Latest documents

Summary : This briefing provides a summary of the recent economic developments in the EU Member States and gives an overview of relevant economic projections forecasted by major international and EU institutions. Annex 1 includes latest GDP data and forecasts for all EU Member States and Annex 2 the latest inflation data and developments.

Authors : SABOL MAJA, LOI GIACOMO, SANGERS BO

Summary : This handbook provides an illustrated overview of the main marine and freshwater species relevant to the EU fisheries and aquaculture sector. For each species, the handbook shows its main biological characteristics, whether it is caught, farmed or both, and by which Member States, along with some significant EU conservation measures. In addition, it indicates the name of the species in Danish, German, Spanish, French, Italian, Dutch, Portuguese and Swedish.

Authors : BREUER Marcus Ernst Gerhard, POPESCU Irina, TWISK DANA DIVERA

Summary : A large share of euro area member states is highly indebted. On average, their debt ratios have experienced a strong and continued upward trend that needs to be reversed. The debt sustainability analysis in the new fiscal rules provides great flexibility to member states but exhibits weaknesses with regard to transparency, robustness and credibility. Stress testing needs to be enhanced and applied to the adjustment period. This document was provided/prepared by the Economic Governance and EMU Scrutiny Unit at the request of the ECON Committee.

Summary : This study, commissioned by the European Parliament’s Policy Department for Citizens’ Rights and Constitutional Affairs at the request of the AFCO Committee, considers the legal space for an EU Climate and Energy Union. It assesses the major limits at the EU and national level, as well as the question if (informal) Treaty change is possible and necessary to create the space needed. It also assesses if an individual right to clean energy exists, or can and should be legally construed. It pays special attention to the challenge of funding and the role that the emerging principle of solidarity might play.

Summary : The present study aims to provide an overview of available data at the national and European levels and pinpoint any limitations. The study finds that in different areas available national data are not comparable and makes recommendations to increase their comparability. In other fields, there is a lack of data, and the study proposes methods to collect statistics which help policymakers to design relevant policies in favour of persons with disabilities. This document was provided by the Policy Department for Economic, Scientific, and Quality of Life Policies at the request of the Committee on Employment and Social Affairs.

Summary : The integration of migrants and refugees into the labour market remains a critical challenge for EU countries. This study reviews recent academic research on effective policies to remove the barriers that hinder migrant integration in host countries. The study identifies nine key integration challenges, discusses existing evidence and provides policy implications. This document was provided by the Policy Department for Economic, Scientific and Quality of Life Policies at the request of the Committee on Employment and Social Affairs (EMPL).

Summary : This study reviews the implementation of the European Maritime, Fisheries and Aquaculture Fund (EMFAF) in the Netherlands, as regards the first acquisition of a fishing vessel, the replacement or modernisation of a main or ancillary engine and the increase of gross tonnage to improve safety, working conditions or energy efficiency (Articles 17-19 of the EMFAF Regulation). The study also assesses the future needs of the Dutch fishing fleet and makes proposals for the adjustment of EMFAF for the next budget period.

Summary : This synopsis is the first out of a series of four studies, commissioned for a PECH Committee Workshop on “The future of the EU fishing fleet − First assessment of the EMFAF programming for 2021-27”. The study focuses on EMFAF Article 17 (First acquisition of a fishing vessel), Article 18 (Replacement or modernisation of a main or ancillary engine) and Article 19 (Increase of gross tonnage to improve safety, working conditions or energy efficiency”). The synopsis deals with the situation for all 22 coastal EU Member States, while at the same time considering results of three additional case studies on Spain, France and the Netherlands.

Summary : The European Maritime, Fisheries and Aquaculture Fund (EMFAF) provides for public co-funding to support the modernisation of the fishing fleet during the current funding period (2021-2027). Funding opportunities are subject to specific conditions framed by the EMFAF Regulation as regards the first acquisition of a fishing vessel (Article 17), replacement or modernisation of a main or ancillary engine (Article 18) and increase of gross tonnage to improve safety, working conditions or energy efficiency (Article 19).

Summary : This briefing paper was prepared ahead of the Monetary Dialogue between the Committee on Economic and Monetary Affairs (ECON) and the European Central Bank (ECB) President. It provides a summary of key monetary policy developments and decisions taken by the ECB’s Governing Council.

Authors : RAKIC Drazen, SABOL MAJA, LOI GIACOMO

Summary : The European Commission adopted the 2020-2025 Gender Equality Strategy to achieve significant progress towards gender equality across the EU by 2025. This included the introduction of the gender budgeting methodology in 2021. The methodology was applied to the budgets of 2021, 2022, 2023, 2024 and 2025. The gender budgeting methodology categorises programmes using scores (2, 1, 0*, 0). However, vague criteria like ‘potential to contribute’ (score of 0*) and limited data undermine its accuracy and transparency. Only 2% of total funds are assigned to programmes with gender equality as their primary goal (score of 2), 9% of total funds are assigned to programmes which received a score of 1 and 69% of funds are assigned to programmes with a score of 0. This briefing gives an overview of the state of play of gender budgeting in the different EU programmes. It describes the methodology and gives examples of gender equality measures taken using EU funding

Authors : POUWELS Alexandra Cynthia Jana

Summary : This briefing paper provides an overview of the European Systemic Risk Board (ESRB), its main features, mandate and accountability arrangements towards the European Parliament. It also includes a section on the role of macroprudential policy in preserving financial stability, main findings of the review of ESRB’s regulation and review of EU macroprudential framework for the banking sector. The paper is an update of the previous version published in 2019.

