Category: Artificial Intelligence

  • MIL-OSI Economics: APEC Strengthens Science and Innovation Ties, Boosts Collaboration and Inclusive Development Gyeongju, Republic of Korea | 07 March 2025 APEC Policy Partnership on Science, Technology and Innovation

    Source: APEC – Asia Pacific Economic Cooperation

    The APEC Policy Partnership on Science, Technology, and Innovation (PPSTI) opened its 25th meeting last week in Gyeongju, Korea, laying the foundation for discussions on emerging technologies, strengthening scientific collaboration, and fostering inclusive development.

    This year marks a transformative period for PPSTI as the group works towards updating its 10-year strategic plan and strengthening collaboration across economies. In her opening remarks, PPSTI Chair Rahima Kandahari underscored the significance of this year’s meeting, emphasizing the group’s commitment to advancing the APEC Putrajaya Vision 2040.

    She highlighted the endorsement of the Mission Oriented Innovation Policy (MOIP), a multi-year process aimed at enhancing the quality and impact of PPSTI initiatives.

    “MOIP is a major milestone and an important step to strengthen the quality and impact of PPSTI projects and, more broadly, support the longevity and efficacy of PPSTI by aligning with expectations set forth by the Steering Committee on ECOTECH,” said Kandahari. “I believe that our combined efforts to implement this approach over the course of this year and beyond will ensure we meet our goals and address broader, grand challenges.”

    Members focused their discussions and showed support for strengthening research collaboration, enhancing talent mobility—including the proposed APEC Scientists Exchange Initiative—and maximizing the socio-economic value of emerging technologies such as quantum science, artificial intelligence, and biotech. Other topics include this year’s key tasks such as boosting science and technology capacity and open science.

    PPSTI Vice Chair Hazami Habib reinforced the importance of innovation in driving economic and social progress, noting that PPSTI provides a platform to address issues such as public health, food security, and digital transformation. “By working together, we can create a robust framework that supports research innovation and adoption of emerging technologies, ensuring that all APEC economies can benefit,” she said.

    Korea’s Ministry of Science and ICT Director General Sunghoon Hwang emphasized the economy’s long-standing commitment to science and technology-driven development. He remarked that Gyeongju, with its rich history and cultural significance, serves as an inspiring backdrop for the discussions on advancing cooperation and talent exchange in APEC.

    “Digital innovation, including generative AI, has brought changes we’ve never seen before. We are also facing complex changes that cannot be tackled by one economy alone,” Hwang said. “Against this backdrop, APEC cooperation and PPSTI discussions on science, technology and innovation have become more important than ever.”

    A major highlight of the meeting was the announcement of the APEC Science Prize for Innovation, Research, and Education (ASPIRE). This annual award recognizes young scientists from APEC economies who have made outstanding contributions to sustainable growth and innovation. Korea, this year’s APEC host economy, has committed to supporting ASPIRE and ensuring its continued success.

    “We really want to keep ASPIRE because it has a very high reputation in the field of science and technology innovation,” said Dr Hwanil Park, PPSTI Vice Chair and host representative. “This year, Korea will sponsor the award. However, for long-term sustainability, we need to discuss and reach a consensus on future sponsorship.”

    Under the 2025 theme, “Leading Inclusive Development with APEC Human Resources, Powered by Open Innovation and Emerging Technologies,” PPSTI aims to drive impactful cooperation in science, technology, and innovation.

    The forum’s three key priorities for the year include: strengthening STI capacity through enhanced exchanges of scientists, including women and youth; fostering research and development collaboration through open innovation to address grand challenges; and enhancing linkages by maximizing the socio-economic value of emerging technologies.

    For further details, please contact:

    APEC Media at [email protected] 

    MIL OSI Economics

  • MIL-OSI: Hut 8 Operations Update for February 2025

    Source: GlobeNewswire (MIL-OSI)

    592-acre site secured for newest River Bend campus in Louisiana

    ASIC fleet upgrade underway with deployment of new miners 

    Vega development progressing on schedule for Q2 energization

    MIAMI, March 06, 2025 (GLOBE NEWSWIRE) — Hut 8 Corp. (Nasdaq | TSX: HUT) (“Hut 8” or the “Company”), an energy infrastructure platform integrating power, digital infrastructure, and compute at scale to fuel next-generation, energy-intensive use cases such as Bitcoin mining and high-performance computing, today released its operations update for February 2025.

    “We made significant progress in February across every layer of our platform, from expanding our footprint to developing digital infrastructure and upgrading our ASIC fleet,” said Asher Genoot, CEO of Hut 8. “In our Power layer, we secured 592 acres in Louisiana for our newest River Bend campus, one of three sites comprising 430 MW of previously disclosed AI data center development opportunities. The site is expected to support a 300-megawatt utility-scale power asset with 200 megawatts of dedicated IT load.”

    “In our Digital Infrastructure layer, our Vega development remains on schedule for Q2 energization. Miner deliveries for our ~15 EH/s ASIC Colocation agreement with BITMAIN are underway, and as we prepare for energization, we have begun building out the site’s operational infrastructure, including the onboarding of site management and the development of operating processes.”

    “In our Compute layer, new miners began arriving at Salt Creek and Medicine Hat, and we are actively deploying them for our fleet upgrade. In parallel, we began the process of relocating the most efficient of our existing ASICs from Salt Creek to Alpha to improve overall fleet performance. While these initiatives resulted in some downtime during the month, it moves us closer to our post-upgrade hashrate target of ~10.3 EH/s and fleet efficiency target of ~20.5 J/TH.”

    Highlights

    • Secured 592 acres in Louisiana for River Bend campus
    • Vega development progressing on schedule for Q2 energization (image below)
    • ASIC fleet upgrade underway, with new miners arriving in tranches and being deployed

    Operating Metrics

    Average during the period unless otherwise noted February 2025 January 2025
         
    Total energy capacity under management (mining)1,2,3 665 MW 665 MW
    Total deployed miners under management4 109.2K 115.3K
    Total hashrate under management5 12.3 EH/s 12.7 EH/s
         
    Bitcoin Mining6    
    Deployed miners7,8 41.5K 47.1K
    Deployed hashrate9 4.6 EH/s 5.0 EH/s
    Bitcoin produced2,10 46 BTC 65 BTC
    Bitcoin held in reserve2,11 10,237 BTC 10,208 BTC
         
    Managed Services12    
    Energy capacity under management2 280 MW 280 MW
    Deployed miners under management8 84.4K 85.7K
    Hashrate under management 9.4 EH/s 9.4 EH/s
         
    ASIC Colocation    
    Deployed miners under management8,13 67.7K 68.1K
    Hashrate under management14 7.7 EH/s 7.7 EH/s
         

    Energy Infrastructure Platform2

            Current/Contracted Revenue Stream(s)15
    Site Location Owner16 Power
    Capacity
    Bitcoin
    Mining
    Managed
    Services
    ASIC
    Colocation
    CPU
    Colocation
    / Data
    Center
    Cloud
    Power
    Generation
    Vega17 Texas Panhandle Hut 8 205 MW     Yes18    
    Medicine Hat Medicine Hat, AB Hut 8 67 MW Yes        
    Salt Creek Orla, TX Hut 8 63 MW Yes        
    Alpha Niagara Falls, NY Hut 8 50 MW Yes        
    Drumheller18 Drumheller, AB Hut 8 42 MW          
    Kelowna Kelowna, BC Hut 8 1.1 MW       Yes  
    Mississauga Mississauga, ON Hut 8 0.9 MW       Yes  
    Vaughan Vaughan, ON Hut 8 0.6 MW       Yes  
    Vancouver II Vancouver, BC Hut 8 0.5 MW       Yes  
    Vancouver I Vancouver, BC Hut 8 0.3 MW       Yes  
    King Mountain19 McCamey, TX Hut 8 (JV) 280 MW Yes Yes Yes    
    Iroquois Falls20 Iroquois Falls, ON Hut 8 (JV) 120 MW         Yes
    Kingston20 Kingston, ON Hut 8 (JV) 110 MW         Yes
    North Bay20 North Bay, ON Hut 8 (JV) 40 MW         Yes
    Kapuskasing20 Kapuskasing, ON Hut 8 (JV) 40 MW         Yes
    Total     1,020 MW          
                     

    Upcoming Events

    Dates Event Location
    March 11–12, 2025 Cantor Crypto, Digital Assets & AI Infrastructure Conference Miami, FL
    March 16–18, 2025 37th Annual ROTH Conference Dana Point, CA
    March 24–25, 2025 Data Center Dynamics DCD>Connect New York City, NY
    March 25–27, 2025 Mining Disrupt Fort Lauderdale, FL
    April 7–8, 2025 Jones Healthcare and Technology Innovation Conference Las Vegas, NV
    May 13–15, 2025 J.P. Morgan Global Technology, Media and Communications Conference Boston, MA
    May 19–20, 2025 Barclays 15th Annual Emerging Payments and FinTech Forum New York City, NY
         

    Notes:

    (1) Energy capacity under management (mining) includes (i) 180 MW of Bitcoin Mining sites comprised of Alpha, Medicine Hat, and Salt Creek, (ii) 205 MW of ASIC Colocation capacity at Vega, which is currently under construction, and (iii) 280 MW of capacity under management at King Mountain.
    (2) As of the end of the period.
    (3) Includes 205 MW of capacity at Vega as the site is expected to host miners for BITMAIN.
    (4) Includes all miners that are racked with power and networking, rounded to the nearest 100, in Bitcoin Mining, Managed Services, and ASIC Colocation infrastructure with power and networking, including all miners at the King Mountain site.
    (5) Includes all Bitcoin Mining, Managed Services, and ASIC Colocation hashrate, including 100% of the hashrate at the King Mountain site.
    (6) Bitcoin Mining operations for Hut 8 include 100% of operations at the King Mountain site.
    (7) Deployed miners are defined as those physically racked with power and networking, rounded to the nearest 100; deployed Bitcoin Mining miners net of the 50% share of the King Mountain JV held by Hut 8’s joint venture partner was 33.1K during February and 38.4K during January.
    (8) Miners are rounded to the nearest 100.
    (9) Indicates the target hashrate of all deployed miners; deployed Bitcoin Mining hashrate net of the 50% share of the King Mountain JV held by Hut 8’s joint venture partner was 3.8 EH/s during February and 4.7 EH/s during January.
    (10) Bitcoin produced net of the 50% share of the King Mountain JV held by Hut 8’s joint venture partner was 38 BTC during February and 51 BTC during January.
    (11) Includes 968 Bitcoin pledged and transferred to a third-party wallet to finance Hut’s previously announced fleet upgrade.
    (12) Managed Services includes 280 MW of capacity under management at King Mountain.
    (13) 33.8K deployed miners under management net of the 50% share of the King Mountain JV held by Hut 8’s joint venture partner during February compared to 34.1K during January.
    (14) 3.8 EH/s under management net of Hut 8’s joint venture partner’s 50% share of the King Mountain JV during both February and January.
    (15) Reflects revenue sources to Hut 8, its subsidiaries, and/or joint ventures in which they participate.
    (16) Owned denotes ownership of power infrastructure at owned or leased data center locations, except for HPC sites where owned denotes ownership of mechanical and electrical infrastructure at leased data center locations.
    (17) Site is currently under development.
    (18) Site currently shut down; Hut 8 maintaining lease with option value of re-energizing site.
    (19) Owned by a JV between Hut 8 and a Fortune 200 renewable energy producer in which Hut 8 has an approximately 50% membership interest.
    (20) Owned by a JV between Hut 8 and Macquarie in which Hut 8 has an approximately 80% membership interest.
       

    About Hut 8 

    Hut 8 Corp. is an energy infrastructure platform integrating power, digital infrastructure, and compute at scale to fuel next-generation, energy-intensive use cases such as Bitcoin mining and high-performance computing. We take a power-first, innovation-driven approach to developing, commercializing, and operating the critical infrastructure that underpins the breakthrough technologies of today and tomorrow. Our platform spans 1,020 megawatts of energy capacity under management across 15 sites in the United States and Canada: five Bitcoin mining, hosting, and Managed Services sites in Alberta, New York, and Texas, five high performance computing data centers in British Columbia and Ontario, four power generation assets in Ontario, and one non-operational site in Alberta. For more information, visit www.hut8.com and follow us on X (formerly known as Twitter) at @Hut8Corp.

    Cautionary Note Regarding Forward–Looking Information

    This press release includes “forward-looking information” and “forward-looking statements” within the meaning of Canadian securities laws and United States securities laws, respectively (collectively, “forward-looking information”). All information, other than statements of historical facts, included in this press release that address activities, events, or developments that Hut 8 expects or anticipates will or may occur in the future, including statements relating to the expected River Bend site capabilities, the timing for the buildout and energization of the Vega site as well as the expected Vega site capabilities, and the timing of the delivery and deployment of the Company’s initial fleet upgrade and its fleet relocation, including the expected resulting improvements to hashrate and average fleet efficiency.

    Statements containing forward-looking information are not historical facts, but instead represent management’s expectations, estimates, and projections regarding future events based on certain material factors and assumptions at the time the statement was made. While considered reasonable by Hut 8 as of the date of this press release, such statements are subject to known and unknown risks, uncertainties, assumptions and other factors that may cause the actual results, level of activity, performance, or achievements to be materially different from those expressed or implied by such forward-looking information, including, but not limited to, failure of critical systems; geopolitical, social, economic, and other events and circumstances; competition from current and future competitors; risks related to power requirements; cybersecurity threats and breaches; hazards and operational risks; changes in leasing arrangements; Internet-related disruptions; dependence on key personnel; having a limited operating history; attracting and retaining customers; entering into new offerings or lines of business; price fluctuations and rapidly changing technologies; construction of new data centers, data center expansions, or data center redevelopment; predicting facility requirements; strategic alliances or joint ventures; operating and expanding internationally; failing to grow hashrate; purchasing miners; relying on third-party mining pool service providers; uncertainty in the development and acceptance of the Bitcoin network; Bitcoin halving events; competition from other methods of investing in Bitcoin; concentration of Bitcoin holdings; hedging transactions; potential liquidity constraints; legal, regulatory, governmental, and technological uncertainties; physical risks related to climate change; involvement in legal proceedings; trading volatility; and other risks described from time to time in Company’s filings with the U.S. Securities and Exchange Commission. In particular, see the Company’s recent and upcoming annual and quarterly reports and other continuous disclosure documents, which are available under the Company’s EDGAR profile at www.sec.gov and SEDAR+ profile at www.sedarplus.ca.

    Hut 8 Corp. Investor Relations
    Sue Ennis
    ir@hut8.com

    Hut 8 Corp. Media Relations
    media@hut8.com

    A photo accompanying this announcement is available at https://www.globenewswire.com/NewsRoom/AttachmentNg/491f8f14-dfa3-4756-b936-beb3e627bede

    The MIL Network

  • MIL-OSI: ArtGee Finance Fund: A Technological Revolution Redefining Crypto Asset Management—— A Financial Paradigm Shift Inspired by Artistic Genes

    Source: GlobeNewswire (MIL-OSI)

    Singapore, March 06, 2025 (GLOBE NEWSWIRE) — In 2017, when CryptoKitties first introduced the concept of NFTs to the mainstream, few realized how this digital art revolution would reshape financial infrastructure. Three years later, ArtGee Network broke down the barriers of the traditional art market with the first on-chain art asset protocol, while its twin, AGFF (ArtGee Finance Fund), was quietly taking shape.

    Initially launched as a community fund with just $4.7 million under management, AGFF uncovered a fundamental question during the value discovery process in the crypto art market: How can crypto-native technology reconstruct the underlying logic of asset management?

    By 2023, AGFF had delivered its answer—with $15 billion in assets under management and an annualized return exceeding industry benchmarks by 45%. Today, AGFF has built a three-pronged capability matrix encompassing technical architecture, ecosystem network, and risk management, setting a new standard for the crypto asset management industry through its innovative practices.

