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
Green Deal: €1 billion investment to boost the green and digital transition
The European Commission has decided to launch a €1 billion call for research and innovation projects that respond to the climate crisis and help protect Europe’s unique ecosystems and biodiversity. The Horizon 2020-funded European Green Deal Call, which will open tomorrow for registration, will spur Europe’s recovery from the coronavirus crisis by turning green challenges into innovation opportunities.
Mariya Gabriel, Commissioner for Innovation, Research, Culture, Education and Youth said: “The €1 billion European Green Deal call is the last and biggest call under Horizon 2020. With innovation at its heart, this investment will accelerate a just and sustainable transition to a climate-neutral Europe by 2050. As we do not want anyone left behind in this systemic transformation, we call for specific actions to engage with citizens in novel ways and improve societal relevance and impact.”
This Green Deal Call differs in important aspects from previous Horizon 2020 calls. Given the urgency of the challenges it addresses, it aims for clear, discernible results in the short to medium-term, but with a perspective of long-term change. There are fewer, but more targeted, larger and visible actions, with a focus on rapid scalability, dissemination and uptake.
The projects funded under this call are expected to deliver results with tangible benefits in ten areas:
Eight thematic areas reflecting the key work streams of the European Green Deal:
- Increasing climate ambition
- Clean, affordable and secure energy
- Industry for a clean and circular economy
- Energy and resource efficient buildings
- Sustainable and smart mobility
- Farm to fork
- Biodiversity and ecosystems
- Zero-pollution, toxic-free environments
And two horizontal areas – strengthening knowledge and empowering citizens, which offer a longer-term perspective in achieving the transformations set out in the European Green Deal.
The €1 billion investment will continue building Europe’s knowledge systems and infrastructures. The call includes opportunities for international cooperation in addressing the needs of less-developed nations, particularly in Africa, in the context of the Paris Agreement as well as the Sustainable Development Goals (SDGs).
The deadline for submissions is 26 January 2021, with selected projects expected to start in autumn 2021.
A Horizon 2020 Green Deal Call Info Day & Brokerage event will take place as part of the virtual European Research & Innovation Days that will take place from 22-24 September 2020.
The European Green Deal is the European Commission’s blueprint and roadmap to make Europe the first climate neutral continent by 2050, with a sustainable economy that leaves no one behind.
To reach this 2050 goal, action will be required by all sectors of our economy, including:
- investing in environmentally-friendly technologies;
- supporting industry to innovate;
- rolling out cleaner, cheaper and healthier forms of private and public transport;
- decarbonising the energy sector;
- ensuring buildings are more energy efficient;
- working with international partners to improve global environmental standards.
Why social fairness and solidarity are more important than ever
EU Commission’s services have published the 2020 edition of the Employment and Social Developments in Europe (ESDE) review dedicated to the theme of social fairness and solidarity. The review provides evidence-based analysis on how to achieve greater fairness across the EU in the face of crises such as the COVID-19 pandemic as well as structural changes due to demographic ageing, and the green and digital transitions.
Commissioner for Jobs and Social Rights Nicolas Schmit said: “The ESDE report shows that strengthening social fairness is key to overcoming the crisis. This requires putting people front and centre. To ensure resilience, solidarity and cohesion, the EU’s response has to prioritise employment, reduce inequalities and ensure equal opportunities. The effective implementation of the European Pillar of Social Rights will serve as our guide.”
The review notes that the COVID-19 pandemic is having profound health, economic, employment and social effects, threatening much of the progress that the EU had achieved previously. All Member States are experiencing a greater economic shock than in 2008-2009. Economic output has contracted sharply and unemployment is on the rise. The most vulnerable persons, including Europe’s youth, are hit particularly hard.
Against this background, the ESDE report points to the following findings:
Adequate minimum wages and minimum income can have a beneficial effect on the social mobility of Europeans.
Strengthening social fairness, including through investments in people, pays off. Closing gender-related gaps brings particularly high returns, while extending working lives, and raising educational attainment also have positive effects.
Structural change, such as the green transition, has to be accompanied by social measures to be successful. Notably, this transition requires social investment in the form of re-skilling programmes and/or unemployment benefits. According to ESDE, this social investment could amount to €20 billion or more until 2030.
Short-time work schemes are protecting jobs effectively. The EU is helping Member States to provide such support through solidarity mechanisms like the instrument for temporary Support to mitigate Unemployment Risks in an Emergency (SURE).
Social dialogue and collective bargaining influence fairness and its perception at the workplace by promoting more equitable wages, better working conditions and more inclusive labour markets.
More generally, to repair the damage done by COVID-19 and prepare an economy and society for a future of faster structural changes, the EU and Member States need to embrace fully the opportunities offered by the transition to a greener, digitalised economy and build inclusiveness, solidarity and resilience into the design of all policies. Ensuring a broad-based recovery is a key policy objective of our policy action, which will help strengthen social resilience in the longer run.
The annual Employment and Social Developments in Europe review prepared by the Directorate-General of Employment, Social Affairs and Inclusion, provides up-to-date economic analysis of employment and social trends in Europe and discusses related policy options. It is the European Commission’s analytical flagship report in the area of employment and social affairs, mandated by Articles 151, 159 and 161 of the Treaty on the Functioning of the European Union (TFEU).
