Day: May 18, 2022

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G7: Commissioners Kyriakides and Urpilainen attend the Development and Health ministers meetings in Berlin

Commissioners for Health and Food Safety, Stella Kyriakides, and for International Partnerships, Jutta Urpilainen, will participate in the G7 Development and Health ministers meetings in Berlin. Commissioner Urpilainen will represent the EU in the Development ministerial meeting on 18-19 May that will discuss the consequences of Russia’s aggression of Ukraine and the repercussions on food security worldwide. Wide-ranging discussions will follow on topical development subjects such as Africa, infrastructure investments for sustainable development, climate, gender equality and health. Commissioner Kyriakides will participate in the meeting of the G7 Health Ministers on 19-20 May, to discuss “G7 Health Track” priorities such as preparedness for future pandemics, antimicrobial resistance and health risks due to climate change. Both Commissioners will attend a joint session of Development and Health Ministers on global health. Ahead of the meetings, Commissioner Kyriakides said: “The pandemic is not over. We need to continue building our resilience and strengthening the global health architecture. We have to deepen our strategic partnerships with our partner countries and ensure sustainable financing to better deal with global health threats. Vaccination remains our best response worldwide. Today’s global health challenges require collaboration and coordination beyond borders and the G7 is crucial for this. This is also why we need to launch a robust new Global Health Strategy, to connect the dots across the globe to improve health systems to be ready to respond to global health threats.” Commissioner Urpilainen added: “In the light of current global challenges worsened by Russia’s aggression against Ukraine, the EU has to remain fully committed to the implementation of the Sustainable Development Goals, including food security. Through the G7, we can deal with the consequences of multiple crises in a more targeted and coordinated way. I am also convinced that our Global Gateway strategy can contribute to it positively. It is a critical moment and only by working together as Team Europe, we are increasing our impact on the way to a sustainable recovery. A new EU Global Health Strategy would be a major component of these efforts.” The G7 Development Ministers will adopt a Communiqué entitled “Achieving the Sustainable Development Goals in times of multiple crisis”, together with a statement on the global effects of Russia’s aggression against Ukraine and the G7’s comprehensive support for Ukraine, affected neighbouring countries, as well as countries of the Global South. On Thursday, you will be able to access the G7 communiqué and G7 statement here and a joint statement on global health by the Commissioners here. (For more information: Stefan de Keersmaecker – Tel.: +32 229 84680; Ana Pisonero – Tel.: +32 229 54320; Darragh Cassidy – Tel.: +32 2298 3978; Gesine Knolle – Tel.: +32 229 54323)

Solidarity with Ukraine: Commission will provide €248 million to support Member States welcoming those fleeing the war

Today, the Commission decided to make €248 million available to 5 Member States that were the most affected at the start of the war and have been hosting a large number of refugees to support their reception and border management systems. The decision follows the 9 April Global Pledging event “Stand Up for Ukraine”, where the Commission committed up to €400 million to support refugees from Ukraine in the most affected Member States. This emergency assistance from home affairs funds will support Poland, Romania, Hungary, Slovakia and Czechia. Member States can use these funds to provide immediate assistance such as food, transport and temporary accommodation to people fleeing the Russia’s unprovoked invasion of Ukraine, while also increasing their capacity to manage the EU’s external borders. Civil society organisations and local and regional authorities also play a key role in offering assistance and Member States will therefore need to ensure that this emergency funding also flows to them. To ensure that funds are quickly disbursed without a heavy administrative burden, the Commission will release the funding based on results achieved, rather than the actual costs.To continue supporting initial reception needs as they evolve, the Commission will make available the remaining €152 million after the agreement of the budget authority. (For more information: Anitta Hipper – Tel.: + 32 229 85691; Ciara Bottomley – Tel.: +32 229 69971; Isabel Otero Barderas – Tel: +32 229 66925)

