EU taxation of multinationals—bypassing the unanimity blockage – by Tommaso Faccio and Francesco Saraceno

The French car-service company Heetch recently displayed an advertising campaign on the streets of Paris (see photo), which proudly affirmed its presence in many French cities but not in Luxembourg—a clear allusion to the tax headquarters of some of its competitors. The fact that ‘paying taxes in France’ has become a commercial argument shows that the issue of corporate avoidance is rising up the public agenda in many countries.

Yet the G20 process on taxing digital firms and introducing a global minimum tax to limit tax competition, led by the Organisation for Economic Co-operation and Development, failed to reach consensus in 2020, mostly because of determination by the United States to protect its digital giants. The European Commission has made clear that, were the G20 to fail to deliver a global solution by mid-2021, it will act. But the EU is stuck between a rock—the US position will likely not change with the new administration—and a hard place: its own tax havens.

Read more at: EU taxation of multinationals—bypassing the unanimity blockage – Tommaso Faccio and Francesco Saraceno

EU-Britain Relations: Brexit: EU, UK finally clinch ′historic′ trade deal

The United Kingdom and the European Union have agreed to a post-Brexit free trade deal, sealing the UK's exit from the bloc, the UK government and EU announced on Thursday.

EU Commission chief Ursula von der Leyen said at a press conference on Thursday that: "It was a long and winding road, but we have a good deal to show for it."

The UK Prime Minister Boris Johnson tweeted an image of himself in front of a British flag with his thumbs up. The picture was accompanied by the text: "The deal is done."

Read more at: Brexit: EU, UK finally clinch ′historic′ trade deal | News | DW | 24.12.2020

EU-China: Council authorises signature of the agreement on geographical indications

The Council today adopted decisions on the signature of the agreement between the European Union and the government of the People's Republic of China on geographical indications (GIs).

This is the first significant bilateral trade agreement signed between the EU and China.

It will ensure that 100 EU agri-food GIs ("Geographical Indications") such as Mozzarella di Bufala Campana, Languedoc wine, Polska Wódka or Elia Kalamatas get protection on the Chinese market. Likewise, 100 Chinese products will be protected in the EU, thereby ensuring mutual respect of the best of both agricultural traditions.

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EU-China: Council authorises signature of the agreement on geographical indications - Consilium

Data Protection: EU, Japan edge towards data protection dealbusiness and politics

Following the July conclusion of EU-Japan talks on personal data flows, the Commission launched Thursday a procedure for adoption of its decision on data protection adequacy between the two blocs.

"We are creating the world's largest area of safe data flows," said the EU's Justice Commissioner Vera Jourova, as she briefed the College of Commissioners on next steps and the Commission published the draft adequacy decision and the related documents.

This includes additional safeguards that Japan will apply to EU personal data transferred to Japan, as well as commitments regarding access to personal data by Japanese public authorities for law enforcement and national security purposes, guaranteeing that their level of data protection is adequate to that of the EU's. Japan is going through a similar process to recognise the EU's data protection framework.

Read more : EU, Japan edge towards data protection deal — EUbusiness.com | EU news, business and politics

Data Protection: EU, Japan edge towards data protection dealbusiness and politics

Following the July conclusion of EU-Japan talks on personal data flows, the Commission launched Thursday a procedure for adoption of its decision on data protection adequacy between the two blocs.

"We are creating the world's largest area of safe data flows," said the EU's Justice Commissioner Vera Jourova, as she briefed the College of Commissioners on next steps and the Commission published the draft adequacy decision and the related documents.

This includes additional safeguards that Japan will apply to EU personal data transferred to Japan, as well as commitments regarding access to personal data by Japanese public authorities for law enforcement and national security purposes, guaranteeing that their level of data protection is adequate to that of the EU's. Japan is going through a similar process to recognise the EU's data protection framework.

Read more : EU, Japan edge towards data protection deal — EUbusiness.com | EU news, business and politics

Britain - Brexit: Negotiators ready Brexit transition deal, Irish border uncertainty persists

Negotiators from the European Union and Britain on Monday hailed major progress in the Brexit talks, but conceded there had been no breakthrough on keeping open the Irish border.

Britain is due to leave the European Union at the end of March 2019, but Brexit talks must be concluded by this fall to leave national parliaments in the bloc time to ratify any deal.

