title: Council Recommendation (EU) 2021/767 of 6 May 2021 amending Recommendation (EU) 2020/912 on the temporary restriction on non-essential travel into the EU and the possible lifting of such restriction

text:
                  11.5.2021

                  EN

                  Official Journal of the European Union

                  LI 165/66

         COUNCIL RECOMMENDATION (EU) 2021/767
         of 6 May 2021
         amending Recommendation (EU) 2020/912 on the temporary restriction on non-essential travel into the EU and the possible lifting of such restriction
         THE COUNCIL OF THE EUROPEAN UNION,
         Having regard to the Treaty on the Functioning of the European Union, and in particular Article Article 77(2)(b) and (e) and Article 292, first and second sentence thereof,
         Whereas:

                     (1)

                     On 30 June 2020, the Council adopted a Recommendation on the temporary restriction on non-essential travel into the EU and the possible lifting of such restriction (1) (‘Council Recommendation’). On 16 July 2020, the Council adopted Recommendation (EU) 2020/1052 amending Council Recommendation (EU) 2020/912 on the temporary restriction on non-essential travel into the EU and the possible lifting of such restriction (2). On 30 July 2020, the Council adopted Recommendation (EU) 2020/1144 amending Council Recommendation (EU) 2020/912 on the temporary restriction on non-essential travel into the EU and the possible lifting of such restriction (3). On 7 August 2020, the Council adopted Recommendation (EU) 2020/1186 amending Council Recommendation (EU) 2020/912 on the temporary restriction on non-essential travel into the EU and the possible lifting of such restriction (4). On 22 October 2020, the Council adopted Recommendation (EU) 2020/1551 amending Council Recommendation (EU) 2020/912 on the temporary restriction on non-essential travel into the EU and the possible lifting of such restriction (5).
                     On 17 December 2020, the Council adopted Recommendation (EU) 2020/2169 amending Council Recommendation (EU) 2020/912 on the temporary restriction on non-essential travel into the EU and the possible lifting of such restriction (6). On 28 January 2021, the Council adopted Recommendation (EU) 2021/89 amending Council Recommendation (EU) 2020/912 on the temporary restriction on non-essential travel into the EU and the possible lifting of such restriction (7).

                     (2)

                     On 2 February 2021, the Council adopted Recommendation 2021/132 amending (EU) 2020/912 on the temporary restriction on non-essential travel into the EU and the possible lifting of such restriction (8).

                     (3)

                     The Council Recommendation provides that Member States should gradually lift the temporary restriction on non-essential travel to the EU as from 1 July 2020 in a coordinated manner with regard to the residents of the third countries listed in Annex I to the Council Recommendation. Every two weeks, the list of third countries referred to in Annex I should be reviewed, and as the case may be updated, by the Council, after close consultation with the Commission and the relevant EU agencies and services following an overall assessment based on the methodology, criteria and information referred to in the Council Recommendation.

                     (4)

                     Discussions have since then taken place within the Council, in close consultation with the Commission and the relevant EU agencies and services, on the review of the list of third countries set out in Annex I to the Council Recommendation and in application of the criteria and methodology laid down in the Council Recommendation. As a result of these discussions, the list of third countries set out in Annex I should be amended. In particular, Israel should be added to the list.

                     (5)

                     Border control is in the interest not only of the Member State at whose external borders it is carried out but of all Member States which have abolished internal border control. Member States should therefore ensure that measures taken at the external borders are coordinated in order to ensure a well functioning Schengen area. To that end, as of 6 May 2021, Member States should continue lifting the temporary restriction on non-essential travel into the EU in a coordinated manner with regard to the residents of the third countries listed in Annex I of the Council Recommendation as amended by this Recommendation.

                     (6)

                     In accordance with Articles 1 and 2 of Protocol No 22 on the Position of Denmark annexed to the Treaty on European Union and to the TFEU, Denmark is not taking part in the adoption of this Recommendation and is not bound by it or subject to its application. Given that this Recommendation builds upon the Schengen acquis, Denmark shall, in accordance with Article 4 of the said Protocol, decide within a period of six months after the Council has decided on this Recommendation whether it will implement it.

                     (7)

                     This Recommendation constitutes a development of the provisions of the Schengen acquis in which Ireland does not take part, in accordance with Council Decision 2002/192/EC (9); Ireland is therefore not taking part in its adoption and is not bound by it or subject to its application.

                     (8)

                     As regards Iceland and Norway, this Recommendation constitutes a development of the provisions of the Schengen acquis within the meaning of the Agreement concluded by the Council of the European Union and the Republic of Iceland and the Kingdom of Norway concerning the latter’s association with the implementation, application and development of the Schengen acquis which fall within the area referred to in Article 1, point A, of Council Decision 1999/437/EC (10).

                     (9)

                     As regards Switzerland, this Recommendation constitutes a development of the provisions of the Schengen acquis within the meaning of the Agreement between the European Union, the European Community and the Swiss Confederation on the Swiss Confederation’s association with the implementation, application and development of the Schengen acquis which fall within the area referred to in Article 1, point A, of Decision 1999/437/EC (11) read in conjunction with Article 3 of Council Decision 2008/146/EC (12).

                     (10)

                     As regards Liechtenstein, this Recommendation constitutes a development of provisions of the Schengen acquis within the meaning of the Protocol between the European Union, the European Community, the Swiss Confederation and the Principality of Liechtenstein on the accession of the Principality of Liechtenstein to the Agreement between the European Union, the European Community and the Swiss Confederation on the Swiss Confederation’s association with the implementation, application and development of the Schengen acquis which fall within the area referred to in Article 1 point A, of Decision 1999/437/EC (13) read in conjunction with Article 3 of Decision 2011/350/EU (14).

               HAS ADOPTED THIS RECOMMENDATION:
         Council Recommendation (EU) 2020/912, as amended by Recommendation (EU) 2020/1052, by Recommendation (EU) 2020/1144, by Recommendation (EU) 2020/1186, by Recommendation (EU) 2020/1551, by Recommendation (EU) 2020/2169, by Recommendation (EU) 2021/89 and by Recommendation 2021/132 on the temporary restriction on non-essential travel into the EU and the possible lifting of such restriction is amended as follows:

                     (1)

                     first paragraph of point 1 of the Council Recommendation is replaced by the following:

                                 ‘1.

                                 As from 6 May 2021, Member States should gradually lift the temporary restriction on non-essential travel to the EU in a coordinated manner with regard to the residents of the third countries listed in Annex I.’;

                     (2)

                     Annex I to the Recommendation is replaced by the following:

                           ‘ANNEX I
                           Third countries and Special Administrative Regions, whose residents should not be affected by temporary external borders restriction on non-essential travel into the EU:
                           I.   STATES

                                       1.

                                       AUSTRALIA

                                       2.

                                       ISRAEL

                                       3.

                                       NEW ZEALAND

                                       4.

                                       RWANDA

                                       5.

                                       SINGAPORE

                                       6.

                                       SOUTH KOREA

                                       7.

                                       THAILAND

                                       8.

                                       CHINA  (*1)

                                 II.   SPECIAL ADMINISTRATIVE REGIONS OF THE PEOPLE’S REPUBLIC OF CHINA

                                       Hong Kong SAR  (*1)

                                       Macao SAR (*1)

                        (*1)  Subject to confirmation of reciprocity"

                        (*1)  Subject to confirmation of reciprocity"

                        (*1)  Subject to confirmation of reciprocity"

            Done at Brussels, 6 May 2021.

                  For the Council

                  The President

               J. BORRELL FONTELLES

            (1)  OJ L 208I, 1.7.2020, p. 1

            (2)  OJ L 230, 17.7.2020, p. 26.

            (3)  OJ L 248, 31.7.2020, p. 26.

            (4)  OJ L 261, 11.8.2020, p. 83.

            (5)  OJ L 354, 26.10.2020, p. 19.

            (6)  OJ L 431, 21.12.2020, p. 75.

            (7)  OJ L 33, 29.1.2021, p. 1.

            (8)  OJ L 41, 4.2.2021, p. 1.

            (9)  Council Decision 2002/192/EC of 28 February 2002 concerning Ireland’s request to take part in some of the provisions of the Schengen acquis (OJ L 64, 7.3.2002, p. 20).

            (10)  OJ L 176, 10.7.1999, p. 31.

            (11)  OJ L 53, 27.2.2008, p. 52.

