Hearing of the Committee on Economic and Monetary Affairs of the European Parliament
Mar 18 2021
Hearing of the Committee on Economic and Monetary Affairs of the European Parliament

Introductory statement by Christine Lagarde, President of the ECB, at the Hearing of the ECON Committee of the European Parliament (by videoconference)

Frankfurt am Main, 18 March 2021

Madam Chair,
Honourable members of the Economic and Monetary Affairs Committee,
Ladies and gentlemen,
I am very happy to appear again before the Committee in our first regular hearing this year.
Today marks the one-year anniversary of the extraordinary Governing Council meeting during which we decided to launch the pandemic emergency purchase programme (PEPP).
Standing where we are today, the economic situation looks brighter now than it did back then and we can expect it to improve over 2021. In the short term, however, the economic outlook for the euro area remains surrounded by uncertainty due to the dynamics of the pandemic and the speed of vaccination campaigns. The severe impact that the pandemic continues to have on not just the economy, but on all aspects of the lives of many Europeans, does not allow us to “celebrate” the anniversary of the PEPP. It is nevertheless important to look back and proudly acknowledge our collective efforts in shielding European citizens from even worse outcomes.
In my remarks today, I will focus on the euro area economic outlook and the ECB’s monetary policy stance in the light of the Governing Council’s decisions taken on Thursday of last week. I will conclude by discussing the policy mix required to secure a solid path to economic recovery.

The current macroeconomic outlook

The rebound in global demand and additional fiscal measures are supporting global and euro area activity. At the same time, persistently high coronavirus (COVID-19) infection rates, the spread of virus mutations, and the associated extension and tightening of containment measures continue to have a negative impact on euro area economic activity. As a result, real gross domestic product (GDP) is likely to contract again in the first quarter of the year after declining by 0.7 per cent in the fourth quarter of 2020.
Looking ahead, the ongoing vaccination campaigns, together with the gradual relaxation of containment measures underpin expectation of a firm rebound in economic activity in the second half of 2021. Over the medium term, we expect the recovery in demand, as containment measures are lifted, to be supported by favourable financing conditions, and an expansionary fiscal stance.
This assessment is also reflected in the March 2021 ECB staff macroeconomic projections for the euro area, which foresee annual real GDP growth at 4.0 per cent in 2021, 4.1 per cent in 2022 and 2.1 per cent in 2023, broadly unchanged compared with the December 2020 Eurosystem staff macroeconomic projections.[1]

The risks surrounding the euro area growth outlook over the medium term have become more balanced owing to better prospects for the global economy and progress in vaccination campaigns. However, downside risks remain in the near term, mainly related to the spread of virus mutations and the implications of the ongoing pandemic for economic and financial conditions.

Euro area annual inflation has picked up over recent months, mainly on account of some transitory factors. Headline inflation is likely to increase in the coming months, but some volatility is expected throughout 2021 reflecting the changing dynamics of the idiosyncratic factors which are currently pushing inflation up but which can be expected to fade out early next year.
Underlying price pressures are expected to increase somewhat this year due to current supply constraints and the recovery in domestic demand. Nevertheless, we judge that these pressures will remain subdued overall, also reflecting low wage dynamics and the past appreciation of the euro. Once the impact of the pandemic fades, the unwinding of the high level of slack, supported by accommodative fiscal and monetary policies, will contribute to a gradual increase in inflation over the medium term. Survey-based measures and market-based indicators of longer-term inflation expectations remain at subdued levels.
While our latest staff projection exercise foresees a gradual increase in underlying inflation pressures, the medium-term inflation outlook – with projected annual inflation at 1.5 per cent in 2021, 1.2 per cent in 2022 and 1.4 per cent in 2023 – remains broadly unchanged from the staff projections in December 2020 and below our inflation aim.

