“EU Response to Economic Crisis and relevant Policy issues ... · 1 “EU Response to Economic...
Transcript of “EU Response to Economic Crisis and relevant Policy issues ... · 1 “EU Response to Economic...
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“EU Response to Economic Crisis and relevant Policy issues for the Metals and
Mining sector”
JOINT STUDY GROUPS’ SEMINAR7 October 2009, Lisbon, Portugal
Note: These slides are a simplified presentation that do not necessarily represent an official point of view of the European Commission
1. Policy Response to the Economic Crisis – European Economic Recovery Plan (EERP)
2. EU Climate Change Policy – Preparation for Copenhagen summit
3 Raw Materials Initiative
Note: These slides are a simplified presentation that do not necessarily represent an official point of view of the European Commission
3. Raw Materials Initiative
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Manufacturing growth rate y-o-y (lhs) Industrial confidence indicator (rhs)
EU27 manufacturing, basic metals and metals using sectors: growth rate (% change in comparison to the corresponding period of the previous year)
Note: These slides are a simplified presentation that do not necessarily represent an official point of view of the European Commission
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EU27 manufacturing, basic metals and metals using sectors – monthly evolution (seasonally adjusted data)
Note: These slides are a simplified presentation that do not necessarily represent an official point of view of the European Commission
Policy Response: European Economic Recovery Plan
Endorsed by European Council in December 2008, includes:
• Measures to stabilise financial markets and stop the freeze on lending.
• Short term measures - stimulate demand and boost consumer confidence1.5% of EU GDP (around €200 billion)
• Major part from Member States• €30 billion from EU funding
Note: These slides are a simplified presentation that do not necessarily represent an official point of view of the European Commission
• Long-term: Structural reforms Based on 4 priority areas of the Lisbon Strategy (people, business, infrastructure and energy, research and innovation).
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Policy Response: European Economic Recovery Plan
• The Economic recovery plan is based on the following principles:
• National budgetary stimulus should be timely, targeted & temporary;• It should mix revenue instruments (tax incentives, and temporary reductions in
VAT) and expenditure instruments. • Budgetary stimulus should be accompanied by structural reforms that support
demand;
Note: These slides are a simplified presentation that do not necessarily represent an official point of view of the European Commission
• Ensure non-discrimination and maintaining competition rules on the internal market;
• Keeping the Single Market open to trading partners and respect international commitments, avoiding protectionism.
Policy Response: European Economic Recovery Plan
Example of EERP initiative focusing on industry:
• To support innovation in manufacturing and facilitate its transition to the low-carbon economy, the EC proposed 3 public-private partnerships co-funded by the Community, the EIB, industry and Member States:
“Green cars” (estimated funding of €5 bn., incl. €1 bn. for research);
Energy-efficient buildings (€1 bn.);
Note: These slides are a simplified presentation that do not necessarily represent an official point of view of the European Commission
gy g ( );
“Factories of the future” (€1.2 bn.);
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Policy Response: European Economic Recovery Plan
18 19 J 2009 E C il• 18-19 June 2009 European Council
The Commission presented a positive assessment of the policies implemented under the EU recovery plan:
• European and national stimulus packages amount to 2.1% of GDP for 2009-2010. The total stimulus (incl. so-called automatic stabilisers) amounts to over 5% of EU GDP (a figure comparable to the US effort).
Agreed the Commission's proposals for the new system of financial supervision - new European Systemic Risk Council and new EU level
Note: These slides are a simplified presentation that do not necessarily represent an official point of view of the European Commission
supervision new European Systemic Risk Council and new EU level supervisory authorities,
Approved the Commission's proposals to support employment (incl. accelerating €19 billion of planned European social funding, new € 500 million microfinance facility for SME and new EU targets for training and apprenticeships).
Policy Response: European Economic Recovery Plan
• Next steps:
• Legislative initiatives to give effect to the proposed new European system of financial supervision
• The EU will continue to implement the Recovery Plan. Key Commission initiatives will be put into effect, including:
the investment, agreed earlier this year, of €5 billion from Community funds in strategic energy projects and in promoting broadband in rural areas
Note: These slides are a simplified presentation that do not necessarily represent an official point of view of the European Commission
disbursements from the European Globalisation Adjustment Fund in line with the increased access and simplified
full implementation of legislative measures adopted on for example capital requirements, deposit guarantees, credit ratings agencies, and the insurance industry (Solvency II).
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UNFCCC summit in Copenhagen 2009
I t ti l ti ti d t l d l b l t t th• International negotiations are under way to conclude a global agreement at the UN climate change conference in Copenhagen (December 2009) for the period after 2012.
Key elements of the joint EU approach were endorsed by the European Council on 19.-20. March 2009.
Objectives:
To engage all key global players.
Note: These slides are a simplified presentation that do not necessarily represent an official point of view of the European Commission
Create additional international financing sources to reduce global emissions; provide financial support to most vulnerable countries.
Contribute a global low carbon economy: support lower emissions in energy intensive industries, boost funding for R&D and demonstration.
Emissions Trading Scheme Directive
Political agreement on new ETS Directive was reached by the European Council and by the European Parliament in December 2008 (formally adopted in April 2009).
A harmonised European emission cap for the ‘ETS sector’. Industry to reduce emissions by 21% by 2020 from levels of 2005;
Transitional free allocation to the sectors which meet the criteria to be considered as sectors at risk of ‘carbon leakage’ up to the level set by the benchmarks. For the others, partial and increasing level of auctioning.
Identifying sectors that are at a significant risk of carbon leakage,
• Technical assessment completed by the Commission.D i i b 31/12/2009 ft ti i EP i f th li t i 2010
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• Decision by 31/12/2009 after scrutiny in EP, review of the list in 2010.
Method of free allocation - benchmarks; • Set as the average performance of 10% most efficient installations in a sector.• Development and adoption of benchmarks by 31/12/2010.
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Raw Materials Initiative: State of Implementation
Two working groups were set up :Two working groups were set up : • Defining Critical Raw Materials• Exchange of Best practices on
Access to Land within the EUFirst results foreseen by April /May 2010
C
Note: These slides are a simplified presentation that do not necessarily represent an official point of view of the European Commission
to be included in the Commission report to the Council by the end of the year 2010
Raw Materials Initiative: State of Implementation
International aspectsInternational aspects • On 23 June 2009 EU requested WTO Consultations on
Chinese export restrictions on 9 raw materials (coke, bauxite, fluorspar, silicon carbide, zinc, magnesium and manganese, silicon metal and yellow phosphorous
US and Mexico presented similar requests
Note: These slides are a simplified presentation that do not necessarily represent an official point of view of the European Commission
• International Workshop on Development policies between EU and the World Bank, EITI and UNCTAD on 23 October 2009
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Thank You For Your Attention
Contact:
Note: These slides are a simplified presentation that do not necessarily represent an official point of view of the European Commission
Contact:Abraao CarvalhoHead of Unit G3/Steel, non-ferrous metals, minerals and mineral productsDG Enterprise and Industry
E-mail: [email protected]