A currency swap line is an agreement between two central banks to exchange currencies. This allows a central bank to obtain foreign currency liquidity from the central bank that issues it – usually because they need to provide this to domestic commercial banks. For example, the swap line with the US Federal Reserve System enables the ECB and all the national central banks in the euro area (Eurosystem) to receive US dollars from the Fed in exchange for an equivalent amount of euro provided to the Federal Reserve. These agreements have been part of central banks’ set of monetary policy instruments for decades.

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The tenth meeting of the EU-UK Joint Committee and the second meeting of the EU-UK Partnership Council took place in London last Friday.  Vice-President Maroš Šefčovič represented the European Union, while UK Foreign Secretary, James Cleverly, represented the United Kingdom. The Joint Committee adopted last Friday a decision laying down the arrangements relating to the Windsor Framework. This decision covers, amongst others, the arrangements for the movement of goods not at risk of entering the Single Market, the “Stormont Brake”, and VAT and excise-related solutions, including the establishment of the Enhanced Coordination Mechanism for VAT and excise. A series of Recommendations, Joint Declarations and Unilateral Declarations have also been published, clarifying how different aspects of the Windsor Framework will work in practice, e.g. State aid or market surveillance.
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The seven national authorities participating in the Eurojust supported joint investigation team (JIT) on alleged core international crimes committed in Ukraine have signed a Memorandum of Understanding (MoU) with the United States Department of Justice. This MoU will enhance the coordination between the JIT partner countries and the US authorities in their respective investigations in connection with the war in Ukraine. The MoU was signed on Friday 3 March by high-level representatives of the prosecution services of the seven JIT partner countries and United States Attorney General Merrick B. Garland. Continue reading…

The International Association of Insurance Supervisors (IAIS) has reached an important milestone in the comparability assessment project – an initiative that will ascertain whether the Aggregation Method (AM) provides comparable outcomes to the Insurance Capital Standard (ICS). The IAIS has agreed on the criteria that will be used to assess whether the AM provides comparable outcomes to the ICS, following public consultation and the resolution of comments published on 9 March. This marks the finalisation of an important step for the comparability assessment project and equips the IAIS to begin the comparability assessment in Q3 2023.  Continue reading…

Last week, the Commission proposed a comprehensive set of actions to ensure the EU’s access to a secure, diversified, affordable and sustainable supply of critical raw materials. Critical raw materials are indispensable for a wide set of strategic sectors including the net zero industry, the digital industry, aerospace, and defence sectors. While demand for critical raw materials is projected to increase drastically, Europe heavily relies on imports, often from quasi-monopolistic third country suppliers. The EU needs to mitigate the risks for supply chains related to such strategic dependencies to enhance its economic resilience, as highlighted by shortages in the aftermath of the Covid-19 and the energy crisis following Russia’s invasion of Ukraine. This can put at risk the EU’s efforts to meet its climate and digital objectives.
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New research from the Financial Conduct Authority (FCA) has found that a quarter (25%) of investors who avoided a scam are taking inspiration from Sherlock Holmes to stop scammers in their tracks. It comes as the FCA launches its latest ScamSmart campaign which provides investors with the tools to identify and avoid scams. Analysis of data from the FCA’s consumer helpline has shown a 193% increase in calls to the FCA in the last five years, as investors detect investment scam warning signs. In 2022, over £2m was saved by beady-eyed investors, who called the FCA to report the firm or individual before losing money. Two in five (39%) respondents claim that their investigative or research skills are helping them to spot the clues. A further 32% are relying on pure gut instinct to distinguish between genuine investment opportunities and potential scams. Continue reading…

The European Commission just concluded the second formal meeting of the Steering Board of the EU Energy Platform, composed of high-level representatives from EU Member States. Maroš Šefčovič  wanted to take stock of the EU work so far on joint gas purchasing and inform the Member States of the next steps. Their has  been working on a tight schedule to prepare for next winter and the storage refilling season.  Šefčovič is pleased to say that thanks to our collective effort, we are on schedule, putting all the necessary pieces in place, one by one. So far, 22 EU Member States have expressed their preliminary interest in aggregating gas demand of more than 17 billion cubic meters of gas for the next three years. Maroš Šefčovič encouraged the five remaining Member States to notify their volumes as soon as possible. This will be topped up by close to 4 billion cubic meters of gas demand signalled by Moldova, Ukraine, and Serbia.
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The challenges to the European Union’s security and resilience are becoming increasingly complex and dynamic. A range of actors constantly test our resilience, seeking to exploit the openness, interdependence and connectivity of our societies and economies. The weaponisation of energy and the acts of sabotage against the Nord Stream gas pipelines have led to heightened attention to ensure the resilience of our critical infrastructure. Against this background, it is crucial for both the EU and NATO to support efforts to enhance national and collective resilience against threats to our critical infrastructure.
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UBS plans to acquire Credit Suisse. The combination is expected to create a business with more than USD 5 trillion in total invested assets and sustainable value opportunities. It will further strengthen UBS’s position as the leading Swiss-based global wealth manager with more than USD 3.4 trillion in invested assets on a combined basis, operating in the most attractive growth markets. The transaction reinforces UBS’s position as the leading universal bank in Switzerland. The combined businesses will be a leading asset manager in Europe, with invested assets of more than USD 1.5 trillion. The discussions were initiated jointly by the Swiss Federal Department of Finance, FINMA and the Swiss National Bank and the acquisition has their full support. UBS anticipates that the transaction is EPS accretive by 2027 and the bank remains capitalized well above its target of 13%. The transaction is not subject to shareholder approval. UBS has obtained pre-agreement from FINMA, Swiss National Bank, Swiss Federal Department of Finance and other core regulators on the timely approval of the transaction.

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