Brussels, 4 November 2022
DIGITAL MARKETS ACT ENTERS INTO FORCE
The Digital Markets Act (DMA) entered into force on 1 November 2022 and will start to apply in six months, as of 2 May 2023. The DMA defines a large online platform as a “gatekeeper”, when its position grants it the power to act as a private rule maker and aims to prevent gatekeepers from engaging in anticompetitive behaviour. With the new rules, the Commission aims to regulate services such as app stores, online search engines, social networking services, certain messaging services, video sharing platform services, online marketplaces, and advertising services.
EU TRADE MINISTERS DISCUSS RELATIONS WITH THE USA, AGREEMENTS, AND DIGITAL TRADE
Trade Ministers of European Union countries met in Prague to discuss the geostrategic importance of trade, trade agreements and digital trade. The meeting included an exchange of views on transatlantic trade relations with the USA, with the participation of the United States Trade Representative, Ambassador Katherine Tai. In the context of the Russian aggression in Ukraine and its economic recovery, EU Trade Ministers highlighted the importance of strengthening the EU’s trade relations with partners who share similar values. Additionally, Ministers discussed the role of digital trade underlining that it is essential for the EU to adapt to a digitalised world in which digitized states trade with each other.
EU SPENT €23 BILLION IN CLIMATE FINANCE IN 2021
In preparation for the United Nations Climate Change Conference of the Parties (COP27), which will take place from 6 to 18 November in Sharm-el-Sheikh, Egypt, the Council approved the EU climate finance expenditure for 2021. In total, the EU and its 27 Member States spent over €23 billion on climate finance, supporting developing countries to reduce their greenhouse gas emissions and adapt to the impacts of climate change. Going forward, the EU and its Member States will continue delivering on their international climate finance commitments towards the collective goal of developed countries, notably the mobilisation of USD 100 billion per year throughout 2025.
EUROPEAN BANKS ARE NOT TAKING CLIMATE RISK SERIOUSLY ENOUGH, SAYS ECB
The European Central Bank released the results of its 2022 thematic review on climate-related and environmental risks covering 186 banks with total combined assets of €25 trillion. As a result of the review, the ECB urges eurozone banks to intensify their efforts to tackle risks stemming from climate change as banks are still failing to grasp the full magnitude of climate and environmental risks. Addressing the issue, the ECB expressed its readiness to take enforcement actions including imposing penalties. Under the ECB’s timeline, banks will have to categorise climate risks and assess the impact on their activities by March 2023 at the latest.
EUROSTAT’S LATEST ESTIMATE SHOWS THAT INFLATON CONTINUES TO INCREASE
Eurostat, the statistical office of the European Union published a flash estimate for October inflation in the euro area. It finds that inflation rose to 10.7% in October, compared to 9.9% in September. Moreover, core inflation (excluding energy and unprocessed food) rose to 6.4% relative to the 6% in September. Eurostat also published a flash estimate on gross domestic product growth in the euro area, finding that relative to Q2, GDP grew by 0.2% in Q3 2022, in both the euro area and the EU.
COMING UP NEXT WEEK
Karl Isaksson, Managing Partner Brussels, Kreab