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MEPs clear another hurdle for the COVID-19 recovery plan

EU Reporter Correspondent

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  • Parliament speeds up the reform of the EU’s revenue, allowing the 'Next Generation EU' recovery fund, worth €750 billion, to be used 
  • New sources of revenue will provide new financing for the EU budget, such as a levy on plastic, and help repay the debt created by the recovery fund 
  • EU countries must ratify the key Own Resources Decision as soon as possible 

MEPs approved three laws on implementing the EU’s Own Resources system, paving the way for its reform and the introduction of new sources of EU revenue. On Thursday (25 March), MEPs adopted one implementing and two operational regulations on which methods to use to collect or make available specific Own Resources, which constitute the revenue for the EU budget. The three laws work in conjunction with the key Own Resources Decision (ORD), approved by Parliament in September and by Council in December 2020. The member states are currently in the process of ratifying this decision, with 13 out of 27 having done so already as of 18 March (more information on the ratification here).

The approved regulations include provisions on calculating and simplifying the EU’s revenue, on managing cash flow, and on monitoring and inspection rights. These are needed to ensure the EU budget’s reformed revenue side continues to function smoothly.

Once member states have ratified the Own Resources Decision, the package adopted today will apply retroactively from 1 January 2021. It will introduce the new plastics levy as the first of various new streams of revenue that will be set up between now and 2026. The ORD will enable the EU to borrow €750bn for the Next Generation EU recovery plan.

José Manuel Fernandes (EPP, PT): “Once more, the European Parliament sets the tone. By approving this package, we are ensuring that the EU’s system of own resources will contribute to establishing the ‘Next Generation EU’ recovery plan as soon as the ORD has been ratified by the member states. Today’s vote is a reminder that we need to act quickly and decisively to set up the recovery.”

Valérie Hayer (RENEW, FR): “Parliament is again acting swiftly to make the recovery plan a reality. We now urge all member states to ratify the recovery plan as soon as possible. We cannot afford any delay. In addition, December’s repayment agreement binds the Commission to propose an EU digital levy in June of this year, regardless of what happens at OECD level.”

Vote results

Regulation on own resource based on plastic packaging waste

540 votes in favour, 109 against, 38 abstentions

Implementing measures for the system of own resources

560 votes in favour, 48 against, 82 abstentions

Collection of own resources accruing from value added tax

552 votes in favour, 69 against, 67 abstentions

Background

During the negotiations on the EU’s 2021-2027 long-term budget (“Multiannual Financial Framework”), MEPs obtained a binding road map for new sources of EU revenue. The three steps of the Own Resources road map are as follows:

  • First step (2021): a contribution on plastic introduced in January 2021, new legislative proposals on a carbon border adjustment mechanism, a digital levy and the Emissions Trading Scheme will be submitted by June;
  • Second step (2022 and 2023): Council will deliberate on these new sources of revenue by 1 July 2022 at the latest in order to be able to introduce them by 1 January 2023;
  • Third step (2024-2026): by June 2024, the Commission will put forward a proposal for additional new own resources, which could include a Financial Transaction Tax and a financial contribution from the corporate sector or a new common corporate tax base. Council will deliberate on these new sources of EU revenue by 1 July 2025 at the latest in order to be able to introduce them by 1 January 2026.

    Further information 

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Coronavirus variants: Commission calls for limiting essential travel from India

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The Commission calls on EU member states to take co-ordinated action to further restrict travel from India on a temporary basis, with a view to limiting the spread of the B.1.617.2 variant first detected in India. This follows a proposal of the World Health Organization on 10 May 2021 to change the classification of that variant from “variant of interest” to “variant of concern”. It is important to limit to the strict minimum the categories of travellers that can travel from India for essential reasons and to subject those who may still travel from India to strict testing and quarantine arrangements.