EU unveils first ever strategic partnership with the Gulf

Today, High Representative Josep Borrell and the European Commission adopted a Joint Communication on a “Strategic Partnership with the Gulf” with the aim to broaden and deepen the EU’s cooperation with the Gulf Cooperation Council (GCC) and its member countries. High Representative/Vice-President, Josep Borrell, said: “At a time of insecurity and significant challenges to the rules-based international order, aggravated by Russia’s war on Ukraine, the European Union and Gulf countries stand to gain from a stronger and more strategic partnership stretching over a number of key areas. We need to work more closely together on stability in the Gulf and the Middle East, on global security threats, energy security, climate change and the green transition, digitalisation, trade and investment. We also need to strengthen contacts between students, researchers, businesses and citizens.” The Joint Communication addresses a series of key policy areas, presenting concrete proposals for strengthened EU-GCC cooperation on energy, green transition and climate change, trade and economic diversification, regional stability and global security, humanitarian and development challenges, and closer people-to-people contacts. A strengthened partnership is beneficial both for the EU and for the Gulf partners. You can find more information on the Joint Communication here, in the press release and the Q&A. (For more information: Peter Stano – Tel.: +32 229 54553; Lauranne Devillé – Tel. : +32 229 80833)

The European Commission is committed to personal data protection.Any personal data is processed in line with Regulation (EC) 2018/1725. All personal information processed by the Directorate-General for Communication / European Commission Representations is treated accordingly.

Source: Cyprus News Agency

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ENERGY MARKETS: COMMISSION PRESENTS SHORT-TERM EMERGENCY MEASURES AND OPTIONS FOR LONG-TERM IMPROVEMENTS

In response to several months of exceptionally high and volatile energy prices, the Commission sets out today a series of additional short-term measures to tackle high energy prices and address possible supply disruptions from Russia. It also presents a number of areas where the electricity market design can be optimsied, making it fit for the transition away from fossil fuels and more resilient to price shocks, while protecting consumers and delivering affordable electricity.

Commissioner for Energy, Kadri Simson, said: “The EU has put in place a well-functioning and interconnected energy market that continues to provide reliable energy supply in today’s challenging situation. But exceptional times require exceptional measures and today we present additional steps that the Member States can take to combat the high prices. As Russia pursues its unprovoked war in Ukraine, we must also plan for gas supply disruptions and their impact with solidarity measures and possible price interventions. In parallel, we are taking forward the work to improve the electricity market to better protect consumers, reduce volatility and continue to support the green transition.”

Short-term intervention measures

The Commission invites Member States to continue using its Energy Prices Toolbox, which contains measures to lower the energy bills paid by European consumers. In addition, a number of short-term measures are put at the disposal of Member States and can be used now and during the next heating season.

In gas markets:

A possibility for Member States to temporarily extend end-consumer price regulation to a broad range of customers, including households and industry.

Temporary ‘circuit breakers’ and emergency liquidity measures to support effective functioning of commodity markets, in full respect of State aid provisions.

Using the EU Energy Platform to aggregate gas demand, ensure competitive gas prices via voluntary joint purchases, and reduce EU reliance on Russian fossil fuels.

Intervention options in electricity markets for Member States:

The possibility to reallocate exceptionally high infra-marginal revenues (so-called windfall profits) to support consumers is extended to cover the next heating season.

In addition, congestion revenues can be used to finance consumer support.

A temporary extension of regulated retail prices to cover small and medium-sized businesses.

For regions with very limited interconnection, the possibility to introduce subsidies for fuel costs in power production to reduce the electricity price, provided they are designed in a way compatible with EU Treaties, in particular with regard to the absence of restrictions to cross border exports, sectoral legislation and State aid rules.

EU measures in case of full disruption of gas supplies

In case of full disruption of Russian gas supplies, further exceptional measures may be needed to manage the situation. The Commission invites Member States to update their contingency plans, taking into account the recommendations contained in the Commission’s EU preparedness review.

The Commission will facilitate setting up a coordinated EU demand reduction plan with pre-emptive voluntary curtailment measures to be ready in case an emergency arises. In a spirit of solidarity, less affected Member States could reduce their gas demand for the benefit of more affected Member States.

To accompany these measures, an administrative price cap on gas might be necessary at EU level in response to a full supply disruption. If introduced, this cap should be limited to the duration of the EU emergency and should not compromise the EU’s ability to attract alternative sources of pipeline gas and LNG supplies, and to reduce demand.

A future-proof electricity market design

The recent ACER report concludes that the fundamentals of the market design bring significant benefits to consumers. It also notes that there are several ways to better protect consumers and deliver affordable electricity, make the market more robust and resilient to future shocks, and align it further with the European Green Deal objectives.

