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On 24 July 2020, the governments of France and Spain agreed with Airbus SE to modify the terms of the Repayable Launch Investment granted by them for development of the A350 aircraft to reflect market conditions. Therefore, the European Union and the Members States concerned are now in full compliance with the rulings of the World Trade Organization (WTO) in the Airbus case.

In 2018 the WTO Appellate Body found that the Union and its Member States had not fully complied with the previous WTO rulings with regard to Repayable Launch Investment for the A350 and A380 programs. Hence, the WTO allowed the United States to take countermeasures against European exports worth up to 7.5 billion dollars. Airbus took action concerning the other challenged measures earlier and Frances and Spains agreement with the company address the last remaining measures condemned by the WTO.

The achievement removes any grounds for the United States to maintain its countermeasures on the Unions exports. However, if the United States opts to maintain its duties on European exports or decides to increase tariffs or apply them to new products, the Union will act to exercise its own sanction rights, based on the relevant WTO authorizations, as soon as the level of countermeasures is established by the WTO in the Boeing case.

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Aviation. The European Union and involved Member States take action to ensure full compliance in the WTO Airbus dispute - Lexology

LONDON - After five days of grueling and at times ill-tempered talks, European countries this week finally agreed on an $870 billion recovery package to help the weaker members of the European Union weather what's shaping up to be the most testing recession in the bloc's history.

There was relief when the negotiations concluded, and much talk in its immediate wake from EU bosses that the ill-natured Brussels summit had succeeded in strengthening the bloc and demonstrated that Europe is not too divided to handle the coronavirus pandemic and the economic repercussions.

But the shouting is not entirely over, and what was agreed to may cause more problems for a bloc that remains divided about what sort of club the EU is or wants to be, warn some analysts.

The package, which will see the EU for the first time collectively borrow large sums using the creditworthiness of the economically stronger members, like Germany, to lend and grant money to weaker ones, like Italy and Spain, still has to be approved by the European Parliament.

And midweek some EU lawmakers from the so-called frugal four countries Austria, the Netherlands, Denmark and Sweden, all of which are skeptical about the fund served notice that they intend to try to derail the package.

They are planning to oppose a series of new taxes agreed to Tuesday, including on digital services and on goods imported into the EU from countries with lower CO2 emission standards, to help pay for the recovery fund.

The leader of the center-right European People's Party, the largest party in the European Parliament, Germany's Manfred Weber, is also unhappy. He said Thursday that he was pleased the heads of government and state managed to reach agreement but added "I'm not happy about the deal."

Addressing the European Parliament on Thursday, European Commission President Ursula von der Leyen acknowledged the deal would be "a pill difficult to swallow," but she urged lawmakers not to waste time in ratifying the seven-year EU budget of $1.2 trillion as well as the $870 billion recovery package.

"Ursula, we for the moment are not ready to swallow the pill you referred to," warned Weber, who wants cuts in the overall budget. He says the parliament will want to make some major changes. If it does vote for amendments, that will mean the entire budget and recovery fund will head back to the EU heads of government and state for agreement or further negotiation, delaying disbursements to southern European states and adding more friction.

Other opponents in the European parliament say they will press their governments or national parliaments to hold referendums on the EU budget.

Derk Jan Eppink, a Dutch MEP, says the recovery package is a wealth redistribution plan and that the people in the Netherlands should be allowed to vote on it themselves. Others want the European Parliament to be empowered to monitor disbursements to ensure they're being well-spent.

Analysts say it is highly unlikely the parliament will squash the recovery fund a majority will in the end endorse it and the budget. But the harsh response from some in the European Parliament is adding to the picture of European disarray and further exposing a dangerous level of mistrust at a critical time between different arms of the EU and between member states themselves.

The Brussels summit negotiations have left European leaders bruised. The intensity of the disagreements over the recovery fund shocked several people. Even the patience of the normally calm German chancellor, Angela Merkel, appeared to be stretched to a breaking point at one point she yelled at her Austrian counterpart. France's leader, Emmanuel Macron, slammed his fists in frustration on a table. Hungarian leader Viktor Orban, a former anti-communist dissident, accused the Dutch leader, Mark Rutte, of aping the Soviets in his bid to overcome dissent.

