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The European Union’s efforts to tackle the phenomenon of ransomware attacks (Part I) – Lexology

1. Introduction

As the transition to a digital society is accelerating in recent years, especially after the coronavirus outbreak, the expectations of the European Citizens for a safer digital environment are growing. There is then an urgent need to combat cybercrime. In two different articles we will address, in particular, the surging phenomenon of the ransomware attacks and how this issue is being tackled within the European Union. In this contribution we will introduce the relevant phenomenon (Chapter 2). In addition, it will be assessed what are the legislative and policy frameworks in place in the European Union for facing this issue (Chapter 3).

2. The ransomware attacks

Ransomware can be described as a type of malware (like viruses, trojans, etc.) that infect the computer systems of users and manipulates the infected system in a way, that the victim cannot (partially or fully) use it and the data stored on it. The victim usually shortly after receives a blackmail note by pop-up, pressing the victim to pay a ransom (hence the name) to regain full access to system and files 1.

The criminality resorts to different types of tactics to achieve their finalities. Ransomware attacks have the primary goal of making monetary gains by way of unlawful means. Ransomware typically encrypts target files and displays notifications, requesting payment before the data can be unlocked. Ransomware demands are usually in the form of virtual currency, such as bitcoin. This because these types of payments are difficult to be tracked2.

Ransomware attacks have certainly a global impact.

A report issued on 2021 has revealed that the frequency and the complexity of ransomware attacks increased (by more than 150% in 2020 such that ransomware can now be defined as one of the greatest threats that organizations face today regardless of the sector to which they belong 3.

The above findings speak volumes on how this issue is serious and of concern for all the world. Consequently, it does not come as a surprise that it has been clearly recognized nowadays that ransomware is a prime item in agendas for meetings on strategy among global leaders 4.

In the fight against ransomware, several challenges need to be addressed. One of the main issues results in the lack of coordination and collaboration between the agencies and the authorities all over the world. There is indeed a lack of legislation in many countries that clearly criminalises ransomware attacks5.

This problem holds true also for the European Union given that: (i) it is made of different Member States which, in some cases, have different internal law frameworks when it comes to cybersecurity and modalities to tackle the ransomware problem; (ii) the issue must be addressed also with reference to the States which are external to the European Union (in which the ransomware phenomenon flourishes).

3. How the European Union is dealing with the issue

Considering all the above, in the following chapter we will look at how the European Union is trying to face the ransomware attacks.

3.1. The European Union legislative interventions

The first step towards the creation and development of an EU cybersecurity ecosystem was the adoption of a cybersecurity strategy in 20136. This strategy identified the achievement of cyber-resilience and the development of industrial and technological resources for cybersecurity as its key objectives. As part of this strategy, the European Commission proposed the EU Network and Information Security directive 2016/1148 (NIS Directive)7.

In particular, the NIS Directive8 sets out that the EU Member States must have certain national cybersecurity capabilities and that there shall be a cooperation in the exchange of information amongst the same EU countries. Moreover, according to the NIS Directive, the EU Member States shall promote a culture of security across sectors very relevant for the EU and which rely on ICTs such as energy, transport, water, banking, financial market infrastructures, healthcare and digital infrastructure 9.

It is interesting to note that the NIS Directive limited to provide for measures by way of which the EU States shall increase their attention when it comes to cyber-attacks. On the other hand, it did not envisage a common and specific framework (for example in terms of sanctions to be applied) for tackling cyber-crimes (such as the ransomware attacks).

That is probably why in June 2017, the EU tried to reinforce its global response to the cyber-attacks (including ransomware) by establishing a Framework for a Joint EU Diplomatic Response to Malicious Cyber Activities (the so called Cyber Diplomacy Toolbox)10.