To ensure a fully co-ordinated and efficient response to this variant and taking into account the deteriorating health situation in India, the Commission proposes that member states apply an ‘emergency brake' on non-essential travel from India. On 3 May, the Commission had proposed to add an ‘emergency brake mechanism' to the Council recommendation on restrictions to non-essential travel.

Limited exemptions for those travelling for compelling reasons, subject to strict safeguards

The restrictions should not affect those travelling for compelling reasons such as for imperative family reasons or persons in need of international protection or for other humanitarian reasons. EU citizens and long-term residents, as well as their family members, should still be able to travel to Europe.

For those travellers, the Commission calls on member states to apply additional health-related measures such as strict testing and quarantine arrangements. These measures should apply regardless of whether the travellers have been vaccinated.

Next steps

Any restrictions on essential travel from India should be temporary and regularly reviewed. member states should assess their effectiveness in containing the new variant. When triggering the ‘emergency brake' mechanism to further restrict travel from a non-EU country, the member states meeting within the Council structures should review the situation together in a coordinated manner and in close co-operation with the Commission.

Background

A temporary restriction on non-essential travel to the EU is currently in place from many non-EU countries, including from India, based on a recommendation agreed by the Council.

Following a proposal by the Commission, the Council agreed on 2 February 2021 additional safeguards and restrictions for international travellers into the EU, aimed at ensuring that essential travel to the EU continues safely in the context of the emergence of new coronavirus variants and the volatile health situation worldwide.

On 3 May, the Commission proposed that member states ease the current restrictions on non-essential travel into the EU to take into account the progress of vaccination campaigns and developments in the epidemiological situation worldwide while putting in place a new ‘emergency brake mechanism', to address coronavirus variants. The ‘emergency brake mechanism' is a coordination mechanism intended to limit the risk of variants of interest and variants of concern entering the EU. It allows member states to act quickly and in a coordinated manner to temporarily limit to a strict minimum all travel from a non-EU country where the epidemiological situation worsens quickly and in particular where a variant of concern or interest is detected.

Variants of interest and variants of concern are assessed as such by the World Health Organisation (WHO) and for the EU by the European Centre for Disease Prevention and Control (ECDC) based on key properties of the virus such as transmission, severity and ability to escape immune response.

The European Centre for Disease Prevention and Control has assessed the B.1.617.2 variant first detected in India as a variant of interest and keeps this assessment under constant review. Variants of interest are variants that show increased transmissibility and severity. On 10 May 2021, the World Health Organization proposed to change the classification of the B.1.617.2 variant from “variant of interest” to “variant of concern”.

Under the current Council Recommendation on the temporary restriction on non-essential travel into the EU, member states can temporarily limit the categories of essential travellers that can travel to the EU where the epidemiological situation worsens quickly and where a high incidence of variants of concern of the virus is detected. 

The Council recommendation covers all member states (except Ireland), as well as the four non-EU states that have joined the Schengen area: Iceland, Liechtenstein, Norway and Switzerland. For the purpose of the travel restriction, these countries are covered in a similar way as the member states.

The latest information on the rules applying to entry from non-EU countries as communicated by member states are available on the Re-open EU website.

More information

Press release: Coronavirus: Commission proposes to ease restrictions on non-essential travel to the EU while addressing variants through new ‘emergency brake' mechanism, 3 May 2021

European Centre for Disease Prevention and Control threat assessment brief: Emergence of SARS-CoV-2 B.1.617 variants in India and situation in the EU/EEA, 11 May 2021

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'I'm finally here': Greece formally opens to tourists

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Tourists eat at the Monastiraki district, as the country's tourism season officially opens, in Athens, Greece May 15, 2021. REUTERS/Costas Baltas
Tourists visit the ancient temple of Hephaestus, as the country's tourism season officially opens, in Athens, Greece May 15, 2021. REUTERS/Costas Baltas

Greece formally opened to visitors on Saturday (15 May), kicking off a summer season it hopes will resurrect its vital tourism industry battered by the coronavirus pandemic.