The ECB’s monetary policy stance and effectiveness

Against this background, preserving favourable financing conditions over the pandemic period remains essential to reduce uncertainty and bolster confidence, thereby underpinning economic activity and safeguarding medium-term price stability.
Let me further elaborate on our assessment of financing conditions. This is defined by a holistic and multifaceted set of indicators.
It is holistic because we consider a broad array of indicators, spanning the entire transmission chain of monetary policy from risk-free interest rates and sovereign bond yields to corporate bond yields and bank credit conditions. It is also multifaceted, because we take a sufficiently granular view that enables us to detect movements in specific market segments in a timely manner.
Last week, as it received a new round of staff projections, the Governing Council conducted a joint assessment of these multiple set of indicators against the evolution of our inflation outlook since the last projection exercise. We concluded that the increase in risk-free market interest rates and sovereign bond yields that we have observed since the start of the year could spur a tightening in the wider set of financing conditions, as banks use them as key reference points for determining credit conditions. Therefore, if sizeable and persistent, increases in those market interest rates, when left unchecked, may become inconsistent with countering the downward impact of the pandemic on the projected path of inflation.
Based on this joint assessment, the Governing Council announced that it expects purchases under the PEPP over the next quarter to be conducted at a significantly higher pace than during the first months of this year. While records of our weekly purchases will continue to be distorted by short-term noisy factors – such as occasionally lumpy redemptions – the step-up in the run-rate of our programme will become visible when ascertained over longer time intervals.
Purchases will be implemented flexibly according to market conditions and always with a view to preventing a tightening of financing conditions that is inconsistent with countering the downward impact of the pandemic on the projected path of inflation. In addition, the flexibility of purchases over time, across asset classes and among jurisdictions will continue to support the smooth transmission of monetary policy. If favourable financing conditions can be maintained with asset purchase flows that do not exhaust the envelope over the net purchase horizon of the PEPP, the envelope need not be used in full. Equally, the envelope can be recalibrated if required to maintain favourable financing conditions to help counter the negative pandemic shock to the path of inflation.
The PEPP is not the only tool the ECB is using to support favourable financing conditions over the pandemic period for all sectors of the economy.
The third series of targeted longer-term refinancing operations (TLTRO III) remains an attractive source of funding for banks. The TLTROs’ built-in incentive structure ensures that banks have access to ample funding at very favourable conditions if they maintain their lending to the real economy. This supports bank-based financing conditions for firms and households. Likewise, the remaining monetary policy instruments in place – ranging from our key ECB interest rates to the Governing Council’s forward guidance and the Asset Purchase Programme – make a crucial contribution to the ample degree of monetary accommodation that is necessary to support economic activity and the robust convergence of inflation to our definition of price stability.
We will also continue to monitor developments in the exchange rate regarding their possible implications for the medium-term inflation outlook. We stand ready to adjust all of our instruments, as appropriate, to ensure that inflation moves towards our aim in a sustained manner, in line with our commitment to symmetry.

The path to a solid economic recovery

Looking ahead, decisive action in other policy areas to support the recovery remains essential and should build on the favourable financing conditions prevailing in the euro area.
When appearing before the European Parliament last month, I pointed out that the strength of Europe’s crisis response over the last twelve months crucially depended on the strength of national and European responses across all policy areas: monetary, fiscal, supervisory and regulatory.
We should continue to rely on the same recipe when it comes to securing a path to a solid economic recovery.
An ambitious and coordinated fiscal stance remains critical. National fiscal policies should continue to provide critical and timely support to firms and households most exposed to the pandemic and the associated containment measures. At the same time, these measures should, as much as possible, remain temporary and targeted in nature to address vulnerabilities effectively and support a swift recovery.
By brightening economic prospects for firms and households, fiscal policy would also strengthen the transmission of our monetary policy measures. Fiscal policy can also act as a catalyst to transform our economies in the recovery phase. This is why the NextGenerationEU package should become operational without delay.
In the coming weeks, Member States should ensure a timely ratification of the Own Resources Decision and should finalise their recovery and resilience plans. The European Parliament can play an important role in making sure that these plans are well-designed and that they include productivity-enhancing structural policies to address long-standing weaknesses and accelerate the green and digital transitions.
All of us, across all policy levels, should ensure that we use the thrust of the recovery to transform our economies and make them fit for the world of tomorrow, for instance by reducing and preventing climate risks. The ECB is ready to play its part in line with its mandate. This morning we published the preliminary results of our first economy-wide climate stress test to help both authorities and financial institutions assess the impact of climate risks over the next 30 years.

Conclusion

When we announced the PEPP one year ago, the Governing Council declared that it would do everything necessary within its mandate and explore all options and all contingencies to support the economy through this shock.
Looking back at the past year, I think we can affirm that we have delivered on this commitment.
But there is no room for complacency – the ECB will continue to deliver on its mandate and support the recovery with all appropriate measures.
I now stand ready to take your questions.

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China will respond to European Union sanctions
Mar 17 2021
China will respond to European Union sanctions
The EU is planning punitive measures for anti-Uyghur repression in Xinjiang. In April, it will also approve sanctions against China for violating the “one country, two systems” principle in Hong Kong. The Chinese admit that US restrictions are hurting. The EU and China are also split over the South China Sea and Taiwan.
Brussels (AsiaNews) – China has warned the European Union against proposed sanctions for its human rights violations in Xinjiang.Despite the recent signing of a major bilateral investment agreement, the gap between China and Europe appear to be widening, as Europeans express concerns over the situation in Hong Kong and Chinese pressures on Taiwan and the South China Sea.

