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Biden G7 and NATO to-do list: Unite allies, fight autocracy, attack COVID-19

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President Joe Biden’s meeting with leaders of the G7 leading industrial economies in an English seaside village this week will usher in a new focus on rallying US allies against common adversaries - the COVID-19 pandemic, Russia and China, Reuters.

New COVID-19 variants and rising death tolls in some countries will loom large during the gathering from Friday to Sunday (11-13 June), alongside climate change, strengthening global supply chains and ensuring the West maintains its technological edge over China, the world's second-largest economy.

Biden, a Democrat, vowed to rebuild relations with allies after four rocky years under former President Donald Trump, who pulled Washington out of several multilateral institutions and threatened at one point to quit NATO.

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"In this moment of global uncertainty, as the world still grapples with a once-in-a-century pandemic, this trip is about realizing America’s renewed commitment to our allies and partners," Biden wrote in an opinion piece published by the Washington Post on Saturday.

The gathering will put Biden's "America is back" motto to the test, with allies disillusioned during the Trump years looking for tangible, lasting action.

It is a pivotal moment for the United States and the world, former British Prime Minister Gordon Brown said on CNN on Sunday.

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"Is international cooperation going to be restored or are we still in this world where nationalism, protectionism and to some extent isolationism are dominating?" Brown asked.

Russia will be at the forefront of attention at the G7 summit in Cornwall, England, and the days afterward when Biden meets with European leaders and NATO allies in Brussels, before heading to Geneva to meet Russian President Vladimir Putin.

The recent ransomware attack on JBS (JBSS3.SA), the world’s largest meatpacker, by a criminal group likely based in Russia, and Putin’s financial backing for Belarus after it forced a Ryanair (RYA.I) flight to land so it could arrest a dissident journalist on board, are pushing U.S. officials to consider sharper action.

On the sidelines of the NATO summit, Biden is also expected to meet with Turkish President Tayyip Erdogan, a crucial session between the sparring NATO allies after Ankara's purchase of Russian defense systems angered Washington and risked driving a wedge within the alliance.

G7 finance ministers reached a landmark global deal on Saturday (5 June to set a minimum global corporate tax rate of at least 15%, potentially hitting giant tech companies like Alphabet Inc’s (GOOGL.O) Google, Facebook Inc (FB.O) and Amazon.com Inc. (AMZN.O) Biden and his counterparts will give the deal their final blessing in Cornwall. The Biden administration, which on Thursday (3 June) detailed its plans to donate 80 million doses of COVID-19 vaccines globally by the end of June, is leaning heavily on allies to follow suit as the global pandemic death toll approaches 4 million, US and diplomatic sources say.

Washington reversed course last month and backed negotiations over waivers for intellectual property protections at the World Trade Organization to speed vaccine production in developing countries, much to the chagrin of Germany and Britain.

European diplomats say they see little common ground on the issue, and argue that any WTO compromise would take months to finalize and implement. That may prove a moot point if sufficient vaccine doses are shared with developing countries to slow - and eventually halt - the pandemic.

Biden announced plans in May to require U.S. government contractors and financial institutions to be more transparent about the climate change risks faced by their investments, and administration officials are pushing other countries to adopt similar plans.

The UK also wants governments to require businesses to report such risks as a way to boost investment in green projects. But agreement on a way forward is unlikely to come in June. A deal could emerge at a U.N. climate summit in Glasgow, Scotland, in November.

G7 countries also have different views on carbon pricing, which the International Monetary Fund views as a key way to curb carbon dioxide emissions and reach net-zero emissions by 2050.

The Biden administration will urge allies to unite against China over allegations of forced labor in Xinjiang province, home to the Muslim Uighur minority, even as it seeks to maintain Beijing as an ally in the climate change fight.

Sources following the discussions say they expect G7 leaders to adopt strong language on the forced labor issue. China denies all accusations of abuse in Xinjiang.

