The new rules of investment

How will the end of cheap money affect investors? So far, the experience has been bloody. Investors had become used to low inflation. In this week’s cover leader, a Briefing and further reporting, we describe the dynamics of an era dominated by higher interest rates and scarcer capital. Investors find themselves in a new world and they need a new set of rules. Although returns stand to be higher, capital will be impatient and private markets are likely to suffer.The pain has been intense. As of mid-October, a portfolio split 60/40 between American equities and Treasuries had fallen more than in any year since 1937. House prices are dropping everywhere from Vancouver to Sydney. Bitcoin has crashed. Gold did not glitter. Commodities alone had a good year—and that was in part because of war.Our other cover is on Britain’s second-tier cities. In most countries the productivity of these cities matches or exceeds the national average, but every country has some cities that are left behind and Britain has more than most. London is as rich as Paris, but metropolitan Birmingham or Leeds is nowhere near as rich as Lyon or Toulouse. No one should be happy about this lopsided picture, whether proud northerner or smug southerner. Britain’s second-tier cities could achieve so much more if politicians got a few simple things right. Zanny Minton Beddoes Editor-in-chief The Economist

How to fix Britain’s bonkers planning rules

We have two covers this week. In most of the world we look at how American states have turned from laboratories of democracy into Petri dishes of polarisation. The 50 states are supposed to be where policies are tested to see what works. But this constructive form of federalism is not what state politicians are pursuing today. Instead, they are fighting a national culture war, stoking outrage among partisan voters on everything from guns to abortion and transgender issues. Moderates might prefer them to concentrate on fixing roads and refining tax policy. But in many states politicians can safely ignore them, because their seats are ultra-safe and they fear only primary voters. Dysfunction in the states breeds national disunity and rancour. Only electoral reform can mend it. In Britain we lament the country’s bonkers planning rules. A single wizened tree can scupper plans for hundreds of flats. A colony of terns can stall the development of a nuclear-power station. Politicians bow to BANANAs (voters who would “Build Absolutely Nothing Anywhere Near Anything”). Small wonder homes are unaffordable, and Britain has not built a reservoir since 1991. Radical change is politically inconceivable. But workarounds—call them bypasses—are possible. Zanny Minton Beddoes Editor-in-chief The Economist

Rules and Tools: Exceptions and technologies in the DSM Directive

Giovedì 22 aprile ore 16:00. Più strumenti digitali che regole (“More tools than rules”) è questo il titolo del seminario organizzato dal centro di ricerca Blockchain, artificial Intelligence and digital Innovation Law Lab (BILL) della Luiss School of Law, in collaborazione con l’Associazione Italiana Editori (AIE). Nel corso del webinar verrà affrontato in modo inedito il tema della Direttiva sul Diritto d’autore nel mercato unico digitale, con uno sguardo sulle opportunità di crescita e di innovazione che la Direttiva apre, accantonando – almeno per un momento – le contrapposizioni che hanno caratterizzato finora il dibattito. La Direttiva, infatti, chiama tutti a ricercare nuove soluzioni basate sulle tecnologie, in grado di conciliare valorizzazione del diritto d’autore e ampliamento degli accessi, tutela del pluralismo e della diversità culturale e globalizzazione digitale.Il punto di partenza è la creazione della European Copyright Infrastructure, di cui in Italia si è finora parlato troppo poco, nonostante sia oggi un elemento centrale della politica comunitaria, tanto da essere inserito tra le priorità del “Piano d’azione sulla proprietà intellettuale per sostenere la ripresa e la resilienza dell’Unione”. L’obiettivo dell’iniziativa comunitaria è ambizioso: creare un’infrastruttura composta da tecnologie, dati e servizi interoperabili che consenta alla gestione online dei diritti d’autore di operare con la stessa semplicità, efficacia e trasparenza con cui funziona Internet. Ad aprire i lavori, il prof. Antonio Nuzzo Direttore della Luiss School of Law e del Centro di Ricerca “BILL – Blockchain, artificial Intelligence and digital innovation Law Lab” dell’Ateneo a cui seguirà – dopo l’intervento di Vittorio Ragonese, consulente del ministero della cultura in materia di proprietà intellettuale, un panel coordinato dal prof. Paolo Marzano docente di Tutela della Proprietà Intellettuale alla Luiss Guido Carli e Partner di Legance Avvocati Associati, al quale prenderanno parte: Anna Vuopala del Ministero della cultura finlandese, che per prima ha promosso il tema nel Consiglio europeo; Piero Attanasio e Paola Mazzucchi di AIE che faranno il punto, rispettivamente, sul legame tra norme della Direttiva e Copyiright Infrastructure e sullo stato dell’arte e le prospettive future della ricerca e sviluppo in questo ambito; Sebastian Posth, fautore dell’International Standard Content Code (ISCC), un identificatore simile nelle funzionalità al Content-Id the YouTube ma proposto come standard aperto, che illustrerà le potenzialità di identificatori decentralizzati e blockchain; Michael Healy, direttore delle attività internazionali di CCC, la società di gestione collettiva statunitense delle opere letterarie, che racconterà come le tecnologie abilitino licenze e servizi innovativi.Le conclusioni saranno a cura del Presidente AIE Ricardo Franco Levi. La sessione introduttiva e le conclusioni si terranno in italiano. Il panel sarà in inglese.Per registrarsi al webinar: https://lsl.luiss.it/event/2021/04/22/rules-and-tools-exceptions-and-technologies-dsm-directive

