European Union

Source : © European Union, 2016 - EP

Delegations and committee meeting

Source : © European Union, 2016 - EP

The European Union and its Member States, as contracting parties to the United Nations Convention on the Law of the Sea (UNCLOS), acknowledge the Award rendered by the Arbitral Tribunal, being committed to maintaining a legal order of the seas and oceans based upon the principles of international law, UNCLOS, and to the peaceful settlement of disputes. 

The EU does not take a position on sovereignty aspects relating to claims. It expresses the need for the parties to the dispute to resolve it through peaceful means, to clarify their claims and pursue them in respect and in accordance with international law, including the work in the framework of UNCLOS. 

The EU recalls that the dispute settlement mechanisms as provided under UNCLOS contribute to the maintenance and furthering of the international order based upon the Rule of Law and are essential to settle disputes. 

The EU also underlines the fundamental importance of upholding the freedoms, rights and duties established in UNCLOS, in particular the freedoms of navigation and overflight. 

The EU supports the swift conclusion of talks aiming at an effective Code of Conduct between ASEAN and China implementing the 2002 Declaration on the Conduct of Parties in the South China Sea. 

Recalling its Statement of 11 March 2016, the EU calls upon the parties concerned to address remaining and further related issues through negotiations and other peaceful means and refrain from activities likely to raise tensions. As a member of the ASEAN Regional Forum (ARF) and as a High Contracting Party to the 1976 Treaty of Amity and Cooperation in South East Asia, the EU also wishes to "foster cooperation in the furtherance of the cause of peace, harmony, and stability in the region". The EU therefore stands ready to facilitate activities which help to build confidence between the parties concerned.

While underlining the importance of all States working together to protect the marine ecosystem already endangered by the intensification of maritime traffic and dredging, the EU and its Member States will continue to organise High Level Dialogues on Maritime Security Cooperation and the exchange of best practices on joint management and development of shared resources, such as fisheries, as well as on capacity-building measures.

General : This morning, I would like to express my deep sorrow following the attack last night in Nice. On behalf of the European Parliament, I would like to extend my condolences to the families and friends of the many victims. I send my wishes for a speedy recovery to the injured. I commend the courage and solidarity of both the emergency services and ordinary citizens of Nice.

Source : © European Union, 2016 - EP

General : This morning, I would like to express my deep sorrow following the attack last night in Nice. On behalf of the European Parliament, I would like to extend my condolences to the families and friends of the many victims. I send my wishes for a speedy recovery to the injured. I commend the courage and solidarity of both the emergency services and ordinary citizens of Nice.

Source : © European Union, 2016 - EP

„Je suis profondément choquée par les dramatiques attentats en France. Je présente mes plus sincères condoléances aux familles des victimes innocentes qui étaient rassemblées à l’occasion du 14 juillet. En tant qu’Européens nous devons rester unis, avec la France, pour condamner et combattre le terrorisme. La lutte contre le terrorisme doit être globale et, dans le cadre de ses compétences, notre sous-commission restera engagée à contribuer au renforcement de la sécurité internationale.”

Statement of SEDE chair on the terrorist attack in Nice

„I am deeply shocked by the dreadful terrorist attack in Nice. I convey my deepest condolences to the families of the innocent victims, who have gathered to celebrate the French National Day. As Europeans we must stand united with France in condemning and combatting terrorism. The fight against terrorism should be global, and in the frame of its responsibilities, our subcommittee will remain committed to contribute enhancing international security."
Source : © European Union, 2016 - EP

Leaders reiterated their strong unequivocal condemnation of terrorism in all its forms and manifestations committed by whomever, wherever and for whatever purposes.

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“The horror, the horror has, once again, hit France,” said French president Francois Hollande after another tragic and heartbreaking day for France and Europe.

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The European Union and Japan are united in our resolve to fight terrorism, extreme violence and hatred. Today we mourn all the victims of the tragic attacks in Nice and Dhaka. We are committed to work hand in hand to counter the plague of terrorism.

Let me congratulate Prime Minister Abe on his coalition's victory in the elections last Sunday. Shinzo, this gives you a strong mandate to accelerate your ambitious reform agenda and to continue your excellent leadership in the G7. You have our full support.

During the G7 Ise-Shima summit we agreed on the goal to conclude our free trade and strategic partnership agreement by the end of this year. Let me assure you that the European Union is fully committed and with the renewed leadership of Prime Minister Abe we will do our utmost to make it happen. The result of the UK referendum does not affect this process. The arguments, and they are many, for an active and open trade policy have not changed.

The European Union remains an engaged and active global player. We will continue doing so also as an EU of 27 Member States once the UK leaves. Before this day happens let me recall that the UK is a full member of the EU, with all its rights and all its obligations. This situation will also apply during the whole - so-called - divorce process, which the UK government still needs to trigger. Later today, I will have the opportunity to discuss it with some of my colleagues and maybe also Prime Minister Theresa May. 

Finally, let me conclude by saying that the European Union continues to cooperate with all our partners, not only here in Asia but also around the world. There is no shift in our foreign policy. This was the message I passed today as we intend to continue our fruitful cooperation with Japan and friendly relations with Prime Minister Abe.