Authors : SABOL MAJA, SPITZER Kai Gereon

Summary : This briefing paper is prepared in view of a regular public hearing with the Chair of the European Systemic Risk Board (ESRB), Christine Lagarde, which will take place on 4 December 2024. We cover the ESRB’s report on bank deposits following US banking turmoil in March 2023, recent conclusions of the ESRB’s General Board meeting, the risk outlook for the financial sector and Eurosystem’s response to the European Commisison’s consultation on macroprudential policies for non-banks. Annexes include latest data on financing conditions and house price growth in EU Member States.

Authors : SABOL MAJA, SPITZER Kai Gereon

Summary : Commissioner Dombrovskis has been invited to an Economic Dialogue on the fiscal part of the 2025 European Semester autumn package adopted by the Commission in November 2024. This is the first Economic Dialogue with the Commission under the 10th parliamentary term and under the new provisions of the reformed EU economic governance framework.

Authors : DE LEMOS PEIXOTO SAMUEL, LOI GIACOMO, SANGERS BO, ROKOS CASTILLO ALVARO CARL-PHILLIP

Summary : This study is the second contribution to a PECH Committee Workshop on “The future of the EU fishing fleet – First assessment of Member States’ EMFAF programmes for 2021-27”. The general objective of this study is to provide information to Members of PECH Committee on the state of play of the Spanish EMFAF programming and its implementation with regard to Articles 17-19 of the European Maritime Fisheries and Aquaculture Fund (EMFAF) Regulation.

Summary : Der Globale Biodiversitätsrahmen von Kunming-Montreal wurde 2022 mit dem Ziel angenommen, die Erhaltung der biologischen Vielfalt durch die Festlegung von 23 Handlungs- und vier Statuszielen zu forcieren. Da die 16. Konferenz der Vertragsparteien (COP 16) im Oktober 2024 kurz bevorsteht, sollen im Rahmen dieser Studie der Gesamtfortschritt bei der Umsetzung der Ziele seit der COP 15 sowie die größten Herausforderungen unter die Lupe genommen werden. Hierbei sollen u. a. der Stand der Umsetzung auf nationaler Ebene, die Einrichtung eines Finanzierungsmechanismus und die Annahme eines multilateralen Abkommens über digitale Sequenzinformationen untersucht werden. Diese Studie wurde von der Fachabteilung Wirtschaft, Wissenschaft und Lebensqualität im Auftrag des Ausschusses für Umweltfragen, öffentliche Gesundheit und Lebensmittelsicherheit (ENVI) erstellt.

Summary : This briefing has been prepared for the public hearing with the Chair of the Single Resolution Board (SRB), Dominique Laboureix on 4 December 2024.

Authors : SABOL MAJA, SPITZER Kai Gereon

Summary : The Annual Meetings of the World Bank Group (WBG) and International Monetary Fund (IMF) convene finance ministers and central bank governors to participate in the highest-level decision-making bodies of the two institutions, as well as in various committees and groups that drive the agenda on issues related to the international monetary system and development policy. The 2024 Annual Meetings took place in Washington, D.C. from 21 to 26 October 2024. This paper summarises the main developments and outcomes, focusing on IMF-related issues.

Authors : RAKIC Drazen, SABOL MAJA, SANGERS BO

Summary : The right to independent living and community inclusion for the EU's 101 million citizens with disabilities is enshrined in Article 19 of the United Nations Convention on the Rights of Persons with Disabilities (UNCRPD) and is further supported by the EU Disability Strategy 2021–2030. This analysis provides a comprehensive overview of the current landscape, ongoing challenges, key stakeholder recommendations, and future political perspectives regarding independent living and deinstitutionalisation. This document was provided by the Policy Department for Economic, Scientific and Quality of Life Policies for the Committee on Employment and Social Affairs (EMPL).

Authors : THOMAS ALIZÉE HELEN

Summary : At the request of the PETI Committee, the Policy Department for Citizens' Rights and Constitutional Affairs prepared this briefing to present the EU Strategy for the Rights of Persons with Disabilities 2021-2030, which is the European Commission's policy framework for implementing the UN Convention on the Rights of Persons with Disabilities (UNCRPD). The strategy includes an ambitious set of actions and flagship initiatives until 2024 in various domains, linked to the UNCRPD. Five of the seven flagship initiatives have already been implemented, and the two remaining ones are expected to be published by early 2025. Most of the other policy actions included in the Strategy are also completed by 2024. Despite significant efforts to implement the UNCRPD across the EU, persistent gaps remain between persons with and without disabilities, for example, when it comes to poverty, access to jobs, inclusive education, housing, or healthcare services.