    1. Technological Revolution: From Data-Driven to Cognitive Leap

    While traditional asset management institutions still rely on historical data backtesting, AGFF’s Athena 2.0 system has achieved three major cognitive breakthroughs:

    ● Intent Inference Engine
    By utilizing machine learning to analyze on-chain address interaction fingerprints (such as gas fee payment patterns and DEX routing preferences), the system can predict the intent of whale accounts. For example, if a particular address conducts small test transactions in a Curve pool, the engine flags it as a potential arbitrage plan and adjusts asset weightings accordingly. In 2023, this system successfully intercepted 11 instances of market manipulation, preventing $89 million in losses.

    ● Multi-Modal Strategy Generation
    Investment managers can input market hypotheses using natural language (e.g., “ZK technology adoption will accelerate in Q3”), and within 5 seconds, the system generates a hedging portfolio incorporating LSD protocol tokens and volatility futures. The historical backtest yields a Sharpe ratio of 4.1. This “human-machine conversational strategy development” has improved investment decision-making efficiency by 300%.

    ● MEV-Resistant Architecture
    The system breaks down large orders into hundreds of cross-chain micro-transactions, using zero-knowledge proofs to verify execution integrity. This technology has reduced arbitrage strategy slippage losses by 83%, resulting in a 41% annualized return for high-frequency strategies in 2023, fundamentally rewriting the rules of the MEV game.

    2. Ecosystem Reconstruction: A Value Network Driven by Art Data

    AGFF’s artistic DNA extends beyond its origin story—it pioneers alternative data applications that redefine asset valuation and liquidity dynamics.

    ● Tokenization of NFT Creation Metadata
    By analyzing brushstroke frequency, color distribution, and other metadata from 420,000 on-chain artworks, AGFF built the world’s first art liquidity decay model. In a music copyright tokenization project, this model was used to set dynamic revenue-sharing parameters, increasing secondary market premiums by 89%.

    ● Cross-Chain Liquidity Federation
    AGFF co-founded the Art Liquidity Alliance (ALA) with Sui, Aptos, and eight other blockchains, enabling instant cross-chain settlement of fractionalized NFT tokens via a shared liquidity oracle. Users can stake a Bored Ape on BNB Chain and borrow USDT on TON Chain within 1.2 seconds, at just 1/5th the cost of traditional cross-chain bridges.

    ● Developer Revenue-Sharing Revolution
    By adopting the Revenue Sharing Token (RST) model, incubated projects convert 3-5% of their future income into on-chain tradable certificates. AGFF holders earn staking rewards from these revenue streams, generating $43 million in ecosystem-driven income in 2023, creating a self-sustaining value loop.

    3. Risk Immunity: A Native On-Chain Defense System

    AGFF’s risk management goes beyond traditional stop-loss mechanisms—it establishes an on-chain immunity system designed for proactive defense.

    ● Black Swan Oracle Network
    The system monitors 48 leading indicators in real-time, including stablecoin on-chain transfer velocity, CEX perpetual funding rate dispersion, and BTC holdings of U.S. government wallets. When three or more indicators breach preset thresholds, the system automatically rebalances portfolios. During the 2023 banking crisis, it issued a 9-hour early warning, limiting portfolio drawdowns to just 2.1% (compared to the industry average of 15.7%).

    ● RegTech Modular Architecture
    Each investment strategy is encapsulated into a compliance unit, automatically adjusting based on the user’s jurisdiction—such as disabling privacy coin trading or setting a 35% daily withdrawal limit. This design has reduced AGFF’s compliance costs by 67% while supporting operations across 134 countries and regions.

    ● DeFi Liquidation Alliance
    In collaboration with MakerDAO and Aave, AGFF co-founded an on-chain auction liquidation network, prioritizing on-chain market settlements when collateral values decline. In 2023 alone, it processed $1.1 billion in liquidations, achieving a 92% recovery rate (compared to 64% on CEXs), redefining risk management in the trillion-dollar DeFi market.

    4. Future Vision: The Next Decade of Crypto Asset Management

    With Hong Kong SFC Type 4/9 licenses and Cayman private fund qualifications, AGFF is rapidly expanding into EU’s MiCA framework with a dedicated art investment fund. Its quantum-resistant custody solution, developed in collaboration with Goldman Sachs, has already entered the mainnet testing phase.

    Even more exciting is the evolution of Liquidity DAO—where 120,000 community members participate in governance decisions through AI Bonds, redistributing asset management profits from institutions to creators.

    Through this wave of crypto financialization, AGFF has proven one fundamental truth: true innovation is not about predicting markets but about using technology to redefine the foundational rules of market operation. When art meets algorithms, and community will merges with machine intelligence, the future of asset management is being rewritten.

    Disclaimer: The information provided in this press release is not a solicitation for investment, nor is it intended as investment advice, financial advice, or trading advice. Cryptocurrency trading involves risk. There is potential for loss of funds. It is strongly recommended you practice due diligence, including consultation with a professional financial advisor, before investing in or trading cryptocurrency and securities.

    The MIL Network

  • MIL-OSI USA: As Avian Flu Rages, Gillibrand Calls On Trump Administration To Take Action To Fight Spread, Bring Down Skyrocketing Cost Of Eggs

    US Senate News:

    Source: United States Senator for New York Kirsten Gillibrand
    As avian flu rages across the country and drives up the cost of eggs, U.S. Senator Kirsten Gillibrand held a virtual press conference calling on the Trump administration to take action to develop and approve a vaccine for poultry and contain the outbreak.
    Bird flu has been found in 44 of New York’s 62 counties and has forced farmers to cull more than 150 million birds around the country, including 100,000 at one farm on Long Island alone. A new strain of the disease has been found in cattle; its spread would be devastating to New York’s dairy farmers and could pose a serious threat to human health if the strain continues to evolve.
    Nevertheless, the Trump administration has stopped releasing crucial data on the spread of bird flu and has fired federal workers responsible for tracking cases and managing the federal response. Gillibrand is calling on the administration to take action to address the outbreak and support the development and approval of a vaccine to bring down egg prices, reduce the need to depopulate flocks, and safeguard public health. 
    “Avian flu is decimating bird populations, and the subsequent shortage of egg-laying hens is making eggs unaffordable for working New Yorkers,” said Senator Gillibrand. “President Trump must act now to contain this outbreak. I am urging him to do everything in his power to prioritize the development of a vaccine to inoculate chickens against avian flu and fulfill his campaign promise to bring down grocery prices. I am alarmed that the administration limited the data shared with the scientific community and am urging full transparency. This deadly disease requires a whole of government response to be enacted immediately.” 
    The full text of Senator Gillibrand’s letter to leadership at the U.S. Department of Agriculture, the Department of Health and Human Services, the Department of Homeland Security, and the Office of the United States Trade Representative is available here or below:
    Dear Secretary Rollins, Secretary Kennedy, Secretary Noem, and Ambassador Greer,
    As the United States enters its third year of containing the H5N1 strain of Highly Pathogenic Avian Influenza (HPAI), it is imperative that the federal government continue to aggressively combat the spread of this deadly disease. With more than 150 million birds already culled, including 100,000 birds at one farm on Long Island alone, this outbreak does not appear to be slowing down.1 Human infections, including a fatal case in Louisiana, and a new strain of the disease discovered in a dairy herd in Nevada, demonstrate the ongoing and increasing risk this influenza is posing to animal and human health.2 Agencies must work together on comprehensive response efforts including vaccine development, publishing current scientific data, and proactive engagement with our international trading partners.  
    On January 31, 2025, the Animal and Plant Health Inspection Service confirmed a new genotype of HPAI, Genotype D1.1, identified in a dairy farm in Nevada.3 This is the first time in which there is clear, genetic confirmation that dairy cattle derived the virus from birds. As the virus evolves, it will make it more difficult to control the spread amongst wild birds, commercial poultry flocks, and dairy farms. In addition, an evolving virus could potentially lead to increased infections among humans, particularly farmworkers who interact with the animals daily. While the poultry industry has robust biosecurity measures to reduce the spread of HPAI in their operations, it seems that these measures are not adequate in combatting this highly virulent strain. The strategies used to combat the 2015 avian flu epidemic (i.e. increased biosecurity precautions) do not seem to be enough to counteract this strain.4  
    Engagement with the scientific community is the cornerstone of disease prevention and mitigation.  It is extremely alarming that the weekly Morbidity and Mortality Report from the Centers for Disease Control and Prevention, released on February 5, 2025, did not have any mention of H5N1 and did not contain any publicly available information on the risks associated with this virus. While data seemed to have been briefly included in the Morbidity and Mortality Report, it is no longer included in versions available online.5 Reports indicate that mistakenly reported data included indications there has been transmission of H5N1 between cats and humans, specifically those that share the same household.6 The midst of a potential public health crisis is not the time to hide information from the broader scientific community. The refusal to share this data will stifle critical vaccine development.  
    Unfortunately, inoculating poultry against HPAI, especially operations that are free-range, is extremely difficult. This outbreak of HPAI will require novel solutions in terms of vaccine delivery, such as additions to water or feed, as direct vaccine injection is not feasible on larger commercial operations. The income lost for poultry farmers can be immense if they must cull their flock. For example, egg-laying operations must wait at least 17 weeks before the animal is providing product, meaning farmers could be out of income for up to 5 months. Additionally, broiler chickens have a much shorter lifespan, meaning they must be vaccinated at a younger age. It is critical that the federal government use all resources available to rapidly develop and deploy these new vaccine strategies. The United States Department of Agriculture and the Department of Homeland Security must work closely together to use all possible resources at shared facilities, such as Plum Island or the National Bio and Agro-Defense Facility, to develop these new treatments for chickens, turkeys, and dairy cows.  
    While vaccines are being developed, the United States Trade Representative must proactively engage with our international trading partners regarding the usage of newly developed vaccines. Public-private engagement will be critical to inform vaccination guidance to ensure our agricultural communities have access to these critical foreign markets.  
    In summation, I request monthly written updates on the following items: 
    What coordination actions have been undertaken by the Departments of Health and Human Services, Agriculture, Homeland Security, and the U.S. Trade Representative. 
    The status of vaccine development for HPAI.  
    The interactions with international trading partners in terms of vaccine development. 
    Actions taken by executive agencies to engage with the scientific community.  
    I look forward to working on this issue together. If you have additional questions, please reach out to my staff.

    MIL OSI USA News

  • MIL-OSI United Nations: One in four countries report backlash against women’s rights in 2024

    Source: United Nations 4

    Women

    The basic rights of women and girls are facing unprecedented growing threats worldwide, from higher levels of discrimination to weaker legal protections -and less funding for programmes and institutions which support and protect women.

    UN Women’s latest report Women’s Rights in Review 30 Years After Beijing, published ahead of the UN 50th International Women’s Day on 8 March, shows that in 2024, nearly a quarter of governments worldwide reported a backlash on women’s rights.

    Despite decades of advocacy, economic instability, the climate crisis, rising conflicts and political pushback have contributed to a worsening landscape for gender equality.

    A generation at risk

    While 87 countries have been led by a woman at some point in history, true parity is still a long way off.

    Alarmingly, UN Women reports that a woman or girl is killed every 10 minutes by a family member or intimate partner.

    The digital space is also exacerbating gender disparities, the UN agency argues, with artificial intelligence and some social media platforms amplifying harmful stereotypes. Meanwhile, women and girls remain underrepresented in digital and tech-related fields.

    In the past decade, there has been a disturbing 50 per cent increase in the number of women and girls directly exposed to conflict, and women’s rights defenders confront daily harassment, personal attacks and even death, UN Women said.

    These findings underscore that crises such as COVID-19, soaring food and fuel prices, and the undermining of democratic institutions are not just slowing progress – but actively reversing gains.

    ‘We must stand firm’

    “When women and girls can rise, we all thrive,” said UN Secretary-General António Guterres in his message for the day. Yet, “instead of mainstreaming equal rights, we are seeing the mainstreaming of misogyny.”

    “Together, we must stand firm in making human rights, equality and empowerment a reality for all women and girls, for everyone, everywhere,” he emphasised.

    UN Women Executive Director Sima Bahous echoed this urgency: “Complex challenges stand in the way of gender equality and women’s empowerment, but we remain steadfast.”

    Women and girls are demanding change – and they deserve nothing less.”

    Beijing+30: The gains

    As the world marks the 30th anniversary of the Beijing Declaration in 2025, the most visionary roadmap for furthering women’s rights, UN Women’s latest report shows progress that must be acknowledged.

    Since 1995, countries have enacted 1,531 legal reforms advancing gender equality, maternal mortality has dropped by a third and women’s representation in parliaments has more than doubled.

    Yet, as the report makes clear, significant work remains to achieve the 2030 Agenda. The newly introduced Beijing+30 Action Agenda outlines priority areas to accelerate progress.

    Equal access to technology and online safety must be ensured for all women and girls, while investments in social protection, universal health care and education are all deemed essential for women’s economic independence.

    Women-led organizations must receive dedicated funding to build lasting peace and women’s leadership in environmental policies must be prioritised, ensuring equal access to green jobs.

    Meanwhile, countries must adopt and implement legislation to end violence against women and girls, in all its forms, with well-resourced plans that include support for community-based organizations on the front lines of response and prevention.

    The Beijing+30 anniversary, alongside the upcoming UN Commission on the Status of Women (CSW69), presents a crucial opportunity to enshrine this Action Agenda in national policies, regional strategies and global agreements.

    Soundcloud

    Turning words into action

    As gender equality faces one of its most challenging periods in decades, UN Women is calling on governments, businesses and civil society to reinforce their commitments and push back against the pushback.

    In this pivotal year for women’s rights, “UN Women is committed to ensuring that all women and girls, everywhere, can fully enjoy their rights and freedoms.”

    On Friday, we’ll have LIVE COVERAGE from UN Headquarters in New York during the official commemoration of International Women’s Day, featuring content from across the world from UN agencies and partners. 

    MIL OSI United Nations News

  • MIL-OSI Economics: Transcript of COM Regular Press Briefing, March 6, 2025

    Source: International Monetary Fund

    March 6, 2025

    SPEAKER:  Ms. Julie Kozack, Director of the Communications Department, IMF

     *  *  *  *  *

    MS. KOZACK: Good morning, everyone, and welcome to this IMF press briefing. It is very good to see you all, both those of you who are here in person and, of course, our colleagues online as well.

    I am Julie Kozak, Director of the Communications Department. As usual, this briefing is embargoed until 11 a.m. Eastern Time in the U.S. I will start with a short announcement and then take your questions in person on Webex and via the Press Center. 

    The 2025 Spring Meetings of the IMF and World Bank Group will take place from Monday, April 21 through Saturday, April 26. Press registration to attend the spring meetings in person in Washington D.C. is now open and you can register through www.IMFconnect.org. 

    And with that, I will now open the floor for your questions. For those connecting virtually, please turn on both your camera and microphone when speaking. And with that, over to you. 

    QUESTIONER: If the Congress does not approve the future agreement, as it is established by the local law, does the IMF give the money to Argentina? 

    MS. KOZACK: Okay, so that is a question on Argentina. Any other questions on Argentina? I do not see any hands up in the room. Let us go online. QUESTIONER: Do you think we are already in the final stage? And what remains to announce the Staff Agreement with the IMF?

    QUESTIONER: Good morning. I was wondering about also there have been versions of a new loan up to $20 billion and the first deployment of $8 billion this year. Can you confirm that, or can you give us an insight into the fresh funds that could be coming in the new agreement? And also, when can we expect a signing of the letter of intent? 

    QUESTIONER: So, my question is about the Congress. President Milei confirmed that the staff-level agreement must be approved by the Parliament as indicated by the Argentine law. So, is that also a requirement from the IMF itself or could the President sign a decree avoiding the current law that requires the staff-level agreement to be approved by Parliament. 

