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Agreement with Singapore set to give a boost to EU-Asia trade

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The trade and investment agreements between the EU and Singapore have today received the approval of the European Parliament. The Parliament has also given its green light to the Partnership and Cooperation Agreement.

This marks an important step towards their entry into force, boosting the EU economic relations and cooperation with Singapore and leading to an increased presence in the fast-growing Southeast Asian region.

President of the European Commission Jean-Claude Juncker said: “The European Parliament’s approval of the EU-Singapore trade and investment agreements marks a historical moment. This is the European Union’s first bilateral trade agreement with a Southeast Asian country, a building block towards a closer relationship between Europe and one of the most dynamic regions in the world. We are forging closer economic and political ties with friends and partners who, like us, believe in open, reciprocal and rules-based trade. This is yet another win-win trade agreement negotiated by the European Union, an agreement that will create new opportunities for European producers, workers, farmers and consumers, while at the same time promoting cooperation and multilateralism.”

Commissioner for Trade Cecilia Malmström said: “In uncertain times, we need agreements like these more than ever. They will help Europe and Singapore to prosper, boosting our trade and strengthening an already essential relationship. The agreements will benefit workers and farmers, as well as small and big companies on both sides. They include a strong commitment to human and labour rights and to protecting the environment. This is yet another signal that open, fair and rules-based global trade is here to stay.”

Singapore is by far the EU’s largest trading partner in the Southeast Asian region, with a total bilateral trade in goods of over €53 billion and €51 billion-worth of trade in services. Over 10,000 EU companies are established in Singapore and use it as a hub to serve the whole Pacific region. Singapore is also the number one location for European investment in Asia, with investment between the two growing rapidly in recent years: combined bilateral investment stocks reached €344 billion in 2017.

Under the trade agreement, Singapore will remove all remaining tariffs on EU products and will commit to keep unchanged the current duty-free access for all other EU products. The agreement also provides new opportunities for EU services’ providers, among others in sectors such as telecommunications, environmental services, engineering, computing and maritime transport. It will also make the business environment more predictable. Singapore also agreed to remove obstacles to trade besides tariffs in key sectors, for instance by recognising the EU’s safety tests for cars and many electronic appliances or accepting labels that EU companies use for textiles.

The investment protection agreement will ensure a high level of investment protection, while safeguarding the EU’s and Singapore’s rights to regulate and pursue public policy objectives such as the protection of public health, safety and the environment. The agreement will replace 12 bilateral investment treaties existing between EU Members and Singapore putting in place a modern common investment protection framework with a well-balanced Investment Court System for resolving investment disputes.

With both agreements, the EU has made an important stride towards setting high standards and rules for its trade and investments with the fast-growing Southeast Asian region. The agreements offer huge economic opportunities, while fully safeguarding public services and parties’ right to regulate. The trade agreement also includes a comprehensive chapter on trade and sustainable development that sets the highest standards of labour, safety, environmental and consumer protection for trade and investment between the parties; as well as strengthening joint actions on sustainable development and climate change.

Partnership and Cooperation Agreement

EU High Representative for Foreign Affairs and Security Policy/Vice-President of the European Commission, Federica Mogherini, said:“Today’s overwhelmingly positive vote in the European Parliament is good news for strengthening our relations with Singapore. In today’s world you need like-minded partners and friends. Our new agreement will allow us to build on what we have already and to do more together to achieve our common goals, both on the bilateral agenda and in tackling global challenges.”

The Partnership and Cooperation Agreement reinforces the existing relationship between the European Union and Singapore and builds on a shared commitment towards multilateralism and international rules-based order. This Agreement will provide the basis for more effective bilateral engagement between the EU and its Member States and Singapore by strengthening political dialogue and enhancing cooperation in a broad range of areas including sustainable development, democracy and fundamental freedoms, justice, security, connectivity, people-to-people links, information society, education and cultural exchanges as well as employment and social affairs. It will enable us to step up scientific and technological cooperation in fields such as energy, environment, fight against climate change, protection of natural resources, smart cities and transport. It will enhance cooperation on global challenges, where both Singapore and the EU play an increasingly important role, and will help address them in a more coherent way.