There are many examples in which the Commission focuses on addressing the challenges raised in the yearly ESDE reports. In April 2020, the Commission proposed the SURE instrument, which will provide €100 billion in financial support to help protect jobs and workers affected by the coronavirus pandemic. In May 2020, the Commission put forward a powerful, modern and revamped long-term EU budget boosted by NextGenerationEU, an emergency temporary recovery instrument, to help repair the economic and social damage brought by the coronavirus pandemic, kickstart the recovery and prepare for a better future for the next generation. The Recovery and Resilience Facility will be one of EU’s main recovery tools, providing an unprecedented €672.5 billion of loans and grants in frontloaded financial support for the crucial first years of the recovery. The European Social Fund Plus (ESF+) will continue to invest in people, while an improved European Globalisation Adjustment Fund (EGF) will be able to intervene even more effectively to support workers who have lost their jobs. The European Pillar of Social Rights and its upcoming Action Plan, as well as initiatives and tools such as the European Skills Agenda, the Youth Employment Support initiative or the Digital Europe Programme will all contribute to address challenges identified in the ESDE.
EU-China Leaders’ Meeting: Upholding EU values and interests
The European Union and China held a Leaders’ Meeting via videoconference on 14 September 2020. An EU-China Leaders’ meeting with the participation of leaders of all EU member states was initially scheduled to take place on this date. President of the European Council, Charles Michel, President of the European Commission, Ursula von der Leyen, and the Federal Chancellor of Germany, Angela Merkel, for the Council Presidency, conducted the videoconference with Chinese President Xi Jinping. The meeting provided an opportunity to follow up on discussions at the 22nd EU-China Summit (22 June). The meeting was important to maintain the momentum of EU-China high-level exchanges in order to achieve concrete results in line with EU interests and values.
The comprehensive agenda of the Leaders’ meeting covered trade and investment, climate change and biodiversity, the response to the COVID-19 pandemic, as well as international affairs and other issues.
With regard to the negotiations for an ambitious EU-China Comprehensive Investment Agreement (CAI), while both sides registered progress on the rules regulating the behaviour of State-owned-enterprises, on forced technology transfer and on transparency of subsidies, the EU emphasised that more work was urgently needed on the issues of rebalancing market access and on sustainable development. The EU called on China to step up its ambition on these issues. The two sides reaffirmed their objective of closing the remaining gaps before the end of the year. The EU side emphasised that high-level political engagement would be required within the Chinese system to achieve a meaningful agreement.
On other trade and economic issues, the EU reiterated its call on China to engage in future negotiations on industrial subsidies in the WTO. The EU stressed that, in line with China’s stated commitment to open up and ensure that EU producers are fairly treated on the Chinese market, more needed to be done to improve market access in the agri-food trade, financial services and the digital sector. The EU also again made clear its concerns on overcapacity, both in traditional sectors such as steel and aluminium as well as in high tech.
The two sides welcomed the signature of the EU-China Agreement on Geographical Indications which will improve access to the Chinese market especially for high-quality European agricultural products.
The EU underlined the need for reciprocity and a level playing field in the area of science and technology, underpinned by high ethical and integrity standards. Leaders welcomed and agreed to continue the high level digital dialogue. They looked forward to concrete progress on ICT standards, product safety and research and innovation.
On climate change and biodiversity, the EU encouraged China to strengthen its climate commitments in terms of peaking carbon dioxide emissions and setting the goal of climate neutrality domestically. The EU also stressed the importance of a moratorium in China of building coal-fired power plants and financing their construction abroad, at least as part of a global initiative. The EU also encouraged China to launch its national emission trading system soon. The two sides agreed to establish a High-Level Environment and Climate Dialogue to pursue ambitious joint commitments on these issues.
The EU noted that joint commitments by both sides on biodiversity could be a game-changer at global level and China has a key role to play as host of the Conference of the Parties next year. An ambitious global agreement would be a major achievement.
On the COVID-19 response, the EU emphasised the shared responsibility to participate in global efforts to stop the spread of the virus, boost research on treatments and vaccines, and strengthen the role of the World Health Organisation, including through the full implementation of the World Health Assembly resolution of May 2020. The EU also underlined that the recovery measures should support the transition to a greener and more sustainable economy. China’s full engagement in G20 efforts to support low-income countries and effectively implement the G20 – Paris Club Debt Service Suspension Initiative will also be essential.
With regard to Hong Kong, EU Leaders voiced their grave concerns about the erosion of the fundamental rights and freedoms following the imposition of the national security law on Hong Kong on 30 June, which is contrary to China’s international commitments. They also reiterated the EU’s concerns at the postponement of the Legislative Council election and the disqualification of candidates.
The EU reiterated its serious concerns about the treatment of ethnic and religious minorities, the situation of human rights defenders, as well as the limitations to freedom of expression and access to information. The two sides agreed that the Human Rights Dialogue will take place as a physical meeting in China later this year.
On regional and international issues, the EU referred to the escalating tensions in the South China Sea, urging for self-restraint and a peaceful resolution of disputes in accordance with international law. Leaders welcomed the start of the intra-Afghan negotiations in Doha. They also confirmed their commitment to upholding the Joint Comprehensive Plan of Action (the Iran nuclear deal).
The EU also expressed readiness to continue to discuss the Strategic Agenda for Cooperation 2025, which can only be concluded once significant progress has been made in the negotiations on the Comprehensive Investment Agreement.
An EU-China Leaders’ Meeting with the participation of the Heads of State and Government of the EU member states and President Xi is foreseen to be held in 2021.
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