Banking & Finance

The Venezuelan Central Bank (VCB) established the interest rates applicable to the obligations derived from employment relationships (59.20% and 47.60% - May and July 2024) and to transactions with credit cards (60.00% annual maximum lending rate and 17.00% annual minimum lending rate - June and August 2024). (Official Gazette of 08/16/2024. Official Notice. Entry into force: Upon publication in the Official Gazette).

Tax

A Presidential Decree exempted the net taxable income of territorial source obtained by Cooperative Associations organized under the Decree with the Force of Special Law of Cooperative Associations from payment of income tax. The benefit of exemption will have a duration of one (1) year as from the date of publication of said Decree in Official Gazette and it may be extended for one (1) year. The exemption will be applied to the fiscal years in progress when the Decree becomes effective. (Official Gazette of 08/12/2024. Decree No. 4.976. Entry into force: Upon publication in the Official Gazette).

The National Integrated Service of Customs and Tax Administration (Servicio Nacional Integrado de Administración Aduanera y Tributaria - SENIAT) established the rate applicable to the calculation of late payment interest accrued during March, April, May, and June 2024. It was established that the weighted average interest rate for loans of the six (6) principal commercial and universal banks of the country with the highest volume of deposits, excluding portfolios with prime rates, set by the Venezuelan Central Bank (VCB) for March, April, May, and June are: 58.98%, 58.98%, 59.20%, and 59.25% respectively, which rates are to be increased 1.2 times for the calculation of late payment interest accrued during said months (Official Gazette of 08/21/2024. Administrative Rulings Nos. SNAT/2024/000068, SNAT/2021/000076, SNAT/2021/000077, SNAT/2022/000081).

The SENIAT legalized the issue and circulation of liquor warranty seals. (Official Gazette of 08/21/2024. Administrative Ruling No. SNAT/2024/000082. Entry into force: Upon publication in the Official Gazette).

A Presidential Decree extended until 12/31/2024 the effectiveness of Decree No. 4.907, published in Official Gazette No. 6.784 Extraordinary of 12/29/2023 and extended by Decree No. 4.967, published in Official Gazette No. 6.818 Extraordinary of 06/28/2024, which Decree No. 4.907 establishes the exemptions from import duties and value added tax for the importation of goods indicated in Chapter II of said Decree.

Therefore, the exemptions or benefits indicated in Decree No. 4.907 continue to be in effect, in the terms and conditions that said Decree establishes. (Official Gazette of 08/30/2024. Decree No. 4.985. Entry into force. As from 09/01/2024).

Miscellaneous

The Ministries of the Popular Power for Economy, Finance, and Foreign Trade and for Transportation established, through a Joint Resolution, the regulation of the “Exporta Fácil Postal” service, which consists in an exportation service via mail, by means of the operating platform of the Instituto Postal Telegráfico de Venezuela (IPOSTEL) (Postal Telegraph Institute) or another authorized postal operator. The purpose of said Resolution is to establish the procedures for exportation of the products of startup entrepreneurs, micro, small and mediumsized entrepreneurs and artisans of the country, in order to achieve a fast process for the exit of the goods via mail. (Official Gazette of 08/15/2024. Resolution No. 005- 2024 and Resolution No. 034. Entry into force: Upon publication in the Official
Gazette).

A Presidential Decree: 1. Ordered the elimination of the Ministry of the Popular Power for Youth and Sports and created the Ministry of the Popular Power for Youth and the Ministry of the Popular Power for Sports; 2. Ordered the elimination of the Ministry of the Popular Power for Urban Agriculture, the competence of which will be transferred to the Ministry of the Popular Power for Communes and Social Movements, which will now be called Ministry of the Popular Power for Communes, Social Movements, and Urban Agriculture (Official Gazette No. 6.830 Extraordinary of 08/27/2024. Decree No. 4.980. Entry into force: Upon publication in the Official Gazette).

A Presidential Decree assigned the National Institute for Socialist Training and Education (Instituto Nacional de Capacitación y Educación Socialista - INCES) to the Ministry of the Popular Power for the Social Process of Work. (Official Gazette of 08/28/2024. Decree No. 4.983. Entry into force: As from the date of its publication in the Official Gazette).

Lo scorso 12 agosto è stato pubblicato nella Gazzetta Ufficiale dell’Unione europea il Regolamento (UE) 2024/2019 del Parlamento europeo e del Consiglio dell’11 aprile 2024 (“Regolamento”) recante una serie di modifiche sostanziali e/o procedurali al protocollo n. 3 sullo statuto della Corte di giustizia dell’Unione europea (“Statuto” e “Corte di giustizia”).

Si riporta di seguito una sintesi delle modifiche introdotte dal Regolamento.

1. Attribuzione al Tribunale della competenza pregiudiziale in materie specifiche

Il Regolamento introduce l’art. 50-ter al fine di attribuire al Tribunale dell’Unione europea (“Tribunale”) la competenza a conoscere delle domande di pronuncia pregiudiziale di cui all’art. 267 del TFUE rientranti in una o più delle seguenti materie:

1. il sistema comune di imposta sul valore aggiunto;
2. i diritti di accisa;
3. il codice doganale;
4. la classificazione tariffaria delle merci nella nomenclatura combinata;
5. la compensazione pecuniaria e l’assistenza dei passeggeri in caso di negato imbarco o di ritardo o cancellazione di servizi di trasporto; e
6. il sistema di scambio di quote di emissione di gas a effetto serra.

Con riferimento ai punti da (a) a (d), il considerando 9 del Regolamento chiarisce che “Tali materie riguardano, al momento dell’adozione del presente regolamento, questioni quali la determinazione della base imponibile dell’imposta sul valore aggiunto o le condizioni per l’esenzione dal pagamento di tale imposta; l’interpretazione del regime generale delle accise e del quadro relativo alle accise sull’alcool, sulle bevande alcoliche, sul tabacco, sui prodotti energetici e sull’elettricità; gli elementi in base ai quali i dazi all’importazione o all’esportazione sono applicati nell’ambito degli scambi di merci, quali la tariffa doganale comune, l’origine e il valore in dogana delle merci; le procedure di importazione ed esportazione, comprese l’insorgenza, la determinazione e l’estinzione di un’obbligazione doganale; regimi doganali specifici; il regime di franchigie doganali, nonché l’interpretazione di voci tariffarie specifiche e i criteri per la classificazione di talune merci nella nomenclatura combinata di cui all’allegato I del regolamento (CEE) n. 2658/87 del Consiglio”.

Con riferimento al punto (e), il considerando 10 del Regolamento chiarisce che tali materie “riguardano questioni che, al momento dell’adozione del presente regolamento, sono disciplinate dai regolamenti (CE) n. 261/2004 [trasporto aereo], (UE) n. 1177/2010 [trasporto marittimo], (UE) n. 181/2011 [trasporto con autobus] e (UE) 2021/782 [trasporto ferroviario] del Parlamento europeo e del Consiglio”.

Con riferimento al punto (f), il considerando 10 del Regolamento chiarisce che tale sistema “al momento dell’adozione del presente regolamento, è disciplinato dalla direttiva n. 2003/87/CE del Parlamento europeo e del Consiglio e dagli atti adottati sulla base di tale direttiva”.

Fermo quanto precede, ai sensi del comma 2 del nuovo art. 50-ter, la Corte di giustizia conserverà la competenza a conoscere delle domande di pronuncia pregiudiziale che sollevino “questioni indipendenti di interpretazione del diritto primario, del diritto internazionale pubblico, dei principi generali del diritto o della Carta dei diritti fondamentali dell’Unione europea”.

In ogni caso, ai sensi del comma 3 della nuova disposizione, le domande di pronuncia pregiudiziale di cui all’art. 267 andranno presentate dinanzi alla Corte di giustizia. Sarà quest’ultima – “quanto prima possibile” e secondo le modalità previste dal proprio regolamento di procedura – a valutare se la domanda rientri esclusivamente in una o più materie attribuite alla competenza del Tribunale e, di conseguenza, a trasmetterla al Tribunale.

2. Partecipazione al procedimento da parte del Parlamento europeo, del Consiglio e della Banca Centrale Europea

Il Regolamento modifica l’art. 23 dello Statuto al fine di prevedere che, nel caso in cui sia sollevata una questione pregiudiziale, la decisione del giudice nazionale che sospende il procedimento debba essere notificata dalla cancelleria della Corte – oltre che alle parti in causa, agli Stati membri, alla Commissione, nonché all’istituzione/organo/organismo dell’Unione che abbia adottato l’atto di cui si contesta la validità o l’interpretazione, come già previsto dall’art. 23 – anche al Parlamento europeo, al Consiglio e alla Banca centrale europea.

Ai sensi del nuovo comma 2, qualora ritengano di avere “un interesse particolare nelle questioni sollevate dalla domanda di pronuncia pregiudiziale”, entro 2 mesi dalla notifica il Parlamento europeo, il Consiglio e la Banca centrale europea potranno presentare memorie od osservazioni scritte.

Ai sensi del nuovo comma 3, le memorie o le osservazioni scritte presentate da un interessato saranno pubblicate sul sito Internet della Corte di giustizia “entro un termine ragionevole” successivamente alla chiusura del caso, a meno che tale interessato non si opponga alla pubblicazione delle proprie memorie od osservazioni scritte.

3. Elezione di avvocati generali per il trattamento delle domande di pronuncia pregiudiziale devolute alla competenza del Tribunale

Il Regolamento introduce l’art. 49-bis dello Statuto al fine di prevedere che, nel trattamento delle domande di pronuncia pregiudiziale, il Tribunale sarà assistito da uno o più avvocati generali, eletti per un periodo di 3 anni – rinnovabile una volta – tra i giudici del Tribunale.

4. Istituzione della sezione intermedia del Tribunale

Il Regolamento modifica l’art. 50 dello Statuto al fine di prevedere, con riferimento alla composizione del Tribunale, l’istituzione di una sezione intermedia tra le sezioni composte da cinque giudici e la grande sezione.

Alla luce della formulazione del nuovo art. 50, il Tribunale si riunirà in: (a) sezioni composte da 3 o 5 giudici; (b) sezione intermedia; e (c) grande sezione. Inoltre, in coerenza con l’attuale formulazione, in alcuni casi il Tribunale potrà statuire nella persona di un giudice unico.

La nuova disposizione prevede che, nei procedimenti aventi ad oggetto una questione pregiudiziale, il Tribunale si riunirà in sezione intermedia su richiesta di uno Stato membro o di un’istituzione dell’Unione che sia parte del procedimento.

5. Rinvio della causa pregiudiziale alla Corte di giustizia o al Tribunale

Il Regolamento modifica l’art. 50 dello Statuto al fine di prevedere che, in linea con quanto previsto in relazione alla trattazione dei ricorsi:

• quando il Tribunale constata di essere incompetente a conoscere di una domanda di pronuncia pregiudiziale, questo dovrà rinviare la causa alla Corte di giustizia;
• quando la Corte di giustizia constata di essere incompetente a conoscere di una domanda di pronuncia pregiudiziale, questa dovrà rinviare la domanda al Tribunale, che in tale ipotesi non potrà declinare la propria competenza.

In relazione al suddetto meccanismo di rinvio, il considerando 18 del Regolamento chiarisce inoltre che “il Tribunale può, a norma dell’articolo 256, paragrafo 3, secondo comma, TFUE, rinviare alla Corte di giustizia una causa che rientra nella sua competenza, ma che richiede una decisione di principio che potrebbe compromettere l’unità o la coerenza del diritto dell’Unione”.