Negotiations for the Partnership and Cooperation Agreement started in 2005, and the High Representative/Vice-President Federica Mogherini and her counterpart, the Minister of Foreign Affairs of Singapore, Vivian Balakrishnan, signed the agreement in the margins of the ASEM Summit on 19 October 2018. The Partnership and Cooperation Agreement will need to be ratified by all EU Member States before it enters into force.

Next steps

The EU and Singapore signed the trade and investment agreements on 19 October 2018. Following today’s vote, the trade agreement could then enter into force once Singapore concludes its own internal procedures and both sides complete the final formalities. The investment protection agreement will further need to be ratified by all EU Member States according to their own national procedures before it can enter into force.

Once in place, the agreements will be the first building block of a future region-to-region trade and investment agreement between the EU and entire ASEAN region.

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EU responses to climate change

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Fighting climate change is a priority for the Parliament. Below you will find details of the solutions the EU and the Parliament are working on.

Limiting global warming: a matter of 2°C increase

Average global temperatures have risen significantly since the industrial revolution and the last decade (2008–2017) was the warmest decade on record. Of the 17 warmest years, 16 have occurred since 2000.

Data from the Copernicus Climate Change Service shows that 2018 was also one of the three warmest years on record for Europe. The majority of evidence indicates that this is due to the rise of greenhouse gas emissions produced by human activity.

The average global temperature is today 0.85°C higher than at the end of the 19th century. Scientists consider an increase of 2°C compared to pre-industrialised levels as a threshold with dangerous and catastrophic consequences for climate and the environment.

This is why the international community agrees that global warming needs to stay well below a 2°C increase.

Why is an EU response important?

According to the European Environment Agency, the EU is the world’s third biggest greenhouse gases emitter after China and the US. The energy sector was responsible for 78% of EU greenhouse gas emissions in 2015. Common mitigation efforts are key as climate change affects all EU countries, even if not in the same way.

The Mediterranean region can expect more heat extremes and less rain, while countries in the continental region face higher risk of river floods and forest fires.

EU efforts are paying off. In 2008, the EU set the target to cut emissions by 20% compared to 1990 levels by 2020. It is well on track to reach this goal: in 2015 the level of greenhouse gas emissions in the EU represented a decrease of 22% compared with 1990 levels.

The EU and international climate policy

The EU is a key player in UN climate negotiations. In 2015, it ratified the Paris Agreement, the first universal agreement to combat climate change. Its goal is to mitigate climate change by maintaining the increase in global temperature at 1.5°C compared to pre-industrialised times.

Under the Paris Agreement, the EU committed to cutting greenhouse gas emissions in the EU by at least 40% below 1990 levels by 2030. It has put several measures in place to reach this target.

Cutting greenhouse gas emissions

The EU has put in place different types of mechanisms depending on the sector.

To cut emissions from power stations and industry, the EU has put into place the first major carbon market. With the Emissions Trading System (ETS), companies have to buy permits to emit CO2, so the less they pollute, the less they pay. This system covers 45% of total EU greenhouse gas emissions.

For other sectors such as construction or agriculture, reductions will be achieved through agreed national emissions targets, which are calculated, based on countries’ gross domestic product per capita.

Regarding road transport, in early 2019, the European Parliament backed legislations to reduce CO2 emissions by 37.5% for new cars, 31% for vans and 30% for new trucks by 2030

The EU also wants to use the CO2 absorption power of forests to fight climate change. In 2017 MEPs voted in favour of a regulation to prevent emissions resulting from deforestation and change of land use.

Addressing the energy challenge

The EU also fights climate change with a new clean energy policy adopted by the Parliament in 2018. The focus is on increasing the share of renewable energy consumed to 32% by 2030 and creating the possibility for people to produce their own green energy.

In addition the EU wants to improve energy efficiency 32.5% by 2030 and adopted legislation on buildings and household appliances.

