Feed aggregator

Many developing countries are still grappling with the consequences of the pandemic and the associated high debt burdens while facing huge financing needs, inter alia related to climate change. In response, the International Monetary Fund (IMF) issued $650 billion in Special Drawing Rights (SDRs). The G7 and G20 have committed to re-channelling SDR 100 billion of their allocation to developing countries (on-lending, recycling and re-channelling are used interchangeably in this policy brief). The question now is how to implement these commitments in a way that promotes the global transformation and at the same time supports debt sustainability. It is important to note that there are certain restrictions on the re-channelling of SDRs. Most importantly, the re-channelling must be consistent with the SDR’s status as an international reserve asset. There are different interpretations of these requirements. The IMF has encouraged the use of the Poverty Reduction and Growth Trust (PRGT) and the Resilience and Sustainability Trust (RST) for re-channelling. It has also signalled general support for re-channelling SDRs to the multilateral development banks (MDBs). The European Central Bank (ECB) has taken a more restrictive stance. Does the re-channelling of SDRs through the above-mentioned IMF trusts (“the current on-lending option”) effectively support the global transformation? Measured against this objective, the current on-lending regime has two shortcomings. First, it does not sufficiently link foreign exchange support to deep structural transformation. Second, it does not allow funds to be leveraged in the private capital market. In this policy brief, we discuss a promising alternative: recycling SDRs for MDB hybrid capital (“the hybrid capital option”). This option can overcome the two drawbacks of the current system. At the same time, it has its own challenges. Moreover, both the current on-lending option and the hybrid capital option raise concerns about debt sustainability. If implemented in their current forms, they would risk exacerbating vulnerable countries’ debt problems. It would therefore be desirable to modify these options to better integrate debt implications. This could be done by using the on-lent SDRs primarily for programmes that are not “expenditure-based”, but rather help to improve the composition of expenditure and revenue in a socially equitable manner, for example the introduction of regulatory standards, feebates and carbon pricing, or the phasing out of fossil fuel subsidies. Such an approach could have the added benefit of making previously sceptical member states more receptive to the hybrid capital proposal.
The mid-term review of the RST, scheduled for May 2024, as well as the full review in 2025 provide good opportunities to further explore some of the issues raised in this policy brief. In addition, the brief identifies three ways in which interested shareholders of the IMF and MDBs could advance the debate on the hybrid capital option.

Many developing countries are still grappling with the consequences of the pandemic and the associated high debt burdens while facing huge financing needs, inter alia related to climate change. In response, the International Monetary Fund (IMF) issued $650 billion in Special Drawing Rights (SDRs). The G7 and G20 have committed to re-channelling SDR 100 billion of their allocation to developing countries (on-lending, recycling and re-channelling are used interchangeably in this policy brief). The question now is how to implement these commitments in a way that promotes the global transformation and at the same time supports debt sustainability. It is important to note that there are certain restrictions on the re-channelling of SDRs. Most importantly, the re-channelling must be consistent with the SDR’s status as an international reserve asset. There are different interpretations of these requirements. The IMF has encouraged the use of the Poverty Reduction and Growth Trust (PRGT) and the Resilience and Sustainability Trust (RST) for re-channelling. It has also signalled general support for re-channelling SDRs to the multilateral development banks (MDBs). The European Central Bank (ECB) has taken a more restrictive stance. Does the re-channelling of SDRs through the above-mentioned IMF trusts (“the current on-lending option”) effectively support the global transformation? Measured against this objective, the current on-lending regime has two shortcomings. First, it does not sufficiently link foreign exchange support to deep structural transformation. Second, it does not allow funds to be leveraged in the private capital market. In this policy brief, we discuss a promising alternative: recycling SDRs for MDB hybrid capital (“the hybrid capital option”). This option can overcome the two drawbacks of the current system. At the same time, it has its own challenges. Moreover, both the current on-lending option and the hybrid capital option raise concerns about debt sustainability. If implemented in their current forms, they would risk exacerbating vulnerable countries’ debt problems. It would therefore be desirable to modify these options to better integrate debt implications. This could be done by using the on-lent SDRs primarily for programmes that are not “expenditure-based”, but rather help to improve the composition of expenditure and revenue in a socially equitable manner, for example the introduction of regulatory standards, feebates and carbon pricing, or the phasing out of fossil fuel subsidies. Such an approach could have the added benefit of making previously sceptical member states more receptive to the hybrid capital proposal.
The mid-term review of the RST, scheduled for May 2024, as well as the full review in 2025 provide good opportunities to further explore some of the issues raised in this policy brief. In addition, the brief identifies three ways in which interested shareholders of the IMF and MDBs could advance the debate on the hybrid capital option.