Deal on revised securitisation rules to help with post-COVID recovery

Packaged loans converted into securities will free bank balance sheets of non-performing exposures and promote lending to the real economy, which is vital to economic recovery. On Wednesday evening, negotiators from the Economic and Monetary Affairs Committee reached an agreement with the Council on adjustments to two interlinked files: Capital Requirements Regulation (CRR): adjustments to the securitisation framework; and General framework for securitisation and specific framework for simple, transparent and standardised (STS) securitisation. Othmar Karas (EPP, DE), responsible for capital treatment of securitisation, said: “The political agreement between the European Parliament and the Council Presidency on the revised securitisation rules is an important step for the recovery of Europe’s capital markets. When used properly, the financial instrument becomes a vital medicine for a stronger recovery after the COVID-19 pandemic. It creates new investment opportunities and more scope for banks to issue fresh loans to households and SMEs. I am particularly pleased that the European Parliament achieved a more risk-sensitive treatment of NPE securitisations. This gives the right incentive to support banks in freeing up their balance sheets of non-performing exposures that can be expected to grow because of the current crisis”.Paul Tang (S&D, NL), the lead MEP on securitisation framework, said: “Balance sheet securitisation allows banks to reduce their exposure to risky loans. By creating a label for simple, transparent and standardised transactions, we promote their use while safeguarding economic stability. This agreement will allow banks to issue more loans to businesses and help the economy through the difficult times we are currently facing and that lie ahead. Parliament has succeeded in clearly integrating sustainability into the securitisation framework. Standards will be developed to report on the sustainability of securitisation products and the European Banking Authority will draft a proposal for a dedicated framework for sustainable securitisation. The drive for sustainability reporting has now been embraced by the banking sector.” Technical work on both texts is now being carried out by the services of the three institutions. Thereafter, the agreement must be approved by the Economic and Monetary Affairs Committee and Parliament as a whole.

Foreign Policy: The EU must champion a rules-based international order

The EU should demonstrate its leadership in international affairs by being more autonomous, more assertive, and more united, state MEPs in the annual report.The COVID-19 pandemic is a wake-up call for Europe, which must strengthen its strategic autonomy and sovereignty to defend its interests and values, warn Foreign Affairs Committee MEPs in their annual report on the implementation of the Common Foreign and Security Policy.The EU needs to work closely with its allies and establish more strategic cooperation with third countries based on trust and mutual benefit, MEPs conclude. In the report – adopted by 48 votes in favour, 10 against and 11 abstentions – they stress the EU’s worldwide role as a reliable partner, a mediator in conflict resolution and a leader in promoting multilateral frameworks.First and foremost, the EU needs a stronger and genuine political will on the part of member states to jointly agree on and promote EU foreign policy goals, such as conflict prevention and peace agreements, and to counter third countries’ attempts to weaken and divide the EU. MEPs call on member states to urgently debate the possibility of moving from unanimity to qualified majority voting, at least in selected areas such as decisions on human rights issues and sanctions. This would be a significant step in strengthening the EU’s influence on the global scene.They support an EU-wide debate to consider new ways of working such as a European Security Council, stressing the need to formally establish effective means and institutions to enhance the coherence and influence of the EU’s foreign and security policy.MEPs call for the EU to assume its strategic responsibility in the EU neighbourhood and act more quickly and assertively to mediate and peacefully resolve ongoing tensions and conflicts, as well as prevent future conflicts. They reiterate their commitment to enlargement as a key transformative EU policy supporting the European perspective for the Western Balkan countries.