EU funding for climate

Climate mitigation and adaptation goals are integrated into the EU’s main spending programmes. The EU agreed to make at least 20% of EU expenditure climate-related in 2014-2020, including the €3.4 billion LIFE environment and action programme.

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GDPR one year on: 73% of Europeans have heard of at least one of their rights

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Today, at the occasion of a stock-taking event to mark the first year of application of the EU General Data Protection Regulation, the European Commission is publishing the results of a special Eurobarometer survey on data protection. The results show that Europeans are relatively well aware of the new data protection rules, their rights and the existence of national data protection authorities, to whom they can turn for help when their rights are violated.

Andrus Ansip, Vice-President for the Digital Single Market said: “European citizens have become more aware of their digital rights and this is encouraging news. However, only three in ten Europeans have heard of all their new data rights. For companies, their customers’ trust is hard currency and this trust starts with the customers’ understanding of, and confidence in, privacy settings. Being aware is a precondition to being able to exercise your rights. Both sides can only win from clearer and simpler application of data protection rules.”

Věra Jourová, Commissioner for Justice, Consumers and Gender Equality added: “Helping Europeans regain control over their personal data is one of our biggest priorities. But, of the 60% Europeans who read their privacy statements, only 13% read them fully. This is because the statements are too long or too difficult to understand. I once again urge all online companies to provide privacy statements that are concise, transparent and easily understandable by all users. I also encourage all Europeans to use their data protection rights and to optimise their privacy settings”.

Based on the views of 27,000 Europeans, the Eurobarometer results show that 73% of respondents have heard of at least one of the six tested rights guaranteed by the General Data Protection Regulation. The highest levels of awareness among citizens are recorded for the right to access their own data (65%), the right to correct the data if they are wrong (61%), the right to object to receiving direct marketing (59%) and the right to have their own data deleted (57%).

In addition, 67% of respondents know about the General Data Protection Regulation and 57% of respondents know about their national data protection authorities. The results also show that data protection is a concern, as 62% of respondents are concerned that they do not have complete control over the personal data provided online.

Also today, the European Commission organises an event bringing together national and EU authorities and businesses to mark the first year of implementation of the EU General Data Protection Regulation, in the presence of Commissioner Jourová.

Next steps

The Commission is launching today an awareness raising campaign to encourage citizens to read privacy statements and to optimise their privacy settings so that they only share the data they are willing to share.

The Commission will also report on the application of General Data Protection Regulation in 2020.

Background

The General Data Protection Regulation is a single set of rules with a common EU approach to the protection of personal data, directly applicable in the Member States. It reinforces trust by putting individuals back in control of their personal data and at the same time guarantees the free flow of personal data between EU Member States. The protection of personal data is a fundamental right in the European Union.

The GDPR has been applicable since 25 May 2018. Since then, nearly all Member States have adapted their national laws in the light of GDPR. The national Data Protection Authorities are in charge of enforcing the new rules and are better coordinating their actions thanks to the new cooperation mechanisms and the European Data Protection Board. They are issuing guidelines on key aspects of the GDPR to support the implementation of the new rules.

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Deepening Europe’s Economic and Monetary Union

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Ahead of the Euro Summit on 21 June 2019, the European Commission today takes stock of the progress made to deepen Europe’s Economic and Monetary Union since the Five Presidents’ Report and calls on Member States to take further concrete steps.

In the four years since the publication of the report, marked progress has been made to strengthen the single currency area and make Europe’s Economic and Monetary Union more robust than ever. Many of the gaps revealed by the post-2007 economic, financial and social crisis have been addressed. Yet, important steps still need to be taken. The single currency and the coordination of economic policy-making are means to an end: more jobs, growth, investment, social fairness and macroeconomic stability for the members of the euro area as well as the EU as a whole. 

European Commission President Jean-Claude Juncker said: “This Commission has fought hard for the completion of the Economic and Monetary Union: a lot has been achieved but a lot remains to be done. This is about creating jobs, growth and social fairness for our citizens. It is about preserving the stability and resilience of our economies and it is about Europe’s capacity to take its future into its own hands.”

