title: Council Recommendation of 30 October 2020 on A Bridge to Jobs – Reinforcing the Youth Guarantee and replacing the Council Recommendation of 22 April 2013 on establishing a Youth Guarantee 2020/C 372/01

text:
               4.11.2020

               EN

               Official Journal of the European Union

               C 372/1

      COUNCIL RECOMMENDATION
      of 30 October 2020
      on A Bridge to Jobs – Reinforcing the Youth Guarantee and replacing the Council Recommendation of 22 April 2013 on establishing a Youth Guarantee
      (2020/C 372/01)
      THE COUNCIL OF THE EUROPEAN UNION,
      Having regard to the Treaty on the Functioning of the European Union, and in particular Article 292, in conjunction with Article 149 thereof,
      Having regard to the proposal from the European Commission,
      Whereas:

                  (1)

                  In November 2017, the European Parliament, the Council and the Commission proclaimed the European Pillar of Social Rights, setting out 20 principles and rights to support well‐functioning and fair labour markets and welfare systems. The European Pillar of Social Rights sets out the right to fair working conditions, states that equality of treatment and opportunities between women and men must be ensured in all areas and sets out the right to access to social protection and training. It also states that probation periods should be of reasonable duration and that the abuse of atypical contracts is to be prohibited. Principle 4 (‘Active support to employment’) states that ‘young people have the right to continued education, apprenticeship, traineeship or a job offer of good standing within four months of becoming unemployed or leaving education’.

                  (2)

                  The guidelines for the employment policies of the Member States, adopted by the Council in its Decision (EU) 2019/1181 (1), and in particular guideline 6, call upon the Member States to continue to address youth unemployment and the issue of young people not in employment, education or training (‘NEETs’) through prevention of early school leaving and structural improvement in the school-to-work transition, including through the full implementation of the Youth Guarantee.

                  (3)

                  The Council Recommendation of 20 December 2012 on the validation of non-formal and informal learning (2) sets out elements and principles for the validation of non-formal and informal learning which enable individuals to have knowledge, skills and competences which have been acquired through non-formal and informal learning validated and to obtain a full qualification, or, where applicable, part qualification.

                  (4)

                  The Council Recommendation of 19 December 2016 on Upskilling Pathways: New Opportunities for Adults (3) recommends that adults with a low level of skills, knowledge and competences be offered the opportunity, according to their individual needs, to acquire a minimum level of literacy, numeracy and digital competence, or to acquire a wider set of skills, knowledge and competences.

                  (5)

                  The Council Recommendation of 22 May 2018 on key competences for lifelong learning (4) calls upon the Member States to support the development of basic digital skills and to increase and improve the level of digital competences across all segments of the population.

                  (6)

                  The Council Recommendation of 10 March 2014 on a Quality Framework for Traineeships (5) offers guidance on the provision of quality traineeships and includes quality elements that relate in particular to learning content, working conditions, and transparency regarding financial conditions and hiring practices.

                  (7)

                  The Council Recommendation of 15 March 2018 on a European Framework for Quality and Effective Apprenticeships (6) identifies 14 key criteria that Member States and stakeholders should use to develop quality and effective apprenticeships to ensure both the development of job-related skills and the personal development of apprentices.

                  (8)

                  Regulation (EU) 2019/1700 of the European Parliament and of the Council (7) provides a common framework for seven previously independent data collections, including the EU Labour Force Survey. That common framework, namely the Integrated European Social Statistics (IESS), yields more granular cross-EU comparative data, which will enable a better understanding of young people’s transition from education to work, capturing more accurately their learning and working experience, but also their individual background characteristics.

                  (9)

                  In its conclusions of 15 December 2016, the European Council calls for the continuation of the Youth Guarantee. In its conclusions of 15 June 2017, the Council reaffirms that tackling youth unemployment and inactivity remains a policy priority, considers that the Youth Guarantee and the Youth Employment Initiative have provided a strong impetus for structural reforms and policy innovation and underlines that reaching out to NEETs requires strong and persistent efforts by national authorities as well as cross-sectoral cooperation.

                  (10)

                  In its resolution of 18 January 2018 on the implementation of the Youth Employment Initiative in the Member States, the European Parliament calls on the Member States to establish appropriate and tailored outreach strategies to reach all NEETs and to take an integrated approach towards making more individualised assistance and services available to support young people facing multiple barriers. The European Parliament emphasises the need to improve the quality of offers under the Youth Guarantee and the Youth Employment Initiative and calls for a future discussion about the eligible age bracket.

                  (11)

                  The European Green Deal is the Union’s new growth strategy. It aims to transform the Union into a fair and prosperous society, with a modern, resource‐efficient and competitive economy where there are no net emissions of greenhouse gases by 2050 and where economic growth is decoupled from resource use.

                  (12)

                  To help repair the economic and social damage caused by the COVID‐19 pandemic, kick‐start the European recovery from that damage, and protect and create jobs, the Commission has proposed a major recovery plan for Europe based on harnessing the full potential of the Union budget and has proposed the recovery instrument ‘Next Generation EU’. That instrument will be crucial to support, among other areas, short‐term measures to support employment, including youth employment, as well as investments in longer‐term policy reforms related to the labour market and social, education and training systems.

                  (13)

                  In 2013, during the previous economic recession, the youth unemployment rate (15‐24 year olds) was 24,4 % in the Union (up from 16 % in 2008) and over 50 % in some Member States, and there were 6,5 million NEETs aged 15‐24. In response, the Council Recommendation on establishing a Youth Guarantee was adopted in April 2013 (8). It constitutes a major coordinated response, at Union level, to the challenges faced by youth and is based on educational and active labour market policy interventions in the Member States.

                  (14)

                  The COVID-19 pandemic has spiralled the Union into an unprecedented economic recession, which is likely to bring back dramatically high youth unemployment and NEET rates. The Union’s economy is expected to shrink significantly in 2020, entering the deepest recession in its history. Young people who were already in a precarious situation in the labour market or who faced barriers to accessing work prior to the onset of the pandemic will suffer most, while those entering the workforce at this time will find it harder to secure their first job. It is therefore necessary to reinforce the Youth Guarantee in the light of the present crisis.

                  (15)

                  Young people may face multiple challenges in the labour market, also because of the transitionary life periods they are going through, their limited or lack of professional experience and other barriers to entering the world of work. As past recessions show, young people are hit harder than older, more experienced workers.

                  (16)

                  Young women are more likely than young men to become inactive due to caring responsibilities, such as looking after children or dependent adults, or other personal or family responsibilities. Caring responsibilities as a reason for inactivity is more than five times more prevalent among young women than among young men. That can lead to an increase in the gender employment gap with lasting consequences throughout women’s lives.

                  (17)

                  Youth unemployment and inactivity as well as limited access to inclusive high‐quality education and training and social services can have a scarring effect, such as an increased risk of future unemployment, reduced levels of future earnings, loss of human capital and intergenerational transmission of poverty. Those elements translate into individual hardship and generate direct and indirect costs for society at large. They also add to regional inequalities, for example with young people unable to secure sustainable labour market integration in rural or remote areas and therefore seeking opportunities elsewhere.

