EU Insight, 25 October 2019, Brussels

EU STANDS READY TO GRANT UK THIRD BREXIT EXTENSION BUT LENGTH REMAINS UNCLEAR

The UK government requested an extension to Article 50 until 31 January 2020 after Boris Johnson’s plan for the fast-track ratification of the revised Brexit deal was derailed in the UK Parliament. In response, European Council President Donald Tusk recommended the EU27 leaders to approve what would be the third Brexit delay. Whilst it is most likely that the extension will be granted, its length and possible preconditions remain unclear, and subject to the European Council’s decision (and the UK government’s consent). The decision will be made in the coming days and in any case before 31 October.

SUSTAINABLE FINANCE TRILOGUES KICK-OFF WHILST INTERNATIONAL PLATFORM IS LAUNCHED

The European Parliament agreed to begin interinstitutional negotiations on the EU taxonomy to facilitate sustainable investments. MEPs had already adopted their position at the end of the previous parliamentary term, but a confirmatory vote from the current Parliament was needed to proceed to the next stage of negotiations, after the Council agreed its position in September. Separately, the European Commission launched the International Platform on Sustainable Finance (IPSF) to facilitate international cooperation. The Platform will be composed of the EU, Argentina, Canada, Chile, China, India, Kenya and Morocco and will be open to any further “like-minded” countries in the future.

THIRD ANNUAL REVIEW OF THE EU-US PRIVACY SHIELD

The European Commission released its report on the third annual review of the functioning of the EU-U.S. Privacy Shield. The report confirms that the U.S. continues to ensure an adequate level of protection for transferred personal data. According to the Commission, there have been several improvements in the functioning of the framework, as well as appointments to key oversight and redress bodies when compared to 2018. However, the Commission recommends that certain concrete steps be taken, including expanding compliance checks. The review of the functioning of the Privacy Shield will continue to be run on an annual basis.

COMMISSION TAKES STOCK OF PROGRESS MADE BY BULGARIA AND ROMANIA

The European Commission adopted two reports on progress made by Bulgaria and Romania to meet its commitments on judicial reform, the fight against corruption and tackling organised crime. On Bulgaria, the Commission’s report notes that Bulgaria has made sufficient progress to meet its commitments made at the time of its accession to the EU, but that further concrete legislative actions are needed. As for Romania, the report highlights that progress has been backtracking when compared to previous years, and that concrete legislative and administrative steps will need to be taken to address this.

CROATIA MAKES PROGRESS TO JOIN THE SCHENGEN AREA

The European Commission published a report on the progress made by Croatia in meeting the conditions to join the Schengen Area. The report notes that Croatia has taken the right measures to ensure that the conditions for the full application of the Schengen acquis are met. In fact, Commission President Jean-Claude Juncker said that he trusts that Croatia will become a full member of the Schengen Area soon. In the meantime, the report notes that Croatia will have to continue working to ensure that is external borders are properly managed.

COMING UP NEXT WEEK:

• No relevant events are taking place next week. EU Institutions will be closed on Friday 1 November.

Karl Isaksson, Managing Partner Brussels, Kreab