            (12)  Council Decision 2008/146/EC of 28 January 2008 on the conclusion, on behalf of the European Community, of the Agreement between the European Union, the European Community and the Swiss Confederation on the Swiss Confederation’s association with the implementation, application and development of the Schengen acquis (OJ L 53, 27.2.2008, p. 1).

            (13)  OJ L 160, 18.6.2011, p. 21.

            (14)  Council Decision 2011/350/EU of 7 March 2011 on the conclusion, on behalf of the European Union, of the Protocol between the European Union, the European Community, the Swiss Confederation and the Principality of Liechtenstein on the accession of the Principality of Liechtenstein to the Agreement between the European Union, the European Community and the Swiss Confederation on the Swiss Confederation’s association with the implementation, application and development of the Schengen acquis, relating to the abolition of checks at internal borders and movement of persons (OJ L 160, 18.6.2011, p. 19).


title: Commission Recommendation of 18 June 2019 on the draft integrated National Energy and Climate Plan of Poland covering the period 2021-2030

text:
               3.9.2019

               EN

               Official Journal of the European Union

               C 297/80

      COMMISSION RECOMMENDATION
      of 18 June 2019
      on the draft integrated National Energy and Climate Plan of Poland covering the period 2021-2030
      (2019/C 297/21)
      THE EUROPEAN COMMISSION,
      Having regard to Regulation (EU) 2018/1999 of the European Parliament and of the Council of 11 December 2018 on the Governance of the Energy Union and Climate Action, amending Regulations (EC) No 663/2009 and (EC) No 715/2009 of the European Parliament and of the Council, Directives 94/22/EC, 98/70/EC, 2009/31/EC, 2009/73/EC, 2010/31/EU, 2012/27/EU and 2013/30/EU of the European Parliament and of the Council, Council Directives 2009/119/EC and (EU) 2015/652 and repealing Regulation (EU) No 525/2013 of the European Parliament and of the Council (1), and in particular Article 9(2) thereof,
      Whereas:

                  (1)

                  Pursuant to Regulation (EU) 2018/1999, each Member State is required to submit to the Commission a draft of its integrated national energy and climate plan covering the period from 2021 to 2030 in accordance with Article 3(1) and Annex I of that Regulation. The first drafts of integrated national energy and climate plans had to be submitted by 31 December 2018.

                  (2)

                  Poland submitted its draft integrated national energy and climate plan on 9 January 2019. The submission of this draft plan represents the basis and first step of the iterative process between the Commission and Member States for the purpose of the finalisation of the integrated national energy and climate plans and their subsequent implementation.

                  (3)

                  Pursuant to Regulation (EU) 2018/1999, the Commission is required to assess the draft integrated national energy and climate plans. The Commission made a comprehensive assessment of the Polish draft integrated national energy and climate plan, taking into consideration the relevant elements of Regulation (EU) 2018/1999. This assessment (2) is published alongside the present recommendation. The below recommendations are based on that assessment.

                  (4)

                  In particular, the Commission's recommendations may address (i) the level of ambition of objectives, targets and contributions with a view to collectively achieving the Energy Union objectives and, in particular, the Union's 2030 targets for renewable energy and energy efficiency as well as the level of electricity interconnectivity that the Member State aims for in 2030; (ii) policies and measures relating to Member State- and Union-level objectives and other policies and measures of potential cross-border relevance; (iii) any additional policies and measures that might be required in the integrated national energy and climate plans; (iv) interactions between and consistency of existing and planned policies and measures included in the integrated national energy and climate plan within one dimension and among different dimensions of the Energy Union.

                  (5)

                  In developing its recommendations, the Commission considered, on the one hand, the need to add up certain quantified planned contributions of all Member States in order to assess the ambition at Union level, and, on the other hand, the need to provide adequate time for the Member State concerned to take due consideration of the Commission's recommendations before finalising its national plan.

                  (6)

                  The Commission's recommendations with regard to the Member States' renewable ambitions are based on a formula set out in Annex II of Regulation (EU) 2018/1999 which is based on objective criteria.

                  (7)

                  With regard to energy efficiency, the Commission's recommendations are based on the assessment of the national level of ambition put forward in the draft integrated national energy and climate plan, compared to the collective level of efforts needed to reach the Union's targets, taking into account the information provided on specific national circumstances, where relevant. The final national contributions in the area of energy efficiency should reflect the cost-effective potential for energy savings and be supported with a robust long-term building renovation strategy and measures to implement the energy savings obligation stemming from Article 7 Directive 2012/27/EU of the European Parliament and of the Council (3). Member States should also demonstrate that they have properly taken into account the energy efficiency first principle, by explaining notably how energy efficiency contributes to the cost-effective delivery of the national goals of a competitive low-carbon economy, security of energy supply and to address energy poverty.

                  (8)

                  The Governance Regulation requires Member States to provide a general overview of the investment needed to achieve the objectives, targets and contributions set out in the integrated national energy and climate plan, as well as a general assessment on the sources of that investment. The national energy and climate plans should ensure the transparency and predictability of national policies and measures in order to ensure investment certainty.

                  (9)

                  In parallel, as part of the 2018-2019 European Semester cycle, the Commission has put a strong focus on Member States' energy and climate related investment needs. This is reflected in the 2019 Country Report for Poland (4) and in the Commission's recommendation for a Council Recommendation to Poland (5), as part of the European Semester process. The Commission took into account the latest European Semester findings and recommendations in its assessment of the draft integrated national energy and climate plans. The Commission's recommendations are complementary to the latest country-specific recommendations issued in the context of the European Semester. Member States should also ensure that their integrated national energy and climate plans take into consideration the latest country-specific recommendations issued in the context of the European Semester.

                  (10)

                  In addition, the Governance Regulation requires each Member State to take due account of any recommendations from the Commission to its draft integrated national energy and climate plan to be submitted by 31 December 2019 and, if the Member State concerned does not address a recommendation or a substantial part thereof, that Member State should provide and make public its reasons.

                  (11)

                  Where applicable, Member States should report the same data in their integrated national energy and climate plans and updates in later years as they report to Eurostat or the European Environment Agency. The use of the same source and, where available, of European statistics, is also essential to calculate the baseline for modelling and projections. Using European statistics will allow for a better comparability of the data and the projections used in the integrated national energy and climate plans.

                  (12)

                  All elements of Annex I of the Regulation (EU) 2018/1999 are to be included in the final integrated national energy and climate plan. In this context, the macroeconomic and, to the extent feasible, the health, environmental, employment and education, skills and social impacts of the planned policies and measures should be assessed. The public and other stakeholders are to be engaged in the preparation of the final integrated national energy and climate plan. These and other elements are described in detail in the staff working document published alongside this Recommendation (6).

                  (13)

                  Considering the limited information on interactions between different Energy Union dimensions outlined in the draft plan, the final plan could specify key interactions between these dimensions both in terms of national ambition levels and in terms of provisional, planned, additional and existing policy instruments. The final plan could address more specifically interactions between the decarbonisation, energy efficiency and energy security dimensions. This could be supported by extending the provided comprehensive impact assessment e.g. to quantify the impacts on accounted emissions and removals from land use, land use change and forestry of a sustainable supply of biomass for energy purposes. and addressing risks for energy security due to climate change. Moreover, building on the good starting point of the provided investment needs and expenditures in electricity and energy producing sectors, the final plan could broaden this to energy demand and non-energy sectors, across all Energy Union dimensions. Similarly, the objectives under the research, innovation and competitiveness dimension need to underpin the efforts planned for the other Energy Union dimensions.

                  (14)

                  The final integrated national energy and climate plan would benefit from presenting a comprehensive analysis on where the low-carbon technologies sector is currently positioned in the global market, highlighting areas of competitive strengths and potential challenges and pointing at measurable objectives for the future and policies and measures to achieve them, making appropriate links to enterprise and industrial policy. It could also benefit from a better interaction with the circular economy, emphasising its greenhouse gas emissions reduction potential.

                  (15)

                  The Commission's recommendations to Poland are underpinned by the assessment of Poland's draft integrated national energy and climate plan which is published alongside this Recommendation (7),

            HEREBY RECOMMENDS POLAND TAKES ACTION TO:

                  1.

                  Provide more information on planned policies and measures to address the projected substantial gap to Poland's greenhouse gas target for sectors not covered by the EU emissions trading system for 2030 of - 7 % compared to 2005. This includes more clarity on transport measures and more details on additional measures, notably in the building, agriculture and land use, land use change and forestry sectors and the application of accounting rules as set out in the Regulation (EU) 2018/841 of the European Parliament and of the Council (8).