China’s ambassador to the EU Zhang Ming spoke threateningly about Xinjiang yesterday during an online debate organised by the European Policy Centre.

On 22 March, EU foreign ministers are expected to approve sanctions against four senior Chinese officials and one entity because of China’s repression against Uyghurs and other Turkic groups in Xinjiang, which the indigenous population calls East Turkestan.

According to expert data, backed by the United Nations, more than a million Muslims in the region have been arbitrarily held in concentration camps.

Recent press revelations have documented the existence of labour camps in the Chinese-held autonomous region, where hundreds of thousands of Uyghurs, Kazakhs and Kyrgyz have been forced to work, especially picking cotton.

According to some scholars, the Chinese government is also conducting a campaign of forced sterilisations to control the growth of the Uyghur population.

China has denied all accusations, claiming that the camps in Xinjiang are vocational centres set up as part of a plan to reduce poverty and fight against terrorism and separatism.

Ambassador Zhang said the deradicalisation centres for Muslims are no different from those that exist in the United States, France and Britain.

China is afraid of sanctions, an instrument often criticised. Last week, its foreign ministry admitted that US restrictions, especially the ban on cotton imports, are hurting Xinjiang’s economy. The problem with European sanctions is that they are probably too weak.

Meanwhile, many European countries are reconsidering their approach towards China. Lithuania wants, for example, to promote cooperation with Beijing on the basis of respect for human rights, democracy and the rule of law.

Lithuanian authorities are also concerned about the future of Hong Kong. In April, the EU is set to take steps to punish Beijing’s decision to change the electoral law of the former British colony.

The move by China’s government is considered by the Union to be contrary to the principle of “one country, two systems”, which should guarantee Hong Kong some political and economic autonomy from the mainland.

NATO too has called on the EU and the US to act together to stop China’s aggressive policy around the world.

France recently sent some ships to East Asia, which will twice cross the South China Sea, 90 per cent of which is claimed by China

Germany and the United Kingdom plan to do the same this year, with the UK sending one of its two new air carriers.

In the European Parliament, several Members are also calling for support for Taiwan, seen as a virtuous example of democracy. For communist China, the island is a rebel province, to be retaken by force if necessary.

According to French media, Chinese Ambassador to France Lu Shaye last month warned Senator Alain Richard against visiting Taiwan this summer.

In a scathing letter, Lu dismisses the trip as a violation of the “one China principle” and a “wrong” signal of support for Taiwanese independence. Some members of the French Senate have promised a “clear response” to the Chinese envoy’s attacks.

Chinese diplomats have acted the same way in other cases; for example, Prague Mayor Zdeněk Hřibin was attacked for twinning his city with Taipei.

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Coronavirus passes proposed by European Union to allow its 450 million residents to travel freely across the bloc by summer
Mar 17 2021
Coronavirus passes proposed by European Union to allow its 450 million residents to travel freely across the bloc by summer

The European Commission foresees the creation of certificates aimed at facilitating travel between the 27 EU member nations. The plan is set to be discussed during a summit of EU leaders next week.

The topic of vaccine certificates has been under discussion for weeks in the EU, where it proved to be divisive. The travel industry and southern European countries with tourism-dependent economies like Greece and Spain have pushed for the quick introduction of a program that would help eliminate quarantines and testing requirements for tourists.

But several other EU members, including France, argued that it would be premature and discriminatory to introduce such passes since a large majority of EU citizens haven’t had access to vaccines so far.

To secure the participation of all member countries, the commission proposed delivering free “Digital Green Certificates” to EU residents who can prove they have been vaccinated against COVID-19, but also to those who have tested negative for the virus or can prove they recovered from it.

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the largest impact venture capital fund for startups in Spain is supported by Ship2B Ventures, EIF and Banco Sabadell
Mar 17 2021
the largest impact venture capital fund for startups in Spain is supported by Ship2B Ventures, EIF and Banco Sabadell
  • The BSocial Impact Fund, which already reached EUR 38 million in its second closing, is supported by Ship2B Ventures, the European Union and the EIF under the EFSI Equity social impact pilot as well as by Banco Sabadell.
  • The objective of the fund is to invest in social enterprises that aim to improve the life of vulnerable groups, improve access to education and mitigate the effects of climate change.
  • The fund is also supported by AXIS, Repsol Impacto Social, Fundación Anesvad, and leading families in the business environment such as Puig, Elias, Castelló, Knuth, Pont and Ângela Impact Economy, and by leading entrepreneurs such as the founders of Holaluz, Privalia, Socialpoint, SocialCar, Trovit, Cooltra and Glovo.