This framework basically allows the EU and its Member States (by way of an initiative to be taken by the Council) to use all necessary measures ... to prevent, discourage, deter and respond to malicious cyber activities [and thus also to the ransomware attacks] targeting the integrity and security of the EU and its member states .... In particular, the Cyber Diplomacy Toolbox gives the possibility to the Council to impose ... sanctions on persons or entities that are responsible for cyber-attacks or attempted cyber-attacks, who provide financial, technical or material support for such attacks or who are involved in other ways ... 11.

Finally, also in the attempt to reinforce the attack to the malicious cyber activities (such as the ransomware) a revised version of the NIS Directive (to be named NIS2 Directive) has been proposed by the European Commission in 2020. In particular12:

The proposed NIS2 Directive though is now still under discussion13.

3.2. The European Union policy interventions

The European Union has then dealt with the issue of the ransomware attacks also pursuing specific policies of international cooperation on this topic.

In particular, the European Union has soon realized that this problem was global and that it was thus necessary to tackle it also involving the other stakeholders.

That is why the European Union signed for example a joint EU-U.S. statement for working together in the fight against ransomware through law enforcement action, raising public awareness on how to protect networks as well as the risk of paying the criminals responsible, and to encourage those states that turn a blind eye to this crime to arrest and extradite or effectively prosecute criminals on their territory ...14.

Moreover, the EU takes part on a regular basis in international summits (together with important partners such as U.S.A., India and Australia) where it is discussed how to counter this plague on a global scale15.

4. Conclusions

As we have seen above, the current framework set by the European Union to tackle the ransomware attacks is rather complex and worthy to be carefully assessed.

In a subsequent article to be published soon on Lexology, reference will then be made to the main actors in charge of dealing with such phenomenon in Europe and to the strengths and weaknesses of the current EU system of defence against this invasive form of cyber-criminality.

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The European Union's efforts to tackle the phenomenon of ransomware attacks (Part I) - Lexology

Exodus of Ukrainian workers hits Europe’s emerging economies – Reuters

GORZOW WIELKOPOLSKI, Poland, July 25 (Reuters) - Construction sites, factory assembly lines and warehouses across central Europe are scrambling to fill vacancies after tens of thousands of Ukrainian men left their blue-collar jobs to return home after Russia invaded their country.

Ukrainian workers had flocked to central Europe in the past decade - drawn by higher wages and aided by an easing of visa requirements - filling jobs that weren't highly paid enough for local workers in construction, the automotive sector, and heavy industry.

Many of these workers have returned home to help the war effort since Russia invaded on February 24, abruptly worsening labour shortages in some of Europe's most industrialized economies.

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Reuters spoke to 14 company executives, recruiters, industry bodies and economists in Poland and the Czech Republic who said the departure of Ukrainian workers was leading to rising costs and delays in manufacturing orders and construction work.

Before the Russian invasion, Ukrainians were the largest group of foreign workers in central Europe. Poland and the Czech Republic hosted Ukrainian workforces of around 600,000 and more than 200,000 respectively, according to industry trade groups.

The Employers of Poland trade group, which represents 19,000 companies, estimates that around 150,000 Ukrainian workers, mainly men, have left Poland since the start of the war.

Wieslaw Nowak, chief executive of Polish tram and railway line builder ZUE Group, said one of its sub-contractors recently failed to complete work related to laying tracks because nearly all of its 30 Ukrainian workers had left.

"Many companies are looking for employees on a massive scale at various construction sites due to large outflows," he told Reuters.

"It certainly affects the cost and pace of work because if someone loses several dozen employees at the same time rebuilding a team takes far more than a matter of a few days."

While the European Central Bank said in June an influx of Ukrainian refugees was expected to ease a euro zone labour shortage, the opposite seems to be happening in Europe's industrialised economies outside the currency bloc.

Hundreds of thousands of Ukrainian refugees, mainly women and children, who arrived in the region are not an easy fit for many of the vacant positions. Often the jobs are in physically demanding sectors such as construction, manufacturing or foundries where legal limits apply on how much female workers are allowed to lift.

