CommuniqEU

Corporate DispatchPro

KEITH ZAHRA

ENVIRONMENT Upgrade of Single European Sky regulations on the cards

The European Commission is proposing an upgrade of the Single European Sky regulatory framework which comes on the heels of the European Green Deal. The objective is to modernise the management of European airspace and to establish more sustainable and efficient flightpaths. This can reduce up to 10% of air transport emissions.

The proposal comes as the sharp drop in air traffic caused by the coronavirus pandemic calls for greater resilience of our air traffic management, by making it easier to adapt traffic capacities to demand. To secure safe and cost-effective air traffic management services, the Commission has put forward a number of proposals, targeted to: • strengthentheEuropeannetworkanditsmanagementtoavoidcongestion and suboptimal flight routes; • promotea European marketfordata servicesneeded fora betterairtraffic management; • streamlinetheeconomicregulationofairtrafficservicesprovidedonbehalf of Member States to stimulate greater sustainability and resilience; • boosting better coordination for the definition, development and deployment of innovative solutions.

The European Green Deal, but also new technological developments such as wider use of drones, have put digitalisation and decarbonisation of transport at the very heart of EU aviation policy. However, curbing emissions remains a major challenge for aviation.

The Single European Sky therefore paves the way for a European airspace that is used optimally and embraces modern technologies. It ensures collaborative network management that allows airspace users to fly environmentallyoptimal routes. And it will allow digital services which do not necessarily require the presence of local infrastructure.

Corporate DispatchPro

KEITH ZAHRA

HEALTH AND SAFETY Better protection against cancer-causing chemicals

Each year, about 120,000 work-related cancer cases occur as a result of exposure to carcinogens at work in the EU, leading to approximately 80,000 fatalities annually.

To improve workers’ protection against cancer, the Commission has proposed today to further limit their exposure to cancer-causing chemicals. This fourth revision of the Carcinogens and Mutagens Directive sets new or revised limit values for three important substances: acrylonitrile, nickel compounds and benzene. Estimates show that more than 1.1 million workers in a wide range of sectors will benefit from improved protection thanks to the new rules.

The new proposal is the first initiative of the Commission’s commitment to fight cancer under the upcoming Europe’s Beating Cancer Plan.

Nicolas Schmit, Commissioner for Jobs and Social Rights, said: “A workplace should be a safe place and yet cancer is the cause of half of the deaths linked to work.” He said that the revisions being proposed to the Carcinogens and Mutagens Directive show that the EU is determined to act and will not compromise on workers’ health. “In the backdrop of the major health crisis due to Covid-19, we will redouble our efforts to ensure that workers in Europe are protected. We will look into concrete ways on how to achieve this via the future occupational safety and health strategic framework”, he added

The Carcinogens and Mutagens Directive is regularly updated in line with new scientific evidence and technical data. Three previous updates have addressed workers’ exposure to 26 chemicals. The new proposal adds new or revised occupational exposure limits for the following substances: Acrylonitrile (new limit); Nickel compounds (new limit), and Benzene (limit revised downwards).

Corporate DispatchPro

KEITH ZAHRA

MIGRATION

New migration pact launched

The European Commission proposed a significant overhaul in its migration policy, with the key intention to remedy the continent’s oft-broken migration and asylum rules.

It sets out improved and faster procedures throughout the asylum and migration system and it sets in balance the principles of fair sharing of responsibility and solidarity. This is crucial for rebuilding trust between Member States and confidence in the capacity of the European Union to manage migration.

At the same time, The EU will seek to promote tailor-made and mutually beneficial partnerships with third countries. These will help address shared challenges such as migrant smuggling, will help develop legal pathways and will tackle the effective implementation of readmission agreements and arrangements.

While the new system is based on cooperation and flexible forms of support starting off on a voluntary basis, more stringent contributions will be required at times of pressure on individual Member States, based on a safety net.

The proposals include a legal obligation on each state to host some refugees – something eastern nations including Poland and Hungary are dead against – as well as helping in other ways under “mandatory solidarity”. Each state would receive €10,000 ($11,750) per adult taken in, funded from the bloc’s budget.

Corporate DispatchPro

KEITH ZAHRA

BREXIT LINK No thaw in EU-UK relations

While another two weeks have gone by without any breakthroughs in the impasse between the United Kingdom and the European Union, the European Commission said that it will, over the next few days, start looking into legal remedies if Britain does not adjust the parts of a domestic bill which breaches the Withdrawal Agreement agreed last year.

EU Commission Vice-President Maros Sefcovic said that the EU executive was asking London to withdraw the contentious parts of the bill by the end of September. “After that we would look into the question of legal remedies,” he told a news conference.

A new crisis in EU-UK talks had emerged in recent weeks after Johnson brought forward legislation which would jeopardise the Agreement. “We will continue to engage with the UK in good faith, building on progress already achieved,” he added.

Similar pressure was also placed by Germany’s Europe Minister Michael Roth, who urged Britain to drop these plans as time was running out for a trade deal to be reached.

“Please, dear friends in London, stop the games, time is running out, what we really need is a fair basis for further negotiations and we are ready for that,” Roth said.

Corporate DispatchPro

KEITH ZAHRA

FINANCIAL SERVICES Covid-19 have heightened liquidity challenges in financial services sector

The three European Supervisory Authorities (EBA, EIOPA and ESMA) have issued their first joint risk assessment Report of the financial sector since the outbreak of the Covid-19 pandemic. The Report highlights how the pandemic has led to further amplified profitability concerns across the board and heightened liquidity challenges in segments of the investment fund sector. It particularly points to economic and market uncertainty as a key challenge going forward.

The impact of the crisis on EU banks’ asset quality is a key concern as significant uncertainty about the timing and size of a recovery persists. The ESAs see a risk of decoupling of financial market performance from the underlying economic activity, and , a prolonged lower for longer interest rate environment which is expected to weigh on the profitability and solvency of financial institutions, as well as contributing to the build-up of valuation risks.

Directly following the Covid-19 outbreak in Europe, the ESAs’ actions provided for regulatory flexibility, fostered operational resilience, and highlighted the importance of consumer protection. Considering ongoing uncertainties on the recovery from the Covid-19 pandemic, regulatory and supervisory cooperation between the ESAs, the European Systemic Risk Board (ESRB) and the European Commission remains key.

In particular, the ESAs highlighted the need to implement the following policy actions monitor risks and perform stress testing, foster flexibility where and when needed, support to the real economy and supervise digital transformation.

Corporate DispatchPro

KEITH ZAHRA

POLITICS EU Summit postponed after Council President goes into quarantine

European Council President Charles Michel was forced to call off a summit of EU leaders scheduled for mid-September and delay it until the start of October, after coming in contact with an infected security guard, his spokesman said.

Michel, who chairs EU summits, tested negative for Covid-19 on Monday, but according to Belgian regulations, he is required to go into isolation. “The president today learned that a security officer, with whom he was in close contact early last week, tested positive for COVID,” Michel’s spokesman said. “The president is tested regularly and tested negative yesterday. Respecting Belgian rules, he has gone into quarantine as of today.”

A potential deal on Turkey and approval for economic sanctions on Belarus in support of pro-democracy protests were expected to be the main highlights of the agenda.