Future disputes

The clashes augur badly for the inevitable disputes ahead over the actual working of the fund and disbursements, worry some analysts, including Lucas Guttenberg of the Jacques Delors Institute, a research group headquartered in Paris.

The leaders of the frugal four managed to get written into the deal a so-called brake that allows any member government to object to another's spending plans when using loans or grants from the recovery fund. That spells trouble, he says, and could lead to some nasty squabbles.

He also says there is considerable ambiguity about the brake mechanism, how it will be invoked and enforced, as well as other conditions attached to disbursements.

Under the deal there are restrictions on disbursements to countries deemed in breach of rule-of-law standards. Hungary and Poland have both clashed with Brussels on judicial reforms that the European Commission says are eroding the independence of judges. But while disbursements can be cut for breach of the standards, it is unclear how that will be done.

'Historic step'

Nonetheless, Guttenberg agrees with EU bosses that "the Recovery Instrument is nothing short of an historic step." He tweeted, "It will substantially contribute both politically and economically to a stronger recovery, in particular in countries like Italy," which is set to receive $242 billion from the fund in the form of loans and grants.

Others are not so sure the amount of the fund is sufficient to cope with the scale of the economic crisis caused by the coronavirus pandemic.

"The macroeconomic value of the EU's 750-billion-euro Recovery Fund lies somewhere between modest and trivial," says Ambrose Evans-Pritchard, the international business editor of Britain's Daily Telegraph. "Part of it is reshuffling money that would have been spent anyway. The rest is spread thin over many years."

None of the grants, he notes, will start being disbursed until next year, blunting their effect as COVID-19 disaster relief, and the fund will do little, he says, to reduce the growing economic inequality between member states, which is seeing richer states doling out huge state aid and subsidies to support their pandemic-struck businesses, giving them an even greater competitive edge over rivals in poorer countries.

And an uneven economic recovery across the bloc risks fueling populist anger and anti-EU sentiment in the countries that lose out.

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Will Europe's Recovery Fund Cause More Problems for the EU? - Voice of America

As the world fights the Covid-19 pandemic and gradually starts to prepare for dealing with its long-term impacts, governments and societies need to learn from this crisis and build a better future.

The main lesson learned is how the deep interdependency between our countries results in vulnerability to unanticipated external shocks. With the virus spreading uncontrollably from continent to continent, the governments that have been more successful are those who have come out pro-actively with clear and honest plans based on science to respond to the virus.

The UAE has been at the vanguard. From the very start, the Emirates has developed large-scale capacity to carry out mass testing and deliver medical care. It has introduced clear rules on social distancing that have helped reign in contagion. It has responded promptly to the economic crisis by announcing a huge economic stimulus package.

While the European Union was hit hard, we have delivered a powerful and coherent response, successfully flattening the curve. On July 21, under the German presidency of the Council or the EU, European leaders reached a historic, landmark deal to bring the continent out of the Covid-19 crisis. The agreement on a recovery package, combined with a seven-year budget totalling more than 1.8 trillion, makes the EU stronger and more united than ever.

The EU has turned the Covid-19 challenge into an opportunity. Our recovery plan prepares the future by investing into the green and digital transitions. We will build a fairer and more resilient society. Climate objectives figure prominently in the package, which earmarks 30 per cent of the budget for climate investments.

The virus is a large-scale human tragedy. Science tells us that this is just a warning compared to the existential risks for our civilisation associated with global warming. Evidence shows that new infectious disease outbreaks are increasingly triggered and spread by global warming, as well as ecosystem and biodiversity degradation.

A healthy natural environment is a prerequisite for resilience and prosperity. If the international community fails to bring increasing greenhouse gas emissions down and environmental destruction continues, we will face catastrophic consequences, including making large parts of our planet uninhabitable. It is happening now and will accelerate in the coming decades. Also, the growing number of extreme weather events will continue to destroy livelihoods, crops, homes and infrastructure. It will trigger massive wildfires and cause mass migration on an unprecedented scale.

Global warming is harder to tackle than the Covid-19 pandemic, and the risks are even greater. There is no vaccine against climate change and its devastating impacts. We have to flatten the emissions curve fast. This will only be possible if we take bold action. Therefore, we must use the economic rebound from Covid-19 to accelerate the transition to a safer, more resilient future. The good news is that we can do this!