6. Estensione della procedura di ammissione preventiva delle impugnazioni

Il Regolamento sostituisce l’art. 58-bis al fine di estendere la procedura di ammissione preventiva delle impugnazioni da parte della Corte di giustizia:

• alle impugnazioni relative a una pronuncia del Tribunale avente ad oggetto la decisione di una commissione di ricorso indipendente di un organo o di un organismo dell’Unione che, alla data del 1° maggio 2019, disponeva di tale commissione di ricorso ma non risultava espressamente previsto dall’art. 58-bis nella sua attuale formulazione.

Trattasi dei seguenti organi/organismi dell’Unione: (a) Agenzia dell’Unione europea per la cooperazione fra i regolatori nazionali dell’energia; (b) Comitato di risoluzione unico; (c) Autorità bancaria europea; (d) Autorità europea degli strumenti finanziari e dei mercati; (e) Autorità europea delle assicurazioni e delle pensioni aziendali e professionali; e (f) Agenzia dell’Unione europea per le ferrovie; e

• al contenzioso relativo all’esecuzione di contratti contenenti una clausola compromissoria.

7. Introduzione della procedura di consultazione in vista della presentazione di una domanda o di una proposta di modifica dello Statuto

Il Regolamento introduce l’art. 62-quinquies al fine di prevedere che, prima di presentare una domanda o una proposta di modifica dello Statuto, la Corte di giustizia o, se del caso, la Commissione debba procedere allo svolgimento di “ampie consultazioni”.

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Il Regolamento entrerà in vigore il 1° settembre 2024 e prevede un regime transitorio in forza del quale:

• le domande di pronuncia pregiudiziale pendenti dinanzi alla Corte di giustizia al 1° ottobre 2024 saranno in ogni caso trattate dalla Corte di giustizia medesima;
• le impugnazioni avverso:
  • le decisioni del Tribunale vertenti su una decisione di una commissione di ricorso di uno degli organi / organismi dell’Unione di cui alle lettere da (a) a (e) del precedente punto 6, nonché
  • le decisioni relative all’esecuzione di un contratto contenente una clausola compromissoria

di cui la Corte di giustizia risulti investita al 1° settembre 2024 non saranno soggette alla suddetta procedura di ammissione preventiva delle impugnazioni.

Entro il 2 settembre 2025, la Corte di giustizia pubblicherà e aggiornerà un elenco di esempi che illustrano l’applicazione del suddetto art. 50-ter dello Statuto.

Entro il 2 settembre 2028, la Corte di giustizia trasmetterà al Parlamento europeo, al Consiglio e alla Commissione una relazione sull’attuazione del Regolamento, eventualmente corredata da una proposta di atto legislativo di modifica dello Statuto, in particolare al fine di rivedere l’elenco delle materie specifiche devolute alla competenza pregiudiziale del Tribunale.

This newsletter provides a selection of opinions and analysis from our EU legal experts on interesting policy developments, recent case law and new regulatory directions of major industry practices. It is released biweekly and covers areas such as: Competition Law, Sanctions, Trade, Energy, Finance, EU funds, Data IP and Privacy, Life Sciences, Transport and Court of Justice of the European Union news.

The aim is to provide an up–to–date tool for quick and easy consultation on the most current and important topics at EU level.

• Competition Law and State Aid
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EUROPEAN CENTRAL BANK (ECB)

July 2024 euro area bank lending survey (16.07.2024) – According to the July 2024 euro area bank lending survey (BLS): (i) credit standards were broadly unchanged at tight levels in the second quarter of 2024; (ii) loan demand continued to decline for firms, while recording the first increase for households since 2022; (iii) credit standards for firms displayed some heterogeneity across economic sectors, tightening strongly in commercial real estate.

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Survey on the Access to Finance of Enterprises: moderate tightening in reported financing conditions (15.07.2024) – The survey on the access to finance of enterprises, issued by the European Central Bank, shows that access to bank loans improved in the second quarter of 2024. There was a slight decrease in the need for loans and an improvement in availability, leading to a small decrease in the bank financing gap. Firms reported an increase in turnover and were optimistic about the future. Cost pressures remained widespread, but there were signs of moderation in price and wage increases. Inflation expectations also declined.

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The European Central Bank publishes the results of the June 2024 survey on credit terms and conditions in euro-denominated securities financing and over-the-counter derivatives markets (10.07.2024) – The June 2024 survey on credit terms and conditions in euro-denominated securities financing and over-the-counter derivatives markets, issued by the ECB, shows that overall credit terms and conditions eased between March and May 2024. The results were anticipated by the March 2024 survey, which showed that markets expected a further easing of terms and conditions. However, expectations were broken by the stillness of non-price terms, which were expected to tighten, but remained unchanged instead. Lastly, when asked about their expectations for the future, survey respondents expected overall price and non-price terms to remain unchanged across all counterparty types for the three months ahead (specifically, the period from June to August 2024).

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The European Central Bank publishes the May 2024 Consumer Expectation Survey (28.06.2024) – According to the ECB’s Consumer Expectation Survey for the month of May 2024, median consumer inflation perceptions over the past 12 months and inflation expectations for the next 12 months have all modestly decreased, reaching their lowest point since September 2021. Following the trend of the previous months, median expectations for inflation for three years ahead have also slightly decreased. Another positive result is the decrease of uncertainty about inflation expectations over the next 12 months, which decreased to its lowest level since the invasion of Ukraine by Russia in February 2022. Consumer expectations for nominal income growth decreased slightly, while expectations for nominal spending growth over the next 12 months declined by 0.3%. Economic growth expectations for the next 12 months remained unchanged, while expectations for the unemployment rate for the 12 months ahead slightly decreased. The expectation for the price of housing remained unchanged since April 2024.

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EUROPEAN BANKING AUTHORITY (EBA)

The European Supervisory Authorities publish the second batch of policy products under DORA (17.07.2024) – The three European Supervisory Authorities (EBA, EIOPA and ESMA – the ESAs) published the second batch of policy products under the Digital Operational Resilience Act (DORA). This batch consists of four final draft regulatory technical standards (RTS), one set of Implementing Technical Standards (ITS) and 2 guidelines , all of which aim at enhancing the digital operational resilience of the EU’s financial sector. The package focuses on the reporting framework for ICT-related incidents (reporting clarity, templates) and threat-led penetration testing while also introducing some requirements on the design of the oversight framework, which enhance the digital operational resilience of the EU financial sector, thus also ensuring continuous and uninterrupted provision of financial services to customers and safety of their data.

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The European Banking Authority clarifies the operational application of CRR 3 in the area of credit risk modelling (17.07.2024) – The European Banking Authority (EBA) welcomes the entry into force of the new European Banking Package, which implements the final Basel III framework into EU regulation. To ensure a smooth operational implementation of the Banking Package, the EBA encourages institutions and competent authorities to engage in an active dialogue. In particular, institutions should: (i) communicate to their competent authorities the targeted model landscape, in particular following the migration of exposures to the foundation approach (F-IRB) and standard approach. A key aspect is to ensure that rating systems perform adequately on their scope of application; (ii) assess and categorise changes coming from the implementation of the Capital Requirements Regulation (CRR3) that impact the performance of a rating system according to the EU Commission’s Delegated Regulation on materiality of changes to the IRB approach. On the other hand, changes coming from the implementation of CRR3 that do not impact the performance of a rating system should not be considered under the scope of the Commission’s Delegated Regulation on model change to the IRB approach;(iii) share with their competent authority an implementation plan on the foreseen modelling updates that are linked to future EBA supervisory products. In this context, modelling updates in relation to credit conversion factor (CCF) parameters (e.g. 12 months fixed horizon reference date) may not need to be prioritised until the date of application of the EBA Guidelines on IRB-CCF.

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The European Supervisory Authorities establish framework to strengthen coordination in case of systemic cyber incidents (17.07.2024) – The three European Supervisory Authorities (EBA, EIOPA and ESMA) will establish the EU systemic cyber incident coordination framework (EU-SCICF), in the context of the Digital Operational Resilience Act (DORA), that will facilitate an effective financial sector response to a cyber incident that poses a risk to financial stability, by strengthening the coordination among financial authorities and other relevant bodies in the European Union, as well as with key actors at international level. Over the coming months, the ESAs will kickstart the implementation of the framework by setting up: (i) the EU-SCICF Secretariat, supporting the functioning of the framework; (ii) the EU-SCICF Forum, working on testing and maturing the functioning; (iii) the EU-SCICF Crisis Coordination, facilitating during a crisis the coordination of actions by the participating authorities. The ESAs will identify legal and other operational hurdles encountered during the initial set up and report these to the European Commission. The further development of the framework will be subject to the availability of resources and other measures taken by the European Commission.

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The European Banking Authority publishes the report on the application of derogations to the deferral and pay out in instruments under CRD (16.07.2024) – The European Banking Authority (EBA) published a report on the application of derogations to the requirements to pay out a part of the variable remuneration for identified staff under deferral arrangements and in instruments that are available to small and non-complex institutions and for identified staff receiving only a relatively small amount of variable remuneration. This report forms part of the EBA’s contribution to the review to be performed by the European Commission. The report aims to assess the implementation and application of derogations within the EU and their impact on the costs, risk alignment of variable remuneration to the risk profile of the institution as well as on the ability to recruit and retain staff. Notably, prior to the explicit introduction of CRDV derogations, the national implementations of the CRD permitted small and non-complex institutions and staff receiving relatively low variable remuneration, to waive specific requirements based on proportionality grounds. Consequently, assessing the impact of CRDV changes remains challenging as it is limited to marginal changes to the regime that applies with more harmonised thresholds.

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The European Banking Authority publishes the report on the application of gender-neutral remuneration policies (16.07.2024) – The European Banking Authority (EBA) published the report on the application of gender-neutral remuneration policies by institutions and investment firms. The report is based on the information collected from institutions, investment firms and competent authorities. The report shows that the industry faces no major hurdles in adopting and implementing gender-neutral remuneration policies, but that some entities still have not yet adopted remuneration policies that explicitly contain measures that ensure that remuneration is awarded gender neutrally and that this aspect is monitored over time. While the review focusses on the principle of equal pay, it also looked at the gender pay gap and the monitoring of indicators in the area of equal opportunities and equal pay. Despite some progress made by the industry, it has been observed that a gender pay-gap persists and that monitoring and transparency on those topics could be further improved. The persistence of a gender pay gap indicates that further work is needed to ensure ‘equal opportunities’ and that there are biases that require further attention. The EBA emphasises the importance of the consistent implementation of gender-neutral remuneration policies across all financial institutions.

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The European Banking Authority reflects on EU stacking orders and provides insight into EU institutions’ management buffers (15.07.2024) – The European Banking Authority (EBA) published a Report on the stacking orders of capital, leverage and MREL/TLAC requirements and related capital buffers, as well as on reflections about management buffers practices in the European Union (EU). The Report describes the role of regulatory stacks, both going and gone concern, with a focus on micro-prudential elements. It also summarises the differences between the EU, the UK and US frameworks. The Report highlights institutions’ practices on management buffers. Further work of the EBA will include efforts to continue to clarify, where necessary, the interaction between the different stacks.

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The European Supervisory Authorities publish a report on the use of behavioural insights in supervisory and policy work (11.07.2024) – The three European Supervisory Authorities (EBA, EIOPA and ESMA - ESAs) published a joint report following their workshop on the use of behavioural insights by supervisory authorities in their day-to-day oversight and policy work. The report provides a high-level overview of the main topics discussed during the workshop held on 14-15.02.2024 for national supervisors and other competent authorities, where participants explored the added value of behavioural insights in their work by exchanging their experiences and discussing the challenges they face. The report includes a catalogue of various studies carried out at both the European and national levels on the use of behavioural insights in supervisory and policy work. Behavioural insights are instrumental in helping financial markets deliver better products and services to consumers while also mitigating potential detriments they might face. Leveraging behavioural science and evidence-based practices when designing and implementing policies can further strengthen supervision and improve outcomes for consumers. The workshop and the subsequent report have been developed in accordance with the tasks defined in the Joint Committee Work Programme for 2024.