                  2.

                  Increase the level of ambition for 2030 to a renewable energy share of at least 25 % as Poland's contribution to the Union's 2030 target, as indicated by the formula in Annex II under Regulation (EU) 2018/1999. Include an indicative trajectory in the final integrated national energy and climate plan that reaches all the reference points pursuant to Article 4(a)(2) of Regulation (EU) 2018/1999 in accordance with that share, in view of the need to increase the level of efforts for reaching this target collectively. Put forward detailed and quantified policies and measures that are in line with the obligations laid down in Directive (EU) 2018/2001 of the European Parliament and Council (9), to enable a timely and cost-effective achievement of this contribution. Ensure that the renewable energy target for 2020 set out in Annex I of Directive 2009/28/EC of the European Parliament and of the Council (10) is fully met and maintained as a baseline from 2021 onwards, and explain how such a baseline share will be met and maintained. Increase the level of ambition in the heating and cooling sector to meet the indicative target included in Article 23 of Directive (EU) 2018/2001 and put in place detailed measures to meet the transport target set in the draft integrated national energy and climate plan, in line with Article 25 of Directive (EU) 2018/2001. Provide additional details and measures on simplification of administrative procedures, on the enabling frameworks for renewable self-consumption and renewable energy communities, in line with Articles 21 and 22 of Directive (EU) 2018/2001.

                  3.

                  Review its contributions and identify additional policies and measures that could deliver further energy savings in view of the need to increase the level of efforts to reach the Union's 2030 energy efficiency target. The proposed level of ambition towards reducing the final contribution should be better justified and backed by adequate and quantified savings from polices and measures. Support policies and measures with an impact assessment and deliver more detailed information on the scale and timeframe of implementation. Further explore policies and measures in transport considering the expected increase in the sector's energy demand in the future.

                  4.

                  Specify the measures supporting the energy security objectives on diversification and reduction of energy dependency, including measures ensuring flexibility of the energy system to accommodate the foreseen changes towards 2030 and beyond.

                  5.

                  Define forward-looking objectives and targets concerning market integration, in particular measures to assess the impact of public service obligations, in particular gas storage and price regulation on market functioning and clarify how negative consequences will be mitigated. Outline a strategy and timeline for progressing towards fully market based prices.

                  6.

                  Clarify the national objectives and funding targets in research, innovation and competitiveness, specifically related to the Energy Union, to be achieved between now and 2030, so that they are readily measurable and fit for purpose to support the implementation of targets in the other dimensions of the integrated national energy and climate plan. Underpin such objectives with specific and adequate policies and measures, including those to be developed in cooperation with other Member States, such as the Strategic Energy Technology Plan.

                  7.

                  Continue and broaden the consultation of neighbouring Member States and regional cooperation in the context of the Visegrad Group (Czechia, Hungary, Poland and Slovakia) and in the respective high-level groups. The focus of the regional exchanges could be on further integration in the internal energy market, assessing system adequacy in light of the planned continuation of a capacity market, just transition issues, decarbonisation and renewables deployment and the impact on the energy system and cross-border electricity trade.

                  8.

                  List all energy subsidies, including in particular for fossil fuels, and actions undertaken as well as plans to phase them out.

                  9.

                  Complement the analysis of the interactions with air quality and air emissions policy, including from a quantitative perspective, and presenting the impacts on air pollution for the various scenarios.

                  10.

                  Integrate just and fair transition aspects better, notably by providing more details on social, employment and skills impacts of planned objectives, and policies and measures. The final integrated national energy and climate plan should particularly address the impact of the transition on the populations living in coal regions, reinforcing the link to the ongoing coal regions in transition initiative and the corresponding national and regional transition plans, as well as those affected by adjustments in other energy-intensive sectors. Further develop the approach to addressing energy poverty issues, including by specifying objectives and intended impacts of planned policies and measures as required by the Regulation (EU) 2018/1999.

         Done at Brussels, 18 June 2019.

               For the Commission

            Miguel ARIAS CAÑETE

               Member of the Commission

         (1)  OJ L 328, 21.12.2018, p. 1.

         (2)  SWD(2019) 281.

         (3)  Directive 2012/27/EU of the European Parliament and of the Council of 25 October 2012 on energy efficiency, amending Directives 2009/125/EC and 2010/30/EU and repealing Directives 2004/8/EC and 2006/32/EC (OJ L 315, 14.11.2012, p. 1).

         (4)  SWD (2019) 1020 final.

         (5)  COM (2019) 521 final of 5 June 2019.

         (6)  SWD(2019) 281.

         (7)  SWD(2019) 281.

         (8)  Regulation (EU) 2018/841 of the European Parliament and of the Council of 30 May 2018 on the inclusion of greenhouse gas emissions and removals from land use, land use change and forestry in the 2030 climate and energy framework, and amending Regulation (EU) No 525/2013 and Decision No 529/2013/EU (OJ L 156, 19.6.2018, p. 1)

         (9)  Directive (EU) 2018/2001 of the European Parliament and of the Council of 11 December 2018 on the promotion of the use of energy from renewable sources (OJ L 328, 21.12.2018, p. 82).

         (10)  Directive 2009/28/EC of the European Parliament and of the Council of 23 April 2009 on the promotion of the use of energy from renewable sources and amending and subsequently repealing Directives 2001/77/EC and 2003/30/EC (OJ L 140, 5.6.2009, p. 16).


title: Council Recommendation of 8 November 2019 on the appointment of a member of the Executive Board of the European Central Bank2019/C 385/01

text:
               13.11.2019

               EN

               Official Journal of the European Union

               C 385/1

      COUNCIL RECOMMENDATION
      of 8 November 2019
      on the appointment of a member of the Executive Board of the European Central Bank
      (2019/C 385/01)
      THE COUNCIL OF THE EUROPEAN UNION,
      Having regard to the Treaty on the Functioning of the European Union, and in particular Articles 283(2) and 139(2) thereof,
      Having regard to Protocol No 4 on the Statute of the European System of Central Banks and of the European Central Bank, and in particular Article 11.2 thereof,
      HEREBY RECOMMENDS TO THE EUROPEAN COUNCIL THAT:
      Ms Isabel SCHNABEL be appointed as a member of the Executive Board of the European Central Bank for a term of office of eight years with effect from 1 January 2020.

         Done at Brussels, 8 November 2019.

               For the Council

               The President

            M. LINTILÄ


               27.1.2020

               EN

               Official Journal of the European Union

               C 28/121

      P8_TA(2018)0256
      Negotiations on the modernisation of the EU-Chile Association Agreement
      European Parliament recommendation of 13 June 2018 to the Council, the Commission and the Vice-President of the Commission / High Representative of the Union for Foreign Affairs and Security Policy on the negotiations on the modernisation of the EU-Chile Association Agreement (2018/2018(INI))
      (2020/C 28/15)

         The European Parliament,

                  —

                  having regard to Articles 2 and 3 and to Title V, in particular Articles 21 and 36, of the Treaty on European Union (TEU), as well as to Part Five of the Treaty on the Functioning of the European Union (TFEU),

                  —

                  having regard to Article 218 of the TFEU,

                  —

                  having regard to the existing Association Agreement between the Republic of Chile and the European Union,

                  —

                  having regard to the launch on 16 November 2017 of negotiations between the European Union and Chile on a modernised association agreement,

                  —

                  having regard to the Council’s adoption on 13 November 2017 of the negotiating directives for this agreement,

                  —

                  having regard to the Joint Declaration of the 25th meeting of the EU-Chile Joint Parliamentary Committee of 22 January 2018,

                  —

                  having regard to its recommendation of 14 September 2017 to the Council, the Commission and the European External Action Service on the negotiations of the modernisation of the trade pillar of the EU-Chile Association Agreement (1),

                  —

                  having regard to its resolution of 13 September 2017 on EU political relations with Latin America (2),

                  —

                  having regard to the EU-CELAC Civil Society Forum Declaration of 11 May 2015 entitled ‘Equality, rights and democratic participation for the peoples of Europe and Latin America and the Caribbean’,

                  —

                  having regard to Rules 108(4) and 52 of its Rules of Procedure,

                  —

                  having regard to the report of the Committee on Foreign Affairs (A8-0158/2018),

                  A.

                  whereas Chile and the EU are united by shared values and close cultural, economic and political ties;