Summary : ATAG to the study - Based on a comprehensive review of eleven legislative texts of the ‘Fit for 55’ package with a transport policy dimension, this study highlights the expected impacts they may produce on connectivity and mobility, encompassing the concepts of efficiency and effectiveness in the ability of passengers and goods to travel within the EU.

Summary : Based on a comprehensive review of eleven legislative texts of the ‘Fit for 55’ package with a transport policy dimension, this study highlights the expected impacts they may produce on connectivity and mobility, encompassing the concepts of efficiency and effectiveness in the ability of passengers and goods to travel within the EU.

Summary : This paper argues that the debt sustainability methodology in the EU new economic governance framework, while analytically sound, faces major implementation challenges. Primary among these is the reliance on a non-observable variable (the volatility of future debt-to-GDP ratios) that must be estimated based on ad hoc procedures that may affect significantly the required decline in the debt ratio after the end of the adjustment period and, hence, the primary surplus that a Member State needs to achieve during the adjustment period.

Summary : Building on Part 1, which draws lessons from the implementation of CRII, CRII+, REACT-EU and SURE, Part 2 of this study explores alternative approaches to enhance the EU budget’s capacity to respond to crises and discusses the implications of these options from the point of view of control and accountability.

Summary : This paper studies the implications for the European Central Bank (ECB) of the new EU fiscal framework, focusing on five aspects where monetary and fiscal policies intersect: (1) fiscal dominance over monetary policy; (2) fiscal drag created by the new framework; (3) moral hazard created by very low interest rates; (4) the effectiveness of the ECB’s Transmission Protection Instrument (TPI), and (5) the impact of the new framework on green public investment. This document was provided by the Economic Governance and EMU Scrutiny Unit at the request of the Committee on Economic and Monetary Affairs (ECON) ahead of the Monetary Dialogue with the ECB President on 4 December 2024.

Summary : The recent high inflation affects EU Member States differently. It is therefore important to quantify country-specific inflation impacts in regard to the implementation of the EU budget. This in-depth study focuses on country-specific inflation effects regarding research expenditures, Cohesion Policy, the Common Agricultural Policy, and NextGenerationEU. Moreover, policy options and recommendations at EU level to prevent adverse effects of future inflation shocks on the EU budget are identified and discussed. This document was provided at the request of the BUDG Committee.

Summary : This workshop provides a first assessment of the programming of the EMFAF for the period 2021-27. It focuses on Article 17 on “First acquisition of a fishing vessel”, Article 18 on “Engine replacement or modernisation” and Article 19 on “Increase of gross tonnage to improve safety, working conditions or energy efficiency”. While a synopsis study provides a general overview of the implementation of the EMFAF by Member States, three case studies on Spain, France and the Netherlands discuss the national specificities of the fishing fleets and the support provided under the current EMFAF rules.

Summary : The original full study tracks the evolution of EU contingent liabilities. Contingent liabilities for the EU budget have grown considerably in their magnitude and complexity and will continue to increase under the MFF 2021-2027. We explain the risks they might impose on the EU budget and analyse risk management practices to address them. We forecast total contingent liabilities will more than double by 2027, reaching EUR 612 billion. This increase will be driven mainly by RRF loans and to a lesser extent by financial support to Ukraine.

Summary : Contingent liabilities for the EU budget have grown considerably in their magnitude and their complexity and will continue to increase under the MFF 2021-2027. This paper tracks their evolution, explains the risks they might impose on the EU budget, and analyses the risk management practices to address them. We forecast total contingent liabilities will more than double by 2027, reaching EUR 612 billion. This will be driven mainly by RRF loans and, to a lesser extent, by financial support to Ukraine.

Summary : Mihály Varga, Minister of Finance and Deputy Prime Minister, of Hungary is participating in the ECON Committee in his capacity of President of the ECOFIN Council during the Hungarian Presidency (July - December 2024). In accordance with the Treaty of the Union, “Member States shall regard their economic policies as a matter of common concern and shall coordinate them within the Council”. This document provides an overview of the Hungarian Presidency priorities in ECON matters, including the Council’s work relating to the implementation of the European Semester for economic coordination, including the application of the Recovery and Resilience Facility, and other policy streams relevant to the EU single market, notably progress on the Banking Union and the Capital Markets Union.

Authors : DE LEMOS PEIXOTO SAMUEL, MAGNUS Marcel, SABOL MAJA, LOI GIACOMO, SPITZER Kai Gereon

Summary : This briefing has been prepared for the public hearing with the Chair of the Single Supervisory Mechanism (SSM), Claudia Buch, scheduled for 18 November 2024 in the ECON Committee. The previous hearing took place on 2 September 2024.

Authors : SABOL MAJA, SPITZER Kai Gereon, ROKOS CASTILLO ALVARO CARL-PHILLIP

Summary : This note provides an overview of the European Commission’s assessment of the implementation of the country-specific recommendations issued annually to EU Member States under the European Semester for economic policy coordination. It presents how their implementation has been assessed over time (during 2011-2023 European Semester cycles), both from an annual and a multiannual perspective. The note is updated on a regular basis.