From training female refugees to operate forklift trucks to recruiting new workers in Asia, companies are scrambling to find innovative ways to plug the gaps in their workforces, the company executives told Reuters.

But for many firms struggling to recover from the economic impact of the COVID pandemic, and now facing sharp rises in energy costs and inflation following the war, the sudden scarcity of labour poses a severe challenge.

"The loss of Ukrainian workers has deepened the problems companies are facing," Radek Spicar, vice president of the Czech Federation of Industry, told Reuters. "Companies say they can't cover all the demand from business partners: they deliver with delays and pay penalties."

With industrial production contributing to 30% of GDP, the Czech Republic ranks as the EU's most industrialised nation. Poland follows closely behind at 25%.

Before the Russian invasion, Germany-based recruiter Hofmann Personal had more than 1,000 Ukrainian candidates due to arrive in the Czech Republic between March and June, mostly for jobs in the automotive, logistics and manufacturing sectors.

The companies expecting those workers are now struggling to fill those openings, said Gabriela Hrbackova, Hofmann Personal's managing director in the Czech Republic. The country has the lowest unemployment rate in the European Union of just 3.1%.

"If this cannot be resolved quickly and opportunities for recruiting foreign candidates are not strengthened, it will have major implications, especially for manufacturing companies," Hrbackova told Reuters.

"Companies lack hundreds of employees for positions of production operators, qualified manufacturing positions such as welders, (machine) operators, metal workers and forklift drivers."

Executives and trade groups said the impact of Ukrainian workers' departures is being felt particularly hard in emerging Europe because the region is less automated than more developed European Union economies, such as regional heavyweight Germany.

For Scanfil (SCANFL.HE) -- a Finnish company specialised in electronics manufacturing, assembly and production outsourcing -- the swift loss of workers from the labour market in Poland, where it has operations, reinforced plans to boost automation.

"Automation is possible in some positions but not everywhere," said Magdalena Szweda, human resources manager of Scanfil Poland in Myslowice. "We still have a need in many workplaces for human hands so it doesn't resolve the problem."

The chief economist at BNP Paribas Bank Polska, Michal Dybula, said it was clear the loss of Ukrainian workers would harm the Polish economy - the sixth-largest in the European Union - at least in the short term, based on both economic data and conversations with local businesses.

However, it was too soon to quantify the scale of the impact, he said.

Petr Skocek, director of German automotive supplier Brose Group's facility in the Czech city Ostrava, near the Polish border, said the past inflow of Ukrainian workers had been a boon to businesses because of their qualifications, work ethic and similar culture.

"This channel has now stopped," he said.

The staffing issue comes on top of supply chain problems for manufacturers, who face soaring costs for energy and materials due to the war and lingering disruptions to supply chains from the pandemic.

The producer price index - a measure of inflation for businesses - hit nearly 25.6% in June in Poland and 28.5% in June in the Czech Republic.

Some companies are bumping up salary offers to attract replacement workers, seeking to lure local workers and stave off competing firms for the limited number of Ukrainians.

"We're searching for Ukrainian workers on the market, offering more money," said Maciej Jeczmyk, chief executive of Poland-based manufacturer InBet, which makes prefabricated materials for construction. "We are adapting almost every week."

To cope with shortages, Polish staffing firm Gremi Personal said their client companies had shifted men to more physically demanding jobs and hired Ukrainian refugee women to replace them.

"So, for example, a man would move from the production line to the logistics department where they have to carry heavy things that have a legal limit for women," the firm's deputy director Damian Guzman told Reuters.

The shortage has also forced companies to rethink how they work and look further afield to countries like Mongolia and the Philippines where language, travel and visa issues makes it difficult to quickly fill vacancies.

"The problem is that the number of workers brought from these other countries is not high enough to fill vacancies," said Marcos Segador Arrebola, the chief executive of recruiter GI Group Poland.

He said the number of Ukrainian workers in emerging Europe's largest economy increased 38-fold over the past 13 years.