                  B.

                  whereas Chile and the EU are close partners in tackling regional and global challenges, such as climate change, international security, sustainable development and global governance;

                  C.

                  whereas Chile is a strong advocate of democracy and human rights, free and open trade and multilateralism; whereas it is also a key member of the Pacific Alliance, the Organisation of American States (OAS), and the Union of South American Nations (UNASUR), and a high-income country and OECD member;

                  D.

                  whereas Chile has been a major player in regional affairs, for example as a guarantor country in the Colombian peace process and the Santo Domingo talks between the Venezuelan Government and opposition; whereas Chile withdrew from the Venezuelan talks as the minimum conditions for democratic presidential elections and institutional normalisation were not reached;

                  E.

                  whereas a Framework Participation Agreement for Chile’s participation in EU crisis management operations has been in place since January 2014; whereas Chile participates in EUFOR ALTHEA in Bosnia and Herzegovina as well as a number of UN peacekeeping operations, reflecting its commitment to global peace and security;

                  F.

                  whereas the recent parliamentary and presidential elections have once again demonstrated the stable and mature nature of Chilean democracy; whereas Chile has benefited from strong economic growth and has been one of South America’s fastest-growing economies in recent decades; whereas reform efforts in the country are still ongoing;

                  G.

                  whereas the recent decriminalisation of abortion under certain circumstances has demonstrated an increased openness in Chilean society towards the empowerment of women and girls;

                  H.

                  whereas in the 2016 Human Development Index, Chile is placed in the category of very high human development and ranks as the first Latin American country and number 38 in the world, above seven EU Member States;

                  I.

                  whereas the existing Association Agreement has been instrumental in deepening EU-Chile political relations and substantially increasing trade and investment flows; whereas continued respect for the rule of law and a stable legal and political framework enables both Chile and the EU to exercise free enterprise and fosters an adequate investment environment that includes safeguards on the principle of legal certainty;

                  J.

                  whereas the EU and Chile have concluded more ambitious and comprehensive agreements with other partners in recent years; whereas a modernisation of the EU-Chile Association Agreement therefore has the potential to significantly deepen the existing relationship, including relations in the areas of foreign affairs and security;

                  K.

                  whereas the future Association Agreement between the EU and Chile must fully reflect the transformative nature of the 2030 Agenda for Sustainable Development and the role of international development cooperation towards the achievement of the Sustainable Development Goals (SDGs);

                  L.

                  whereas an updated Association Agreement, together with the agreements with Mexico and Mercosur that are currently being (re-)negotiated, would reinforce the EU’s role as a key ally of Latin America, at a time when other players are increasingly trying to gain influence in the region, such as China and Russia;

                  M.

                  whereas the EU-Chile Joint Parliamentary Committee (JPC) has repeatedly expressed its support for the modernisation of the Association Agreement, most recently in the Joint Declaration adopted at its 25th meeting on 22 January 2018;

                  1.

                  Recommends the following to the Council, the Commission and the Vice-President of the Commission / High Representative of the Union for Foreign Affairs and Security Policy (VP/HR):

                        General principles

                              (a)

                              to considerably strengthen cooperation between Chile and the EU, two like-minded partners in an environment of new uncertainty in international relations, on the basis of our shared values and principles of democracy, the fight against climate change, ensuring gender equality, the rule of law, good governance, respect for human rights and fundamental freedoms;

                              (b)

                              to ensure that the modernised agreement with Chile is ambitious, comprehensive and balanced, delivering tangible benefits for the citizens, businesses and economies of both sides; to ensure that it is a frontrunner among the most advanced agreements the EU has concluded with third countries;

                              (c)

                              to strengthen the human rights dimension of EU-Chile cooperation in the light of the 2016-2020 EU-Chile human rights strategy; to include a joint commitment to the protection and promotion of human rights, fundamental freedoms, gender equality, and the rights of minorities, such as the LGBTI community, and indigenous people, with enforceable mechanisms for monitoring, regular reporting and dispute settlement; to encourage Chile to find a solution to matters with the native Mapuche people and other indigenous people; to continue the practice of including a human rights clause in all future Association Agreements; to continue the regular dialogue between the EU and Chile on human rights, with the aim of strengthening the institutional framework and public policies to promote human rights, including through multilateral cooperation;

                              (d)

                              to encourage Chile to ensure due process of law and fair judicial proceedings in full accordance with international standards;

                              (e)

                              to aim to foster sustainable socio-economic development, fight poverty and reduce inequality levels in the light of Chile’s commitment to attaining the SDGs under the 2030 Agenda;

                              (f)

                              to support Chile in improving educational standards and educational programmes, ensuring people with the lowest incomes have full access to higher education; to strengthen the link between universities and the labour market, bridging skill mismatches and promoting youth employment;

                              (g)

                              to encourage the protection of social and environmental rights, and to ensure an effective implementation of the conventions of the International Labour Organisation (ILO) and the eradication of forced and child labour;

                        Multilateralism and regional and international cooperation

                              (h)

                              to strengthen dialogue and cooperation on regional and global challenges, such as organised crime, drug trafficking, rising inequality, migration, terrorism and climate change, including the implementation of the 2030 Agenda; to support cooperation between the EU and Chile on the management of migration and to establish readmission mechanisms, including for stateless persons and nationals from third countries;

                              (i)

                              to recall the importance of the multilateral agenda and that any bilateral negotiation must not undermine the ambition to achieve progress multilaterally;

                              (j)

                              to contribute to the strengthening of multilateralism and international cooperation in order to promote international security and tackle global challenges effectively; to enhance coordination on the positions taken by both sides in international organisations and fora;

                              (k)

                              to encourage Chile to continue supporting regional integration and cooperation schemes, most importantly the Pacific Alliance, in view of its encouraging results as a real and active driver of economic integration between the members of the region, but also UNASUR and the Community of Latin American and Caribbean States (CELAC); to examine the possibility of the EU gaining an observer status in the Pacific Alliance;

                        Political dialogue and cooperation

                              (l)

                              to provide for meaningful regular dialogue on all matters of relevance, building on and extending the existing formats; to mobilise available resources through the Partnership Instrument (PI) with a view to achieving strategic objectives;

                              (m)

                              to provide for a close cooperation in the area of security and defence, particularly regarding conflict prevention, crisis management, maritime security, disarmament and non-proliferation; to enable an enhanced participation of Chile in EU common security and defence policy (CSDP) missions and operations;

                              (n)

                              to allow for increased cooperation in the fight against terrorism, organised crime and cybercrime, and on the prevention of radicalisation and cross-border crime, without undermining civil liberties and fundamental rights; to take action in the context of the global fight against terrorism by stepping up mechanisms, measures and bodies for global and regional cooperation in accordance with international law and the principles of the Charter of the United Nations;

                              (o)

                              to enhance cooperation on the fight against corruption, money laundering and tax evasion; to include provisions on tax good governance and transparency standards that reaffirm the parties’ commitment to implementing international standards in the fight against tax avoidance and tax evasion;

                              (p)

                              to recall that corruption undermines human rights, equality, social justice, trade and fair competition, thereby impeding economic growth; to include specific sections outlining clear and strong commitments and measures to combat corruption in all its forms and to implement international standards and multilateral anti-corruption conventions;

                              (q)

                              to facilitate mobility between the EU and Chile; to enhance youth and student exchanges, scholarship programmes and training courses, including through the ERASMUS+ programme; to make further efforts towards the full mutual recognition of academic qualifications and the modernisation, accessibility and internationalisation of higher education;

                              (r)

                              to promote the transfer of scientific and technological knowledge and step up cooperation in the field of research and cooperation, making full use of existing programmes, such as Horizon 2020;

                              (s)

                              to promote and strengthen relations in the field of international cooperation, building on the Memorandum of Understanding on International Cooperation signed in 2015; to create innovate mechanisms that broaden and strengthen triangular and regional cooperation with third parties within and outside Latin America through programmes such as EUROsociAL+ and Euroclima+, and cooperation on drug policies such as COPOLAD;

                              (t)

                              to develop a methodology to show the effects of the modernised agreement on men and women and to use its results as a basis for designing policies to achieve gender balance;

                              (u)