Deal on new rules for EU regional, cohesion and social funds over next 7 years

EU legislators reached a provisional political agreement on how EU countries will be able to spend EU regional, cohesion and social funds for 2021-2027.Parliament’s and Council’s negotiators agreed that the total resources for economic, social and territorial funds available for 2021-2027 are 330 billion EUR (330 234 776 619 in 2018 prices).The deal means less developed regions will continue to benefit from substantial EU support with co-financing rates of up to 85% of funds provided by the EU. The co-financing rate for transition regions and more developed ones has been set to 60% and 40% respectively.Partnership agreements, which are prepared by national authorities, for the European Regional Development Fund (ERDF), the Cohesion Fund, the European Social Fund Plus (ESF+) and the European Maritime and Fisheries Fund (EMFF) will be simplified and limited to 35 pages, unless member states wish to go further. Regional, local, urban and other public authorities, economic and social partners, civil society, as well as research bodies, where appropriate, will be key partners to the agreements.Parliament succeeded in integrating four main overarching principles to adhere to in order to receive EU funding: compliance with the EU Charter of Fundamental Rights; gender equality and mainstreaming; fighting discrimination; and the respect of the UN Sustainable Development Goals and the Paris Climate Agreement.Measures linked to funds being suspended when countries do not comply with EU economic and employment policies guidelines will be time-limited (suspension procedures may be applied only between 2023 and 2025). Sanctions linked to non-compliance with national economic targets, such as excessive deficit, will not be applicable as long as the general escape clause of the Stability and Growth Pact is activated. ESF+ and Interreg funds may not be suspended.

Rules on the free movements of workers and services

Brussels, Tuesday 1 December 2020, 09.00 – 11.00, 11.30 – 12.30, 13.45 – 15.45 József Antall building, room 6Q2, and by videoconference VotesAccess to decent and affordable housing for all. Rapporteur: Kim Van Sparrentak (Verts/ALE, NL). Adoption of draft report.The right to disconnect. Rapporteur: Alex Agius Saliba (S&D, MT). Adoption of draft report. Presentations and debatesImpacts of EU rules on the free movements of workers and services: intra-EU labour mobility as a tool to match labour market needs and skills. Rapporteur: Radan Kanev (PPE, BG). Consideration of draft report. 09.05 – 10.00Commission Delegated Regulation supplementing Regulation (EU) 2019/1700 of the European Parliament and of the Council by specifying the number and the title of the variables for the income and living conditions domain on health and quality of life. Presentation by the Commission. 10.40 – 11.00Child guarantee. Exchange of views with Mr Ioannis Dimitrakopoulos, Scientific Advisor of the Director of EU Agency for Fundamental Rights. 13.45 – 14.40 ILO Global Wage Report 2020-21: Wages and minimum wages in times of COVID-19. Presentation by Patrick Belser (ILO Senior Economist and Wage Specialist). 14.40 – 15.25Improving the quality of public spending in Europe – Budgetary ‘waste rates’ in EU Member States. Presentation of an EPRS study

Parliament leads the way on first set of EU rules for Artificial Intelligence

Bruxelles. On Tuesday, MEPs adopted proposals on how the EU can best regulate Artificial Intelligence (AI) in order to boost innovation, ethical standards and trust in technology. The European Parliament is among the first institutions to put forward recommendations on what AI rules should include with regards to ethics, liability and intellectual property rights. These recommendations will pave the way for the EU to become a global leader in the development of AI. The Commission legislative proposal is expected early next year. The legislative initiative by Iban García del Blanco (S&D, ES) urges the EU Commission to present a new legal framework outlining the ethical principles and legal obligations to be followed when developing, deploying and using artificial intelligence, robotics and related technologies in the EU including software, algorithms and data. It was adopted with 559 votes in favour, 44 against, and 88 abstentions.Future laws should be made in accordance with several guiding principles, including: a human-centric and human-made AI; safety, transparency and accountability; safeguards against bias and discrimination; right to redress; social and environmental responsibility; and respect for privacy and data protection.High-risk AI technologies, such as those with self-learning capacities, should be designed to allow for human oversight at any time. If a functionality is used that would result in a serious breach of ethical principles and could be dangerous, the self-learning capacities should be disabled and full human control should be restored.The legislative initiative by Axel Voss (EPP, DE) calls for a future-oriented civil liability framework, making those operating high-risk AI strictly liable for any resulting damage. A clear legal framework would stimulate innovation by providing businesses with legal certainty, whilst protecting citizens and promoting their trust in AI technologies by deterring activities that might be dangerous.The rules should apply to physical or virtual AI activity that harms or damages life, health, physical integrity, property, or that causes significant immaterial harm if it results in “verifiable economic loss”. While high-risk AI technologies are still rare, MEPs believe that their operators should hold insurance similar to that used for motor vehicles.The legislative initiative was adopted with 626 votes in favour, 25 against, and 40 abstentions.