Authors : HAGELSTAM Kajus, LOI GIACOMO, HANINA KATERYNA

Summary : This paper reviews the simplification measures aimed at reducing administrative costs and burdens for Managing Authorities (MAs) and beneficiaries in implementing European Structural and Investment Funds (ESIF). The study further provides an overview of the administrative burdens and challenges that MAs and beneficiaries face when implementing the ESIF. Although various initiatives have been undertaken, administrative challenges persist due to complex regulations and overlapping programmes. Recommendations include consolidating funds, expanding Simplified Cost Options (SCOs) use, enhancing audit principles, and adopting flexible funding models. Effective simplification requires a stable legislative framework and political commitment, with long-term changes including a shift to result-based financing.

Summary : In this paper, the ECB monetary policy stance is assessed by comparing the recent tightening cycle (2022-today) with the two preceding ones, which took place in 2000-2001 and in 2006-2008. Interest rates, quantitative indicators and monetary conditions indices (MCIs) are used for this purpose. The main finding is that at the peak of the latest tightening cycle, the ECB monetary policy stance was no more restrictive than it was at the peak of the two preceding ones; actually, probably less. This contrasts with the fact that in the more recent case inflation was higher and more persistent than in the two earlier episodes. This document was provided by the Economic Governance and EMU Scrutiny Unit at the request of the Committee on Economic and Monetary Affairs (ECON) ahead of the Monetary Dialogue with the ECB President on 4 December 2024.

Summary : The paper seeks to assess the current monetary policy stance of the European Central Bank (ECB). To do so, it analyses factors driving the inflation dynamics in the euro area (EA) and their potential persistence, drawing comparisons with the inflation drivers and policy response in the United States (US). Given the prominent role played by the energy-price increase in EA inflation and the differential exposure of EA Member States, the paper analyses the country-level inflation dynamics in response to the energy shock. Finally, the paper discusses the ECB’s strategy and communication, and the interpretation drawn by financial markets, before taking stock on the stance of monetary policy. This document was provided by the Economic Governance and EMU Scrutiny Unit at the request of the Committee on Economic and Monetary Affairs (ECON) ahead of the Monetary Dialogue with the ECB President on 4 December 2024.

Summary : This paper reviews the simplification measures aimed at reducing administrative costs and burdens for Managing Authorities (MAs) and beneficiaries in implementing European Structural and Investment Funds (ESIF). The study further provides an overview of the administrative burdens and challenges that MAs and beneficiaries face when implementing the ESIF. Although various initiatives have been undertaken, administrative challenges persist due to complex regulations and overlapping programmes. Recommendations include consolidating funds, expanding Simplified Cost Options (SCOs) use, enhancing audit principles, and adopting flexible funding models. Effective simplification requires a stable legislative framework and political commitment, with long-term changes including a shift to result-based financing.

Summary : Arguably, the Banking Union has a strong record for raising the standards in supervision and thereby making a contribution to financial stability. Despite the harmonisation achieved in supervision however, market integration has not progressed much. Can this be changed? And what lessons does that hold for the other big financial markets integration project, namely Capital Markets Union (CMU)? This briefing provides an overview of 5 papers by the ECON Committee’s academic expert panel for the Banking Union that have been published in September and October 2024.

Authors : SPITZER Kai Gereon, DE SURY D'ASPREMONT MAX JEAN GAUTHIER

Summary : This study provides an overview of the impact of commodity traders on agricultural markets. It examines the ramifications of financialisation, explores prevailing trends, and confronts the challenges that characterise the industry's landscape. Moreover, after analysing the regulatory state of play at the international level, it provides suggestions towards bolstering the sector's accountability and transparency, essential for fostering trust and sustainability. By scrutinising these aspects, this study offers insights into the intricate dynamics of agricultural trading and its broader socioeconomic implications.

Summary : The European Union’s policies influence third country trading partners’ domestic policy in different ways. Unilateral legislation in the green and digital fields, for example, contribute to setting global standards as traders must comply with EU requirements to access the Single market. The digital transition cooperation between Africa and the EU could lead to further regulatory convergence in the digital field. The EU's human-centric approach to digital policy, fostering consumer protection and trust inter alia through the General Data Protection Regulation, influences the African Continental Free Trade Area. Ensuring market access between Africa and the EU including in the field of e-commerce is strategically desirable for both blocks. Green legislation will impact foreign producers including smallholder and could potentially result in changes in trade flows. The liberalisation of trade through FTAs fosters economic growth and guarantees access to critical resources such as Chilean lithium for the EU’s digital transition. However, it can also exert environmental and social pressures on trading partners. Lastly, the rules based international trading system established by the WTO can be eroded by government subsidies with significant negative spillover effects on international trade. Global dialogue between trade partners is desirable to avoid a subsidy race .

Summary : This briefing presents an overview of six papers prepared by an academic expert panel for the Banking Union, covering 10 years of case law in the Banking Union. The studies focused on the evolution of Court of Justice of the European Union (CJEU) practices in shaping resolution and supervisory practices within the Banking Union. The studies were requested by the Committee on Economic and Monetary Affairs (ECON) of the European Parliament.

Authors : SABOL MAJA, ROKOS CASTILLO ALVARO CARL-PHILLIP

Summary : This note describes the treaty provisions and appointment procedure for ECA members at EU level. In addition, it provides information on the national nomination procedure for the ECA member in Bulgaria and the country’s candidate.

