On 12 August, Regulation (EU) 2024/2019 of the European Parliament and of the Council of 11 April 2024 (the “Regulation”) was published in the Official Journal of the European Union, introducing several substantive and/or procedural amendments to Protocol no. 3 on the Statute of the Court of Justice of the European Union (the “Statute” and “Court of Justice”).

Below is a summary of the amendments introduced by the Regulation.

1. Granting of preliminary ruling jurisdiction in specific matters to the General Court

The Regulation introduces Article 50-ter conferring jurisdiction on the General Court of the European Union (the “General Court”) to hear and make references for a preliminary ruling under Article 267 of the TFEU falling within one or more of the following matters:

1. the common system of value added tax;
2. excise duties;
3. the Customs Code;
4. the tariff classification of goods in the Combined Nomenclature;
5. compensation and assistance to passengers in the event of denied boarding or delay or cancellation of transport services; and
6. the greenhouse gas emission allowance trading scheme.

Regarding points (a) to (d), Recital 9 of the Regulation clarifies that “Those area cover, at the time of the adoption of this Regulation, matters such as the determination of the tax base for the assessment of value added tax or the conditions for exemption from payment of that tax; the interpretation of the general arrangements for excise duty and of the framework relating to duties on alcohol, alcoholic beverages, tobacco, energy products and electricity; the elements on the basis of which import or export duties are applied in the context of trade in goods, such as the Common Customs Tariff, the origin and customs value of goods; import and export procedures, including the incurrence, determination and extinction of a customs debt; specific customs arrangements; the system of relief from customs duties as well as the interpretation of specific tariff headings and the criteria for the classification of certain goods in the Combined Nomenclature laid down in Annex I to Council Regulation (EEC) No. 2658/87”.

With reference to point (e), recital 10 of the Regulation clarifies that these matters “cover matters that are at the time of the adoption of this Regulation regulated by Regulations (EC) No. 261/2004 [air transport], (EU) No. 1177/2010 [maritime transport], (EU) No. 181/2011 [bus and coach transport] and (EU) 2021/782 [rail transport] of the European Parliament and of the Council”.

With reference to point (f), recital 10 of the Regulation clarifies that this scheme “at the time of the adoption of this Regulation is regulated by Directive 2003/87/EC of the European Parliament and of the Council and by the acts adopted on the basis of that Directive”.

Notwithstanding the foregoing, pursuant to paragraph 2 of the new Article 50-ter, the Court of Justice will retain jurisdiction to hear and make references for preliminary rulings raising “independent questions concerning the interpretation of primary law, public international law, general principles of law or the Charter of Fundamental Rights of the European Union”.

Furthermore, under paragraph 3 of the new provision, references for preliminary rulings under Article 267 must be made to the Court of Justice. The Court – “as soon as possible” and in accordance with the procedures laid down in its Rules of Procedure – will then determine whether the request falls exclusively within the matters under the General Court’s jurisdiction and, if so, will transfer the case to the General Court.

• Participation in the proceedings by the European Parliament, the Council and the European Central Bank

The Regulation amends Article 23 of the Statute to stipulate that, where a matter is referred for a preliminary ruling, the decision of the national court or tribunal to stay the proceedings must be notified by the Registry of the Court. This notification must be made not only to the parties involved, the Member States, the Commission and the Union institution or body or entity that adopted the act whose validity or interpretation is being challenged, as already provided for in Article 23 – but also to the European Parliament, the Council and the European Central Bank.

Under the newly added paragraph 2, if the European Parliament, the Council and the European Central Bank consider that they have “a particular interest in the questions raised by the reference for a preliminary ruling”, they may submit statements of case or written observations within two months of receiving the notification.

Under the new paragraph 3, pleadings or written observations submitted by an interested party will be published on the website of the Court of Justice “within a reasonable time” after the case is closed, unless that interested party objects to the publication of its pleadings or written observations.

• Election of Advocates General to handle references for preliminary rulings assigned to the General Court

The Regulation introduce Article 49-bis of the Statute, establishing that, in the handling of references for a preliminary ruling, the General Court shall be assisted by one or more Advocates General, elected for a term of 3 years – with the possibility of one renewal - from among the Judges of the General Court.

• Establishment of the Intermediate Chamber of the General Court

The Regulation amends Article 50 of the Statute to introduce, with reference to the composition of the General Court, an intermediate chamber positioned between the chambers composed of five judges and the Grand Chamber.

According to the wording of the new Article 50, the General Court may convene in: (a) chambers of three or five judges; (b) an intermediate chamber; and (c) the grand chamber. In addition, consistent with the existing provisions, the General Court may in some cases make decisions by a single judge.

The new provision provides that, in proceedings relating to a matter referred for a preliminary ruling, the General Court will convene in an intermediate chamber at the request of a Member State or an institution of the Union involved in the case.

• Referral of cases to the Court of Justice or the General Court for preliminary rulings

The Regulation amend Article 50 of the Statute to establish, in line with the provisions regarding the handling of cases:

• if the General Court determines that it lacks jurisdiction to hear a reference for a preliminary ruling, it shall refer the case to the Court of Justice;
• if the Court of Justice finds that it lacks jurisdiction to hear a reference for a preliminary ruling, it must refer the case back to the General Court, which cannot refuse jurisdiction in such instances.

