Investment firms are expected to take measures to limit the number of settlement fails and to – at least – set up arrangements with their professional clients to ensure prompt communication of the necessary settlement information.

ESMA, following a public consultation, has drafted final guidelines which set out how investment firms should ensure the requirements set out in Article 6(2) and Article 2 of the RTS on Settlement Discipline are complied with.

In particular, investment firms should agree with their professional clients on the communication procedures and messaging protocols to be used between them, in order for the necessary settlement information to be timely provided to the investment firm.

Subject to a written contractual agreement between them, the guidelines also clarify the degree of flexibility that is left to the parties to organise their communication.

Background

The requirement laid down in Article 6(2) of CSDR and further specified in Article 2 of RTS on Settlement Discipline is focused on the preparation of the settlement process in order to limit the number of settlement fails: investment firms should ensure that they have all the necessary settlement details as much as possible on the business day on which the transaction takes place. To achieve this, investment firms that do not already have the necessary settlement information should communicate with their clients in order to obtain the respective information, which should include standardised data useful for the settlement process.

Next steps

The guidelines will be translated into the official languages of the European Union and published on the ESMA website. They should start applying on the date of entry into force of the RTS on Settlement Discipline.

Today, the European Commission released the second edition of its Cultural and Creative Cities Monitor, a tool designed to benchmark and boost the creative and cultural potential of European cities, which is vital to driving economic growth and social cohesion. After the success of the first edition in 2017, the 2019 release presents an updated portrait of Europe’s cultural and creative richness in an extended sample of 190 cities in 30 countries, including Norway and Switzerland. The Monitor was created by the Joint Research Centre, the Commission’s science and knowledge service, and is accompanied by a revamped online tool which enables cities to add their own data for more in-depth coverage and benchmarking. 

Tibor Navracsics, Commissioner for Education, Culture, Youth, Sport, and responsible for the Joint Research Centre said: “The first edition of the Cultural and Creative City Monitor proved to be a success, enabling cities across Europe to boost development by better harnessing their cultural assets. I am confident that the second, expanded edition will be equally useful for city authorities, the cultural and creative sectors, and citizens themselves. The Monitor is an excellent example of how the Joint Research Centre can empower policy-makers and help improve citizens’ quality of life through concrete, evidence-based tools.” 

Key findings of the second edition include:

·         Paris (France), Copenhagen (Denmark), Florence (Italy) and Lund (Sweden) rank top in their respective population groups, with Lund being a ‘new entry’ among the top cities compared to the 2017 edition.

·         Jobs in the cultural and creative sectors have been growing particularly in cities in the North and East of Europe, with an average yearly increase of around 12% in Budapest (Hungary), Tallinn (Estonia), Vilnius (Lithuania), Krakow and Wroclaw (Poland) and Tartu (Estonia).

·         Macro-regional performance shows that Northern Europe does best. Western Europe leads on ‘Cultural Vibrancy’, very closely followed by both Northern and Southern Europe. Western Europe is also the top performer on ‘Creative Economy’, with northern Europe coming close behind. The best job creation dynamics are found, on average, in Northern and Eastern European cities.

·         In the analysed city-sample, cultural venues are generally a 30-minute walk away (or just 5 minutes by bicycle) from where European citizens live and are highly accessible by public transportation.

·         Future EU Cohesion Policy funds could further support socio-economic convergence and territorial cohesion by focusing on creative jobs and innovation, transport connections and governance – the areas where the biggest gaps remain.

·         Leading cultural and creative cities are more prosperous: there is a positive and significant association between the Cultural and Creative Cities Index scores and the cities’ income levels.

The first edition of the Cultural and Creative Cities Monitor has inspired local governments across Europe. For instance, Madrid (Spain) used evidence included in the Monitor to understand which cultural and creative assets, such as monuments, museums, cinemas, theatres and art galleries, the Spanish capital should focus its branding strategy on to improve its international ranking. As a result, Madrid published a new leaflet “Madrid – Facts and Figures 2018” promoting the city’s rich cultural venues. The Monitor also helped Győr (Hungary) analyse future investment needs and provided evidence to support the city’s decision to adopt a 2019-2028 cultural and creative economy strategy which identifies key measures to be implemented such as the creation of creative spaces for artists and a design incubation centre. Umeå (Sweden) used the tool to raise awareness among local stakeholders of the role cultural investments have to play in fostering sustainable growth. 

Background

Launched in July 2017, the Cultural and Creative Cities Monitor uses quantitative and qualitative information to measure cities’ cultural and creative potential. The Monitor’s quantitative information is captured in 29 individual indicators relevant to nine policy dimensions, which reflect three major facets of a city’s cultural and socio-economic vitality:

·         “Cultural Vibrancy” measures a city’s cultural ‘pulse’ in terms of cultural infrastructure and participation in culture.

