title: Recommendation of the European Systemic Risk Board of 27 May 2020 on monitoring the financial stability implications of debt moratoria, and public guarantee schemes and other measures of a fiscal nature taken to protect the real economy in response to the COVID‐19 pandemic (ESRB/2020/8) 2020/C 249/01

text:
               29.7.2020

               EN

               Official Journal of the European Union

               C 249/1

      RECOMMENDATION OF THE EUROPEAN SYSTEMIC RISK BOARD
      of 27 May 2020
      on monitoring the financial stability implications of debt moratoria, and public guarantee schemes and other measures of a fiscal nature taken to protect the real economy in response to the COVID‐19 pandemic
      (ESRB/2020/8)
      (2020/C 249/01)
      THE GENERAL BOARD OF THE EUROPEAN SYSTEMIC RISK BOARD,
      Having regard to the Treaty on the Functioning of the European Union,
      Having regard to Regulation (EU) No 1092/2010 of the European Parliament and of the Council of 24 November 2010 on European Union macro-prudential oversight of the financial system and establishing a European Systemic Risk Board (1), and in particular Article 3(2)(b), (d) and (f) and Articles 16 to 18 thereof,
      Having regard to Decision ESRB/2011/1 of the European Systemic Risk Board of 20 January 2011 adopting the Rules of Procedure of the European Systemic Risk Board (2), and in particular Article 15(3)(e) and Articles 18 to 20 thereof,
      Whereas:

                  (1)

                  The outbreak of the coronavirus (COVID-19) pandemic and the subsequent enforcement of containment measures represent a severe shock to European economies. Debt moratoria, and public guarantee schemes and other measures of a fiscal nature are being put in place by Member States to protect non-financial corporations and households from the effects of the pandemic. While these measures target the non-financial sector, they nevertheless have implications for financial stability.

                  (2)

                  The effectiveness of these measures in terms of preserving financial stability will depend on their size and design features. These need to be carefully monitored at the national level so that adjustments can be made in good time, using the flexibility that is provided by the Union’s temporary State aid framework to support the economy in the context of the COVID-19 outbreak (3).

                  (3)

                  Given the high degree of integration of Member State economies, the various measures implemented by one Member State will have an impact on other Member States through positive or negative spillovers. These spillovers should be taken into account in a comprehensive assessment of the Union-wide financial stability implications of the measures taken by national authorities to protect the real economy in response to the COVID-19 pandemic.

                  (4)

                  Ensuring the effectiveness of national measures in securing financial stability requires close monitoring and cooperation between national macroprudential authorities and national fiscal and supervisory authorities, in line with their respective competences. On 14 May 2020 the European Systemic Risk Board (ESRB) addressed a letter to the national fiscal authorities of the Union encouraging an intensified dialogue from an early stage between the relevant authorities at national level (4).

                  (5)

                  The ESRB is responsible for the macroprudential oversight of the financial system within the Union and contributes to the mitigation and prevention of systemic risks. For this purpose, the ESRB intends to monitor and regularly discuss the Union-wide financial stability implications of the national measures introduced to protect the real economy in response to the COVID-19 pandemic. The ESRB intends to focus particularly on cross-border and cross-sectoral implications. This monitoring should continue only as long as there is a potential impact of these measures on financial stability in the Union.

                  (6)

                  Monitoring the Union-wide financial stability implications of such measures will require the reporting of relevant national information by the national macroprudential authorities. Requests by the ESRB for relevant information from those authorities should take into consideration the principle of proportionality and avoid duplication of reporting requirements by focusing on information that is not available from other sources.

                  (7)

                  The ESRB intends to complement and enhance the monitoring and assessment that is being carried out at the national level. The aim of the ESRB is to foster an exchange of experiences and the early identification of cross-border and cross-sectoral issues. At a later stage, it will also take a coordinated view of the approaches to phasing-out the measures. For these purposes, the ESRB intends to establish a feedback channel to allow the sharing of information across reporting authorities.

                  (8)

                  This Recommendation does not create new reporting requirements for the financial services industry. To obtain information, the ESRB should rely on reporting by national macroprudential authorities of information that has been collected for the purpose of their national monitoring, which in turn would rely on reporting by national fiscal authorities and government agencies engaged in the delivery of the measures. The ESRB should also rely on data collected by its member institutions, in particular the European Banking Authority, the European Insurance and Occupational Pensions Authority, the European Central Bank and the Single Resolution Board.

                  (9)

                  This Recommendation is without prejudice to the monetary policy mandates of the central banks in the Union.

                  (10)

                  Recommendations of the ESRB are published after the addressees have been informed, and after the General Board has informed the Council of the European Union of its intention to issue a recommendation and having provided the Council with an opportunity to react,

            HAS ADOPTED THIS RECOMMENDATION:
      SECTION 1

         RECOMMENDATIONS

         Recommendation A – National monitoring of financial stability implications of measures taken to protect the real economy in response to the COVID-19 pandemic

      National macroprudential authorities are recommended to monitor and assess the financial stability implications of COVID-19 related measures taken by their Member States to protect the real economy, such as debt moratoria, and public guarantee schemes and other measures of a fiscal nature. For this purpose, it is recommended that national macroprudential authorities monitor the design features and uptake of these measures, as well as the possible implications for financial stability using key indicators, such as the following.