                              to reaffirm the joint commitment to the Paris Climate Agreement and to the 2030 Agenda, and to provide for close cooperation between the EU and Chile on environmental protection and the fight against climate change; to strengthen the partnership regarding technical and policy cooperation in key environmental areas, including CO2 emissions in international transport, the conservation of biodiversity, and sustainable production and consumption; to encourage enhanced cooperation on the circular economy in order to improve resource efficiency, a sustainable use of natural resources, eco-innovation and water management; to increase support for projects to mitigate the effects of climate change;

                              (v)

                              to strengthen cooperation on research and development and on the use of the EU Copernicus programme in the field of satellite earth observation data for environmental purposes;

                              (w)

                              to foster cultural cooperation and to support diaspora both in Chile and the EU, with the objective of supporting foreign investments in both the EU and Chile;

                              (x)

                              to reaffirm access to water as a human right;

                        Institutional provisions

                              (y)

                              to ensure that the Association Agreement is built upon strong parliamentary participation, strengthening the current provisions and mechanisms of cooperation to enable increased input into and scrutiny of its implementation, notably through the existing inter-parliamentary format of the JPC; to provide for the possibility of the JPC requesting relevant information on the implementation of the Association Agreement;

                              (z)

                              to ensure the appropriate involvement of civil society both during the negotiations and in the implementation phase of the Association Agreement, including but not limited to the Joint Consultative Committee; stresses the need to establish an institutionalised mechanism to enable political dialogue involving civil society organisations in both regions;

                              (aa)

                              to keep Parliament immediately and fully informed at all stages of the negotiations, in line with Article 218(10) of the TFEU; this includes providing Parliament with negotiating texts and minutes of each negotiating round; welcomes, in this regard, the decision of the Council of 22 January 2018 to publish the negotiating mandate given to the Commission and the VP/HR in November 2017;

                              (ab)

                              to take the recent publication of the negotiating directives as an important precedent and to commit to publishing all negotiating directives for international agreements in the future;

                              (ac)

                              to expedite the negotiations on the Association Agreement with a view to enabling its ratification by Parliament before the end of the current European legislature;

                              (ad)

                              to ensure respect, at all levels, for the long-standing practice of not provisionally applying the new agreement until Parliament has given its consent;

                  2.

                  Instructs its President to forward this recommendation to the Council, the Commission and the Vice-President of the Commission / High Representative of the Union for Foreign Affairs and Security Policy, and to the President, Government and Parliament of the Republic of Chile.

         (1)  Texts adopted, P8_TA(2017)0354.

         (2)  Texts adopted, P8_TA(2017)0345.


title: Recommendation of the European Central Bank of 17 January 2020 on dividend distribution policies (ECB/2020/1)2020/C 30/01

text:
               29.1.2020

               EN

               Official Journal of the European Union

               C 30/1

      RECOMMENDATION OF THE EUROPEAN CENTRAL BANK
      of 17 January 2020
      on dividend distribution policies
      (ECB/2020/1)
      (2020/C 30/01)
      THE GOVERNING COUNCIL OF THE EUROPEAN CENTRAL BANK,
      Having regard to the Treaty on the Functioning of the European Union, and in particular Article 127(6) and Article 132 thereof,
      Having regard to the Statute of the European System of Central Banks and of the European Central Bank, and in particular Article 34 thereof,
      Having regard to Council Regulation (EU) No 1024/2013 of 15 October 2013 conferring specific tasks on the European Central Bank concerning policies relating to the prudential supervision of credit institutions (1), and in particular Article 4(3) thereof,
      Having regard to Regulation (EU) No 468/2014 of the European Central Bank of 16 April 2014 establishing the framework for cooperation within the Single Supervisory Mechanism between the European Central Bank and national competent authorities and with national designated authorities (SSM Framework Regulation) (ECB/2014/17) (2),
      Whereas:
      Credit institutions need to continue preparing for a timely and full application of Regulation (EU) No 575/2013 of the European Parliament and of the Council (3) and Directive 2013/36/EU of the European Parliament and of the Council (4), and prepare for the expiration of the transitional period provided by the Regulation (EU) 2017/2395 of the European Parliament and of the Council (5) to mitigate the potentially significant negative impact on Common Equity Tier 1 capital resulting from expected credit loss accounting under IFRS 9 in a challenging macroeconomic and financial environment, which exerts pressure on credit institutions’ profitability and, as a result, on their capacity to build up their capital bases. Moreover, while credit institutions need to finance the economy, a conservative distribution policy is part of an adequate risk management and sound banking system. The same method that was set out in Recommendation ECB/2019/1 of the European Central Bank (6) should be applied,
      HAS ADOPTED THIS RECOMMENDATION:

         I.

                  1.

                  Credit institutions should establish dividend policies using conservative and prudent assumptions in order, after any distribution, to satisfy the applicable capital requirements and the outcomes of the supervisory review and evaluation process (SREP).

                              (a)

                              Credit institutions are required to satisfy the applicable minimum capital requirements (‘Pillar 1 requirements’) at all times. This includes a Common Equity Tier 1 capital ratio of 4,5 %, a Tier 1 capital ratio of 6 % and a total capital ratio of 8 % as provided for by Article 92 of Regulation (EU) No 575/2013.

                              (b)

                              Moreover, credit institutions are required to satisfy at all times the capital requirements that are imposed by the decision following the SREP in application of Article 16(2)(a) of Regulation (EU) No 1024/2013 and which go beyond the Pillar 1 requirements (‘Pillar 2 requirements’).

                              (c)

                              Credit institutions are also required to satisfy the combined buffer requirement as defined in Article 128(6) of Directive 2013/36/EU.

                              (d)

                              Credit institutions are also required to satisfy their required ‘fully loaded’ (7) Common Equity Tier 1 capital ratio, their Tier 1 capital ratio and their total capital ratio by the applicable full phase-in date. This refers to the full application of the abovementioned ratios after application of the transitional provisions and the combined buffer requirement as defined in Article 128(6) of Directive 2013/36/EU. The transitional provisions are set out in Title XI of Directive 2013/36/EU and in Part Ten of Regulation (EU) No 575/2013.

                              (e)

                              Credit institutions that decided to apply the arrangements set out in Regulation (EU) 2017/2395 during the transitional period are also required to satisfy their ‘fully loaded’ Common Equity Tier 1 capital ratio by the end of the transitional period provided by that Regulation.

                        These requirements are to be met on a consolidated, and if applicable, on a sub-consolidated level, as well as on an individual basis unless the application of prudential requirements has been waived on an individual basis, as provided for in Articles 7 and 10 of Regulation (EU) No 575/2013.

                  2.

                  With regard to credit institutions paying dividends (8) in 2020 for the financial year 2019, the ECB recommends that:

                              (a)

                              Category 1: Credit institutions that (i) satisfy the applicable capital requirements as referred to in paragraph 1(a), (b) and (c); and (ii) have already reached their fully loaded ratios as referred to in paragraphs 1(d) and 1(e), as applicable, as at 31 December 2019 should distribute their net profits in dividends in a conservative manner to enable them to continue to fulfil all requirements and outcomes of the SREP even in the case of deteriorated economic and financial conditions;

                              (b)

                              Category 2: Credit institutions that satisfy the applicable capital requirements as referred to in paragraph 1(a), (b) and (c) as at 31 December 2019, but have not reached their fully loaded ratios as referred to in paragraphs 1(d) and 1(e), as applicable, as at 31 December 2019 should distribute their net profits in dividends in a conservative manner to enable them to continue to fulfil all requirements and outcomes of SREP, even in the case of deteriorated economic and financial conditions. Furthermore, they should in principle only pay-out dividends to the extent that paragraph 1(d) is also fulfilled and, at a minimum, a linear (9) path towards the required fully loaded capital requirements as referred to in paragraph 1(e) and outcomes of the SREP is secured;

                              (c)

                              Category 3: Credit institutions in breach of the requirements referred to in paragraph 1(a), (b) or (c) should in principle not distribute any dividend.

                        Credit institutions that are not able to comply with this Recommendation because they consider themselves legally required to pay-out dividends should immediately contact their joint supervisory team.
                  Credit institutions in categories 1, 2, and 3 as referred to in paragraph 2(a), (b) and (c) are also expected to meet Pillar 2 guidance. If a credit institution operates or expects to operate below Pillar 2 guidance, it should immediately contact its joint supervisory team. The ECB will review the reasons why the credit institution’s capital level has fallen, or is expected to fall, and will consider taking appropriate and proportionate institution-specific measures.
                  In their dividend policy and capital management, institutions are also expected to take into account the potential impact on capital demand due to future changes in the Union’s legal, regulatory and accounting frameworks. In the absence of specific information to the contrary, the future Pillar 2 requirements and Pillar 2 guidance used in capital planning are expected to be at least as high as the current levels.