Ship2B Ventures, a venture capital management firm specialized in impact investing based in Barcelona, together with the European Union and European Investment Fund (EIF), under the EFSI Equity social impact pilot, and Banco Sabadell back the launch of the BSocial Impact Fund, an impact venture capital fund that already reached EUR 38 million in its second closing and aims to exceed EUR 45 million.

The new fund will be the largest impact venture capital fund for startups in Spain and it will focus on seed and early-stage social enterprises, targeting startups that aim to tackle three major challenges: improve the quality of life of vulnerable groups (e.g. the elderly, people with disabilities or with chronic illness), fight climate change and eradicate education skill gaps. With this transaction, the European Union and the EIF support social entrepreneurship and social impact investors, aiming to develop and scale up the European social impact ecosystem.

The fund is also supported by other institutional investors such as AXIS-venture capital subsidiary of Grupo ICO-, Repsol Impacto Social and Fundación Anesvad, by leading families such as Puig, Elias, Castelló, Knuth, Pont, Ângela Impact Economy as well as by successful entrepreneurs such as the founders of Holaluz, Privalia, Socialpoint, SocialCar, Trovit, Cooltra and Glovo.

Executive Vice-President of the European Commission, Valdis Dombrovskis, said: “Thanks to the support of the Investment Plan and of the European Investment Fund, the Spanish BSocial impact fund will invest in early-stage social businesses. The new fund will be the largest impact venture capital fund for startups in Spain and address some of the main challenges of our times: increasing the quality of life for vulnerable people, mitigating the effects of climate change, and improving access to education for all.”

Maite Fibla y Xavier Pont, co-founders and managing partners of Ship2B Ventures, stated: “The attractiveness of the fund’s investment thesis among investors and institutions has pushed us near the EUR 40 million in our second closing. Looking at our commitments pipeline, we estimate a final closing above EUR 45 million”. “In the coming years we will invest in 20 highly innovative startups with extraordinary teams that respond to our challenges while providing strong financial returns for our investors.”

Alain Godard, EIF Chief Executive, also added: “We are proud to continue supporting one of the most recognised impact actors in the Spanish ecosystem to consolidate their social impact activity and continue playing a key role in developing the market. EIF´s collaboration since 2016 has proven fundamental for the General Partners to develop their investing activities; which together with the Foundation’s accelerator programmes, provide a value-added proposition for social entrepreneurs in the first stages of development. The fund´s three main challenges address three key priorities for the EIF.”

Raúl Rodríguez, director of BS Capital, added “impact investing is key for the future. Sabadell and its Foundation have a close relationship with Ship2B, so we were eager to be part of the BSocial Impact Fund and seek a social return through its investments. We decided to become an anchor investor and sponsor it from the very beginning.”

Leading investors, entrepreneurs and experts join Ship2B Ventures

Ship2B Ventures was founded by Maite Fibla and Xavier Pont and has a team of five professionals with expertise in investments, social and environmental impact, and health. Daniel Sánchez, partner of Nauta Capital, will be the non-executive chairperson of Ship2B Ventures. Further support will be provided by renowned experts from  the venture capital industry such as Lluís Seguí (Miura Private Equity), Carles Florensa (Business Angel), and Cristina Marsal (Sandman Capital); leading entrepreneurs such as José Manuel Villanueva and Lucas Carné (Privalia), Carlota Pi, Oriol Vila and Ferran Nogué (Holaluz), Iñaki Ecenarro (Trovit), Horacio Martos and Andrés Bou (Social Point), Oscar Pierre (Glovo), Mar Alarcon and Francesc Queralt (Social Car), and Timo Buetefisch (Cooltra); and leading sectorial experts such as Jaime del Barrio (EY and Asociación de Salud Digital), Consuelo Crespo (UNICEF España y Oxfam), Concha Oliu (BStartup), and Ainhoa Grandes and Clara Navarro (Ship2B Foundation).

The team has been investing in social and environmental impact startups for more than eight years through the Ship2B Foundation. It manages two investment vehicles, Impact Equity BF, and Equity4Good, which are co-invested by the European Investment Fund with Impact Equity BF. The total AUM of these investment vehicles is 4.5 million euros, invested across 23 impact startups such as Qida, Psious, ADmit Therapeutics and Fiction Express. The firm has already executed its first exit (Koiki).

About Ship2B Ventures

Ship2B Ventures a venture capital firm that invests in the best impact startups. As impact investors they seek to generate triple profitability: economic, social and environmental. Ship2B Ventures combine the best of the venture capital world with the impact world, maximizing the financial profitability of their investments with a clear intention to generate, manage and measure their impact.