                  (a)

                  Design features and uptake of measures: in particular the volume; types of financial support (such as debt moratoria, loan guarantees, subsidised loans, or equity participations); beneficiaries and eligibility conditions; duration; and information on the use of the measure (e.g. volume and number of applications received and accepted).

                  (b)

                  Implications for financial stability: in particular the flow of credit to the real economy; the liquidity, solvency and indebtedness of the non-financial sector; and the financial soundness of the financial institutions, including observed and expected trends in non-performing loans and the ability to meet liquidity and capital requirements.

         Recommendation B – Reporting by national macroprudential authorities to the ESRB

      National macroprudential authorities are recommended to regularly report to the ESRB the information necessary for the ESRB to monitor and assess the implications of the national measures referred to in Recommendation A for financial stability in the Union. This should include information necessary to monitor and assess the cross-border and cross-sectoral implications, as made available to national macroprudential authorities through existing reporting arrangements with financial institutions and any additional information made available by fiscal authorities and other government agencies engaged in the delivery of the measures.
      SECTION 2

         IMPLEMENTATION

      1.   Definitions

      For the purposes of this Recommendation the following definition applies:

                  (a)

                  ‘national macroprudential authority’ means a national authority with the objectives, arrangements, tasks, powers, instruments, accountability requirements and other characteristics set out in Recommendation ESRB/2011/3 of the European Systemic Risk Board (5) or, where such authority has not been set up, a designated authority in accordance with Chapter 4 of Title VII of Directive 2013/36/EU of the European Parliament and of the Council (6) or Article 458(1) of Regulation (EU) No 575/2013 of the European Parliament and of the Council (7).

            2.   Criteria for implementation

                  1.

                  The following criterion applies to the implementation of Recommendations A and B.

                              (a)

                              Due regard should be paid to the principle of proportionality, taking into account the objective and the content of each recommendation.

                  2.

                  The following criterion applies to the implementation of Recommendation B.

                              (a)

                              The first report should be submitted by 31 July 2020.

            3.   Templates for reporting

      To ensure the coordination of reporting under Recommendation B, the ESRB will publish relevant templates by 30 June 2020.
      4.   Timeline for the follow-up

      In accordance with Article 17(1) of Regulation (EU) No 1092/2010, addressees must communicate to the European Parliament, the Council, the Commission and to the ESRB the actions undertaken in response to this recommendation or substantiate any inaction. Communications must be sent in compliance with the following timelines.
      1.   Recommendation A

      By 31 July 2020, the addressees are requested to deliver to the European Parliament, the Council, the Commission and to the ESRB the form in the Annex on the implementation of Recommendation A.
      2.   Recommendation B

      By 31 December 2020, the addressees are requested to deliver to the European Parliament, the Council, the Commission and to the ESRB the form in the Annex on the implementation of Recommendation B.
      5.   Amendments to the Recommendation

      The General Board will decide when this Recommendation needs to be amended. Such amendments include in particular the duration of the monitoring and reporting in Recommendations A and B.
      6.   Monitoring and assessment

                  1.

                  The General Board will assess the actions and justifications communicated by the addressees and, where appropriate, may decide that this Recommendation has not been followed and that an addressee has failed to provide adequate justification for its inaction.

                  2.

                  The methodology set out in the Handbook on the assessment of compliance with ESRB recommendations (8), which describes the procedure for assessing compliance with ESRB recommendations, does not apply.

         Done at Frankfurt am Main, 27 May 2020.

               The Head of the ESRB Secretariat,

               on behalf of the General Board of the ESRB

            Francesco MAZZAFERRO

         (1)  OJ L 331, 15.12.2010, p. 1.

         (2)  OJ C 58, 24.2.2011, p. 4.

         (3)  Communication from the Commission, Temporary framework for State aid measures to support the economy in the current COVID-19 outbreak (2020/C 91 I/01) (OJ C 91 I, 20.3.2020, p. 1), and the related documents on State aid rules and coronavirus available at https://ec.europa.eu/competition/state_aid/what_is_new/covid_19.html

         (4)  See letter dated 14 May 2020 from the ESRB President to the President and Members of the Economic and Financial Affairs Council, available at:
      https://www.esrb.europa.eu/pub/pdf/other/esrb.letter200514_ESRB_work_on_implications_to_protect_the_real_economy~e67a9f48ca.en.pdf.

         (5)  Recommendation ESRB/2011/3 of the European Systemic Risk Board of 22 December 2011 on the macro-prudential mandate of national authorities (OJ C 41, 14.2.2012, p. 1).

         (6)  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).

         (7)  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).

         (8)  Handbook on the assessment of compliance with ESRB recommendations, April 2016, available at https://www.esrb.europa.eu/pub/pdf/recommendations/160502_handbook.en.pdf

         ANNEX

            Communication of the actions undertaken in response to the recommendation

         1.   Details of addressee

                     Recommendation

                     Country of the Addressee

                     Institution

                     Name and contact details of the respondent

                     Date of communication

               2.   Communication of actions

                     Recommendation

                     Do you comply? (yes/no/not applicable)

                     Description of actions taken to ensure compliance

                     Justification for partial compliance or non-compliance

                     Recommendation A

                     Recommendation B

               3.   Notes

                     1.

                     This form is used for the communication required by Article 17(1) of Regulation (EU) No 1092/2010.

                     2.

                     Each addressee should submit the completed form to the ESRB via the ESRB Secretariat electronically via DARWIN in the dedicated folder or by email to notifications@esrb.europa.eu (The ESRB Secretariat will arrange for the transmission of the communications to the European Parliament, the Council and the Commission, on an aggregated basis.)

