06/12/2019
PRESIDENT VON DER LEYEN PRESENTED WORKING METHODS OF THE NEW COMMISSION
The von der Leyen Commission lived through its first working week. While the new Commissioners reveal their advisory staff, the President Ursula von der Leyen presented the updated working methods of her Commission. The main principle rests in the collective decision-making where all the Members of the College are equal and responsible for their decisions together. For the first time, the Commission will strive to be more decisive on geopolitical issues through enhanced coordination on external affairs. Finally, the College will apply the “one in, one out” principle where each new legislative proposal will require another to be dismissed.
FINANCE MINISTERS AGREE ON MANY THINGS, BUT NOT ON BANKING UNION
EU finance ministers adopted conclusions calling to review energy taxation rules, pushing for an anti-money laundering Regulation and advocating for the deepening of the capital markets union. In addition, a Council-Commission joint statement on stablecoins calls for EU legislative action, noting the Commission will consult on this by year-end. However, Ministers found no agreement on the roadmap for the completion of the Banking Union, including the establishment of a European Deposit Insurance Scheme (EDIS). Discussions will continue in the coming months, as most Member States still hope to complete EDIS within the current five-year institutional cycle.
PROVISIONAL AGREEMENT REACHED ON SUSTAINABLE TAXONOMY FRAMEWORK
The co-legislators reached a provisional agreement on the so-called Sustainable Taxonomy Regulation. The Taxonomy will measure the ‘sustainability’ of an economic activity and will also be used as the basis for determining the minimum requirements for ‘green’ financial products through ecolabels and the European Green Bond Standard. The agreement broadens the scope of the Taxonomy to all financial products and introduces a “shades of green” approach to disclosure requirements. However, the deal is still subject to Member States’ approval, who will meet next week at Ambassadors’ level. If rejected, trilogues are expected to resume before the end of the year.
PARLIAMENT AND COUNCIL FIND AGREEMENT ON WATER REUSE IN AGRICULUTRE
The European Parliament and the Council found a provisional agreement on the minimum requirements for water reuse of treated urban wastewaters in agricultural irrigation. The new rules will help ensure more predictable supply of clean water for the EU farmers and help mitigate impacts of climate change. Furthermore, the cleaner water in agriculture will increase citizens’ confidence in European agricultural produce. The provisional agreement needs to be formally approved by the European Parliament and the Council. The regulation will then enter into force 20 days after publication in the Official Journal.
EBA ISSUES SECOND PART OF ADVICE ON IMPLEMENTATION OF BASEL III STANDARDS
The European Banking Authority (EBA) published the second part of its advice on the implementation of Basel III standards in the EU, which complements the report published earlier this year. Overall, this second advice includes an assessment of the impact of the revisions to the credit valuation adjustment and market risk framework, the corresponding policy recommendations, as well as a macroeconomic impact assessment of the full Basel III package.
The latter shows that the implementation of Basel III will have net benefits for the EU’s economy. In its advice, the EBA reaffirms its support for a full implementation of the final Basel III standards.
COMING UP NEXT WEEK
Karl Isaksson, Managing Partner Brussels, Kreab