Connect with us

EU Politics

EU-Australia Leaders’ Virtual Meeting

Published

on

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.

Continue Reading
Comments

EU Politics

Commission proposes draft mandate for negotiations on Gibraltar

Published

on

The European Commission has today adopted a Recommendation for a Council decision authorising the opening of negotiations for an EU-UK agreement on Gibraltar. The Commission also presented its proposal for negotiating guidelines.

It is now for the Council to adopt this draft mandate, after which the Commission can begin formal negotiations with the United Kingdom.

Vice-President Maroš Šefčovič, the EU’s co-chair of the Joint Committee and Partnership Council, said: “By putting forward this draft mandate, we are honouring the political commitment we made to Spain to start the negotiations of a separate agreement between the EU and the UK on Gibraltar. This is a detailed mandate, which aims to have a positive impact for those living and working on either side of the border between Spain and Gibraltar, while protecting the integrity of the Schengen Area and the Single Market.”

Gibraltar was not included in the scope of the EU-UK Trade and Cooperation Agreement agreed between the EU and UK at the end of 2020. The Commission committed to begin the negotiation of a separate agreement on Gibraltar, should Spain request so. That is why the Commission is now recommending that the Council authorises the launch of specific negotiations on Gibraltar.

Draft mandate

Today’s Recommendation builds upon the political understanding reached between Spain and the UK on 31 December last year. It is without prejudice to the issues of sovereignty and jurisdiction, and focuses on cooperation in the region.

The proposed negotiating directives put forward solutions to remove physical checks and controls on persons and goods at the land border between Spain and Gibraltar, while ensuring the integrity of the Schengen area and the Single Market. The proposals include rules establishing responsibility for asylum, returns, visas, residence permits, and operational police cooperation and information exchange.

Other measures are included in different areas, such as land and air transport, the rights of cross border workers, the environment, financial support, and establishing a level playing field. It envisages a robust governance mechanism, including a review of the implementation of the agreement after four years, the possibility for both parties to terminate the agreement at any time and the possibility of unilateral suspension of the application of the agreement under certain circumstances.

Spain, as the neighbouring Schengen Member State and as the Member State to be entrusted with the application and implementation of certain provisions of the future agreement, will be particularly affected by the agreement. The Commission will therefore maintain close contacts with the Spanish authorities throughout the negotiations and afterwards, taking their views duly into account.

With regard to external border control, in circumstances requiring increased technical and operational support, any Member State, including Spain, may request Frontex assistance in implementing its obligations. The Commission acknowledges that Spain has already expressed its full intention to ask Frontex for assistance.

Background

The UK-EU Trade and Cooperation Agreement excluded Gibraltar from its territorial scope (Article 774(3)). On 31 December 2020, the Commission received a note of the proposed framework for a UK-EU legal instrument setting out Gibraltar’s future relationship with the EU. The relevant services in the Commission have examined this in close consultation with Spain. Building upon the proposed framework and in line with Union rules and interests, the Commission has today adopted a Recommendation for a Council decision authorising the opening of negotiations for an EU-UK agreement on Gibraltar and presented its proposal for negotiating guidelines.

Continue Reading

EU Politics

Commission overhauls anti-money laundering and countering the financing of terrorism rules

Published

on

The European Commission has today presented an ambitious package of legislative proposals to strengthen the EU’s anti-money laundering and countering terrorism financing (AML/CFT) rules. The package also includes the proposal for the creation of a new EU authority to fight money laundering. This package is part of the Commission’s commitment to protect EU citizens and the EU’s financial system from money laundering and terrorist financing. The aim of this package is to improve the detection of suspicious transactions and activities, and to close loopholes used by criminals to launder illicit proceeds or finance terrorist activities through the financial system. As recalled in the EU’s Security Union Strategy for 2020-2025, enhancing the EU’s framework for anti-money laundering and countering terrorist financing will also help to protect Europeans from terrorism and organised crime.

Today’s measures greatly enhance the existing EU framework by taking into account new and emerging challenges linked to technological innovation. These include virtual currencies, more integrated financial flows in the Single Market and the global nature of terrorist organisations. These proposals will help to create a much more consistent framework to ease compliance for operators subject to AML/CFT rules, especially for those active cross-border.