The Commission therefore sets out a number of issues to be studied for an optimal future functioning of the market. These include market-based instruments to protect consumers against price volatility, measures enhancing demand-response and promoting individual self-consumption schemes, appropriate investment signals and a more transparent market surveillance. Building on the analysis presented today, the Commission will launch an impact assessment process on possible adjustments to the electricity market design.

Background

Following the ‘Energy Prices Toolbox’ of October 2021, the Commission presented on 8 March 2022 additional guidance for Member States to shield businesses and households from high prices. It confirmed the possibility to regulate prices for end consumers in exceptional circumstances, and described how Member States can redistribute revenue from high energy sector profits and emissions trading to consumers. On 23 March, the Commission outlined further options to mitigate high energy prices and proposed minimum gas storage obligations and voluntary common gas purchases.

At the meeting of the European Council on 24-25 March 2022, EU leaders asked the Commission to submit proposals that address the problem of excessive electricity prices while preserving the integrity of the Single Market, maintaining incentives for the green transition, preserving the security of supply and avoiding disproportionate budgetary costs. The Commission committed to assess options to optimise the design of the EU’s electricity market and detail a plan to end our dependence on Russian fossil fuels.

Source: Cyprus News Agency

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EU STEPS UP ACTION TO STRENGTHEN EU DEFENCE CAPABILITIES, INDUSTRIAL AND TECHNOLOGICAL BASE: TOWARDS AN EU FRAMEWORK FOR JOINT DEFENCE PROCUREMENT

Today, in response to the European Council tasking at the Versailles Summit, the Commission and the High Representative present an analysis of the defence investment gaps, and propose further measures and actions necessary to strengthen the European defence industrial and technological base. Russia’s unprovoked aggression against Ukraine has significant implications for European defence, which is leading to increased military spending by Member States. With today’s Joint Communication, the Commission and the High Representative aim to help Member States to invest together, better and in a European way. It also responds to the call made in the context of the Conference of the Future of Europe for stronger EU action in defence.

This Joint Communication presents a new level of ambition to build a stronger Europe in defence. It focuses in particular on the joint acquisition of military equipment, on strategic defence programming to set clearer priorities, and on the support to the European industrial base, including the strengthening of the European defence R&D framework, the European Defence Fund (EDF). EU initiatives to foster defence cooperation also help reinforce a fairer Transatlantic burden-sharing and a more effective European contribution within NATO.

Defence investment gaps

Taking into account the analysis of investment gaps carried out by the European Defence Agency, the Commission and the High Representative examine three main types of gaps: defence expenditure, defence industrial gaps, and defence capability gaps.

Defence expenditure: As a direct result to the Russian invasion of Ukraine, Member States have already announced increases in their defence budgets close to an additional €200 additional billion in the coming years. Whilst these increases are essential, they come after years of substantial cuts and severe underinvestment. From 1999 to 2021, EU combined defence spending increased by 20% against 66% for the US, 292% for Russia and 592% for China. Without a coordinated approach, the increase in spending risks leading to further fragmentation and undo progress made until now.

Defence industrial gaps: Despite the overall competitiveness of the sector, difficulties and gaps exist. Since demand is fragmented, the industry also remains structured along national borders, especially outside the aeronautics and missile sectors. Dependencies also exist for some key defence equipment for which the European defence industrial and technological base is not offering indigenous solutions.

Capability gaps: three urgent priorities have been highlighted: replenishing stockpiles, replacing Soviet-era legacy systems and reinforcing air and missile defence systems. Beyond these urgent capability gaps, the Joint Communication proposes to work on a number of specific strategic medium- to long-term capabilities in the air, land, maritime, space and cyber defence domains.

Measures to address these gaps

In order to support the closing of the gaps, the Commission and the High Representative set out a set of very concrete measures designed to strengthen European defence demand through joint procurement and to reinforce supply through measures targeting the support to industrial manufacturing capacities.

In the immediate term, the Commission and the High Representative/Head of the European Defence Agency will swiftly establish a Defence Joint Procurement Task Force to work with Member States to support the coordination and de-conflict their very short term procurement needs to face the new security situation. The Task Force will also coordinate with the Clearing House Cell set up within the EEAS/EU Military Staff to facilitate coordination on military assistance to Ukraine.