Companies such as construction firm Inpro in Poland are also turning to pre-fabricated elements to keep construction projects on time. Others are extending working hours and training women for positions traditionally occupied by men, such as operating fork lifts.

Wojciech Ratajczyk, chief executive of staffing firm Trenkwalder Poland, said Poland had open vacancies for 50,000 logistics workers, most of them forklift drivers.

He said that more than 600 women answered an advert sent to 2,000 refugees about learning how to operate forklifts. A few dozen recently started a 4-week course organised in conjunction with companies.

One participant is Olha Voroviy, a former sales manager who found work in automotive supplier Faurecia's Polish warehouse after fleeing her home in Ukraine.

"It is a hard work ... but I need to work and make money and there was no other job in Gorzow," Voroviy told Reuters during a break in a certification course that will pave the way to a higher paying job in the warehouse.

"In Ukraine, I was working with my mind and here in Poland Im working physically."

(This story corrects to make clear open vacancies are in Poland not company in comments from Trenkwalder Poland in paragraph 37)

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Writing by Michael Kahn, Reporting by Michael Kahn in Prague and Anna Koper in Warsaw, Additional reporting by Andrey Sychev, Hedy Beloucif, Malgorzata Wojtunik in Gdansk; Editing by Alison Williams

Our Standards: The Thomson Reuters Trust Principles.

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Exodus of Ukrainian workers hits Europe's emerging economies - Reuters

Primary election coming Aug. 2 | – The Salem News

The 2020 Primary Election saw a 42% voter turnout in Dent County. However, the Presidential office was on the ballot that year, which historically guarantees higher voter turnout. A better expectation would be to look at the 2018 Primary Election which saw a slightly lower 40.65% voter turnout.

Dent County Clerk Angie Curley told The Salem News Monday morning that she expects voter turnout to track similarly to past years.

Curley also wanted to remind voters that this since this is a primary election, voters will select the ballot based on a party Republican, Democrat, Constitution, or Libertarian.

The polls will be open Aug. 2 from 6 a.m. to 7 p.m.

In-person absentee voting continues at the Dent County courthouse through Monday at 5 p.m.

U.S. Senate Race

This year is unusual since there is no incumbent running for Missouris U.S. Senate seatsomething that has not happened in Missouri since current senator, Roy Blunt, won the 2010 election after former senator Kit Bond decided to retire.

Blunt announced his retirement in March, leaving the office to one of the 34 candidates in the runningthe largest number of candidates vying for the seat since that same 2010 Primary Election when there were 37 candidates on the ballot.

Of the 34 candidates this August there are 21 Republican Party, 11 Democratic Party, one Libertarian Party and one Constitution Party. See the sample ballot on page 5A for details.

U.S. House of Representative Race (District 8)

Republican incumbent Jason Smith faces off against republican Jacob Turner in the primary. Randy McCallian is the only Democratic candidate running for the seat. Smith has held the office since 2013.

Jim Higgins is the only Libertarian candidate running for the seat.

Either Smith or Turner will be up against McCallian and Higgins in November.

Missouri Senate (District 16)

Uniquely, due to redistricting this past legislative session, there are two republican candidates who are both serving in Jefferson City at present: Suzie Pollock and Justin Dan Brown.

Pollock currently serves as the State Representative for District 123; however, redistricting drew Pollock out of her district and into District 16. Brown has been State Senator for Dent County voters since elected in 2018.

Tara Anura is the only Democratic candidate running for the seat.

Missouri House of Representatives (District 120)

Republican Matt Williams faces off against republican incumbent Ron Copeland who was elected in 2020. There are no Democratic Party or third party candidates running for the seat.

Dent County Presiding Commissioner

The most notable local office during the August Primary Election is that of presiding commissioner. Republican Craig Smith and republican Travis Fulton face off against republican incumbent Darrell Skiles. There are no Democratic Party or third party candidates running for the position.

