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Explainer: EU Emergency Support Instrument for the healthcare sector

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What does the Commission propose to support the healthcare sector?

The Commission wants to directly support the healthcare systems of EU Member States in their fights against the coronavirus pandemic through measures that can best be taken at EU level. For this purpose and based on the solidarity principle, the Commission will complement in a fast, flexible and direct way the ongoing efforts at national level.

More concretely and as a first stage, the Commission has drawn up an initial needs assessment and will be working with Member States to further detail and prioritise their necessities.

To finance this action, the Commission is mobilising €3 billion from the EU budget, of which €2.7 billion will be channelled through the Emergency Support Instrument and €300 million though the rescEU medical equipment capacity. Additional contributions will be possible from Member States and also individuals, foundations and even crowd funding.

In this way, the Commission will be able to:

-directly purchase or procure emergency support on behalf of Member States and distributing medical supplies such as masks and respirators;

-financially support and co-ordinate pressing needs such as the transportation of medical equipment and of patients in cross-border regions;

-support the construction of mobile field hospitals.

To make use of efficiency gains and generate economies of scale, wherever possible, the Commission will directly procure on behalf of Member States and focus the help where the needs are.

In the medium- to long-term and thanks to these tools, the EU will be able to support testing capacities of its Member States and to support any relevant medical research. In this way, the Commission will be providing an EU response throughout the health crisis, until its exit.

To implement the initiative, the Commission will work with Member States national health authorities, international organisations and with the non-governmental sector.

What action can be undertaken via the Emergency Support Instrument?

The Emergency Support Instrument will allow the EU to provide a coordinated EU response throughout the different stages of the crisis.

The concrete action will depend on the needs of the EU countries. For example, the Commission will work to:

-support the imports, transport and distribution of protective gear, focusing on worst hit regions;

-assist the transportation of patients in need to cross-border hospitals which can offer free capacity;

-boost the swift development of medication and testing methods.

Other actions will also be possible, according to the evolving needs of Member States, hospitals, doctors and patients.

How will this action be financed?

To secure the necessary financing, the Commission is relying entirely on the EU budget for 2014-2020 and mobilising all available resources within the spending limits for 2020.

This is why today the Commission has also put forward a Draft Amending Budget – a proposal to reorganise part of the EU spending for the year in line with the latest priorities – to secure:

€300 million for the rescEU-medical equipment capacity.This will help to procure and distribute further medical supplies across the EU. The funding comes on top of the €80 million already allocated last month.

€2.7 billion directly to the European Union’s Emergency Support Instrument – whose general purpose is to complement the other EU instruments, where they cannot act alone, by directly respond to crisis situations across the EU – and to amend it so that it can be used in the context of the coronavirus pandemic.

The Commission will activate the remaining flexibility of the current long-term budget – reserves which go beyond the annual ceilings – to finance this operation.

The needs are obviously bigger than the budget you have. How are you going to bridge the gap?

Given the medium- to long-term perspective of the proposed action, the Commission will explore further avenues to attract financing. These include donations by individuals, foundations and even crowd funding. The Commission is looking into putting in place all necessary modalities to allow speedy collection of contributions and donations. The budget could be further reinforced through these means as well as fresh budget appropriation in 2021 once a budget for 2021 is in place (based on an agreement on the MFF 2021-2027).

How will this money be distributed among Member States?

The objective of the initiative will be to provide targeted support to the Member States and regions most concerned.

Given the rapid evolution of the health crisis across the Union, there cannot be a pre-determined allocation per Member State. The team running the initiative will monitor the ongoing developments and respond based on the relative severity of the crisis in the different Member States as well as already existing measures and instruments.

To map EU countries’ most pressing necessities and be able to direct money where the needs are, the Commission has already started working with Member States’ national health authorities. This preliminary assessment will serve to identify the first steps to make and the decisions to take. Additional consultations with Member States and specific requests from their part will also be taken into account.

Who will be implementing the initiative?

The Commission will have a central role in implementing the initiative. For this purpose, the Commission is setting up a Task Force from across its departments, which will work, on a full time basis, to turn the ideas into action. The team in charge will include experts in crisis management, health policy, transport, EU public procurement and financial management.

Of course, the Commission will work closely with Member States’ national authorities as well as international organisations and the non-governmental sector.

Which will be the next steps?

