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KEITH ZAHRA

FUNDING

Fifth installment of SURE financial support to Member States

The European Commission has disbursed €9 billion to seven EU Member States in the fifth instalment of financial support to Member States under the SURE instrument.

This is the second disbursement in 2021. As part of today’s operations, Czechia has received €1 billion, Spain €2.87 billion, Croatia €510 million, Italy €3.87 billion, Lithuania €302 million, Malta €123 million and Slovakia €330 million. This is the first time that Czechia has received funding under the instrument. The other six EU countries have already benefitted from loans under SURE.

These loans will assist Member States in addressing sudden increases in public expenditure to preserve employment. Specifically, they will help Member States cover the costs directly related to the financing of national short-time work schemes, and other similar measures that they have put in place as a response to the coronavirus pandemic, including for the self-employed. Today’s disbursements follow the issuance of the fifth social bond under the EU SURE instrument, which attracted a considerable interest by investors.

So far, 16 Member States have received a total of €62.5 billion under the SURE instrument in back to back loans. Throughout 2021, the Commission will seek to raise in addition over €25 billion through the issuance of EU SURE bonds.

Once all SURE disbursements have been completed, Czechia will have received €2 billion, Spain €21.3 billion, Croatia €1 billion, Italy €27.4 billion, Lithuania €602 million, Malta €244 million and Slovakia €631 million.

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KEITH ZAHRA

RESEARCH AND INNOVATION

Commission sets research & innovation priorities for a sustainable future

The European Commission has adopted the first strategic plan for Horizon Europe, the new EU research and innovation programme worth €95.5 billion in current prices.

The strategic plan is a novelty in Horizon Europe and sets the strategic orientations for the targeting of investments in the programme’s first four years. It ensures that EU research and innovation actions contribute to EU priorities, including a climate-neutral and green Europe, a Europe fit for the digital age, and an economy that works for people.

The strategic plan sets out four strategic orientations for research and innovation investments under Horizon Europe for the next four years. These include promoting an open strategic autonomy by leading the development of key digital, enabling and emerging technologies, sectors and value chains; restoring Europe’s ecosystems and biodiversity, and managing sustainably natural resources; making Europe the first digitally enabled circular, climate-neutral and sustainable economy and creating a more resilient, inclusive and democratic European society.

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KEITH ZAHRA

FINANCE

Eurogroup Finance Ministers warn against premature withdrawal of financial support

Eurozone Finance Ministers agreed that respective Member States will ensure that until the health crisis is over and recovery is firmly underway, they will continue to protect economies through the deployment of the necessary level of fiscal support.

“Supporting economic activity and mitigating scarring effects through timely, temporary and targeted measures is key to longerterm fiscal sustainability. Premature withdrawal of fiscal support should be avoided”, the Ministers said in a statement.

The Eurogroup is committed to a supportive stance in the euro area in 2021 and in 2022, also taking into account the fiscal stimulus stemming from the Recovery & Resilience Facility. Ambitious reforms and productive investment, supported by the RRF, are key to increase growth potential in the medium-term. The Eurogroup noted the Commission’s preliminary indication that the general escape clause will continue to apply next year.

Finance Ministers also agreed that once the recovery is firmly under way, euro area Member States should address the increased public debt levels by implementing sustainable medium-term fiscal strategies, with an emphasis on improving the quality of public finances, raising investment levels and supporting the green and digital transitions. Member States should focus on reforms that will promote private investment and will increase the productive capacity of the euro area.

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KEITH ZAHRA

FOREIGN AFFAIRS

EU extends Ukraine-related sanctions

The European Council has extended the sanctions targeting those responsible for undermining or threatening the territorial integrity, sovereignty and independence of Ukraine for a further six months until 15 September 2021.

The existing restrictive measures provide for travel restrictions, the freezing of assets, and a ban on making funds or other economic resources available to the listed persons and entities. Sanctions will continue to apply to 177 individuals and 48 entities.

Restrictive measures in respect of actions undermining or threatening the territorial integrity, sovereignty and independence of Ukraine were first introduced on 17 March 2014.

Other EU measures implemented in response to the crisis in Ukraine include economic sanctions targeting specific sectors of the Russian economy, currently in place until 31 July 2021 and restrictive measures in response to the illegal annexation of Crimea and Sevastopol, limited to the territory of Crimea and Sevastopol and currently in place until 23 June 2021.