Ahead of the Euro Summit of 21 June, the Commission invites EU leaders:

To reach an agreement on the main features of the Budgetary Instrument for Convergence and Competitiveness with a view to supporting a swift adoption by the European Parliament and the Council. To agree on its size in the context of the Multiannual Financial Framework.

To finalise the changes to the Treaty establishing the European Stability Mechanism with a view to a swift ratification by the euro-area Member States, including an operational and effective common backstop, the provision of liquidity in resolution and active and effective precautionary instruments. To preserve a clear delineation of responsibilities between actors and the possibility to adjust the EU Single Rulebook for banks according to the Community method. To integrate the European Stability Mechanism into EU law over time.

To make a renewed effort to complete the Banking Union starting with political negotiations on the European Deposit Insurance Scheme.

To accelerate progress on the Capital Markets Union and step up work to strengthen the international role of the euro.

The Commission also reviews the main progress of recent years beyond the deliverables expected at the Euro Summit of June 2019 and maps out the way forward for the coming years.

Since the Euro Summit of December 2018, discussions have proceeded on the future Budgetary Instrument for Convergence and Competitiveness for the euro area, building on the Commission’s proposal for a Reform Support Programme; a compromise is within reach and should be taken forward with determination.

Discussions have also taken place on the reform of the European Stability Mechanism, in particular to provide for a backstop to the Single Resolution Fund in the form of a credit line. The backstop is expected to serve as a last resort to support effective and credible bank crises management within the Single Resolution Mechanism. It will be repaid via contributions from the European banking sector.

The completion of the Banking Union and Capital Markets Union (CMU) is also essential when it comes to bolstering the resilience and stability of the euro.

Significant progress has been made in further reducing risk in the Banking Union. The Commission’s latest progress report shows that the ratio of non-performing loans for all EU banks continues to decline and is down to 3.3% in the third-quarter of 2018, continuing its downward trajectory towards pre-crisis levels. Looking ahead, it is essential to progress with a common deposit insurance scheme for the euro area.

The CMU will foster further market integration and help ensure that Europe’s capital markets can withstand major internal or external challenges to the stability of the Economic and Monetary Union.

Encouraged by Leaders in December to continue its work on the file, the Commission also takes stock of the ongoing work towards developing the international use of the euro. The euro is twenty years young and is the world’s second currency, which remained strong even at the height of the financial and debt crisis. To understand better how to boost the global use of the euro – and to identify any obstacles to this – the Commission in recent months actively consulted market participants in different sectors (foreign exchange, energy, raw materials, agricultural commodities and transport).

These consultations showed that:

there is broad support for reducing dependence on a single dominant global currency;

the euro is the only currency with all of the necessary attributes that market participants seek to use as an alternative to the US dollar;

the energy sector will remain a key currency driver of use of the euro, with scope to further increase its use, such as in the gas sector;

there is recognition that the EU, through the euro, can reinforce its economic sovereignty and play a more important global role to benefit EU business and consumers.

The Commission, together with the European Central Bank, will continue to work with Member States, market participants and other stakeholders, and calls upon the European Parliament, the Council and all interested parties to support the efforts increase the international role of the euro.

Background

Almost exactly four years ago, President Jean-Claude Juncker, together with the President of the Euro Summit, Donald Tusk, the then-President of the Eurogroup, Jeroen Dijsselbloem, the President of the European Central Bank, Mario Draghi, and the then-President of the European Parliament, Martin Schulz, published an ambitious plan on how to deepen Europe’s Economic and Monetary Union (EMU) by latest 2025.

Building on the vision of the Five Presidents’ Report, the Commission followed up with the White Paper on the Future of Europe of March 2017, the thematic Reflection Papers on the Deepening of the Economic and Monetary Union and the Future of EU Finances in May 2017. In December 2017, the Juncker Commission set out a roadmap and adopted a number of concrete proposals with the overall aim of enhancing the unity, efficiency and democratic accountability of Europe’s Economic and Monetary Union by 2025.

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