         II.

      This Recommendation is addressed to significant supervised entities and significant supervised groups as defined in points (16) and (22) of Article 2 of Regulation (EU) No 468/2014 (ECB/2014/17).

         III.

      This Recommendation is also addressed to the national competent authorities and designated authorities with regard to less significant supervised entities and less significant supervised groups as defined in points (7) and (23) of Article 2 of Regulation (EU) No 468/2014 (ECB/2014/17). The national competent and designated authorities are expected to apply this Recommendation to such entities and groups, as deemed appropriate (10).

         Done at Frankfurt am Main, 17 January 2020.

               The President of the ECB

            Christine LAGARDE

         (1)  OJ L 287, 29.10.2013, p. 63.

         (2)  OJ L 141, 14.5.2014, p. 1.

         (3)  Regulation (EU) No 575/2013 of the European Parliament and of the Council of 26 June 2013 on prudential requirements for credit institutions and investment firms and amending Regulation (EU) No 648/2012 (OJ L 176, 27.6.2013, p. 1).

         (4)  Directive 2013/36/EU of the European Parliament and of the Council of 26 June 2013 on access to the activity of credit institutions and the prudential supervision of credit institutions and investment firms, amending Directive 2002/87/EC and repealing Directives 2006/48/EC and 2006/49/EC (OJ L 176, 27.6.2013, p. 338).

         (5)  Regulation (EU) 2017/2395 of the European Parliament and of the Council of 12 December 2017 amending Regulation (EU) No 575/2013 as regards transitional arrangements for mitigating the impact of the introduction of IFRS 9 on own funds and for the large exposures treatment of certain public sector exposures denominated in the domestic currency of any Member State (OJ L 345, 27.12.2017, p. 27).

         (6)  Recommendation ECB/2019/1 of the European Central Bank of 7 January 2019 on dividend distribution policies (OJ C 11, 11.1.2019, p. 1).

         (7)  All buffers at fully loaded levels.

         (8)  Credit institutions may have various legal forms, e.g. listed companies and non-joint stock companies such as mutuals, cooperatives or savings institutions. The term ‘dividend’ as used in this recommendation refers to any type of cash pay-out that is subject to the approval of the general assembly.

         (9)  In practice, this means that for the remainder of the transitional period, credit institutions should in principle retain at least the pro rata amount per year of the gap towards their fully loaded Common Equity Tier 1 capital ratio, their Tier 1 capital ratio and their total capital ratio, as referred to in paragraph 1(e).

         (10)  If this Recommendation is applied to less significant supervised entities and less significant supervised groups that consider themselves unable to comply because they regard themselves legally required to pay out dividends, they should immediately contact their national competent authorities.


title: Council Recommendation of 20 July 2020 on the 2020 National Reform Programme of Belgium and delivering a Council opinion on the 2020 Stability Programme of Belgium 2020/C 282/01

text:
               26.8.2020

               EN

               Official Journal of the European Union

               C 282/1

      COUNCIL RECOMMENDATION
      of 20 July 2020
      on the 2020 National Reform Programme of Belgium and delivering a Council opinion on the 2020 Stability Programme of Belgium
      (2020/C 282/01)
      THE COUNCIL OF THE EUROPEAN UNION,
      Having regard to the Treaty on the Functioning of the European Union, and in particular Articles 121(2) and 148(4) thereof,
      Having regard to Council Regulation (EC) No 1466/97 of 7 July 1997 on the strengthening of the surveillance of budgetary positions and the surveillance and coordination of economic policies (1), and in particular Article 5(2) thereof,
      Having regard to the recommendation of the European Commission,
      Having regard to the resolutions of the European Parliament,
      Having regard to the conclusions of the European Council,
      Having regard to the opinion of the Employment Committee,
      Having regard to the opinion of the Economic and Financial Committee,
      Having regard to the opinion of the Social Protection Committee,
      Having regard to the opinion of the Economic Policy Committee,
      Whereas:

                  (1)

                  On 17 December 2019, the Commission adopted the Annual Sustainable Growth Strategy, marking the start of the 2020 European Semester for economic policy coordination. It took due account of the European Pillar of Social Rights, proclaimed by the European Parliament, the Council and the Commission on 17 November 2017. On 17 December 2019, on the basis of Regulation (EU) No 1176/2011 of the European Parliament and of the Council (2), the Commission also adopted the Alert Mechanism Report, in which it did not identify Belgium as one of the Member States for which an in-depth review would be carried out. On the same date, the Commission also adopted a recommendation for a Council recommendation on the economic policy of the euro area.

                  (2)

                  The 2020 country report for Belgium was published on 26 February 2020. It assessed Belgium’s progress in addressing the country-specific recommendations adopted by the Council on 9 July 2019 (3) (‘the 2019 country-specific recommendations’), the follow-up given to the country-specific recommendations adopted in previous years and Belgium’s progress towards its national Europe 2020 targets.

                  (3)

                  On 11 March 2020, the World Health Organization officially declared the COVID-19 outbreak a global pandemic. It is a severe public health emergency for citizens, societies and economies. It is putting national health systems under severe strain, disrupting global supply chains, causing volatility in financial markets, triggering consumer demand shocks and having negative effects across various sectors. It is threatening people’s jobs and incomes as well as companies’ business. It has delivered a major economic shock that is already having serious repercussions in the Union. On 13 March 2020, the Commission adopted a communication calling for a coordinated economic response to the crisis, involving all actors at national and Union level.

                  (4)

                  Several Member States have declared a state of emergency or introduced emergency measures. Any emergency measures should be strictly proportionate, necessary, limited in time, and in line with European and international standards. They should be subject to democratic oversight and independent judicial review.

                  (5)

                  On 20 March 2020, the Commission adopted a communication on the activation of the general escape clause of the Stability and Growth Pact. The general escape clause, as set out in Articles 5(1), 6(3), 9(1) and 10(3) of Regulation (EC) No 1466/97 and Articles 3(5) and 5(2) of Council Regulation (EC) No 1467/97 (4), facilitates the coordination of budgetary policies in times of severe economic downturn. In its communication of 20 March 2020, the Commission considered that, given the expected severe economic downturn resulting from the COVID-19 pandemic, the conditions for the activation of the general escape clause had been met and asked the Council to endorse this conclusion. On 23 March 2020, the ministers of finance of the Member States agreed with the assessment of the Commission. They agreed that the severe economic downturn requires a resolute, ambitious and coordinated response. The activation of the general escape clause allows for a temporary departure from the adjustment path towards the medium-term budgetary objective, provided that this does not endanger fiscal sustainability in the medium term. For the corrective arm, the Council may also decide, on a recommendation from the Commission, to adopt a revised fiscal trajectory. The general escape clause does not suspend the procedures of the Stability and Growth Pact. It allows Member States to depart from the budgetary requirements that would normally apply while enabling the Commission and the Council to undertake the necessary policy coordination measures within the framework of the Pact.

                  (6)

                  Continued action is required to limit and control the spread of the COVID-19 pandemic, strengthen the resilience of the national health systems, mitigate the socioeconomic consequences of the pandemic through supportive measures for business and households, and ensure adequate health and safety conditions at the workplace with a view to resuming economic activity. The Union should fully use the various tools at its disposal to support Member States’ efforts in those areas. In parallel, Member States and the Union should work together to prepare the measures necessary to bring about a return to the normal functioning of our societies and economies and to sustainable growth, integrating, inter alia, the green transition and the digital transformation, and drawing lessons from the crisis.

                  (7)

                  The COVID-19 crisis has highlighted the flexibility that the internal market offers to adapt to extraordinary situations. However, in order to ensure a swift and smooth transition to the recovery phase and the free movement of goods, services and workers, exceptional measures that prevent the internal market from functioning normally should be removed as soon as they are no longer indispensable. The current crisis has shown the need for crisis preparedness plans in the health sector. Improved purchasing strategies, diversified supply chains and strategic reserves of essential supplies are among the key elements for developing broader crisis preparedness plans.