                  (18)

                  Ongoing developments such as automation and digitalisation of production and services continue to reshape the world of work. Young people are overrepresented in non‐standard jobs such as platform or ‘gig’ work, in which they may lack access to adequate social protection. Young people are among those groups exposed to losing their jobs due to automation, as entry-level jobs tend to have a greater proportion of automatable tasks. At the same time, digital technologies create new jobs and increase the demand for skills needed for digital transformation in many sectors of the economy.

                  (19)

                  Investing now in the human capital of young Europeans will help to future-proof Europe’s social market economies, catering for demographic shifts while fully embracing the digital age and the growth of jobs in the green economy. Such investments go hand in hand with labour market reforms, which may address some of the structural problems for young people and provide them with a better starting position. The Union will be able to reap the full benefits of an active, innovative and skilled workforce while avoiding the very high economic and social costs of having young people neither in employment, education or training.

                  (20)

                  A reinforced Youth Guarantee can contribute to creating youth employment opportunities, promoting youth entrepreneurship and help to harness the opportunities arising from the digital and green transitions. It can help to reduce persistent labour market scars from the severe slowdown by encouraging firms to hire unemployed youth, including those who were unemployed prior to the pandemic, and by providing training that facilitates the matching of unemployed and inactive youth to vacancies.

                  (21)

                  A reinforced Youth Guarantee should ensure that all young people receive a good quality offer of employment, continued education, an apprenticeship or a traineeship within four months of becoming unemployed or leaving formal education. To achieve that ambition, it should provide young people with a path towards a stable labour market integration, and reach out and motivate greater numbers of young people regardless of the barriers they may face, making sure that none of them are left behind. A reinforced Youth Guarantee should strive to support young people in gaining valuable work experience and developing the right skills for a changing world of work, in particular those skills relevant to growth sectors and the green and digital transitions. The quality of apprenticeships plays an important role in this respect. There is a need to boost the supply of apprenticeships especially during the recovery phase and to promote the participation of companies in order to facilitate a smoother transition into employment. Apprenticeships prepare young people for jobs that are in high demand and thereby offer them a path towards sustainable labour market integration, including at a local level.

                  (22)

                  In the 2013 Council Recommendation on establishing a Youth Guarantee, Member States committed to ensuring that all young people under the age of 25 receive a good quality offer of employment, continued education, an apprenticeship or a traineeship within four months of becoming unemployed or leaving formal education. Widening the age bracket to include young people aged 25‐29 acknowledges that school-to-work transitions and sustainable labour market integration are taking longer because of the changing nature of work, extended periods spent in education and the skills in demand. It is important to recognise that the economic downturn resulting from the COVID‐19 pandemic will lead to a larger proportion of 25‐29 year olds falling into unemployment and requiring support. It also aligns with Member States’ youth-related measures and programmes, which are generally available to young people between the ages of 15 and 29.

                  (23)

                  NEETs are a heterogeneous group. For some young people, being a NEET can be a symptom of multiple and engrained disadvantages and may indicate a longer‐term disengagement from society and therefore require longer interventions. Some young people are especially vulnerable, for example early leavers from education and training or those with inadequate education or training, who often have limited social protection coverage, restricted access to financial resources, precarious work conditions or may face discrimination. For others, such as highly‐skilled young people or those who already have significant and still-relevant work experience, being a NEET is likely to be a temporary status since they face low barriers to labour market entry and have no inherent vulnerabilities. A reinforced Youth Guarantee should recognise that NEETs require an individualised approach: for some NEETs a lighter approach may be sufficient, whereas other, more vulnerable, NEETs may need more intensive, lengthy and comprehensive interventions. Interventions should be based on a gender-sensitive approach, taking into account differences between national, regional and local circumstances.

                  (24)

                  More than one in five young people across the Union fail to reach a basic level of digital skills, with low‐qualified young people more than three times more likely to underachieve in digital skills than their high-qualified counterparts. With the COVID‐19 pandemic accelerating the digital transition, the digital skills gap becomes a key determinant in the employability of young people and their ability to seize the opportunities stemming from this transition. Targeted upskilling helps young people respond to the growing demand for digital skills and addresses the digital divide.

                  (25)

                  Preparatory training before taking up an offer, carried out according to individual needs and related to specific skill domains such as digital, green, language, entrepreneurial and career management skills, should be part of a reinforced Youth Guarantee, when deemed appropriate. This hands-on training can be a stepping stone towards a full vocational training course, a taster of the world of work, or supplement existing education or work experience before the start of the Youth Guarantee offer. The short-term, informal nature of such preparatory training, which should not prolong the duration of the four-month preparatory phase, distinguishes it from the offer itself.

                  (26)

                  Effective coordination and partnerships across policy fields, including employment, education, youth, gender equality and social affairs, are crucial in terms of boosting quality employment as well as education and training opportunities, apprenticeships and traineeships. Integrated services (such as one-stop shops or other models) offer easier access to services and benefits, and can more easily provide tailor-made, flexible and more responsive solutions for young people with multidimensional barriers to the labour market. Integrated services require a change in working culture, putting young people at the centre of the interventions and fostering the exchange of best practice ideas across all levels of government and building networks between all relevant actors. In addition, data protection issues need to be addressed to allow for an effective and smooth cooperation between different public administrations and services.

                  (27)

                  The reinforced Youth Guarantee should be implemented by a scheme consisting of supportive measures, and should be geared to national, regional and local circumstances. Such schemes should take into account the diversity of the Member States as regards the levels of youth unemployment and inactivity, the institutional set-up and the capacity of the various labour market players. They should also take into account different situations as regards public budgets and financial constraints in terms of allocation of resources, and be continuously monitored and improved.

                  (28)

                  Supportive measures can be financed by Union funds. The Youth Employment Initiative 2014‐2020 (‘YEI’) (to which the Union contributes almost EUR 9 billion), together with additional European Social Fund (‘ESF’) investment, has been a key Union financial resource to support the implementation of the Youth Guarantee. As part of the Recovery Plan for Europe and the instrument ‘Next Generation EU’, the Recovery and Resilience Facility and the Recovery Assistance for Cohesion and the Territories of Europe (‘REACT‐EU’) will provide additional Union funding for youth employment measures. Those efforts will be complemented in the 2021‐27 financing period by the European Social Fund Plus (‘ESF+’) which will support the full range of employment, education and training measures of the reinforced Youth Guarantee,

            HEREBY RECOMMENDS THAT MEMBER STATES:

                  (1)

                  ensure that all young people under 30 years of age receive a good quality offer of employment, continued education, an apprenticeship or a traineeship within a period of four months of becoming unemployed or leaving formal education, in line with Principle 4 of the European Pillar of Social Rights.
                  The starting point for delivering the Youth Guarantee offer to a young person should be the registration of that young person with a Youth Guarantee provider. Youth Guarantee schemes should be based on the following guidelines, which are structured around four phases (respectively, mapping, outreach, preparation and offer), and should be organised in accordance with national, regional and local circumstances, paying attention to the gender and diversity of the young people who are being targeted:

         Mapping

         Identifying the target group, available services and skills needs

                  (2)

                  reinforce the mapping of the target group to enable a better understanding of the diversity of NEETs and the tailored support they are likely to require, including NEETs negatively affected by the economic recession;

                  (3)

                  map the services available for different support needs, use national skills forecasts together with available local skills forecasts (informed by, for example, big data labour market intelligence) to identify skills in demand on the labour market, with particular attention to regional labour market specificities and the barriers faced by young people living in rural, remote or disadvantaged urban areas;