Other important offices on the ballot

There are several other important local and statewide positions on the ballot including county circuit clerk Republican candidates Lisa Blackwell and Kristi (Morton) Craig.

See sample ballot below.

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Primary election coming Aug. 2 | - The Salem News

Wedged Away In The Balkans, Would-Be Microstate ‘Liberland’ Keeps Up Its Fight For Recognition – Radio Free Europe / Radio Liberty

Nation-building is arduous work. Microstate-building, maybe less so.

But don't tell that to the libertarian architect of a seven-year campaign to further subdivide the tempestuous Balkans by turning a tiny, neglected sliver of woodland on the Danube into the Free Republic of Liberland.

"I realized from the beginning that building a country is not a summer job," says 38-year-old Czech Vit Jedlicka.

He and his fellow Liberlanders have recently recommitted to their U.S.-based lobbying effort, seeking to get their republic recognized internationally so they can make it a free-trade zone with the status of a state.

A July 9 filing with the U.S. Justice Department confirms Liberland's ongoing cooperation with a New York-based lobbyist and "global political and business ambassador" pursuant to the U.S. Foreign Agents Registration Act, or FARA.

In a region where relations between nations are frequently tense, including a recent diplomatic dustup between Serbia and Croatia over war memorials, Liberland's neighbors appear to have gotten used to the idea.

Serbia regards the project as a "frivolous act" but no threat so long as it stays on the western bank of the Danube, which marks its border with Croatia.

"Our ties with Serbia were very friendly from the beginning," Jedlicka, who lives in the Czech capital, Prague, told RFE/RL's Balkan Service recently.

Liberland's "closest partner" is the Vojvodina provincial government in northernmost Serbia, he added.

We believe that in the near future [Croatia] will recognize the great economic benefit that will be realized by [the] creation of Liberland."

Croatia was less accommodating initially, routinely blocking access and even detaining visitors, including Jedlicka, for alleged border violations.

But Jedlicka said, seemingly without irony, that they've since built "strong ties" to the Croatian secret service since some Liberland citizens "are in contact with them frequently."

"It seems their interest in Liberland grows over time," he said of the Croatian authorities.

Call It What You Like

Jedlicka, chairman of a Czech libertarian NGO, and his wife, Jana Markovicova, a former licensed massage therapist and self-described "first lady at Liberland," proclaimed the aspiring state's existence in April 2015.

They described it as 7 square kilometers of no-man's-land that had gone unclaimed by either Croatia or Serbia since Yugoslavia fell apart in 1991.

It has a flag, a coat of arms showing a tree, the sun, and a bird soaring over the river, and -- in keeping with Jedlicka's aversion to government interference -- hopes to base its economy on a cryptocurrency, the "merit."

It has already been active in virtual and crypto projects, including a futuristic-looking Liberland Metaverse that is admittedly a "work in progress."

Its website claims upward of 500,000 citizenship requests, although RFE/RL could not confirm that figure. It also claims 1,000 "citizens" and 10 "diaspora villages."

And it says it has "diplomatic relations" with six UN member states, including Haiti, and purports to have representations in 74 spots around the world, including places like Switzerland, Venezuela, and Afghanistan.

But it's also missing one of the 20th century's most widely cited touchstones of independence, along with defined territory, a government, and a capacity to deal with other states: a permanent population.

Liberland is uninhabited, and no country has ever formally recognized it.

Are Microstates A 'Thing'?

There are currently seven microstates across Europe, of various renown, most of them wealthy and established centuries ago.

Four of them are monarchies and another is the domain of the Roman Catholic Church, so their histories are not necessarily steeped in democracy. They are: Vatican City, Andorra, Liechtenstein, Monaco, Malta, San Marino, and Sovereign Order of St. John.

The main thing that sets microstates apart from larger states is their size, or lack thereof. But in his 2012 book The Microstates Of Europe, P. Christiaan Klieger describes them broadly as "designer nations" marked by "tenaciousness of national aspirations and ethnic solidarity."