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The European Banking Authority updates list of other systemically important institutions (11.07.2024) – The European Banking Authority (EBA) updated the list of other systemically important institutions (O-SIIs) in the EU, which, together with global systemically important institutions (G-SIIs), are identified as systemically important by the relevant authorities according to harmonised criteria laid down in the EBA Guidelines. This list is based on year-end-2023 data and includes the overall score calculated according to the EBA Guidelines and the capital buffer rate that the relevant authorities have set for the identified O-SIIs. The list is available also in a user-friendly visualisation tool.

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The European Banking Authority updates the supervisory reporting framework (09.07.2024) – The European Banking Authority (EBA) published its final draft implementing technical standards (ITS) on supervisory reporting requirements implementing the changes necessary to keep the supervisory reporting framework relevant and meaningful and aligned with the amending CRR 3, which implements the latest Basel III reforms. These ITS will allow supervisors to have sufficient comparable information to monitor compliance by institutions with CRR 3 requirements, thus further promoting enhanced and consistent supervision.

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The European Banking Authority releases technical package for its 3.5 reporting framework (09.07.2024) – The European Banking Authority (EBA) published a technical package for version 3.5 of its reporting framework. This package provides the standard specifications that include the validation rules, the Data Point Model (DPM) and the XBRL taxonomies to support the following reporting obligations: (i) amendments to the technical standards on specific reporting requirements for the Fundamental Review of the Trading Book (FRTB); (ii) diversity benchmarking Guidelines; (iii) the cross-sectoral technical standards on the standard templates for the purposes of the register of information in relation to all contractual arrangements on the use of ICT services provided by ICT third-party service providers under the Digital Operational Resilience Act (DORA); (iv) the amendments to the reporting and disclosure technical standards on minimum requirements for own funds and eligible liabilities and total loss-absorbing capacity (MREL/TLAC), following the final changes introduced by the co-legislators in the level 1 text.

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The European Banking Authority publishes the European Supervisory Examination Programme for 2025 (08.07.2024) – The EBA’s European Supervisory Examination Programme for 2025 outlines key areas of focus for supervisory attention across the EU. It aims to drive supervisory convergence by providing supervisory authorities with a unified set of priorities for 2025, including managing increasing economic and financial uncertainties, addressing digital challenges such as digital risk management and the digital transformation, and transitioning towards Basel III and the EU banking package (i.e. the Capital Requirements Regulation III and the Capital Requirements Directive VI, which entered into force on 09.07.2024). The EBA will keep monitoring how these three topics are incorporated into the priorities of the competent authorities and their daily supervisory activities throughout 2025 and use these finding to assess the degree of convergence of supervisory practices.

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The European Banking Authority publishes its annual Report on convergence of supervisory practices for 2023 (08.07.2024) – The annual Report on convergence of supervisory practices for 2023 confirms that most supervisory authorities adequately included the key topics identified for attention in the 2023 European Supervisory Examination Programme. These topics include macroeconomic and geopolitical risks, operational and financial resilience, transition risks, and money laundering/terrorism financing risks. However, there is still disparity in the transitions in the areas of Environmental, Social, Governance and data aggregation capabilities. The EBA’s analysis shows that further consistency in the identification and treatment of risks covered by Pillar 2 requirements across the EU can be obtained. Further convergence is expected after the adoption of the Capital Requirements Regulation III and Capital Requirements Directive VI, and the consequent review of the Supervisory Review and Evaluation Process guidelines. 

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The European Banking Authority publishes Guidelines on the “travel rule” (04.07.2024) – The new Guidelines on the “travel rule”, issued by the EBA, detail which information should be attached to the transfer of funds and certain crypto-assets, and what should intermediaries and service providers do if such information is incomplete or missing. The objective of these Guidelines is to create a uniform and effective approach to trace these transfers, if necessary, and prevent, detect or investigate money laundering and terrorist financing. The Guidelines’ release follows the entering into force of Regulation (EU) 2023/1113 in June 2023, which updates the EU’s legal framework enhancing the transparency of the transfer to crypto-assets service providers.

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The European Banking Authority publishes the spring edition of its Risk Assessment Report (02.07.2024) – The spring edition of the Risk Assessment Report of the EBA combines the content of two different reports, that have always been published separated. It now covers the EBA’s common risk assessment as well as the analysis of banks’ asset encumbrance and funding plan data. Results show that the banks involved in the study are currently facing elevated geopolitical risks, compounded by economic and interest rate uncertainty. They are planning to gradually increase their loan exposures, as supported by the increase of non-performing loan ratios across all segments. In terms of funding, banks are planning to significantly increase long-term market-based funding. They have also increased the availability of collateral, which can be used for future funding purposes. Overall, the profitability of banks in the EU and the European Economic Area has increased, although it is expected to slow down in the future.

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EUROPEAN SECURITIES AND MARKET AUTHORITY (ESMA)

The European Securities and Market Authority publishes 2023 data on cross-border investment activity of firms (15.07.2024) – The European Securities and Markets Authority (ESMA), together with the National Competent Authorities (NCAs), completed an analysis of the cross-border provision of investment services during 2023. The data sets were collected from investment firms across 30 jurisdictions in the EU/EEA. The main findings include: (i) a total of around 386 firms provided services to retail clients on a cross-border basis in 2023; (ii) approximately 8 million clients in the EU/EEA received investment services from firms located in other EU/EEA Member States in 2023; (iii) compared to 2022, the cross-border market for investment services grew by 1.6% in terms of firm numbers, and by 5% in terms of retail clients, while the number of complaints increased by 31%; (iv) Cyprus is the primary location for firms providing cross-border investment services in the EU/EEA, accounting for 20% of the total firms passporting investment services. Luxembourg and Germany follow with 15% and 14% of all firms, respectively; and Germany, France, Spain, and Italy are the most significant destinations (in terms of number of retail clients) for investment firms providing cross-border services in other Member States.

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The European Securities and Market Authority publishes the 2024 ESEF Reporting Manual (11.07.2024) – The European Securities and Markets Authority (ESMA), published the update of its Reporting Manual on the European Single Electronic Format (ESEF) supporting a harmonised approach for the preparation of annual financial reports. ESMA has also updated the Annex II of the Regulatory Technical Standards (RTS) on ESEF. The updated Manual provides technical improvements and guidance to facilitate the analysis and comparison of the data, such as: (i) recommendations when tagging empty fields or dash symbols; (ii) clarifying that extension elements should be anchored to core elements sharing the same data type; (iii) advising on practices to further improve the readability of the information extracted from a block tag; and (iv) encouraging the use of unique identifiers for each tagged fact. The Manual intends to promote a harmonised and consistent approach for the preparation of annual financial reports in the format specified in the RTS on ESEF, providing guidance on common issues that may be encountered when creating ESEF documents, and explaining how to address them.

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The European Securities and Market Authority’s stress test of Central Counterparties finds clearing system resilient (09.07.2024) – The European Securities and Markets Authority (ESMA) has published the results of its fifth stress test exercise for Central Counterparties (CCPs). The results confirm the overall resilience of European Union (EU) CCPs, as well as third-country Tier 2 CCPs, to core credit and liquidity financial risks under the tested scenarios. In line with the EMIR mandate, where the assessments exposed shortcomings in the resilience of one or more CCPs, ESMA will issue the necessary recommendations.

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The European Securities and Market Authority publishes a Final Report on the Guidelines on Enforcement of Sustainability Information (05.07.2024) – After a long consultation with the stakeholders, ESMA issued its Guidelines on Enforcement of Sustainability Information contained in its Final Report. The Guidelines pursue the objective of supporting the consistent application and supervision of sustainability reporting requirements, in order to build convergence on supervisory practices on sustainability reporting. The Final Report is also accompanied by a Public Statement, which is meant to ease large issuers’ initial difficulties in implementing the new requirements. These measures all align with ESMA’s broader mission of promoting EU capital markets as a hub for green finance and improving supervisory consistency amongst EU National Authorities In the future, ESMA will continue to monitor the sustainability reporting practices as well as the application of the guidelines.

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The European Securities and Market Authority publishes the second Final Report under the Markets in Crypto-Assets Regulation (04.07.2024) – ESMA’s second Final Report under the Markets in Crypto-Assets Regulation covers eight draft technical standards aimed at enhancing transparency for retail investors, providing clarity for providers on disclosure and record-keeping requirements, and establishing data standards to facilitate supervision by National Competent Authorities. The draft standards also provide market participants with technical requirements to ensure human and machine readability of crypto-asset white papers, as well as templates and formats for crypto-assets service providers to manage their transaction records. The Final Report also analyses public disclosures that enhance investor’s knowledge on the impact on the environment of the technology behind their crypto assets.

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COURT OF JUSTICE OF THE EUROPEAN UNION (CJEU)

The European Court of Justice delivers its opinion on so-called “floor clauses” in mortgage loans (04.07.2024) – The European Court has delivered its judgment in the Case C-450/22, which pertains to the examination of transparency in collective actions in relation to floor clauses in mortgage loans. These clauses establish a lower limit for the variable interest rate, ensuring it does not drop below a certain point even if the reference rate does. A collective action against 101 financial institutions in Spain was initiated by the Spanish association of users of banks, savings banks, and insurance, with the objective of discontinuing the use of floor clauses and seeking reimbursement of payments made under them. The case was appealed to the Spanish Supreme Court, which expressed doubts about the appropriateness of collective proceedings for reviewing the transparency of floor clauses. The CJEU clarified that the directive under scrutiny does not exclude judicial review of transparency in the context of a collective action. Therefore, the Spanish Supreme Court will need to determine whether significant events, such as the collapse in interest rates in the 2000s or the court’s own judgment in 2013 declaring floor clauses as non-transparent, could have influenced the average consumer’s level of attention and information when entering into a mortgage loan agreement.

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This newsletter provides a selection of opinions and analysis from our EU legal experts on interesting policy developments, recent case law and new regulatory directions of major industry practices. It is released biweekly and covers areas such as: Competition Law, Sanctions, Trade, Energy, Finance, EU funds, Data IP and Privacy, Life Sciences, Transport and Court of Justice of the European Union news.

The aim is to provide an up–to–date tool for quick and easy consultation on the most current and important topics at EU level.

• Competition Law and State Aid
• Sanctions
• Trade
• Energy and Green Deal
• Banking & Finance
• EU Funds
• Life Sciences
• Transport and Electric Vehicles
• Data, IP and Privacy
• Consultions and Calls

EUROPEAN CENTRAL BANK (ECB)

The European Central Bank publishes first progress report on digital euro preparation phase (24.06.2024) – The European Central Bank published its first progress report on the digital euro preparation phase, which was launched on 1^st November 2023 with the aim of laying the foundations for the potential issuance of a digital euro. The report outlines the progress made on key digital euro design aspects and the envisaged next steps for the project.

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The European Central Bank publishes its report on Financial Integration and Structure in the Euro Area (18.06.2024) – The European Central Bank latest report on Financial Integration and Structure in the Euro Area shows that large investments are needed, in order to face future needs such as the green and digital transitions, security and aging populations. This can only be possible if the financial systems in the Euro Area are further integrated. Indeed, since its establishment, the Euro Area has demonstrated its strengths by being highly resilient during crises. However, progress in its financial integration has declined significantly over the last two years, without ever increasing by a noteworthy amount since the start of the monetary union. To further financial integration, the ECB calls for policy actions aimed at mobilising available savings, developing Euro Area bond and equity markets, and making these markets more attractive to foreign investors, while also facilitating cross-border banking and harmonising regulatory frameworks and disclosure requirements. 