About European Investment Fund

The European Investment Fund (EIF) is part of the European Investment Bank Group. Its central mission is to support Europe‘s micro, small and medium-sized businesses (SMEs) by helping them to access finance. EIF designs and develops venture and growth capital, guarantees and microfinance instruments which specifically target this market segment. In this role, EIF fosters EU objectives in support of innovation, research and development, entrepreneurship, growth, and employment.

About the European Fund for Strategic Investments (EFSI) Equity social impact pilot

EFSI Equity is a facility managed by the European Investment Fund (EIF) that provides equity investments to or alongside financial intermediaries focusing on the areas of early stage, growth stage and expansion financing. Through the EFSI Equity social impact pilot, the European Union and EIF support social entrepreneurship and social impact investors, aiming to develop and scale up the European social impact ecosystem.

About Banco Sabadell

With a history stretching back 139 years, Banco Sabadell is Spain’s fourth largest banking group and one of the best capitalised Spanish financial institutions. Banco Sabadell has assets in excess of 230 billion euros, a network of more than 2,000 branches and has earned the trust of 12 million customers. Banco Sabadell has gone through a historic period of growth in the last decade, demonstrating its strength and its international footprint, as well as expanding into Mexico and the United Kingdom.

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European Parliament condemns Turkey’s use of mercenaries in Karabakh
Mar 16 2021
European Parliament condemns Turkey’s use of mercenaries in Karabakh

European Parliament condemns Turkey’s use of mercenaries in KarabakhMarch 16, 2021 – 16:59 AMT

PanARMENIAN.Net – The European Parliament has firmly condemned Turkey’s use of Syrian mercenaries in the Nagorno-Karabakh conflict.

In a resolution marking 10 years after the uprising in Syria, the Parliament cited the OSCE Minsk Group co-chair countries – Russia, France and the United States – as saying that Turkey has transferred Syrian mercenaries to Karabakh.

In the war against Artsakh (Karabakh), Turkey supported Azerbaijan militarily, also by transferring terrorist mercenaries from the Middle East to fight against Karabakh. Armenia was the first to report on Turkey’s deployment of thousands of Syrian fighters to Azerbaijan. International media publications followed suit, as did reactions from France, Russia, Iran and Syria. The Nagorno-Karabakh Defense Army has already unveiled footage from the interrogation of two such terrorists captured on the front.

The resolution called on Turkey “to withdraw its troops from Northern Syria which it is illegally occupying outside of any UN mandate; condemns Turkey’s illegal transfers of Kurdish Syrians from occupied Northern Syria to Turkey for detention and prosecution in violation of Turkey’s international obligations under the Geneva Conventions; urges that all Syrian detainees who have been transferred to Turkey be immediately repatriated to the occupied territories in Syria; is worried that Turkey’s ongoing displacements could amount to ethnic cleansing against the Syrian Kurdish population; stresses that Turkey’s illegal invasion and occupation has jeopardised peace in Syria, the Middle East and the Eastern Mediterranean; firmly condemns Turkey’s use of Syrian mercenaries in conflicts in Libya and Nagorno-Karabakh, in violation of international law.”

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EU launches legal action against Britain over Northern Ireland and alleged Brexit accord breach
Mar 16 2021
EU launches legal action against Britain over Northern Ireland and alleged Brexit accord breach
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    The European Union launched legal action against Britain on Monday for unilaterally changing trading arrangements for Northern Ireland that Brussels says breach the Brexit divorce deal agreed with London last year.

    The bloc has sent a letter of formal notice to kick-start an “infringement procedure”, which could lead to fines being imposed by the EU's top court, although that could be at least a year off, leaving time for a solution to be found. Britain's withdrawal agreement with the EU leaves the British-ruled province of Northern Ireland in the EU single market for goods and so requires checks on goods arriving there from other parts of the United Kingdom.

Some of those checks are meant to start when a grace period expires at the end of March. The plans have already disrupted some supplies reaching supermarkets in Northern Ireland.

Britain says it intends to extend the grace period unilaterally until Oct 1, a decision the EU letter demands it reverses. Britain said it has not violated the agreement and that it would reply to the EU’s legal action “in due course”.

The United States called on both sides to preserve the Good Friday accord protecting peace in Northern Ireland, with the White House urging them to “prioritize pragmatic solutions”.

Maros Sefcovic, the top EU official in charge of UK relations, has also sent a separate letter to British counterpart David Frost, seeking talks in good faith to resolve the issue this month.

Prime Minister Boris Johnson said on Monday the extension was simply a technical decision aimed at being fair. The protocol, he said, should guarantee trade between Britain and Northern Ireland, as well as across Northern Ireland’s land border with Ireland.

“That’s all we’re trying to sort out with some temporary and technical measures which we think are very sensible, but obviously we’ll look forward to our discussions with our EU friends and see where we get to,” he said.