First of all thank you President Elbegdorj for expressing solidarity at the attack in Nice on the French national day. It's a tragic paradox that the subject of this attack were people celebrating liberty, equality and fraternity. Today we all, Europe and Asia, stand united with the French people and their government. We condemn this tragedy and keep up our fight against extreme violence and hatred.

Mr. President, thank you for welcoming us in Ulaanbaatar on this important occasion, as we celebrate the twentieth anniversary of ASEM. I had the pleasure yesterday to learn more from you about the proud and rich heritage of the Mongolian people. Your horse relay postal system from the 13th and 14th centuries, for instance, was the original connectivity project. I am happy that we meet here in Mongolia to advance on further connecting Asia and Europe.

Europe attaches great importance to our partnership with Asia. And ASEM is a unique forum to bring Europe and Asia closer,  in all spheres: economic, political, and people-to-people.

We have a lot to gain from working closely together - and much to lose if we do not. Together we account for about 60% of the world population, and of the world's trade and GDP.

As leaders, we have a duty to maintain peace, security and stability, and work for prosperous, cohesive and sustainable societies. Of course, we have our differences. But there is much more uniting us than dividing us. We have an obligation not only to keep it that way but also to improve our relations and cooperation.

We have the chance to make the most of our cooperation by strengthening our trade and investment links, by bringing our citizens closer to each other. We should use this chance to increase our mutual understanding in practice by promoting enhanced links between our regions - from transport to digital highways.

Our cooperation is not without challenges. That is why dialogue and a strong commitment to the rules-based international order are necessary. Common and predictable rules make states more secure, people more free and encourage companies to invest with more confidence.Europe and Asia also share responsibilities for turning our climate change commitments and sustainable development goals into reality, promoting reformed global governance, addressing terrorism and the migration and refugee crisis.

All of these topics will be on the menu of our meeting. I hope that the Ulaanbaatar Summit will be remembered for our determination to find common solutions.

ASEM has come a long way in the last 20 years. We have achieved a lot together, but we have more work to do. I look forward to our discussions. Thank you.

... unfortunately it`s true...

The EU needs a common definition of “normal car use”, says Renault. Diesel engine NOx emissions are the price paid to hit lower CO2 targets, says the European Automobile Manufacturers’ Association. But Volkswagen is ashamed of cheating to beat strict US emissions laws. So said contributors to the “triple bill” of hearings in held by the Committee of Inquiry into Emission Measurements in the Automotive Sector (EMIS) on Wednesday and Thursday. Its work will continue after the summer break.
Committee of Inquiry into Emission Measurements in the Automotive Sector

Source : © European Union, 2016 - EP

The EU needs a common definition of “normal car use”, says Renault. Diesel engine NOx emissions are the price paid to hit lower CO2 targets, says the European Automobile Manufacturers’ Association. But Volkswagen is ashamed of cheating to beat strict US emissions laws. So said contributors to the “triple bill” of hearings in held by the Committee of Inquiry into Emission Measurements in the Automotive Sector (EMIS) on Wednesday and Thursday. Its work will continue after the summer break.
Committee of Inquiry into Emission Measurements in the Automotive Sector

Source : © European Union, 2016 - EP

OPINION on an EU strategy for liquefied natural gas and gas storage
Committee on Foreign Affairs
Takis Hadjigeorgiou

Source : © European Union, 2016 - EP

It took a while for policymakers in Europe to appreciate that the financial crisis, while it was triggered by a collapse in the US sub-prime mortgage market, was not just ‘Made in America’. The balance sheets of European banks had been expanding even more rapidly than those of their American counterparts, and on average their leverage ratios were higher.

Some economists have ascribed Europe’s difficulty in escaping from the recession and achieving sustained growth principally to its over-reliance on bank finance. In Europe, banks supply over two-thirds of the external financing needs of non-financial companies – the comparable figure in the United States is nearer 20%. The US stock and bond markets are able to step in to fill the gap left by retrenching banks. But when EU banks catch a cold, and are obliged to rein in their lending, the real economy unavoidably contracts. Strengthening European banks has therefore been a very high priority for policymakers in the last eight years, but how far have they succeeded?

To assess the state of Europe’s banks today, it is useful to consider three different yet interacting elements: institutional reform, reform of the rules and standards imposed on banks, and the practical achievements in terms of the measurable strength of banks’ balance sheets.

“Severe stress tests assuming a domestic UK recession and a severe slowdown in China have shown that British banks could now survive”

On the institutional front, it became clear as the reasons behind the crisis were examined that the EU’s regulatory architecture was in need of attention, in the single financial market as a whole, but particularly in the eurozone. The De Larosière report of 2009 made an initial attempt at a solution, proposing three new Authorities, for banking, securities and insurance, to replace the existing network of committees. In the absence of a new treaty, these authorities – one of which being the European Banking Authority in London – were endowed with only modest powers. But despite that, the EBA was charged with working towards a single rulebook for the EU, and with setting the terms of pan-European stress tests to determine just how robust banks would be in the event of a new recession or market disruptions.