The choices we make today will define our future. Over the next two years, governments around the world will seek to spend around 10tn. The massive investment needed to kick-start our economies must relieve the burden on our shoulders, not make it heavier. This is why recovery plans should be designed as a once-in-a-generation opportunity to build back better and invest in the green economy of the 21st century and not in the carbon economy of the past.

It is great that the UAE maintains despite the economic challenges brought by the pandemic its plans for diversification and investing in renewable energy, thus directing the country towards a sustainable future. This is leadership.

Global warming is harder to tackle than the Covid-19 pandemic, and the risks are even greater

The EU will engage with the UAE and the world on ways to direct investment towards environmentally sustainable economic activities. We will share expertise, finance common projects, explain our regulations and build true and deep partnerships.

It is not idealistic to invest everything into winning this collective challenge. It is about allowing our children to enjoy a good life on a peaceful planet. It is about staying true to our values, listening to science, ensuring our prosperity, and building a better, cleaner, healthier and safer future. There is no good alternative to green recovery.

Global solidarity, open and fair trade, rules-based order and multilateralism are crucial elements for the green recovery. We need to do this together. The European Union invites our UAE friends and all our international partners to put in place clear and robust low-carbon policies and green recovery strategies. This will give our societies a sense of direction and purpose, and guide investors, businesses, workers and consumers towards the sustainability that the next generation demands from us. Lets advance together in this direction.

Andrea Matteo Fontana is the European Union Ambassador to the UAE

Peter Fischer is the German Ambassador to the UAE

Updated: July 29, 2020 08:49 AM

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The EU's green recovery is turning challenges into opportunities - The National

A petition has been launched calling for the European Union flag to be taken down from outside Scottish Government buildings following Brexit.

The petition lodged on the Scottish Government site calls for the Scottish peoples view to be tested on the issue post-Brexit.

It comes after a move to stop flying the EU flag at the Scottish Parliament was shelved following a backlash from MSPs after ministers said that the flag should be flown in recognition of the contribution of EU national in Scotland.

READ MORE:EU negotiator warns post-Brexit trade deal unlikely

The Scotsman reports that Holyroods petition committee is now considering the issue after the petition was lodged by Philip Smith this month.

The petition reads: This petition is necessary to ensure the Scottish Government stops flying the flag of an organisation that the United Kingdom is no longer a member of, he states.

READ MORE:Iain Macwhirter: It's clear BoJo still doesnt get Scots (and its not the economy, stupid)

Although we have left the European Union, Scotland is still a member of the Commonwealth.

The petition should be allowed to test the Scottish peoples view on whether to have the Commonwealth flag flying in place of the European at Scottish Government buildings.

An example of where this has already taken place is Gibraltar which is now proudly flying the Commonwealth flag.

Responding to the petition, ministers told The Scotsman that the EU flag is flownto provide a concrete and visible expression of the value that we place on the contribution that EU nationals have made to our country.

The UK ceased to be a member of the European Union at the end of January, with talks continuing about the relationship after Brexit.The UKs chief negotiator, David Frost, said talks have not yet reached any agreement following intensified discussions between the two sides.

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Petition launched calling for European Union flag to be removed from outside Scottish Government buildings - HeraldScotland

Written by Udit Misra, Edited by Explained Desk | New Delhi | Updated: July 26, 2020 8:36:35 am Dutch Prime Minister Mark Rutte (center left) elbow-bumps with European Council President Charles Michel (center right) as German Chancellor Angela Merkel walks by during a round table meeting at an EU summit in Brussels, Tuesday, July 21. (Photo: AP)

On July 21, after five days of hectic, and sometimes bad-tempered, discussions, the 27-member European Union reached a historic agreement to counter the debilitating effects of coronavirus on the regions economies.

The EUs GDP is set to contract by close to 8 per cent in 2020 thanks to the Covid-induced disruption, even as the Covid death toll has crossed 130,000. This has been harrowing for investors, especially as many countries, such as Italy, Spain and Portugal, were in poor financial health going into the crisis.

There are three chief elements of the agreement. One, a Euro 1.1 trillion budget for the EU over the next seven years. Two, Euro 360 billion in low-interest loans for countries most hit by Covid-19. Three, Euro 390 billion in grants to the worst affected economies.

