EU Insight, 19 June 2020

EUROPEAN LEADERS MEETS TO DISCUSS LONG-TERM BUDGET AND RECOVERY FUND

Today, EU leaders attended a European Council meeting via videoconference to discuss the long-term budget and Recovery Fund proposals. Following the meeting, President of the European Council, Charles Michel, said that there is an emerging consensus amongst Member States on the proposals, but several topics remain to be discussed. President Michel added that he is committed to start immediate negotiations with Member States, and that he intends to host a physical summit in Brussels in mid-July. President of the European Commission, Ursula von der Leyen, informed that EU leaders unanimously agreed that the severity of COVID-19 justifies an ambitious common response built on solidarity, investments, and reforms.

EU AND UK LEADERS CALL FOR NEW MOMENTUM TO REACH AGREEMENT

UK Prime Minister Boris Johnson and the Presidents of European Council, European Commission, and European Parliament met via videoconference to discuss progress on EU-UK negotiations regarding the future relationship once the UK leaves the EU. The goal of the meeting was to agree on actions to advance in negotiations ahead of the 31 December, when the UK is expected to leave. Both sides agreed that a new impetus to reach an agreement is needed, supported the plans agreed by Chief Negotiators to intensify the talks in July, and to create the most conducive conditions for concluding and ratifying a deal before the end of 2020. Mr Johnson confirmed that the UK will net seek to extend the negotiation period.

WHITE PAPER ON FOREIGN SUBSIDIES IN THE SINGLE MARKET

The European Commission adopted a White Paper dealing with distortive effects caused by foreign subsidies to the Single Market. The purpose of the initiative is to fill existing gaps in the regulatory framework to preserve the level playing field in the EU between European and third-country companies. The White Paper proposed three actions including: a general instrument to capture the distortive effects of foreign subsidies; an instrument to address distortions caused by foreign subsidies facilitating the acquisition of EU companies; and a mechanism to address foreign subsidies in EU public procurement procedures. The Commission now seeks input from stakeholders on the White Paper until 23 September.

COMMISSION UNVEILS EU VACCINE STRATEGY AND SUPPORTS PROGRESSIVE TOURISM IN EU

To boost the EU response to COVID-19 pandemic, the European Commission adopted a European strategy to accelerate the development, manufacturing and deployment of vaccines against coronavirus. The strategy is based on a joint EU approach and aims to ensure the availability of safe and effective vaccines in a timeframe between 12 and 18 months. Additionally, the Commission launched the ‘Re-open EU’ web platform to support a safe relaunch of travelling and tourism across Europe. The website provides real-time information on borders, available means of transport and tourism services in all Member States.

EUROPEAN PARLIAMENT ADOPTS TAXONOMY FOR SUSTAINABLE FINANCE

The European Parliament adopted during its June Plenary Session the Taxonomy Regulation for sustainable investments. This legislative proposal lays down six environmental objectives, aiming to prevent ‘greenwashing’ and boost green investments in order to help achieve climate neutrality in the EU by 2050. In response to the Parliament’s adoption, the European Commission welcomed the adoption as it will help create the world’s first-ever ‘green list’ for investors so that they can re-orient investments towards more sustainable technologies and businesses.

COMING UP NEXT WEEK

• 22 June: EU-China summit via video conference. On the agenda: response to the COVID-19 pandemic, EU-China bilateral relations.
• 23 June: Tripartite Social Summit video conference.
• 23 June: Video conference of environment ministers. On the agenda: recovery from the COVID-19 crisis, green agenda in building a more sustainable, resilient and fairer Europe, German Presidency work programme presentation.
• 23 June: Video conference of ministers of education. On the agenda: lessons learnt from the crisis, developments and possible innovation in education and training

Karl Isaksson, Managing Partner Brussels, Kreab