    QUESTIONER: I want to ask about the scope of the potential agreement with Argentina. There are reports out saying it could be as high, or there is an expectation it could be as high as $20 billion.

    QUESTIONER: I think a few people have already asked, but when [do] you expect to reach a staff-level agreement, whether, as the Argentine government has said, it is only the final numbers that need to be agreed and not other technical aspects? And whether the IMF requires that the entirety of the SLA be reviewed by Congress for approval or if whether a general outline produced by the government will be enough? 

    MS. KOZACK: Okay, very good. So, with that, let me go ahead and talk about Argentina. So, first, I just want to start by saying, as I think many of you know, both the Managing Director and the First Deputy Managing Director recently met with the Argentine authorities. And as they recently emphasized, we are continuing to make good progress toward a program, and we are working constructively with the Argentine authorities in this regard. The authorities’ stabilization and growth plan is delivering significant results.

    It has made notable strides in reducing inflation, stabilizing the economy, and fostering a return to growth in the country, and poverty is finally beginning to decline in Argentina. To sustain these early gains, there is a shared understanding about the need to continue to adopt a consistent set of fiscal, monetary and exchange rate policies, while very importantly, advancing growth enhancing reforms. And the new program would build on the progress achieved so far while also addressing Argentina’s remaining challenges. 

    Now, with respect to some of the questions regarding Congressional approval, we do take note of President Milei’s commitment to seek congressional support for a new IMF supported program. As we have often said in the past, strong ownership and broad support are key to the program’s success, 

    Here, I want to emphasize, though, that securing congressional support is a decision of the authorities as legislated in Argentine domestic law. And at the same time, of course, as I just noted, broad political and social support can enhance program implementation. Questions regarding the specific process on achieving or seeking congressional support should be addressed really to the Argentine authorities because it is a matter of domestic law. 

    From our side, as I noted, the negotiations are continuing in a constructive manner. In terms of the process from the IMF side. Once the negotiations are completed, as with any IMF program or proposed program, the final arrangement, the documents, will require approval of the IMF’s Executive Board. And we will provide further updates as we have them. 

    With respect to some of the questions about the details of the negotiations, the potential size of the program. All I can say right now is this is still under discussion as part of the ongoing and constructive dialogue that we are having with the authorities. And we will provide an update when we have more information that we can share with you. 

    QUESTIONER: On Lebanon, so following recent reports that the Lebanese government is in discussions with IMF over a potential deal on its financial default in public debt. I just want to see if the IMF can confirm these reports. If so, what does it look like? Are there any contingencies to this? And will there be an IMF mission visiting Lebanon? Thank you. 

    MS. KOZACK: So, what I can share on Lebanon is that an IMF team will visit Lebanon very soon, March 10th to 14th. This mission is aimed at, of course, meeting the new authorities, discussing Lebanon’s recent economic developments, its reconstruction needs, and the authorities’ economic priorities in the near-term. This is a fact-finding mission that will take place. But beyond this fact-finding mission, as we look ahead, future next steps could include helping the authorities to formulate a comprehensive economic reform program.

    Our staff continues to be closely engaged with the authorities. We are providing policy advice and capacity development to help the authorities’ efforts to rebuild Lebanon’s economy and institutions in coordination with other international partners. And that is what I have for now on Lebanon. 

    QUESTIONER: I wanted to ask you about what is happening in the United States. The trade wars have begun, and we are seeing some impact already, both in terms of market reaction and a lot of volatility in the markets, ups, and downs. We are also seeing some interesting developments in terms of bond markets and yields; it is going to increase the cost of borrowing. So, I wanted to ask you if you, at this point, I know we’ve asked this question before, but I wonder if you’ve got an additional assessment, as we’re now seeing some of these policies that had been promised taking effect, and whether you can say now whether you’re expecting an impact on the global economy and also on the U.S. economy and the affected economies that have been targeted thus far — China, Canada, Mexico. 

    QUESTIONER: As a follow up to [that] question, does the IMF consider that the ongoing developments of the U.S. tariffs and trade wars would push other nations to seek more trade relations and more alliances with other economic organizations and trade organizations such as BRICS, for example, or others? And broadly speaking, what is the IMF assessment of the global fragmentation that is going on right now? Do you see that it is slowing down or opposite it is moving faster, taking into account the latest developments in the United States?

    QUESTIONER: I would like to focus on the development of 10 years of U.S. bond yield movement. The 10-year bond yield now decreased, dropping substantially. And what does it mean? What is the implication of the movement? Does it represent some U.S. recession or U.S. economy? 

    QUESTIONER: With the tariffs actually now in place, has the IMF undertook a study to determine the potential impact on small island states that are heavily dependent on flows and goods and commodities coming out of the United States, more specifically, those countries within the Caribbean region who are very much dependent and could face significant inflationary pressures based on these tariffs?

    MS. KOZACK: So, first I want to just step back a little bit to recognize that we have seen now several new and significant developments over the past few days. The U.S. has imposed tariffs on Canada and Mexico as well as additional tariffs on China. Canada and China have, in response, announced tariffs on some U.S. goods and other measures. And Mexico has indicated that it will provide more details in the coming days.

    And as we have said before, you know, while assessing the full impact of tariffs on economic activity and inflation will depend on many factors, we do expect to provide an analysis of this, certainly at the global level and for the most affected countries at the time of our World Economic Outlook update in April. And of course we will also cover this issue, I imagine, in some of the regional updates where relevant. And I want to also emphasize that as part of our bilateral surveillance with countries, the individual Article IV reports this topic will also be covered to the extent that the countries are affected. 

    What I can say today is that if sustained the impact of the U.S. tariffs on Canada and Mexico can be expected to have a significant adverse economic impact on those countries given their very strong integration and exposure to the U.S. market. 

    Now, more broadly, there were some questions about financial market movements. So let me also just step back for a moment on some of these, and here I want to refer to some remarks that our Managing Director has been making recently. As she’s been saying, we are now in the midst of significant transformations, and these include the rapid advance of AI to changing patterns of capital flows and trade. She has also been mentioning that trade is no longer the engine of global growth that it used to be. 

    For example, during the period of 2000 to 2019, global trade growth reached nearly 6 percent on an annual basis, whereas over the more recent period of 2022 to 2024, global trade is growing closer to 3 percent. So global trade growth has been on a downward — has declined. And of course, it is in this more global context that governments are recalibrating their approaches and adjusting policies. 

    I also want to recognize, of course, that we have seen increased volatility in financial markets. We see that in indicators such as the VIX. We also have seen indicators of global uncertainty showing an increase. And what will be critical to assess what the economic impact of this will be — will be whether these trends are short-lived or whether they are sustained. Generally speaking, our research shows that both historically and across countries, sustained periods of elevated uncertainty can be associated with both households and firms holding back on consumption and investment decisions. And as I said, we will be providing a comprehensive analysis of our views on the global economy and individual economies as part of the World Economic Outlook that will be released in April. 

    On the specific question on U.S. bond yields, we do recognize of course, that U.S. bond yields have moved lower since the beginning of the year. And it does seem that on that basis markets may be reappraising or reassessing their views, particularly on the outlook for monetary policy. I will stop there and move on.

    QUESTIONER: When is the IMF Board expected to review and approve the next disbursement for Ukraine? Are there any remaining conditions or procedural steps that Ukraine must fulfill before approval? And the Ukrainian government is engaging in debt restructuring efforts with its creditors. How does the IMF assess Ukraine’s debt sustainability and what role does this play in bord’s decision making process regarding future disbursement announcements?

    QUESTIONER: So, to follow up on previous question. In February, you stated, that Ukraine would have access to about U.S. $900 million for the next review. Now we are speaking about $400 million. So, why the IMF has made a decision to adjust to the total sum of disbursement that will be provided to Ukraine?

    QUESTIONER: And do you think that it can impact financial stability of Ukrainian economy or there is no risk for them? 

    QUESTIONER: How do you expect the freezing of the U.S. aid for Ukraine might impact the program you have already on course right now? And how does this affect the global plan that had been made like a year ago or two years ago now? 

    QUESTIONER: I just want to follow up the last question about the impact — what the impact Trump administration is doing. Does this impact the IMF projections on Ukraine this and next year? 

    QUESTIONER: An adjacent question, maybe related to the prospect for ending the war. And, you know, we have seen economic developments in Russia continue to percolate along even though the war has been going on and there have been sanctions. Have you started to look at what the end of the war could mean for both the Russian and Ukrainian economies in terms of, you know, perhaps, you know, assuming that there would be an end of sanctions once there was a cessation of hostilities, whether that would give a boost to the Russian economy, maybe the European economy in general could lower costs, things like that? So just kind of walk us through what you are seeing there. 

    MS. KOZACK: Okay, let me go ahead on Ukraine. So, just to bring everyone up to speed. So, on February 28th, the IMF staff, and the Ukrainian authorities reached a staff-level agreement on the Seventh Review of the four-year EFF arrangement. This is subject to approval of the IMF’s Executive Board. Ukraine is expected to draw, as noted, about U.S. $400 million, and that would bring total disbursements under the program to U.S. $10.1 billion.

    I just want to note that program performance in Ukraine remains strong. All of the end December quantitative performance criteria were met, and understandings were reached between the Ukrainian authorities and IMF staff on a set of policies and reforms to sustain macroeconomic stability. The structural reform agenda in Ukraine is continuing to make good progress, and there are strong commitments from the Ukrainian authorities in a number of other areas. 

    Now on some of the specific questions, first on the matter of the disbursement, what I can say there is that it is not unusual over the life of a program for the pattern of disbursements to shift based on evolving balance of payments needs. And that is what has happened in this case. It is also important to emphasize that the overall size of the program, which is $15.6 billion, remains unchanged. And so that shift in disbursement pattern reflects the shifting balance of payments pattern for Ukraine. 

    So, on the issue the debt restructuring and debt process, what I can say there is that restoring debt sustainability in Ukraine hinges on continued implementation of the authority’s debt restructuring strategy, where completing the treatment of the GDP warrants remains important. And it also hinges very much on continuation of the revenue-based fiscal adjustment strategy, which is supported under the program. And as you know, Ukraine’s debt has been assessed in the last review to be sustainable on a forward-looking basis contingent on these two areas that I just mentioned. And of course, there will be a revised debt sustainability assessment as part of the ongoing review. 

    With respect to the other question, what I can say here is that the Ukrainian economy, you know, has shown continued resilience despite the challenges arising from the war. At the time of the Seventh Review, the last review, we estimated GDP growth to be 3.5 percent in 2024. But we did expect it at that time to moderate to 2 to 3 percent in 2025. And that was reflecting some headwinds from labor constraints and damage to energy infrastructure, given the ongoing war. It is the case in general for Ukraine, and we have been saying this throughout the life of the program, that the outlook remains exceptionally uncertain, especially as the war continues and it is taking a heavy toll on Ukraine’s people, economy, and infrastructure. 

    On the more recent developments that you were referring to, we are following these developments very closely. It is premature at the moment to comment on them, but we are following them, and we will make an assessment in due course.

    And on your question, the answer is essentially the same. We are following the developments very closely, and we will, as developments evolve, be undertaking obviously an assessment of what a peace deal could potentially look like and what would be the implications for all of the involved parties. 

    QUESTIONER: Julie, can you on the basis of having studied previous conflicts ending, can you just give us divorced from Ukraine and Russia, but just can you give us an indication of what generally happens when a conflict ends, what that means? And is there anything that we can draw on, at least just from history? 

    MS. KOZACK: So, I do not have, you know, off the top of my head a piece of research that I can kind of point to in terms of the interest analysis. What I certainly can say is that we always, for all of our member countries, hope for peace and stability in all of our member countries. And I think at that moment this is really what I can say. But I take note of the importance of your point, and we will, I have no doubt, in due course be conducting all of the necessary analysis as events unfold.

    QUESTIONER: I have two questions mainly on Egypt. as Egypt is scheduled for 10th of March for the discussion of the Fourth Review of the EFF for the country, what are we expecting from this meeting? And if you please, could you update us on the RSF facility worth $1.2 billion for the country? Thank you so much. 

    QUESTIONER: I would second exactly those questions. And just to add to that, I know it says on the IMF Executive Board calendar that the Board will be discussing waivers of non-observance for some of the performance criteria related to Egypt’s loan program and modifications for others. Are you able to tell us any more about exactly which criteria the Board will be looking at? And on the RSF, if you are able to give us any more detail about the prospective value of that. I know it has been put at $1 billion before. A related question, not on Egypt but on Gaza. I would be interested to know if the IMF has begun to think, whether internally or with partners in the region, about what its potential role would be in funding a reconstruction plan for Gaza given the $50 billion, upwards of $50 billion, cost of any reconstruction. 

    QUESTIONER: I may repeat questions about the value of current tranche to be given to Egypt and the timing of when the central bank of Egypt to receive it. And also, I have another question about the program of state assets selling. Will we witness some steps, new steps in that program? Could it be connected with the decision to be taken in March?

    MS. KOZACK: And any other questions on Egypt? All right. And then I have a question that came in through the Press Center. I am going to read it out loud – ’Does the IMF’s approval of the fourth tranche to Egypt require Egypt to implement some reforms? And when will the Fifth Review of the loan be held? What is the estimated size of the loan allocated to Egypt, and here will it be dispersed in installments or in one lump sum?’

    On Egypt – on March 10th, our Executive Board will be discussing Egypt’s Article IV consultation and the fourth review under the EFF. It will also be discussing at the same time Egypt’s request for an RSF, the Resilience and Sustainability Facility. Subject to completion by the Executive Board, the authorities, would have access to $1.2 billion under the EFF. So, under the EFF program. And then in addition, subject again to approval by our Executive Board, the size of the RSF would be about U.S. $1.3 billion. Regarding the RSF, like all of the IMF programs, the RSF is also delivered in tranches. So, it is not one lump sum up front. It is a phased program where tranches are dispersed on the basis of conditions being met. 

    And with respect to some of the other questions, what I can say today is just that we will provide, of course, more details following the Board meeting and on the question of waivers and modifications and also the questions on the state-owned enterprises. And again, the board meeting will be on March 10th. 

    QUESTIONER: I have two questions related to Japan. Firstly, amid rising uncertainty due to President Trump’s tariff policy, I would like to ask you — ask your thoughts on whether the Bank of Japan, currently in a rate hike phase, should continue raising rate or take more cautious approach in assessing the impact. And secondly, President Trump recently made remarks suggesting that Japan and China are engaging in currency devaluation. I would appreciate it if you share your views on Japan’s foreign exchange policy. Thank you. 

    MS. KOZACK: So, maybe just stepping back to give a bit of context on Japan. What I can say on Japan is that on the growth side, growth this year is expected to strengthen, and we also expect inflation to converge to the Bank of Japan’s 2 percent target by the end of 2025. 

    In 2024, growth in Japan slowed due to some temporary supply disruptions. But since then, we have seen a strengthening in growth driven by domestic demand, particular — particularly private consumption in Japan and rising wages. And we expect this to continue into 2025, where we project growth, at the time of the January WEO, we projected growth at 1.1 percent for Japan in 2025. And of course, just to say that we will be updating this projection as part of the April forecast. 

    Looking at inflation — headline and core inflation, as I said, are expected to decline gradually toward the 2 percent target. We have been supportive of the Bank of Japan’s recent monetary policy decisions. We believe that these decisions will help anchor inflation expectations at the 2 percent target but also given balance risks around inflation, our assessment has been that further hikes in the policy interest rate should continue to be data dependent, and they should proceed at a gradual pace over time. 

     With respect to the question on the exchange rate, what I can say there is that the Japanese authorities have affirmed their commitment to a flexible exchange rate regime. Japan’s flexible exchange rate regime has helped the country or has helped the economy absorb the impact of shocks. And it also supports the focus of monetary policy on price stability. And at the same time, what I can say is that that flexible exchange rate regime is helping maintain an external position that is in line with fundamentals. 