In connection with the above-mentioned referral mechanism, recital 18 of the Rules of Procedure further clarifies that “the General Court may, pursuant to Article 256(3), second subparagraph, TFEU, refer to the Court of Justice a case that falls within its jurisdiction but requires a decision of principle likely to affect the unity or consistency of Union law”.

• Expansion of the procedure for the prior admission of appeals

The Regulation revises Article 58a to broaden the scope of the procedure for prior admission of appeals by the Court of Justice. This expansion includes:

• appeals against a decision of the General Court regarding the decision of an independent Board of Appeals of a body or entity of the Union which, as of 1 May 2019, had such a Board of Appeals but was not expressly covered by the previous version of Article 58a.

These Union bodies/entities include: (a) the European Union Agency for the Cooperation of Energy Regulators; (b) the Single Resolution Board; (c) the European Banking Authority; (d) the European Securities and Markets Authority; (e) the European Insurance and Occupational Pensions Authority; and (f) the European Union Railway Agency; and

• litigation concerning the enforcement of contracts containing an arbitration clause.

• Introduction of the consultation procedure for applications or proposals to amend the Statutes

The Regulation introduces Article 62-quinquies which mandates that before submitting an application or a proposal to amend the Statute, the Court of Justice or, where appropriate, the Commission must first conduct “extensive consultations”.

*

The Regulation will enter into force on 1 September 2024 and includes a transitional arrangement as follows:

- any references for preliminary rulings pending before the Court of Justice on 1 October 2024 will in any event continue to be handled by the Court of Justice itself;

- appeals concerning:

(i) decisions of the General Court relating to a decision of a Board of Appeals of one of the bodies/entities of the Union listed in points (a) to (e) of paragraph 6 above; and

(ii) decisions concerning the enforcement of a contract containing an arbitration clause

that are before the Court of Justice on 1 September 2024 shall not be subject to the aforementioned procedure of prior admission of appeals.

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
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• Data, IP and Privacy
• Consultions and Calls

EUROPEAN COMMISSION (EC)

Lithuania: the European Commission approves 122 million euro State aid measure to support AB Achema decarbonise its fertiliser production (12.07.2024) – The European Commission has approved, under EU State aid rules, a 122 million euro Lithuanian measure to support AB Achema in decarbonising its fertiliser production processes. The measure will contribute to the achievement of the EU Hydrogen Strategy, the European Green Deal and the Green Deal Industrial Plan targets, while helping to end dependence on Russian fossil fuels in line with the REPowerEU Plan. The aid will take form of a direct grant to support the installation a 171 MW alkaline electrolyser at AB Achema's production site in the Kaunas region of Lithuania. Currently, AB Achema uses natural gas-based hydrogen to produce ammonia, a key input in the production of fertilisers. The electrolyser will produce renewable and low-carbon hydrogen that will be used to produce ammonia. The hydrogen produced by the electrolyser will replace 30% of the hydrogen currently produced from natural gas, thereby reducing carbon dioxide (‘CO2') emissions and demand for natural gas. The electrolyser is envisaged to start operating in 2026. Once completed, the project is expected to avoid the release of at least 5.8 million tonnes of CO2 over the 19 years of expected operation of the electrolyser. AB Achema committed to actively share the experience and technical know-how gained as a result of the project through publications and conferences to contribute to the deployment of clean technologies in the fertilisers industry.

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The European Commission accepts commitments by Apple opening access to 'tap and go' technology on iPhones (11.07.2024) – The European Commission has made commitments offered by Apple legally binding under EU antitrust rules. The commitments address the Commission's competition concerns relating to Apple's refusal to grant rivals access to a standard technology used for contactless payments with iPhones in stores. Apple Pay is Apple's own mobile wallet used to allow iPhone users to pay with their devices in stores and online. Apple's iPhones run exclusively on Apple's operating system ‘iOS'. Apple controls every aspect of its ecosystem, including access conditions for mobile wallet developers. The Commission preliminarily found that Apple has significant market power in the market for smart mobile devices and a dominant position on the in-store mobile wallet market on iOS. Apple Pay is the only mobile wallet that may access the NFC hardware and software (‘NFC input') on iOS to make payments in stores, as Apple does not make it available to third-party mobile wallet developers. In its investigation, the Commission preliminarily concluded that Apple abused its dominant position by refusing to supply the NFC input on iOS to competing mobile wallet developers, while reserving such access only to Apple Pay. The Commission's preliminary view is that Apple's refusal excluded Apple Pay's rivals from the market and led to less innovation and choice for iPhone mobile wallets users. Such behaviour may breach Article 102 of the Treaty on the Functioning of the European Union (‘TFEU'), which prohibits the abuse of a dominant position.