Authors : MILICEVIC Vera

Summary : Over the past decade, the concept of European Public Goods has become central to the EU reform debate. Genuine additional public tasks for the EU will require additional competencies and revenues. Exploring revenue niches not exploited by the Member States will not suffice: In the long term, the required doubling of the EU budget will only be achieved through genuine Own Resources in the form of surtaxes or tax shares linked to income and consumption.

Summary : The expected shift towards a performance-oriented budget presupposes a careful choice and definition of indicators clearly linked to the funding objectives, as well as standardised reporting and fully integrated and interoperable IT solutions to collect the required amount of data. Ensuring the full protection of the Union’s financial interest under performance-based budgeting will require careful balancing of auditing and control requirements with the administrative burden imposed on Member States and beneficiaries, and for the European Parliament, a form of Parliamentary Budget Office, drawing on best practices from Member States.

Summary : The practice of mainstreaming key transformational goals will undoubtedly be carried over into the post-2027 MFF. Assessing mainstreaming means looking at longer-term results and societal impacts. To this end, defining indicators and monitoring approaches will be crucial, as reliably establishing causality is often difficult. Additional imperatives for the European Parliament will be to ensure satisfactory access to the information required and to boost its in-house capacity to analyse it.

Summary : Current estimates suggest that the cost of integrating all potential candidates, excluding Turkey, would be manageable, ranging from €15.7 billion to €26 billion per year. This range reflects different assumptions and methodological choices. At its maximum, this cost represents 0.2% of the EU’s GDP and could be easily covered within the existing margin of the Own Resources ceiling. The entry of Ukraine in the Common Agricultural Policy (CAP) poses significant challenges. Although accession may not be imminent, the EU should begin planning for this eventuality.

Summary : Performance-based budgeting by focusing on ‘what works’, as opposed to whether money has been properly spent, aims to improve the quality of public spending. This study examines how successful the approach has been in the EU, looking at the multi-annual financial framework and the Recovery and Resilience Facility. The study looks, in particular, at the role of the European Parliament and how it could be enhanced, drawing on lessons from use of the approach in national settings.

Summary : To reduce the need for disorderly ex-post adjustments that are largely responsible for the EU budget’s currently opaque governance structure, the long-term EU budget should be endowed with a new type of in-built flexibility. Various options are presented, which would deliver in qualitative terms, but would need to be supplemented by an “in-budget” (as opposed to off-budget) borrowing capacity.

Summary : The EU's debt stock reached EUR 547 billion by the end of September 2024 and is expected to increase by an additional EUR 448 billion under current commitments. Of this total, EUR 421 billion will ultimately finance grants, with the interest and principal repayments to be made jointly by EU countries through the EU budget. The remaining amount will finance loans to countries, which will be serviced as those countries repay their loans. The interest rate risk for the 2028-2034 MFF is expected to remain low.

Summary : Credible ECB monetary policy requires that the revised EU economic governance framework be tightly enforced from its start. Net primary expenditures as key control variable allow predictable monetary policy focused on stabilisation. However, widespread debt reduction pushing spending growth below potential GDP growth may prompt more accommodative ECB policy. Moreover, potentially cumulating changes in public spending-to-GDP ratios need close monitoring. Finally, the criteria for TPI may increase pressure to be lenient on enforcement of the fiscal rules. This document was provided by the Economic Governance and EMU Scrutiny Unit at the request of the Committee on Economic and Monetary Affairs (ECON) ahead of the Monetary Dialogue with the ECB President on 4 December 2024.

Summary : This document provides an overview of all country-specific recommendations for 2024 as proposed by the Commission on 19 June 2024 and agreed by the Council on 16 July 2024.

Authors : LOI GIACOMO, HANINA KATERYNA

Summary : This paper provides an overview of the International Monetary Fund (IMF)’s lending to Ukraine, particularly focusing on the IMF response to the Russia’s invasion of Ukraine since February 2022, given the challenging macroeconomic circumstances. If further analyses the key elements of the IMF’ Extended Fund Facility (EFF) programme for Ukraine, including the evolution of core assumptions, risks, fiscal sustainability and conditionality.

Authors : RAKIC Drazen, HANINA KATERYNA

Summary : The three reports by Draghi, Letta and Noyer remind policy makers that capital markets channelling savings into investments is key to competitiveness and economic growth. The recommendations of these reports could give new impetus to the long-standing flagship policy of the Capital Markets Union (CMU). In this briefing we show how securitisation, supervision, market infrastructure and savings/pensions schemes are identified as priorities in all three reports, however with different conclusions. We also discuss all other CMU recommendations in the reports.

Authors : SABOL MAJA, LOI GIACOMO, SPITZER Kai Gereon

Summary : This briefing paper provides an overview of the role and mandate of the Eurogroup and the role and accountability of its President, including the procedures for his/her appointment. This paper includes the following sections: 1) The role of the Permanent President of the Eurogroup; 2) The President of Eurogroup and the European Parliament; 3) The role and mandate of the Eurogroup; and 4) Eurogroup transparency. The paper will be regularly updated.