    QUESTIONER: Could you give us an update on the negotiations for Ethiopia, please? And on El Salvador, the deal that you agreed on in December and was approved a couple of weeks ago involves the government not increasing its exposure to Bitcoin. Government has continued to buy through the Office of Bitcoin, which is linked to the presidential palace. But yesterday the Fund said that these purchases do not increase the government’s exposure to Bitcoin. Could you please explain that? 

    QUESTIONER: Also on El Salvador, obviously he was saying to not to not buy it as a government reserve. I just wanted to, I guess, contrast to the U.S. I mean, President Trump has very much announced a digital assets reserve, including Ethereum and other coins, as well as Bitcoin. And I wondered if the IMF could – can you comment on the U.S. program or how would you distinguish the two countries and why the IMF might be taking a different approach?

    MS. KOZACK: All right, let me go ahead and take the El Salvador question in Ethiopia and then we will go back. I see many hands up online. 

    So, on El Salvador, as you know, last week our Executive Board approved a 40-month Extended Fund Facility, EFF, for U.S. $1.4 billion and with an immediate disbursement of $113 million. The program is expected to catalyze financial and technical support from other IFIs. And this will lead to a combined total over the program period of about U.S. $3.5 billion of support for El Salvador. The goals of the program are to restore fiscal sustainability, rebuild external and financial buffers, strengthen governance and transparency, and ultimately create the conditions for stronger and more resilient growth. 

    Regarding Bitcoin, in particular, the program aims to address the risks associated with the Bitcoin project to protect consumers and investors, as well as to limit potential fiscal costs. So, to start, there were recent legal reforms that have made the acceptance of Bitcoin voluntary, and taxes can be paid only in U.S. dollars. Under the program, the government has committed to not accumulate for their Bitcoins at the level of the overall public sector. 

    Regarding the recent increase in Bitcoin holding by the Strategic Bitcoin Reserve Fund, the authorities have confirmed that these are consistent with the agreed program conditionality, and we do remain engaged with the authorities on this important issue. 

    And then, to your question. We are obviously closely monitoring President Trump’s announcement in this area. The Presidential Working Group on Digital Asset Markets has not yet completed its work. So, we do not yet have details on the implementation of this proposal, but we will come back in due course. 

    And then turning to the question on Ethiopia. So just an update on Ethiopia. On January 17th, the IMF Executive Board completed the Second Review of the arrangement, the ECF arrangement for Ethiopia, and that allowed for a drawdown of about U.S. $245 million. The ECF arrangement supports the authorities’ reforms to address macroeconomic imbalances, restore external debt sustainability, and lay the foundation for strong private sector-led growth. 

    I can also just remind you that the Managing Director recently traveled to Ethiopia. She was there February 8th and 9th. She met with Prime Minister Abiy and his team to take stock of the economic reforms and the progress that is being made in the country. And she also took the opportunity to meet with other stakeholders, including representatives of the private sector. 

    QUESTIONER: My question is on USAID. USAID has now totally stopped its business. And to what extent do you see the impact, especially on lower income countries at the global level? And should you consider using your facility to support them just in case? 

    MS. KOZACK: So, on this issue, we are obviously again paying close attention to developments, and we are working with our country authorities. But it is, at the same time, it is too early to really say what the precise impact may be. And so, we will come back in due course. For now, we are monitoring.

    QUESTIONER: I have a question on Senegal. Following a recent audit of the country’s debt, it was found to be 99.7 percent of GDP. That was in 2023. And I know that IMF has said before that Senegal debt was stable even though it was high. I am wondering if that is the figure that you still consider sustainable. And then also with regards on talks of a new IMF program, I am wondering if Senegal could be asked to reimburse previous dispersion under this reporting period. 

    QUESTIONER: Still on Senegal, as soon as the report from the Audit Supreme Court was released, we saw rating agency downgrading Senegal sovereign notes. So, the country is now stuck. It cannot raise funds from the internal market, and it cannot go in a very comfortable position in international markets while they still face a lot of challenges. So, I am wondering why the IMF is working fast and bold to find a solution for Senegal in the midterm or even long-term. Is there any situation where IMF can provide a short-term, I mean, short-term relief to the country so they can go through these hard moments in a very soft way? 

    MS. KOZACK: So, on Senegal, what I can say is that we are actively engaged in discussions with the authorities with respect to the Court of Auditors Report and the associated misreporting under the IMF program. The Court of Auditors Report was released on February 12th. The Court confirmed that the fiscal deficit and debt were under reported during the period of 2019 to 2023.

    So, what we are doing is working closely with the authorities in their efforts to preserve fiscal and debt sustainability. We are working actively to advance on our discussions following the publication of the report, and we are also working with the authorities on measures to correct and remedy the misreporting that took place. What I can add is that the resolution of the misreporting in line with IMF policy is a precondition for discussions of any future financial assistance by the IMF.

    And with respect to potential consequences, I can say that the IMF does not impose any sanctions for misreporting cases. It is up to our Executive Board to decide on the next steps. And those next steps, you know, could include a waiver. And that waiver could — it could also include; it could be a waiver without a request for reimbursement. So, all of those discussions on Senegal are now underway. We are actively, very much working with the authorities, supporting as much as possible their efforts on fiscal and debt sustainability, as I said. And we will come back and report back when we have more information on Senegal. 

    I have a question here online that I am going to read. It came from the Press Center on Thailand. And the question is – ‘The upcoming World Bank IMF Annual Meetings in Thailand will bring significant attention to Southeast Asia’s economic outlook. From the from IMF’s perspective, how can Thailand best leverage this opportunity to address regional challenges such as digital transformation, climate change adaptation, and income inequality? And what collaborative initiatives between the IMF and Thailand are being planned to ensure lasting economic benefits for the country beyond the meetings themselves?’ 

    So, on this very important question, a very nice question, actually, what I can say is that we are very much looking forward to having Thailand host the annual meetings in 2026. So, this will be in October of 2026. Every three years, we do our Annual Meetings abroad. 2026, October will be Thailand. So, mark your calendar. I can also add that preparations are underway. The Fund, the IMF staff are working hand in hand with the Thai authorities to make this a highly successful event and showcasing the significant strides that Thailand has made since it last hosted our annual meetings in 1991. So, it will be 25 years when we get to 2026. 

    The Managing Director recently met with Bank of Thailand’s Governor Sethaput at the AlUla Conference in Saudi Arabia. They discussed the preparations for the annual meetings and agreed that it would be a very good opportunity to showcase on the global stage the region’s dynamism and economic activities. And of course, the meetings will also allow Thailand to position itself as a key contributor to the international economic dialogue and to gather views and experiences from countries throughout the membership of the IMF and the World Bank. 

    This ongoing close relationship leading up to and beyond, we hope, the Annual Meetings will focus on prioritizing reform reforms that are necessary to ensure the lasting benefits for Thailand and building the relationships and the shared policy, dialogue and experiences we hope will deepen our engagement, our excellent engagement and relationship with Thailand and will be sustained even past the Annual Meetings in 2026.

    QUESTIONER: My question is, what are the IMF growth projections for Jordan amid the ongoing impact of the Gaza war? And when will the Third Review under the EFF begin? And are any adjustments expected to the war’s region effect on Jordan’s economy? 

    MS. KOZACK: So, what I can share on Jordan is that the Executive Board on December 12th completed the Article IV Consultation with Jordan and the Second Review under the EFF arrangement. The mission for the next review, which will be the Third Review, is expected to take place in April.

    What I can also say is that Jordan has demonstrated resilience and maintained macroeconomic stability throughout the prolonged regional conflict. This resilience reflects the authority’s continued implementation of sound macroeconomic policies and progress with reforms. While recent developments in the region, particularly the ceasefire agreements, give rise to some cautious optimism, uncertainty, of course, in Jordan does remain high. And with respect to the growth projections, what I can say is that growth in 2024 was 2.3 percent. We are projecting growth at 2.5 percent in 2025 and a further increase in growth in 2026 to 3 percent. But like in all countries, we will be updating these projections as both part of our April World Economic Outlook Global Forecast, and also, of course, the team will be doing a full assessment of the Jordanian economy as part of their mission in April 

    And so, with this, I’m going to bring this press briefing to a close. Thank you all very much. Thank you very much for participating today. As a reminder, the briefing is embargoed until 11 a.m. Eastern Time in the U.S. The transcript, as always, will be made available later today on IMF.org. And in case of clarifications or additional questions, please reach out to my colleagues at media@IMF.org. And I wish everyone a wonderful day, and I look forward to seeing you next time. Thank you very much. 

     

    * * * * *

     

    IMF Communications Department
    MEDIA RELATIONS

    PRESS OFFICER: Boris Balabanov

    Phone: +1 202 623-7100Email: MEDIA@IMF.org

    MIL OSI Economics

  • MIL-OSI: IDT Corporation Reports Record Second Quarter 2025 Results

    Source: GlobeNewswire (MIL-OSI)

    Record levels of gross profit +16%; income from operations +77%; Adjusted EBITDA*+56%

    GAAP EPS increased to $0.80 from $0.57; Non-GAAP EPS*increased to $0.84 from $0.67

    IDT raised its quarterly dividend 20% to 6 cents

    NEWARK, NJ, March 06, 2025 (GLOBE NEWSWIRE) — IDT Corporation (NYSE: IDT), a global provider of fintech, cloud communications, and traditional communications solutions, today reported results for its second quarter fiscal year 2025, the three months ended January 31, 2025.

    SECOND QUARTER HIGHLIGHTS

    (Throughout this release, unless otherwise noted, results for the second quarter of fiscal year 2025 (2Q25) are compared to the second quarter of fiscal year 2024 (2Q24). All earnings per share (EPS) and other ‘per share’ results are per diluted share.

    • Key Businesses / Segments
      • NRS
        • Recurring revenue**: +32% to $31.6 million;
        • Income from operations: +71% to $9.1 million;
        • Adjusted EBITDA: +65% to $10.1 million;
        • ‘Rule of 40’ score**: 55
      • BOSS Money / Fintech segment
        • BOSS Money transactions: +36% to 5.7 million;
        • BOSS Money revenue: +34% to $33.5 million;
        • Fintech segment gross profit: +35% to $21.7 million;
        • Fintech segment income from operations: increased to $3.1 million from a loss of $(0.7) million;
        • Fintech segment Adjusted EBITDA: increased to $3.9 million from a loss of $(12) thousand;
      • net2phone
        • Subscription revenue**: +9% to $21.0 million (+14% on a constant currency basis);
        • Income from operations: increased to $1.1 million from $0.4 million;
        • Adjusted EBITDA: +55% to $2.9 million;
      • Traditional Communications
        • Gross profit: +2% to $43.1 million;
        • Income from operations: +24% to $18.1 million;
        • Adjusted EBITDA: +19% to $20.2 million;
    • IDT Consolidated
      • Revenue: +2% to $303.3 million;
      • Gross profit (GP) / margin: GP +16% to $112 million; GP margin +420 bps to 37.0%;
      • Income from operations: +77% to $28.3 million;
      • Net income attributable to IDT: +41% to $20.3 million;
      • GAAP EPS: Increased to $0.80 from $0.57;
      • Non-GAAP net income: +26% to $21.3 million;
      • Non-GAAP EPS: Increased to $0.84 from $0.67;
      • Adjusted EBITDA: +56% to $34.0 million;
      • CapEx: +6% to $4.8 million;
      • Stock buyback: Repurchased 179,338 shares of IDT Class B common stock in market transactions during 2Q25 for $8.5 million at an average share price of $47.59;
      • Common stock dividend: IDT increased its quarterly dividend from $0.05 to $0.06.

    REMARKS BY SHMUEL JONAS, CEO

    “IDT had a strong second quarter led by NRS and BOSS Money, and supported by robust results from our Traditional Communications segment, which increased its cash generation for the third consecutive quarter. On a consolidated basis, we again generated record levels of gross profit, income from operations, and Adjusted EBITDA.

    “NRS continued to deepen its penetration of the independent retailer market. We are now launching new features and functionalities that increase the value of our solution for retailers and will help us to drive additional growth.

    “BOSS Money delivered another quarter of strong year-over-year transaction and revenue growth. In the second quarter, we continued to focus on improving the margin contribution, particularly in our retail channel, and that effort helped to boost our Fintech segment’s gross profit and Adjusted EBITDA less CapEx to record levels.

    “net2phone continued its expansion led by further growth in the U.S. market. We are especially excited about last week’s launch of net2phone’s virtual AI agent. It has been very well received by our internal BOSS and NRS teams that are using it with great success to enhance the quality and consistency of customer interactions while reducing costs. We are confident that net2phone clients will find that it provides them with great value right out of the gate. Moreover, as they build with our AI agent, it will provide clients with increasingly sophisticated, tailored solutions that add value across disparate functions within their organizations.

    “Our Traditional Communications segment increased Adjusted EBITDA for the third sequential quarter and surpassed $20 million for the first time since fiscal 2022.

    “In light of our solid financial position and positive outlook, and mindful of the feedback we’ve received from our investors, we stepped up our repurchases of stock during the second quarter and have increased our regular quarterly dividend by 20%.”

    2Q25 RESULTS BY SEGMENT

    (For all periods presented, capital expenditures (CapEx), previously provided on a consolidated basis, is now also provided for each business segment.)

    National Retail Solutions (NRS)

    National Retail Solutions (NRS)
    (Terminals and accounts at end of period. $ in millions, except for average revenue per terminal)
          2Q25       1Q25       2Q24       2Q25-2Q24 (% Δ)  
    Terminals and payment processing accounts                                
    Active POS terminals     34,800       33,100       28,700       +21 %
    Payment processing accounts     23,900       22,700       18,200       +32 %
                                     
    Recurring revenue                                
     Merchant Services & Other   $ 18.1     $ 17.2     $ 12.5       +45 %
     Advertising & Data   $ 10.0     $ 8.5     $ 8.7       +15 %
     SaaS Fees   $ 3.5     $ 3.3     $ 2.7       +30 %
    Total recurring revenue   $ 31.6     $ 28.9     $ 23.9       +32 %
     POS terminal sales   $ 1.3     $ 1.4     $ 1.3       +2 %
    Total revenue   $ 33.0     $ 30.4     $ 25.2       +31 %
                                     
    Monthly average recurring revenue per terminal**   $ 310     $ 295     $ 285       +9 %
                                     
    Gross profit   $ 30.3     $ 27.6     $ 22.5       +35 %
    Gross profit margin     91.8 %     91.0 %     89.1 %     +270 bps
    Technology & development   $ 2.2     $ 2.0     $ 1.9       +14 %
    SG&A   $ 19.0     $ 19.0     $ 15.2       +25 %
    Income from operations   $ 9.1     $ 6.6     $ 5.3       +71 %
    Adjusted EBITDA   $ 10.1     $ 7.6     $ 6.1       +65 %
    CapEx   $ 0.9     $ 1.2     $ 1.0       (4 )%
                                     

    NRS Take-Aways / Updates:

    • NRS added approximately 1,700 net active terminals and approximately 1,200 net payment processing accounts during 2Q25. Net active terminal additions included the impact of approximately 300 terminals operating in seasonal stores that suspended operations following the quarter close.
    • The 45% year-over-year increase in Merchant Services & Other revenue was driven by the growth in payment processing accounts, and higher merchant services revenue per account, driven in part by the increased percentage of retail transactions paid with a credit or debit card.
    • The 30% year-over-year increase in SaaS Fees revenue reflects the growth of net active terminals and migration of retailers to premium SaaS plans.