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Slovakia: the European Commission opens in-depth State aid investigation into support to NAJPI for setting up a glass sand extraction sit (09.07.2024) – The European Commission has opened an in-depth investigation to assess whether public support granted to the Slovak company NAJPI a.s. (‘NAJPI') for setting up a glass sand extraction site is in line with EU State aid rules. The Commission will assess in particular whether, at the time of granting of aid, NAJPI could be qualified as an SME. The Commission will also assess whether, at the time of granting of aid, the conditions laid down in the GBER, in particular, concerning economic difficulties were fulfilled, as in such circumstances NAJPI would not qualify for regional aid. Should the Commission conclude that the Slovak support could not benefit from an exemption based on the GBER, it would assess whether the conditions of the 2007-2013 RAG were met.

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Germany: the European Commission opens in-depth State aid investigation into 6 billion euro support measure to recapitalise Lufthansa in the context of coronavirus pandemic (08.07.2024) – The European Commission has opened an in-depth investigation to assess whether a German recapitalisation measure of 6 billion euro in favour of Deutsche Lufthansa AG (“Lufthansa”) is in line with EU State aid rules. The German aid measure consisted of an equity component of 306 million euro and two hybrid instrument components, namely, Silent Participation I of 4.7 billion euro with features of a non-convertible equity instrument, and Silent Participation II 1 billion euro with features of a convertible debt instrument. The Commission found the measure to be compatible with EU State aid rules, but the General Court annulled the Commission's decision. The Commission will now carry out a more in-depth investigation to assess further the recapitalisation measure. In that regard, the Commission will focus on the following points: (i)the eligibility of Lufthansa for the aid; (ii) the need for a so-called “step-up” or similar mechanism to incentivise the exit of the State from the capital;(iii) the price of the shares at the time of a potential conversion of Silent Participation II into equity; (iv) the existence of Significant Market Power at airports other than Frankfurt and Munich, at least at Dusseldorf and Vienna airports;(v) certain aspects of the structural commitments imposed on Lufthansa.

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Italy: the European Commission leers Italian public support for Caremar ferry service (08.07.2024) – The European Commission has concluded that the public service compensation granted from 01.01.2009 to 31-07.2012 to Caremar SpA (‘Caremar') for the operation of ferry services in Italy is in line with EU State aid rules. The same applies to the compensation granted to Caremar under the public service contract concluded for the period between 16.07.2015 and 15.07.2024, after Caremar was acquired by the temporary association of companies SNAV/Rifim Srl (‘SNAV/Rifim'). Following a series of complaints, the Commission launched in October 2011 an in-depth investigation into several public support measures in favour of companies of the former Tirrenia Group and their respective acquirers. In November 2012, the Commission extended the scope of this investigation to include additional measures.

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France: the European Commission approves 10.82 billion euro State aid scheme to support offshore wind energy to foster the transition to a net-zero economy (03.07.2024) – The European Commission has approved a 10.82 billion euro French scheme to support the deployment of offshore wind energy, which will help foster the transition towards a net-zero economy. In particular, the measure will support the construction and operation of two bottom-fixed offshore wind farms: one in the South Atlantic zone and another in the Centre Manche 2 zone in Normandy. The South Atlantic wind farm is expected to have a capacity of 1000 to 1200 MW and to generate at least 3,9 TWh of renewable electricity per year. The Normandy wind farm is expected to have a capacity of 1400 to 1600 MW and to generate at least 6,1 TWh of renewable electricity per year. The aid will be granted on the basis of transparent and non-discriminatory bidding processes, which will be organised to select one beneficiary per offshore zone. Under this scheme, the aid will take the form of a monthly variable premium under a two-way contract for difference (‘CfD'), which will be calculated by comparing a reference price, determined in the tender offer of the beneficiary (‘pay as bid'), to the market price for electricity.

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The European Commission clears proposed acquisition of stake in ITA Airways by Lufthansa, subject to conditions (03.07.2024) – The European Commission has approved, under the EU Merger Regulation, the proposed acquisition of joint control of ITA Airways (‘ITA') by Deutsche Lufthansa AG (‘Lufthansa') and the Italian Ministry of Economy and Finance (‘MEF'). The approval is conditional upon full compliance with the remedies offered by Lufthansa and the MEF. Pursuant to the commitments proposed, Lufthansa and the MEF can only implement the transaction following the Commission's approval of suitable remedy takers for each of the short-haul, long-haul and Milan Linate commitments. The Commission will assess the suitability of remedy takers in the context of a separate buyer approval procedure. These commitments fully address the competition concerns identified by the Commission. Therefore, the Commission concluded that the transaction, as modified by the commitments, would no longer raise competition concerns. The decision is conditional upon full compliance with the commitments. Under supervision of the Commission, an independent trustee will monitor their implementation.

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Sweden: the European Commission approves 3 billion euro State aid scheme to support the roll-out of biogenic carbon dioxide capture and storage (02.07.2024) – The European Commission has approved, under EU State aid rules, a 3 billion euro Swedish scheme to support carbon capture and storage (‘CCS') aimed at reducing carbon dioxide (‘CO2') released during the combustion or processing of biomass (‘biogenic CO2'). The measure will contribute to the achievement of Sweden's climate targets and the EU's strategic objectives under the European Green Deal, in particular the 2050 climate neutrality goal. Under the scheme, the aid will be awarded through a competitive bidding process, with the first auction expected in 2024. Auctions will be open to companies that (i) carry out an activity in Sweden, emitting biogenic CO2, and (ii) implement projects with a capacity to capture and store at least 50,000 tonnes of biogenic CO2 per year. Under 15-year long contracts, beneficiaries will receive a grant per tonne of biogenic CO2 that is permanently stored. The aid received will be adjusted taking into account possible revenues that might stem from the projects (e.g., thanks to voluntary carbon removal certificates), as well as other public support received for the same project. The scheme will run until 31.12.2028.