·         “Creative Economy” captures the extent to which the cultural and creative sectors contribute to a city’s economy in terms of employment and innovation.

·         “Enabling Environment” identifies the tangible and intangible assets that help cities attract creative talent and stimulate cultural engagement.

New features of the 2019 edition include:

·         22 European cities from 14 Member States have been added, taking the total to 190;

·         New sources of web data (OpenStreetMap) have been used to better grasp Europe’s cultural vibrancy in a more dynamic way;

·         Novel findings from the spatial analysis of cultural venues help to put the social inclusion perspective at the core of the research alongside economic wealth;

The Monitor supports EU policy on culture: it was a basis for the economic impact assessment underpinning the 2018 ‘New European Agenda for Culture’, and is one of the actions included in the ‘European Framework for Action on Cultural Heritage’ to help ensure that the European Year of Cultural Heritage 2018 has a lasting impact.

The Monitor is expected to be updated every two years. 

For more information

Cultural and Creative Cities Monitor website (including full report, online interactive tool, factsheets and infographics)

Memo

Today, the participants of the 5th EU Internet Forum, hosted by Commissioners Avramopoulos and King, have committed to an EU Crisis Protocol – a rapid response to contain the viral spread of terrorist and violent extremist content online. The Commission, Member States and online service providers, including Facebook, Twitter, Google, Microsoft, Dropbox, JustPaste.it and Snap have committed to working together on a voluntary basis within the framework set out by the Crisis Protocol, while ensuring strong data protection and fundamental rights safeguards. The EU Internet Forum also discussed the overall progress made in ensuring the removal of terrorist content online since its last meeting in December 2018 as well as how to strengthen cooperation on other challenges, such as child sexual exploitation online.

Commissioner for Migration, Home Affairs and Citizenship Dimitris Avramopoulos said: “Since I launched the EU Internet Forum 4 years ago, it has gone from strength to strength, offering Member States and online platforms an effective framework to work together to tackle terrorist content online. We have managed to build a strong relationship of trust and mutual understanding with the internet platforms. I am pleased with the progress we are making and the remarkable results we have achieved. Today, we are taking this cooperation another step further with an EU Crisis Protocol. With this, we will be ready to act quickly, effectively and in a more coordinated way to stop the spread of terrorist content.”   

Commissioner for the Security Union Julian King added: “The events in New Zealand earlier this year were a stark reminder that terrorist content spreads online at a tremendous speed. While our response might be quick, it isn’t quick enough. The Protocol is an EU response to contain the havoc created by such events – in a coordinated way.”

In the aftermath of the terror attack in Christchurch, New Zealand, government leaders and online platforms agreed on the Christchurch Call for Action. On this occasion, President Juncker announced the development of an EU Crisis Protocol in the context of the EU Internet Forum. The EU Protocol will allow Member States and online platforms to respond rapidly and in a coordinated manner to the dissemination of terrorist content online in the event of a terrorist attack.

The EU Crisis Protocol endorsed by the EU Internet Forum today will:

•     Provide a coordinated and rapid reaction: Member States’ authorities, together with Europol, the Global Internet Forum to Counter Terrorism (GIFCT) and online service providers will be able to respond quickly, in a coordinated manner to ensure that the spread of terrorist or violent extremist content is swiftly contained.
•     Facilitate public and private sector cooperation: In the event of a crisis, law enforcement authorities and online service providers will share relevant information on the online content (e.g., URLs, audio-visual media, and metadata) on a voluntary basis, in a secure way and in real time.
•     Facilitate a voluntary arrangement: The Protocol does not replace national legal frameworks or existing national crisis management mechanisms. It should apply only to extraordinary situations where those national measures are no longer sufficient to coordinate a rapid and cross-border response.

The EU Internet Forum also discussed the overall progress made in ensuring the removal of terrorist content online since its last meeting in December 2018 and looked at the emerging challenges. This included, for the first time, a discussion on the global threat of online child sexual abuse and exploitation. Cooperation between public authorities and online platforms is key to fight against these horrible crimes effectively. Participants also took stock of the work to tackle the challenges presented by right wing extremism and the radicalising effect of violent political discourse.

Background

The EU Internet Forum was launched by Commissioner Avramopoulos in December 2015 to address internet misuse by terrorist groups. It brings together EU Home Affairs Ministers, the internet industry and other stakeholders who work together voluntarily to address this complex issue. Since its creation, the EU Internet Forum meets annually to take stock of the progress made in removing terrorist content online and to discuss emerging challenges. In 2015, an efficient referral mechanism to flag and remove terrorist content online was created at Europol.