    Fintech

    Fintech
    (Transactions in millions. $ in millions, except for average revenue per transaction)
          2Q25       1Q25       2Q24       2Q25-2Q24 (% Δ, $)  
    BOSS Money transactions     5.7       5.6       4.2       +36 %
                                     
    Fintech Revenue                                
    BOSS Money   $ 33.5     $ 33.7     $ 25.0       +34 %
    Other   $ 3.3     $ 3.4     $ 2.9       +13 %
    Total Revenue   $ 36.8     $ 37.1     $ 28.0       +32 %
                                     
    Average revenue per BOSS Money transaction**   $ 5.87     $ 6.01     $ 5.98     $ (0.11 )
                                     
    Gross profit   $ 21.7     $ 21.6     $ 16.1       +35 %
    Gross profit margin     58.9 %     58.2 %     57.5 %     140 bps
    Technology & development   $ 2.3     $ 2.3     $ 2.5       (8 )%
    SG&A   $ 16.3     $ 16.1     $ 14.3       +14 %
    Income (loss) from operations   $ 3.1     $ 3.2     $ (0.7 )     +$3.8  
    Adjusted EBITDA   $ 3.9     $ 4.0     $ 0       +$3.9  
    CapEx   $ 0.8     $ 1.1     $ 0.8       +1 %
                                     

    Fintech Take-Aways:

    • The 36% increase in BOSS Money transactions reflected a 40% year-over-year increase in digital transactions and a 22% increase in retail transactions.
    • BOSS Money revenue increased 34% year-over-year driven by a 38% year-over-year increase in digital channel revenue. The 1% sequential decrease in revenue reflected BOSS Money’s continued focus on expanding per-transaction margins, particularly at retail, which boosted gross profit while dampening transaction volume growth and revenue.
    • The strong increases in the Fintech segment’s income from operations and Adjusted EBITDA were driven by BOSS Money revenue growth, higher margins on BOSS Money transactions and improved operating leverage as the business continues to scale.
    • BOSS Money continued to expand to new destinations during 2Q25 (Venezuela and Eritrea) with Brazil expected to come online in 3Q25. BOSS Money also launched debit card payment capabilities at BOSS Money retailers across the U.S. and continued to build out its already extensive payout network in key destination markets.

    net2phone

    net2phone
    (Seats in thousands at end of period. $ in millions)
          2Q25       1Q25       2Q24       2Q25-2Q24 (% Δ, $)  
    Seats**     410       406       375       +9 %
                                     
    Revenue                                
    Subscription revenue   $ 21.0     $ 21.0     $ 19.3       +9 %
    Other revenue   $ 0.5     $ 0.6     $ 1.0       (54 )%
    Total Revenue   $ 21.5     $ 21.6     $ 20.4       +6 %
                                     
    Gross profit   $ 17.0     $ 17.1     $ 16.1       +6 %
    Gross profit margin     79.2 %     79.0 %     78.9 %     20 bps
    Technology & development   $ 2.8     $ 3.0     $ 2.6       +5 %
    SG&A   $ 13.0     $ 13.1     $ 13.1       (1 )%
    Income from operations   $ 1.1     $ 1.0     $ 0.4       +201 %
    Adjusted EBITDA   $ 2.9     $ 2.5     $ 1.8       +55 %
    CapEx   $ 1.8     $ 1.6     $ 1.4       +28 %
     

    net2phone Take-Aways:

    • The 9% year over year increase in total seats served was powered by continued expansion in key markets led by the U.S., Brazil, and Mexico. CCaaS seats served increased by 10% year-over year.
    • Subscription revenue increased by 9% year-over-year. The increase reflected net seat growth and increased subscription revenue per seat** in the U.S., offset by the negative FX impact of a strengthened U.S. dollar versus local currencies in net2phone’s key Latin American markets. On a constant currency basis, subscription revenue increased by 14% year over year.
    • Operating margin** increased to 5% from 2% in 2Q24, and Adjusted EBITDA margin** increased to 13% from 9% in 2Q24. Additional steady margin improvement remains a key strategic focus.
    • Following the quarter close, net2phone launched its AI agent, a scalable virtual assistant providing exceptional customer experiences across sales, support, and administrative tasks.

    Traditional Communications

    Traditional Communications
    ($ in millions)
          2Q25       1Q25       2Q24       2Q25-2Q24 (% Δ)  
    Revenue                                
    IDT Digital Payments   $ 101.6     $ 105.1     $ 99.7       +2 %
    BOSS Revolution   $ 53.3     $ 56.8     $ 66.7       (20 )%
    IDT Global   $ 51.3     $ 52.4     $ 48.7       +5 %
    Other   $ 5.9     $ 6.2     $ 7.5       (22 )%
    Total Revenue   $ 212.0     $ 220.5     $ 222.5       (5 )%
                                     
    Gross profit   $ 43.1     $ 41.3     $ 42.3       +2 %
    Gross profit margin     20.3 %     18.8 %     19.0 %     +130 bps
    Technology & development   $ 5.4     $ 5.5     $ 5.9       (9 )%
    SG&A   $ 19.4     $ 20.0     $ 21.4       (9 )%
    Income from operations   $ 18.1     $ 15.7     $ 14.6       +24 %
    Adjusted EBITDA   $ 20.2     $ 17.8     $ 17.0       +19 %
    CapEx   $ 1.2     $ 1.4     $ 1.4       (8 )%
                                     

    Take-Aways: 

    • IDT Global continues to mitigate the impacts of the ongoing industry-wide declines in paid-minute voice through a traffic mix shift to higher margin routes, new service offerings, and operational efficiencies.
    • For the third consecutive quarter, Traditional Communications’ income from operations and Adjusted EBITDA both increased sequentially. In 2Q25, the increases were driven by increasing gross profit contributions from each of the three major lines of business, as well as by continued efforts to streamline operations and remove costs.

    OTHER FINANCIAL RESULTS

    Consolidated results for all periods presented include corporate overhead. In 2Q25, Corporate G&A expense decreased to $3.0 million from $3.2 million in 2Q24.

    As of January 31, 2025, IDT held $171.1 million in cash, cash equivalents, debt securities, and current equity investments. Also at January 31, 2025, current assets totaled $462.1 million and current liabilities totaled $278.2 million. The Company had no outstanding debt at the quarter end.

    Net cash provided by operating activities decreased to $20.2 million in 2Q25 from $28.4 million in 2Q24. Exclusive of changes in customer funds deposits at IDT’s Fintech segment, net cash provided by operating activities decreased to $7.3 million in 2Q25 from $25.4 million in 2Q24. This decrease predominantly reflects the timing of payments made by IDT to cover anticipated BOSS Money disbursement prefunding.

    Capital expenditures increased to $4.8 million in 2Q25 from $4.6 million in 2Q24.

    IDT EARNINGS ANNOUNCEMENT INFORMATION

    This release is available for download in the “Investors & Media” section of the IDT Corporation website (https://www.idt.net/investors-and-media) and has been filed on a current report (Form 8-K) with the SEC.

    IDT will host an earnings conference call beginning at 5:30 PM Eastern today with management’s discussion of results followed by Q&A with investors. To listen to the call and participate in the Q&A, dial 1-888-506-0062 (toll-free from the US) or 1-973-528-0011 (international) and provide the following access code: 145736.

    A replay of the conference call will be available approximately three hours after the call concludes through March 20, 2025. To access the call replay, dial 1-877-481-4010 (toll-free from the US) or 1-919-882-2331 (international) and provide this replay passcode: 51975. The replay will also be accessible via streaming audio at the IDT investor relations website.

    NOTES

    *Adjusted EBITDA and Non-GAAP EPS are Non-GAAP financial measures intended to provide useful information that supplements IDT’s or the relevant segment’s results in accordance with GAAP. Please refer to the Reconciliation of Non-GAAP Financial Measures later in this release for an explanation of these terms and their respective reconciliations to the most directly comparable GAAP measures.

    **See ‘Explanation of Key Performance Metrics’ at the end of this release.

    ABOUT IDT CORPORATION

    IDT Corporation (NYSE: IDT) is a global provider of fintech and communications solutions through a portfolio of synergistic businesses: National Retail Solutions (NRS), through its point-of-sale (POS) platform, enables independent retailers to operate more effectively while providing advertisers and marketers with unprecedented reach into underserved consumer markets; BOSS Money facilitates innovative international remittances and fintech payments solutions; net2phone provides enterprises and organizations with intelligently integrated cloud communications and contact center services across channels and devices; IDT Digital Payments and the BOSS Revolution calling service make sharing prepaid products and services and speaking with friends and family around the world convenient and reliable; and, IDT Global and IDT Express enable communications services to provision and manage international voice and SMS messaging.

    All statements above that are not purely about historical facts, including, but not limited to, those in which we use the words “believe,” “anticipate,” “expect,” “plan,” “intend,” “estimate,” “target” and similar expressions, are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. While these forward-looking statements represent our current judgment of what may happen in the future, actual results may differ materially from the results expressed or implied by these statements due to numerous important factors. Our filings with the SEC provide detailed information on such statements and risks and should be consulted along with this release. To the extent permitted under applicable law, IDT assumes no obligation to update any forward-looking statements.

    CONTACT

    IDT Corporation Investor Relations
    Bill Ulrey
    william.ulrey@idt.net
    973-438-3838

    IDT CORPORATION
    CONSOLIDATED BALANCE SHEETS

        January 31,
    2025
        July 31,
    2024
     
        (Unaudited)        
        (in thousands, except per share data)  
    Assets            
    Current assets:                
    Cash and cash equivalents   $ 142,152     $ 164,557  
    Restricted cash and cash equivalents     105,554       90,899  
    Debt securities     23,852       23,438  
    Equity investments     5,091       5,009  
    Trade accounts receivable, net of allowance for credit losses of $7,295 at January 31, 2025 and $6,352 at July 31, 2024     45,127       42,215  
    Settlement assets, net of reserve of $1,804 at January 31, 2025 and $1,866 at July 31, 2024     41,779       22,186  
    Disbursement prefunding     57,676       30,736  
    Prepaid expenses     15,989       17,558  
    Other current assets     24,914       25,927  
    Total current assets     462,134       422,525  
    Property, plant, and equipment, net     38,380       38,652  
    Goodwill     26,149       26,288  
    Other intangibles, net     5,583       6,285  
    Equity investments     6,748       6,518  
    Operating lease right-of-use assets     2,498       3,273  
    Deferred income tax assets, net     22,333       35,008  
    Other assets     11,903       11,546  
    Total assets   $ 575,728     $ 550,095  
    Liabilities, redeemable noncontrolling interest, and equity                
    Current liabilities:                
    Trade accounts payable   $ 22,482     $ 24,773  
    Accrued expenses     89,472       103,176  
    Deferred revenue     28,384       30,364  
    Customer funds deposits     104,720       91,893  
    Settlement liabilities     16,975       12,764  
    Other current liabilities     16,157       16,374  
    Total current liabilities     278,190       279,344  
    Operating lease liabilities     1,349       1,533  
    Other liabilities     1,093       2,662  
                     
    Total liabilities     280,632       283,539  
    Commitments and contingencies                
    Redeemable noncontrolling interest     11,228       10,901  
    Equity:                
    IDT Corporation stockholders’ equity:                
    Preferred stock, $.01 par value; authorized shares—10,000; no shares issued            
    Class A common stock, $.01 par value; authorized shares—35,000; 3,272 shares issued and 1,574 shares outstanding at January 31, 2025 and July 31, 2024     33       33  
    Class B common stock, $.01 par value; authorized shares—200,000; 28,233 and 28,177 shares issued and 23,491 and 23,684 shares outstanding at January 31, 2025 and July 31, 2024, respectively     282       282  
    Additional paid-in capital     306,781       303,510  
    Treasury stock, at cost, consisting of 1,698 and 1,698 shares of Class A common stock and 4,742 and 4,493 shares of Class B common stock at January 31, 2025 and July 31, 2024, respectively     (137,475 )     (126,080 )
    Accumulated other comprehensive loss     (19,599 )     (18,142 )
    Retained earnings     121,573       86,580  
    Total IDT Corporation stockholders’ equity     271,595       246,183  
    Noncontrolling interests     12,273       9,472  
    Total equity     283,868       255,655  
    Total liabilities, redeemable noncontrolling interest, and equity   $ 575,728     $ 550,095  

    IDT CORPORATION
    CONSOLIDATED STATEMENTS OF INCOME
    (Unaudited)

        Three Months Ended
    January 31,
        Six Months Ended
    January 31,
     
        2025     2024     2025     2024  
        (in thousands, except per share data)  
           
    Revenues   $ 303,349     $ 296,098     $ 612,915     $ 597,302  
    Direct cost of revenues     191,239       199,171       393,178       406,382  
    Gross profit     112,110       96,927       219,737       190,920  
    Operating expenses (gain):                                
    Selling, general and administrative (i)     70,721       67,346       141,772       131,723  
    Technology and development (i)     12,612       12,925       25,372       25,335  
    Severance     233       345       410       869  
    Other operating expense (gain), net     227       294       227       (190 )
    Total operating expenses     83,793       80,910       167,781       157,737  
    Income from operations     28,317       16,017       51,956       33,183  
    Interest income, net     1,354       1,195       2,782       2,039  
    Other income (expense), net     207       2,534       (76 )     (3,053 )
    Income before income taxes     29,878       19,746       54,662       32,169  
    Provision for income taxes     (7,665 )     (3,992 )     (13,967 )     (7,939 )
    Net income     22,213       15,754       40,695       24,230  
    Net income attributable to noncontrolling interests     (1,944 )     (1,329 )     (3,178 )     (2,146 )
    Net income attributable to IDT Corporation   $ 20,269     $ 14,425     $ 37,517     $ 22,084  
    Earnings per share attributable to IDT Corporation common stockholders:                                
    Basic   $ 0.81     $ 0.57     $ 1.49     $ 0.88  
    Diluted   $ 0.80     $ 0.57     $ 1.48     $ 0.87  
    Weighted-average number of shares used in calculation of earnings per share:                                
    Basic     25,161       25,175       25,182       25,176  
    Diluted     25,324       25,317       25,343       25,297  
    (i) Stock-based compensation included in:                                
    Selling, general and administrative expense   $ 768     $ 2,357     $ 1,602     $ 2,998  
    Technology and development expense   $ 95     $ 130     $ 172     $ 260  


    IDT CORPORATION 

    CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited)

        Six Months Ended
    January 31,
     
        2025     2024  
        (in thousands)  
    Operating activities                
    Net income   $ 40,695     $ 24,230  
    Adjustments to reconcile net income to net cash provided by operating activities:                
    Depreciation and amortization     10,490       10,146  
    Deferred income taxes     12,674       5,787  
    Provision for credit losses, doubtful accounts receivable, and reserve for settlement assets     2,472       1,696  
    Stock-based compensation     1,774       3,258  
    Other     1,077       2,829  
    Changes in assets and liabilities:                
    Trade accounts receivable     (4,978 )     (7,040 )
    Settlement assets, disbursement prefunding, prepaid expenses, other current assets, and other assets     (46,244 )     9,966  
    Trade accounts payable, accrued expenses, settlement liabilities, other current liabilities, and other liabilities     (11,844 )     (6,200 )
    Customer funds deposits     15,701       15  
    Deferred revenue     (1,500 )     (1,381 )
    Net cash provided by operating activities     20,317       43,306  
    Investing activities                
    Capital expenditures     (10,100 )     (8,885 )
    Purchase of convertible preferred stock in equity method investment     (673 )     (1,009 )
    Purchases of debt securities and equity investments     (15,997 )     (19,357 )
    Proceeds from maturities and sales of debt securities and redemption of equity investments     16,751       31,231  
    Net cash (used in) provided by investing activities     (10,019 )     1,980  
    Financing activities                
    Dividends paid     (2,524 )      
    Distributions to noncontrolling interests     (50 )     (59 )
    Proceeds from borrowings under revolving credit facility     24,534       30,588  
    Repayment of borrowings under revolving credit facility     (24,534 )     (30,588 )
    Purchase of restricted shares of net2phone common stock           (3,558 )
    Proceeds from exercise of stock options           172  
    Repurchases of Class B common stock     (11,395 )     (3,170 )
    Net cash used in financing activities     (13,969 )     (6,615 )
    Effect of exchange rate changes on cash, cash equivalents, and restricted cash and cash equivalents     (4,079 )     (3,182 )
    Net (decrease) increase in cash, cash equivalents, and restricted cash and cash equivalents     (7,750 )     35,489  
    Cash, cash equivalents, and restricted cash and cash equivalents at beginning of period     255,456       198,823  
    Cash, cash equivalents, and restricted cash and cash equivalents at end of period   $ 247,706     $ 234,312  
    Supplemental Schedule of Non-Cash Financing Activities                
    Shares of the Company’s Class B common stock issued to an executive officer for bonus payment   $ 1,824     $  
    Value of the Company’s Class B common stock exchanged for National Retail Solutions shares   $     $ 6,254  


    *
    Reconciliation of Non-GAAP Financial Measures for the Second Quarter Fiscal 2025 and 2024

    In addition to disclosing financial results that are determined in accordance with generally accepted accounting principles in the United States of America (GAAP), IDT also disclosed for 2Q25, 1Q25, and 2Q24, Adjusted EBITDA, and for 2Q25 and 2Q24, non-GAAP earnings per diluted share (Non-GAAP EPS). Adjusted EBITDA and Non-GAAP EPS are non-GAAP financial measures intended to provide useful information that supplements IDT’s or the relevant segment’s results in accordance with GAAP. The following explains these terms and their respective reconciliations to the most directly comparable GAAP measures

    Generally, a non-GAAP measure is a numerical measure of a company’s performance, financial position, or cash flows that either excludes or includes amounts that are not normally excluded or included in the most directly comparable measure calculated and presented in accordance with GAAP.