Liberland, a "new libertarian country," seems like more of the former.

"We aim to develop a critical business hub and a free port on the Danube River," Michal Ptacnik, who was recently named Liberland's "minister of justice," told an audience at a libertarian-minded conference in Prague last year.

He said the governing principle should be "a mix of Swiss democracy and corporate governance." The focus is "to be a free-trade zone where individual liberty governs supreme," he said, adding, "We seek to build the freest country on Earth, and the most prosperous one."

Slow Progress

Liberland describes U.S.-based lobbyist Steven Melnik as its "ambassador at-large." An immigrant to the United States, Melnik appears to be trying to nudge U.S. and other influentials toward recognition of an eighth European microstate.

In the Justice Department document, Melnik said he continues to represent the Free Republic of Liberland under an agreement that "does not contemplate remuneration for services."

Melnik, who has represented Jedlicka's group since 2019, said that in the previous six-month reporting period he was "not required to perform any services" and that "all my actions have been voluntary and not for payment."

For Jedlicka, the end goal still seems a distant dream. But he remains an optimist.

He said Croatia now "recognizes us as a serious national movement and suggested that Zagreb was comfortable with not claiming the 7-kilometer patch he's staked out.

"We believe that in the near future they will recognize the great economic benefit that will be realized by [the] creation of Liberland," Jedlicka said.

The benefits of eventual sovereignty, for a founding father and Euroskeptic like him, and for all five members of Liberland's "government," might seem obvious. He said their current goals include creating "more benefits" of Liberlander "citizenship."

"We aim to be a shining example of how a country's government can be organized in the new millennia using strong ideological principles, as well as the latest decentralized blockchain technologies for governance," Jedlicka said.

And he doesn't seem to be in any particular rush to force his model on anyone.

"It is nice to have formal recognition by other countries," Jedlicka told RFE/RL, "but we are also happy if we are informal friends and if they recognize our motto: Live and let live."

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Wedged Away In The Balkans, Would-Be Microstate 'Liberland' Keeps Up Its Fight For Recognition - Radio Free Europe / Radio Liberty

I Will Never Leave You, The Gift win awards at Anthem Libertarian Film Festival – Tehran Times

TEHRAN Iranian short movies I Will Never Leave You and The Gift have won awards at the Anthem Libertarian Film Festival in Las Vegas.

Directed by Alireza Biglari based on a true story, I Will Never Leave You was selected as best international short narrative.

The film shows that Kabul has fallen and the Taliban have taken control of the city, killing ordinary people, journalists, artists and women. A journalist has filmed one of the executions by the Taliban, and now he wants to send the truth to all the news agencies in the West. But the Taliban have found out about him and are looking for him to destroy his camera and kill him.

The Gift, a science fiction and horror film directed by Farbod Ardebili, was given the best short drama award.

The film explores the darker side of human nature and how catastrophic events can occur when a climate of fear is cultivated.

It is set in the near future after alien ships appear in the skies above Earths major cities, throwing the world into chaos. But instead of destroying the planet or invading, the aliens do nothing. They simply hover in place for years; silent, inscrutable. Unable to determine the aliens motivations or why they refuse to make contact, the media feeds the planet a steady diet of fear, uncertainty and doubt. When the aliens true intentions are finally revealed, an unspeakable tragedy unfolds.

Winners were announced at the Mirage Hotel in Las Vegas on July 16.

The Anthem Grand Prize was given to the documentary Created Equal: Clarence Thomas in His Own Words directed by Michael Pack.

In this film, Justice Clarence Thomas recounts his extraordinary life story from living in poverty as a child to serving on the Supreme Court.

It also won the Anthem Vault Prize for best original score and the audience choice award in the feature film category.

Photo: A scene from I Will Never Leave You directed by Alireza Biglari.

MMS/YAW

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I Will Never Leave You, The Gift win awards at Anthem Libertarian Film Festival - Tehran Times