Rules of Procedure: amendments for “extraordinary circumstances”

The Constitutional Affairs Committee proposes new Rules that would make Parliament better equipped to ensure the continuity of its work in future crises.The draft report by Gabriele Bischoff (S&D, DE) was adopted by the Constitutional Affairs Committee, setting out a proposal for the amendment of Parliaments Rules of Procedure. The new rules will ensure that Parliament will have provisions in place to facilitate its functioning in extraordinary circumstances, taking into account lessons learnt from the COVID-19 sanitary crisis. Following a vote on amendments during the first part of the meeting on Monday, the final text was approved with 26 votes in favour, none against and two abstentions late in the evening.The adopted report underlines that the temporary measures adopted by President Sassoli and EP governing bodies in compliance with the rule of law were necessary, in the absence of alternatives, to guarantee the continuity of Parliament’s business, and that they allowed Parliament to carry out its legislative, budgetary and political control functions during the crisis, as required by the Treaties.The proposed changes envision the activation of emergency measures by President, with consent from the Conference of Presidents (i.e. the President and political group leaders), for the entirety or part of Parliament’s work. If it is deemed necessary, including when Parliament’s political balance is disturbed, such measures may include the postponement, displacement or remote organisation of activities. Extraordinary measures will have to be activated for a specific amount of time and only for events that are exceptional, unforeseeable, and outside Parliament’s control. Further, MEPs in will be able to reverse these decisions by simple majority in Parliament’s plenary sessions. Attention was also given to ensuring that MEPs can participate equally, freely and in their native language (to the greatest possible extent), and through secure electronic systems.“Extraordinary situations require extraordinary measures, but we cannot forget that Parliament is the cornerstone of European democracy. Citizens depend on us. This report focuses on the principles of representative democracy, equal treatment, mandate freedom and the right of MEPs to speak and vote freely, in their personal capacity, while making sure that that Parliament remains fully operational even in the most difficult circumstances”, said the rapporteur.

EU-UK relations: MEPs approve rules to ensure Eurotunnel safety and cooperation

MEPs endorsed on Thursday two proposals concerning the Channel Tunnel with the goal to maintain the same set of rules governing the whole railway tunnel once the UK has the status of a third country.The legislation will empower France to negotiate a new international agreement with the UK and maintain the Intergovernmental Commission as the main safety authority for the Eurotunnel.Additionally, the regulations on the safety and interoperability arrangements will allow, as amended by the Parliament, negotiations between France and the UK to begin without delay.The decision empowering France to negotiate an agreement supplementing its existing bilateral Treaty with the UK concerning the operation of the Channel Fixed Link was endorsed with 687 votes in favour, three against and four abstentions.The regulation on application of railway safety and interoperability rules within the Channel Fixed Link was adopted with 687 votes in favour, four against and four abstentions.The amendments adopted by the Parliament correspond to the Council’s position. The Council will now have to formally adopt its first reading position. The regulation will enter into force the day after its publication in the Official Journal of the EU.

Final vote on EU rules for crowdfunding platforms

Bruxelles.On Monday evening, the plenary approved the deal struck with the Council last December on common rules to boost EU crowdfunding platforms and protect investors.The new rules aim to help crowdfunding services to function smoothly in the internal market and to foster cross-border business funding in the EU, by providing for a single set of rules on crowdfunding services.The uniform set of criteria will apply to all European Crowdfunding Service Providers (ECSP) up to offers of EUR 5 000 000 (from EUR 1 000 000 proposed by the Commission), calculated over a period of 12 months per project owner.Investors would be provided with a key investment information sheet (KIIS) drawn up by the project owner for each crowdfunding offer or at platform level. Crowdfunding service providers would need to give clients clear information about the financial risks and charges they may incur, including insolvency risks and project selection criteria. A prospective ECSP would need to request authorisation from the national competent authority (NCA) of the member state in which they are established. Through a notification procedure in a member state, ECSP would also be able to provide their services cross-border. Supervision would also be carried out by national competition authorities, with the European Securities and Markets Authority (ESMA) facilitating and coordinating cooperation between member states.With no proposal to reject the Council’s positions and no amendments tabled, the text was deemed adopted. The rules will start to apply one year after its publication in the Official Journal of the EU.