Authors : HAGELSTAM Kajus, LEHOFER WOLFGANG, LOI GIACOMO

Summary : This briefing presents a summary of 3 studies prepared by academic expert panel for the Banking Union on the occasion of 10 years of parliamentary scrutiny over key authorities within the Banking Union, the Single Supervisory Mechanism (SSM) and the Single Resolution Board (SRB). It also presents proposals for enhancing the accountability framework governing these authorities. These studies were requested by the Committee on Economic and Monetary Affairs (ECON) of the European Parliament.

Authors : SABOL MAJA, SANGERS BO

Summary : This study provides details of the current situation and future trends in the EU concerning aspects related to skills demands, skills shortages, and skills mismatches. It takes into consideration the transformative role of the digital and green transitions and the labour market shifts determined by demographic changes. The analysis comprises a presentation of the various EU skills initiatives, assessing their impact, complementarity and gaps. And formulates a set of recommendations to address gaps identified in the EU skills policy. This document was provided by Fondazione Giacomo Brodolini to the Policy Department for Economic, Scientific and Quality of Life Policies at the request of the Committee on Employment and Social Affairs (EMPL).

Summary : This briefing provides a summary of all scrutiny activities of the European Parliament related to euro area monetary policy in advance of the September2024 Monetary Dialogue with the European Central Bank (ECB). It covers the topics chosen by the competent Committee and related expertise papers provided in advance of the Dialogue, the topics addressed during the Dialogue, and latest written questions made by Members to the ECB President. The document is published regularly ahead and after each Monetary Dialogue with the ECB.

Authors : SABOL MAJA, HANINA KATERYNA

Summary : This study provides an overview of the status of international climate negotiations and issues at stake at the COP29 climate change conference. It also addresses the current implementation of the Paris Agreement, the climate policies of key Parties and the stakeholders in the negotiations. This document was provided by the Policy Department for Economic, Scientific and Quality of Life Policies at the request of the Committee on the Environment, Public Health and Food Safety (ENVI).

Summary : This study examines how Cohesion Policy can support climate adaptation, regional resilience and sustainable businesses in the EU. It identifies regional and sectoral adaptation needs, maps relevant EU policy instruments and assesses current Cohesion Policy investment support. The study finds increased but still insufficient funding for adaptation, with gaps between support and needs. Recommendations include improving the integration and tracking of adaptation, developing tailored sectoral strategies, improving business awareness and funding access, and enhancing regional capacity for adaptation.

Summary : This study examines how Cohesion Policy can support climate adaptation, regional resilience and sustainable businesses in the EU. It identifies regional and sectoral adaptation needs, maps relevant EU policy instruments and assesses current Cohesion Policy investment support. The study finds increased but still insufficient funding for adaptation, with gaps between support and needs. Recommendations include improving the integration and tracking of adaptation, developing tailored sectoral strategies, improving business awareness and funding access, and enhancing regional capacity for adaptation.

Summary : The Kunming-Montreal Biodiversity Framework (GBF), adopted in 2022, aims to drive global biodiversity conservation through 23 targets and four overarching goals. As COP16 approaches in October 2024, the study looks at overall progress in implementation since COP15 and examines the major issues at stake, including a review of the state of implementation at national level, establishing a financial mechanism and adopting a multilateral agreement on digital sequence information. This document was provided by the Policy Department for Economic, Scientific and Quality of Life Policies at the request of the Committee on the Environment, Public Health and Food Safety (ENVI).

Summary : The banking union project has achieved European-level policy integration of microprudential supervision but not of crisis intervention. This largely explains the disappointing progress in the cross-border integration of the banking sector, which we document using data on banks’ assets and also specifically on their sovereign exposures. In a capital markets union, there is no equivalent of the banking crisis intervention framework and related public financial safety net, and therefore supervisory integration can have more direct catalytical impact in that context than in banking.

Summary : This paper discusses EU case law developed over the past decade relating to decisions taken by the European Central Bank within the Single Supervisory Mechanism (SSM) and within the Single Resolution Mechanism (SRM). The cases centre around embracing and solidifying the BU framework, inter alia, with the admissibility to challenge ECB’s supervisory and licence withdrawal decisions, the application of national law by the ECB in its supervisory competence and the methodology attached to the setting of administrative pecuniary penalties. Other cases concern the determination of the ex-ante contributions to the Single Resolution Fund, the perimeter of resolution decision-making, and the responsibility of the decision-making bodies involved in the resolution process.

Summary : This paper presents current developments and challenges in the prevention and management of obesity in the European Union. The analysis provides an overview of the disease, emphasises the importance of designing supportive environments in prevention efforts, and makes an argument to upskill the healthcare provided to persons living with obesity. This document was provided by the Policy Department for Economic, Scientific and Quality of Life Policies at the request of the Subcommittee on Public Health (SANT).