         Enabling prevention through tracking and early warning systems

                  (4)

                  strengthen early warning systems and tracking capabilities to identify those at risk of becoming a NEET, while contributing to preventing early leaving from education and training (through, for example, career guidance in schools, more flexible learning pathways and more work-based learning), in cooperation with the education sector, parents or legal guardians, and local communities, and with the involvement of youth, social, health and employment services;

         Outreach

         Raising awareness and targeting communication

                  (5)

                  adopt modern, youth-friendly and local information channels and outreach schemes for awareness-raising activities, using digital and non-digital opportunities, while ensuring the involvement of young people, youth workers and local youth organisations, families and parental associations;

                  (6)

                  use a recognisable visual style for all communication, based, where relevant, on guidelines made available by the Commission, while ensuring accessible and easily understandable information on all types of support available, for instance through a single web portal in the language(s) of the country. The communication should avoid all stereotypes;

         Stepping up the outreach to vulnerable groups

                  (7)

                  strengthen the focus on NEETs (in particular those belonging to vulnerable groups, including those with disabilities and with multidimensional problems), using specifically-trained service providers and complementary strategies such as youth work, young ‘ambassadors’ and cooperation with partners that are in contact with specific groups of young people. Explore, for the hardest-to-reach NEETs, coordination with the provision of benefits, as well as the use of mobile units;

         Preparation

         Using profiling tools to tailor individualised action plans

                  (8)

                  improve profiling and screening tools and practices to match needs and responses, by adopting a multivariate, gender-sensitive approach to profiling and screening that takes into account the preferences and motivation, skills and previous work experience, barriers and disadvantages of the young person concerned, including the reasons for being unemployed or inactive or those related to their residence in rural, remote and disadvantaged urban areas;

                  (9)

                  ensure that the counselling process at Public Employment Services is strengthened and that Youth Guarantee providers have adequate staff capacity, including specifically-trained staff to operate and improve profiling and screening tools and to develop individualised action plans that take into account person-centred needs and responses;

         Performing counselling, guidance and mentoring

                  (10)

                  step up the preparatory phase with person-centred counselling, guidance and mentoring by trained advisors in response to the needs of the individual concerned and with due attention to gender bias and other forms of discrimination. Prepare NEETs for the changing nature of work and requirements of lifelong learning, be it through career advice or entrepreneurship support, while adopting one-to-one support, motivational work, advocacy or peer support for NEETs;

                  (11)

                  allow for a more holistic approach to counselling, guidance and mentoring by referring young people to partners (such as education and training institutions, social partners and youth organisations, as well as youth work, health and social services), who can help to motivate and support those young people in overcoming other barriers to employment;

         Enhancing digital skills with preparatory training

                  (12)

                  assess the digital skills of all NEETs who register in the Youth Guarantee, for example by using the European Digital Competence Framework (DigComp) and the available assessment and self-assessment tools, ensuring that, on the basis of gaps identified, all young people in need of dedicated preparatory training are offered such training to enhance their digital skills;

                  (13)

                  safeguard the validation and recognition of non-formal and informal learning outcomes from the preparatory training by using validation arrangements embedded in education and training systems, using existing tools such as Europass, enabling a more modular approach to accumulating qualifications, enhancing learning outcomes and improving recognition;

         Assessing, improving and validating other important skills

                  (14)

                  ensure that the preparatory phase facilitates upskilling and re-skilling where deemed appropriate, geared mainly towards digital, green, language, entrepreneurial and career management skills, using existing competence frameworks, assessment and self-assessment tools and validation tools to help young people seize the opportunities in growing sectors, and preparing them for the needs of the changing labour market;

         Offer

         Making employment and start-up incentives work

                  (15)

                  use targeted and well-designed employment incentives, such as wage subsidies, recruitment incentives (‘bonuses’), reduction of social security contributions, tax credits or disability benefits, and start-up incentives in order to create good quality opportunities for the sustainable integration of young people into the labour market; where appropriate offers that promote self-employment for young people should be linked to in-depth training and comprehensive entrepreneurial counselling;

         Aligning the offer to existing standards to ensure quality and equity

                  (16)

                  align employment offers to the relevant principles of the European Pillar of Social Rights, ensuring equality of treatment and opportunities between women and men in all areas and the right to fair working conditions, access to social protection and training, reasonable duration of probation periods and prohibiting abuse of atypical contracts;

                  (17)

                  ease young people’s way back into education and training by diversifying the continued education offer (for example through flexible learning pathways, work-based learning, bridging programmes and second-chance programmes), ensuring, where appropriate, the validation of non-formal and informal learning;

                  (18)

                  intensify support to quality apprenticeships and make sure offers adhere to the minimum standards laid out in the European Framework for Quality and Effective Apprenticeships;

                  (19)

                  ensure that traineeship offers adhere to the minimum standards laid out in the Quality Framework for Traineeships;

         Providing post-placement support and implementing feedback

                  (20)

                  expand continued post-placement support for young people to help them cope in new situations and adjust individualised action plans where needed, using the opportunity of post-placement feedback to ensure a quality offer was provided and prevent young people falling back into NEET status;

         Crosscutting enablers

         Mobilising partnerships

                  (21)

                  strengthen partnerships, across all levels of government, between Youth Guarantee providers and relevant stakeholders, such as employers, education and training institutions, social partners, youth work services, providers of solidarity and civic activities, youth organisations and other civil society organisations; promote protocols for cooperation between Youth Guarantee providers and other social services, such as childcare, healthcare, rehabilitation, social housing and accessibility services;

                  (22)

                  promote the further development of integrated service models, such as one-stop shops, joint case management or multidisciplinary teams, which strengthen partnerships and enable a single point of contact for young people;

         Improving the data collection and monitoring of schemes

                  (23)

                  step up efforts to enrich follow-up data by strengthening systems that allow young people to be tracked after taking up an offer, in order to monitor long-term, sustainable labour market integration;

                  (24)

                  encourage, while respecting data protection rules, the wider sharing of tracking, profiling and follow-up data between Youth Guarantee partners to improve support, which is of particular importance for the success of interventions targeting vulnerable NEETs;

         Making full and optimal use of funds

                  (25)

                  dedicate adequate national resources to the implementation of the policy measures put forward by the reinforced Youth Guarantee, ensuring that they are well targeted to the individual needs of any young person and especially of the most vulnerable groups;

                  (26)

                  make full and optimal use of the current Union instruments under the cohesion policy, in particular the YEI, the ESF and the European Regional Development Fund (‘ERDF’) (2014-2020) and mobilise a significant share of the additional funds provided under REACT-EU, as well as the ESF+ and the ERDF (2021-2027), to support youth employment, education and training, prevent unemployment and inactivity among young people and implement relevant policy reforms;

                  (27)

                  exploit the potential of complementing national funding efforts with other Union funding sources that could contribute to implementing the reinforced Youth Guarantee, in particular the Recovery and Resilience Facility, the European Agricultural Fund for Rural Development (‘EAFRD‘), the InvestEU Programme, the Asylum, Migration and Integration Fund (‘AMIF’), the Erasmus+ programme and the Technical Support Instrument;

            HEREBY WELCOMES THE COMMISSION’S INTENTION TO:

         Improving the data collection and monitoring of schemes

                  (28)

                  continue to support the quantitative monitoring of Youth Guarantee schemes based on the commonly‐agreed Indicator Framework, proposing adjustments where appropriate in light of this Recommendation;

                  (29)

                  improve, from 2022 onwards, the granularity with which the NEET target group is assessed, benefitting from the improvements to the EU Labour Force Survey yielded by Regulation (EU) 2019/1700;

         Monitoring implementation

                  (30)

                  monitor the implementation of Youth Guarantee schemes pursuant to this Recommendation through the multilateral surveillance of the Employment Committee (‘EMCO’) within the framework of the European Semester;

                  (31)

                  regularly engage with Member States in the context of the European Semester to ensure monitoring of a continuous national investment in youth employment policies and programmes; address, where appropriate, country-specific recommendations to Member States on the basis of the guidelines for the employment policies of the Member States;

                  (32)

                  report regularly to the EMCO on developments concerning the implementation and results of Youth Guarantee schemes;

         Raising awareness and targeting communication

                  (33)

                  strengthen support to Member States’ awareness-raising and communication efforts and reinforce the dissemination of results and good practice examples among Member States, including through the European Network of Public Employment Services.