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Commission approves €1.8 million Latvian scheme to support cattle farmers affected by the coronavirus outbreak

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The European Commission has approved a €1.8 million Latvian scheme to support farmers active in the cattle-breeding sector affected by the coronavirus outbreak. The scheme was approved under the State Aid Temporary Framework. Under the scheme, the aid will take the form of direct grants. The measure aims at mitigating the liquidity shortages that the beneficiaries are facing and at addressing part of the losses they incurred due to the coronavirus outbreak and the restrictive measures that the Latvian government had to implement to limit the spread of the virus. The Commission found that the scheme is in line with the conditions of the Temporary Framework.

In particular, the aid (i) will not exceed €225,000 per beneficiary; and (ii) will be granted no later than 31 December 2021. The Commission concluded that the measure is necessary, appropriate and proportionate to remedy a serious disturbance in the economy of a member state, in line with Article 107(3)(b) TFEU and the conditions set out in the Temporary Framework. On this basis, the Commission approved the scheme under EU state aid rules. More information on the Temporary Framework and other actions taken by the Commission to address the economic impact of the coronavirus pandemic can be found here. The non-confidential version of the decision will be made available under the case number SA.64541 in the state aid register on the Commission's competition website once any confidentiality issues have been resolved.

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Commission approves €500,000 Portuguese scheme to further support the passenger transport sector in Azores in the context of the coronavirus outbreak

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The European Commission has approved a €500,000 Portuguese scheme to further support the passenger transport sector in the Region of the Azores in the context of the coronavirus outbreak. The measure was approved under the State Aid Temporary Framework. It follows another Portuguese scheme to support the passenger transport sector in Azores that the Commission approved on 4 June 2021 (SA.63010). Under the new scheme, the aid will take the form of direct grants. The measure will be open to collective passenger transport companies of all sizes active in the Azores. The purpose of the measure is to mitigate the sudden liquidity shortages that these companies are facing and to address losses incurred over 2021 due to the coronavirus outbreak and the restrictive measures that the government had to implement to limit the spread of the virus.

The Commission found that the Portuguese scheme is in line with the conditions set out in the Temporary Framework. In particular, the aid (i) will not exceed €1.8 million per company; and (ii) will be granted no later than 31 December 2021. The Commission concluded that the measure is necessary, appropriate and proportionate to remedy a serious disturbance in the economy of a member state, in line with Article 107(3)(b) TFEU and the conditions of the Temporary Framework. On this basis, the Commission approved the measure under EU state aid rules. More information on the Temporary Framework and other actions taken by the Commission to address the economic impact of the coronavirus pandemic can be found here. The non-confidential version of the decision will be made available under the case number SA.64599 in the state aid register on the Commission's competition website once any confidentiality issues have been resolved.

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Commission authorizes French aid scheme of €3 billion to support, through loans and equity investments, companies affected by the coronavirus pandemic

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The European Commission has cleared, under EU state aid rules, France's plans to set up a € 3 billion fund that will invest through debt instruments and equity and hybrid instruments in companies affected by the pandemic. The measure was authorized under the Temporary State Aid Framework. The scheme will be implemented through a fund, titled 'Transition Fund for Businesses Affected by the COVID-19 Pandemic', with a budget of € 3bn.

Under this scheme, support will take the form of (i) subordinated or participating loans; and (ii) recapitalization measures, in particular hybrid capital instruments and non-voting preferred shares. The measure is open to companies established in France and present in all sectors (except the financial sector), which were viable before the coronavirus pandemic and which have demonstrated the long-term viability of their economic model. Between 50 and 100 companies are expected to benefit from this scheme. The Commission considered that the measures complied with the conditions set out in the temporary framework.

The Commission concluded that the measure was necessary, appropriate and proportionate to remedy a serious disturbance in the economy of France, in accordance with Article 107 (3) (b) TFEU and the conditions set out in the temporary supervision. On this basis, the Commission authorized these schemes under EU state aid rules.

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Executive Vice President Margrethe Vestager (pictured), competition policy, said: “This €3bn recapitalization scheme will allow France to support companies affected by the coronavirus pandemic by facilitating their access funding in these difficult times. We continue to work closely with member states to find practical solutions to mitigate the economic impact of the coronavirus pandemic while respecting EU regulations.”

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