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North Ireland protocol is solution, not problem, says EU envoy to UK
Mar 16 2021
North Ireland protocol is solution, not problem, says EU envoy to UK

By Reuters Staff

1 Min Read

FILE PHOTO: Container ships are berthed at the Port of Belfast, Northern Ireland January 2, 2021. REUTERS/Phil Noble

LONDON (Reuters) – The Northern Ireland protocol painstakingly negotiated between Britain and the European Union is the solution and not the problem for the province as it deals with the difficult fallout from Brexit, the EU’s envoy to the United Kingdom said.

Some in Northern Ireland are calling for the protocol to be scrapped on the grounds that it creates trade barriers between the province and the rest of the United Kingdom in order to protect the European single market.

“This protocol is a result of long and complex negotiations … I tend to say that the protocol is the solution and not the problem,” Joao Vale de Almeida said on BBC radio.

“Those who oppose the protocol today, they are not presenting any alternative because in fact there isn’t (one),” he said.

Reporting by Estelle Shirbon, editing by Andy Bruce

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38/2021 : 16 March 2021 – Judgments of the Court of Justice in Cases C-562/19 P,C-596/19 P
Mar 16 2021
38/2021 : 16 March 2021 – Judgments of the Court of Justice in Cases C-562/19 P,C-596/19 P

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EU starts legal action against Britain
Mar 16 2021
EU starts legal action against Britain

The European Union said Monday that it is starting legal action against the United Kingdom, arguing the former member does not respect the conditions of the Brexit withdrawal agreement and is violating international law.

The 27-nation EU is objecting to Britain’s unilaterally extending a grace period beyond April 1 that applies to trade on the island of Ireland, where the EU and the U.K. share a land border and where a special trade system was set up as part of the Brexit divorce deal.

“The recent measures once again set the U.K. on the path of a deliberate breach of its international law obligations and the duty of good faith that should prevail,” EU Vice President Maros Sefcovic wrote to his U.K. counterpart David Frost.

It marks a further worsening of relations between the two sides since a divorce transition period ended on Jan. 1. Disputes have ranged from fights over vaccines to the full diplomatic recognition of the EU in Britain and now again the terms of the agreement.

On March 3, the U.K. decided to unilaterally extend a grace period until October on checks for goods moving between Britain and Northern Ireland.

Northern Ireland is part of the United Kingdom but remained part of the EU’s single market for goods after Brexit to avoid a hard border that could revive sectarian violence. That means that products arriving from Britain face EU import regulations.

A U.K. government spokesperson said it will respond to the EU Commission “in due course,” insisting the measures are temporary and aimed at reducing disruptions in Northern Ireland.

“They are lawful and part of a progressive and good faith implementation of the Northern Ireland Protocol,” the spokesperson said in a statement. “Low key operational measures like these are well precedented and common in the early days of major international treaties. In some areas, the EU also seems to need time to implement the detail of our agreements. This is a normal process when implementing new treaties and not something that should warrant legal action.”

FILE – In this file photo dated Tuesday, Feb. 2, 2021, vehicles disembark from a ferry arriving from Scotland at the port of Larne, Northern Ireland. Outlawed Loyalist paramilitary groups in Northern Ireland have written to Britain’s prime minister Thursday March 4, 2021, saying they are temporarily withdrawing their support for the historic 1998 peace accord because of disruption caused by new post-Brexit trade rules. (AP Photo/Peter Morrison, FILE)
FILE – In this Wednesday, Dec. 9, 2020 file photo, a worker raises the Union Flag prior a meeting between European Commission President Ursula von der Leyen and British Prime Minister Boris Johnson at EU headquarters in Brussels. Relations between the European Union and recently departed Britain took another diplomatic dip on Wednesday, March 10, 2021 when the EU envoy in London was summoned to explain comments that Britain had issued a vaccine export ban. (AP Photo/Francisco Seco, File)
FILE – In this file photo dated Friday, Jan. 1, 2021, lorries disembark a ferry from Scotland, after arriving at the P&O ferry terminal in the port at Larne, Northern Ireland. Outlawed Loyalist paramilitary groups in Northern Ireland have written to Britain’s prime minister Thursday March 4, 2021, saying they are temporarily withdrawing their support for the historic 1998 peace accord because of disruption caused by new post-Brexit trade rules. (AP Photo/Peter Morrison, FILE)
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Turkey issues diplomatic note to Israel, Greece, EU over subsea power grid project
Mar 16 2021
Turkey issues diplomatic note to Israel, Greece, EU over subsea power grid project

Photo: EuroAsia Interconnector

Click to read the article in Turkish

The Ministry of Foreign Affairs expressed strong reservations over not being consulted over an EU-backed project in the Eastern Mediterranean.