The stress tests did identify some weak institutions in need of more capital, but they largely failed to restore confidence, as many market participants believed that national supervisors lacked the will to highlight domestic vulnerabilities. The problem was particularly acute in the single currency area, as the European Central Bank (ECB) was the only institution capable of supplying euros to illiquid banks, but had no direct oversight of them. The Single Supervisory Mechanism has in less than 18 months injected new discipline into bank governance, and has scrupulously rooted out supervision inconsistencies across the continent.

But what matters more than the institutional arrangements is the nature and rigour of the capital rules that supervisors police. Most of the new capital rules have been developed on a global basis in the Basel Committee, but they are implemented in Europe by means of directives, which ought to ensure thorough and even implementation. The EU’s fourth Capital Requirement Directive in fact goes further than Basel requires, and was complemented by a new Banking Recovery and Resolution Directive, which harmonises the rules and procedures for dealing with a banking crisis.

I have little doubt that the regulatory environment is far tougher now than it was before the crisis, but it would be wrong to think that all its imperfections have been ironed out. Speaking to the European Parliament in February, Daniele Nouy, the Chair of the ECB’s supervisory board, acknowledged that many national discretions and much of the implementation inconsistencies remain, even in the eurozone. As she put it, ‘these divergences distort the level playing field and make our lives as supervisors more complicated.’ Some may feel that complicating supervisors’ lives is a small price to pay for the justified application of the subsidiarity principle, but it presents a real problem for the banking industry as a whole if the system lacks full credibility. Legislative action is urgently needed to end these divergences, which often go to the heart of the viability of a bank – differing treatment of tax assets or loan impairments, for example. But the most important point has to be whether there is solid evidence that European banks are indeed adequately robust with reserves to carry them through the next real-life stress test. The market disruption at the beginning of this year, and its severe impact on European banks’ share prices, put that question into sharp relief. The data suggest that, in aggregate, EU banks are indeed stronger. The Common Equity Tier I ratios of systemically significant companies have increased from 9% in 2012 to 13% since the latest EBA stress test, and are set to rise further. But there are still weak outliers, especially in southern Europe.

“Individual banks will need to be strengthened, but instigating an aggressive approach across the board would be dangerously destabilising”

Loud voices in academia are arguing that the improvements so far made are not enough. Sir John Vickers, author of a report for the British government on banking reform, argued in February that the volatility in bank stocks shows that even more reserves are needed, and that the Bank of England has diluted the reforms he proposed in 2011. He claimed the Bank ‘is proposing a substantially milder equity requirement for British banks’ than he believes necessary. The Bank of England, though, firmly rejected the criticism, maintaining that severe stress tests assuming a domestic UK recession and a severe slowdown in China have shown that British banks could now survive in very challenging economic conditions. Both the Bank of England and the ECB have reached the view that the reforms already implemented should be allowed time to bed in.

That seems a wise conclusion, at least for the time being. There is certainly a theoretical case for banks to hold much higher equity capital; but to do so, a bank would either have to raise new equity or cut back on lending. In a heavily bank-based economy, doing the latter will have important implications for growth. The long-term answer is to develop stronger alternative sources of finance, and the Capital Markets Union is designed to achieve that, but it will take a long time to change the habits of European banks and, more importantly, of their clients. The right priority for now is to ensure that all the changes made to date are fully implemented, and are consistent between countries. There are individual banks that will need to be strengthened and perhaps restructured, but instigating an even more aggressive approach across the board would be dangerously destabilising.

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General : A delegation from the civil liberties committee went to Calais in northern France yesterday to assess the situation of people gathering there with the aim of crossing the Channel. The delegation, led by Portuguese S&D member Ana Gomes, visited facilities for migrants and refugees and met with representatives from local authorities, non-governmental organisations as well as French-British border authorities.

Source : © European Union, 2016 - EP

General : A delegation from the civil liberties committee went to Calais in northern France yesterday to assess the situation of people gathering there with the aim of crossing the Channel. The delegation, led by Portuguese S&D member Ana Gomes, visited facilities for migrants and refugees and met with representatives from local authorities, non-governmental organisations as well as French-British border authorities.

Source : © European Union, 2016 - EP

General : Terrorists have been able to make use of reconverted weapons but new new rules aim to put an end to this. Yesterday the internal market committee approved an update of the EU firearms directive to ensure that any firearm which has been converted to firing blanks continues to be covered by EU law. UK ECR member Vicky Ford, the MEP responsible for steering the new rules through Parliament, said: “The goal of this legislation was to close the loophole that was exploited during the Paris attacks.”

Source : © European Union, 2016 - EP

General : Terrorists have been able to make use of reconverted weapons but new new rules aim to put an end to this. Yesterday the internal market committee approved an update of the EU firearms directive to ensure that any firearm which has been converted to firing blanks continues to be covered by EU law. UK ECR member Vicky Ford, the MEP responsible for steering the new rules through Parliament, said: “The goal of this legislation was to close the loophole that was exploited during the Paris attacks.”

Source : © European Union, 2016 - EP