            The Council Recommendation of 22 April 2013 on establishing a Youth Guarantee shall be replaced by this Recommendation.

         Done at Brussels, 30 October 2020.

               For the Council

               The President

            M. ROTH

         (1)  Council Decision (EU) 2019/1181 of 8 July 2019 on guidelines for the employment policies of the Member States (OJ L 185, 11.7.2019, p. 44).

         (2)  OJ C 398, 22.12.2012, p. 1.

         (3)  OJ C 484, 24.12.2016, p. 1.

         (4)  OJ C 189, 4.6.2018, p. 1.

         (5)  OJ C 88, 27.3.2014, p. 1.

         (6)  OJ C 153, 2.5.2018, p. 1.

         (7)  Regulation (EU) 2019/1700 of the European Parliament and of the Council of 10 October 2019 establishing a common framework for European statistics relating to persons and households, based on data at individual level collected from samples, amending Regulations (EC) No 808/2004, (EC) No 452/2008 and (EC) No 1338/2008 of the European Parliament and of the Council, and repealing Regulation (EC) No 1177/2003 of the European Parliament and of the Council and Council Regulation (EC) No 577/98 (OJ L 261 I, 14.10.2019, p. 1).

         (8)  OJ C 120, 26.4.2013, p. 1.


title: Council Recommendation (EU) 2021/1085 of 1 July 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:
                  2.7.2021

                  EN

                  Official Journal of the European Union

                  L 235/27

         COUNCIL RECOMMENDATION (EU) 2021/1085
         of 1 July 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’).

                     (2)

                     Since then, the Council adopted Recommendations (EU) 2020/1052 (2), (EU) 2020/1144 (3), (EU) 2020/1186 (4), (EU) 2020/1551 (5), (EU) 2020/2169 (6), (EU) 2021/89 (7), (EU) 2021/132 (8), (EU) 2021/767 (9), (EU) 2021/892 (10) and (EU) 2021/992 (11) 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 20 May 2021, the Council adopted Recommendation 2021/816 amending Council Recommendation (EU) 2020/912 on the temporary restriction on non-essential travel into the EU and the possible lifting of such restriction (12) in order to update the criteria used to assess whether non-essential travel from third countries is safe and should be allowed.

                     (4)

                     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.

                     (5)

                     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 amended by Recommendation 2021/816. As a result of these discussions, the list of third countries set out in Annex I should be amended. In particular, Armenia, Azerbaijan, Bosnia and Herzegovina, Brunei Darussalam, Canada, Jordan, Montenegro, Qatar, Republic of Moldova and Saudi Arabia should be added to the list, as well as Kosovo (*), under the category of entities and territorial authorities that are not recognised as states by at least one Member State.

                     (6)

                     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 1 July 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, Special Administrative Regions and other entities and territorial authorities listed in Annex I of the Council Recommendation as amended by this Recommendation.

                     (7)

                     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.

                     (8)

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

                     (9)

                     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 (14).

                     (10)

                     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 (15) read in conjunction with Article 3 of Council Decision 2008/146/EC (16).

                     (11)

                     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 (17) read in conjunction with Article 3 of Decision 2011/350/EU (18).

               HAS ADOPTED THIS RECOMMENDATION:
         Council Recommendation (EU) 2020/912, as amended by Recommendations (EU) 2020/1052, (EU) 2020/1144, (EU) 2020/1186, (EU) 2020/1551, (EU) 2020/2169, (EU) 2021/89, (EU) 2021/132, (EU) 2021/767, (EU) 2021/816, (EU) 2021/892 and (EU) 2021/992, 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 1 July 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, Special Administrative Regions and other entities and territorial authorities whose residents should not be affected by temporary external borders restriction on non-essential travel into the EU:
                           I.   STATES

                                       1.

                                       ALBANIA

                                       2.

                                       ARMENIA

                                       3.

                                       AUSTRALIA

                                       4.

                                       AZERBAIJAN

                                       5.

                                       BOSNIA AND HERCEGOVINA

                                       6.

                                       BRUNEI DARUSSALAM

                                       7.

                                       CANADA

                                       8.

                                       ISRAEL

                                       9.

                                       JAPAN

                                       10.

                                       JORDAN

                                       11.

                                       LEBANON

                                       12.

                                       MONTENEGRO

                                       13.

                                       NEW ZEALAND

                                       14.

                                       QATAR

                                       15.

                                       REPUBLIC OF MOLDOVA

                                       16.

                                       REPUBLIC OF NORTH MACEDONIA

                                       17.

                                       RWANDA

                                       18.

                                       SAUDI ARABIA

                                       19.

                                       SERBIA

                                       20.

                                       SINGAPORE

                                       21.

                                       SOUTH KOREA

                                       22.

                                       THAILAND

                                       23.

                                       UNITED STATES OF AMERICA

                                       24.

                                       CHINA (*1)

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

                                       Hong Kong SAR

                                       Macao SAR

                                 III.   ENTITIES AND TERRITORIAL AUTHORITIES THAT ARE NOT RECOGNISED AS STATES BY AT LEAST ONE MEMBER STATE

                                       Kosovo (*)

                                       Taiwan

                     .
                        (*1)  Subject to confirmation of reciprocity."

                        (*)  This designation is without prejudice to positions on status, and is in line with UNSCR 1244 (1999) and the ICJ Opinion on the Kosovo declaration of independence."

            Done at Brussels, 1 July 2021.

                  For the Council

                  The President

               G. DOVŽAN

            (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)  OJ L 165I, 11.5.2021, p. 66.

            (10)  OJ L 198, 4.6.2021, p. 1.

            (11)  OJ L 221, 21.6.2021, p. 12.

            (12)  OJ L 182, 21.5.2021, p. 1.

            (*)  This designation is without prejudice to positions on status, and is in line with UNSCR 1244 (1999) and the ICJ Opinion on the Kosovo declaration of independence.

            (13)  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).

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

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

            (16)  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).

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

            (18)  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 7 August 2020 to the Council of the European Union on the external auditors of Suomen Pankki (ECB/2020/37) 2020/C 268/01

text:
               14.8.2020

               EN

               Official Journal of the European Union

               C 268/1

      RECOMMENDATION OF THE EUROPEAN CENTRAL BANK
      of 7 August 2020
      to the Council of the European Union on the external auditors of Suomen Pankki (ECB/2020/37)
      (2020/C 268/01)
      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 Suomen Pankki’s current external auditors, PricewaterhouseCoopers Oy, ended after the audit for the financial year 2019. It is therefore necessary to appoint external auditors from the financial year 2020.