Today, the Commission has put forward a comprehensive legislative proposal to finance and implement its action to directly support Member States’ healthcare sectors. The Commission is inviting the European Parliament and the Council to endorse this initiative as soon as possible.

In the meantime, the Commission will be working to identify and prepare the first actions that need to be undertaken so that implementation can start as soon as the legislative proposals have been adopted.

What other actions have been supported by the EU budget?

The EU has already taken a series of action to address the coronavirus pandemic across the EU, in the Western Balkans and in the Eastern Partnership countries.

Measures taken so far notably include unlocking €37 billion of investments from the EU cohesion funds to enable Member States buy medical supplies, pay doctors and help small and medium-sized enterprises keep paying their staff; creating the first-ever RescEU medical capacity and financing the repatriation of EU nationals stranded around the world. So far, the Union Civil Protection Mechanism has facilitated the repatriation of 10,017 EU citizens to Europe on 47 flights.

However, the scale and scope of the challenge requires an even more robust co-ordinated response, targeted directly at the health care systems, which builds on the solidarity and enhances cooperation between EU Member States.

Today’s initiative will be complementary to and consistent with the action taken so far. It will seek to add to what national healthcare authorities are already doing by creating synergies and making best use of economies of scale.

How the rescEU medical capacity works?

The medical capacity will be hosted by one or several Member States. The hosting State will be responsible for procuring the equipment. The Commission will finance 100% of the medical capacity. The Emergency Response Coordination Centre will manage the distribution of the equipment to ensure it goes where it is needed most.

The initial EU budget of the capacity is €80 million, of which €70 million is subject to the approval of the budgetary authorities.

Who can use strategic capacity of critical medical assets under rescEU?

rescEU capacities are primarily available to complement national capacities of all countries that are part of the Union Civil Protection Mechanism (UCPM): all EU Member States, the UK during the transition period and six Participating States (Iceland, Norway, Serbia, North Macedonia, Montenegro and Turkey).

If national capacities and including those pre-committed to the European Civil Protection Pool under the Mechanism are not sufficient to ensure an effective response to an emergency, rescEU capacities can be activated as a last resort and strategic reserve at European level.

Other countries can in principle also request support to the EU Civil Protection Mechanism. If no assistance is offered on spontaneous basis or through the European Civil Protection Mechanism, rescEU capacities such as the newly created stockpile can be deployed in third countries but only for an emergency with a major impact on Member States or EU citizens.

However, in view of current high demand for medical capacities under the Union Civil Protection Mechanism from countries participating in the Mechanism, it is at this stage unlikely that the rescEU capacity can be used for response operations in countries not participating in the Mechanism.

How are you going to report on how the project is being implemented and on how the money has been spent?

In full transparency, the Commission is going to set up a dedicated section on its website where it will report on the progress made and on the steps ahead

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EU Politics

EU-Australia Leaders’ Virtual Meeting

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The President of the European Council, Charles Michel, the President of the European Commission, Ursula von der Leyen, and the Prime Minister of Australia, Scott Morrison, held a Leaders’ Virtual Meeting on 26 November 2020.

The leaders reconfirmed their resolve to work together to fight the COVID-19 pandemic and underlined their commitment to take effective measures to protect health and build more innovative, sustainable, inclusive and resilient economies.

The leaders reaffirmed the shared values that underpin the bilateral relationship as enshrined in the EU-Australia Framework Agreement. The EU and Australia share a commitment to democracy, the rule of law, the protection and promotion of human rights, and gender equality. They are strong supporters of the international rules-based order and an effective multilateral system with the United Nations at its core. The leaders discussed enhancing cooperation in international fora.

Underscoring that global cooperation is vital in overcoming COVID-19, the leaders welcomed the outcomes of the G20 Leaders’ Summit on 21-22 November. They referred to the significant contributions the EU and Australia have made towards the global response to COVID-19. They welcomed the support provided to each other’s citizens affected by travel disruptions.

The EU and Australia are committed to ensure universal, equitable and early access to safe, effective and affordable COVID-19 vaccines, diagnostics and therapeutics. Both sides have notably committed substantial funding to the almost €16 billion (A$26 billion) raised through the EU-led Coronavirus Global Response pledging marathon. The leaders stressed the importance of continued international support for the Access to COVID-19 tools (ACT) Accelerator and its COVAX Facility. They agreed to strengthen bilateral research and innovation cooperation and to share research data to combat the pandemic.