    IDT’s measure of Non-GAAP EPS is calculated by dividing non-GAAP net income by the diluted weighted-average shares. IDT’s measure of non-GAAP net income starts with net income attributable to IDT in accordance with GAAP and adds severance expense, stock-based compensation, and other operating expenses, and deducts other operating gains. These additions and subtractions are non-cash and/or non-routine items in the relevant fiscal 2025 and fiscal 2024 periods.

    Management believes that IDT’s Adjusted EBITDA and Non-GAAP EPS are measures which provide useful information to both management and investors by excluding certain expenses and non-routine gains and losses that may not be indicative of IDT’s or the relevant segment’s core operating results. Management uses Adjusted EBITDA, among other measures, as a relevant indicator of core operational strengths in its financial and operational decision making. In addition, management uses Adjusted EBITDA and Non-GAAP EPS to evaluate operating performance in relation to IDT’s competitors. Disclosure of these financial measures may be useful to investors in evaluating performance and allows for greater transparency to the underlying supplemental information used by management in its financial and operational decision-making. In addition, IDT has historically reported similar financial measures and believes such measures are commonly used by readers of financial information in assessing performance, therefore the inclusion of comparative numbers provides consistency in financial reporting.

    Management refers to Adjusted EBITDA, as well as the GAAP measures income (loss) from operations and net income, on a segment and/or consolidated level to facilitate internal and external comparisons to the segments’ and IDT’s historical operating results, in making operating decisions, for budget and planning purposes, and to form the basis upon which management is compensated.

    While depreciation and amortization are considered operating costs under GAAP, these expenses primarily represent the non-cash current period allocation of costs associated with long-lived assets acquired or capitalized in prior periods. IDT’s Adjusted EBITDA, which is exclusive of depreciation and amortization, is a useful indicator of its current performance.

    Severance expense is excluded from the calculation of Adjusted EBITDA and Non-GAAP EPS. Severance expense is reflective of decisions made by management in each period regarding the aspects of IDT’s and its segments’ businesses to be focused on in light of changing market realities and other factors. While there may be similar charges in other periods, the nature and magnitude of these charges can fluctuate markedly and do not reflect the performance of IDT’s core and continuing operations.

    Other operating (expense) gain, net, which is a component of income (loss) from operations, is excluded from the calculation of Adjusted EBITDA and Non-GAAP EPS. Other operating (expense) gain, net includes, among other items, legal fees net of insurance claims related to Straight Path Communications Inc.’s stockholders’ class action and gain from the write-off of a contingent consideration liability. From time-to-time, IDT may have gains or incur costs related to non-routine legal, tax, and other matters, however, these various items generally do not occur each quarter. IDT believes the gain and losses from these non-routine matters are not components of IDT’s or the relevant segment’s core operating results.

    Stock-based compensation recognized by IDT and other companies may not be comparable because of the variety of types of awards as well as the various valuation methodologies and subjective assumptions that are permitted under GAAP. Stock-based compensation is excluded from IDT’s calculation of Non-GAAP EPS because management believes this allows investors to make more meaningful comparisons of the operating results per share of IDT’s core business with the results of other companies. However, stock-based compensation will continue to be a significant expense for IDT for the foreseeable future and an important part of employees’ compensation that impacts their performance.

    Adjusted EBITDA and Non-GAAP EPS should be considered in addition to, not as a substitute for, or superior to, income (loss) from operations, cash flow from operating activities, net income, basic and diluted earnings per share or other measures of liquidity and financial performance prepared in accordance with GAAP. In addition, IDT’s measurements of Adjusted EBITDA and Non-GAAP EPS may not be comparable to similarly titled measures reported by other companies.

    Following are reconciliations of Adjusted EBITDA and Non-GAAP EPS to the most directly comparable GAAP measure, which are, (a) for Adjusted EBITDA, income (loss) from operations for IDT’s reportable segments and net income for IDT on a consolidated basis, and (b) for Non-GAAP EPS, diluted earnings per share.

    IDT Corporation
    Reconciliation of Net Income to Adjusted EBITDA
    (unaudited) in millions. Figures may not foot or cross-foot due to rounding to millions

        Total IDT Corporation     Traditional Communica-tions     net2phone     NRS     Fintech     Corporate  
    Three Months Ended January 31, 2025
    (2Q25)
                                                   
    Net income attributable to IDT Corporation   $ 20.3                                          
    Adjustments:                                                
    Net income attributable to noncontrolling interests     1.9                                          
    Net income     22.2                                          
    Provision for income taxes     7.7                                          
    Income before income taxes     29.9                                          
     Interest income, net     (1.4 )                                        
     Other income, net     (0.2 )                                        
    Income (loss) from operations     28.3     $ 18.1     $ 1.1     $ 9.1     $ 3.1     $ (3.1 )
    Depreciation and amortization     5.2       1.9       1.6       1.0       0.8        
    Other operating expense, net     0.2             0.2                    
    Severance     0.2       0.2                          
    Adjusted EBITDA   $ 34.0     $ 20.2     $ 2.9     $ 10.1     $ 3.9     $ (3.1 )


    IDT Corporation

    Reconciliation of Net Income to Adjusted EBITDA
    (unaudited) in millions. Figures may not foot or cross-foot due to rounding to millions

        Total IDT Corporation     Traditional Communica-tions     net2phone     NRS     Fintech     Corporate  
    Three Months Ended October 31, 2024
    (1Q25)
                                                   
    Net income attributable to IDT Corporation   $ 17.2                                          
    Adjustments:                                                
    Net income attributable to noncontrolling interests     1.2                                          
    Net income     18.5                                          
    Provision for income taxes     6.3                                          
    Income before income taxes     24.8                                          
     Interest income, net     (1.4 )                                        
     Other expense, net     0.3                                          
    Income (loss) from operations     23.6     $ 15.7     $ 1.0     $ 6.6     $ 3.2     $ (2.9 )
    Depreciation and amortization     5.2       2.0       1.6       1.0       0.7        
    Severance     0.2       0.2                          
    Adjusted EBITDA   $ 29.1     $ 17.8     $ 2.5     $ 7.6     $ 4.0     $ (2.9 )
        Total IDT Corporation     Traditional Communica-tions     net2phone     NRS     Fintech     Corporate  
    Three Months Ended January 31, 2024
    (2Q24)
                                                   
    Net income attributable to IDT Corporation   $ 14.4                                          
    Adjustments:                                                
    Net income attributable to noncontrolling interests     1.3                                          
    Net income     15.8                                          
    Provision for income taxes     4.0                                          
    Income before income taxes     19.7                                          
     Interest income, net     (1.2 )                                        
     Other income, net     (2.5 )                                        
    Income (loss) from operations     16.0     $ 14.6     $ 0.4     $ 5.3     $ (0.7 )   $ (3.6 )
    Depreciation and amortization     5.1       2.0       1.6       0.8       0.7        
    Severance     0.3       0.3                          
    Other operating expense (gain), net     0.3             (0.1 )                 0.4  
    Adjusted EBITDA   $ 21.8     $ 17.0     $ 1.8     $ 6.1     $     $ (3.2 )

    IDT Corporation
    Reconciliation of Earnings per share to Non-GAAP EPS
    (unaudited) in millions, except per share data. Figures may not foot due to rounding to millions.

          2Q25       2Q24  
                     
    Net income attributable to IDT Corporation   $ 20.3     $ 14.4  
    Adjustments (add) subtract:                
    Stock-based compensation     (0.9 )     (2.5 )
    Severance expense     (0.2 )     (0.3 )
    Other operating expense, net     (0.2 )     (0.3 )
    Total adjustments     (1.3 )     (3.1 )
    Income tax effect of total adjustments     (0.3 )     (0.6 )
          1.0       2.5  
    Non-GAAP net income   $ 21.3     $ 16.9  
                     
    Earnings per share:                
    Basic   $ 0.81     $ 0.57  
    Total adjustments     0.03       0.10  
    Non-GAAP – basic   $ 0.84     $ 0.67  
                     
    Weighted-average number of shares used in calculation of basic earnings per share     25.2       25.2  
                     
    Diluted   $ 0.80     $ 0.57  
    Total adjustments     0.04       0.10  
    Non-GAAP – diluted   $ 0.84     $ 0.67  
                     
    Weighted-average number of shares used in calculation of diluted earnings per share     25.3       25.3  


    *
    *Explanation of Key Performance Metrics

    NRS’ recurring revenue is calculated by subtracting NRS’ revenue from POS terminal sales from its revenue in accordance with GAAP. NRS’ Monthly Average Recurring Revenue per Terminal is calculated by dividing NRS’ recurring revenue by the average number of active POS terminals during the period. The average number of active POS terminals is calculated by adding the beginning and ending number of active POS terminals during the period and dividing by two. NRS’ recurring revenue divided by the average number of active POS terminals is divided by three when the period is a fiscal quarter. Recurring revenue and Monthly Average Recurring Revenue per Terminal are useful for comparisons of NRS’ revenue and revenue per customer to prior periods and to competitors and others in the market, as well as for forecasting future revenue from the customer base.

    The NRS ‘Rule of 40’ score is a metric used to evaluate the performance of SaaS providers. It postulates that a SaaS company’s growth rate when added to its free cash flow rate should equal or exceed 40 percent. For NRS, the ‘Rule of 40’ result for 2Q25 is computed by adding the growth rate of NRS’ recurring revenue for 2Q25 compared to 2Q24 to NRS’ Adjusted EBITDA less CapEx as a percentage of total NRS revenue for the twelve months ended January 31, 2025. The ‘Rule of 40’ is a common SaaS industry metric to assess a company’s balance between growth and profitability. A total above 40 is thought to indicate a healthy combination of expansion and financial stability, making it a useful tool for investors and management to gauge the potential for long-term success and make informed decisions about resource allocation and business strategy.

    net2phone’s subscription revenue is calculated by subtracting net2phone’s equipment revenue and revenue generated by a legacy SIP trunking offering in Brazil from its revenue in accordance with GAAP. net2phone’s cloud communications and contact center offerings are priced on a per-seat basis, with customers paying based on the number of users in their organization. The number of seats served and subscription revenue trends and comparisons between periods are used in the analysis of net2phone’s revenues and direct cost of revenues and are strong indications of the top-line growth and performance of the business.

    net2phone’s subscription revenue per seat is calculated by dividing net2phone’s subscription revenue, as defined in the preceding paragraph, by the average number of seats served during the period. The average number of seats served is calculated by adding the beginning and ending number of seats served and dividing by two. Subscription revenue per seat is the amount of revenue generated by each seat sold during the period. It provides a basis for pricing seat-based services, as well as for comparing performance in past periods and projecting future revenue, and for comparing the value of each seat served to competitors.

    net2phone’s operating margin is calculated by dividing GAAP income from operations by GAAP revenue for the period indicated. Operating margin measures the percentage that each dollar of revenue contributes to profitability. Operating margin is useful for evaluating current period profitability relative to sales, for comparisons to prior period performance, for forecasting future income from operations levels based on projected levels of sales, and for comparing net2phone’s relative profitability to its competitors and peers.

    net2phone’s Adjusted EBITDA margin is calculated by dividing net2phone’s Adjusted EBITDA, a Non-GAAP measure, by net2phone’s GAAP revenue for the comparable quarter or period. Adjusted EBITDA margin measures the percentage that each dollar of revenue contributes to profitability before interest, taxes, depreciation and amortization, and other adjustments as described in the Reconciliation of Non-GAAP Financial Measures. net2phone’s Adjusted EBITDA margin is useful for evaluating current period profitability relative to sales, for comparisons to prior period performance, for forecasting future Adjusted EBITDA levels based on projected levels of sales, and for comparing net2phone’s relative profitability to its competitors and peers.

    BOSS Money’s Average Revenue per Transaction is calculated by dividing BOSS Money’s revenue in accordance with GAAP by the number of transactions during the period. Average Revenue per Transaction is useful for comparisons of BOSS Money’s revenue per transaction to prior periods and to competitors and others in the market, as well as for forecasting future revenue based on transaction trends.

    # # #

    The MIL Network

  • MIL-OSI Russia: Transcript of COM Regular Press Briefing, March 6, 2025

    Source: IMF – News in Russian

    March 6, 2025

    SPEAKER:  Ms. Julie Kozack, Director of the Communications Department, IMF

     *  *  *  *  *

    MS. KOZACK: Good morning, everyone, and welcome to this IMF press briefing. It is very good to see you all, both those of you who are here in person and, of course, our colleagues online as well.

    I am Julie Kozak, Director of the Communications Department. As usual, this briefing is embargoed until 11 a.m. Eastern Time in the U.S. I will start with a short announcement and then take your questions in person on Webex and via the Press Center. 

    The 2025 Spring Meetings of the IMF and World Bank Group will take place from Monday, April 21 through Saturday, April 26. Press registration to attend the spring meetings in person in Washington D.C. is now open and you can register through www.IMFconnect.org. 

    And with that, I will now open the floor for your questions. For those connecting virtually, please turn on both your camera and microphone when speaking. And with that, over to you. 

    QUESTIONER: If the Congress does not approve the future agreement, as it is established by the local law, does the IMF give the money to Argentina? 

    MS. KOZACK: Okay, so that is a question on Argentina. Any other questions on Argentina? I do not see any hands up in the room. Let us go online. QUESTIONER: Do you think we are already in the final stage? And what remains to announce the Staff Agreement with the IMF?

    QUESTIONER: Good morning. I was wondering about also there have been versions of a new loan up to $20 billion and the first deployment of $8 billion this year. Can you confirm that, or can you give us an insight into the fresh funds that could be coming in the new agreement? And also, when can we expect a signing of the letter of intent? 

    QUESTIONER: So, my question is about the Congress. President Milei confirmed that the staff-level agreement must be approved by the Parliament as indicated by the Argentine law. So, is that also a requirement from the IMF itself or could the President sign a decree avoiding the current law that requires the staff-level agreement to be approved by Parliament. 

    QUESTIONER: I want to ask about the scope of the potential agreement with Argentina. There are reports out saying it could be as high, or there is an expectation it could be as high as $20 billion.

    QUESTIONER: I think a few people have already asked, but when [do] you expect to reach a staff-level agreement, whether, as the Argentine government has said, it is only the final numbers that need to be agreed and not other technical aspects? And whether the IMF requires that the entirety of the SLA be reviewed by Congress for approval or if whether a general outline produced by the government will be enough? 