"We have travelled a large section of the path toward an orderly withdrawal," EU chief negotiator Michel Barnier told reporters in Brussels. He said that negotiators, working day and night recently, had agreed on "a large part of what would constitute" the draft legal treaty governing Britain's departure.

He said the two sides have also reached an agreement on a transition period to help ease Britain out of the EU once it officially leaves on March 29, 2019. Barnier said the period would be "of a limited duration," in all likelihood ending on Dec. 31, 2020.

Read more: Negotiators ready Brexit transition deal, Irish border uncertainty persists - France 24

Germany: EU relieved after Merkel clinches grand coalition deal - by Eric Maurice

Germany's Christian Democratic Union (CDU/CSU) and Social Democratic Party (SPD) concluded a coalition agreement on Wednesday (7 February), taking a step closer to ending a five-month long period of political limbo in Berlin.

The deal, under which the two partners will share what they considered as the most crucial ministries for themselves, will however to be approved by SPD members in the coming weeks.

Chancellor Angela Merkel's Christian Democrats will occupy the ministries of interior, defence, agriculture, economy and health.

The sensitive interior portfolio - with the management of migration policies - was expected to go to Horst Seehofer, the leader of the CSU, the CDU's Bavarian branch. Seehofer, a hardliner, has been one of the main opponents of Merkel's migration policy since 2015.

Peter Altmeier, one of Merkel's closest allies, and finance minister since September, was expected to become economy and energy minister.



The finance ministry has been attributed to the SPD, with Hamburg's mayor Olaf Schorf being the favourite for the post, also as vice-chancellor.



Social Democrats will also get the ministries of labour and social affairs, justice, as well as foreign affairs for Martin Schulz, Merkel's opponent in the elections last September.


Schulz meanwhile will quit the SPD leadership and be replaced by Andrea Nahles, the leader of the party's group in the Bundestag.

Read more:  EU relieved after Merkel clinches grand coalition deal

Greece Economy: A positive agreement for Greece

On 15 June, Greece’s creditors, Eurogroup, acknowledged the achievements of the Greek government on the implementation and outcome of fiscal policy measures.

The release of the next bailout tranche was agreed; more clarity was provided on the debt relief roadmap as well as next steps towards boosting growth.

These developments have delivered a positive signal to the markets and the Greek people, indicating that the Greek economy is steadily exiting the final stages of a longstanding and harrowing financial crisis.

For the first time since 2010, Greece’s creditors have pledged to prioritize a growth-oriented model that entails the participation of the European Investment Bank in medium- and large-scale investment projects, as well as the creation of a Greek Development Bank – a proposal that the Greek government has made since 2015.

The reluctance of the German finance minister, Wolfgang Schaeuble, to accelerate the conclusion of the bailout review was significantly addressed after the Greek government, the European Commission, the French government and the progressive forces in the European institutions pressured the Eurogroup to agree to Greece’s bailout review.

The French played a mediating role for the need to develop growth policies, so that the Greek economy can start warming its engines.

Read more: A positive agreement for Greece

EU Privacy Laws: EU Commission and United States agree on new framework for transatlantic data flows: EU-US Privacy Shield

EU-US Agreement - Transatlantic Data flows

The College of EU Commissioners recently  approved the political agreement reached and has mandated Vice-President Ansip and Commissioner Jourová to prepare the necessary steps to put in place the new arrangement. This new framework will protect the fundamental rights of Europeans where their data is transferred to the United States and ensure legal certainty for businesses.

The EU-US Privacy Shield reflects the requirements set out by the European Court of Justice in its ruling on 6 October 2015, which declared the old Safe Harbour framework invalid. The new arrangement will provide stronger obligations on companies in the U.S. to protect the personal data of Europeans and stronger monitoring and enforcement by the U.S. Department of Commerce and Federal Trade Commission (FTC), including through increased cooperation with European Data Protection Authorities.

The new arrangement includes commitments by the U.S. that possibilities under U.S. law for public authorities to access personal data transferred under the new arrangement will be subject to clear conditions, limitations and oversight, preventing generalised access. Europeans will have the possibility to raise any enquiry or complaint in this context with a dedicated new Ombudsperson.