Many developing countries are still grappling with the consequences of the pandemic and the associated high debt burdens while facing huge financing needs, inter alia related to climate change. In response, the International Monetary Fund (IMF) issued $650 billion in Special Drawing Rights (SDRs). The G7 and G20 have committed to re-channelling SDR 100 billion of their allocation to developing countries (on-lending, recycling and re-channelling are used interchangeably in this policy brief). The question now is how to implement these commitments in a way that promotes the global transformation and at the same time supports debt sustainability. It is important to note that there are certain restrictions on the re-channelling of SDRs. Most importantly, the re-channelling must be consistent with the SDR’s status as an international reserve asset. There are different interpretations of these requirements. The IMF has encouraged the use of the Poverty Reduction and Growth Trust (PRGT) and the Resilience and Sustainability Trust (RST) for re-channelling. It has also signalled general support for re-channelling SDRs to the multilateral development banks (MDBs). The European Central Bank (ECB) has taken a more restrictive stance. Does the re-channelling of SDRs through the above-mentioned IMF trusts (“the current on-lending option”) effectively support the global transformation? Measured against this objective, the current on-lending regime has two shortcomings. First, it does not sufficiently link foreign exchange support to deep structural transformation. Second, it does not allow funds to be leveraged in the private capital market. In this policy brief, we discuss a promising alternative: recycling SDRs for MDB hybrid capital (“the hybrid capital option”). This option can overcome the two drawbacks of the current system. At the same time, it has its own challenges. Moreover, both the current on-lending option and the hybrid capital option raise concerns about debt sustainability. If implemented in their current forms, they would risk exacerbating vulnerable countries’ debt problems. It would therefore be desirable to modify these options to better integrate debt implications. This could be done by using the on-lent SDRs primarily for programmes that are not “expenditure-based”, but rather help to improve the composition of expenditure and revenue in a socially equitable manner, for example the introduction of regulatory standards, feebates and carbon pricing, or the phasing out of fossil fuel subsidies. Such an approach could have the added benefit of making previously sceptical member states more receptive to the hybrid capital proposal.
The mid-term review of the RST, scheduled for May 2024, as well as the full review in 2025 provide good opportunities to further explore some of the issues raised in this policy brief. In addition, the brief identifies three ways in which interested shareholders of the IMF and MDBs could advance the debate on the hybrid capital option.

The world should ensure diverse supply chains and implement a framework to track the progress made towards tripling global renewable capacity by 2030, the EU's Energy Commissioner Kadri Simson said in Abu Dhabi on Wednesday (17 April). 

Le président du Conseil européen Charles Michel a affirmé que l’UE devrait réagir au programme de réduction de l'inflation (Inflation Reduction Act, IRA) des États-Unis, doté de plusieurs milliards de dollars, en renforçant son marché unique pour les capitaux financiers.

MEPs adopted their proposals to revamp EU pharmaceutical legislation, to foster innovation and enhance the security of supply, accessibility and affordability of medicines.
Committee on the Environment, Public Health and Food Safety

Source : © European Union, 2024 - EP

MEPs adopted their proposals to revamp EU pharmaceutical legislation, to foster innovation and enhance the security of supply, accessibility and affordability of medicines.
Committee on the Environment, Public Health and Food Safety

Source : © European Union, 2024 - EP

MEPs adopted their proposals to revamp EU pharmaceutical legislation, to foster innovation and enhance the security of supply, accessibility and affordability of medicines.
Committee on the Environment, Public Health and Food Safety

Source : © European Union, 2024 - EP

MEPs adopted their proposals to revamp EU pharmaceutical legislation, to foster innovation and enhance the security of supply, accessibility and affordability of medicines.
Committee on the Environment, Public Health and Food Safety

Source : © European Union, 2024 - EP

South Africa, the world’s second-largest citrus exporter in the world after Spain, has launched a dispute at the World Trade Organisation (WTO) over the EU’s phytosanitary trade rules, which it said were not justified or appropriate.

Fin mars, le Premier ministre albanais a fait scandale en agressant physiquement une reporter qui l'interrogeait sur les pharaoniques projets immobiliers du gendre de Donald Trump dans le pays. Un énième dérapage qui jette une lumière crue sur les menaces que son régime fait peser contre les journalistes. Reportage.

- Articles / Albanie, Osservatorio Balcani e Caucaso, Médias

Menschenrechts-NGOs haben am Mittwoch (17. April) das Versäumnis der französischen Regierung angeprangert, die Rechte von Menschen mit Behinderungen zu respektieren. Ein Jahr zuvor hatte der Europarat Frankreich deswegen gerügt.

Dans son rapport très attendu sur l'avenir du marché unique, présenté ce jeudi (18 avril) aux dirigeants de l'UE, l’ancien Premier ministre italien Enrico Letta recommandera la création d’une bourse européenne pour les startups de la deep tech.

Das georgische Parlament hat am Mittwoch (17. April) ein Gesetz über "ausländische Agenten" gebilligt. Nach Ansicht der EU besteht dadurch die Gefahr, dass der Weg Georgiens in die EU blockiert wird. In der Nacht kam es zum dritten Mal in Folge zu Protesten.

Der Ausbau der europäischen Energieunion ist eine der obersten energiepolitischen Prioritäten, im EU-Binnenmarktbericht von Enrico Letta. Des Weiteren hat der ehemalige italienische Ministerpräsident weitere gezielte Empfehlungen zur Umgestaltung des europäischen Energiesektors vorgeschlagen.

Dans un rapport présenté aux dirigeants de l’UE ce jeudi (18 avril), l’ancien Premier ministre italien Enrico Letta préconise le renforcement de l’Union de l’énergie et formule plusieurs recommandations ciblées sur la manière de transformer le secteur de l’énergie du continent.

On Tuesday, the French government unveiled the list of the first 55 sites available in France to host decarbonization industries. 

Heureka Group (Comparateurs de prix en ligne)
Concurrence
Infractions au droit de la concurrence de l’Union : l’ancien régime de prescription tchèque est incompatible avec le droit de l’Union

Heureka Group
Verseny
Uniós versenyjogi jogsértések: a korábbi cseh elévülési rendszer összeegyeztethetetlen az uniós joggal

Heureka Group
Competition
Infringements of EU competition law: the former Czech rules on limitation are incompatible with EU law