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The European Central Bank publishes its annual review on the euro’s international role (12.06.2024) – According to the ECB’s annual review, the euro remained the world’s second most important currency in 2023. Despite high global inflationary pressures and geopolitical tensions, the share of the euro remained above 19%, according to multiple indicators of international currency use. Moving forward, the ECB recommends a broader integration of the European’s financial and economic systems to increase the resilience of the international use of the euro.

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EUROPEAN SUPERVISORY AUTHORITIES (ESAs)

The European Supervisory Authorities publish a joint Opinion on the assessment of the Sustainable Finance Disclosure Regulation (18.06.2024) – The European Banking Authority, the European Insurance and Occupational Pensions Authority and the European Securities and Markets Authority published a joint opinion in the context of a comprehensive review of the SFDR framework called by the European Commission. The Opinion argues for the introduction of two straight-forward categories for financial products in the Sustainable Finance Disclosure Regulation: “sustainable” and “transition”. These two categories have the purpose of enhancing the consumers’ comprehension of the products, in order to reduce greenwashing risks and increase the information available to investors. The ESAs also suggests that the European Commission (i) adopt sustainability indicators to grade financial products, (ii) improve the definitions of sustainable investments, and (iii) simplify the way the disclosures are presented to investors.

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The European Supervisory Authorities renew the term of the President of the Board of Appeal, and elect a new Vice President (14.06.2024) – Michele Siri, Professor of Insurance and Financial Markets Law, University of Genoa, Italy, was renewed by the ESAs as their Board of Appeal’s President for a new term of two years and a half, and Margarida Lima Rego, Associate Professor and Vice-Dean at NOVA School of Law, NOVA University, Portugal, was appointed as Board of Appeal’s Vice-President for the same time period.

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EUROPEAN BANKING AUTHORITY (EBA)

The European Banking Authority publishes amendments to counterparty credit risk standards as part of its new roadmap for the implementation of the Banking Package in the EU (24.06.2024) – The European Banking Authority published its final draft amending Regulatory Technical Standards (RTS) on the standardised approach for counterparty credit risk (SA-CCR). This regulatory product is part of the new roadmap on the Banking Package. The amendments to the Capital Requirements Regulation (CRR3) have expanded the EBA mandate to specify the formula to calculate the supervisory delta of options under the SA-CCR framework. Alongside the supervisory delta formula for interest rate options compatible with negative interest rates, the mandate now also requires the specification of the supervisory delta formula for commodity options compatible with negative commodity prices. Therefore, the existing RTS on SA-CCR have been amended to include the formula for commodity options.

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The European Banking Authority updates the Pillar 3 disclosure framework finalising the implementation of the Basel III Pillar 3 framework (21.06.2024) – The European Banking Authority published a final draft implementing technical standards (ITS) on public disclosures by institutions that implement the changes in the Pillar 3 disclosure framework introduced by the amending Regulation (EU) 2024/1623 (CRR 3). These ITS will ensure that market participants have sufficient comparable information to assess the risk profiles of institutions and understand compliance with CRR 3 requirements, further promoting market discipline.

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The European Banking Authority publishes its final draft Regulatory Technical Standards under the Capital Requirements Regulation (20.06.2024) – The European Banking Authority  published the final draft for Regulatory Technical Standards (RTS) under the Capital Requirements Regulation (CRR), covering both the conditions for assessing the materiality of model extensions and changes, and the changes to the subset of modellable risk factors, applicable under the Fundamental Review of the Trading Book rules. The draft differentiates material extensions and changes from non-material extensions and changes and sets out a combination of quantitative and qualitative conditions for the categorisation of extensions and changes. This publication completes the June 2019 roadmap on market and counterparty credit risk approaches. 

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The European Banking Authority publishes regulatory products under the Markets in Crypto-Assets Regulation (19.06.2024) – The European Banking Authority published the last package of technical standards and guidelines under the Markets in Crypto-Assets Regulation (MiCAR), thereby completing the delivery of its technical standards under the regulation. This package covers reporting, liquidity stress testing, as well as supervisory colleges, and it comprises, among others, (i) the Final draft RTS further specifying the liquidity requirements of the reserve of assets; (ii) the Final draft RTS to specify the highly liquid financial instruments; and (iii) the Guidelines on recovery plans.

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The European Banking Authority publishes the technical standards and guidelines under the Markets in Crypto Assets Regulation (13.06.2024) – Pursuant to the provisions of the Markets in Crypto Assets Regulation, the EBA published a set of regulatory instruments to develop a well-regulated market for asset-referenced and e-money tokens in the European Union. The regulatory package covers prudential matters. It comprises new regulatory technical standards relating to own fund and liquidity, and new guidelines on recovery plans.

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The European Banking Authority issues a revised list of its Implementing Technical Standards validation rules (13.06.2024) – The revised list of Implementing Technical Standards (ITS) validation rules, issued by the EBA, deactivated some of the rules present in older versions of the list. This means that data submitted in accordance with deactivated rules should not be formally validated by the Competent Authorities.

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EUROPEAN SECURITIES AND MARKET AUTHORITY (ESMA)

The European Securities and Market Authority publishes the 2023 Annual Report (14.06.2024) – The Annual Report for 2023 illustrates the authority’s key achievements after the first year of implementation of its five-years plan for enhancing investor protection and promoting stable and orderly financial markets in the European Union. The Annual Report

mainly focuses on investor protection, risk monitoring and supervision. In 2023, ESMA has been especially active in the monitoring of risks and resilience of financial markets and in supporting supervisory convergence through extensive work in the digital space. Among others, some of ESMA’s key achievements are: the exploration of new areas of regulation, in preparation for the implementation of the Digital Operational Resilience Act; the launch of a new data strategy for 2023-2028, aiming to leverage technology and data to improve market supervision and investors’ protection; the assessment of greenwashing through a progress report on greenwashing risks and supervision.

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COUNCIL OF THE EUROPEAN UNION (COUNCIL)

Council reaches agreement for a new regulatory package for retail investment (12.06.2024) – Council reached an agreement for a new regulatory package, aimed at strengthening the EU rules on retail investor protection. The package will provide retail investors with clearer information about investment products and will ensure more transparency and disclosure. Vincent Van Peteghem, Belgian Minister of Finance, commented the agreement by highlighting the need to incentivize retail investors to make sound investment decisions in the EU market, in the hope that their enhanced trust in the capital markets will make their savings flow to innovative European companies, including small and medium enterprises.

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Energy & Petroleum

A Presidential Decree approved the partial reform that modifies, among other things, the corporate purpose of the mixed company Petroquiriquire, S.A. Likewise, the National Executive approved the transfer to the aforementioned company of the rights for the development of the primary activities of exploration, gathering and transfer of oil in
the geographic areas denominated "Campo la Ceiba-Occidente, Campo Tomoporo-Bloque VII-CEUTA” of the State of Zulia for a period of twenty five (25) years as from the date of publication of the Decree in the Official Gazette. (Official Gazette No. 6.801 Extraordinary of 17/04/2024. Entry into force: On the date of publication in the Official Gazette).

A Presidential Decree approved the creation of the mixed company Petrolera Roraima, S.A. Likewise, the National Executive approved the transfer to the aforementioned company of the rights for the development of the primary activities of exploration, gathering and transfer of oil in the geographic areas designated by the Ministry of the
Popular Power for Petroleum, for a period of twenty five (25) years as from the date of publication of the Decree in the Official Gazette. (Official Gazette No. 6.801 Extraordinary of 17/04/2024. Entry into force: On the date of publication in the Official Gazette).

Banking and Finance

The Venezuelan Central Bank (VCB) established the interest rates applicable to obligations derived from employment
relationships (58.98% and 47.49% - April 2024) and to transactions with credit cards (60.00% annual maximum rate and 17.00% annual minimum rate - May 2024). (Official Gazette of 05/21/2024. Official Notice. Entry into force: Upon publication in the Official Gazette).

Tax

The new Customs Tariff was approved, which incorporates the VII Recommendation of Amendment of the Harmonized System based on the Mercosur Common Nomenclature (Nomenclatura Común del Mercosur - NCM), thus abrogating the Decree No. 2,647 dated 12/30/2016, published in Official Gazette No. 6,281 Extraordinary, dated 12/30/2016. (Official Gazette No. 6804 Extraordinary of 04/25/2024. Administrative Rulings Nos. SNAT/2024/00005and SNAT/2024/00006. Entry into force: 30 days upon publication in the Official Gazette).

The National Integrated Service of Customs and Tax Administration (Servicio Nacional Integrado de Administración Aduanera y Tributaria - SENIAT) established the rate applicable to the calculation of late payment interest accrued during September and October, 2023. It was established that the weighted average interest rates for loans of the
six (6) principal commercial and universal banks of the country with the highest volume of deposits, excluding portfolios with prime rates, set by the VCB for September 2023 is 57.84%, and for October 2023 is 56,14%, which rates are to be increased 1.2 times for the calculation of late payment interest accrued during said months. (Official Gazette
of 05/21/2024. Official Notice. Entry into force: Upon publication in the Official Gazette).

Labor

The National Assembly issued the Law of Partial Reform of the Decree with Rank, Value and Force of Law of the Housing and Habitat Benefit System, establishing, among others, the contribution of 0.5% for individuals or legal entities of the total estimated amount of the works projects whose cost exceeds 500,000 times the Exchange Rate of the Highest Value Currency published by the VCB. (Official Gazette No. 6.805 Extraordinary of 05/01/2024. Entry into force: 30 days upon publication in the Official Gazette).

The National Assembly issued the Law for Protection of Social Security Pensions in the face of the Imperialist Blockade (The Law), which creates a special contribution which amount will be up to 15% of the total payments made by taxpayers to the workers on account of salary and non-salary bonuses, amount to be fixed annually by the National
Executive. The calculation basis of the special contribution may not be lower than the indexed minimum integral income defined by the National Executive. (Official Gazette No. 6.806 Extraordinary of 05/08/2024. Entry into force: Upon publication in the Official Gazette). Likewise, a Presidential Decree established that the amount of the special
contribution provided for in the Law was set at nine percent (9%) of the total payments made by taxpayers to workers. (Official Gazette of 05/16/2024. Entry into force: Upon publication in the Official Gazette). Finally, the SENIAT issued an Administrative Ruling establishing the rules of declaration and payment of the special contribution for the Law, as well as the corresponding declaration and payment schedule. (Official Gazette of 05/17/2024. Entry into force: Upon publication in the Official Gazette).

Civil Aeronautics

The National Assembly issued the Law Approving the Agreement between the Government of Venezuela and the
Government of China on Air Services, which has the purpose of granting overflight rights over the territory of the other party of the Agreement, making technical stopovers for non-commercial purposes, with the proviso that neither of the parties shall have the privilege of embarking passengers, cargo and mail in the territory of the other Party for lucrative purposes and with destination to another destination without prior authorization. (Official Gazette No. 6.807 Extraordinary of 05/13/2024. Entry into force: Upon the date of receipt of the last notification, by means of diplomatic notes, from any of the Contracting Parties to the other Contracting Party).

Misclellaneous

The Ministry of the Popular Power for Ecosocialism issued the Rules for the Integral Management of Waste of Electrical and Electronic Equipment, which will be aimed at the management of recoverable hazardous materials and hazardous waste in order to reduce their generation and guarantee the mechanisms of use and final disposal of such waste. (Official Gazette of 05/03/2024. Entry into force: After 90 days upon the date of publication in the Official Gazette).

The National Assembly issued the Law Approving the Agreement between the Government of Venezuela and the
Government of Turkey, concerning the reciprocal promotion and protection of investments, which purpose is to stimulate and create favorable conditions for investors to make investments in each of the territories of the contracting parties. (Official Gazette No. 6.808 Extraordinary of 05/13/2024. Entry into force: Upon the date of receipt of the last
notification, by means of diplomatic notes, from any of the Contracting Parties to the other Contracting Party).