Time to crack on with implementation of proposed tax rules

Numerous MEPs on Thursday told Commissioner for taxation Paolo Gentiloni that it was high time to tackle member state reticence to progress on tax justice. Speaking during the first hearing of the newly created subcommittee on tax matters, MEPs taking the floor as the spokesperson for their respective groups highlighted the need to quickly translate the political messages from citizens and the proposals already tabled by the Commission into tangible instruments to fight ever-growing tax evasion and avoidance. Some others also pointed out that such progress would need to happen without creating a negative effect on the EU’s competitiveness or on the purchasing power of citizens.With the crisis we are in tax fraud and evasion is even less acceptable than ever before, Commissioner Gentiloni said in his opening statement. He underlined that up to EUR 140 billion EUR are lost each year to aggressive tax planning and the VAT gap has reached around EUR 180 billion per year.MEPs urged the Commissioner to continue the work the previous Commission had left off at, calling on him to pay more attention to addressing the reticence of some of the member states which has led to a backlog of proposals in the Council. One MEP suggested that the subcommittee could help in pressuring member states by using the forum as “a space for constructive embarrassment of those who do not cooperate”, an idea openly supported by the Commissioner and some other MEPs.Right balance.Consumers’ purchasing power and the competitiveness of the EU’s companies would also need to be kept in mind when devising new taxes, some MEPs said. An MEP also said that care should be taken with the rollout of any new tax to not compound the negative economic effects from the COVID-19. The subcommittee is expected to soon agree its work programme for the coming months. The next meeting is scheduled for 28 October.

Platform economy: EU rules needed to ensure fair competition and workers’ rights

Local and regional leaders have highlighted to Nicolas Schmit, new European Commissioner for Jobs and Social Rights, that the EU needs to set clear rules for platform economy to guarantee workers’ rights and ensure a level playing field between online and offline economic activities in the single market.Two opinions adopted by the European Committee of the Regions (CoR) today stress that many current EU regulations are outdated against the emergence of new business models and non-standard forms of employment that are frequent in digital platforms. Notably the implementation of the e-Commerce Directive, which dates back to 2000, has led to several court cases surrounding companies such as Uber and Airbnb.Speaking at the European Committee of the Regions’ plenary session in his first public appearance as Commissioner for Jobs and Social Rights, Nicolas Schmit said: “The new Commission’s agenda strives to address the ongoing challenges and opportunities posed by the new world of work, globalisation, automation, digitalisation and artificial intelligence, coupled with our shift to a carbon-neutral economy. We need to make sure that all Europeans can benefit during these transitions, especially when it comes to their jobs and livelihoods. Our regional governments and administrations will be instrumental in making sure that this shared purpose becomes a reality.”Karl-Heinz Lambertz, President of the European Committee of the Regions, said: “Social rights must be at the centre of the EU’s future, protecting people whilst embracing technological change. The EU must set out a clear plan that ensures that the changes to our industries avoids further polarising wages and increasing inequalities. With the right regulation, platform work is one opportunity to ensure everyone benefits from digitalisation, leaving no one behind.”The two opinions focus on different aspects of collaborative economy and platform work. The first one, prepared by Dimitrios Birmpas (EL/PES), Municipal Councillor of Egaleo, stresses that a comprehensive regulatory framework at EU level is necessary to ensure the social protection and social rights for platform workers against practices such as deliberate misclassification of workers as self-employed by employers seeking to avoid employment regulations, fiscal obligations and collective agreements.”Platform work brings a number of opportunities to the labour market because it is easily accessible and flexible. However, appropriate measures have to be put in place to ensure decent working conditions for platform workers. Fundamental labour and social regulations must be extended to the platform economy and its workers, many of them young people. Given the transnational nature of digital economy, a clear European framework is necessary to address the many regulatory challenges arising from platform work, including how to determine the existence of an employment relationship”, argues the rapporteur, who welcomes Commissioner Schmit’s intention to address labour conditions of platform workers and new forms of precariousness.The second opinion calls for the EU to define clearly the status of collaborative economy platforms, according to the precise degree of control exercised by the platform, in order to clarify the question of which rules govern their operations. Furthermore, as the collaborative economy blurs the line between personal and professional actors, the concept of “service provider” should be clarified through EU-wide thresholds. The new EU regulations should also require platforms to provide public authorities with the necessary data to enforce the rules and to ensure that collaborative economy suppliers pay their fair share of taxes.