                  (3)

                  Suomen Pankki has selected KPMG Oy Ab as its external auditors for the financial years 2020 to 2025,

            HAS ADOPTED THIS RECOMMENDATION:
      It is recommended that KPMG Oy Ab should be appointed as the external auditors of Suomen Pankki for the financial years 2020 to 2025.

         Done at Frankfurt am Main, 7 August 2020.

               The President of the ECB

            Christine LAGARDE


title: Council Recommendation of 13 July 2021 on the economic policy of the euro area 2021/C 283/01

text:
               15.7.2021

               EN

               Official Journal of the European Union

               C 283/1

      COUNCIL RECOMMENDATION
      of 13 July 2021
      on the economic policy of the euro area
      (2021/C 283/01)
      THE COUNCIL OF THE EUROPEAN UNION,
      Having regard to the Treaty on the Functioning of the European Union, and in particular Article 136 in conjunction with Article 121(2) 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 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 (2), and in particular Article 6(1) thereof,
      Having regard to the recommendation from the European Commission,
      Having regard to the conclusions of the European Council,
      Having regard to the opinion of the Economic and Financial Committee,
      Having regard to the opinion of the Economic Policy Committee,
      Whereas:

                  (1)

                  As a result of the crisis caused by the COVID-19 pandemic, the economy of the euro area experienced a sudden and deep recession in the first half of 2020. Notwithstanding the strong economic rebound in the third quarter of 2020 that accompanied the lifting of containment measures, the pick-up in the spread of COVID-19 and new containment measures in the fourth quarter of 2020 have further increased uncertainty and shown that the euro area remains vulnerable to the persisting health crisis. The COVID-19 crisis has produced a series of large demand- and supply-side shocks translating into an expected decline of gross domestic product (GDP) by 7,8 % in 2020, according to the Commission services’ autumn 2020 economic forecast. The recovery in 2021 is accordingly projected to be slower than previously expected, and a large output gap of approximately - 7,0 % of potential euro area GDP in 2020 is not projected to close by the end of 2021. Considerable uncertainty prevails regarding the economic outlook, related to the evolution of the COVID-19 pandemic and behavioural changes by economic agents. Prompt action at national and Union level, including the agreement reached by the European Council on the Next Generation EU recovery instrument, has significantly helped to offset some of the negative consequences of the demand- and supply-side shocks and stabilise markets. Both private consumption and investment took a severe hit, negatively affecting in turn prices and wages. The labour market outlook has also taken a turn for the worse, interrupting seven years of improvement. The increase in unemployment has so far been mitigated by the successful implementation of ambitious policy measures in all Member States, such as short-time work schemes and other support policies that aim to avoid mass lay-offs and large income losses, and the related drop in total hours worked, as well as by a decline in activity rates.

                  (2)

                  The COVID-19 crisis is increasing the economic divergence across euro area Member States. Several factors are driving this divergence, including: the intensity and duration of the COVID-19 shock; the relative size and economic importance of contact-intensive sectors such as tourism, business travel and hospitality; and the differences in fiscal space available. Those differences impact confidence, investment and growth prospects as well as regional disparities that pre-existed the COVID-19 crisis but which may now be exacerbated. Over the longer-term, the current crisis might have a permanent negative effect on potential growth and income gaps due to decreased human and physical capital, both tangible and intangible. Those potential negative effects could translate into even lower growth in labour productivity and incomes and higher inequality.

                  (3)

                  The swift and forceful reaction by the Union, including Next Generation EU which comprises the Recovery and Resilience Facility (RRF) established by Regulation (EU) 2021/241 of the European Parliament of the Council (3), has boosted market confidence and shown the solidarity and unity of purpose of Member States in coordinating their efforts to restart economic growth and strengthen economic and social resilience. A number of new instruments for the Union and the euro area were agreed within a very short time. Those instruments already provide a safety net for workers, through the European Instrument for temporary support to mitigate unemployment risks in an emergency (SURE) established by Council Regulation (EU) 2020/672 (4), for businesses, through the European Investment Bank’s Pan-European Guarantee scheme, and for Member States to support domestic financing of direct and indirect healthcare-, cure- and prevention-related costs due to the COVID-19 crisis, through the European Stability Mechanism’s Pandemic Crisis Support Instrument, adopted by the European Stability Mechanism Board of Governors on 15 May 2020. The Union policy response also included the activation of the general escape clause of the Stability and Growth Pact and a temporary framework to use the flexibility under Union State aid rules. The cohesion policy funds were redirected where most needed through the Coronavirus Response Investment Initiative, under Regulation (EU) 2020/460 of the European Parliament of the Council (5) and through the Coronavirus Response Investment Initiative Plus, under Regulation (EU) 2020/558 of the European Parliament and of the Council (6).

                  (4)

                  The implementation of well-designed policies in the context of Next Generation EU and its main instrument, the Recovery and Resilience Facility, will provide a new momentum to Member States for embarking on growth-enhancing reforms and increase the level and quality of investment, consistent with serving the objectives of resilience and the green and digital transitions. That implementation should help build human capital, support workers’ successful job transitions which, alongside the cohesion policy funds, will be essential to ensure cohesion, foster employment and productivity, and enhance economic and social resilience. Union growth objectives, and national structural challenges, including those identified in the 2019 and 2020 country-specific recommendations, are key in this regard. The Annual Sustainable Growth Strategy 2021 provided for by the Commission’s communication of 17 September 2020, which promotes those growth objectives, puts forward seven flagship initiatives: (1) power up; (2) renovate; (3) recharge and refuel; (4) connect; (5) modernise; (6) scale-up; and (7) reskill and upskill. Those flagships areas represent common challenges that call for coordinated investment and reform. Member States are encouraged to channel investment, implement reform and integrate further their value chains in these flagship areas. Regulation (EU) 2021/241 provides that euro area Member States’ recovery and resilience plans are to be consistent with the challenges and priorities identified in the Council recommendation on the economic policy of the euro area. Such consistency should be taken into account in the assessment of the recovery and resilience plans.

                  (5)

                  The euro area requires a mix of economic policies that are supportive, coordinated, comprehensive and consistent in order to cushion the impact of the COVID-19 pandemic, in full compliance with the Treaty safeguards concerning the respective institutions. The aim is to limit any negative long-term impact on the labour market, to reduce significant economic and social divergences, to address imbalances and other macro-significant risks and, more broadly, to avoid negative consequences for potential growth and price stability and to ensure sustainable public finances over the medium term. The mutual consistency of the three core dimensions of the euro area policy mix – monetary, fiscal and structural – along with financial stability, is essential to ensure a supportive aggregate policy stance for the euro area.

                  (6)

                  Timely European Central Bank (ECB) monetary policy interventions aim to keep the monetary transmission channels intact and safeguard medium-term price stability. The ECB announced substantial purchases of public and private sector assets under its pandemic emergency purchase programme, established by Decision (EU) 2020/440 of the European Central Bank (7), amounting to EUR 1 850 billion until at least end of March 2022, as well as under the corporate sector purchase programme, established by Decision (EU) 2016/948 of the European Central Bank (8), with net purchases of EUR 20 billion per month, together with an additional envelope of EUR 120 billion until the end of 2020. Moreover, the ECB offers targeted longer-term refinancing operations at very favourable conditions, supporting bank lending to firms and households.

