EU Insight 18 June, 2021

Brussels, 18 June 2021

EU LEADERS ADOPT DIGITAL COVID CERTIFICATE

The Presidents of EU institutions attended the official signing ceremony for the Regulation on the EU Digital COVID Certificate, marking the end of the legislative process. The aim of the EU Digital COVID Certificate is to facilitate safe and free movement inside the EU during the COVID-19 pandemic. As such, the certificate will facilitate travel, exempting holders from restrictions like quarantine. In response to the adoption of the EU Digital COVID certificate, as well as to the evolving epidemiological situation and to the ongoing vaccination campaigns, the Council adopted a recommendation amending the recommendation on a coordinated approach to the restriction of free movement in response to the COVID-19 pandemic.

FIRST RECOVERY PLANS APPROVED, WHILE THE COMMISSION BEGINS RAISING FUNDS

The European Commission has positively assessed the recovery and resilience plans of Greece, Spain, Portugal, and Denmark, and is expected do the same for Austria and Slovakia next week. The Council has now four weeks to assess the plans and eventually approve the respective Council Implementing Decision, following which the initial funds, corresponding to the 13% pre-financing quota, should be disbursed to Member States. In the meanwhile, the Commission started raising capitals under NextGenerationEU. In the first transaction it raised €20 billion via a ten-year bond. The operation is the largest-ever institutional bond issuance in Europe, the largest-ever institutional single tranche transaction, and the largest amount the EU has raised in a single transaction.

EU-US LAUNCH TRADE AND TECHNOLOGY COUNCIL AND SOLVE LARGE CIVIL AIRCRAFT DISPUTE

The EU and the US launched a Trade and Technology Council (TTC) at the US-EU Summit which took place this week. The TTC will serve as a forum for the United States and European Union to coordinate approaches to key global trade, economic, and technology issues and to deepen transatlantic trade and economic relations based on shared democratic values. Moreover, the EU and the US reached an understanding relating to large civil aircraft to overcome long-standing differences and to preserve a level playing field between aircraft manufacturers. They also agreed to suspend application of harmful tariffs worth of USD 11.5 billion for a period of five years.

DEAL ON EU ROAD CHARGING RULES

The European Parliament and the Council reached a political agreement on revised road charging rules under the Eurovignette Directive, to address greenhouse gas emissions and other environmental impacts, congestion, and road infrastructure financing. The Council Presidency noted that the deal is a “crucial element in decarbonising transport and meeting climate targets in line with the European Green Deal and the Paris Agreement.” After some further work at technical level to finalise the text, the Directive will be adopted by the co-legislators before entering into force. Member States will then have two years to transpose the new rules into their national law.

€33 BILLION CONNECTING EUROPE FACILITY PROGRAMME CLOSE TO FORMAL ADOPTION

The Council adopted the EU’s Connecting Europe Facility 2.0 (CEF 2.0) programme, worth €33.71 billion, to fund the development of high-performing, sustainable infrastructure in the fields of transport (€25.81 billion), digital (€2.07 billion) and energy (€5.84 billion). This second edition of the programme will run from 2021 to 2027. The vote by the Council will be followed by final adoption by the European Parliament before being published in the EU Official Journal. The regulation will enter into force the day after its publication. It will apply retroactively from 1 January 2021.

COMING UP NEXT WEEK

• 21 June: Foreign Affairs Council. On the agenda: current affairs, exchange of views on Belarus, Iraq and Latin America and an informal exchange with the Foreign Minister of Iraq.
• 22 June: General Affairs Council. On the agenda: enlargement, Conference on the Future of Europe, preparation of the European Council and hearings on the rule of law in Poland and Hungary.
• 23 June: College of Commissioners meeting. On the agenda: Communication on a new occupational safety and health strategy framework and Recommendation on a joint cyber unit.
• 23-24 June: European Parliament Plenary. On the agenda: Climate Law, greener funds for regional development, access to sexual and reproductive health, EU summit/Malta Declaration.
• 24-25 June: European Council. On the agenda: COVID-19, economic recovery, migration, Turkey, and Russia.
• 25 June: Euro Summit. On the agenda: economic challenges post COVID-19, Banking Union, and Capital Markets Union.

Karl Isaksson, Managing Partner Brussels, Kreab

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Kreab • Tel: +32 2 737 6900 • karl.isaksson@kreab.com • www.kreab.com/brussels • Twitter: @KreabEU.