                     3.

                     Addressees are expected to provide all relevant information related to the implementation of the recommendation and the criteria for implementation, including information on the substance and timing of the actions taken.

                     4.

                     If an addressee only partially complies, it should provide a full explanation of the extent of non-compliance, as well as other details of partial compliance. The explanation should specify clearly the relevant parts of the recommendation which the addressees do not comply with.


title: Council Recommendation (EU) 2021/119 of 1 February 2021 amending Recommendation (EU) 2020/1475 on a coordinated approach to the restriction of free movement in response to the COVID-19 pandemic (Text with EEA relevance)

text:
               2.2.2021

               EN

               Official Journal of the European Union

               LI 36/1

      COUNCIL RECOMMENDATION (EU) 2021/119
      of 1 February 2021
      amending Recommendation (EU) 2020/1475 on a coordinated approach to the restriction of free movement in response to the COVID-19 pandemic
      (Text with EEA relevance)
      THE COUNCIL OF THE EUROPEAN UNION,
      Having regard to the Treaty on the Functioning of the European Union, and in particular Article 21(2), Article 168(6) and Article 292, first and second sentence thereof,
      Having regard to the proposal from the European Commission,
      Whereas:

                  (1)

                  On 13 October 2020, the Council adopted Council Recommendation (EU) 2020/1475 on a coordinated approach to the restriction of free movement in response to the COVID-19 pandemic (1). The Recommendation established a coordinated approach on the following key points: the application of common criteria and thresholds when deciding whether to introduce restrictions to free movement, a mapping of the risk of COVID-19 transmission based on an agreed colour code, and a coordinated approach as to the measures, if any, which may appropriately be applied to persons moving between areas, depending on the level of risk of transmission in those areas.

                  (2)

                  Using the criteria and thresholds established in that Recommendation, the European Centre for Disease Prevention and Control has been publishing, once a week, a map of Member States, broken down by regions, in order to support Member States’ decision-making (2).

                  (3)

                  As provided for in recital 15 of that Recommendation, the Commission, supported by European Centre for Disease Prevention and Control, should, in view of the evolving epidemiological situation, regularly assess the criteria, data needs and thresholds outlined in this Recommendation, including whether other criteria should be considered or the thresholds adapted, and transmit its findings to the Council for its consideration, together with a proposal to amend the Recommendation.

                  (4)

                  Two factors impact the current development of the pandemic. On the one hand, since the beginning of 2021, mass vaccination is being rolled out and millions of Europeans have been vaccinated against COVID-19 already. However, as noted in the Communication from the Commission to the European Parliament, the European Council and the Council on a united front to beat COVID-19 (3), while infections rise and until vaccinations are administered on a scale required to turn the tide of the pandemic, continued vigilance, containment measures and public health controls will be required. In particular, the EU and Member States must act to contain the risk of a potentially harsher next wave of infections, characterised by the more transmissible new variants of the SARS-CoV-2 virus, which are already present across Europe.

                  (5)

                  The recent emergence of new variants of the virus is a serious cause for concern. While currently there is no evidence that these cause more severe disease, the variants appear to be somewhere between 50–70 % more transmissible (4). This means that the virus can spread more easily and more quickly, increasing the burden on overstretched healthcare systems. This is one likely cause for the substantial rises in cases in most Member States over recent weeks.

                  (6)

                  In its latest risk assessment on spread of the new SAR-CoV-2 variants of concern in the EU/EEA (5), the European Centre for Disease Prevention and Control states that the risk associated with the introduction and community spread of variants of concern has been increased to high/very high.

                  (7)

                  As one of the options to respond to this risk, the European Centre for Disease Prevention and Control recommends that in order to slow down the importation and spread of the new SARS-CoV-2 variants of concern, non-essential travel should be avoided. In addition to recommendations against non-essential travel, and restrictions on travel for those infected, travel measures such as the testing and quarantining of travellers should be maintained, in particular for travellers from areas with a higher incidence of the new variants. If sequencing is still insufficient to exclude the possibility of a higher incidence of the new variants, as per European Centre for Disease Prevention and Control guidance on genomic sequencing, proportionate travel measures should also be considered from areas where there is a continued high level of community transmission.

                  (8)

                  In view of the recommendations from the European Centre for Disease Prevention and Control, Recommendation (EU) 2020/1475 should therefore be amended accordingly.

                  (9)

                  In order to take into account the very high level of community transmission, possibly linked to the increased transmissibility of the new variants of concern, a new colour, dark red, should be added to the map published weekly by the European Centre for Disease Prevention and Control. This colour should indicate areas where the virus is circulating at very high levels, including because of more infectious variants of concern.

                  (10)

                  Member States should also take into account the prevalence of new SARS-CoV-2 variants of concern, while taking into account the level of genome sequencing carried out by other Member States. The Communication from the Commission to the European Parliament, the European Council and the Council on a united front to beat COVID-19 highlights the need for Member States to urgently increase genome sequencing to 5-10% of positive test results, if needed by using capacity of the European Centre for Disease Prevention and Control to identify the progression of the variants or detect new ones.

                  (11)

                  The high level of community transmission in most Member States means that travel will continue to pose a particular challenge. All non-essential travel, especially to and from high risk areas, should be strongly discouraged until the epidemiological situation has considerably improved, particularly in the light of the outbreak of new variants. Given that the risk of infection or transmission is similar for domestic and cross-border travel, Member States should ensure coherence between the measures applied to both types of non-essential travel.