COMPETITION LAW AND STATE AID

EUROPEAN COMMISSION (EC)

Italy: the European Commission approves 2 billion euro State aid measure to support STMicroelectronics to set up a new semiconductor manufacturing facility (31.05.2024) – The European Commission has approved, under EU State aid rules, a 2 billion euro Italian measure to support STMicroelectronics (‘ST') in the construction and operation of an integrated chip manufacturing plant for Silicon Carbide (‘SiC') power devices in Catania, Sicily. The measure will strengthen Europe's security of supply, resilience and digital sovereignty in semiconductor technologies, in line with the objectives set out in the European Chips Act Communication. The measure will also contribute to achieving the digital and green transitions.

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The European Commission amends Guidelines on Regional State aid to allow increased support to Strategic Technologies for Europe Platform projects (31.05.2024) – The European Commission has adopted an amendment to the Guidelines on Regional State aid (‘RAG') to allow Member States to grant higher amounts of regional aid for investment projects covered by the Strategic Technologies for Europe Platform (‘STEP'). The STEP aims to support the development and manufacturing of critical technologies relevant to the EU green and digital transitions, as well as the EU's strategic sovereignty. In particular, the nee amendment increases levels of regional aid for investment projects covered by the STEP by up to 10 percentage points in the regions eligible for aid under Article 107(3)(a) of the Treaty on the Functioning of the European Union and 5 percentage points in the regions eligible for aid under Article 107(3)(c) of the Treaty on the Functioning of the European Union (so-called ‘c' areas).

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The European Commission approves KKR's acquisition of NetCo (30.05.2024) – The European Commission has approved unconditionally, under the EU Merger Regulation, the acquisition by KKR & Co. Inc. (‘KKR') of NetCo. The Commission concluded that the transaction would raise no competition concerns in the European Economic Area (‘EEA'). In particular, the decision concerns the acquisition by KKR of NetCo, which comprises the primary and backbone fixed-line network business of Telecom Italia S.p.A. (‘TIM') as well as FiberCop S.p.A (‘FiberCop'). FiberCop is a joint venture between TIM and KKR comprising TIM's secondary fixed-line network. The European Commission investigated the impact of the transaction on the market for wholesale broadband access services in Italy and concluded that it would not significantly reduce the level of competition.

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The European Commission approves more than 1 billion euro of State aid by seven Member States for the fourth Important Project of Common European Interest in the hydrogen value chain (28.05.2024) – A fourth Important Project of Common European Interest (‘IPCEI') to support research, innovation and the first industrial deployment in the hydrogen value chain. The project contributes to the EU's target of 90% reduction of emissions from the mobility and transport sectors, in order for the EU to become climate-neutral by 2050. By fostering the use of hydrogen as a fuel, it will also help achieve the objectives of the European Green Deal, the EU Hydrogen Strategy and the Sustainable and Smart Mobility Strategy. The project, called ‘IPCEI Hy2Move', was jointly prepared and notified by seven Member States: Estonia, France, Germany, Italy, Netherlands, Slovakia and Spain.

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The European Commission approves up to 1 billion euro of State aid by six Member States for the first Important Project of Common European Interest in the health sector (28.05.2024) – The project, called “IPCEI Med4Cure”, was jointly notified by six Member States: Belgium, France, Hungary, Italy, Slovakia and Spain.IPCEI Med4Cure concerns research and development projects covering all key steps of the pharmaceutical value chain from collection and study of cells, tissues and other samples, to sustainable production technologies of breakthrough therapies, including personalised treatments, and to application of advanced digital technologies. The project aims at accelerating medical advancement and at fostering the resilience of the EU health industry by enhancing drug discovery, in particular for unmet medical needs such as rare diseases and developing innovative and more sustainable production processes for pharmaceuticals. These developments will improve the quality of healthcare and increase the EU's preparedness for emerging health threats while contributing to the green transition.

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Czech Republic: the European Commission approves State more than 3 billion euro aid scheme to support high-efficiency combined heat and power generation (27.05.2024) – The beneficiaries are operators of new or modernised CHP installations in Czechia that meet the definition of high-efficiency cogeneration as set out in the Energy Efficiency Directive. All technologies and projects that enable the production of electricity from high-efficiency CHP installations are eligible, except for those powered by solid fossil fuels, diesel and oil. Projects involving natural gas will be required to either close the aided installations or enable switch to renewable and low-carbon gases by 2050, to avoid lock-in of natural gas. Under the scheme, the aid will take the form of a feed-in premium (bonus) for each MWh of produced electricity for a duration of 15 years. The amount of bonus is set through tenders, except for small installations (up to 1 MWe) where the amount is set administratively by the Czech Energy Regulatory Office on an annual basis and limited to the funding gap.

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France: the European Commission approves State 4 billion euro aid scheme to support decarbonisation measures in the manufacturing sector (24.05.2024) – Under this measure, the aid will take the form of direct grants amounting to up to 30% of the project's investment costs. The measure will be open to companies active in the manufacturing sector in France. Eligible electrification projects must lead to a reduction of greenhouse gas emissions from industrial processes of at least 40% compared to, while energy efficiency projects must lead to a reduction in the energy consumed in industrial processes of at least 20% compared to today. For investments relating to activities covered by the EU Emission Trading System (‘ETS'), the emissions reduction must go below the relevant ETS benchmarks in force at the time of granting the aid.

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The European Commission fines Mondelēz almost 350 million euro for cross-border trade restrictions (23.05.2024) – Mondelēz, headquartered in the US, is one of the world's largest producers of chocolate and biscuit products. Its portfolio includes well-known chocolate and biscuit brands such as Côte d'Or, Milka, Oreo, Ritz, Toblerone and TUC and until 2015 coffee brands such as HAG, Jacobs and Velours Noir. The Commission's investigation found that Mondelēz breached EU competition rules: (i) by engaging in anticompetitive agreements or concerted practices aimed at restricting cross-border trade of various chocolate, biscuit and coffee products; and (ii) by abusing its dominant position in certain national markets for the sale of chocolate tablets. The Commission concluded that Mondelēz's illegal practices prevented retailers from being able to freely source products in Member States with lower prices and artificially partitioned the internal market. Mondelēz' aim was to avoid that cross-border trade would lead to price decreases in countries with higher prices.

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Germany: the European Commission approves State almost 2 billion euro aid scheme to support rail freight transport operators providing single and group wagon transport (21.05.2024) – The aim of the scheme is to help rail operators cover part of the high operating cost. In doing so, the scheme aims to support and preserve the modal shift from road to rail transport, thus promoting a greener means of transport. In single wagon load transport, individual wagons or groups of wagons from different consignors are bundled together to form one train. On the contrary, wagon group transport keeps the same composition from the origin to the destination and is eligible under the scheme for journeys up to a maximum distance of 300 km if operated by short block trains with up to 15 wagons. Both types of transport struggle to reach economic viability. Single wagon load transport entails high costs due to its complex and multi-step nature resulting from the switching and shunting of wagons. Wagon group transport operated by short block trains does not benefit from economies of scale due to the lower number of wagons and the short distances they serve.

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RUSSIAN SANCTIONS

COUNCIL OF THE EUROPEAN UNION (COUNCIL)

DPRK: EU sanctions nine additional individuals and entities involved in the country’s activities related to illegal weapons programmes and supporting Russia’s war of aggression against Ukraine (31.05.2024) – The Council sanctioned a further six individuals and three entities in view of sanctions evasion activities carried out by the Democratic People’s Republic of Korea’s (DPRK) that could generate funds for its illegal nuclear and ballistic missile programmes, in violation of and with flagrant disregard for the relevant UN Security Council resolutions, and in view of the military support given by the DPRK to Russia’s war of aggression against Ukraine.

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Iran: EU lists more individuals and entities for the transfer of drones for Russia’s war of aggression against Ukraine and for the transfer of drones and missiles in the Middle East and Red Sea region (31.05.2024) – The Council adopted restrictive measures against six individuals and three entities for their role in the transfer of unmanned aerial vehicles (UAVs) to Russia in support of its war of aggression against Ukraine; the transfer of UAVs or missiles to armed groups and entities undermining peace and security in the Middle East and the Red Sea region; or for being involved in Iran’s UAV programme.

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Information manipulation in Russia’s war of aggression against Ukraine: EU lists two individuals and one entity (27.05.2024) – The Council decided to impose restrictive measures against two individuals and one entity responsible for conducting propaganda actions targeted at civil society in the EU and its neighbouring countries, gravely distorting and manipulating facts in order to justify and support Russia's war of aggression against Ukraine. The propaganda has repeatedly and consistently targeted European political parties, especially during election periods, as well as targeting civil society, asylum seekers, Russian ethnic minorities, gender minorities, and the functioning of democratic institutions in the EU and its member states.

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Russia: EU sets up new country-specific framework for restrictive measures against those responsible for human rights violations and lists 20 persons (27.05.2024) – The Council established a new framework for restrictive measures against those responsible for serious human rights violations or abuses, repression of civil society and democratic opposition, and undermining democracy and the rule of law in Russia. The decision to establish this new sanctions’ regime is part of the EU’s response to the accelerating and systematic repression in Russia. The new regime was proposed by the High Representative for Foreign Affairs and Security Policy, Josep Borrell, after the untimely death of the opposition politician Alexei Navalny in Siberian prison in February.

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TRADE

EUROPEAN COMMISSION (EC)

EU requests World Trade Organization consultation on Colombia’s compliance in frozen fries dispute (31.05.2024) – The European Commission has launched compliance proceedings against the Republic of Colombia in view of its failure to comply with rulings by the WTO Panel and Appeal Arbitrators concerning anti-dumping duties on imports of frozen fries from Belgium, the Netherlands and Germany. This is why the EU is making recourse to the WTO’s compliance consultation process. With this step, the EU seeks to preserve the rights of EU exporters and to send a signal to Colombia – as well as other countries intending to limit EU exports – that anti-dumping investigations need to be carried out in full respect of WTO rules.

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COUNCIL OF THE EUROPEAN UNION (COUNCIL)

EU-Kenya: Council of the EU takes final step to allow the implementation of the Economic Partnership Agreement (30.05.2024) – The Council of the European Union adopted a decision on the conclusion of the EU-Kenya Economic Partnership Agreement (EPA). The agreement will provide duty-free, quota-free EU market access to all exports from Kenya (except arms) as soon as it enters into force, as well as partial and gradual opening of the Kenyan market to imports from the EU. This will boost trade in goods and create new economic opportunities, with targeted cooperation to enhance Kenya's economic development.

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The Council adopts conclusions on the future of industrial policy (24.05.2024) – The Council of the European Union, on the initiative of the Belgian presidency, has adopted conclusions on 'A competitive European industry driving our green, digital and resilient future'. Boosting the competitiveness of European industry should be high on the political agenda of the next European Commission and these conclusions provide the way forward towards a new European competitiveness deal. The conclusions analyse the situation of the EU's industrial sector, explore ways to improve innovation, access to finance and the business environment for manufacturers, and propose the main principles underlying a future EU industrial policy.

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WORLD TRADE ORGANIZATION (WTO)

The European Union initiates compliance proceedings over Colombian duties on frozen fries (04.06.2024) – The European Union has requested World Trade Organization (WTO) consultations with Colombia to address measures taken by Colombia to comply with an earlier WTO panel ruling and arbitration award regarding Colombia’s anti-dumping duties on imports of frozen fries originating in Belgium, the Netherlands and Germany.

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The European Union and Australia affirm intention to implement recent World Trade Organization rulings (24.05.2024) – The European Union and Australia affirmed their intention to implement recent World Trade Organization (WTO) panel rulings regarding EU measures concerning palm oil and biofuels from Malaysia and Australian duties on Chinese imports at a meeting of the Dispute Settlement Body (DSB). China also reported to the DSB on its implementation of a WTO ruling regarding Chinese duties on steel imports from Japan.