A short-term EU instrument to reinforce defence industrial capabilities through joint procurement will be proposed for fast-track adoption, to support Member States to fill the most urgent and critical gaps in a collaborative way, based on the work of the Task Force. The Commission is ready to commit €500m of EU budget over two years to incentivise Member States to address these needs in a collaborative way.

This short-term instrument will pave the way to an EU framework for defence joint procurement. To this end, in the third quarter of 2022, the Commission will propose a European Defence Investment Programme (EDIP) regulation. It will establish the conditions for Member States to form European Defence Capability Consortia (EDCC). Within an EDCC, Member States will jointly procure, for the use of participating Member States, defence capabilities that are developed in a collaborative way within the EU and will benefit from a VAT exemption. Additionally, associated EU financing may be provided for projects of high EU interest.

The support to joint procurement complements and completes the efforts made until now on defence R&D through the EDF.

Additionally, the Commission and the High Representative propose to progressively move towards a joint EU defence programming and procurement function allowing to define better the capabilities priorities to focus on.

Finally, enhanced European defence cooperation also requires a solid action plan to reinforce the European defence industrial capacity. To this end, the Commission will:

Carry out, in cooperation with the European Defence Agency, an in-depth mapping of EU current and necessary additional industrial manufacturing capabilities;

Propose a Critical Raw Materials initiative, including legislative measures, to facilitate, inter alia, defence industry access to Critical Raw Materials (CRMs), thereby strengthening the EU‘s resilience and security of supply;

Work on further measures to ensure the availability of defence specific skills for the industrial capacity ramp-up;

Consider possible amendments to the framework for dual-use research and innovation to improve synergies between civil and defence instruments;

Work on further measures (such as coordinated calls among existing EU instruments and EIB loans) to support critical technologies and industrial capacities by developing strategic projects;

Within the overall review of priorities in the mid-term review of the EU long-term budget, consider strengthening the budgets of the European Defence Fund and military mobility through the Connecting Europe Facility;

Speed up the establishment of the CASSINI for defence to attract new entrants and support defence innovation.

The EIB should also assess whether to enhance its support to the European defence industry and joint procurement beyond its ongoing support to dual use.

The proposed measures will make the EU a stronger international partner, also within NATO, which remains the foundation of the collective defence of its members.

Next Steps

The Commission and the High Representative/Head of the European Defence Agency, recommends to the European Council to endorse this analysis underlining the need to urgently and collectively address the EU’s short-term and medium-term defence investment gaps.

Members of the College said:

Ursula von der Leyen, President of the Commission, said: “The European Union is stepping up its effort to build a stronger European defence industry.We need to spend more on defence and we need to do it in a coordinated way. Today we are proposing concrete measures to strengthen our defence capabilities and the military technological edge of our European industrial base, based on an analysis of the defence investment gaps. This action will ensure a more effective European contribution in NATO.”

Executive Vice-President for a Europe Fit for the Digital Age, Margrethe Vestager, said: “This Communication gives a valuable picture of the defence investment gaps we face. It is clear that more spendings will be needed, but spending more is not the only answer. We also need to spend better, which means spending together to build future defence capabilities”

High Representative/Vice-President/Head of the European Defence Agency, Josep Borrell, said: “Russia´s aggression against Ukraine has changed the security landscape in Europe. Many are increasing their defence spending, but it is crucial that Member States invest better together to prevent further fragmentation and address existing shortfalls. This is also what the Strategic Compass calls for. The European Defence Agency will continue to play a key role in supporting Member States in identifying gaps, promoting cooperation and fostering defence innovation. If we want modern and interoperable European armed forces, we need to act now.”

Thierry Breton, Commissioner for the Internal Market, said: “While Member States have announced an unprecedented increase in defence spending, this does not make up for years of massive under-investment. Today we are presenting a clear roadmap of the defence capabilities in which it is most urgent to invest together, better and in Europe. To turn this vision into reality, we are proposing a European framework for joint acquisition supported by the EU’s budget. Our leaders have asked for concrete actions, and we are presenting them with a real level of ambition.”

