Insights | EU Insight, 12 June 2020

12.06.2020., Zagreb – U Nacionalnoj i sveucilisnoj knjiznici odrzana je videokonferencija Tomislava Dulibica s ministrima drzava clanica Europske unije. Photo: Patrik Macek/PIXSELL/EU2020

15/06/2020

EU Insight, 12 June 2020

FINANCE MINISTERS DISCUSS COMMISSION’S PROPOSAL ON RECOVERY PLAN

Finance Ministers held a first exchange of views on the Commission’s proposal for the recovery plan, which was released on 27 May. Overall, the discussion, which focused on the Recovery and Resilience Facility, showed that a broad majority of Member States see the Commission’s proposal on the recovery plan as a good basis for discussion going forward. However, there seems to be diverging views on issues such as the split between loans and grants, the allocation criteria and the issue of conditionality attached to financial aid. Negotiations will continue next week, including for the first time among EU leaders.

COMMISSION RECOMMENDS PARTIAL LIFTING OF EU EXTERNAL BORDERS AFTER 30 JUNE

Against a backdrop of imposed controls at the EU’s internal and external borders to prevent the spread of COVID-19, the Commission issued a recommendation to Schengen Member States and Schengen Associated States to lift internal borders controls by 15 June. In parallel, the Commission proposed prolonging the temporary restriction on non-essential travel into the EU until 30 June. Following 30 June, partial and gradual lifting of the restrictions for third countries selected together with the Member States is to be implemented. The decision on whether and how to lift restrictions will be based on objective criteria including the health situation in third countries.

MAJOR REFORM OF ROAD TRANSPORT SECTOR APPROVED BY PARLIAMENT COMMITTEE

The European Parliament’s Transport committee approved the compromise reached in December 2019 with EU ministers on a reform of road transport sector. The revised rules regulate drivers’ rest times and introduce a framework to ensure better enforcement of cabotage rules. The rules also aim to prevent differing national approaches on the posting of drivers, and to ensure fair remuneration for drivers. As a next step, the European Parliament will vote on the reform during the next plenary session in July 2020. The rules then will apply in Member States 18 months after the entry into force of the legal act.

CAPITAL MARKETS UNION HIGH LEVEL FORUM ISSUES RECOMMENDATIONS FOR COMMISSION

The European Commission’s High-Level Forum on Capital Market Union (CMU) published its final report, outlining a set of 17 recommendations targeted at improving the efficiency and integration of EU capital markets. Overall, the report highlights the need to rapidly fix existing legislation to create a more conducive regulatory environment for corporate access to equity financing, retail investor participation, cross-border investment, and efficient market infrastructure. In particular, the Forum calls on the Commission to swiftly initiate the legislative process – within the coming year – to create momentum behind this new CMU 2.0. The Commission plans to issue its new CMU Action Plan in Q4 2020.

COMMISSION PUBLISHES DRAFT SUSTAINABILITY-RELATED DELEGATED ACTS

The Commission published six sustainability-related draft Delegated Acts (DA) for a four-week public consultation. They concern: the UCITS Directive, MiFID II (product governance and organisational requirements), AIFMD, the Solvency II Directive and the Insurance Distribution Directive. Originally foreseen in the 2018 FinTech Action Plan, the DAs are now also intended to contribute to the Commission’s more recent European Green Deal objective to move capital flows towards a greener economy. Once the consultation closes, they will be subject to a scrutiny period by the co-legislators, following which they are expected to be adopted.

COMING UP NEXT WEEK

  • 15 June: EU-UK high level conference.
  • 15 June: Video conference of foreign affairs ministers. On the agenda: transatlantic relations, current affairs.
  • 15 June: Video conference of energy ministers. On the agenda: economic recovery from COVID-19, innovative technological solutions in the energy sector.
  • 15 June: Video conference of ministers responsible for cohesion policy. On the agenda: EU’s recovery from the COVID-19 outbreak.
  • 16 June: Video conference of foreign affairs ministers (defence). On the agenda: EU security and defence agenda.
  • 16 June: Video conference of ministers for European affairs. On the agenda: Recovery fund to respond to the COVID-19 crisis, new EU long-term budget.
  • 17-19 June: European Parliament Plenary session. On the agenda: Protecting EU strategic sectors from foreign takeovers, tourism and transport in 2020 and beyond, foreign policy consequences of COVID-19.
  • 18 June: Eastern Partnership leaders’ video conference. On the agenda: strategic objectives, COVID-19, long-term policy objectives.
  • 19 June: Video conference of the members of the European Council. On the agenda: Recovery fund to respond to the COVID-19 crisis, new EU long-term budget.

Karl Isaksson, Managing Partner Brussels, Kreab