                  (7)

                  The fiscal stance was highly expansionary in 2020 and is forecast to remain supportive in 2021 at both euro area and national level, excluding emergency measures and also thanks to some recovery measures already announced. Coordination of national fiscal policies, in full respect of the Stability and Growth Pact, is crucial for the effective response to the COVID-19 crisis, a sustainable recovery, and the proper functioning of the Economic and Monetary Union (EMU). On 20 March 2020, the Commission concluded that the Union’s economy was experiencing a severe economic downturn and the conditions to activate the general escape clause of the Stability and Growth Pact were met. This conclusion was endorsed by the finance ministers of the Member States on 23 March 2020. Member States introduced sizeable budgetary measures to contain the COVID-19 crisis and provide support to individuals and businesses particularly affected, as well as exceptional liquidity support, mainly via guarantees provided to companies and to banks to ensure the flow of credit. Further coordinated fiscal support will be provided at Union level, in particular through the Recovery and Resilience Facility, and the general escape clause will remain active in 2021. In spring 2021, taking into account updated macroeconomic projections, the Commission will reassess the situation and take stock of the application of the general escape clause.

                  (8)

                  The economic fallout from the COVID-19 crisis is having a large negative impact on public finances. When health and economic conditions allow, a refocusing of fiscal policies towards achieving prudent medium-term fiscal positions, including by phasing out emergency measures, will contribute to ensuring fiscal sustainability in the medium term. Such refocusing should be done in a way that mitigates the social impact and the impact on the labour market of the crisis and contributes to social sustainability. Reforms that aim to improve the composition of national budgets and to ensure fiscal sustainability over the longer term, including in view of climate change and health challenges, appear particularly relevant. Improving the composition of national budgets, especially through spending reviews and effective public procurement frameworks, can create much-needed fiscal space. Green budgeting practices can also help address the challenges of climate mitigation and adaptation, and environmental protection. Adequate, efficient and inclusive health and social protection systems offer much-needed protection to those in need, play a key role as automatic stabilisers and should preserve fiscal sustainability. Similarly, reforms that strengthen the functioning of labour, capital, products and services markets – through appropriate implementation and sequencing – increase potential output, while avoiding a negative short-term impact on aggregate demand.

                  (9)

                  The COVID-19 crisis is reinforcing the importance of reforms for more efficient and fairer public revenue systems. As the tax wedge on labour in the majority of euro area Member States remains high, those reforms include shifting the tax burden towards tax bases that are less detrimental to labour supply and demand, productivity, investment and growth, while taking into account the related distributional impact. An increased use of environmental taxation and/or other forms of pricing of externalities can contribute to sustainable growth by incentivising ‘greener’ behaviours. Measures addressing aggressive tax planning and tax avoidance, both internationally and in the Union, can make tax systems more efficient and fairer. Moreover, globalisation has made it necessary to adjust the taxation framework to fit a modern and increasingly digitalised economy, at both Union and global level. Work is ongoing within the Organisation for Economic Co-operation and Development (OECD) framework to reach a global consensus-based solution to address tax challenges arising from the digitalisation of the economy.

                  (10)

                  Frontloading reforms that tackle investment bottlenecks and supply-side constraints is of particular relevance considering the high level of uncertainty brought by the COVID-19 crisis and its detrimental effect on investment. Measures that accelerate the absorption of Union funds and an effective and efficient utilisation of resources are essential, in particular in Member States lagging behind in those areas and where Union funds finance a significant share of investments. Reforms that reduce the administrative burden for firms, such as digitalisation of public administrations, including electronic identification, or judicial reforms, and prevent the misuse of funds, for example through corruption, fraud or money laundering, can improve the business environment and help boost private investment and the creation of jobs and firms.

                  (11)

                  The COVID-19 crisis has led to substantial revenue losses for many firms and poses risks to corporate solvency across the euro area. Effective insolvency frameworks play a crucial role in supporting viable firms undergoing temporary problems and providing for the orderly exit of non-viable firms. Improving insolvency frameworks can also help to address the likely increase in non-performing loans and maintain credit to the economy by facilitating the cleaning-up of bank balance sheets, and to spur cross-border investment over the longer term. In this context, Directive (EU) 2019/1023 of the European Parliament and of the Council (9) was adopted to introduce minimum standards across Member States in their national solvency legislation in order to ensure that preventive restructuring frameworks are available to debtors in financial difficulty, to provide procedures leading to a discharge of debts incurred by over-indebted entrepreneurs, and to increase the efficiency of all types of insolvency procedures. It is important to proceed with the transposition and the implementation of Directive (EU) 2019/1023. The Commission also announced in the Capital Markets Union action plan, set out in its communication of 24 September 2020 entitled ‘A Capital Markets Union for people and businesses - new action plan’, work towards minimum harmonisation or increased convergence in targeted areas of core non-bank insolvency. Beyond this, there is scope for Member States to further assess the efficiency and effectiveness of their insolvency frameworks in line with international best practices and address the remaining deficiencies.

                  (12)

                  Further deepening the single market in goods and services, and adapting the euro area to the digital era, can be a major engine of growth, convergence and resilience. The common currency and the single market have been working in tandem to create better conditions for economic stabilisation and long-term growth. The COVID-19 crisis has boosted the use of digital tools, highlighted the importance of the digital single market and accelerated the use of digital and cashless payment methods. However, the single market remains incomplete, especially in the area of services and more specifically in retail trade and professional services. The single market has the potential to limit price rigidities, thereby benefitting monetary policy transmission and economic resilience. The single market also helps with the mobility of production factors, which allows sectors, regions and Member States to minimise economic costs, such as unemployment, in response to shocks. To achieve further integration of the single market for goods and services, it is necessary to remove all remaining unnecessary restrictions, enhance market surveillance mechanisms and take measures to guarantee the necessary administrative capacity in order to achieve such objectives.

                  (13)

                  Reforms and investment that improve labour market integration and transitions, with a particular attention to digital and green jobs, are essential to increase economic and social resilience and support the recovery. The immediately-taken national and Union crisis measures limited the negative economic and social impact on workers. At the same time, a number of long-standing reforms have now become even more urgent: effective active labour market policies, including individualised support; improving the quality and inclusiveness of education and training systems to strengthen educational outcomes from an early age; strong re- and up-skilling measures, and investment in adult education and training and in online learning platforms; addressing skills shortages; and increasing the employment prospects of the most vulnerable segments of the working population, including the young and long-term unemployed, as well as closing gender gaps. Fostering quality job creation, and improving working conditions, in particular by ensuring adequate minimum wages and addressing labour market segmentation and barriers to labour mobility, are key to supporting a sustainable and inclusive recovery. Social dialogue and collective bargaining play an important role in the successful design and implementation of policies.