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Bulgaria: the European Commission approves 25.51 million euro restructuring State aid for Bulgarian Posts (02.07.2024) – The European Commission has approved, under EU State aid rules, Bulgaria's plans to grant postal operator Bulgarian Posts restructuring aid for up to 25.51 million euro. The measure will enable the company to restore its long-term viability while minimising competition distortions. The restructuring plan sets out a package of measures for streamlining Bulgarian Post's operations, optimising its network and reducing costs. In parallel, Bulgarian Posts will develop or provide services such as telemedicine or administration through its ubiquitous network on behalf of other public entities, bringing such services closer to citizens in remote areas not well served.

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The European Commission approves 1.3 billion euro restructuring State aid for airline SAS (28.06.2024) – The European Commission has approved, under EU State aid rules, Denmark and Sweden's plans to grant Scandinavian Airlines System AB (‘SAS') restructuring aid for up to 1.3 billion euro. The measure will enable the company to restore its long-term viability while minimising competition distortions. The plan sets out a package of measures for streamlining SAS' fleet, optimising its network, reducing costs, financial burdens and increasing revenues. The plan, which is supported with new aid from Sweden and Denmark through various instruments and different amounts, is necessary to make SAS viable again, following the slower than expected recovery of the air travel demand since the outbreak of the coronavirus pandemic and the adverse effects of Russia's invasion of Ukraine.

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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 COMMISSION (EC)

The European Commission launches consultation on Trade in e-waste & amendments to the Basel Convention annexes (03.07.2024) – The fifteenth Conference of the Parties to the Basel Convention amended the Basel Convention's Annexes II, III and VIII to bring all imports and exports of electrical and electronic waste under the scope of that Convention. The amendments will enter into force from 01.01.2025 and will apply to all Parties to the Convention, including the EU and its Member States. This initiative incorporates these changes into EU law (EU Waste Shipment Regulation), which is due for publication in April 2024.

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The European Commission launches consultation on Tariff quotas – amended rules on reference quantity requirement (03.07.2024) – Regulation (EU) 2020/760 lays down rules for EU importers to apply for import licences. Importers can apply for licenses for up to the average annual quantity of products with the same origin released for free circulation in the EU in the past 2 years. This initiative adjusts the rules on reference quantity to avoid any risk of market distortions posed by recent market developments in some sensitive sectors.

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The European Commission launches EU environmental law – 2025 implementation review (05.07.2024) – The environmental implementation review is a regular cycle of analysis, dialogue and collaboration to improve the implementation of EU environmental policy and law in EU countries. This initiative identifies the main implementation gaps in EU countries and addresses their root causes, proposes solutions, provides technical assistance and facilitates the exchange of good practices, raises awareness and makes it easier for everyone involved to find information on implementing these policies.

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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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The European Commission launches a call for evidence on Energy efficiency – Ecodesign requirements for air heating and cooling products (review) (31.08.2024)- In 2016, an Ecodesign measure on air heating products, cooling products, high-temperature process chillers and fan coil units set minimum energy-efficiency requirements, taking effect in 2018 and in 2021. The EU is now reviewing the Ecodesign measure considering technological progress and circular-economy objectives. 

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The European Commission launches consultation on Commercial vehicles – weights and dimensions (evaluation) (05.09.2024)- Under current EU rules, commercial vehicles in the EU carrying goods or passengers by road must meet the allowable weights and dimensions. This initiative will evaluate if the rules: ensure the smooth functioning of the single market improve the environmental performance of these vehicles while safeguarding road safety. Based on these findings, the Commission will assess options to address any identified regulatory and market failures. 

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The European Commission launches consultation on EU Maritime, Fisheries and Aquaculture Fund (“EMFAF”) 2021-2027 – midterm evaluation (13.09.2024) - This midterm evaluation assesses the state of implementation of the EMFAF for the 2021-2027 programming period. It examines the Fund’s effectiveness and efficiency, coherence with other policies relevance EU added value.

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The European Commission launches consultation on Taking car rentals into other EU countries (23.09.2024)- National rules for using car rentals in other countries make car hire expensive and inefficient for the EU population. Rental companies also suffer, and inefficient rules for returning cars may lead to unnecessary greenhouse gas emissions. This initiative aims to make it easier to take private car rentals into other EU countries by setting minimum EU rules on registration, cross-border use and returning cars.

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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 INVESTMENT BANK (EIB)

Serbia: European Investment Bank Global provide 96 million euro to modernise electricity distribution network and improve waterborne transport (18.07.2024) – The European Investment Bank Vice-President has expressed unwavering support for sustainable connectivity and the green and digital transition in Serbia. The EU bank has signed an 80 million euro loan to finance energy efficiency improvements to the electricity distribution system through the installation of smart meters. The Bank has also signed a 16 million euro grant under the Western Balkans Investment Framework to support investments in the inland waterway network. EU funding for these two investments will help Serbia create modern and resilient electricity and transport infrastructure.