Today’s package consists of four legislative proposals:

Members of the College said:

Valdis Dombrovskis, Executive Vice-President for an Economy that works for people, said: “Every fresh money laundering scandal is one scandal too many – and a wake-up call that our work to close the gaps in our financial system is not yet done. We have made huge strides in recent years and our EU AML rules are now among the toughest in the world. But they now need to be applied consistently and closely supervised to make sure they really bite. This is why we are today taking these bold steps to close the door on money laundering and stop criminals from lining their pockets with ill-gotten gains.”

Mairead McGuinness, Commissioner responsible for financial services, financial stability and Capital Markets Union said: “Money laundering poses aclear and present threat to citizens, democratic institutions, and the financial system. The scale of the problem cannot be underestimated and the loopholes that criminals can exploit need to be closed. Today’s package significantly ramps up our efforts to stop dirty money being washed through the financial system. We are increasing coordination and cooperation between authorities in member states, and creating a new EU AML authority. These measures will help us protect the integrity of the financial system and the single market.”

A new EU AML Authority (AMLA)

At the heart of today’s legislative package is the creation of a new EU Authority which will transform AML/CFT supervision in the EU and enhance cooperation among Financial Intelligence Units (FIUs). The new EU-level Anti-Money Laundering Authority (AMLA) will be the central authority coordinating national authorities to ensure the private sector correctly and consistently applies EU rules. AMLA will also support FIUs to improve their analytical capacity around illicit flows and make financial intelligence a key source for law enforcement agencies.

In particular, AMLA will:

  • establish a single integrated system of AML/CFT supervision across the EU, based on common supervisory methods and convergence of high supervisory standards;
  • directly supervise some of the riskiest financial institutions that operate in a large number of Member States or require immediate action to address imminent risks;
  • monitor and coordinate national supervisors responsible for other financial entities, as well as coordinate supervisors of non-financial entities;
  • support cooperation among national Financial Intelligence Units and facilitate coordination and joint analyses between them, to better detect illicit financial flows of a cross-border nature.

A Single EU Rulebook for AML/CFT

The Single EU Rulebook for AML/CFT will harmonise AML/CFT rules across the EU, including, for example, more detailed rules on Customer Due Diligence, Beneficial Ownership and the powers and task of supervisors and Financial Intelligence Units (FIUs). Existing national registers of bank accounts will be connected, providing faster access for FIUs to information on bank accounts and safe deposit boxes. The Commission will also provide law enforcement authorities with access to this system, speeding up financial investigations and the recovery of criminal assets in cross-border cases. Access to financial information will be subject to robust safeguards in Directive (EU) 2019/1153 on exchange of financial information.

Full application of the EU AML/CFT rules to the crypto sector

At present, only certain categories of crypto-asset service providers are included in the scope of EU AML/CFT rules. The proposed reform will extend these rules to the entire crypto sector, obliging all service providers to conduct due diligence on their customers. Today’s amendments will ensure full traceability of crypto-asset transfers, such as Bitcoin, and will allow for prevention and detection of their possible use for money laundering or terrorism financing. In addition, anonymous crypto asset wallets will be prohibited, fully applying EU AML/CFT rules to the crypto sector.

EU-wide limit of €10,000 on large cash payments

Large cash payments are an easy way for criminals to launder money, since it is very difficult to detect transactions. That is why the Commission has today proposed an EU-wide limit of €10,000 on large cash payments. This EU-wide limit is high enough not to put into question the euro as legal tender and recognises the vital role of cash. Limits already exist in about two-thirds of Member States, but amounts vary. National limits under €10,000 can remain in place. Limiting large cash payments makes it harder for criminals to launder dirty money. In addition, providing anonymous crypto-asset wallets will be prohibited, just as anonymous bank accounts are already prohibited by EU AML/CFT rules.

Third countries

Money laundering is a global phenomenon that requires strong international cooperation. The Commission already works closely with its international partners to combat the circulation of dirty money around the globe. The Financial Action Task Force (FATF), the global money laundering and terrorist financing watchdog, issues recommendations to countries. A country that is listed by FATF will also be listed by the EU. There will be two EU lists, a “black-list” and a “grey-list, reflecting the FATF listing. Following the listing, the EU will apply measures proportionate to the risks posed by the country. The EU will also be able to list countries which are not listed by FATF, but which pose a threat to the EU’s financial system based on an autonomous assessment.