                  (12)

                  In the oral conclusions drawn following the video conference of the members of the European Council on 21 January 2021 (6), the President of the European Council noted that borders need to stay open to ensure the functioning of the single market, including the flow of essential goods and services. No indiscriminate travel bans should be imposed. However, measures restricting non-essential travel in the EU may be needed to contain the spread of the virus. While upholding its principles, the Council may need to review its recommendations on intra-EU travel and non-essential travels into the EU in light of the risks posed by the new virus variants.

                  (13)

                  A coordinated approach aims to prevent the reintroduction of internal border controls. Border closures or blanket travel bans, as well as suspension of flights, land transport and water crossings, are not justified, as more targeted measures, such as mandatory quarantine or testing, have sufficient impact and cause less disruption. The system of ‘Green Lanes’ (7) should keep transport flows moving, in particular to ensure the free movement of goods and services, thus avoiding supply chain disruptions.

                  (14)

                  Any restrictions to the free movement of persons must continue to be applied in compliance with the general principles of Union law, in particular proportionality and non-discrimination, including on the basis of nationality. Any measures taken should thus not extend beyond what is strictly necessary to safeguard public health. Clear, timely and comprehensive information of the public remains crucial in order to ensure predictability, legal certainty and compliance by citizens. Restrictions should be adequately enforced and any sanctions laid down should be effective and proportionate.

                  (15)

                  On 11 January 2021, the Health Security Committee agreed recommendations for a common EU approach regarding isolation measures for COVID-19 patients and quarantine measures for contacts and travellers. The recommendations of the Health Security Committee (8) regarding quarantine measures for travellers should be applied by Member States when imposing travel-related quarantine. In particular, where quarantine requirements are imposed for travel from a high-risk area, shortening the required quarantine duration should be considered should a negative test be obtained after 5 to 7 days upon entry, unless the traveller develops symptoms.

                  (16)

                  Given the increase in COVID-19 testing capacity, Recommendation (EU) 2020/1475 should be amended to give Member States the option to require travellers coming from areas not classified as ‘green’ to do a test prior to departure.

                  (17)

                  In view of the high level of community transmission in areas to be classified as ‘dark red’, persons travelling from such areas for non-essential purposes should be required to undergo a test prior to departure as well as quarantine, in line with the recommendations of the Health Security Committee, after arrival at their destination. Where travellers are not quarantining at their place of residence, appropriate physical conditions for quarantine premises as well as the protection and provision of care for children in quarantine conditions should be ensured and be in line with the WHO Guidelines (9).

                  (18)

                  Where persons returning to their Member State of residence have been unable to undergo a test prior to departure, they should be allowed to undergo a test after arrival, in order to avoid that they are prevented from returning to their homes.

                  (19)

                  Given the high level of infections in ‘dark red’ areas, essential travellers should also be required to undergo a test for COVID-19 infection and quarantine, provided that this does not have a disproportionate impact on the exercise of their essential function or need, for example because the traveller’s exposure to the general population at destination is very limited. Where a Member State, taking into account the specific epidemiological situation, nevertheless requires tests for transport workers and service providers, this should not lead to transport disruptions (10). To maintain supply chains, quarantine requirements should not apply to transport staff while exercising this essential function.

                  (20)

                  Restrictions linked to cross-border travel are particularly disruptive for persons who cross them daily or frequently to go to work or school, visit close relatives, seek medical care, or to take care of loved ones. Such persons should not be required to undergo quarantine when crossing borders for this essential purpose, given the significant disruption this causes to people’s lives and livelihoods as well as the economy as a whole. As long as the epidemiological situation is comparable on both sides of the border, requiring such persons to undergo frequent tests merely because they cross a border appears unnecessary. Close coordination among Member States and cross-border regions will remain particularly important.

                  (21)

                  In view of the evolving epidemiological situation, the Commission, supported by the European Centre for Disease Prevention and Control, should continue to regularly assess the criteria, data needs and thresholds outlined in this Recommendation, including whether other criteria should be considered or the thresholds adapted, and transmit its findings to the Council for its consideration, together with a proposal to amend the Recommendation, where necessary,

            HAS ADOPTED THIS RECOMMENDATION:Council Recommendation (EU) 2020/1475 on a coordinated approach to the restriction of free movement in response to the COVID-19 pandemic is amended as follows:
                  1.

                  In point 10, letter (c) is replaced by the following:

                              ‘(c)

                              red, if the 14-day cumulative COVID-19 case notification rate ranges from 50 to 150 and the test positivity rate of tests for COVID-19 infection is 4 % or more, or if the 14-day cumulative COVID-19 case notification rate is more than 150 but less than 500;’.

                  2.

                  In point 10, the following letter (ca) is inserted:

                              ‘(ca)

                              dark red, if the 14-day cumulative COVID-19 case notification rate is 500 or more;’.

                  3.

                  In point 13, letter (a) is replaced by the following:

                              ‘(a)

                              Member States should respect the differences in the epidemiological situation between areas classified as “orange”, “red” or “dark red” and act in a proportionate manner;’.

                  4.

                  In point 13, letter (d) is replaced by the following:

                              ‘(d)

                              Member States should take into account testing strategies and pay particular attention to the situation of areas with high testing rates;’.

                  5.