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ENERGY AND GREEN DEAL

EUROPEAN COMMISSION (EC)

The European Commission starts working on a new pilot mechanism to boost the hydrogen market (03.06.2024) – The European Commission takes further steps to support the development of the European hydrogen market by launching work on a pilot mechanism. The new mechanism was created under the recently adopted decarbonised gases and hydrogen package and aims to accelerate investments by providing a clearer picture of the market situation of both off-takers and suppliers and facilitating contacts between them. It will be in place for five years and will be part of the European Hydrogen Bank.

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The European Commission welcomes the new EU Methane Regulation to reduce harmful emissions from fossil fuels in Europe and abroad (27.05.2024) – The European Commission welcomes the first-ever EU rules to curb methane emissions from the energy sector in Europe and across the globe The new regulation obliges the fossil gas, oil and coal industry in Europe to measure, monitor, report and verify their methane emissions according to the highest monitoring standards, and to take action to reduce them. It requires EU gas, oil and coal operators to stop avoidable and routine flaring and to reduce flaring and venting to situations such as emergencies, technical malfunctions or when it is necessary for safety reasons.

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The European Commission welcomes Net-Zero Industry Act (27.05.2024) – The Commission welcomes the final adoption of the Net-Zero Industry Act (“NZIA”), which puts the EU on track to strengthen its domestic manufacturing capacities of key clean technologies. For the EU to become a leader in the clean tech sector, NZIA sets a benchmark for the manufacturing capacity of strategic net-zero technologies to meet at least 40% of the EU's annual deployment needs by 2030. The benchmark provides predictability, certainty and long-term signals to manufacturers and investors and allows progress to be tracked. To support carbon capture and storage projects and increase the availability of CO2 storage sites in Europe, NZIA also sets a target of 50 million tonnes of annual injection capacity in EU geological CO2 storage sites by 2030.

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The European Commission welcomes entry into force of the European Critical Raw Materials Act (23.05.2024) –The Critical Raw Materials Act establishes benchmarks to increase capacities for extraction, processing, and recycling of critical raw materials in the EU and guide diversification efforts. In addition, it creates a framework to select and implement Strategic Projects, which can benefit from streamlined permitting and enabling conditions for access to finance; as well as sets out national requirements to develop exploration programmes in Europe. Moreover, the Regulation will improve the circularity and the efficient use of the critical raw materials by creating value chains for recycled critical raw materials. To ensure resilience of the supply chains, the Act allows the monitoring of critical raw materials supply chains, and information exchange and future coordination on strategic raw materials' stocks among Member States and large companies.

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COUNCIL OF THE EUROPEAN UNION (COUNCIL)

Energy Charter Treaty: the Council gives final green light to EU’s withdrawal (30.05.2024) – The formal decision by the Council of EU gives the final green light for the EU and Euratom to withdraw from the Energy Charter Treaty after the European Parliament approved it during its last plenary session in April 2024. The decisions are linked as they form the two pillars of a political compromise known as the Belgian roadmap on the Energy Charter Treaty. The Energy Charter Treaty (ECT) is a multilateral agreement that entered into force in 1998 and contains provisions on investment protection and trade in the energy sector.

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Sustainable electricity grids: the Council approves conclusions (30.05.2024) – The Council of the EU approved conclusions on the EU’s electricity grid infrastructure, proposing a series of measures for an interconnected and resilient electricity network in Europe, to ensure energy security and achieve decarbonisation in the EU. The Council conclusions highlight the need for long-term, coordinated electricity grid infrastructure planning at European level, and call on the European Commission to assess and identify any gaps and develop measures, if needed, to improve the governance framework at EU level.

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The Council gives final green light to cut methane emissions in the energy sector (27.05.2024) – The Council adopted a regulation on tracking and reducing methane emissions as part of the ‘Fit for 55’ package. The regulation introduces new requirements on measuring, reporting and verifying methane emissions in the energy sector. Mitigation measures, such as detecting and repairing methane leaks and limiting venting and flaring, will aim to avoid methane emissions. Operators will have to measure methane emissions at source level and draw up monitoring reports that will be checked by independent accredited verifiers. Member states will maintain and regularly update an inventory of all wells, as well as mitigation plans for inactive wells, in order to prevent any public health and environmental risks from methane emissions. National authorities will carry out periodic inspections to check and ensure operators' compliance with the requirements of the regulation, including the taking of follow-up remedial measures.

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The Council gives its final approval to the ecodesign regulation (27.05.2024) – The Council adopted the ecodesign regulation, which sets requirements for sustainable products. The regulation replaces the existing ecodesign directive and enlarges its scope, beyond energy products, to all kind of goods placed in the EU market. The new regulation introduces new requirements such as product durability, reusability, upgradability and reparability, rules on the presence of substances that inhibit circularity; energy and resource efficiency; recycled content, remanufacturing and recycling; carbon and environmental footprints; and information requirements, including a Digital Product Passport. The Commission will be empowered to set ecodesign requirements by delegated acts and the industry will have 18 months to comply with them. Ecodesign criteria will be applicable in public procurement to incentivise the public purchase of green products. The new regulation introduces a direct ban on the destruction of unsold textiles and footwear (SMEs will be temporarily excluded) and empowers the Commission to introduce similar bans for other products in the future. The ecodesign regulation will be aligned to the digital services act, when it comes to products sold online.

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EUROPEAN PARLIAMENT (EP)

The European Parliament publishes document on the Energy Performance Building Directive recast (28.05.2024) – The European Parliament has published an accompanying document in sight of the entry into force of the recast Energy Performance of Buildings Directive (“EPBD”). The EPBD has been designed to accelerate building renovation rates, reduce energy consumption, and promote the uptake of renewable energy in buildings. These measures should help the EU reach its target of a net 55 % reduction in greenhouse gas (“GHG”) emissions by 2030, as a stepping stone towards achieving climate neutrality by 2050. Under the revised directive, Member States will have to ensure a reduction in the average primary energy used in residential buildings of at least 16 % by 2030 and between 20 % and 22 % by 2035. To ensure sufficient flexibility and reflect national circumstances, each Member State will be allowed to adopt its own national trajectory to reduce average primary energy use. Member States may choose buildings to target and measures to take, providing 55 % of the energy reduction is achieved by renovating the worst performing buildings.

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BANKING & FINANCE

EUROPEAN CENTRAL BANK (ECB)

The European Central Bank publishes the April 2024 Euro area bank interest rate statistics (05.06.2024) – According to the ECB’s Euro area bank interest rate: (i)composite cost-of-borrowing indicator for new loans to corporations and for new loans to households for house purchase unchanged at 5.18% and 3.80%, respectively; (ii) composite interest rate for new deposits with agreed maturity from corporations broadly unchanged at 3.65%; interest rate for overnight deposits from corporations broadly unchanged at 0.91%; (iii)composite interest rate for new deposits with agreed maturity from households decreased by five basis points to 3.11%, driven by both interest rate and weight effects; interest rate for overnight deposits from households unchanged at 0.39%.

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The European Central Bank publishes the April 2024 monetary developments in the euro area (29.05.2024) – According to the ECB’s the April 2024 monetary developments in the euro area, the annual growth rate of the broad monetary aggregate M3 increased to 1.3% in April 2024 from 0.9% in March, averaging 0.8% in the three months up to April. The components of M3 showed the following developments. The annual growth rate of the narrower aggregate M1, which comprises currency in circulation and overnight deposits, was -6.0% in April, compared with -6.6% in March. The annual growth rate of short-term deposits other than overnight deposits (M2-M1) decreased to 15.7% in April from 16.7% in March. The annual growth rate of marketable instruments (M3-M2) increased to 22.6% in April from 19.3% in March.

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The European Central Bank publishes the April 2024 Consumer Expectations Survey results (28.05.2024) – According to the ECB’s Consumer Expectation Survey for the month of April 2024, median consumer inflation perceptions over the past 12 months remained steady, while median inflation expectations for the next 12 months and for three years ahead declined slightly; expectations for nominal income growth and nominal spending growth over the next 12 months remained substantially unchanged; expectations for economic growth over the next 12 months became less pessimistic, while the expected unemployment rate in 12 months-time increased; expectations for home price growth over the next 12 months rose, while expectations for mortgage interest rates over the 12 months ahead remained unchanged.

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EUROPEAN BANKING AUTHORITY (EBA)

The European Supervisory Authorities call for enhanced supervision and improved market practice on sustainability-related claims (04.06.2024) – The European Supervisory Authorities (EBA, EIOPA and ESMA – ESAs) have published their final Reports on Greenwashing in the financial sector. In their respective reports the ESAs reiterate their common high-level understanding of greenwashing as a practice whereby sustainability-related statements, declarations, actions, or communications do not clearly and fairly reflect the underlying sustainability profile of an entity, a financial product, or financial services. This practice may be misleading to consumers, investors, or other market participants. Therefore, the ESAs stress again that financial market players have a responsibility to provide sustainability information that is fair, clear, and not misleading.

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The European Banking Authority and the European Securities and Markets Authority invite comments on the review of the investment firms prudential framework (03.06.2024) – The EBA and ESMA published a discussion paper on the potential review of the investment firms’ prudential framework. The discussion paper aims at gathering early stakeholder feedback to inform the response to the European Commission’s call for advice (CfA). To assess the impact of the possible changes discussed in the paper, the EBA also launched a data collection exercise on a voluntary basis.

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The European Supervisory Authorities sign a memorandum of understanding to strengthen cooperation and information exchange (31.05.2024) – The European Supervisory Authorities (EBA, EIOPA, and ESMA - the ESAs) announced that they have concluded a multilateral Memorandum of Understanding (MoU) to strengthen cooperation and information exchange with the European Union Agency for Cybersecurity (ENISA). This MoU sets out the framework for cooperation and exchange of information on tasks of mutual interest, including policy implementation, incident reporting, and oversight of critical Information Communication Technologies (ICT)third-party providers. It will also promote regulatory convergence, facilitate cross-sectoral learning and capacity building on areas of mutual interest, and information exchange on emerging technologies.

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The European Supervisory Authorities publish templates and tools for voluntary dry run exercise to support the DORA implementation (31.05.2024) – The European Supervisory Authorities (EBA, EIOPA and ESMA – the ESAs) published templates, technical documents and tools for the dry run exercise on the reporting of registers of information in the context of Digital Operation Resilience Act (DORA) announced in April 2024. Financial entities can use these materials and tools to prepare and report their registers of information of contractual arrangements on the use of ICT third-party service providers in the context of the dry run exercise, and to understand supervisory expectations for the reporting of such registers from 2025 onwards.

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The European Banking Authority shows that funds to protect deposits in case of bank failure are going up (28.05.2024) – EBA has published end-2023 data related to two key concepts and indicators in the Deposit Guarantee Schemes Directive (DGSD), namely available financial means (AFMs) and covered deposits. Data shows that: (i)deposits protected by EU deposit guarantee schemes (DGS) increased by 1.7% to 8.5 trillion Euros between 2022 and 2023, whereas funds available to protect those deposits in case of bank failures rose by 14.9% to 73 billion euro; (ii)the high increase in the amount of funds held by DGSs to protect deposits reflects the need for all the DGSs to reach the minimum target level of 0.8% of covered deposits by July 2024; (iii)as of December 2023, 21 of the 36 DGSs in the European Economic Area (EEA) had already reached the minimum target level ahead of the deadline.