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The European Investment Bank Board of Directors backs 8.4 billion euro of new financing for housing, education, energy, water and business investment (17.07.2024) – The Board of Directors of the European Investment Bank (EIB) approved 8.4 billion euro of new financing to build homes and schools, harness renewable energy, upgrade water, transport and communications networks and bolster business innovation and growth in Europe and around the world. In particular: (i) 3.4 billion euro for housing and education; (ii) 2.2 billion euro for clean energy and water; (iii) 1.7 billion euro sustainable transport and better communications; (iv) 1.1 billion euro for corporate innovation and business financing.

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European Investment Bank ‘s new agreement signed to provide additional 2 billion euro to back the reconstruction of areas hit by central Italian earthquake (16.07.2024) – The European Investment Bank (EIB) is further bolstering its commitment to back reconstruction and safety work in the central Italian regions hit by the 2016 and 2017 earthquakes, announcing the approval of a new 2 billion euro financing package. Total EIB support for earthquake-affected regions in central Italy has reached 4.75 billion euro – almost 15% of the 27 billion euro estimated by the government to be needed for reconstruction. The financing package approved by the EIB Board of Directors will be split into a 1 billion euro direct loan to the Ministry of Economy and Finance for the reconstruction and repair of public infrastructure and another 1 billion euro channelled into the banking system via Cassa Depositi e Prestiti to back the reconstruction of private, residential, and industrial property.

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France: European Investment Bank and La Banque Postale sign new partnership including a 600 million euro refinancing package (16.07.2024) – The European Investment Bank La Banque Postale have renewed their cooperation for a further three years, signing a new 600 million euro refinancing package. The signature of these financing packages makes it possible to target specific markets or elements. They are aimed in particular at asset and project financing and the creation of special purpose vehicles, unlocking long-term financing (over 20 years) with attractive interest rates. La Banque Postale has three years to allocate the funds.

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France: European Investment Bank lends 90 million euro for sustainable expansion of the Port of Livorno (15.07.2024) – The European Investment Bank has signed a 90 million euro agreement for sustainable expansion of the Port of Livorno The operations concern the construction of the Darsena Europa container terminal. With current financing totalling more than 1.5 billion euro, the EIB confirms its position as the main financer of Italian port authorities.

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European Investment Bank: group cohesion finance reaches record high, bringing opportunity where talent is (15.07.2024) – The European Investment Bank (EIB) Group exceeded its targets for cohesion financing across the EU in 2023, supporting projects to mitigate regional disparities. The third annual report on “EIB Group activities in EU cohesion regions” highlights how targeted support unlocks regional potential and has a direct impact on improving people’s lives. It also underlines that regional convergence across the EU requires more social investments and connectivity.

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European Investment Bank invests 490 million euro with ICF to finance the construction of affordable and energy-efficient homes in Catalonia (15.07.2024) – The European Investment Bank (EIB) and Institut Català de Finances (ICF) have signed a 163 million euro loan to finance the construction of affordable rental housing with high energy efficiency standards in Catalonia, Spain. This is the first tranche of a total loan of 490 million euro backed by the European Union’s InvestEU programme. The investment is expected to finance the construction of more than 4 300 social rental housing units benefiting over 10 000 people, thereby contributing to social inclusion and urban regeneration.

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European Investment Bank supports ZF in developing advanced braking and steering for cars (15.07.2024) – The European Investment Bank (EIB) is providing a promotional loan of 425 million euro to German automotive supplier ZF Friedrichshafen AG. The funds will enable ZF to invest a total of 1.3 billion euro in research and development of innovative technologies for braking and steering systems, actively shaping the switch to software-defined vehicles. With such new technologies, ZF will be able to remain competitive as the mobility sector moves towards highly automated driving. The company is already pioneering the development and industrialisation of modern chassis systems.

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Luxembourg: European Investment Bank Climate Finance Platform supports BlueOrchard’s climate insurance equity fund with the backing of the government of Luxembourg (12.07.2024) – The Luxembourg-EIB Climate Finance Platform (LCFP) will provide 5 million euro for impact investor BlueOrchard's innovative 100 million dollars climate insurance fund, with the backing of the government of Luxembourg. The LCFP seeks to catalyse private and public sector investment into high-impact companies in emerging markets involved in insuring climate change mitigation and adaptation projects, including projects addressing losses and damages caused by climate change.

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Forestry company Stora Enso to offer sustainable food and personal care packaging with 435 million euro European Investment Bank loan (11.07.2024) – The European Investment Bank (EIB) is extending a 435 million euro credit to forestry company Stora Enso so it can produce greener packaging for foods and personal care products. The loan is for a major upgrade of Stora Enso’s manufacturing site in Oulu, where the company already invested 1 billion euro in reusable, fiber-based, and recyclable packaging production for consumer goods.