                  In point 13, the following letter (e) is added:

                              ‘(e)

                              Member States should take into account the prevalence of SARS-CoV-2 variants of concern, especially variants which increase transmissibility and fatality, as well as the level of genome sequencing carried out, regardless how the area concerned is classified.’.

                  6.

                  The following point 16a is inserted after the heading ‘Common framework as regards possible measures for travellers coming from higher-risk areas’:

                              ‘16a.

                              Member States should strongly discourage all non-essential travel to and from areas classified as “dark red” and discourage all non-essential travel to and from areas classified as “red” pursuant to point 10.
                              At the same time, Member States should seek to avoid disruptions to essential travel, to keep transport flows moving in line with the “Green Lanes” system as well as avoid disruptions to supply chains and the movement of workers and self-employed persons travelling for professional or business reasons.’.

                  7.

                  In point 17, letters (a) and (b) are replaced by the following:

                              ‘(a)

                              undergo quarantine/self-isolation as recommended by the Health Security Committee (11); and/or

                              (b)

                              undergo a test for COVID-19 infection prior to and/or after arrival. This could be either an RT-PCR test or a rapid antigen test listed in the common and updated list of COVID-19 rapid antigen tests established on the basis of Council Recommendation of 21 January 2021 on a common framework for the use and validation of rapid antigen tests and the mutual recognition of COVID-19 test results in the EU (12) as determined by the national health authorities.’.

                  8.

                  In point 17, the following subparagraph is deleted:
                  ‘Member States may offer travellers the option to substitute the test mentioned in letter (b) by a test for COVID-19 infection carried out prior to arrival.’.

                  9.

                  In point 17, the following subparagraph is added:
                  ‘Member States should offer sufficient testing capacity and accept digital test certificates, while ensuring that doing so does not detract from the provision of essential public health services, in particular in terms of laboratory capacity.’.

                  10.

                  The following point 17a is inserted:

                              ‘17a.

                              Member States should require persons travelling from an area classified as “dark red” pursuant to point 10(ca) to undergo both a test for COVID-19 infection prior to arrival and to undergo quarantine/self-isolation as recommended by the Health Security Committee. Similar measures could apply to areas with a high prevalence of variants of concern.
                              Member States should adopt, maintain or reinforce non-pharmaceutical interventions, in particular in areas classified as “dark red”, strengthen testing and contact tracing efforts and increase the level of surveillance and sequencing of a representative sample of community COVID-19 cases, in order to control the spread and impact of the SARS-CoV-2 emerging variants with increased transmissibility.’.

                  11.

                  The following point 17b is inserted:

                              ‘17b.

                              Member States should offer persons residing in their territory the option to substitute a test prior to arrival mentioned in points 17(b) and 17a by a test for COVID-19 infection carried out after arrival, in addition to any applicable quarantine/self-isolation requirements.’.

                  12.

                  The following point 19a is inserted:

                              ‘19a.

                              Pursuant to point 17a, travellers with an essential function or need travelling from a “dark red” area should fulfil testing requirements and undergo quarantine/self-isolation, provided that this does not have a disproportionate impact on the exercise of their function or need.
                              By way of derogation, transport workers and transport service providers pursuant to point 19(b) should in principle not be required to undergo a test for COVID-19 infection in line with points 17(b) and 17a. Where a Member State requires transport workers and transport service providers to undergo a test for COVID-19 infection, rapid antigen tests should be used, and this should not lead to transport disruptions. Should transport or supply chain disruptions occur, Member States should lift or repeal any such systematic testing requirements immediately in order to preserve the functioning of the “Green Lanes”. Transport workers and transport service providers should not be required to undergo quarantine in line with points 17(a) and 17a while exercising this essential function.’.

                  13.

                  The following point 19b is inserted:

                              ‘19b.

                              In addition to the exemptions in point 19a, Member States should not require persons living in border regions and travelling across the border on a daily or frequent basis for the purposes of work, business, education, family, medical care or caregiving to undergo a test or quarantine/self-isolation, in particular persons exercising critical functions or essential for critical infrastructure. If a testing requirement on cross-border travel is introduced in these regions, the frequency of tests on such persons should be proportionate. If the epidemiological situation on both sides of the border is comparable, no travel-related testing requirement should be imposed. Persons who claim that their situation falls within the scope of this point could be required to provide documentary evidence or submit a declaration to this effect.’.

                  14.

                  Point 21 is replaced by the following:

                              ‘21.

                              Any measures applied to persons arriving from an area classified as “dark red”, “red”, “orange” or “grey” pursuant to point 10 may not be discriminatory, that is, should apply equally to returning nationals of the Member State concerned.’.

         Done at Brussels, 1 February 2021.

               For the Council

               The President

            A. P. ZACARIAS

         (1)  OJ L 337, 14.10.2020, p. 3.

         (2)  Available at: https://www.ecdc.europa.eu/en/covid-19/situation-updates/weekly-maps-coordinated-restriction-free-movement

         (3)  COM(2021) 35 final.