                  (14)

                  Access to adequate, inclusive and sustainable health and social protection systems, which function as automatic stabilisers during the COVID-19 crisis, is important for economic and social resilience. Access to those systems helps to maintain social cohesion, decent living standards and good population health, which is fundamental to a productive labour economy, through the entire economic cycle and address poverty and social exclusion. Investments to support health reforms and resilient health systems need to remain a priority for Member States. The implementation of the European Pillar of Social Rights, proclaimed by the European Parliament, the Council and the Commission in 2017, is key to guiding policies. Faced with the COVID-19 crisis, the need to ensure adequate social protection coverage for all, both in terms of quality healthcare and long-term care, and in terms of income replacement for all workers including those under atypical contracts and the self-employed, has become even more important. Many Member States have adopted temporary income support and social assistance measures in favour of vulnerable groups with very low incomes and workers not entitled to unemployment benefits. Measures have been taken with regard to benefits, eligibility conditions and additional in-kind services. Strengthening of the adequacy and coverage of social protection systems needs to be done in a way that ensures the long-term sustainability of public finances and intergenerational fairness.

                  (15)

                  Significant progress has been achieved in recent years, but the economic fallout from the COVID-19 crisis has put renewed pressure on the financial sector. Euro area banks entered the current crisis with stronger loss-absorption capacities than before the onset of the global financial crisis. Combined with monetary and fiscal policy measures, this has avoided a tightening of market financing conditions, beyond the initial phase of the crisis, and ensured the continued credit provision to the private sector. The crisis is likely to put further pressure on banks’ already low profitability levels and non-performing loan ratios. These developments could hamper the provision of credit to the economy, which is essential for the recovery. The development of secondary markets for non-performing loans, an efficient deployment of national asset management companies, where appropriate, and reforming insolvency frameworks are particularly important to make progress in this area, along with addressing structural issues of low profitability. The swift and sizeable policy interventions have supported confidence and helped to preserve macro-financial stability. Government loan guarantee schemes help sustain credit to the economy, protect companies and mitigate feedback loops with the banking sector, but also constitute contingent liabilities for Member States’ budgets. Prolongation of insolvency moratoria and forbearance of non-performing loans entails striking a difficult balance between ensuring continued support to viable firms and risking misallocation of funds, increased losses under a potential bankruptcy and reduced clarity as to underlying credit quality.

                  (16)

                  The completion of the EMU architecture remains essential. Filling the remaining gaps could further increase the euro area’s stability and resilience and would consequently strengthen the international role of the euro, which has remained broadly stable in recent years. Further steps should take into account the lessons learnt from Europe’s comprehensive economic policy response to the COVID-19 crisis. Beyond its short-term stabilising effect and its role in supporting the recovery, Next Generation EU has the potential to impact the EMU in the longer term through stimulating growth-enhancing investments and structural reforms and increasing the euro area’s resilience to future shocks. The sizeable issuance of euro-denominated debt, including green and social bonds, will add depth and liquidity to the market for high-quality euro-denominated debt securities, and can contribute to strengthening the international role of the euro. Nonetheless, important elements are still missing in the EMU, such as a complete Banking Union and a deepened Capital Markets Union. Strengthening the Banking Union remains crucial. This calls for continuing to work, without delay and with the same level of ambition, on all elements, including those discussed in the High Level Working Group on a European Deposit Insurance Scheme, on a consensual basis. Proceeding with the European Supervisory Mechanism package of reforms and, given the progress made in risk reduction and the further measures outlined in the Eurogroup statement of 30 November 2020, advancing the entry into force of the common backstop for the Single Resolution Fund, established by Regulation (EU) No 806/2014 of the European Parliament of the the Council (10), by the beginning of 2022, marks another important step towards completing the Banking Union and strengthening the EMU. There should be further work on solutions for overcoming limitations in the current set-up for liquidity provision in resolution. Deepening the Capital Markets Union is a key priority, as demonstrated by the new action plan of September 2020. A strong and resilient EMU will also be important to strengthen the international role of the euro and ensure the Union’s economic and financial autonomy, as set out in the Commission’s communication of 19 January 2021 entitled ‘The European economic and financial system: fostering openness, strength and resilience’, while fully respecting the Union’s internal market and pursued in an open and transparent manner towards non-euro area Member States,

            HEREBY RECOMMENDS euro area Member States to take action, individually including through their recovery and resilience plans, and collectively within the Eurogroup, in the period 2021–2022 to:

                  (1)

                  ensure a policy stance that supports the recovery from the COVID-19 crisis. As the health emergency persists, adopt fiscal policies that remain supportive in all euro area Member States throughout 2021. Adopt policy measures that are tailored to country-specific circumstances and timely, temporary and targeted. Continue coordinating actions to effectively address the COVID-19 pandemic, sustain the economy and support a sustainable recovery. When the epidemiological and economic conditions allow, phase out emergency measures while combatting the social and labour-market impact of the crisis. Pursue fiscal policies that aim to achieve prudent medium-term fiscal positions and to ensure debt sustainability, while enhancing investment. Pursue reforms that strengthen the coverage, adequacy and sustainability of health and social protection systems for all. Pay particular attention to the quality of budgetary measures. Improve public procurement frameworks and public financial management, including in particular investment frameworks and the use of green budgeting tools. Make use of spending reviews to better focus public expenditure on recovery and resilience needs.

                  (2)

                  further improve convergence, resilience and sustainable and inclusive growth. Mitigate the risk of further divergence, and enhance economic and social resilience in the euro area by continuing to tackle structural challenges, by implementing reforms that strengthen productivity and employment, ensure a smooth re-allocation of resources and improve the functioning of markets and public administration, by increasing the level of public investment, and by fostering private investment to support a fair and inclusive recovery consistent with green and digital transitions. Further integrate the single market for goods and services, including the digital single market, by removing unnecessary restrictions, enhancing market surveillance and guaranteeing sufficient administrative capacity. Ensure effective active labour market policies and support for job transitions, in particular towards the green and digital economy. Foster fair working conditions, address labour market segmentation and strengthen inclusion. Ensure the effective involvement of social partners in policy making, and strengthen social dialogue and collective bargaining. Strengthen inclusive education and training systems and investment in skills, addressing skills shortages. Continue working within the framework of the Council on a global consensus-based solution to address the tax challenges arising from the digitalisation of the economy within the OECD Inclusive framework on Base Erosion and Profit Shifting, with the expectation that agreement will be reached by mid-2021 in that forum. Engage in the relevant preparatory work on the way forward in order to address those tax challenges arising from the digital economy, including in the absence of an international consensus by mid-2021. Make further progress to combat aggressive tax planning, lower the tax wedge and support a shift towards carbon pricing and environmental taxation.

                  (3)

                  strengthen national institutional frameworks. Pursue and frontload reforms to address bottlenecks to investment and to ensure the efficient and timely use of Union funds, including through the Recovery and Resilience Facility. Strengthen the effectiveness and digitalisation of public administration, including justice and health systems, as well as public employment services. Reduce the administrative burden for firms and improve the business environment. Continue to improve the frameworks for countering fraud and corruption and for preventing money laundering and terrorism financing. Promote concrete actions to increase the efficiency, effectiveness and proportionality of insolvency frameworks, to work out non-performing exposures and ensure an efficient allocation of capital.

                  (4)

                  ensure macro-financial stability. Maintain the credit channels to the economy and measures to support viable companies as long as necessary during the emergency of the unprecedented COVID-19 crisis. Keep sound bank sector balance sheets, including by continuing to address non-performing loans through, amongst others, the development of secondary markets for non-performing loans.

