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Statement by the European Commission following the fourth meeting of the EU-UK Joint Committee

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The fourth regular meeting of the EU-UK Joint Committee on the implementation and application of the Withdrawal Agreement, co-chaired by Commission Vice President Maroš Šefčovič, took place today (20 October) in London.

The aim of today's meeting was to jointly assess the current state of the implementation work, following the recent meetings of the Specialized Committees, and to reach a shared understanding of the outstanding issues and a detailed timeline for their resolution.

Given the limited time left before the transition period ends, Vice-President Šefčovič underlined the need to concentrate all efforts on both sides on bridging existing implementation gaps and delivering results so that the Withdrawal Agreement is fully operational as of 1 January 2021. This requires moving beyond a business-as-usual approach.

Vice President Šefčovič welcomed the clear political steer and commitment given today by Michael Gove, chancellor of the Duchy of Lancaster and co-chairman of the Joint Committee, so that the EU and the UK can reach mutually agreed solutions on all outstanding issues on the table, in particular with regard to the Protocol on Ireland and Northern Ireland.

In this context, it was agreed that contacts at all levels will significantly intensify. It was also agreed that the next meeting of the Joint Committee would take place in mid-November.

On citizens' rights, the parties welcome the progress made in recent weeks and agreed on the first joint implementation report, which will be published in the coming days. This report provides a first overview of national implementation measures with regard to residence in the EU and UK and will be updated at least every three months until the end of 2021. The EU recalled in particular its commitment to ensuring that UK nationals and their family members living in the EU can avail of their rights by the end of the grace period under the Withdrawal Agreement.

To that end, the vice president confirmed that all EU member states are on track to fully deploy their new residence schemes and process applications from all UK nationals on time. The EU side further sought and received political assurances that under the UK settlement scheme, all EU citizens with residence status will benefit from the same set and level of rights as those guaranteed by the Withdrawal Agreement. This is tangible proof that we are delivering on our commitment to 4.5 million EU and UK nationals.

The Vice-President also confirmed that an agreement had been found with EFTA countries on the decision to extend the social security protections provided by the Withdrawal Agreement to EU, UK and EFTA nationals in triangular situations.

With regard to the implementation of the Protocol on Ireland and Northern Ireland, Vice President Šefčovič reiterated the importance of its full and timely implementation to maintain peace and stability on the island of Ireland by protecting the Good Friday (Belfast) Agreement and ensure the integrity of the EU Single Market.

In this respect, the EU informed the UK that the Commission had adopted a decision to give the UK access to the necessary IT systems, databases and networks needed to fulfil its obligations under the Protocol.

The EU side also strongly reiterated the need for the UK to substantially accelerate work on all necessary measures ensuring full practical implementation, in particular with regard to border control posts, Value Added Tax and the registration of Northern Irish traders for VAT purposes.

Vice President Šefčovič also recalled his strong concerns regarding the lack of progress on the decisions that need to be taken by the Joint Committee, as set out in the Protocol. These decision cover in particular workable arrangements for an EU presence in Northern Ireland, criteria for goods to be considered ‘not at risk' of moving into the Union and the exemption of agricultural subsidies from State aid rules, as well as a Decision correcting errors and omissions in Annex 2 of the Protocol.

Both teams were given clear political direction in today's meeting to operate constructively and make real progress towards our mutually agreed solutions.

Finally, Vice President Šefčovič welcomed the reassurances given by the UK side with regard to the Joint Decision on the list of arbitrators for the dispute settlement mechanism under the Withdrawal Agreement so that it can be established before the end of the year – in time for the arbitration panel to start operating next year.

Today's meeting demonstrated the political will to move at pace on both sides. This is necessary as, despite some progress, much work remains to be done by the UK, in particular with regard to the implementation of the Protocol on Ireland and Northern Ireland in its entirety from 1 January 2021 onwards. The EU reiterated that it is ready to work with the UK to find solutions at full speed and within the framework of the Withdrawal Agreement and EU law.

 

Crime

Over 40 arrested in biggest-ever crackdown against drug ring smuggling cocaine from Brazil into Europe

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In the early hours of the morning (27 November), more than a thousand police officers with the support of Europol carried out co-ordinated raids against the members of this highly professional criminal syndicate. Some 180 house searches were executed, resulting in the arrest of 45 suspects. 

The investigation uncovered that this drug trafficking network was responsible for the annual importation of at least 45 tonnes of cocaine into the main European seaports, with profits exceeding €100 million over the course of 6 months.