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European Investment Bank and Poste Italiane sign 450 million euro agreement to promote digitalisation, service automation, and energy efficiency (11.07.2024) – This financing will enable Poste Italiane to double its daily automated parcel-handling capacity by opening new sorting centres. This is the tenth agreement signed since the EIB began working with Poste Italiane around 25 years ago, with total lending to the company reaching almost 3.3 billion euro.

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Ukraine: EU bank helps improve water supply for war-torn Bucha (10.07.2024) – Around 9 000 residents now have access to quality drinking water thanks to the renovated water supply facility. Damaged by the Russian invasion, the facility has now been renovated and equipped with an iron removal station that will ensure clean, safe drinking water for the population. This renovation was made possible through the city’s participation in the Ukraine Recovery Programme, a 340 million euro European Investment Bank loan facility helping Ukrainian municipalities rebuild their social infrastructure.

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European Investment Bank and Banca Sella provide 200 million euro to facilitate lending to businesses (09.07.2024) – The European Investment Bank (EIB) and Banca Sella have signed a 100 million euro financing agreement to support investments and the working capital and liquidity needs of small and medium businesses (SMEs) and mid-caps, focusing in particular on product and process innovation and projects in cohesion regions. Underpinning its support for local businesses, Banca Sella will provide an additional 100 million euro to what has been provided for under the agreement with the EIB, increasing the funds made available to small businesses and mid-caps to 200 million euro.

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Europeans over 30 understand climate change better than younger generations according the European Investment Bank survey (08.07.2024) – To assess the public’s understanding of climate change, the sixth edition of the European Investment Bank Climate Survey focuses on people’s knowledge of climate change in three key areas: definitions and causes, consequences, and solutions. Participants answered 12 questions and were ranked on a scale of 0 to 10, with 10 indicating the highest level of knowledge. With over 30000 respondents across 35 countries, including the EU Member States, the United Kingdom, the United States, China, Japan, India and Canada, the EIB Climate Survey provides valuable insights into people’s overall understanding of climate change. Details about the findings in every country have been published by the European Investment Bank on its website.

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France: European Investment Bank signs 90 million euro finance contract to reopen Nancy-Contrexéville regional railway line (05.07.2024) – The European Investment Bank announces the signature of a 90 million euro loan agreement with Nova 14, a company dedicated to the renovation, operation and maintenance of the Nancy-Contrexéville regional railway line, which has been closed since 2016. The project involves three and a half years of renovation work and the introduction of 14 return trips a day from 2028, with a 55% increase in passenger numbers. The reopening of this 75 km line will help to open up the rural areas of western Vosges and southern meurthe-et-mosellan, and contribute to the development of sustainable, low-carbon transport in the Grand Est region.

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Greece: Athens to get more climate-resilient water network under EIB advisory agreement with EYDAP (05.07.2024) – The European Investment Bank will provide advisory services to Athens Water Supply and Sewerage Company (EYDAP) in Greece to support the company’s 2 billion euro, 10-year investment programme to ensure the Greek capital has a more resilient water supply. Under the agreement, European Investment Bank Advisory will help EYDAP manage climate risks such as water scarcity, droughts, and heatwaves as it serves a population of 4.4 million and operates a 14,500-kilometre network of pipelines.

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Belgium: the European Investment Bank offers medtech Nyxoah 37.5 million euro in venture-debt financing to develop innovative solutions to treat obstructive sleep apnea. (03.07.2024) – The European Investment Bank is providing venture debt financing to Belgian medical-technology company Nyxoah 37.5 million euro to develop treatments against obstructive sleep apnea. This transaction aligns with the EIB’s priority objective to boost research and technological innovation, in line with the implementation of EU policies.

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Poland: the European Investment Bank Group inaugurates digital hub in Warsaw (02.07.2024) – The European Investment Bank Group inaugurated an IT Centre of Excellence (CoE) in Warsaw to expand the group’s cloud, cybersecurity and other digital capabilities. The CoE will improve the EIB Group’s global activities through new expertise, greater innovation and wider collaboration.

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Italy: the European Investment Bank offers 100 million euro to Snam to support energy efficiency (02.07.2024) – The European Investment Bank and Snam have signed a financing agreement for 100 million euro to support energy improvement projects in public buildings and energy efficiency measures for industrial activities. The framework financing agreement can be used in several tranches over three years. Each tranche will have a maximum total tenor of 15 years. These projects will help to improve the energy efficiency of more than 400 public and private buildings in Italy and produce clean energy, with a total capacity of around 24 MW after the installation of solar panels. According to EIB estimates, these initiatives will help to produce renewable energy equal to the annual energy consumption of more than 10,000 Italian households and generate yearly energy savings of 84 GWh.

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Spain: European Investment Bank and EMT Madrid sign 50 million euro loan to expand zero-emissions urban bus fleet (02.07.2024) – The European Investment Bank (and Madrid's Empresa Municipal de Transportes (EMT) have signed a 50 million euro loan to finance the expansion of EMT's zero-emissions bus fleet, boosting support for sustainable urban public transport. The project includes the purchase of 250 electric buses and 10 hydrogen buses to replace the vehicles that have been in service in Madrid the longest, and are nearing the end of their useful life. With EIB support, EMT will also acquire charging infrastructure to power the electric vehicles added to the city fleet. The financing will pay to equip one of its operations centres with this technology, located in Madrid’s Sanchinarro district.