The leaders agreed that the EU and Australia will continue to work together to strengthen the World Health Organisation and global preparedness and response to health emergencies. They called for continued and timely implementation of the World Health Assembly resolution of 19 May 2020, including with respect to the independent evaluation of the international response to the pandemic.

The EU and Australia are stepping up cooperation on post-pandemic socio-economic recovery and are implementing the G20 Action Plan. They will also discuss the recovery at the next Asia-Europe Meeting (ASEM) Summit. The leaders committed to recovery plans that accelerate emissions reductions, and ensure communities and institutions are more resilient and able to adapt to future impacts of climate change, as well as accelerating the digital transformation. They emphasised that global supply chains need to be more resilient and sustainable. They agreed to further cooperate on critical raw materials and on the promotion of diverse critical technology markets.

Both sides reconfirmed their commitment to open and fair trade. They underlined the need to support the multilateral rules-based trading system and to render it fit for current challenges. The EU and Australia will continue to work together, including in the Ottawa Group, to reform and strengthen the WTO, including its negotiating and monitoring function, in particular with regard to level playing field. On reform of the WTO’s dispute settlement system, the two sides reiterated their desire that the WTO membership collectivelyfind a timely and long-lasting solution that would restore a binding, two-tier and independent dispute settlement system in the WTO. The EU and Australia will engage constructively in areas of common interest on the WTO agenda, including sustainable development, e-commerce and fisheries subsidies.

The Leaders noted good progress in the negotiations for an ambitious and comprehensive bilateral trade agreement. The timely conclusion of such an agreement would create growth opportunities, deepen economic integration and reinforce our shared support for rules-based trading arrangements.

The leaders agreed to enhance cooperation to promote shared interests in security and prosperity in Asia and the Pacific, spanning the Indian and Pacific oceans. They recognised the importance of the principles of regional engagement set out in the ASEAN Outlook on the Indo-Pacific, including openness, transparency, a rules-based framework, good governance and respect for sovereignty and international law. In this regard, they agreed to work together in the ASEAN Regional Forum and also to continue their dialogue on cooperation in other ASEAN-led processes. The leaders expressed serious concern about the unilateral and destabilising actions in the South China Sea and underlined the importance of upholding international law, particularly the United Nations Convention on the Law of the Sea. They underlined that dialogue is the only way to achieve peace and stability on the Korean Peninsula and urged the DPRK to comply with all relevant UN Security Council resolutions. 

The leaders stressed that other regional issues should also be resolved through peaceful dialogue and in accordance with international law, including in relation to Belarus and the Eastern Mediterranean.

Underlining the importance of assisting the most vulnerable countries, including in Africa, the leaders welcomed the extension of the G20/Paris Club Debt Service Suspension Initiative (DSSI) and the recently endorsed Common Framework for Debt Treatment beyond the DSSI.

The leaders emphasised their commitment to working with Pacific Island countries and Timor-Leste to build resilience in line with the Agenda 2030. In 2020 the EU has committed €120 million in support of the COVID-19 response in these countries and will continue to provide development assistance to them. Australia has made an allocation of €188 million to assist the region respond to COVID-19 over the next two years as well as separate funding to support vaccine access.

The leaders agreed that resolute and coordinated action is key to tackling the urgent challenge of climate change and environmental degradation. The EU and Australia underlined their commitment to the full implementation of the Paris Agreement and to step up global action to tackle climate change in the lead up to COP26 in 2021. The EU highlighted its commitment to achieve climate neutrality by 2050, while Australia will also demonstrate significant ambition on reducing emissions and pursuing a low emissions development strategy in order to achieve climate neutrality as soon as possible in accordance with the Paris Agreement. The leaders recalled the request by UNFCCC COP21 to communicate or update their Nationally Determined Contributions reflecting the highest possible ambition. The EU and Australia have agreed to collaborate on international technology partnerships. The leaders also underlined their commitment to move towards the circular economy and called for an ambitious global biodiversity framework at the UN Convention on Biological Diversity COP15 in 2021.

Committed to promoting digital transformation based on shared values, Australia and the EU have initiated a digital economy and technology dialogue and agreed to cooperate on artificial intelligence, blockchain, the use of digital tools to address climate change and disaster resilience, quantum technology and the role of platforms. Recognising the importance of a fair and sustainable international tax system, the leaders reaffirmed their commitment to reach by mid-2021 a global solution that addresses the tax challenges arising from the digitisation of the economy.