What is so special?

The recovery package stands out for a variety of reasons.

One is, of course, its size roughly $2 trillion or Rs 150 lakh crore or 75 per cent of Indias annual GDP.

Secondly, instead of individual countries raising funds, this time around, the EU as a whole will borrow money from the markets a total of Euro 750 billion (for grants and loans). This is a radical departure economically as well as politically from the past.

Given the size and scope (EU assuming debt on behalf of member states) of this deal for a new generation EU, many observers have called it Hamiltonian. The reference is to Alexander Hamilton, the first US Treasury secretary (his face is on the $10 bill), who had the federal government absorb the debts incurred by all the states during the Revolution.

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Thirdly, the EU will be able to impose taxes in the region to partially pay for the fund. This, along with the Budget details, will entail an unprecedented level of fiscal coordination among the member states for the next seven years.

Fourthly, almost a third of the overall package Euro 500 billion has been earmarked towards countering climate change. This includes expenditure towards developing clean energy, its use via emissions-free cars and other such technologies, as well as promoting energy efficiency.

What are the implications?

In terms of the EUs GDP, this agreements size is roughly 5 per cent. Given that the economy is likely to contract by more, this deal is just the first step in terms of resuscitating the ailing economies of the region. Not to mention the fact that this deal still requires member states to ratify it.

Even after ratification, implementation will be another kettle of fish, because many countries such as Hungary and Poland may resist the reforms agenda that many of these grants and cheap loans might entail.

However, the political significance of the deal cannot be overemphasised.

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The Global Financial Crisis of 2008-09 and the efforts undertaken in the EU for economic recover exacerbated differences between better-off EU economies such as Germany and the worse-off ones such as Greece. Weaker economies were asked to cut back expenditures and raise taxes to meet the onerous austerity requirements of paying back loans. This resulted in massive political push back across many countries.

Over the past decade, euro-scepticism has led to several populist leaders both on the extreme Right and the extreme Left in EU member states gaining ground. The UKs shock decision to leave the EU in 2016 was part of this very trend.

More than saving the economy of the EU, this deal saves the political idea that is the EU. Thats because it has been concluded despite significant differences among a whole host of countries.

To begin with, it has been made possible by a Franco-German understanding not seen for at least a decade. While French President Emmanuel Macron has been pushing for boosting fiscal firepower to undermine the rising tide of populism in all EU countries German Chancellor Angela Merkel has been opposed to measures that would be seen as handouts.

Germany is not the only one. Along with the frugal four (Austria, Denmark, the Netherlands and Sweden), Germany has been opposed to massive borrowings that would have the taxpayers paying back for decades. To be sure, under the current arrangement, the borrowings would be done by 2023 and paid back by 2058.

On the other hand are economies such as Italy and Spain, which are most severely hit, urging for a less onerous recovery package.

This deal is historic because it allows albeit for just this once a debt mutualisation (collective debt) that austere member states like Germany have abhorred in the past.

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How is this different from the EU response to the 2008-09 crisis?

In the aftermath of the 2008 crisis, several EU countries found that, thanks to high levels of national debt and their abysmal sovereign rating, they could not raise loans from the markets at affordable interest rates.

So, the EU had created the European Financial Stability Facility (EFSF), which essentially worked as an intermediary between the investors (who got more security for their investment) and the heavily-indebted EU countries (who got loans at lower rates).

The EFSF and the European Stability Mechanism, which succeeded it in 2013, together disbursed Euro 255 billion in loans.

The current structure is significantly different in that it allocates nearly Euro 400 billion in grants, apart from Euro 360 billion in loans. Moreover, the loans do not come stapled with demands of fiscal austerity they are likely to ask, however, for certain basic rule of law to be adhered to.

How does this compare with what India is doing?

The key deficiency in Indias Covid relief package (roughly 10% of GDP) is the inadequate fiscal (or government) spending (just 1% of GDP). For spending more, Indian government would have to borrow more. However, without substantially higher spending, the economy will likely struggle for longer.

The key component in the EU package is the Euro 390 billion of grants. Cheap loans and credit guarantees are useful but in a falling economy and with acute economic stress in the MSME sector, grants and wage subsidies might be more useful.

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EU recovery deal: What is new, and what it will mean for member nations - The Indian Express