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The European Investment kicks off H2 2024 funding season with a new seven-year USD Global Climate Awareness Bond (CAB) (02.07.2024) – The European Investment Bank priced a new USD 4billion seven-year Global CAB benchmark due October 10, 2031. The bond pays a semi-annual coupon of 4.375% and has an issue price of 99.277%, providing a spread of 11.03bps over the 4.250% UST due 31.06.2031. The transaction is EIB’s fifth USD benchmark of 2024 and first USD Global Climate Awareness Bond of the year. Including this transaction, the EIB has raised EUR 46.7bn equivalent, or about 78% of the announced 60billion euro funding programme.

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Croatia: capital Zagreb to get vital infrastructure upgrades with 207 million euro European Investment Bank loan (01.07.2024) – The European Investment Bank (EIB) is extending a 207 million euro credit to the City of Zagreb in Croatia for infrastructure upgrades critical for the Croatian capital’s sustainable development. The financing marks the EIB’s first loan signature with the City of Zagreb. The credit is the initial tranche of a 395 million euro EIB framework loan to support the city’s development in the next five years.

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Portugal: European Investment Bank and Banco BPI mobilise 300 million euro to support SMEs and sustainable projects (01.07.2024) – The European Investment Bank (EIB) has signed a loan agreement for 300 million euro with Banco BPI. This operation aims to finance small and medium-sized enterprises (SMEs) and mid-caps, and public sector entities in Portugal, with a focus on climate action and environmental sustainability projects. By facilitating access to credit, this loan is essential for promoting and accelerating private sector investments, which are important for growth and employment in the Portuguese economy. The operation will also contribute to cohesion regions, helping to reduce regional disparities.

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Austria: voestalpine to receive 300 million euro European Investment Bank loan for research and development of green steel production (01.07.2024) – The European Investment Bank (EIB) is providing a loan of 300 million euro to voestalpine AG, Europe’s third largest steelmaker. The financing will be used for the company’s research and development (R&D) programme over a period of four years, with the goal to optimise manufacturing processes, increase energy and raw material efficiency, and extend product life. Overall, voestalpine aims to drastically reduce its environmental and carbon footprint by 2030 and to achieve carbon neutrality of its production by 2050.

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Cezchia: e -grocery business Rohlik gets 90 million euro European Investment Bank loan for growth (28.06.2024) – The European Investment Bank (EIB) is lending 90 million euro to Rohlik, a leading Czech e-grocery business that operates across central and eastern Europe, to bolster the company’s digital advances and growth prospects. Rohlik plans to use the EIB credit to deploy advanced digital technologies and expand into new markets across Europe. The company will benefit from a guarantee under the InvestEU programme that supports research, development, innovation, and scaling-up of digital technologies and services, in particular through artificial intelligence, robotics and automation.

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Romania: Banca Transilvania signs its first synthetic securitisation, supporting new lending to SMEs and mid-caps (27.06.2024) – The European Investment Bank Group (EIB Group), comprising the European Investment Bank (EIB) and the European Investment Fund

(EIF), has strengthened the long-term co-operation with Banca Transilvania (BT) by approving a synthetic securitisation and new lending commitments. The landmark transaction is BT’s first securitisation transaction and represents the first capital relief transaction between BT and the EIB Group. The agreement aims to provide capital relief for BT in relation to a portfolio of assets subject to the standardised approach, freeing up lending capacity that will be used to support Romanian small and medium-sized enterprises (SMEs) and mid-caps.

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Spain: European Investment Bank and CEPSA sign 285 million euro loan to finance the construction of a second-generation biofuels plant (27.06.2024) – The European Investment Bank (EIB) and Cepsa sign a 285 million euro loan agreement for the construction of an advanced biofuels plant to be located next to the ¨La Rábida Energy Park¨ in Palos de la Frontera, Andalusia.The plant, which Cepsa is building together with Bio-Oils, will produce sustainable aviation fuel (SAF) and renewable diesel (HVO), from organic waste such as used cooking oil or from agricultural waste, advancing the circular economy. Once operational, the facility is expected to process as much as 600,000 tonnes of waste and produce up to 500,000 tonnes of second-generation biofuels annually.

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Sweden: EU backs Tele2 to reach near-universal 5G coverage (27.06.2024) – The European Invest Bank (EIB) is providing Tele2 with a 140 million euro loan to support deployment of the 5G network and upgrade of 4G in Sweden. Tele2 will use the loan to roll out a state-of-the-art 5G mobile network in Sweden with the goal of reaching 99.9% of the country’s population. In 2016, the EIB supported Tele2 with a 125 million euro loan to build a 4G network in Sweden.

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Romania: European Investment Bank moves to support businesses and municipalities as Vice-President Tsakiris visits Bucharest (27.06.2024) – The EIB signed guarantee agreements with Banca Comerciala Romana, Raiffeisen Bank and UniCredit Bank under the Resilience and Recovery Fund Romania. The guarantees totalling 98 million euro with the three banks aim to help Romania's large enterprises, including large mid-caps, and small municipalities invest in climate action and the digital transformation. The guarantees will enable the partner banks to offer more favourable loan terms, triggering as much as 750 million euro in new lending.