         (4)  ECDC Risk Assessment: Risk related to spread of new SARS-CoV-2 variants of concern in the EU/EEA, available at: https://www.ecdc.europa.eu/en/publications-data/covid-19-risk-assessment-spread-new-sars-cov-2-variants-eueea

         (5)  European Centre for Disease Prevention and Control. Risk related to spread of new SARS-CoV-2 variants of concern in the EU/EEA, first update – 21 January 2021. ECDC: Stockholm; 2021. Available at: https://www.ecdc.europa.eu/sites/default/files/documents/COVID-19-risk-related-to-spread-of-new-SARS-CoV-2-variants-EU-EEA-first-update.pdf

         (6)  Oral conclusions drawn by President Charles Michel following the video conference of the members of the European Council on 21 January 2021, available at: https://www.consilium.europa.eu/en/press/press-releases/2021/01/21/oral-conclusions-by-president-charles-michel-following-the-video-conference-of-the-members-of-the-european-council-on-21-january-2021/

         (7)  Communication from the Commission on upgrading the transport Green Lanes to keep the economy going during the COVID-19 pandemic resurgence, COM(2020) 685 final, and Commission Recommendation (EU) 2020/2243 of 22 December 2020 on a coordinated approach to travel and transport in response to the SARS-COV-2 variant observed in the United Kingdom (OJ L 436, 28.12.2020, p. 72).

         (8)  Recommendations for a common EU approach regarding isolation for COVID-19 patients and quarantine for contacts and travellers, agreed by the Health Security Committee on 11 January 2021, https://ec.europa.eu/health/sites/health/files/preparedness_response/docs/hsc_quarantine-isolation_recomm_en.pdf

         (9)  WHO reference number: WHO/2019-nCoV/IHR_Quarantine/2020.3. Available at: https://www.who.int/publications/i/item/considerations-for-quarantine-of-individuals-in-the-context-of-containment-for-coronavirus-disease-(covid-19)

         (10)  See Commission Recommendation (EU) 2020/2243 of 22 December 2020 on a coordinated approach to travel and transport in response to the SARS-COV-2 variant observed in the United Kingdom (OJ L 436, 28.12.2020, p. 72).

         (11)  Recommendations for a common EU approach regarding isolation for COVID-19 patients and quarantine for contacts and travellers, agreed by the Health Security Committee on 11 January 2021, https://ec.europa.eu/health/sites/health/files/preparedness_response/docs/hsc_quarantine-isolation_recomm_en.pdf

         (12)  https://data.consilium.europa.eu/doc/document/ST-5451-2021-INIT/en/pdf


title: Council Recommendation (EU) 2021/132 of 2 February 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:
               4.2.2021

               EN

               Official Journal of the European Union

               L 41/1

      COUNCIL RECOMMENDATION (EU) 2021/132
      of 2 February 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 Articles 77(2)(b) and (e) and 292, first and second sentence thereof,
      Having regard to the proposal from the European Commission,
      Whereas:

                  (1)

                  On 30 June 2020, the Council adopted Recommendation (EU) 2020/912 on the temporary restriction on non-essential travel into the EU and the possible lifting of such restriction (1).

                  (2)

                  The criteria set out in Council Recommendation (EU) 2020/912 refer to the average EU 14-day notification rate of 15 June 2020. The Council Recommendation on a coordinated approach to the restriction of free movement in response to the COVID-19 pandemic, adopted on 13 October 2020, uses additional criteria that reflect the most recent scientific advice (2).
                  New variants of the SARS COV-2 virus are a serious cause for concern. The variants appear to be somewhere between 50–70 % more transmissible (3) increasing the burden on healthcare systems.
                  The criteria and thresholds laid down in Recommendation (EU) 2020/912 should therefore be updated.

                  (3)

                  On 22 December 2020, the Commission responded to the appearance of one such variant with the adoption of a Recommendation on a coordinated approach to travel and transport in response to the SARS-COV-2 variant observed in the United Kingdom (4).

                  (4)

                  On 19 January 2021, the Commission in its Communication on a united front to beat COVID-19 called for urgent action to contain the risk of a potentially harsher third wave of infections.

                  (5)

                  In the same Communication, the Commission also stressed that all non-essential travel, especially to and from high risk areas, should be strongly discouraged until the epidemiological situation has considerably improved.

                  (6)

                  On 21 January 2021, the European Centre for Disease Prevention and Control issued its latest risk assessment on the spread of the new SAR-CoV-2 variants of concern in the EU/EEA (5), recommending the adoption of stricter measures and of guidance on the avoidance of non-essential travel, including for the purpose of slowing down the importation and spread of the new SARS-CoV-2 variants of concern. In addition to recommendations against non-essential travel, and restrictions on travel for those infected, travel measures such as testing and quarantine of travellers should be maintained, in particular for travellers from areas with a higher incidence of the new variants. If sequencing is still insufficient to exclude the possibility of a higher incidence of the new variants, as per European Centre for Disease Prevention and Control guidance on genomic sequencing, proportionate travel measures should also be considered from areas where there is a continued high level of community transmission.

                  (7)

                  In the oral conclusions drawn following the videoconference of the members of the European Council on 21 January 2021, the President of the European Council noted that measures restricting non-essential travel into and within the EU may be needed to contain the spread of the virus and called on the Council to review its recommendations on intra-EU travel and non-essential travels into the EU in light of the risks posed by the new virus variants.

                  (8)

                  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, in accordance with Article 4 of the said Protocol, is to decide within a period of six months after the Council has decided on this Recommendation whether it will implement it.

                  (9)

                  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 (6); Ireland is therefore not taking part in its adoption and is not bound by it or subject to its application.

                  (10)

                  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 (7).

                  (11)

                  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 (8) read in conjunction with Article 3 of Council Decision 2008/146/EC (9).