                  (8)

                  The Union legislator has already amended the relevant legislative frameworks by means of Regulations (EU) 2020/460 (5) and (EU) 2020/558 (6) of the European Parliament and of the Council to allow Member States to mobilise all unused resources from the European Structural and Investment Funds so they can address the exceptional effects of the COVID-19 pandemic. Those amendments will provide additional flexibility, as well as simplified and streamlined procedures. To alleviate cash-flow pressures, Member States can also benefit from a 100 % co-financing rate from the Union budget in the 2020-2021 accounting year. Belgium is encouraged to make full use of those possibilities to help the individuals and sectors most affected.

                  (9)

                  The socioeconomic consequences of the COVID-19 pandemic are likely to be unevenly distributed across regions because of different specialisation patterns. This entails a substantial risk of widening inter- and intra-regional disparities within Belgium. Combined with the risk of a temporary unravelling of the convergence process between Member States, the current situation calls for targeted policy responses.

                  (10)

                  On 30 April 2020, Belgium submitted its 2020 National Reform Programme and its 2020 Stability Programme. In order to take account of their interlinkages, the two programmes have been assessed at the same time.

                  (11)

                  Belgium is currently in the preventive arm of the Stability and Growth Pact and subject to the debt rule.

                  (12)

                  On 13 July 2018, the Council recommended Belgium to ensure that the nominal growth rate of net primary government expenditure (7) does not exceed 1,8 % in 2019, corresponding to an annual structural adjustment of 0,6 % of gross domestic product (GDP). As Belgium was assessed to qualify for the requested temporary deviation of 0,5 % of GDP under the structural reform clause, the required structural adjustment for 2019 was reduced to 0,1 % of GDP, corresponding to a nominal growth rate of net primary expenditure that does not exceed 2,8 % in 2019. The Commission’s overall assessment confirms a significant deviation from the recommended adjustment path towards the medium-term budgetary objective in 2019 and over 2018 and 2019 taken together. This is a relevant factor in the Commission report prepared in accordance with Article 126(3) of the Treaty assessing Belgium’s compliance with the debt criterion in 2019.

                  (13)

                  In its 2020 Stability Programme, the federal government plans the headline balance to deteriorate from a deficit of 1,9 % of GDP in 2019 to a deficit of 7,5 % of GDP in 2020. After decreasing to 98,6 % of GDP in 2019, the general government debt-to-GDP ratio is expected to increase to around 115 % in 2020 according to the 2020 Stability Programme. The macroeconomic and fiscal outlook is affected by high uncertainty because of the COVID-19 pandemic.

                  (14)

                  In response to the COVID-19 pandemic, and as part of a coordinated Union approach, Belgium has adopted timely budgetary measures to increase the capacity of its health system, contain the pandemic, and provide relief to those individuals and sectors that have been particularly affected. According to the 2020 Stability Programme, those budgetary measures amounted to 2,3 % of GDP. The measures include a federal temporary unemployment benefit scheme, replacement income for self-employed, federal provision for crisis-related expenditure, various regional allowances for companies or individuals and sectoral subsidies. The quantification of the deficit-increasing measures broadly coincides with the Commission’s estimates, once the different treatment of the cost of automatic stabilisers is taken into account. In addition, Belgium has announced measures that, while not having a direct budgetary impact, will contribute to providing liquidity support to businesses. Those measures concern both federal and regional loan guarantees for companies and the self-employed, which the 2020 Stability Programme estimates at 11,8 % of GDP. Tax deferrals, in particular for personal and corporate income taxes and social contributions, have also been implemented but the 2020 Stability Programme does not quantify them. Overall, the measures taken by Belgium are in line with the guidelines set out in the Commission communication of 13 March 2020. The full implementation of the emergency measures and of supportive fiscal measures, followed by a refocusing of fiscal policies towards achieving prudent medium-term fiscal positions when economic conditions allow, will contribute to preserving fiscal sustainability in the medium term.

                  (15)

                  Based on the Commission 2020 spring forecast under unchanged policies, Belgium’s general government balance is forecast at -8,9 % of GDP in 2020 and -4,2 % of GDP in 2021. The general government debt ratio is projected to reach 113,8 % of GDP in 2020.

                  (16)

                  On 20 May 2020, the Commission issued a report prepared in accordance with Article 126(3) of the Treaty because of Belgium’s non-compliance with the debt rule in 2019 and the planned breach of the 3 %-of-GDP deficit threshold in 2020. Overall, the Commission’s analysis suggests that the deficit and debt criteria as defined in the Treaty and in Regulation (EC) No 1467/97 have not been fulfilled.

                  (17)

                  In response to the COVID-19 pandemic, the Belgian authorities have adopted a comprehensive package of measures to mitigate the social and economic impact of the sharp economic downturn. A EUR 50 billion guarantee scheme is in place for new short-term credit granted to viable businesses. The regions and communities have also introduced guarantees for bridge and regular business loans, liquidity support to businesses in the form of direct loans and measures to financially support businesses most affected by the COVID-19 crisis. The reimbursement of existing mortgages and business loans can be extended. A temporary moratorium on bankruptcy proceedings for hard-hit businesses is available. Different incentives to encourage more workers to stay at work or take up work again to ensure business continuity have been introduced. Social security contributions and tax payments, such as value added tax, corporate and personal income taxes, may be deferred or are exempted in some cases. The federal government has made the temporary unemployment scheme due to force majeure available for companies affected by the COVID-19 crisis, with increased benefits. A monthly replacement income is available for the self-employed whose activity has been interrupted for at least seven consecutive days. The degressivity of unemployment benefits is temporarily frozen. The federal government is also preparing an additional set of measures to counter insolvency of businesses, such as a corporate and personal income tax exemption for the 2020 fiscal year.

                  (18)

                  The Belgian health system performs well in providing acute care in hospitals. Nonetheless, the COVID-19 pandemic has highlighted a number of shortcomings in the health system’s resilience when faced with a severe public health crisis. This suggests that Belgium faces a structural shortage of health workers that needs to be addressed. In the immediate future, ensuring sufficient critical medical products, including protective equipment in particular for health workers and workers in other exposed occupations, will remain key. A public healthcare strategy, which is fully coordinated with prevention and long-term care policies, will remain essential in the short and medium term to ensure that public health crisis such as the COVID-19 pandemic are effectively managed. The smooth implementation of the Inter-Ministerial Conference Agreement on public healthcare to make hospital staff and infrastructure (a federal competence) temporarily available to long-term care facilities (a community competence) during the COVID-19 crisis is an important building block in this context.

                  (19)

                  After reaching record high levels of employment in 2019 and in the beginning of 2020, the COVID-19 crisis has abruptly halted employment growth in Belgium. Belgium’s existing public income support schemes, such as the system of temporary unemployment for employees and the bridging right for self-employed, provide partial compensation for income losses due to reduced working time. These short-time working schemes play a major role in reducing the impact of lowered production output on employment levels. Nevertheless, unemployment is expected to rise to 7 % in 2020 and to reduce somewhat to 6,6 % in 2021. In order to prevent that the increase in unemployment becomes structural, further efforts will be needed to strengthen the effectiveness of the existing active labour market policies, which remain low as a high share of unemployed participating in active labour market measures coexists with a low transition from unemployment to employment. Particular attention should be paid to ensuring a comprehensive approach for those furthest from the labour market that are likely to be the most affected by the negative socioeconomic consequences of the COVID-19 crisis. Vulnerable groups include in particular the low-skilled, people with a migrant background and people with disabilities. In addition, the labour tax wedge remains on average high at all wage levels, except for the very low wage earners (50 % of the average wage). This is an important driver of the relatively high cost of labour, which may negatively affect labour demand, in particular for low productivity jobs.

                  (20)

                  Labour mobility should be fostered towards the sectors where there are major shortages, including health, information and communication technologies (ICT) and technical and professional occupations. This will be accompanied with important needs in terms of re- and upskilling and will require to increase the level of adult participation in education and training, including by using periods of reduced working hours. There are concerns that the existing training incentives schemes do not reach those that would benefit the most, such as the low-skilled, older workers and people with a migrant background. Poor language skills are a major barrier, in particular on the bilingual Brussels labour market. The communities are taking action to increase the uptake of science, technology, engineering and mathematics studies, but there is scope for more comprehensive strategies to meet future labour market demand. The overall level of digital skills is good, but remains stagnant. Among young people, and in particular among those with low education, the level of digital skills is lower than the Union average and has been worsening over the past years. Availability of adequate equipment and internet connection for all students accompanied by the necessary teacher training and mentoring schemes, is essential to ensure access to distance learning. This is also needed to ensure existing inequalities in the education system are not exacerbated due to the COVID-19 crisis.