Parliament adopts new rules for short-stay visas

Positive incentives for non-EU countries cooperating on readmitting irregular migrants.
The EU will simplify procedures for requesting and issuing short-stay visas and will use its visa policy to encourage non-EU countries to cooperate on migration.
Parliament approved on Wednesday the new EU Visa Code, already informally agreed with the Council of Ministers. The law establishes the procedures and conditions for issuing visas to nationals of more than one hundred non-EU countries travelling to the EU for short periods (up to 90 days in any 180-day period).Procedures for bona fide travellers will be simpler, and there will be a direct link between visa and migration policy.
Visa applications will have to be submitted between six months (instead of the current three months) and 15 days ahead of the intended trip, except for seafarers, who will be allowed to submit applications nine months in advance.Among other changes:
the general visa fee will increase from 60 to 80 euros -with a possible reduction for people under 18 years old-, and children under six, students and researchers will continue to be exempt from paying the visa fee;
the new prerequisite to buy travel health insurance will be assessed by the European Commission 15 months after being introduced, taking into account the actual medical costs incurred by visa-holders;
EU member states will have to work with external service providers to manage visa requests in non-EU countries where they are neither present nor represented; and
frequent travellers might be eligible for multiple entry visas.
Cooperation on readmission by non-EU countries
Some provisions, such as the visa fees, the time taken to issue decisions on applications, and the length of time for which multiple entry visas are valid, may be adapted depending on whether a given non-EU country cooperates “sufficiently”, or alternatively “insufficiently” on readmitting irregular migrants, following a full and objective assessment carried out by the European Commission every year.

New EU-wide rules against non-cash payment fraud

New EU rules to protect EU citizens against non-cash payment fraud, such as credit card theft, skimming or phishing, were approved by European Parliament.
MEPs adopted on Wednesday with 587 votes to 26 and 8 abstentions, new rules on combating fraud and counterfeiting of non-cash means of payment such as cards, electronic wallets, mobile payments and virtual currencies. The changes aim to close the current gaps and differences among EU countries’ laws to enhance prevention, detection and punishment of non-cash payment fraud.The new rules will:establish the minimum penalty in cases where a judge imposes the national “maximum” custodial sentence for non-cash payment fraud,
include virtual-currency transactions in the scope of offences,
improve EU-wide cooperation and facilitate information exchange to ensure cross-border frauds are better dealt with,
strengthen assistance to non-cash fraud victims, such as psychological support, advice on financial, practical and legal matters, and
improve prevention and awareness-raising, e.g. through campaigning, education and on-line information tools with practical examples of fraud cases; special attention should be paid to the needs and interests of vulnerable people.
Non-cash payments are constantly increasing in the digital era. This has made non-cash payment fraud, such as credit card theft or fraud using newer technologies such as skimming or phishing, an important source of income for organised crime.
The new rules have already been agreed upon by the Parliament and Council negotiators in December. After the formal approval of the Council, member states will have two years to adopt national legislation to implement the directive.

Deal on new rules against non-cash payment fraud approved by Civil Liberties MEPs

New EU rules to protect EU citizens against non-cash payment fraud, informally agreed by Parliament and Council in December, were confirmed by Civil Liberties MEPs.Non-cash payments, representing an increasing share of payments, are subject to various forms of fraud including credit card theft, skimming or phishing. The agreed changes aim to close the current gaps and differences among EU countries’ laws to enhance prevention, detection and punishment of these crimes.The new rules take into account traditional non-cash payments such as bank cards or cheques but also new means of non-cash payment, such as electronic wallets, mobile payments and virtual currencies.Read more about the informal agreement reached on 11 December 2018 here.Civil Liberties MEPs backed the deal in a vote by 45 in favour, 1 against, no abstentions.The agreed text now needs to be formally approved by the Parliament as a whole and the Council of the EU before entering into force. The Full House is likely to vote on the agreed text in February.