After months of lockdown restrictions, Greece also opened its museums this week, including the Acropolis museum, home to renowned sculptures from Greek antiquity.

"I feel really alive and good because it has been such a hard and long year because of COVID," said Victoria Sanchez, a 22-year-old student on holiday from the Czech Republic.

"I feel again alive," she said, as she strolled near the Roman Agora in downtown Athens.

As of Saturday, foreign tourists will be allowed in Greece if they have been vaccinated or can show negative COVID-19 test results. Travel between regions, including to the islands, will also be allowed for those with negative tests or vaccinations.

"Greece is offering what people need," Tourism Minister Harry Theoharis tweeted. "Calm and care-free moments on the road towards normality."

Tourists in Athens were elated.

"I'm finally here," said Rebecca, a tourist in Athens from Florida, who declined to give her last name. "I've been waiting two years - two years with the COVID."

Greece has been rolling out vaccines to its islands and hopes to vaccinate most of them by the end of June. The government says vaccines and rapid testing, as well as warmer weather allowing outdoor activities, mean visitors can travel safely.

As the pandemic brought international travel to a halt in 2020, Greece suffered its worst year for tourism on record, with 7 million visitors compared with a record 33 million in 2019. Tourist revenues tumbled to 4 billion euros ($4.9 billion) from 18 billion euros.

This year, it is aiming for 40% of 2019 levels.

On the island of Mykonos, one flight was given a water salute upon landing. Four islands in the south Aegean, including Mykonos, received 32 international flights on Saturday from countries including Sweden, Germany and Qatar.

Corfu, in the Ionian sea, welcomed visitors from Germany and France.

"We are so happy. I'm happy to be here," said Pierre-Olivier Garcia, soon after arriving on the island.

Greeks also welcomed the lifting of lockdown measures, with scores of people leaving for the islands or holiday homes on the mainland on Saturday.

"The first weekend of freedom," Alpha TV proclaimed during a broadcast from the busy port of Piraeus.

Greece fared better than much of Europe during the first wave of the pandemic, but rising infections later in 2020 forced it to impose several lockdowns to protect its struggling health system.

A country of 11 million, it has recorded 373,881 infections and 11,322 deaths.

($1 = 0.8237 euros)

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Italian study shows COVID-19 infections, deaths plummeting after jabs

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COVID-19 infections in adults of all ages fell by 80% five weeks after a first dose of Pfizer (PFE.N), Moderna (MRNA.O) or AstraZeneca (AZN.L) vaccine, according to Italian research published on Saturday (15 May).

The first such study by a European Union country on the real-world impact of its immunisation campaign was carried out by Italy's National Institute of Health (ISS) and the Ministry of Health on 13.7 million people vaccinated nationwide.

Scientists started studying data from the day Italy's vaccination campaign began, on Dec. 27 2020, until May 3 2021.

The analysis showed that the risk of SARS-CoV-2 infection, hospitalisation, and death decreased progressively after the first two weeks following the initial vaccination.

"As of 35 days after the first dose, there is an 80% reduction in infections, 90% reduction in hospitalisations, and 95% reduction in deaths," the ISS said, adding that the same pattern was seen in both men and women regardless of age.

"This data confirms the effectiveness of the vaccination campaign and the need to achieve high coverage across the population quickly to end the emergency," ISS president Silvio Brusaferro said in the statement.

Among the nearly 14 million people included in the Italian study, 95% of those who had taken Pfizer and Moderna had completed the vaccine cycle, while none of those given AstraZeneca had received a second dose.

Up until now, Italy has been following the makers' recommendations, giving a second dose of Pfizer three weeks after the first, a second dose of Moderna after a four week gap and a second dose of AstraZeneca after a 12 week gap.

As of Saturday morning, some 8.3 million Italians, or 14% of the population, were completely vaccinated, while around 10 million people had received a first jab.

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