    MS. KOZACK: Okay, very good. So, with that, let me go ahead and talk about Argentina. So, first, I just want to start by saying, as I think many of you know, both the Managing Director and the First Deputy Managing Director recently met with the Argentine authorities. And as they recently emphasized, we are continuing to make good progress toward a program, and we are working constructively with the Argentine authorities in this regard. The authorities’ stabilization and growth plan is delivering significant results.

    It has made notable strides in reducing inflation, stabilizing the economy, and fostering a return to growth in the country, and poverty is finally beginning to decline in Argentina. To sustain these early gains, there is a shared understanding about the need to continue to adopt a consistent set of fiscal, monetary and exchange rate policies, while very importantly, advancing growth enhancing reforms. And the new program would build on the progress achieved so far while also addressing Argentina’s remaining challenges. 

    Now, with respect to some of the questions regarding Congressional approval, we do take note of President Milei’s commitment to seek congressional support for a new IMF supported program. As we have often said in the past, strong ownership and broad support are key to the program’s success, 

    Here, I want to emphasize, though, that securing congressional support is a decision of the authorities as legislated in Argentine domestic law. And at the same time, of course, as I just noted, broad political and social support can enhance program implementation. Questions regarding the specific process on achieving or seeking congressional support should be addressed really to the Argentine authorities because it is a matter of domestic law. 

    From our side, as I noted, the negotiations are continuing in a constructive manner. In terms of the process from the IMF side. Once the negotiations are completed, as with any IMF program or proposed program, the final arrangement, the documents, will require approval of the IMF’s Executive Board. And we will provide further updates as we have them. 

    With respect to some of the questions about the details of the negotiations, the potential size of the program. All I can say right now is this is still under discussion as part of the ongoing and constructive dialogue that we are having with the authorities. And we will provide an update when we have more information that we can share with you. 

    QUESTIONER: On Lebanon, so following recent reports that the Lebanese government is in discussions with IMF over a potential deal on its financial default in public debt. I just want to see if the IMF can confirm these reports. If so, what does it look like? Are there any contingencies to this? And will there be an IMF mission visiting Lebanon? Thank you. 

    MS. KOZACK: So, what I can share on Lebanon is that an IMF team will visit Lebanon very soon, March 10th to 14th. This mission is aimed at, of course, meeting the new authorities, discussing Lebanon’s recent economic developments, its reconstruction needs, and the authorities’ economic priorities in the near-term. This is a fact-finding mission that will take place. But beyond this fact-finding mission, as we look ahead, future next steps could include helping the authorities to formulate a comprehensive economic reform program.

    Our staff continues to be closely engaged with the authorities. We are providing policy advice and capacity development to help the authorities’ efforts to rebuild Lebanon’s economy and institutions in coordination with other international partners. And that is what I have for now on Lebanon. 

    QUESTIONER: I wanted to ask you about what is happening in the United States. The trade wars have begun, and we are seeing some impact already, both in terms of market reaction and a lot of volatility in the markets, ups, and downs. We are also seeing some interesting developments in terms of bond markets and yields; it is going to increase the cost of borrowing. So, I wanted to ask you if you, at this point, I know we’ve asked this question before, but I wonder if you’ve got an additional assessment, as we’re now seeing some of these policies that had been promised taking effect, and whether you can say now whether you’re expecting an impact on the global economy and also on the U.S. economy and the affected economies that have been targeted thus far — China, Canada, Mexico. 

    QUESTIONER: As a follow up to [that] question, does the IMF consider that the ongoing developments of the U.S. tariffs and trade wars would push other nations to seek more trade relations and more alliances with other economic organizations and trade organizations such as BRICS, for example, or others? And broadly speaking, what is the IMF assessment of the global fragmentation that is going on right now? Do you see that it is slowing down or opposite it is moving faster, taking into account the latest developments in the United States?

    QUESTIONER: I would like to focus on the development of 10 years of U.S. bond yield movement. The 10-year bond yield now decreased, dropping substantially. And what does it mean? What is the implication of the movement? Does it represent some U.S. recession or U.S. economy? 

    QUESTIONER: With the tariffs actually now in place, has the IMF undertook a study to determine the potential impact on small island states that are heavily dependent on flows and goods and commodities coming out of the United States, more specifically, those countries within the Caribbean region who are very much dependent and could face significant inflationary pressures based on these tariffs?

    MS. KOZACK: So, first I want to just step back a little bit to recognize that we have seen now several new and significant developments over the past few days. The U.S. has imposed tariffs on Canada and Mexico as well as additional tariffs on China. Canada and China have, in response, announced tariffs on some U.S. goods and other measures. And Mexico has indicated that it will provide more details in the coming days.

    And as we have said before, you know, while assessing the full impact of tariffs on economic activity and inflation will depend on many factors, we do expect to provide an analysis of this, certainly at the global level and for the most affected countries at the time of our World Economic Outlook update in April. And of course we will also cover this issue, I imagine, in some of the regional updates where relevant. And I want to also emphasize that as part of our bilateral surveillance with countries, the individual Article IV reports this topic will also be covered to the extent that the countries are affected. 

    What I can say today is that if sustained the impact of the U.S. tariffs on Canada and Mexico can be expected to have a significant adverse economic impact on those countries given their very strong integration and exposure to the U.S. market. 

    Now, more broadly, there were some questions about financial market movements. So let me also just step back for a moment on some of these, and here I want to refer to some remarks that our Managing Director has been making recently. As she’s been saying, we are now in the midst of significant transformations, and these include the rapid advance of AI to changing patterns of capital flows and trade. She has also been mentioning that trade is no longer the engine of global growth that it used to be. 

    For example, during the period of 2000 to 2019, global trade growth reached nearly 6 percent on an annual basis, whereas over the more recent period of 2022 to 2024, global trade is growing closer to 3 percent. So global trade growth has been on a downward — has declined. And of course, it is in this more global context that governments are recalibrating their approaches and adjusting policies. 

    I also want to recognize, of course, that we have seen increased volatility in financial markets. We see that in indicators such as the VIX. We also have seen indicators of global uncertainty showing an increase. And what will be critical to assess what the economic impact of this will be — will be whether these trends are short-lived or whether they are sustained. Generally speaking, our research shows that both historically and across countries, sustained periods of elevated uncertainty can be associated with both households and firms holding back on consumption and investment decisions. And as I said, we will be providing a comprehensive analysis of our views on the global economy and individual economies as part of the World Economic Outlook that will be released in April. 

    On the specific question on U.S. bond yields, we do recognize of course, that U.S. bond yields have moved lower since the beginning of the year. And it does seem that on that basis markets may be reappraising or reassessing their views, particularly on the outlook for monetary policy. I will stop there and move on.

    QUESTIONER: When is the IMF Board expected to review and approve the next disbursement for Ukraine? Are there any remaining conditions or procedural steps that Ukraine must fulfill before approval? And the Ukrainian government is engaging in debt restructuring efforts with its creditors. How does the IMF assess Ukraine’s debt sustainability and what role does this play in bord’s decision making process regarding future disbursement announcements?

    QUESTIONER: So, to follow up on previous question. In February, you stated, that Ukraine would have access to about U.S. $900 million for the next review. Now we are speaking about $400 million. So, why the IMF has made a decision to adjust to the total sum of disbursement that will be provided to Ukraine?

    QUESTIONER: And do you think that it can impact financial stability of Ukrainian economy or there is no risk for them? 

    QUESTIONER: How do you expect the freezing of the U.S. aid for Ukraine might impact the program you have already on course right now? And how does this affect the global plan that had been made like a year ago or two years ago now? 

    QUESTIONER: I just want to follow up the last question about the impact — what the impact Trump administration is doing. Does this impact the IMF projections on Ukraine this and next year? 

    QUESTIONER: An adjacent question, maybe related to the prospect for ending the war. And, you know, we have seen economic developments in Russia continue to percolate along even though the war has been going on and there have been sanctions. Have you started to look at what the end of the war could mean for both the Russian and Ukrainian economies in terms of, you know, perhaps, you know, assuming that there would be an end of sanctions once there was a cessation of hostilities, whether that would give a boost to the Russian economy, maybe the European economy in general could lower costs, things like that? So just kind of walk us through what you are seeing there. 

    MS. KOZACK: Okay, let me go ahead on Ukraine. So, just to bring everyone up to speed. So, on February 28th, the IMF staff, and the Ukrainian authorities reached a staff-level agreement on the Seventh Review of the four-year EFF arrangement. This is subject to approval of the IMF’s Executive Board. Ukraine is expected to draw, as noted, about U.S. $400 million, and that would bring total disbursements under the program to U.S. $10.1 billion.

    I just want to note that program performance in Ukraine remains strong. All of the end December quantitative performance criteria were met, and understandings were reached between the Ukrainian authorities and IMF staff on a set of policies and reforms to sustain macroeconomic stability. The structural reform agenda in Ukraine is continuing to make good progress, and there are strong commitments from the Ukrainian authorities in a number of other areas. 

    Now on some of the specific questions, first on the matter of the disbursement, what I can say there is that it is not unusual over the life of a program for the pattern of disbursements to shift based on evolving balance of payments needs. And that is what has happened in this case. It is also important to emphasize that the overall size of the program, which is $15.6 billion, remains unchanged. And so that shift in disbursement pattern reflects the shifting balance of payments pattern for Ukraine. 

    So, on the issue the debt restructuring and debt process, what I can say there is that restoring debt sustainability in Ukraine hinges on continued implementation of the authority’s debt restructuring strategy, where completing the treatment of the GDP warrants remains important. And it also hinges very much on continuation of the revenue-based fiscal adjustment strategy, which is supported under the program. And as you know, Ukraine’s debt has been assessed in the last review to be sustainable on a forward-looking basis contingent on these two areas that I just mentioned. And of course, there will be a revised debt sustainability assessment as part of the ongoing review. 

    With respect to the other question, what I can say here is that the Ukrainian economy, you know, has shown continued resilience despite the challenges arising from the war. At the time of the Seventh Review, the last review, we estimated GDP growth to be 3.5 percent in 2024. But we did expect it at that time to moderate to 2 to 3 percent in 2025. And that was reflecting some headwinds from labor constraints and damage to energy infrastructure, given the ongoing war. It is the case in general for Ukraine, and we have been saying this throughout the life of the program, that the outlook remains exceptionally uncertain, especially as the war continues and it is taking a heavy toll on Ukraine’s people, economy, and infrastructure. 

    On the more recent developments that you were referring to, we are following these developments very closely. It is premature at the moment to comment on them, but we are following them, and we will make an assessment in due course.

    And on your question, the answer is essentially the same. We are following the developments very closely, and we will, as developments evolve, be undertaking obviously an assessment of what a peace deal could potentially look like and what would be the implications for all of the involved parties. 

    QUESTIONER: Julie, can you on the basis of having studied previous conflicts ending, can you just give us divorced from Ukraine and Russia, but just can you give us an indication of what generally happens when a conflict ends, what that means? And is there anything that we can draw on, at least just from history? 

    MS. KOZACK: So, I do not have, you know, off the top of my head a piece of research that I can kind of point to in terms of the interest analysis. What I certainly can say is that we always, for all of our member countries, hope for peace and stability in all of our member countries. And I think at that moment this is really what I can say. But I take note of the importance of your point, and we will, I have no doubt, in due course be conducting all of the necessary analysis as events unfold.

    QUESTIONER: I have two questions mainly on Egypt. as Egypt is scheduled for 10th of March for the discussion of the Fourth Review of the EFF for the country, what are we expecting from this meeting? And if you please, could you update us on the RSF facility worth $1.2 billion for the country? Thank you so much. 

    QUESTIONER: I would second exactly those questions. And just to add to that, I know it says on the IMF Executive Board calendar that the Board will be discussing waivers of non-observance for some of the performance criteria related to Egypt’s loan program and modifications for others. Are you able to tell us any more about exactly which criteria the Board will be looking at? And on the RSF, if you are able to give us any more detail about the prospective value of that. I know it has been put at $1 billion before. A related question, not on Egypt but on Gaza. I would be interested to know if the IMF has begun to think, whether internally or with partners in the region, about what its potential role would be in funding a reconstruction plan for Gaza given the $50 billion, upwards of $50 billion, cost of any reconstruction. 

    QUESTIONER: I may repeat questions about the value of current tranche to be given to Egypt and the timing of when the central bank of Egypt to receive it. And also, I have another question about the program of state assets selling. Will we witness some steps, new steps in that program? Could it be connected with the decision to be taken in March?

    MS. KOZACK: And any other questions on Egypt? All right. And then I have a question that came in through the Press Center. I am going to read it out loud – ’Does the IMF’s approval of the fourth tranche to Egypt require Egypt to implement some reforms? And when will the Fifth Review of the loan be held? What is the estimated size of the loan allocated to Egypt, and here will it be dispersed in installments or in one lump sum?’

    On Egypt – on March 10th, our Executive Board will be discussing Egypt’s Article IV consultation and the fourth review under the EFF. It will also be discussing at the same time Egypt’s request for an RSF, the Resilience and Sustainability Facility. Subject to completion by the Executive Board, the authorities, would have access to $1.2 billion under the EFF. So, under the EFF program. And then in addition, subject again to approval by our Executive Board, the size of the RSF would be about U.S. $1.3 billion. Regarding the RSF, like all of the IMF programs, the RSF is also delivered in tranches. So, it is not one lump sum up front. It is a phased program where tranches are dispersed on the basis of conditions being met. 

    And with respect to some of the other questions, what I can say today is just that we will provide, of course, more details following the Board meeting and on the question of waivers and modifications and also the questions on the state-owned enterprises. And again, the board meeting will be on March 10th. 

    QUESTIONER: I have two questions related to Japan. Firstly, amid rising uncertainty due to President Trump’s tariff policy, I would like to ask you — ask your thoughts on whether the Bank of Japan, currently in a rate hike phase, should continue raising rate or take more cautious approach in assessing the impact. And secondly, President Trump recently made remarks suggesting that Japan and China are engaging in currency devaluation. I would appreciate it if you share your views on Japan’s foreign exchange policy. Thank you. 

    MS. KOZACK: So, maybe just stepping back to give a bit of context on Japan. What I can say on Japan is that on the growth side, growth this year is expected to strengthen, and we also expect inflation to converge to the Bank of Japan’s 2 percent target by the end of 2025. 

    In 2024, growth in Japan slowed due to some temporary supply disruptions. But since then, we have seen a strengthening in growth driven by domestic demand, particular — particularly private consumption in Japan and rising wages. And we expect this to continue into 2025, where we project growth, at the time of the January WEO, we projected growth at 1.1 percent for Japan in 2025. And of course, just to say that we will be updating this projection as part of the April forecast. 

    Looking at inflation — headline and core inflation, as I said, are expected to decline gradually toward the 2 percent target. We have been supportive of the Bank of Japan’s recent monetary policy decisions. We believe that these decisions will help anchor inflation expectations at the 2 percent target but also given balance risks around inflation, our assessment has been that further hikes in the policy interest rate should continue to be data dependent, and they should proceed at a gradual pace over time. 

     With respect to the question on the exchange rate, what I can say there is that the Japanese authorities have affirmed their commitment to a flexible exchange rate regime. Japan’s flexible exchange rate regime has helped the country or has helped the economy absorb the impact of shocks. And it also supports the focus of monetary policy on price stability. And at the same time, what I can say is that that flexible exchange rate regime is helping maintain an external position that is in line with fundamentals. 

    QUESTIONER: Could you give us an update on the negotiations for Ethiopia, please? And on El Salvador, the deal that you agreed on in December and was approved a couple of weeks ago involves the government not increasing its exposure to Bitcoin. Government has continued to buy through the Office of Bitcoin, which is linked to the presidential palace. But yesterday the Fund said that these purchases do not increase the government’s exposure to Bitcoin. Could you please explain that? 