EU’s judicial cooperation arm, Eurojust, to become more effective with new rules

MEPs adopted on Thursday updated rules to clarify the role of Eurojust and improve its effectiveness. Eurojust, the EU’s judicial cooperation unit, facilitates cross-border investigations and prosecutions of serious crimes in the EU. The changes in the Agency’s functioning and structure, including a new governance model, will make Eurojust more efficient in tackling cross-border crime. The updated rules also take into account the establishment of the European public prosecutor’s office (EPPO), expected to be operational between 2020 and 2021, as well as the new rules on data protection for EU institutions and agencies. Furthermore, with the revision of the rules, the European Parliament and national parliaments will in future be more involved in evaluating Eurojust’s activities.European Parliament rapporteur Axel Voss (EPP, DE) said: “With this reform, we are adapting the legal framework of this crucial agency to the new challenges in our common fight against crime and terrorism. By doing this, we are making sure that Eurojust can continue its excellent work of supporting national authorities, facilitating cross-border investigations and coordinating prosecutions.” The new rules were approved by 515 votes to 64, with 26 abstentions. They have already been agreed upon by the Parliament and Council negotiators in June, but still require the formal approval of the Council.

Stronger rules on data protection by EU institutions agreed with Council

New rules to strengthen data protection in EU institutions, bodies and agencies were informally agreed by Parliament and Council negotiators on Wednesday.The aim of the update of the existing rules from 2001 is to bring them in to line with the General Data Protection Regulation (GDPR) as well as the proposed e-privacy rules to uphold citizens’ right to personal data protection.
The new rules will cover EU institutions, bodies, offices and agencies to ensure a strong and coherent framework for data processing. Contrary to the past, the rules will also apply to Eurojust as soon as the reform of the agency will be agreed by the Parliament and the Council. Furthermore, in 2022 the rules should be extended to Europol and the European Public Prosecutor’s Office following to a review by the Commission.Parliament and Council negotiators agreed to strengthen the role of the European Data Protection Supervisor (EDPS), the independent supervisory authority that ensures the application of the rules across all the EU institutions and bodies. The European Data Protection Supervisor will also be able to fine EU institutions or bodies that do not live up to the data protection rules.

All EU bodies must follow same data protection rules, Parliament insists

Strasbourg. The new data protection rules for EU institutions, bodies and agencies must cover all EU bodies to ensure strong and coherent data protection safeguards and avoid loopholes,
Parliament’s chief negotiator regrets that it has not yet been possible to reach a compromise with Council negotiators in the inter-institutional talks.
Parliament’s lead MEP on the new data protection rules for data processed by the EU institutions, Cornelia Ernst (GUE/ NGL, DE) said after the latest meeting with Council negotiators on Tuesday in Strasbourg: “Our goal with this regulation is to create a single, unified framework for the protection of personal data by the EU institutions, bodies, offices and agencies. In order to achieve the best level of data protection for citizens, our rules have to function well together with those of the General Data Protection Regulation, which will be applied from 25 May 2018 by all governments and businesses in the EU.
– The same is true for EU agencies that are tasked with law enforcement. When from May 2018 the new EU rules will take effect, it is necessary that the rules for agencies like Europol and Eurojust will be harmonised and fit to work together with the rules that police all over the EU will use. That is why the Parliament insists that these agencies must be covered by this regulation. Excluding them, as the Council wants, will undermine the protection of personal data, because the rules will not match, and loopholes might occur. Excluding them will also hamper data exchanges between member states’ police authorities and Europol, or between Frontex and Europol.
– I regret that the Council is unwilling to even discuss Parliament’s position. All our proposals to find an agreement have been turned down citing time pressure and technical details. In law making, it is usually better to favour quality over speed.
– Parliament has done its utmost to come up with solutions, but we have never received any constructive proposals from the Council. It is our sincere hope that it will be feasible to reach a swift and viable compromise with the incoming Presidency in order to allow the new rules to come into force as quickly as possible”.
The Civil Liberties Committee passed its negotiation mandate on 12 October with a broad majority in favour.The main rules on data protection in the EU institutions are laid down in a regulation from 2001. The new law aims to update these existing rules and bring them into line with the more stringent principles of the General Data Protection Regulation which will become applicable on 25 May 2018.