The diversity of the tools that the Commission and AMLA can use will allow the EU to keep pace with a fast-moving and complex international environment with rapidly evolving risks.

Next steps

The legislative package will now be discussed by the European Parliament and Council. The Commission looks forward to a speedy legislative process. The future AML Authority should be operational in 2024 and will start its work of direct supervision slightly later, once the Directive has been transposed and the new regulatory framework starts to apply.

Background

The complex issue of tackling dirty money flows is not new. The fight against money laundering and terrorist financing is vital for financial stability and security in Europe. Legislative gaps in one Member State have an impact on the EU as a whole. That is why EU rules must be implemented and supervised efficiently and consistently to combat crime and protect our financial system. Ensuring the efficiency and consistency of the EU AML framework is of the utmost importance. Today’s legislative package implements the commitments in our Action Plan for a comprehensive Union policy on preventing money laundering and terrorism financing which was adopted by the Commission on 7 May 2020.

The EU framework against money laundering also includes the regulation on the mutual recognition of freezing and confiscation orders, the directive on combating money laundering by criminal law, the directive laying down rules on the use of financial and other information to combat serious crimesthe European Public Prosecutor’s Office, and the European system of financial supervision.

Continue Reading

EU Politics

New EU guidance helps companies to combat forced labour in supply chains

Published

on

The Commission and the European External Action Service (EEAS) have published today a Guidance on due diligence to help EU companies to address the risk of forced labour in their operations and supply chains, in line with international standards. The Guidance will enhance companies’ capacity to eradicate forced labour from their value chains by providing concrete, practical advice on how to identify, prevent, mitigate and address its risk.

Executive Vice-President and Commissioner for Trade Valdis Dombrovskis said: “There is no room in the world for forced labour. The Commission is committed to wiping this blight out as part of our broader work to defend human rights. This is why we put strengthening the resilience and sustainability of EU supply chains at the core of our recent trade strategy. Businesses are key to making this happen, because they can make all the difference by acting responsibly. With today’s Guidance, we are supporting EU companies in these efforts. We will ramp up our due diligence work with our upcoming legislation on Sustainable Corporate Governance.”

High Representative/Vice-President Josep Borrell said: “Forced labour is not only a serious violation of human rights but also a leading cause of poverty and an obstacle to economic development. The European Union is a global leader on responsible business conduct and business and human rights. The Guidance we publish today translates our commitment into concrete action. It will help EU companies to ensure their activities do not contribute to forced labour practices in any sector, region or country.”

The Guidance explains the practical aspects of due diligence and provides an overview of EU and international instruments on responsible business conduct that are relevant for combatting forced labour. The EU has already put in place mandatory standards in some sectors and actively promotes the effective implementation of international standards on responsible business conduct.

Promoting responsible and sustainable value chains is one of the pillars of the recent EU trade strategy. The Guidance delivers on the strategy by helping EU businesses already take the appropriate measures, bridging the time until legislation on Sustainable Corporate Governance is in place. This upcoming legislation should introduce a mandatory due diligence duty requiring EU companies to identify, prevent, mitigate and account for sustainability impacts in their operations and supply chains. Subject to the upcoming impact assessment, this will include effective action and enforcement mechanisms to ensure that forced labour does not find a place in the value chains of EU companies.

EU trade policy already contributes to the abolishment of forced labour through its various instruments. EU trade agreements are unique in including binding commitments to ratify and effectively implement all fundamental ILO Conventions, including those on forced labour. Those conventions include an obligation to suppress the use of forced or compulsory labour in all its forms. This commitment extends to the countries benefitting from the special incentive arrangement for sustainable development and good governance (GSP+) under the EU’s General Scheme of Preferences (GSP). All 71 beneficiary countries of the General Scheme of Preferences are obliged to not commit serious and systematic violations of the principles of the fundamental ILO Conventions.

The Guidance also delivers on a number of the priorities of the EU Action Plan on Human Rights and Democracy 2020-2024 in the area of business and human rights. Those priorities include the eradication of forced labour and the promotion of internationally recognised due diligence standards.

Continue Reading

Publications

Latest

Trending