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The European Banking Authority issues its final Guidelines on STS criteria for on-balance-sheet securitisation (27.05.2024) – EBA has released its final Guidelines on criteria concerning simplicity, standardisation, transparency, and additional specific criteria for on-balance-sheet securitisations (so-called “STS criteria”). The Guidelines aim to ensure a harmonised interpretation and implementation of STS criteria across the EU, aligning with existing guidelines for asset-backed and non-asset-backed commercial paper (ABCP and non-ABCP) securitisation. By providing a unified interpretation of STS criteria, the Guidelines support the adoption of the STS criteria, which is necessary for preferential risk weight treatment under the Capital Requirements Regulation (CRR).

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The European Banking Authority publishes a Report on the issuance of virtual IBANs (24.05.2024) – EBA published a Report on the issuance of virtual IBANs (“vIBANs”), noting the lack of a common definition and varying practices across the industry. The Report, which sets out the characteristics and use cases of virtual IBANs, highlights issues related to money laundering, consumer protection, authorisation, passporting, and regulatory arbitrage due to differing national interpretations and applications of EU financial regulations. The Report offers recommendations for clarifying EU law and suggests actions that national competent authorities can take to address these issues.

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EUROPEAN SECURITIES AND MARKETS AUTHORITY (ESMA)

The European Banking Authority and the European Securities and Markets Authority invite comments on the review of the investment firms prudential framework (03.06.2024) – ESMA and EBA published a discussion paper on the potential review of the investment firms’ prudential framework. The discussion paper aims at gathering early stakeholder feedback to inform the response to the European Commission’s call for advice (CfA). To assess the impact of the possible changes discussed in the paper, the EBA also launched a data collection exercise on a voluntary basis.

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The European Securities and Markets Authority publishes final MiCA rules on conflict of interest of crypto assets providers (31.05.2024) – ESMA the final Report on the rules on conflicts of interests of crypto-asset service providers (CASP) under the Markets in Crypto Assets Regulation (MiCA). In the report ESMA sets out draft Regulatory Technical Standards on certain requirements in relation to conflicts of interest for crypto-asset service providers (CASPs) under MiCA, with a view to clarifying elements in relation to vertical integration of CASPs and to further align with the draft European Banking Authority (EBA) rules applicable to issuers of asset-referenced tokens (ARTs).

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The European Securities and Markets Authority publishes final MiCA rules on conflict of interest of crypto assets providers (31.05.2024) – ESMA the final Report on the rules on conflicts of interests of crypto-asset service providers (CASP) under the Markets in Crypto Assets Regulation (MiCA). In the report ESMA sets out draft Regulatory Technical Standards on certain requirements in relation to conflicts of interest for crypto-asset service providers (CASPs) under MiCA, with a view to clarifying elements in relation to vertical integration of CASPs and to further align with the draft European Banking Authority (EBA) rules applicable to issuers of asset-referenced tokens (ARTs).

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The European Securities and Markets Authority issues a Statement on firms using AI in investment services (30.05.2024) – ESMA issued a Statement offering guidance to firms using AI technologies in the provision of investment services to retail clients. In its statement, ESMA states that it expects these firms to adhere to relevant MiFID II requirements, especially concerning organizational aspects, business conduct, and the regulatory obligation to act in the client’s best interest. AI applications covered by MiFID II requirements include customer support, fraud detection, risk management, compliance, and aiding firms in delivering investment advice and portfolio management.

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The European Securities and Markets Authority ESMA reminds on rules for sharing information during pre-close calls (29.05.2024) – ESMA issued a Statement reminding issuers of the legislative framework applicable to “pre-close calls” and encouraging adherence to good practices to help maintain fair, orderly, and effective markets. Specifically, ESMA emphasized that any disclosure of inside information must comply with the Market Abuse Regulation (MAR). Therefore, issuers should only share non-inside information during these “pre-close calls”. To address potential concerns, ESMA recommends several good practices for conducting such calls.

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The European Securities and Markets Authority reports on the application of MiFID II marketing requirements (27.05.2024) – ESMA released a joint report on its 2023 Common Supervisory Action (CSA) and the accompanying Mystery Shopping Exercise (MSE) concerning marketing disclosure rules under MiFID II. In collaboration with National Competent Authorities (NCAs), ESMA’s findings indicate global compliance with MiFID II requirements for marketing communications, including advertisements. Further, although ESMA finds that investment firms have generally established procedures to ensure compliance during the development of marketing materials, it also reports that NCAs have expressed concerns about sustainability claims in marketing communications. The report highlights areas for improvement, including the necessity for clear identification of marketing communications and a balanced presentation of risks and benefits.

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The European Securities and Markets Authority consults on commodity derivatives under MiFID review (23.05.2024) – ESMA launched a public consultation on proposed changes to the rules for position management controls and position reporting. The changes come in the context of the review of the Market in Financial Instruments Directive (MiFID II) and aim to minimise the burden on reporting entities. ESMA is consulting on changes to the technical standards (RTS) on position management controls, the Implementing Technical Standards (ITS) on position reporting, and on position reporting in Commission Delegated Regulation (EU). ESMA will review all comments submitted by 21^st August 2024.

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COUNCIL OF THE EUROPEAN UNION (COUNCIL)

The Council adopts package of new anti-money-laundering rules (30.05.2024) – Council adopted a new package of anti-money laundering rules, known as the AML package. This AML package includes the new AML Regulation, the 6^th AML Directive, and a Regulation establishing the new Anti-Money Laundering Authority (AMLA). The package is further complemented by Regulation (EU) 2023/1113, concerning information accompanying transfers of funds and certain crypto-assets, which was adopted on 31^st May 2023. This is the final step of the adoption procedure. Therefore, the texts will now be published in the EU’s Official Journal and enter into force.

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The Council adopts new EU rules to increase banks’ resilience to economic shocks (30.05.2024) – Council adopted new rules updating the Capital Requirements Regulation (CRR) and the Capital Requirements Directive (CRD IV) to the new standards issued under the Basel III framework. The main feature of the reforms is the introduction of an “output floor”, which limits the risk of excessive reductions in banks’ capital requirements and makes these requirements more comparable. This is the last step of the adoption procedure. The amended CRR and CRD IV will now be published in the EU’s Official Journal and enter into force 20 days later.

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EU FUNDS

EUROPEAN INVESTMENT BANK (EIB)

Spain: pain: the European Investment Bank and Banco Sabadell sign guarantee agreement to facilitate up to 400 million euro in new financing for SMEs and mid-caps (05.06.2024) – The and Banco Sabadell have signed a guarantee agreement for up to 200 million euro as the first tranche of a total EIB-approved operation of up to 300 million euro. The arrangement will allow the Spanish bank to facilitate up to 400 million euro in new loans over the next two years to finance projects by small and medium-sized enterprises (SMEs) and mid-caps in Spain. The operation will promote private sector investment and support the financing needs of a key segment of the Spanish economy in terms of both growth and jobs.

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France: the European Investment Bank and Brittany region sign finance contract for upper secondary school construction and refurbishment (04.06.2024) – The European Investment Bank and the Brittany region have signed a 25-year, 190 million euro finance contract to help modernise educational facilities and adapt them to local demand, with a view to improving the quality of secondary-level education in the area. Indeed, this loan will help to finance the Brittany region’s upper secondary school plan. In particular, 116 schools in the region are set to benefit from infrastructure upgrades, improvements to energy efficiency and climate resilience, better accessibility, and new educational equipment.

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Spain: the European Investment Bank and CIE Automotive sign 36 million euro loan for research and development in advanced technologies for the European automotive sector (31.05.2024) – The European Investment Bank and Aena have signed a 160 million euro loan to finance upgrades to the passenger terminal at Palma de Mallorca International Airport. The investment to cover building upgrades and improvements to baggage management and fire prevention systems, terminal equipment and security and IT systems. Operation comes under EIB Transport Lending Policy, which prioritises investments in resilient, safe and sustainable critical transport.

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Greece: the European Investment Bank to support businesses and startups in life sciences, health, and sustainability with 200 million euro new equity financing (14.05.2024) – The European Investment Bank and CIE Automotive have signed a loan worth 36 million euro to finance the company’s research, development, and innovation activities, as well as their application in the manufacture of high value-added components for the automotive sector. The financing will also support CIE Automotive’s investments in process optimisation through digitalisation, and in the development of more sustainable manufacturing technology. The investments will take place in the company’s facilities in Spain, Germany, France, and Italy, some of which are located in cohesion regions.

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Finland: mid-caps get growth and investment boost from Finnvera and the European Investment Bank (30.05.2024) – The European Investment Bank will provide a 200 million euro guarantee to Finnvera, the national promotional bank and official export credit agency of Finland, to facilitate the financing of Finnish mid-caps. The programme aims to tackle barriers to accessing finance by sharing risks associated with economic uncertainties like inflation, high interest rates, limited external growth opportunities and unpredictable energy supplies. The EIB support will allow Finnvera to create a portfolio of new loans for a total amount of up to 400 million euro, increasing its lending capacity and offering companies access to financing on favourable terms, such as reduced interest rates and lower collateral requirements. The operation will help mobilise investments of approximately 560 million euro in the real economy

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Finland: the European Investment Bank signs 17 million euro loan to iPhone refurbisher Swappie (30.05.2024) – The European Investment Bank and Swappie, Europe’s largest iPhone refurbisher, have signed a loan agreement to back the high quality refurbishment of iPhones, extending the lifespan of the devices and enabling consumers to reduce their carbon footprint in support of a circular economy. The EIB will provide a five-year, 17 million euro loan to the innovative Finnish startup to support its investment in research and development and robotics aimed at making iPhone repairs quick and reliable. The deal will also allow Swappie to enhance its refurbishment and operational capabilities, while rolling out more products and expanding its international reach. This agreement is backed by the InvestEU programme, which aims to trigger more than 372 billion euro in additional investment between 2021 and 2027.

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Montenegro: the European Investment Bank Global to invest up to 76 million euro in reconstruction of Bar–Podgorica–Vrbnica railway line under Team Europe initiative (29.05.2024) – The European Investment Bank Global has signed a 75.5 million euro financial agreement for the reconstruction of a 167 km long railway section between Bar, Podgorica and Vrbnica. These infrastructural improvements along the extended Trans-European Transport Network (TEN-T) will improve rail capacity, efficiency and safety, benefiting over 1 million passengers a year and international freight traffic. The project will also promote a modal shift from road to rail, contributing to a more sustainable transport system in the country.

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The European Investment Bank Global invests 25 million euro in Amethis Fund III to promote sustainable growth of African businesses (29.05.2024) – The European Investment Bank’s Global arm has invested 25 million euro in Amethis Fund III, a pan-African fund providing private equity growth capital to medium-sized companies on the continent. Amethis Fund III will target companies supplying goods and services to low- and middle-income populations in Africa. The target sectors include healthcare, business services such as logistics and IT, manufacturing and distribution, including agribusiness and fast-moving consumer goods, non-banking financial services, and services related to infrastructure and energy.

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Ukraine: School in Pryvovchanske reopens after major overhaul supported by the European Investment Bank (28.05.2024) – The lyceum in the village of Pryvovchanske, Dnipropetrovsk Oblast, has opened its doors again after a major overhaul under the Ukraine Early Recovery Programme (UERP) financed by the European Investment Bank (EIB). This upgrade has increased the school’s capacity, with almost 200 students from the villages of Pryvovchanske and Malooleksandrivka expected to attend in the upcoming academic year. his is the second school that has reopened in Dnipropetrovsk Oblast this year as part of the 200 million euro EIB loan designed to help Ukrainian municipalities rebuild their social infrastructure.

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Italy: the European Investment Bank provides ETRA with 100 million euro to support the transition to a greener, more circular economy (28.05.2024) – The European Investment Bank and ETRA SpA - Società benefit have signed an agreement concerning 100 million euro of investment in improving recycling facilities and integrated water services in the Veneto region. Specifically, the main initiatives to be financed by the EIB’s investment include the restructuring and construction of waste treatment and water supply installations, the purchase of biomethane-fuelled vehicles and the expansion of water networks. The project will thus help to promote climate action and further the transition towards a more circular economy, which are key objectives of the European Green Deal.