America’s global influence has dwindled under Donald Trump

A YEAR ago this week Donald Trump was elected president. Many people predicted that American foreign policy would take a disastrous turn. Mr Trump had suggested that he would scrap trade deals, ditch allies, put a figurative bomb under the rules-based global order and drop literal ones willy-nilly. NATO was “obsolete”, he said; NAFTA was “the worst trade deal maybe ever”; and America was far too nice to foreigners. “In the old days when you won a war, you won a war. You kept the country,” he opined, adding later that he would “bomb the shit out of” Islamic State (IS) and “take the oil”.So far, Mr Trump’s foreign policy has been less awful than he promised. Granted, he has pulled America out of the Paris accord, making it harder to curb climate change, and abandoned the Trans-Pacific Partnership, a big trade deal. However, he has not retreated pell-mell into isolationism. He has not quit NATO; indeed, some of America’s eastern European allies prefer his tough-talk to the cool detachment of Barack Obama. He has not started any wars. He has stepped up America’s defence of Afghanistan’s beleaguered government, and helped Iraq recapture cities from IS. In the parts of the world to which he pays little attention, such as Africa, an understaffed version of the previous administration’s policy continues on autopilot. As Mr Trump makes a 12-day visit to Asia, it is hard to dismiss him as a man wholly disengaged from the world.
Many people find reassurance in the sober, capable military men who surround him (see article). His chief of staff, his defence secretary and his national security adviser all understand the horrors of war and will stop him from doing anything rash, the argument goes. Optimists even speculate that he might emulate Ronald Reagan, by shaking up the diplomatic establishment, restoring America’s military muscle and projecting such strength abroad that a frightened, overstretched North Korea will crumble like the Soviet Union. Others confidently predict that even if he causes short-term damage to America’s standing in the world, Mr Trump will be voted out in 2020 and things will return to normal.
All this is wishful thinking. On security, Mr Trump has avoided some terrible mistakes. He has not started a needless row with China over Taiwan’s ambiguous status, as he once threatened to do. Congress and the election-hacking scandal prevented him from pursuing a grand bargain with Vladimir Putin that might have left Russia’s neighbours at the Kremlin’s mercy. And he has apparently coaxed China to exert a little more pressure on North Korea to stop expanding its nuclear arsenal.However, he has made some serious errors, too, such as undermining the deal with Iran that curbs its ability to make nuclear bombs. And his instincts are atrocious. He imagines he has nothing to learn from history. He warms to strongmen, such as Mr Putin and Xi Jinping. His love of generals is matched by a disdain for diplomats—he has gutted the State Department, losing busloads of experienced ambassadors. His tweeting is no joke: he undermines and contradicts his officials without warning, and makes reckless threats against Kim Jong Un, whose paranoia needs no stoking. Furthermore, Mr Trump has yet to be tested by a crisis. Level-headed generals may advise him, but he is the commander-in-chief, with a temperament that alarms friend and foe alike.
On trade, he remains wedded to a zero-sum view of the world, in which exporters “win” and importers “lose”. (Are the buyers of Ivanka Trump-branded clothes and handbags, which are made in Asia, losers?) Mr Trump has made clear that he favours bilateral deals over multilateral ones, because that way a big country like America can bully small ones into making concessions. The trouble with this approach is twofold. First, it is deeply unappealing to small countries, which by the way also have protectionist lobbies to overcome. Second, it would reproduce the insanely complicated mishmash of rules that the multilateral trade system was created to simplify and trim. The Trump team probably will not make a big push to disrupt global trade until tax reform has passed through Congress. But when and if that happens, all bets are off—NAFTA is still in grave peril.Perhaps the greatest damage that Mr Trump has done is to American soft power. He openly scorns the notion that America should stand up for universal values such as democracy and human rights. Not only does he admire dictators; he explicitly praises thuggishness, such as the mass murder of criminal suspects in the Philippines. He does so not out of diplomatic tact, but apparently out of conviction. This is new. Previous American presidents supported despots for reasons of cold-war realpolitik. (“He’s a bastard, but he’s our bastard,” as Harry Truman is reputed to have said of an anti-communist tyrant in Nicaragua.) Mr Trump’s attitude seems more like: “He’s a bastard. Great!”
This repels America’s liberal allies, in Europe, East Asia and beyond. It emboldens autocrats to behave worse, as in Saudi Arabia this week, where the crown prince’s dramatic political purges met with Mr Trump’s blessing (see article). It makes it easier for China to declare American-style democracy passé, and more tempting for other countries to copy China’s autocratic model (see article).
The idea that things will return to normal after a single Trump term is too sanguine. The world is moving on. Asians are building new trade ties, often centred on China. Europeans are working out how to defend themselves if they cannot rely on Uncle Sam. And American politics are turning inward: both Republicans and Democrats are more protectionist now than they were before Mr Trump’s electoral triumph.
For all its flaws, America has long been the greatest force for good in the world, upholding the liberal order and offering an example of how democracy works. All that is imperilled by a president who believes that strong nations look out only for themselves. By putting “America First”, he makes it weaker, and the world worse off. (by The Economist) (foto: cover economist)