                  (21)

                  Belgium has adopted many schemes to support the liquidity of firms, including a State guarantee scheme to loans and several regional schemes notified under the temporary framework for State aid measures to support the economy in the current COVID-19 pandemic. An efficient and effective implementation of such schemes, including by intermediaries, is key to ensure that firms, and especially small and medium-sized enterprises (SMEs) and self-employed, benefit from them in order to protect them and to allow for a faster recovery. In the process of designing and implementing these measures, the resilience of the banking sector, including the intermediaries, needs to be taken into account.

                  (22)

                  Despite government efforts, the administrative burden on firms weights some EUR 7 billion per year (1,6 % of GDP), most of which comes from complying with tax and labour law. The tax system is complex because of various tax expenditure. The payroll management for a company is complex, in particular for companies that need to manage the various regional systems. Businesses experience increasing delays in payment by public authorities contributing to businesses’ failures and a deteriorating business climate. There are long delays for building permits, electricity and water connections. The process of transferring a property is among the slowest and the most expensive in the Union. There are major regional discrepancies in entry requirements for craft/construction services. The cumulated effect of high regulation, high wage costs and labour market rigidities is weighing on the performance of the retail sector. Rules on shop opening hours, sales promotions, discounts and distribution channels for non-prescription medicines weight on the operational environment for retailers. The roll-out of 5G could be held back amongst others by strict environmental and health standards for radiation protection (in particular in Brussels) varying in each region, by expensive antennae taxes in Brussels and the long delivery time of permits to deploy antennae. In the area of insolvency, there is no special simplified out-of-court settlement procedure for SMEs and only debtors can start insolvency procedures. Despite gradual improvements, insufficient digitalisation and a lack of resources remain a challenge for the justice system. Lengthy proceedings in administrative justice cause significant delays for public procurement and building permit cases. Key enforcers in market surveillance, competition and rail transport are understaffed to perform their tasks.

                  (23)

                  To foster the economic recovery, it will be important to front-load mature public investment projects and promote private investment, including through relevant reforms, which would also help industrial transition. As expressed in its 2021-2030 National Energy and Climate Plan (NECP), Belgium has significant investment needs in sustainable transport, in particular to tackle congestion and electric mobility. Before the COVID-19 crisis, Belgian regions had announced major multi-annual transport infrastructure plans. Major investment is taking place in suburban rail around Brussels, signalling, port and cross-border rail connections. Significant investments are also underway in Brussels metro, tram and bus infrastructure. The NECP also identified important investment needs in renewable and flexible power generation, interconnections, smart grids, storage and in energy efficiency to meet European energy and climate targets, to realise Belgium’s legal commitment to fully phasing out nuclear energy by 2025 and to renovate 80 % of the building stock which was built before the introduction of energy norms. In contrast to the relatively high private research and development (R & D) intensity, the public R & D intensity remains slightly below that of most Member States with a similar level of economic development. Belgium risks lagging behind in 5G deployment as it is not planning to assign the 5G pioneer bands within the deadlines provided in Union legislation. In March 2020, the Belgian authorities opened a public consultation for temporary national licenses for the 200 MHz of available spectrum in the band 3.6-3.8 GHz as a temporary solution. The programming of the Just Transition Fund, which is the subject of a Commission proposal, for the period 2021-2027 could help Belgium to address some of the challenges posed by the transition to a climate-neutral economy, in particular in the territories covered by Annex D to the 2020 country report. This would allow Belgium to make the best use of that Fund.

                  (24)

                  While the country-specific recommendations set out in this Recommendation (‘the 2020 country-specific recommendations’) focus on tackling the socioeconomic impacts of the COVID-19 pandemic and facilitating the economic recovery, the 2019 country-specific recommendations also covered reforms that are essential to address medium- to long-term structural challenges. The 2019 country-specific recommendations remain pertinent and will continue to be monitored throughout next year’s European Semester. That includes the 2019 country-specific recommendations regarding investment-related economic policies. All of the 2019 country-specific recommendations should be taken into account for the strategic programming of post-2020 cohesion policy funding, including for mitigating measures and exit strategies with regard to the current crisis.

                  (25)

                  The European Semester provides the framework for continuous economic and employment policy coordination in the Union, which can contribute to a sustainable economy. In their 2020 National Reform Programmes, Member States have taken stock of progress made in the implementation of the United Nations Sustainable Development Goals (SDGs). By ensuring the full implementation of the 2020 country-specific recommendations, Belgium will contribute to the progress towards the SDGs and to the common effort of ensuring competitive sustainability in the Union.

                  (26)

                  Close coordination between economies in the economic and monetary union is key in achieving a swift recovery from the economic impact of the COVID-19 pandemic. As a Member State whose currency is the euro, Belgium should ensure that its policies remain consistent with the 2020 euro-area recommendations and coordinated with those of the other Member States whose currency is the euro, while taking into account political guidance from the Eurogroup.

                  (27)

                  In the context of the 2020 European Semester, the Commission has carried out a comprehensive analysis of Belgium’s economic policy and published it in the 2020 country report. It has also assessed the 2020 Stability Programme, the 2020 National Reform Programme and the follow-up given to the country-specific recommendations addressed to Belgium in previous years. The Commission has taken into account not only their relevance for sustainable fiscal and socioeconomic policy in Belgium, but also their compliance with Union rules and guidance, given the need to strengthen the Union’s overall economic governance by providing Union-level input into future national decisions.

                  (28)

                  In the light of this assessment, the Council has examined the 2020 Stability Programme and its opinion (8) is reflected in particular in recommendation (1) below,

            HEREBY RECOMMENDS that Belgium take action in 2020 and 2021 to:

                  1.

                  Take all necessary measures, in line with the general escape clause of the Stability and Growth Pact, to effectively address the COVID-19 pandemic, sustain the economy and support the ensuing recovery. When economic conditions allow, pursue fiscal policies aimed at achieving prudent medium-term fiscal positions and ensuring debt sustainability, while enhancing investment. Reinforce the overall resilience of the health system and ensure the supply of critical medical products.

                  2.

                  Mitigate the employment and social impact of the COVID-19 crisis, notably by promoting effective active labour market measures and fostering skills development.

                  3.

                  Ensure effective implementation of the measures to provide liquidity to assist SMEs and the self-employed and improve the business environment. Front-load mature public investment projects and promote private investment to foster the economic recovery. Focus investment on the green and digital transition, in particular on infrastructure for sustainable transport, clean and efficient production and use of energy, the circular economy, digital infrastructure, such as 5G and Gigabit Networks, and research and innovation.

         Done at Brussels, 20 July 2020.

               For the Council

               The President

            J. KLOECKNER

         (1)  OJ L 209, 2.8.1997, p. 1.

         (2)  Regulation (EU) No 1176/2011 of the European Parliament and of the Council of 16 November 2011 on the prevention and correction of macroeconomic imbalances (OJ L 306, 23.11.2011, p. 25).

         (3)  OJ C 301, 5.9.2019, p. 1.

         (4)  Council Regulation (EC) No 1467/97 of 7 July 1997 on speeding up and clarifying the implementation of the excessive deficit procedure (OJ L 209, 2.8.1997, p. 6).

         (5)  Regulation (EU) 2020/460 of the European Parliament and of the Council of 30 March 2020 amending Regulations (EU) No 1301/2013, (EU) No 1303/2013 and (EU) No 508/2014 as regards specific measures to mobilise investments in the healthcare systems of Member States and in other sectors of their economies in response to the COVID-19 outbreak (Coronavirus Response Investment Initiative) (OJ L 99, 31.3.2020, p. 5).

         (6)  Regulation (EU) 2020/558 of the European Parliament and of the Council of 23 April 2020 amending Regulations (EU) No 1301/2013 and (EU) No 1303/2013 as regards specific measures to provide exceptional flexibility for the use of the European Structural and Investments Funds in response to the COVID-19 outbreak (OJ L 130, 24.4.2020, p. 1).

         (7)  Net primary government expenditure comprises total government expenditure excluding interest expenditure, expenditure on Union programmes fully matched by Union funds revenue and non-discretionary changes in unemployment benefit expenditure. Nationally financed gross fixed capital formation is smoothed over a four-year period. Discretionary revenue measures or revenue increases mandated by law are factored in. One-off measures on both the revenue and expenditure sides are netted out.

         (8)  Under Article 5(2) of Regulation (EC) No 1466/97.