposit guarantee schemes funds, cross-border cooperation, and transparency

Meetings Wednesday, 19 June 2024

● Eurogroup   19/06/2024 14:47 | Meetings | Agenda highlights - Eurogroup, 20 June 2024   The Eurogroup will exchange views on the international role of the euro, based on the European Central Bank's annual review. The IMF will present its review of euro area policies, with a statement to follow. Additionally, ministers will continue discussing euro area competitiveness, focusing on industrial policy. Kristalina Georgieva, the IMF managing director, will be attending the meeting.

Press material Wednesday, 19 June 2024

● Council of the EU   19/06/2024 15:59 | Media advisory | Media advisory - Employment, Social Policy, Health and Consumer Affairs Council of 20-21 June 2024   Indicative programme All times are approximate and subject to change Place: ECCL building, Luxembourg Chairs: Pierre-Yves Dermagne, Deputy Prime Minister and Minister of the Economy and Employment Marie-Colline Leroy, State Secretary for Gender Equality, Equal Opportunities and Diversity, added to the Minister of Mobility Frank Vandenbroucke, Deputy Prime Minister and Minister of Social Affairs and Public Health Employment and social policy (Thursday 20 June) from 08.30 Arrivals (live streaming) 09.20 Doorstep by Marie-Colline Leroy (live streaming) 10.00 Doorstep by Frank Vandenbroucke (live streaming) 10.00 Beginning of the Employment, Social Policy, Health and Consumer Affairs Council Adoption of the agenda Approval of A items: Non-legislative list Directive on implementing the principle of equal treatment (Article 19) (+/- 10.10 public session) Any other business: Presidency events (+/- 10.30 public session) Key conclusions on the 2024 Pension Adequacy Report of the Social Protection Committee and the European Commission (+/- 10.35 public session) Conclusions on pension adequacy (+/- 10.35 public session) 2024 European Semester (+/- 10.50 public session) (a) Spring package (b) Social convergence within the European Union: opinion of the Employment Committee and the Social Protection Committee Conclusions on the role of social investment and reforms for resilient economies (+/- 11.10 public session) Voluntary guiding principles for EU member states developed by the Employment Committee and the Social Protection Committee to assess the economic effects of social investment and reforms (+/- 11.10 public session) Implementation of the recommendation on the integration of the long-term unemployed into the labour market: key messages from the Employment Committee (+/- 11.30 public session) Revision of the European Works Councils directive (+/- 11.40 public session) Traineeships’ directive (+/- 12.10 public session) Council recommendation on a reinforced quality framework for traineeships (+/- 12.10 public session) La Hulpe Declaration on the Future of the European Pillar of Social Rights (+/- 12.25 public session) Social dimension of the internal market (+/- 14.30 public session) Any other business: Current legislative proposals (+/- 16.10 public session) Regulation establishing an EU Talent Pool Labour and skills shortages in the EU: an action plan (+/- 16.10 public session) European Year of Skills (+/- 16.10 public session) Presidency events (+/- 16.10 public session) Work programme of the incoming Presidency At the end of the meeting press conference (+/- 17.15 in the ECCL press room, Luxembourg) in live streaming. Health (Friday 21 June) from 09.00 Arrivals (live streaming) 09.15 Doorstep by Frank Vandenbroucke (live streaming) 10.00 Continuation of the Employment, Social Policy, Health and Consumer Affairs Council Pharmaceutical package: (+/- 10.05 public session) (a) Directive on the Union code relating to medicinal products for human use (b) Regulation laying down Union procedures for the authorisation and supervision of medicinal products for human use and establishing rules governing the European Medicines Agency Council conclusions on the future of the European Health Union (+/- 11.40 public session) Council recommendation on vaccine-preventable cancers (+/- 11.50 public session) Any other business: A call for action at EU level to protect young people from the harm caused by novel tobacco and nicotine products (+/- 12.00 public session) Strengthening efforts to protect children from direct marketing and sale of tobacco and nicotine products, especially on digital platforms (+/- 12.15 public session) The health crisis in the strip of Gaza: state of play and call for action (+/- 12.25 public session) A call for action at the EU and national level to prioritise efforts and investment towards ending HIV epidemic in Europe until 2030, ensuring the implementation of appropriate political actions in the next crucial 6 years to come (+/- 12.35 public session) Framework Convention on Tobacco Control (FCTC): tenth session of the Conference of the Parties (COP 10) (+/- 12.45 public session) Presidency conferences (+/- 12.55 public session) Impact of excessive national stockpiling strategies on the EU solidarity Negotiations for an international agreement on pandemic prevention, preparedness and response, as well as complementary amendments to the International Health Regulations (2005) Work programme of the incoming Presidency At the end of the meeting press conference (+/- 15.40 in the ECCL building press room, Luxembourg) in live streaming. Arrangements for the press conferences The press conferences 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 ECCL building press room, Luxembourg. 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 Employment, Social Policy, Health and Consumer Affairs Council do not need to do it again. Deadline for registration: Thursday, 20 June 2024, 16.15 Further instructions will be sent to all registered participants shortly after the deadline. Videos and photos from the event Meeting page - Employment, Social Policy, Health and Consumer Affairs Council (Social policy), 20 June 2024 Meeting page - Employment, Social Policy, Health and Consumer Affairs Council (Health), 21 June 2024