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EUROPEAN INVESTMENT FUND (EIF)

Croatian and Slovenian researchers gain innovation support with 49 million euro in European Investment Fund led financing (15.07.2024) – The European Investment Fund (EIF) becomes cornerstone investor in first technology-transfer fund in Croatia and Slovenia with involvement of development banks HBOR and SID Banka Vesna Deep Tech Venture Fund secures 49 million euro for commercialization of research projects and protection of intellectual property at universities and research institutions. EIF provides 40 million euro to new fund, with other investors offering a combined 9 million euro.

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The European Investment Fund supports a new fund to invest in social impact companies in Spain and the EU (10.07.2024) – The European Investment Fund (EIF) has signed a 20 million euro investment in Creas Impacto II, a new fund launched by CREAS, a pioneer fund manager in impact investing in Spain. This new vehicle, with a target size of 70 million euro, is a further effort by CREAS to invest in and support Europe's best social impact companies in areas such as empowering people through education and inclusive employment; caring for vulnerable people, with a focus on elder care; and building regenerative models for climate change mitigation and adaptation.

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Spain: the European Investment Fund vests 350 million euro in Kembara, a Deep Tech and climate growth fund under the European Tech Champions Initiative (08.07.2024) – The European Investment Fund (EIF) commits 350 million euro to Kembara Fund I FCR, a 1 billion euro target-size pan-European fund with a strong focus on Deep Tech and climate, managed by Spain-based Alma Mundi Ventures SGEIC (Mundi Ventures). Kembara has been chosen as one of the platforms to scale European Deep Tech and climate champions as part of the strategic European Tech Champion Initiative (ETCI). This is the first ETCI investment in a Spain based fund and it marks a pivotal moment in Europe’s Deep Tech funding landscape.

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Netherlands: Circular firms to gain from 30million euro additional funds for Polestar Capital fund (04.07.2024) – The European Investment Fund has committed 30 million euro to Polestar Capital’s Circular debt fund (PCDF) backed by InvestEU and the Dutch Alternative Credit Instrument in which the EIF participates together with Dutch national promotional institution Invest-NL. A further 13 million euro has been committed by Realdania, Oost NL and Polestar Capital itself. Regional Development Agency Oost NL invested in PCDF from Participatiefonds Oost NL and Perspectieffonds Gelderland, a fund from the province of Gelderland managed by Oost NL.

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Spain: the European Investment Fund invests 22.5 million euro in Global Social Impact Fund II to back social impact-related business projects in Spain (04.07.2024) – The European Investment Fund (EIF) is investing 22.5 million EURO in Global Social Impact Fund II (GSIF Spain), managed by Global Social Impact Investments (GSI). The pledge by the EIF makes it the lead investor in this Spain-focused social impact fund backed by InvestEU programme. The fund invests in small businesses improving livelihoods of people at risk of economic and social exclusion. Companies involved have strong business models, high growth potential and consolidated management teams.

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Denmark: the European Investment Fund and Danish corporate bank to provide over 175 million euro in new, cheaper, loans to Danish SME (03.07.2024) – The European Investment Fund (EIF) and Danish corporate bank kompasbank a/s have signed portfolio guarantee agreements to provide at least 175 million euro in new loans to Danish small and medium-sized businesses. The EIF guarantees will allow kompasbank to support Danish companies with improved lending conditions such as reduced interest rates and longer maturities. The agreements are supported by the InvestEU programme, which aims to trigger more than 372 billion euro in additional investments over the period 2021-2027.

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The European Investment Fund and NATO Innovation Fund join forces to unlock private capital for Europe's defence and security future (03.07.2024) – The European Investment Fund (EIF) and the NATO Innovation Fund (NIF) signed a Memorandum of Understanding MoU) to cooperate in supporting the long-term growth of the defence, security, and resilience sectors across Europe. The partnership reflects the shared interest of the NIF and EIF in establishing a framework to support start-ups, small and medium-sized enterprises (SMEs) and midcaps, as well as in enhancing the whole ecosystem by involving all the main stakeholders.

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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 COMMISSION (EC)

The European Commission designates adult content platform XNXX as Very Large Online Platform under the Digital Services Act (10.07.2024) – The Commission has formally designated XNXX as a Very Large Online Platform (VLOP) under the Digital Services Act (DSA).Therefore, XNXX will have to comply with the most stringent rules under the DSA within four months of its notification Such obligations include adopting specific measures to empower and protect users online, to prevent minors from accessing pornographic content online, including with age-verification tools, to provide access to publicly available data to researchers, and to publish a repository of ads.

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The European Commission publishes the second report on the State of the Digital Decade (02.07.2024) – The European Commission has published the second report on the State of the Digital Decade, providing a comprehensive overview of the progress made in the quest to achieve the digital objectives and targets set for 2030 by the Digital Decade Policy Programme (DDPP). This year, for the first time, the report is accompanied by an analysis of the national Digital Decade strategic roadmaps presented by Member States, detailing the planned national measures, actions and funding to contribute to the EU's digital transformation.

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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)

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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