The leaders welcomed the recent UN resolution on responsible behaviour in space. They also welcomed the establishment of a bilateral space dialogue to advance collaboration.

The leaders restated their commitment to promote sustainable, comprehensive and rules-based connectivity and to implementation of the G20 Principles for Quality Infrastructure Investment. They agreed to explore synergies between their cooperation on connectivity with third countries, particularly in the Indo-Pacific region. They confirmed their resolve to launch in the near future an EU-Australia Transport Dialogue.

On security and defence issues, the leaders looked forward to strengthened cooperation in areas such as counterterrorism and prevention of radicalisation leading to violent extremism and terrorism, cyber and critical technology issues, countering disinformation and foreign interference, protection of critical infrastructure and maritime security. They agreed to continue engagement in crisis management as provided for in the EU-Australia Framework Participation Agreement.

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Commission approves contract with Moderna to ensure access to a potential vaccine

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European Commission approved a sixth contract under the EU Vaccines Strategy, this time with the pharmaceutical company Moderna. The contract provides for the initial purchase of 80 million doses on behalf of all EU Member States, plus an option to request up to a further 80 million doses, to be supplied once a vaccine has proven to be safe and effective against COVID-19.

The contract with Moderna will enlarge the already broad portfolio of vaccines to be produced in Europe, including the contracts signed with AstraZeneca, Sanofi-GSK, Janssen Pharmaceutica NV, BioNTech-Pfizer and the contract approved with CureVac. This diversified vaccines portfolio will ensure Europe is well prepared for vaccination, once the vaccines have been proven to be safe and effective. Member States can also decide to donate the vaccine to lower and middle-income countries or to re-direct it to other European countries.

President of the European Commission, Ursula von der Leyen, said: “I’m very happy to announce today’s agreement with the company Moderna to purchase up to 160 million doses of their future vaccine. This is our sixth contract with a vaccine producer, and we are working on yet another one. We are setting up one of the most comprehensive COVID-19 vaccine portfolios in the world, providing Europeans access to the most promising future vaccines under development so far. A safe and effective vaccine can help us end the pandemic, and return gradually to normal life.”

Stella Kyriakides, Commissioner for Health and Food Safety, said: “Today’s agreement with Moderna is yet another important milestone of our EU Vaccines Strategy. I am happy that we have now concluded six vaccine agreements so far. This is a clear demonstration of the European Health Union in action: a European Union that delivers tangible results for its citizens and a blueprint for our cooperation in the area of health in the future. A safe and effective vaccine is more important than ever in helping to restore normality and overcome this pandemic. No one is safe until everyone is safe.”

Moderna is a U.S. based company pioneering the development of a new class of vaccines based on messenger RNA (mRNA) transported into cells by lipid nanoparticles. The vaccine platform has been developed over the last decade. The basic principle is the use of this molecule as a data carrier, with the help of which the body itself can make proteins and trigger lasting immunity to COVID-19.

The Commission has taken a decision to support this vaccine based on a sound scientific assessment, the technology used, and its production capacity in Europe to supply the whole of the EU.

Background

The European Commission presented on 17 June a European strategy to accelerate the development, manufacturing and deployment of effective and safe vaccines against COVID-19. In return for the right to buy a specified number of vaccine doses in a given timeframe, the Commission finances part of the upfront costs faced by vaccines producers in the form of Advance Purchase Agreements. Funding provided is considered as a down-payment on the vaccines that will actually be purchased by Member States on the basis of the Advance Purchase Agreements.

Since the high cost and high failure rate make investing in a COVID-19 vaccine a high-risk decision for vaccine developers, these agreements will therefore allow investments to be made that otherwise might not happen.

Once vaccines have been proven to be safe and effective and have been granted market authorisation by the European Medicines Agency, they need to be quickly distributed and deployed across Europe. On 15 October, the Commission set out the key steps that Member States need to take to be fully prepared, which includes the development of national vaccination strategies. The Commission is putting in place a common reporting framework and a platform to monitor the effectiveness of national vaccine strategies.

The European Commission is also committed to ensuring that everyone who needs a vaccine gets it, anywhere in the world and not only at home. No one will be safe until everyone is safe. This is why it has raised almost €16 billion since 4 May 2020 under the Coronavirus Global Response, the global action for universal access to tests, treatments and vaccines against coronavirus and for the global recovery and has confirmed its interest to participate in the COVAX Facility for equitable access to affordable COVID-19 vaccines everywhere. As part of a Team Europe effort, the Commission announced is contributing with €400 million in guarantees to support COVAX and its objectives in the context of the Coronavirus Global Response. On 12 November, the European Union announced the contribution of an additional €100 million in grant funding to support the COVAX Facility.