In 2016, at the EU Internet Forum, the industry announced the creation of the “database of hashes” to make removals permanent and irreversible. The database is a critical tool in stemming the spread of terrorist content online. Since its launch, the database has gathered over 200,000 hashes (pictures, videos, etc.) and has helped both large and small platforms to remove such content quickly.

President Juncker announced the development of the EU Protocol in Paris earlier this year when he attended a meeting of government leaders and CEOs of major online platforms that was co-hosted by French President Emmanuel Macron and New Zealand Prime Minister Jacinda Ardern.

A first exercise to operationalise the Protocol already took place at Europol on 11 September 2019.

The EU Crisis Protocol will contribute to efforts undertaken at global level in the context of the Christchurch call, in particular the Crisis Response Protocol as announced in September at the margins of 2019 UNGA.

For more information

Factsheet – EU Crisis Protocol to remove violent content linked to a terror attack

Press Release – Fighting Terrorism Online: Internet Forum pushes for automatic detection of terrorist propaganda

Press Release – EU Internet Forum: Bringing together governments, Europol and technology companies to counter terrorist content and hate speech online

Christchurch Call to Eliminate Terrorist and Violent Extremist Content Online

Political groups’ coordinators from the committee will meet within 24 hours to assess the performance of Josep Borrell, candidate for High Representative for foreign affairs and security policy/Vice-President for A Stronger Europe in the World.

The EU has to learn to use the language of power

During his introductory speech, Mr Borrell stressed his intention to engage in reforms in the Western Balkans, support democracy and the integrity of Ukraine, address the challenges in the southern neighbourhood, develop a new strategy towards Africa, work on political relations with Asia, step up cooperation with Latin America and reinstate transatlantic relations (US-EU). “The world has changed for the worse…There are few agreements, more vetoes”, he said.

MEPs enquired how he intends to reach consensus among member states on decisions regarding e.g. Russia or generally related to security and defence. “We need shared strategic culture and empathy to understand the different points of view”, he replied. MEPs also asked about the role the EU could play in creating global security, when non-proliferation agreements are being breached. They also raised the issue of protecting EU maritime interests worldwide.

Asked about Kosovo-Serbia negotiations, Mr Borrell replied that negotiations have lasted too long and Europe has to engage in helping Kosovo and Serbia out of the deadlock. His first visit as High Representative/Vice-President would be to Pristina, he announced.

MEPs also asked how he intends to achieve a more strategic and coherent union, as announced in the Mission letter of the Commission President. Mr Borrell said that the EU has tools for foreign policy, such as a powerful common trade policy or diplomatic power. “The EU has to learn to use the language of power”, he stressed.

You can watch the video recording of the full hearing here.

Press point

At the end of the hearing, Committee Chair David McAllister held a press point outside the meeting room: watch it here

Next steps

Based on the committees’ recommendations, the Conference of Presidents will decide on 17 October if Parliament has received sufficient information to declare the hearing process closed. If so, the plenary will vote on whether or not to elect the Commission as a whole on 23 October, in Strasbourg.

Political groups’ coordinators from the committees will meet later today to assess the performance of Vice President-designate Jourová.

Rule of law, fundamental rights and transparency

During her introductory speech, Ms Jourová stated that her portfolio is “about Europe’s soul and the challenges that Europe is facing, internally and externally” and that she will “try to build bridges across the European Union based on our common values”.

MEPs asked questions on threats to media freedom, ranging from physical violence to abusive litigation. Potential measures mentioned by the Vice President-designate included anti-censorship legislation, as well as legal and financial aid for those facing rule of law violations.

The Vice President-designate was also asked about protecting the rule of law in general, whether she will commit to addressing constitutional imbalances, independence of the judiciary issues, and the shrinking space for civil society. Further, the hearing focused on ongoing Article 7 proceedings, as well as the need for a permanent monitoring mechanism for all member states.

On democracy, Ms Jourová spoke of her support for enhancing European electoral processes, for example by revisiting the Spitzenkandidaten process and transnational lists. Additional issues of concern discussed relate to “cash for passports” schemes, online disinformation and freedom of speech, and EU legislative transparency issues.

Later in the hearing, MEPs raised the issues of minorities in relation to European values and fundamental rights, tackling corruption and an independent ethics body for the EU institutions.

You can watch the video recording of the full hearing here.

Press point

At the end of the hearing, Committee Chairs Antonio Tajani and Juan Fernando López Aguilar and Vice President-designate Věra Jourová held a press point outside the meeting room: watch it here .

Next steps

Based on the committees’ recommendations, the Conference of Presidents will decide on 17 October if Parliament has received sufficient information to declare the hearing process closed. If so, the plenary will vote on whether or not to elect the Commission as a whole on 23 October, in Strasbourg.