Background

EU Heads of State or Government, meeting in Versailles on 11 March 2022, committed to “bolster European defence capabilities” in light of the Russian military aggression against Ukraine. They also invited “the Commission, in coordination with the European Defence Agency, to put forward an analysis of the defence investment gaps by mid-May and to propose any further initiative necessary to strengthen the European defence industrial and technological base.” The EU Strategic Compass on Security and Defence adopted by the Council and endorsed by the European Council in March 2022 reiterates this.

This Joint Communication provides the requested analysis to the European Council with the aim to ensure that the increased defence spending by Member States results in a much stronger EU defence technological and industrial base. This Communication builds on the February Defence Communication issued on 15 February 2022.

The European Defence Agency will keep on providing updated analysis of European capability gaps in the framework of the Coordinated Annual Review on Defence framework.

Source: Cyprus News Agency

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Ukraine, Cyprus issue and Czech EU Presidency discussed at meeting between FMs of Cyprus and the Czech Republic

The upcoming Czech Presidency of the Council of the EU, the Cyprus issue as well as the war in Ukraine were the focus of a meeting held in Prague between the Foreign Ministers of Cyprus and the Czech Republic, Ioannis Kasoulides and Jan Lipavský.

In statements to the press after meeting with his Czech counterpart, in Prague, Kasoulides said that “your invitation to visit the Czech Republic reaffirms our mutual and sincere commitment to continue the positive track of the bilateral relations between our two countries”.

He added that Cyprus and Czech Republic share a good friendship and long-standing cordial relations based on common principles, while “as members of the European family, having joined the Union together in 2004, our countries attach great importance to the European principles and values”.

He expressed confidence that there is great potential for further growth at the bilateral level, in an array of fields such as education, tourism, business, as well as areas like renewable energy, water resources and waste management.

“Minister Lipavsky and I agree that this is the right time to bring fresh impetus to the existing cooperation between Cyprus and the Czech Republic,” he pointed out.

Kasoulides went on to say that Minister Lipavsky briefed him on the priorities of the upcoming Czech Presidency of the EU Council and wished Prague every success.

He expressed Nicosia’s support wherever possible, and a constructive contribution to the Council’s work. “We look forward to a close cooperation with you” he said.

Referring to the dramatic events following the Russian invasion in Ukraine, Kasoulides said that maintaining unity at EU level “remains imperative in our efforts to exert economic and political pressure on Russia to end this war through effective diplomatic means”.

During their deliberations, he said, they both strongly condemned “the Russian brutality against the civilian population and reiterated our support to Ukraine’s independence, sovereignty and territorial integrity. We also discussed practical ways to help the Ukrainian people”.

The Cypriot Foreign Minister added that the war in Ukraine highlighted the urgent need to proceed with Europe’s energy independence, in this rapidly changing geopolitical environment.

“By diversifying our energy supply, we can strengthen the Union’s energy security. The prospect of a corridor from the Eastern Mediterranean to Europe is now gaining momentum,” he stressed.

They also had the opportunity to discuss the EU-NATO relations, migration and developments in Eastern Europe.

As regards the Cyprus problem, Kasoulides said that he had the opportunity to brief Minister Lipavsky on the “bold Confidence Building Measures that we have proposed” adding that “we believe they can help create a conducive environment that will positively support our efforts in resuming the process”.

“In these trying moments in European history, the time is ripe for a comprehensive settlement of the Cyprus problem,” he continued.

Concluding, he expressed belief that his presence in Prague opens a new chapter in the relations of the two countries for their mutual benefit.

Source: Cyprus News Agency

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Price Index of Construction Materials up by 24.54% since last April, recording a new high

The Price Index of Construction Materials for April 2022 reached 132.69 units (base year 2015=100), recording an annual increase of 24.54%, according to data published by the Statistical Service. This is the highest level of the Index since 1986, when data are available.

Compared to the the previous month, the index recorded an increase of 5.60%.

By main commodity category, annual increases were recorded in metallic products by 42.35%, with iron and steel products having an increase of 50.67% compared to April 2021, products of wood, insulation materials, chemicals and plastics by 24.77%, electromechanical products by 16.39%, mineral products by 9.96% and minerals by 8.72%.

Source: Cyprus News Agency