Ankara sent a diplomatic note to the Greek and Israeli embassies as well as the Delegation of the European Union saying that any further action should not take place without seeking permission from Turkey, the state-run Anadolu Agency reported, citing diplomatic sources who spoke on the condition of anonymity.

On March 8, Israel, Greece, and Southern Cyprus signed a memorandum of understanding on the EuroAsia Interconnector, which connects the electricity grids of the three states through a sub-sea cable.

The diplomatic note stated that the grid passes through Turkey’s territorial waters, the sources said.

The project’s visual documentation showed the planned route of the subsea electricity cable includes Turkey’s continental shelf in the Eastern Mediterranean, the sources added.

According to international law, if a preliminary study is required before laying the cables, Turkey’s permission must be sought, they argued.

If a preliminary study is not necessary, then Turkey should be informed in advance, added the sources. (EKN/VK)

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EU Starts Legal Process over UK’s Alleged Brexit Protocol Breach
Mar 16 2021
EU Starts Legal Process over UK’s Alleged Brexit Protocol Breach


BRUSSELS The European Union sent on Monday a formal letter to the United Kingdom for allegedly breaching the customs agreement on Northern Ireland within the Brexit deal.The letter marks the first step in an infringement process, the European Commission said in a statement.

The Protocol on Ireland and Northern Ireland is the only way to protect the Good Friday (Belfast) Agreement and to preserve peace and stability, while avoiding a hard border on the island of Ireland and maintaining the integrity of the EU single market, Commission vice-president Maro efčovič said in the statement.

The EU and the UK agreed the Protocol together. We are also bound to implement it together. Unilateral decisions and international law violations by the UK defeat its very purpose and undermine trust between us.

The UKs government on March 3 said it would delay by six months the implementation of custom checks on goods and pet travel from Great Britain to Northern Ireland, a UK territory that borders the Republic of Ireland, an EU member state.

The Northern Ireland protocol was a major pillar of the Brexit deal designed to prevent a hard border on the island of Ireland, a sensitive topic enshrined in the 1998 Good Friday agreement, an international peace deal that put an end to decades of sectarian violence.

The UK must properly implement it if we are to achieve our objectives. That is why we are launching legal action today, efčovič added.

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Brexit Wars Recommence as EU Launches Legal Action Against UK over Northern Ireland
Mar 16 2021
Brexit Wars Recommence as EU Launches Legal Action Against UK over Northern Ireland

The European Union is launching legal action against the United Kingdom over its efforts to protect trade between the British mainland and Northern Ireland, vindicating critics of Boris Johnson’s deals with the bloc who said they ensured Brexit was by no means “done”.

The terms Prime Minister Johnson agreed with the bloc on Northern Ireland were particularly onerous, with Northern Ireland, or Ulster, being left within the regulatory domain of the EU, and a partial customs border between the British province and England, Scotland, and Wales being imposed.

A so-called “grace period” before these conditions were imposed on Northern Ireland fully was permitted until the end of March, but the British government is now extending this until October unilaterally as Northern Irish people and businesses face shortages and other difficulties, compounded by the coronavirus pandemic.

“The [Northern Ireland protocol] is there to uphold and to guarantee, to buttress the Good Friday Agreement, the peace process,” explained Johnson.

“That always had the symmetry in it: it was very very important that the wishes, the consent of both the communities in Northern Ireland, should be properly reflected in the outcome, and that it should guarantee, not just trade and movement, north, south; but east, west as well,” he said.

The Prime Minister was likely referring to the unhappiness of the Democratic Unionist Party (DUP), which is the main representative of the majority in Northern Ireland who wish to remain in the United Kingdom rather than join the Irish republic, with the way Johnson’s deals have created barriers between Ulster and the rest of the British Union.

“The Protocol on Ireland and Northern Ireland is the only way to protect the Good Friday (Belfast) Agreement and to preserve peace and stability, while avoiding a hard border on the island of Ireland and maintaining the integrity of the EU Single Market,” insisted Maros Sefcovic for the European Commission.

“Unilateral decisions and international law violations by the UK defeat its very purpose and undermine trust between us,” he lectured — somewhat ironically, considering the European Commission announced it would be imposing a hard border between Ireland and Northern Ireland for vaccines just weeks ago without even bothering to consult the Irish government in Dublin, before being forced into a humiliating climbdown.

“The UK must properly implement it if we are to achieve our objectives. That is why we are launching legal action today,” Sefcovic added — although he did leave the door open to a resolution of the dispute through talks, “without recourse to further legal means.”

The British government, for its part, is insisting that its moves in Northern Ireland are “lawful and part of a progressive and good faith implementation of the Northern Ireland Protocol.”