Summary : Over the past decade, Banking Union (BU) regulators focused on making banks safer, resulting in stronger banks but limited euro area cross-border integration. To attain the strong and integrated financial system Europe needs going forward, BU authorities must now broaden their focus, promoting cross-border banking by removing legislative barriers that prevent or discourage it. That goal requires reducing overbanking and limiting the national authorities’ regulatory power further. It also necessitates a Capital Markets Union (CMU) under a unified supervisory control. We argue that BU and CMU are complements in a strong and integrated European financial system, and that a successful launch of CMU presupposes progress towards an integrated BU.

Summary : Following the negative reaction from the Commission when the Council published its general approach to the CMDI reform, this briefing provides some initial analysis regaring the key aspects of public interest assessment, resolution objectives and resolution funding. Clearly, the Council aims for a narrower scope of resolution in harmonised procedures by the Banking Union authorities than the Commission and narrows the available funding accordingly, potentially privileging action under national frameworks instead. Whether a balance is achieved, however, will require more in-depth analysis.

Authors : MAGNUS Marcel, SPITZER Kai Gereon

Summary : We discuss the contribution of the Banking Union in its current form to market integration in the euro area. While the introduction of single supervision has fostered banking integration, limited progress in single resolution and the absence of a European deposit insurance scheme undermine further advancements. We argue that a significant obstacle to financial integration lies in the persistence of national interests in regulation, supervision, and politics. We also explore the lessons that can be learned from ten years of the Banking Union for the development of the Capital Markets Union and the integration of capital markets. The successes of the Banking Union in common supervision and rule-setting can provide a path forward.

Summary : This study provides an overview of the impact of commodity traders on agricultural markets. It examines the ramifications of financialisation, explores prevailing trends, and confronts the challenges that characterise the industry's landscape. Moreover, after analysing the regulatory state of play at the international level, it provides suggestions towards bolstering the sector's accountability and transparency, essential for fostering trust and sustainability. By scrutinising these aspects, this study offers insights into the intricate dynamics of agricultural trading and its broader socioeconomic implications.

Summary : We address the role of the Banking Union (BU) in promoting market integration and the lessons it provides for the Capital Markets Union (CMU). First, we tackle BU’s establishment, exploring whether it has achieved its original goals and discussing its main shortcomings. Second, we address market integration in the BU. Third, we advance some proposals to finalise the BU accelerating effective market integration. Fourth, we explore various BU-CMU interconnections, introducing policy-related considerations to support the development of a well-functioning CMU.

Summary : The review of Regulation (EU) 2015/760 (ELTIF Regulation) concluded in February 2023 with the adoption of the amending Regulation (EU) 2023/606 (ELTIF 2.0), the aim of which was to increase the attractiveness of ELTIFs. ELTIF 2.0 is applicable since 10 January 2024. ELTIFs are the only type of fully harmonised alternative investment funds (AIFs) dedicated to long-term investments and they are open both to professional and retail investors. Since the adoption of the original ELTIFs legal framework in April 2015 (ELTIF 1.0), only 57 ELTIFs (as of October 2021) had been launched with a relatively small amount of net assets under management (total assets under management are estimated at approximately EUR 2.4 billion in 2021). Such authorised ELTIFs were domiciled in only four Member States (Luxembourg, France, Italy and Spain), and the other Member States had no domestic ELTIFs. Among the main reasons for the insufficient uptake of ELTIFs in Europe the Commission had identified restrictive fund rules and barriers to entry for retail investors. The reform of 2023 aimed to strike a balance that would help overcome the issue of restrictive rules and to enhance long-term investment in Europe and deepen the Capital Markets Union. The result was well received in the market, as it is proven by the fact that since 2023, the number of authorised ELTIFs has increased significantly. Regulation (EU) 2023/606 (ELTIF 2.0) mandated ESMA to adopt RTSs on various aspects of the amending Regulation. On 19 December 2023, ESMA submitted its draft RTS to the Commission. Based on ESMA’s draft RTS, on 6 March 2024 the European Commission has adopted the RTS “with amendments” citing multiple legal problems with the draft RTS and requested ESMA to resubmit the draft RTS within 6 weeks in line with the adoption procedure set out in Article 10(1) of ESMA Regulation. Upon receiving an amended draft from ESMA, in line with the procedure under Article 10(1) of ESMA Regulation, the Commission adopted on 19 July 2024 the RTS with the amendments it considered relevant and submitted the delegated act to the Parliament and to the Council for scrutiny. The scrutiny period ends on 21 October 2024. Before the formal adoption of the ELTIF delegated act, the Commission consulted the Expert Group of the European Securities Committee where the majority of Member States supported the RTS as amended by the Commission

Authors : ARRAS MOONIKA, MUR CARLOS

Summary : This briefing paper was prepared ahead of the Monetary Dialogue between the Committee on Economic and Monetary Affairs (ECON) and the European Central Bank (ECB) President on Monday, 30 September. It provides a summary of key monetary policy developments and decisions taken by the ECB’s Governing Council.

Authors : RAKIC Drazen, SABOL MAJA, LOI GIACOMO, HANINA KATERYNA

Summary : This study discusses and analyses on a targeted basis and in a systematic way the evolution and key aspects of the case-law of the Court of Justice of the European Union (CJEU) in relation to the two key pillars of the Banking Union in force, namely, the Single Supervisory and the Single Resolution Mechanisms, from their full operationalisation in November 2014 and in January 2016, respectively, up to the beginning of September 2024. This document was provided by the Economic Governance and EMU Scrutiny Unit at the request of the ECON Committee.