This international sting, led by the Portuguese, Belgian and Brazilian authorities, was carried out simultaneously by agencies from three different continents, with coordination efforts facilitated by Europol:

  • Europe: Portuguese Judicial Police (Polícia Judiciária), Belgian Federal Judicial Police (Federale Gerechtelijke Politie, Police Judiciaire Fédérale), Spanish National Police (Policia Nacional), Dutch Police (Politie) and the Romanian Police (Poliția Română)
  • South America: Brazilian Federal Police (Policia Federal)
  • Middle East: Dubai Police Force and Dubai State Security

Results in brief 

  • 45 arrests in Brazil (38), Belgium (4), Spain (1) and Dubai (2).
  • 179 house searches.
  • Over €12m in cash seized in Portugal, €300,000 in cash seized in Belgium and over R$1m and US$169,000 in cash seized in Brazil.
  • 70 luxury vehicles seized in Brazil, Belgium and Spain and 37 aircrafts seized in Brazil.
  • 163 houses seized in Brazil worth in excess of R$132m, two houses seized in Spain worth €4m, and two apartments seized in Portugal worth €2.5m.
  • Financial assets of 10 individuals frozen in Spain.

Global co-operation 

In the framework of intelligence activities underway with its operational counterparts, Europol developed reliable intelligence concerning the international drug trafficking and money laundering activities of a Brazilian organized crime network operating in several EU countries.

The criminal syndicate had direct contact with drug cartels in Brazil and other South American source countries who were responsible for the preparation and the shipments of cocaine in maritime containers bound to major European seaports.

The scale of cocaine importation from Brazil to Europe under their control and command is massive and over 52 tonnes of cocaine were seized by law enforcement over the course of the investigation.

In April 2020, Europol brought together the involved countries who have since been working closely together to establish a joint strategy to bring down the whole network. The main targets were identified on either sides of the Atlantic Ocean.

Since then, Europol has provided continuous intelligence development and analysis to support the field investigators. During the action day, a total of 8 of its officers were deployed on-the-ground in Portugal, Belgium and Brazil to assist there the national authorities, ensuring swift analysis of new data as it was being collected during the action and adjusting the strategy as required.

Commenting on this operation, Europol’s Deputy Director Wil van Gemert said: "This operation highlights the complex structure and vast reach of Brazilian organized crime groups in Europe. The scale of the challenge faced today by police worldwide calls for a coordinated approach to tackle the drug trade across continents. The commitment of our partner countries to work via Europol underpinned the success of this operation and serves as a continued global call to action."

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EU

Navalny calls on Europe to follow the money

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The European Parliament’s Foreign Affairs Committee held an exchange of views with representatives of the Russian political opposition and NGOs on the current political and socio-economic situation in Russia.

Among the speakers was Alexei Navalny, who has recently recovered from being poisoned with a nerve agent similar to the one used in the Salisbury attack targeted at Sergei Skirpal and his daughter. 

Navalny called on Europe to adopt a new strategy towards Russia, that meets the new developments in Russian state leadership. He said that the forthcoming elections for the State Duma would be an absolutely crucial event and that everyone should be able to participate. If opposition politicians are not allowed to participate he asked the European Parliament and every European politician not to recognize the outcome.

Navalny told MEPs that it was not enough to sanction those responsible for carrying out his poisoning and that there was little sense in sanctioning those who didn’t travel a lot or who didn’t own assets in Europe. Instead, he said the main question that should be asked is who gained financially from Putin’s regime. Navalny pointed to the oligarchs, not just the old ones, but the new ones in Putin’s inner circle, with name-checks for Usmanov and Roman Abramovich. He said that these sanctions would be warmly welcomed by most Russians. 

On the various decisions of the European Court of Human Rights that have been ignored by the Russian judiciary, Navalny said it would be very easy to sanction them to prevent them from traveling to Europe and it would be very effective.

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coronavirus

Commission approves German scheme to compensate accommodation providers in the field of child and youth education for damages suffered due to the coronavirus outbreak

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The European Commission approved, under EU state aid rules, a German scheme to compensate accommodation providers for child and youth education for the loss of revenue caused by the coronavirus outbreak. The public support will take the form of direct grants. The scheme will compensate up to 60% of the loss of revenues incurred by eligible beneficiaries in the period between the beginning of the lockdown (which started on different dates across the regional states) and 31 July 2020 when their accommodation facilities had to be closed due to the restrictive measures implemented in Germany.

When calculating the loss of revenue, any reductions in costs resulting from income generated during the lockdown and any possible financial aid granted or actually paid out by the state (and in particular granted under scheme SA.58464) or third parties to cope with the consequences of the coronavirus outbreak will be deducted. At the central government level, facilities eligible to apply will have at their disposal a budget of up to €75 million.

However, these funds are not earmarked exclusively for this scheme. In addition, regional authorities (at Länder or local level) may also make use of this scheme from the local budgets. In any event, the scheme ensures that the same eligible costs cannot be compensated twice by different administrative levels. The Commission assessed the measure under Article 107(2)(b) of the Treaty on the Functioning of the European Union, which enables the Commission to approve state aid measures granted by member states to compensate specific companies or specific sectors for the damages caused by exceptional occurrences, such as the coronavirus outbreak.

The Commission found that the German scheme will compensate damages that are directly linked to the coronavirus outbreak. It also found that the measure is proportionate, as the envisaged compensation does not exceed what is necessary to make good the damages. The Commission therefore concluded that the scheme is in line with EU state aid rules.

More information on 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.59228 in the state aid register on the Commission's competition website.

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