Brussels, 21 April 2023
PARLIAMENT ADOPTS MORE LAWS TO REACH THE 2030 CLIMATE TARGET
The European Parliament formally adopted several key pieces of legislation that are part of the Fit for 55 package. First, the Parliament adopted the reform of the Emissions Trading System (ETS), increasing its ambition to cut greenhouse gas emissions in the covered sectors by 62% by 2030 compared to 2005 levels. Rules for the new EU Carbon Border Adjustment Mechanism were also adopted, which aim to ensure that EU and global climate efforts are not undermined by production being relocated from the EU to countries with less ambitious policies. Finally, the Parliament agreed to set up an EU Social Climate Fund in 2026 aiming to ensure that the climate transition will be fair and socially inclusive. The texts now should be formally endorsed by Council before they can be published in the EU Official Journal and enter into force 20 days later.
POSITION ON KEY ASYLUM AND MIGRATION REFORMS ADOPTED BY PARLIAMENT
The European Parliament adopted its position on four migration and asylum policy reforms. The first piece of legislation refers to the screening of third-country nationals at EU borders, with a focus on the respect of fundamental human rights during identity checks and processes. The second file is the Asylum and Migration Management file which addresses fair sharing of responsibility and includes a binding solidarity mechanism to assist countries experiencing migratory pressure. The third text on crisis situations focuses on sudden mass arrivals of third country nationals. And lastly, the Long-Term Resident Directive which accelerates the granting of EU long-term permits after 3 years of legal residence and the possibility to integrate persons enjoying temporary protection status. Next step is negotiations with the EU countries in Council.
COUNCIL AND PARLIAMENT REACHED COMPROMISE ON THE CHIPS ACT
The Council of the European Union and the European Parliament reached a provisional agreement on the “Chips Act”. The Act aims at enlarging the European semiconductors industry, by doubling the EU’s market share on the international scene. To achieve this objective, the Act sets out three key measures. First, 43 billion euro are mobilised through the “Chips for Europe Initiative” to support large-scale technological capacity building. Second, the Act provides a framework to ensure security of supply and resilience by attracting investment. Lastly, the Act foresees a Monitoring and Crisis Response system to anticipate and provide responses in case of crisis.
COMMISSION REVIEWS BANK CRISIS MANAGEMENT AND DEPOSIT INSURANCE FRAMEWORK
The Commission published its crisis management and deposit insurance package reform. The package consists of four proposals: (i) a Directive amending certain aspects of the minimum requirement for own funds and eligible liabilities; (ii) legislation amending early intervention measures, conditions for resolution and financing of resolution action; (iii) a Directive amending the scope of deposits protection, use of deposit guarantee scheme funds, cross-border cooperation, and transparency; and (iv) a Regulation amending early intervention measures, conditions for resolution and funding of resolution action. The review mainly aims to provide solutions to enable the existing framework to fully achieve its objectives and be fit for its purpose for all banks in the EU, irrespective of their size, business model and liability structure.
COUNCIL AND COMMISSION UNVEIL FURTHER SUPPORT MEASURES FOR UKRAINE
The Council of the European Union and the European Commission adopted decisions regarding the humanitarian and military support to Ukraine. The Council announced the grant of an additional €1 billion in support for the country, under the European Peace Facility framework. Meanwhile, the Commission welcomed Ukraine in the EU Civil Protection Mechanism, which aims at supporting the recovery of victims of disasters. In this frame, an additional €55 million fund will be provided to Ukraine. Lastly, the Commission issued a call for proposals on two projects for the reconstruction of Ukraine’s cities through innovative and sustainable infrastructure planning, under the New European Bauhaus.
COMING UP NEXT WEEK
Karl Isaksson, Managing Partner Brussels, Kreab