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Czechia: the European Investment Bank backs improved wastewater treatment with CZK 1.3 billion loan for city of Brno (27.05.2024) – The European Investment Bank has signed a 53.2 million euro) loan agreement with Brněnské vodárny a kanalizace (BVK), the municipal water and wastewater company in the Czech city of Brno. The operation will upgrade the sewage sludge treatment facility of BVK’s Modřice wastewater plant, thus further improving environmental protection and public services in Czechia’s second biggest city.

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Spain: the European Investment Bank and Castilla y León regional government sign 120 million euro loan to finance public hospital and healthcare facility renovations in five regional provinces (27.05.2024) – The European Investment Bank has signed a 120 million euro loan with the regional government of Castilla y León to finance the renovation and expansion of a series of hospitals and public healthcare facilities in the Spanish region’s cities of Valladolid, Salamanca, Palencia, Soria and Aranda de Duero. The projects will include the construction of two primary healthcare centres affiliated with the Valladolid and Salamanca University Hospitals, the renovation and expansion of the Palencia Río Carrión Hospital, the second phase of construction of the Soria Santa Bárbara Hospital, and the construction of the new Aranda de Duero Hospital in the regional province of Burgos.

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Spain: the European Investment Bank and Castilla y León regional government sign 25 million euro loan to finance local SME and mid-cap projects focusing on the circular economy and job creation (24.05.2024) – The European Investment Bank (EIB) has signed a 25 million euro loan with the regional government of Castilla y León via the Institute for Business Competitiveness of Castilla y León (ICECyL by its Spanish acronym), a body under the auspices of the regional Ministry of the Economy and Finance, to back small and medium-sized enterprises (SMEs) and mid-caps in the Spanish region. The EIB loan will enable ICECyL to finance projects from this business segment (mostly in the Castilla y León region) focusing on boosting competitiveness, promoting regional circular economy policies, and creating and safeguarding jobs.

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Mauritania: Banque pour le Commerce et l’Industrie and the European Investment Bank partner up to fund SMEs, with EU support (23.05.2024) – Three months after signing a financing arrangement with the European Investment Bank (EIB), the Banque pour le Commerce et l’Industrie (BCI) has already granted MRU 280 million (6.5 million euro) in loans to five SMEs to support employment, entrepreneurship and access to finance for Mauritania’s women and youth. The loans were made in areas like health, clean energy and sustainable food systems. They are a tangible contribution to the Team Europe Initiatives of green transition and stronger human development in Mauritania, set by the European Commission for 2021-2027. The BCI will grant MRU 1 billion (€25 million) in loans to SMEs and mid-caps under the arrangement with the EIB, supporting around 3 000 jobs, especially for youth and women.

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Italy: the European Investment Bank and Cassa Depositi e Prestiti provide 215 million euro for new University of Milan campus (21.05.2024) – The European Investment Bank (EIB) and Cassa Depositi e Prestiti (CDP) have provided 215 million euro in financing, partly backed by InvestEU, to Academo Srl, a project company formed by Lendlease and the Equiter Infrastructure II fund (managed by Ersel AM) to which the University of Milan has awarded the contract to design, build and operate its science and technology campus in the Milano Innovation District (MIND). The goal is to support the creation of new teaching spaces for university students and researchers as part of a broader environmental sustainability-focused urban regeneration project in Milan. This financing is the final step in the operation planning phase coordinated by Lendlease, which involves a total investment of more than 450 million euro.

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Poland: the European Investment Bank backs first Polish satellite programme with loan to Bank Gospodarstwa Krajowego (20.05.2024) – The European Investment Bank (EIB) announced backing for the development and launch of two Earth observation satellites that will provide high-resolution imagery for civilian and defence applications in Poland. The EIB is lending 300 million euro to Bank Gospodarstwa Krajowego (BGK) for the project to support the European space industry with the latest technology in Low Earth Orbit (LEO) satellites. It comes after the EIB’s Board of Directors approved the EIB Group’s new Security and Defence Industry Action Plan which is intended to step up investments in the sector.

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EUROPEAN INVESTMENT FUND (EIF)

InvestEU: the European Investment Fund, 123 Investment Managers and Lendosphere announce a new sustainable debt fund. (27.05.2024) – The European Investment Fund (EIF), as lead investor, is backing the first closing of the 123 Transition Energétique 2 fund to the tune of 30 million euro. The fund combines financing via a marketplace lending platform with institutional investors' contributions.

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InvestEU: the European Investment Fund extends support to Europe’s cultural creative businesses and audiovisual sector (21.05.2024) – The European Investment Fund (EIF) guarantee agreements will facilitate more than 141 million euro of new financing for creative sectors via intermediaries from France, Germany, and Finland. These agreements are supported by the InvestEU programme, which aims to trigger more than 372 billion euro in additional investments over the period 2021-2027. They aim to remedy a market failure in the cultural and creative sectors (CCS) and to stimulate European audiovisual production by facilitating its financing.

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LIFE SCIENCES

COUNCIL OF THE EUROPEAN UNION (COUNCIL)

The Council signs off on measures to make the EU mercury-free (30.05.2024) – The Council adopted a regulation to completely ban the use of dental amalgams and to prohibit manufacturing, import and export of other mercury-added products. The updated rules aim to address the remaining use of mercury in the European Union in line with the EU´s zero pollution ambition. Current rules already ban the use of dental amalgam for treating teeth in children under 15 years old, and pregnant or breastfeeding women. The new rules will extend the prohibition to include everybody in the EU as of 1^st January 2025. Exceptions will apply when the use of dental amalgam is deemed strictly necessary by the dental practitioner to address specific medical needs of the patient. Exporting dental amalgam will be prohibited from 1^st January 2025; the ban on manufacturing and import in the EU will apply from 1^st July 2026. Six additional mercury-containing lamps will also be made subject to a manufacturing, import and export ban as from 31^st December 2025 and 31^st December 2026.

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The Council adopts new measures to help prevent shortages (30.05.2024) – The Council has adopted new rules updating the law on medical devices in order to help prevent shortages and ease the transition to greater transparency and access to information. The regulation adopted amends the legislation on medical devices, including in-vitro diagnostic medical devices (IVDs), by: (i) further extending the transition period for certain IVDs (ii) enabling a gradual roll-out of EUDAMED, the new electronic database (iii) requiring manufacturers to flag up potential shortages of critical medical devices and IVDs. The regulation adopted will enter into force following publication in the EU’s Official Journal.

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The Council adopts new rules on substances of human origin (27.05.2024) – The Council has adopted new rules aimed at improving the safety and quality of blood, tissues and cells used in healthcare and facilitating cross-border circulation of these substances in the EU. The regulation on substances of human origin (SoHO) will ensure better protection for donors and recipients, as well as for children born following medically assisted reproduction. The new rules aim to strengthen the existing legal framework while also increasing flexibility in order to keep up with scientific and technical developments. Under the new regulation, member states may choose to apply stricter measures to protect their citizens.

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EUROPEAN MEDICINES AGENCY (EMA)

Medical devices: new guidance for industry and notified bodies (21.05.2024) – A new revision of the guidance available to applicants, marketing authorization holders and notified bodies of medical devices has been published by the EMA. This question-and-answer document provides practical considerations on the implementation of the medical devices and in vitro diagnostic regulations for combinations of medicinal products and medical devices. Products that combine a medicinal product (or substance) and a medical device are regulated either under the pharmaceutical framework or the medical device framework, depending on their main mode of action. The revision is based on the experience gained since the implementation of the new regulations and actual cases encountered.

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DATA, IP AND PRIVACY

EUROPEAN COMMISSION (EC)

European Commission establishes AI Office to strengthen EU leadership in safe and trustworthy Artificial Intelligence (29.05.2024) – The Commission has unveiled the AI Office, established within the EC. The AI Office aims at enabling the future development, deployment and use of AI in a way that fosters societal and economic benefits and innovation, while mitigating risks. The Office will play a key role in the implementation of the AI Act, especially in relation to general-purpose AI models. It will also work to foster research and innovation in trustworthy AI and position the EU as a leader in international discussions.

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COUNCIL OF THE EUROPEAN UNION (COUNCIL)

Artificial intelligence (AI) act: the Council gives final green light to the first worldwide rules on AI (27.05.2024) – The Council finally approved a ground-breaking law aiming to harmonise rules on artificial intelligence, the so-called artificial intelligence act. The flagship legislation follows a ‘risk-based’ approach, which means the higher the risk to cause harm to society, the stricter the rules. It is the first of its kind in the world and can set a global standard for AI regulation. The new law aims to foster the development and uptake of safe and trustworthy AI systems across the EU’s single market by both private and public actors. At the same time, it aims to ensure respect of fundamental rights of EU citizens and stimulate investment and innovation on artificial intelligence in Europe. The AI act applies only to areas within EU law and provides exemptions such as for systems used exclusively for military and defence as well as for research purposes.

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CONSULTATIONS AND CALLS

EUROPEAN COMMISSION (EC)

The European Commission launches consultation on aviation and fitness check of EU airport legislation (06.06.2024) – The Commission is carrying out a fitness check of EU airport legislation to determine if it is still fit for purpose and delivering on its objectives. This fitness check will consider recent trends such as market consolidation, capacity challenges, labour shortages, increased competition from non-EU airlines/airports and the need to decarbonise. It will also assess the potential for simplification and burden reduction, especially should any inconsistencies or synergies be identified.

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The European Commission launches consultation on Heavy-duty vehicles – extending manufacturer reporting on CO2 emissions and fuel consumption (11.06.2024) – Under EU Regulation 2018/956, vehicle manufacturers are required to report on CO2 emissions from and fuel consumption of heavy-duty vehicles. This initiative amends the Annex to the Regulation to oblige manufacturers of certain medium and heavy lorries, buses, coaches and trailers to report on these vehicles from 2024.

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The European Commission launches consultation on Carbon Offsetting & Reduction Scheme for International Aviation (CORSIA) – rules for calculating offsetting requirements (13.06.2024) – Directive 2003/87 implements the Carbon Offsetting and Reduction Scheme for International Aviation ('CORSIA') under the International Civil Aviation Organization (ICAO). Article 12(8) of this Directive requires the Commission to lay down detailed rules to calculate offsetting requirements under CORSIA for emissions up to 2026. The rules rely on the standards and recommended practices of CORSIA, as interpreted by the Directive.

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The European Commission launches consultation on Cooperation on direct taxation (07.07.2024) – Directive 2011/16/EU (directive on administrative cooperation - DAC) establishes a system for secure administrative cooperation between the national tax authorities of EU countries and lays down rules and procedures for exchanging information. This evaluation will assess the effectiveness, efficiency and continued relevance of the DAC and its amendments (DAC2 to DAC6), as well as its coherence with other policy initiatives & priorities and the EU added value.

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The European Commission launches consultation on energy labelling requirements for computers (18.07.2024) The Regulation aims to help consumers choose the most energy-efficient computers by using a scale from A (most efficient) to G (least efficient). The energy label will also provide other useful information on durability and reparability. The consultation covers both the ecodesign and energy labelling initiatives. This consultation covers both the Eco-design and Energy labelling interlinked initiatives. You just need to provide feedback once.

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The European Commission launches consultation on Trade in seal products – fitness check of EU rules (07.08.2024) – Seals are hunted in parts of the world for commercial, subsistence and cultural reasons. In 1983, following people's concerns about animal welfare, the EU banned the import of certain seal pup skins. In 2009, a general ban on placing seal products on the EU market was introduced, with two exceptions. This initiative will assess if the rules in place remain fit for purpose, focusing on their socio-economic impact and their impact on seal populations.

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