                  (5)

                  complete the EMU and strengthen the international role of the euro. Make progress on deepening the EMU to increase the resilience of the euro area by completing the Banking Union, by continuing to work, without delay, and with the same level of ambition, on all elements, including those discussed in the High Level Working Group on a European Deposit Insurance Scheme, and by deepening the Capital Markets Union, as well as through support for initiatives implementing digital finance, retail finance and sustainable finance policies. Work further on solutions for overcoming limitations in the current set-up for liquidity provision in resolution and on strengthening the Union’s regulatory and supervisory framework, including by ensuring consistent and effective supervision and enforcement of anti-money laundering rules.

            Further steps in deepening the EMU should take into account the lessons learnt from the Union’s comprehensive economic policy response to the COVID-19 crisis. Progress in deepening the EMU, in full respect of the Union’s internal market and pursued in an open and transparent manner towards non-euro area Member States, will contribute to enhancing the international role of the euro and promote the Union’s economic interests globally.

         Done at Brussels, 13 July 2021.

               For the Council

            Andrej ŠIRCELJ

               Minister of Finance

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

         (2)  OJ L 306, 23.11.2011, p. 25.

         (3)  Regulation (EU) 2021/241 of the European Parliament and of the Council of 12 February 2021 establishing the Recovery and Resilience Facility (OJ L 57, 18.2.2021, p. 17).

         (4)  Council Regulation (EU) 2020/672 of 19 May 2020 on the establishment of a European instrument for temporary support to mitigate unemployment risks in an emergency (SURE) following the COVID-19 outbreak (OJ L 159, 20.5.2020, p. 1).

         (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)  Decision (EU) 2020/440 of the European Central Bank of 24 March 2020 on a temporary pandemic emergency purchase programme (ECB/2020/17) (OJ L 91, 25.3.2020, p. 1).

         (8)  Decision (EU) 2016/948 of the European Central Bank of 1 June 2016 on the implementation of the corporate sector purchase programme (ECB/2016/16) (OJ L 157, 15.6.2016, p. 28).

         (9)  Directive (EU) 2019/1023 of the European Parliament and of the Council of 20 June 2019 on preventive restructuring frameworks, on discharge of debt and disqualifications, and on measures to increase the efficiency of procedures concerning restructuring, insolvency and discharge of debt, and amending Directive (EU) 2017/1132 (Directive on restructuring and insolvency) (OJ L 172, 26.6.2019, p.18).

         (10)  Regulation (EU) No 806/2014 of the European Parliament and of the Council of 15 July 2014 establishing uniform rules and a uniform procedure for the resolution of credit institutions and certain investment firms in the framework of a Single Resolution Mechanism and a Single Resolution Fund and amending Regulation (EU) No 1093/2010 (OJ L 225 30.7.2014, p. 1).


title: Council Recommendation (EU) 2021/1170 of 15 July 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:
                  16.7.2021

                  EN

                  Official Journal of the European Union

                  L 255/3

         COUNCIL RECOMMENDATION (EU) 2021/1170
         of 15 July 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").

                     (2)

                     Since then, the Council adopted Recommendations (EU) 2020/1052 (2), (EU) 2020/1144 (3), (EU) 2020/1186 (4), (EU) 2020/1551 (5), (EU) 2020/2169 (6), (EU) 2021/89 (7), (EU) 2021/132 (8), (EU) 2021/767 (9), (EU) 2021/892 (10), (EU) 2021/992 (11) and (EU) 2021/1085 (12) 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 20 May 2021, the Council adopted Recommendation 2021/816 amending Council Recommendation (EU) 2020/912 on the temporary restriction on non-essential travel into the EU and the possible lifting of such restriction (13) in order to update the criteria used to assess whether non-essential travel from third countries is safe and should be allowed.

                     (4)

                     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.

                     (5)

                     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 amended by Recommendation 2021/816. As a result of these discussions, the list of third countries set out in Annex I should be amended. In particular, Rwanda and Thailand should be removed from the list and Ukraine should be added to the list.

                     (6)

                     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 15 July 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, Special Administrative Regions and other entities and territorial authorities listed in Annex I of the Council Recommendation as amended by this Recommendation.

                     (7)

                     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.

                     (8)

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

                     (9)

                     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 (15).

                     (10)

                     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 (16) read in conjunction with Article 3 of Council Decision 2008/146/EC (17).

                     (11)

                     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 (18) read in conjunction with Article 3 of Decision 2011/350/EU (19),

               HAS ADOPTED THIS RECOMMENDATION:
         Council Recommendation (EU) 2020/912, as amended by Recommendations (EU) 2020/1052, (EU) 2020/1144, (EU) 2020/1186, (EU) 2020/1551, (EU) 2020/2169, (EU) 2021/89, (EU) 2021/132, (EU) 2021/767, (EU) 2021/816, (EU) 2021/892, (EU) 2021/992 and (EU) 2021/1085, 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 15 July 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, Special Administrative Regions and other entities and territorial authorities whose residents should not be affected by temporary external borders restriction on non-essential travel into the EU:

                                       I.

                                       STATES

                                                   1.

                                                   ALBANIA

                                                   2.

                                                   ARMENIA

                                                   3.

                                                   AUSTRALIA

                                                   4.

                                                   AZERBAIJAN

                                                   5.

                                                   BOSNIA AND HERZEGOVINA

                                                   6.

                                                   BRUNEI DARUSSALAM

                                                   7.

                                                   CANADA

                                                   8.

                                                   ISRAEL

                                                   9.

                                                   JAPAN

                                                   10.

                                                   JORDAN

                                                   11.

                                                   LEBANON

                                                   12.

                                                   MONTENEGRO

                                                   13.

                                                   NEW ZEALAND

                                                   14.

                                                   QATAR

                                                   15.

                                                   REPUBLIC OF MOLDOVA

                                                   16.

                                                   REPUBLIC OF NORTH MACEDONIA

                                                   17.

                                                   SAUDI ARABIA

                                                   18.

                                                   SERBIA

                                                   19.

                                                   SINGAPORE

                                                   20.

                                                   SOUTH KOREA

                                                   21.

                                                   UKRAINE

                                                   22.

                                                   UNITED STATES OF AMERICA

                                                   23.

                                                   CHINA ((*))

                                       II.

                                       SPECIAL ADMINISTRATIVE REGIONS OF THE PEOPLE'S REPUBLIC OF CHINA

                                                   Hong Kong SAR

                                                   Macao SAR

                                       III.

                                       ENTITIES AND TERRITORIAL AUTHORITIES THAT ARE NOT RECOGNISED AS STATES BY AT LEAST ONE MEMBER STATE

                                                   Kosovo (*)

                                                   Taiwan

                        ((*))  subject to confirmation of reciprocity"

                        (*)  This designation is without prejudice to positions on status, and is in line with UNSCR 1244 (1999) and the ICJ Opinion on the Kosovo declaration of independence."

            Done at Brussels, 15 July 2021.

                  For the Council

                  The President

               G. DOVŽAN

            (1)  OJ L 208 I, 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)  OJ L 165 I, 11.5.2021, p. 66.

            (10)  OJ L 198, 4.6.2021, p. 1.

            (11)  OJ L 221, 21.6.2021, p. 12.

            (12)  OJ L 235, 2.7.2021, p. 27.

            (13)  OJ L 182, 21.5.2021, p. 1.

            (14)  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).

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

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

            (17)  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).

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

            (19)  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).