                  (12)

                  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 SwissConfederation’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 (10) read in conjunction with Article 3 of Decision 2011/350/EU (11),

            HAS ADOPTED THIS RECOMMENDATION:Recommendation (EU) 2020/912 is amended as follows:
                  1.

                  The second paragraph of point 1 is replaced by the following:
                  ‘To determine the third countries for which the current restriction on non-essential travel into the EU should be lifted, the epidemiological situation in the respective third countries and further criteria as set out in this Recommendation should be taken into account.’

                  2.

                  Point 2 is replaced by the following:
                  ‘As regards the epidemiological situation, the following criteria should apply:

                              —

                              the “14-day cumulative COVID-19 case notification rate”, that is, the total number of newly notified COVID-19 cases per 100 000 population in the previous 14 days,

                              —

                              the trend of new cases over the same period in comparison to the previous 14 days is stable or decreasing,

                              —

                              the “testing rate”, that is, the number of tests for COVID-19 infection per 100 000 population carried in the previous seven days,

                              —

                              the “test positivity rate”, that is, the percentage of positive tests among all tests for COVID-19 infection carried out in the previous seven days,

                              —

                              the nature of the virus present in a country, in particular whether variants of concern of the virus have been detected. Variants of concern are assessed as such by the European Centre for Disease Prevention and Control (ECDC) based on key properties of the virus such as transmission, severity and ability to escape immune response.

                        To be included in Annex I, third countries should meet the following thresholds: a 14-day cumulative COVID-19 case notification rate of not more than 25, a testing rate above 300, and a test positivity rate of not more than 4 %. In addition, the overall reponse to COVID-19 may be taken into account, in particular available information on aspects such as surveillance, contact tracing, containment, treatment and reporting as well as the reliability of available information and data sources and, if needed, the total average score across all dimensions for International Health Regulations (IHR).
                  The data concerning the “testing rate” and the “test positivity rate” should be provided by the European Centre for Disease Prevention and Control (ECDC), on the basis of information made available to ECDC. Such data could be complemented by information provided by EU delegations, when available, also based on the checklist annexed to the Communication of 11 June 2020.’

                  3.

                  Point 4 is amended as follows:

                              (a)

                              the second paragraph is replaced by the following:
                              ‘Travel restrictions may be totally or partially lifted or reintroduced for a specific third country already listed in Annex I, according to changes in some of the conditions set out above and, as a consequence, in the assessment of the epidemiological situation.’;

                              (b)

                              the following new paragraphs are added:
                              ‘Where the epidemiological situation worsens quickly and, in particular, where a high incidence of variants of concern of the virus is detected, travel restrictions may be rapidly reintroduced for non-essential travel for third countries already listed in Annex I.
                              In order to lift the temporary restriction on non-essential travel into the EU with regard to the third countries listed in Annex I, Members States should, on a case-by-case basis, take into account reciprocity granted to the EU+ area.’

                  4.

                  The following new point is inserted after point 4:
                  ‘Member States should strongly discourage non-essential travel from the EU+ area to countries other than those listed in Annex I.’
                  The following points are renumbered accordingly.

                  5.

                  New point 6 is amended as follows:

                              (a)

                              the second paragraph is deleted;

                              (b)

                              the following paragraph is inserted after the deleted second paragraph:
                              ‘Where the epidemiological situation worsens quickly and, in particular, where a high incidence of variants of concern of the virus is detected, Member States may temporarily limit the categories of travellers listed in Annex II. Travel justified by compelling reasons should still remain possible.’;

                              (c)

                              the last paragraph is replaced by the following:
                              ‘The list of specific categories of travellers with an essential function or need referred to in Annex II may be reviewed by the Council, based on a proposal from the Commission, depending on social and economic considerations as well as the overall assessment of the evolution of the epidemiological situation, based on the methodology, criteria and information referred to above.’

                  6.

                  New point 7 is replaced by the following:
                  ‘Member States should require persons travelling for any essential or non-essential reason, function, or need, with the exception of transport and frontier workers, to have tested negative for COVID-19 on the basis of a polymerase chain reaction (PCR) test taken at the earliest 72 hours before departure, and to submit the appropriate proof of such a test result in the form stipulated by the authorities.
                  If tests on departure are not possible, persons referred to in point 6 (a) and (b) should have the possibility to carry out the test after arrival, in accordance with national procedures. This is without prejudice to any obligation to undergo any further measure, including quarantine, after arrival.
                  In addition, Member States may require self-isolation, quarantine and contact tracing for a period of up to 14 days, as well as further COVID-19 testing as needed during the same period, provided that they impose the same requirements on their own nationals when travelling from the same third country. For those travellers arriving from a third country where a variant of concern of the virus has been detected, Member States should impose such requirements and in particular, quarantine upon arrival and additional testing upon or after arrival.
                  As regards travel undertaken in connection with an essential function or need as set out in Annex II:

                              —

                              Member States may decide, in a coordinated way, to waive some or all of the above measures in those cases where such measure would impede the very purpose of the travel,

                              —

                              For transport personnel, seafarers and frontier workers, Member States should not require more than a negative Rapid Antigen Test on arrival to enter into the EU+ area. In the specific case of transport personnel coming from a country where a high incidence of variants of concern of the virus is detected, Member States may require a negative Rapid Antigen Test before departure,

                              —

                              Air crews should be exempted from any testing if their stay in a third country was less than 12 hours, unless they arrive from a third country where a variant of concern has been detected, in which case they should undergo proportionate testing.