Summary : Upon request of the Committee on Petitions (PETI), the Policy Department for Citizens’ Rights and Constitutional Affairs commissioned the present study on Regulation 1049/2001 on access to documents with a twofold objective. First, to update the analysis conducted in a 2016 study for the PETI Committee with the latest developments in the case law of the CJEU and the activities led by the European Ombudsman since then – in particular focussing on access to legislative documents, documents relating to administrative proceedings, Court proceedings, infringement proceedings, protection of privacy, international relations, and special regimes. Second, to assess the possible future alignment of the Access Regulation with the evolving digital context, including a potential revision of the definition of document, access to user-friendly public registers and internet sites, access to agendas of officials and scheduled meetings with interest representatives, and access to videos of CJEU oral hearings. The research also incorporates illustrative and complementary cases and own initiatives by the European Ombudsman as indications of evolving challenges to institutional secrecy in the EU context.

Summary : The first 10 years of the Capital Markets Union (CMU) have been marked by minimalistic progress. The unfinished nature of the CMU has direct relevance for the ECB by affecting financing conditions in Member States and eroding the risk-sharing ability of the EMU, imposing a higher burden on the ECB to act as “the only game in town”. It has even bigger implications for the long-term investment opportunities and economic performance of the EU. This calls for a renewed approach and narrative on the CMU to gather political support to move forward. This document was provided by the Economic Governance and EMU Scrutiny Unit at the request of the Committee on Economic and Monetary Affairs (ECON) ahead of the Monetary Dialogue with the ECB President on 30 September 2024

Summary : Despite considerable progress towards a Banking Union in the euro area, banks in the EU continue to be subject to widely varying insolvency law as applied to their lending customers. This paper provides evidence that bank interest margins tend to be higher in countries with weaker loan enforcement. Higher bank interest margins are a sign of less efficient bank intermediation, and hence the evidence of this paper suggests that bank intermediation is less efficient in countries with weaker loan enforcement. This policy-induced national variability in bank efficiency is incompatible with banking union.

Summary : This analysis discusses specific issues regarding the proposal for a Directive on the transparency of third-country lobbying. It highlights complex questions in relation to civil society organisations and the need for uniform implementation and effective judicial protection. If designed and implemented well, the Directive could establish a transparent framework for foreign governments to engage in lobbying within the EU. This document was provided by the Policy Department for Economic, Scientific and Quality of Life Policies at the request of the Committee on Internal Market and Consumer Protection (IMCO).

Summary : In this paper, different assessments of the ECB’s monetary policy stance are reviewed, beyond the mere observation of the sharp rise and subsequent decline of the policy rate. Overall, the monetary policy stance has been more moderate during the tightening cycle than what has been indicated by the policy rate increase. However, following the decline in energy prices, this past and relatively mild restrictive policy stance poses a risk to economic activity. This document was provided by the Economic Governance and EMU Scrutiny Unit at the request of the Committee on Economic and Monetary Affairs (ECON) ahead of the Monetary Dialogue with the ECB President on 30 September 2024.

Summary : The CRR 3/CRD 6 package constitutes the final phase in the implementation of the internationally agreed finalised Basel 3 prudential requirements for banks into the EU financial services acquis. In particular, the CRR 3 introduces the revised market risk requirements as binding own fund requirements. These requirements were introduced in the CRR 2 only as reporting requirements. However, at the time of the adoption of the CRR 3 it was not clear how and whether other major jurisdictions will apply the finalised market risk framework. Therefore, co-legislators mandated the Commission to monitor possible differences in the international implementation of the market risk framework and, in case of ‘significant differences’, empowered the Commission to postpone the application of the capital requirements for market risk for up to two years or to introduce temporary amendments to CRR 3 market risk requirements in the form of capital multipliers or targeted operational relief measures (Art. 461a CRR). On 24 July 2024, the Commission adopted a delegated act (DA) postponing the date of application of the market risk framework by one year to 1 January 2026.

Authors : MAIER Rudolf

Summary : The Banking Union makes ten years. It is a story of success. Courts have been crucial for this success. This study explains why, and what should be done to preserve (and improve) their role. This document was provided by the Economic Governance and EMU Scrutiny Unit at the request of the ECON Committee.

Summary : This note provides an overview of the main features and recent developments regarding the advisory European Fiscal Board. It also includes some reflections on a stronger role of the EU level fiscal board in the light of the revised EU economic governance framework.

Authors : HAGELSTAM Kajus, DE LEMOS PEIXOTO SAMUEL, LOI GIACOMO

Summary : This study examines key rulings on the supervision and resolution of credit institutions in the EU and their impact on the Banking Union framework. It explores how case law has refined the European Central Bank’s practices, shareholders' and boards' rights, and the interaction between ECB and Single Resolution Board powers during ‘failing or likely to fail’ assessments. While highlighting how litigation has clarified processes, rights, and the criteria for resolution, the study’s findings underscore the need for heightened scrutiny of agencies to prevent political interference and ensure effective oversight.