“Low-key operational measures like these are well precedented and common in the early days of major international treaties. In some areas, the EU also seems to need time to implement the detail of our agreements. This is a normal process when implementing new treaties and not something that should warrant legal action,” a spokesman insisted.

Whether or not the EU is implementing its deals with Brexit Britain on Northern Ireland and trade remains an open question, with EU officials having on one occasion seized a lorry driver’s ham sandwiches at the border on the pretext of them being a prohibited food import and saying “Welcome to Brexit, sir”.

The EU legal action could end up in the European Court of Justice (ECJ), according to The Times — a highly embarrassing possibility for Prime Minister Johnson and the Conservative party, who have always tried to give the impression that their deals had secured full independence from the EU court, in which Britain now has no judicial representation.

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White House urges EU and UK to protect Good Friday Agreement
Mar 16 2021
White House urges EU and UK to protect Good Friday Agreement

Reuters and Press Association

The White House has urged Britain and the European Union to preserve the Good Friday Agreement after the EU launched legal action against Britain for changing trading arrangements Brussels says breach the Brexit divorce.

“We continue to encourage both the European Union and the UK government to prioritise pragmatic solutions to safeguard and advance the hard won peace in Northern Ireland,” White House spokeswoman Jen Psaki said.

“President Biden has been unequivocal in his support for the Belfast Good Friday agreement. This agreement has been the bedrock of peace, stability and prosperity for all the people of Northern Ireland.”

Before his election, the US president said the Agreement cannot become a casualty of Brexit.

The UK is seeking a bilateral trade deal with the US.

Following a conversation last month, British prime minister Boris Johnson sought to reassure Mr Biden – who is fiercely proud of his Irish roots – that he remained firmly committed to the peace process.

Mr Johnson said then: “This is fundamental for us, the Anglo-Irish Agreement, the peace agreement, the Good Friday process, the Belfast Agreement, these agreements are absolutely crucial.”

Pressed on his support for the Northern Ireland protocol in the Brexit Withdrawal agreement following the recent row with the EU over vaccines, he replied: “We want to make sure that there’s free movement, north-south, free movement east-west, and we guarantee the rights of the people of Northern Ireland, of course.”

President Biden’s ancestral homes in Co Mayo and Co Louth celebrated his inauguration with champagne and cake while waving Irish and American flags.

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EUROPEAN UNION WARNS OF SANCTIONS OVER UGANDAN ELECTION RIGHTS VIOLATIONS
Mar 15 2021
EUROPEAN UNION WARNS OF SANCTIONS OVER UGANDAN ELECTION RIGHTS VIOLATIONS

As Ugandan President Yoweri Museveni bore down on rights groups and the opposition, the European Union (EU) Parliament responded with the threat of sanctions against Ugandan individuals and organizations they hold responsible for abuses during the recent general election.

Museveni apparently sparked the EU backlash when he instructed the Ministry of Finance, in a letter dated January 1, to suspend the activities of the Democratic Governance Facility, a basket fund of European countries that bankrolls most Ugandan civil society organization that work on governance, rights and related themes.

The development is the latest in the fallout between the West and Uganda government that has seen President Museveni and a number of his senior officials castigating unnamed Western powers over what they call interference in the affairs of Uganda.

In a televised address about Uganda’s security following several reports of operatives kidnapping citizens, especially opposition supporters, Museveni accused foreigners of interference in the country’s affairs.

“I read in the newspapers about the EU Parliament sanctioning some Ugandans from traveling. For anybody to think that Africans are dying to go to Europe is something that shows lack of seriousness. Well, personally I need a lot of persuasion to leave Uganda. Why would I want to leave Uganda?” he asked rhetorically.

On Feb. 11, the European Parliament adopted a resolution deploring the Jan. 14 elections which they called neither democratic nor transparent. They condemned the excessive use of force by the police and armed forces during the election and their growing interference in political affairs.

They called for all those arrested and detained for participating in peaceful political assemblies or for exercising their right to freedom of expression and association to be released immediately and unconditionally and have their charges dropped. The text was approved by 632 votes in favor, 15 against and 48 abstentions.

More than 50 people were killed in the melee that followed the arrest of presidential candidate Robert Kyagulanyi, alias Bobi Wine, on Nov. 18, according to the State. Hundreds more were injured and thousands arrested during the elections.

The imposition of sanctions would be a major blow to Uganda government operations since the EU is Uganda’s biggest development partner and gives more than US$130,000 in aid annually. The EU individual members also give substantial funding to Uganda.

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Ukrainians are ready to join the European Union and NATO. Survey.
Mar 15 2021
Ukrainians are ready to join the European Union and NATO. Survey.

Ukrainians are ready to join the European Union and NATO. Survey.

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