                        This is without prejudice to general public health requirements that may be imposed by the Member States such as physical distancing and the requirement to wear a mask.’

                  7.

                  The following new point is inserted after new point 7:
                  ‘Member States should develop a Passenger Locator Form (PLF) and require persons entering the EU to submit a PLF in accordance with applicable data protection requirements. A common European Passenger Locator Form is being developed for possible use by Member States. Wherever possible, a digital option for passenger locator information should be used in order to simplify processing and expediting contact tracing, while ensuring equal access to all third-country nationals.’

                  8.

                  The following points are renumbered accordingly.

         Done at Brussels, 2 February 2021.

               For the Council

               The President

            A. P. ZACARIAS

         (1)  Council Recommendation (EU) 2020/912 of 30 June 2020 on the temporary restriction on non-essential travel into the EU and the possible lifting of such restriction (OJ L 208 I, 1.7.2020, p. 1).

         (2)  Council Recommendation (EU) 2020/1475 of 13 October 2020 on a coordinated approach to the restriction of free movement in response to the COVID-19 pandemic (OJ L 337, 14.10.2020, p. 3).

         (3)  ECDC Risk Assessment: Risk related to spread of new SARS-CoV-2 variants of concern in the EU/EEA, available at: https://www.ecdc.europa.eu/en/publications-data/covid-19-risk-assessment-spread-new-sars-cov-2-variants-eueea

         (4)  C(2020) 9607 final.

         (5)  European Centre for Disease Prevention and Control. Risk related to spread of new SARS-CoV-2 variants of concern in the EU/EEA, first update – 21 January 2021. ECDC: Stockholm; 2021. Available at: https://www.ecdc.europa.eu/sites/default/files/documents/COVID-19-risk-related-to-spread-of-new-SARS-CoV-2-variants-EU-EEA-first-update.pdf

         (6)  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).

         (7)  OJ L 176, 10.7.1999, p. 36.

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

         (9)  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).

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

         (11)  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: Recommendation of the European Central Bank of 4 February 2021 to the Council of the European Union on the external auditors of the Deutsche Bundesbank (ECB/2021/4) 2021/C 47/01

text:
               10.2.2021

               EN

               Official Journal of the European Union

               C 47/1

      RECOMMENDATION OF THE EUROPEAN CENTRAL BANK
      of 4 February 2021
      to the Council of the European Union on the external auditors of the Deutsche Bundesbank
      (ECB/2021/4)
      (2021/C 47/01)
      THE GOVERNING COUNCIL OF THE EUROPEAN CENTRAL BANK,
      Having regard to the Treaty on the Functioning of the European Union,
      Having regard to the Statute of the European System of Central Banks and of the European Central Bank, and in particular Article 27.1 thereof,
      Whereas:

                  (1)

                  The accounts of the European Central Bank (ECB) and the national central banks of the Member States whose currency is the euro are audited by independent external auditors recommended by the ECB’s Governing Council and approved by the Council of the European Union.

                  (2)

                  The mandate of the Deutsche Bundesbank’s current external auditors, KPMG AG Wirtschaftsprüfungsgesellschaft, ended after the audit for the financial year 2020. It is therefore necessary to appoint external auditors from the financial year 2021.

                  (3)

                  The Deutsche Bundesbank has selected Baker Tilly GmbH & Co. KG Wirtschaftsprüfungsgesellschaft as its external auditors for the financial years 2021 to 2026, with the option to extend the mandate to the financial year 2027,

            HAS ADOPTED THIS RECOMMENDATION:
      It is recommended that Baker Tilly GmbH & Co. KG Wirtschaftsprüfungsgesellschaft should be appointed as the external auditors of the Deutsche Bundesbank for the financial years 2021 to 2026, with the option to extend the mandate to the financial year 2027.

         Done at Frankfurt am Main, 4 February 2021.

               The President of the ECB

            Christine LAGARDE


title: Recommendation of the European Central Bank of 4 February 2021 to the Council of the European Union on the external auditors of Eesti Pank (ECB/2021/5) 2021/C 47/02

text:
               10.2.2021

               EN

               Official Journal of the European Union

               C 47/2

      RECOMMENDATION OF THE EUROPEAN CENTRAL BANK
      of 4 February 2021
      to the Council of the European Union on the external auditors of Eesti Pank
      (ECB/2021/5)
      (2021/C 47/02)
      THE GOVERNING COUNCIL OF THE EUROPEAN CENTRAL BANK,
      Having regard to the Treaty on the Functioning of the European Union,
      Having regard to the Statute of the European System of Central Banks and of the European Central Bank, and in particular Article 27.1 thereof,
      Whereas:

                  (1)

                  The accounts of the European Central Bank (ECB) and the national central banks of the Member States whose currency is the euro are audited by independent external auditors recommended by the ECB’s Governing Council and approved by the Council of the European Union.

                  (2)

                  The mandate of Eesti Pank’s current external auditors, KPMG Baltics OÜ, ended after the audit for the financial year 2020. It is therefore necessary to appoint external auditors from the financial year 2021.

                  (3)

                  Eesti Pank has selected Ernst & Young Baltic AS as its external auditors for the financial years 2021 to 2025,

            HAS ADOPTED THIS RECOMMENDATION:
      It is recommended that Ernst & Young Baltic AS should be appointed as the external auditors of Eesti Pank for the financial years 2021 to 2025.

         Done at Frankfurt am Main, 4 February 2021.

               The President of the ECB

            Christine LAGARDE