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Inclusion for all: Action plan on Integration and Inclusion 2021-2027

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Commission is presenting the action plan on Integration and Inclusion for the period 2021-2027. The action plan promotes inclusion for all, recognising the important contribution of migrants to the EU and addressing the barriers that can hinder participation and inclusion of people with a migrant background, from newcomers to citizens, in European society. It is built on the principle that inclusive integration requires efforts from both the person and the host community and sets out new actions that build on the achievements of the previous action plan from 2016.

Vice-President for Promoting our European Way of Life, Margaritis Schinas, said: “Inclusion is the embodiment of the European way of life. Integration and inclusion policies are vital for newcomers, for local communities, and contribute to cohesive societies and strong economies. Everyone who has the right to be in Europe should have access to the tools they need to realise their full potential and assume the rights and obligations governing our Union.”

Commissioner for Home Affairs, Ylva Johansson, said: “Migrants are ‘us’, not ‘them’. Everyone has a role to play in making sure our societies are cohesive and prosperous. Integration and inclusion mean listening to migrant communities and ensuring that everyone can enjoy rights, regardless of background. Inclusive integration is giving the same tools and support needed to contribute to society, so that migrants can reach their full potential and our societies benefit from their strength and skills.”

 A European approach to integration and inclusion

As emphasised in the new Pact on Migration and Asylum, successful integration and inclusion is an essential part of a well-managed and effective migration and asylum policy. It is also essential for social cohesion and for a dynamic economy that works for all.

The action plan proposes targeted and tailored support that takes into account individual characteristics that may present specific challenges to people with a migrant background, such as gender or religious background. Successful integration and inclusion depends both on early action and on long-term commitment.

Although national governments are primarily responsible for creating and implementing social policies, the EU plays a key role in supporting Member States through funding, developing guidance and fostering relevant partnerships. The main actions are:

  • Inclusive education and training from early childhood to higher education, focusing on facilitating the recognition of qualifications and continued language learning, with support from EU funds.
  • Improving employment opportunities and skills recognition to fully value the contribution of migrant communities, and women in particular, and ensure that they are supported to reach their full potential. The Commission will work with social and economic partners and employers to promote labour market integration, support entrepreneurship and make it easier for employers to recognise and assess skills.
  • Promoting access to health services, including mental healthcare, for people with a migrant background. In addition to dedicated EU funding, the action plan seeks to ensure people are informed about their rights and recognises the specific challenges faced by women, in particular during and after pregnancy. The action plan also supports Member States to exchange best practice.
  • Access to adequate and affordable housing funded through the European Regional Development Fund, European Social Fund Plus, Asylum and Migration Fund and Invest EU, as well as funding platforms to exchange of experience at local and regional level on fighting discrimination on the housing market and segregation.

The action plan will be implemented by mobilising EU funding and by creating partnerships with all those involved: migrants, host communities, social and economic partners, civil society, local and regional authorities as well as the private sector. It will empower host communities and support their role in the design and implementation of integration measures and programmes, while also emphasising the responsibility of the people concerned in participating in the host society. It will seek to modernise access to services by using digital tools. Finally, it will improve the evidence base to help further development of policies and to ensure good monitoring of results.

Background

Today, around 34 million EU inhabitants were born outside the EU (around 8% of the EU population), and 10% of young people (15–34 years) born in the EU have at least one foreign-born parent. Migrants and EU citizens with a migrant background play a key role in  European society and in different sectors of our economy, including as essential workers. However, they continue to face challenges in terms of access to education, employment, healthcare and social inclusion (see statistics).

The action plan on Integration and Inclusion complements existing and upcoming EU strategies to foster equality and social cohesion to ensure everyone is fully included and able to participate in European societies. It will be implemented with the forthcoming action plan to implement the European Pillar of Social Rights and the EU’s anti-racism action plan. It will also be closely linked with the EU Roma strategic framework for equality, inclusion and participation; the Gender Equality Strategy 2020-2025; the LGBTIQ equality strategy 2020-2025, the forthcoming strategy to combat antisemitism and the EU citizenship report.

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