Vice-President Ansip said: "We have agreed on a new strong framework on data flows with the US. Our people can be sure that their personal data is fully protected. Our businesses, especially the smallest ones, have the legal certainty they need to develop their activities across the Atlantic. We have a duty to check and we will closely monitor the new arrangement to make sure it keeps delivering. Today's decision helps us build a Digital Single Market in the EU, a trusted and dynamic online environment; it further strengthens our close partnership with the US. We will work now to put it in place as soon as possible."

Commissioner Jourová said: "The new EU-US Privacy Shield will protect the fundamental rights of Europeans when their personal data is transferred to U.S. companies. For the first time ever, the United States has given the EU binding assurances that the access of public authorities for national security purposes will be subject to clear limitations, safeguards and oversight mechanisms. Also for the first time, EU citizens will benefit from redress mechanisms in this area. In the context of the negotiations for this agreement, the US has assured that it does not conduct mass or indiscriminate surveillance of Europeans. We have established an annual joint review in order to closely monitor the implementation of these commitments."

The new arrangement will include the following elements:

• Strong obligations on companies handling Europeans' personal data and robust enforcement: U.S. companies wishing to import personal data from Europe will need to commit to robust obligations on how personal data is processed and individual rights are guaranteed. The Department of Commerce will monitor that companies publish their commitments, which makes them enforceable under U.S. law by the US. Federal Trade Commission. In addition, any company handling human resources data from Europe has to commit to comply with decisions by European DPAs.

• Clear safeguards and transparency obligations on U.S. government access: For the first time, the US has given the EU written assurances that the access of public authorities for law enforcement and national security will be subject to clear limitations, safeguards and oversight mechanisms. These exceptions must be used only to the extent necessary and proportionate. The U.S. has ruled out indiscriminate mass surveillance on the personal data transferred to the US under the new arrangement. To regularly monitor the functioning of the arrangement there will be an annual joint review, which will also include the issue of national security access. The European Commission and the U.S. Department of Commerce will conduct the review and invite national intelligence experts from the U.S. and European Data Protection Authorities to it.

• Effective protection of EU citizens' rights with several redress possibilities: Any citizen who considers that their data has been misused under the new arrangement will have several redress possibilities. Companies have deadlines to reply to complaints. European DPAs can refer complaints to the Department of Commerce and the Federal Trade Commission. In addition, Alternative Dispute resolution will be free of charge. For complaints on possible access by national intelligence authorities, a new Ombudsperson will be created.

Next steps
The College has today mandated Vice-President Ansip and Commissioner Jourová to prepare a draft "adequacy decision" in the coming weeks, which could then be adopted by the College after obtaining the advice of the Article 29 Working Party and after consulting a committee composed of representatives of the Member States. In the meantime, the U.S. side will make the necessary preparations to put in place the new framework, monitoring mechanisms and new Ombudsman.

Background
On 6 October, the Court of Justice declared in the Schrems case that Commission’s Decision on the Safe Harbour arrangement was invalid. The judgment confirmed the Commission's approach since November 2013 to review the Safe Harbour arrangement, to ensure in practice a sufficient level of data protection as required by EU law.

On 15 October, Vice-President Ansip, Commissioners Oettinger and Jourová met business and industry representatives who asked for a clear and uniform interpretation of the ruling, as well as more clarity on the instruments they could use to transfer data.

On 16 October, the 28 national data protection authorities (Article 29 Working Party) issued a statement on the consequences of the judgment.

On 6 November, the Commission issued guidance for companies on the possibilities of transatlantic data transfers following the ruling until a new framework is put in place.

On 2 December, the College of Commissioners discussed the progress of the negotiations. Commissioner Jourová received a mandate to pursue the negotiations on a renewed and safe framework with the USA.

Insure-Digest

France: COP21 climate change summit reaches deal in Paris

A deal to attempt to limit the rise in global temperatures to less than 2C has been agreed at the climate change summit in Paris after two weeks of negotiations.

The pact is the first to commit all countries to cut carbon emissions.

The agreement is partly legally binding and partly voluntary.

Earlier, key blocs, including the G77 group of developing countries, and nations such as China and India said they supported the proposals.

President of the UN climate conference of parties (COP) and French Foreign Minister Laurent Fabius said: "I now invite the COP to adopt the decision entitled Paris Agreement outlined in the document.

"Looking out to the room I see that the reaction is positive, I see no objections. The Paris agreement is adopted."

Read More: COP21 climate change summit reaches deal in Paris - BBC News