    QUESTIONER: Also on El Salvador, obviously he was saying to not to not buy it as a government reserve. I just wanted to, I guess, contrast to the U.S. I mean, President Trump has very much announced a digital assets reserve, including Ethereum and other coins, as well as Bitcoin. And I wondered if the IMF could – can you comment on the U.S. program or how would you distinguish the two countries and why the IMF might be taking a different approach?

    MS. KOZACK: All right, let me go ahead and take the El Salvador question in Ethiopia and then we will go back. I see many hands up online. 

    So, on El Salvador, as you know, last week our Executive Board approved a 40-month Extended Fund Facility, EFF, for U.S. $1.4 billion and with an immediate disbursement of $113 million. The program is expected to catalyze financial and technical support from other IFIs. And this will lead to a combined total over the program period of about U.S. $3.5 billion of support for El Salvador. The goals of the program are to restore fiscal sustainability, rebuild external and financial buffers, strengthen governance and transparency, and ultimately create the conditions for stronger and more resilient growth. 

    Regarding Bitcoin, in particular, the program aims to address the risks associated with the Bitcoin project to protect consumers and investors, as well as to limit potential fiscal costs. So, to start, there were recent legal reforms that have made the acceptance of Bitcoin voluntary, and taxes can be paid only in U.S. dollars. Under the program, the government has committed to not accumulate for their Bitcoins at the level of the overall public sector. 

    Regarding the recent increase in Bitcoin holding by the Strategic Bitcoin Reserve Fund, the authorities have confirmed that these are consistent with the agreed program conditionality, and we do remain engaged with the authorities on this important issue. 

    And then, to your question. We are obviously closely monitoring President Trump’s announcement in this area. The Presidential Working Group on Digital Asset Markets has not yet completed its work. So, we do not yet have details on the implementation of this proposal, but we will come back in due course. 

    And then turning to the question on Ethiopia. So just an update on Ethiopia. On January 17th, the IMF Executive Board completed the Second Review of the arrangement, the ECF arrangement for Ethiopia, and that allowed for a drawdown of about U.S. $245 million. The ECF arrangement supports the authorities’ reforms to address macroeconomic imbalances, restore external debt sustainability, and lay the foundation for strong private sector-led growth. 

    I can also just remind you that the Managing Director recently traveled to Ethiopia. She was there February 8th and 9th. She met with Prime Minister Abiy and his team to take stock of the economic reforms and the progress that is being made in the country. And she also took the opportunity to meet with other stakeholders, including representatives of the private sector. 

    QUESTIONER: My question is on USAID. USAID has now totally stopped its business. And to what extent do you see the impact, especially on lower income countries at the global level? And should you consider using your facility to support them just in case? 

    MS. KOZACK: So, on this issue, we are obviously again paying close attention to developments, and we are working with our country authorities. But it is, at the same time, it is too early to really say what the precise impact may be. And so, we will come back in due course. For now, we are monitoring.

    QUESTIONER: I have a question on Senegal. Following a recent audit of the country’s debt, it was found to be 99.7 percent of GDP. That was in 2023. And I know that IMF has said before that Senegal debt was stable even though it was high. I am wondering if that is the figure that you still consider sustainable. And then also with regards on talks of a new IMF program, I am wondering if Senegal could be asked to reimburse previous dispersion under this reporting period. 

    QUESTIONER: Still on Senegal, as soon as the report from the Audit Supreme Court was released, we saw rating agency downgrading Senegal sovereign notes. So, the country is now stuck. It cannot raise funds from the internal market, and it cannot go in a very comfortable position in international markets while they still face a lot of challenges. So, I am wondering why the IMF is working fast and bold to find a solution for Senegal in the midterm or even long-term. Is there any situation where IMF can provide a short-term, I mean, short-term relief to the country so they can go through these hard moments in a very soft way? 

    MS. KOZACK: So, on Senegal, what I can say is that we are actively engaged in discussions with the authorities with respect to the Court of Auditors Report and the associated misreporting under the IMF program. The Court of Auditors Report was released on February 12th. The Court confirmed that the fiscal deficit and debt were under reported during the period of 2019 to 2023.

    So, what we are doing is working closely with the authorities in their efforts to preserve fiscal and debt sustainability. We are working actively to advance on our discussions following the publication of the report, and we are also working with the authorities on measures to correct and remedy the misreporting that took place. What I can add is that the resolution of the misreporting in line with IMF policy is a precondition for discussions of any future financial assistance by the IMF.

    And with respect to potential consequences, I can say that the IMF does not impose any sanctions for misreporting cases. It is up to our Executive Board to decide on the next steps. And those next steps, you know, could include a waiver. And that waiver could — it could also include; it could be a waiver without a request for reimbursement. So, all of those discussions on Senegal are now underway. We are actively, very much working with the authorities, supporting as much as possible their efforts on fiscal and debt sustainability, as I said. And we will come back and report back when we have more information on Senegal. 

    I have a question here online that I am going to read. It came from the Press Center on Thailand. And the question is – ‘The upcoming World Bank IMF Annual Meetings in Thailand will bring significant attention to Southeast Asia’s economic outlook. From the from IMF’s perspective, how can Thailand best leverage this opportunity to address regional challenges such as digital transformation, climate change adaptation, and income inequality? And what collaborative initiatives between the IMF and Thailand are being planned to ensure lasting economic benefits for the country beyond the meetings themselves?’ 

    So, on this very important question, a very nice question, actually, what I can say is that we are very much looking forward to having Thailand host the annual meetings in 2026. So, this will be in October of 2026. Every three years, we do our Annual Meetings abroad. 2026, October will be Thailand. So, mark your calendar. I can also add that preparations are underway. The Fund, the IMF staff are working hand in hand with the Thai authorities to make this a highly successful event and showcasing the significant strides that Thailand has made since it last hosted our annual meetings in 1991. So, it will be 25 years when we get to 2026. 

    The Managing Director recently met with Bank of Thailand’s Governor Sethaput at the AlUla Conference in Saudi Arabia. They discussed the preparations for the annual meetings and agreed that it would be a very good opportunity to showcase on the global stage the region’s dynamism and economic activities. And of course, the meetings will also allow Thailand to position itself as a key contributor to the international economic dialogue and to gather views and experiences from countries throughout the membership of the IMF and the World Bank. 

    This ongoing close relationship leading up to and beyond, we hope, the Annual Meetings will focus on prioritizing reform reforms that are necessary to ensure the lasting benefits for Thailand and building the relationships and the shared policy, dialogue and experiences we hope will deepen our engagement, our excellent engagement and relationship with Thailand and will be sustained even past the Annual Meetings in 2026.

    QUESTIONER: My question is, what are the IMF growth projections for Jordan amid the ongoing impact of the Gaza war? And when will the Third Review under the EFF begin? And are any adjustments expected to the war’s region effect on Jordan’s economy? 

    MS. KOZACK: So, what I can share on Jordan is that the Executive Board on December 12th completed the Article IV Consultation with Jordan and the Second Review under the EFF arrangement. The mission for the next review, which will be the Third Review, is expected to take place in April.

    What I can also say is that Jordan has demonstrated resilience and maintained macroeconomic stability throughout the prolonged regional conflict. This resilience reflects the authority’s continued implementation of sound macroeconomic policies and progress with reforms. While recent developments in the region, particularly the ceasefire agreements, give rise to some cautious optimism, uncertainty, of course, in Jordan does remain high. And with respect to the growth projections, what I can say is that growth in 2024 was 2.3 percent. We are projecting growth at 2.5 percent in 2025 and a further increase in growth in 2026 to 3 percent. But like in all countries, we will be updating these projections as both part of our April World Economic Outlook Global Forecast, and also, of course, the team will be doing a full assessment of the Jordanian economy as part of their mission in April 

    And so, with this, I’m going to bring this press briefing to a close. Thank you all very much. Thank you very much for participating today. As a reminder, the briefing is embargoed until 11 a.m. Eastern Time in the U.S. The transcript, as always, will be made available later today on IMF.org. And in case of clarifications or additional questions, please reach out to my colleagues at media@IMF.org. And I wish everyone a wonderful day, and I look forward to seeing you next time. Thank you very much. 

     

    * * * * *

     

    IMF Communications Department
    MEDIA RELATIONS

    PRESS OFFICER: Boris Balabanov

    Phone: +1 202 623-7100Email: MEDIA@IMF.org

    https://www.imf.org/en/News/Articles/2025/03/06/tr030625-transcript-of-com-regular-press-briefing

    MIL OSI

    MIL OSI Russia News

  • MIL-OSI Global: Money laundering plays a key role in every part of the illegal drugs industry – here’s how it works

    Source: The Conversation – UK – By Mark Berry, Lecturer In Criminology, Bournemouth University

    R Mendoza/Shutterstock

    The global illicit drugs trade is estimated to be worth at least half a trillion US dollars each year. Drugs such as cocaine, methamphetamine and heroin generate large revenues all along their supply chains, from where the products (and precursor materials) are grown or made – principally Colombia and Bolivia, China, Afghanistan, and the “golden triangle” of Myanmar, Laos and Thailand – to wherever the finished drugs are consumed.

    Earnings in the illicit drug trade are variable. Few people will make the kind of money that once put the Mexican former cartel boss Joaquín “El Chapo” Guzmán on the Forbes list of global billionaires. But while drug “kingpins” are the industry’s biggest individual earners, they do not hold the majority of the drug money that is generated throughout the global supply chain.

    Despite their frequent glamorisation in film and TV portrayals, drug cartels are basically international logistics companies. They work with distributors in different countries who deliver the drugs to regional wholesalers, who in turn supply the local retailers (dealers) who sell drugs to individuals.

    Everyone along the supply chain takes their cut, with most people making much more modest incomes than the millionaire drug traffickers of narcocorrido lore. In our interviews with illicit drug entrepreneurs in the US and UK, we routinely spoke to sellers whose incomes ranged from pocket money to providing a moderately comfortable life.



    Illicit drug use is damaging large parts of the world socially, politically and environmentally. Patterns of supply and demand are changing rapidly. In our longform series Addicted, leading experts bring you the latest insights on drug use and production as we ask: is it time to declare a planetary emergency?


    Around 70% to 80% of the overall revenue generated by illicit drugs is shared among the many wholesale and street-level dealers in destination countries such as the UK and US, where the price per gram is at its highest. How this money moves and is used to sustain the illicit drug trade should be an important part of any worthwhile counter-narcotics strategy. But it rarely is.

    Professional money launderers

    The people and organisations responsible for laundering drug revenues – that is, transforming them into untraceable money that can easily be spent, or into assets that can be held or sold – often exist under the radar of law enforcement and the media.

    Yet the ways illicit drug money is laundered are hardly a mystery. Techniques include wire transfers to offshore bank accounts, investments in shell companies or deposits in cash businesses, and buying foreign currencies or (to a small extent) cryptocurrencies. In addition, the straightforward physical transportation of cash across national borders is an often-used method known as a “bulk cash transfer”.

    The largest players in the illicit drugs industry, such as international cartels, national distributors and large-scale wholesalers, often use professional money launderers – some of whom have seemingly reputable jobs in the financial sector. In one recent case, US financial regulators fined TD Bank US$3 billion (£2.4 billion) – a record penalty for a bank – for facilitating the laundering of millions of dollars of drug cartel money.

    Over six years, more than 90% of the bank’s transactions went unmonitored, enabling “three money laundering networks to collectively transfer more than US$670 million through TD Bank accounts”. Then-US attorney general Merrick Garland commented: “By making its services convenient for criminals, [TD Bank] became one.”

    Video: CBC News.

    Some money laundering networks are as global as the drug supply chains they service. In June 2024, the US Department of Justice’s (DoJ) multi-year “Operation Fortune Runner” investigation saw LA-based associates of Mexico’s Sinaloa drug cartel charged with conspiring with money-laundering groups linked to a Chinese underground banking network. According to the IRS’s head of criminal investigation, Guy Ficco:

    Drug traffickers generate immense amounts of cash through their illicit operations. This case is a prime example of Chinese money launderers working hand-in-hand with drug traffickers to try to legitimise profits generated by drug activities.

    According to the DoJ, “many wealthy Chinese nationals” barred from transferring large amounts to the US by the Chinese government’s capital flight restrictions seek informal alternatives to the conventional banking system – including via schemes to launder illicit drug money. The DoJ explained how this works:

    The China-based investor contacts an individual who has US dollars available to sell in the United States. This seller of US dollars provides identifying information for a bank account in China, with instructions for the investor to deposit Chinese currency (renminbi) in that account. Once the owner of the account sees the deposit, an equivalent amount of US dollars is released to the buyer in the United States.

    These arrangements are not unique to Chinese actors. Similar arrangements occur throughout the world, including schemes to leverage the black market peso exchange and the Hawala international money transfer system.

    Professional launderers are both creating and exploiting vulnerabilities in the global financial system. Such corruption allows suspicious transactions to occur without proper checks or oversight. This not only reduces transparency in the financial system but erodes public trust in it.

    How cartels launder their money

    International drug cartels and national wholesalers have a smaller markup on their transactions, compared with retailers. But because they are responsible for moving enormous quantities of illicit drugs, they still generate millions of dollars worth of revenue.

    The most prolific known drug distributors in US history, Margarito Flores Jr and his twin brother Pedro, delivered billions of dollars worth of cocaine, heroin and methamphetamines to their US and Canadian wholesale clients between 1998 and 2009. They were working for Guzmán and Ismeal “El Mayo” Zambada García, then leaders of the Sinaloa cartel, as well as the Mexican Beltrán Leyva brothers whose cartel bore their surname.

    Today, Margarito Flores Jr trains law enforcement across the US in the methods he and his brother used to traffic drugs and run their business. In January 2015, both men were sentenced to 14 years for drug trafficking – Margarito Flores Jr would later reach out to one of this article’s authors (R.V. Gundur) after reading his book, Trying to Make It: The Enterprises, Gangs, and People of the American Drug Trade, which includes a comprehensive account of the Flores crew’s activities.

    In a subsequent interview, he told us: “My brother and I estimate that, if we added up all of the money we sent back to Mexico over the decade we sold drugs, it was probably more than US$3.5 billion.”

    The billions they remitted to Mexico were used by Guzmán, Zambada and the Beltrán Levya brothers not only to expand their drug businesses, but to corrupt powerful figures such as Mexico’s former secretary of public security, Genaro García Luna.

    García Luna, who was Mexico’s highest-ranking law enforcement official from 2006 to 2012, was sentenced to nearly 40 years in prison in October 2024 after being found guilty of taking millions of dollars in bribes from the Sinaloa cartel, as well as enabling the trafficking of more than a million kilograms of cocaine into the US. Flores explained to us:

    It’s important to understand that corruption impacts people at all levels of government. Our payoffs included local police and other people in the community, up to higher-positioned people in government. Lots of that money ended up funding the violent conflicts between cartels.

    While there has been widespread coverage of cartel drug money being laundered through high-profile businesses and banks such as Wachovia and HSBC, Flores suggested that “the money involved in the drug trade is a lot more than anybody really can understand”. The reason for this, he said, is that it’s very hard to track the flow of hard cash via lorries, boats, planes and even drones. Flores told us:

    It’s a misconception that everyone who makes a lot of money in drugs or other illegal business makes an effort to launder their money. My brother and I held much of what we earned in cash. We knew the government could eventually take everything [else].

    The twins were right: in time, that’s exactly what the US government did.

    ‘Everyday’ money laundering

    In our study of money laundering strategies used by people involved in the illicit drug trade in the UK and US, we found that street dealers do not typically undertake sophisticated laundering processes. Rather, they spend their cash on food and other routine living expenses. One independent UK drug dealer, whose experience was typical of many, used the money earned from his cocaine sales to buy groceries and pay bills for himself and his daughter.

    Spending money, even small amounts, gained through illegal activities is a money laundering offence – albeit one that is seldom prosecuted. As a result, these everyday activities that return illicit drug money to the legal economy are not well accounted for – even though the street value of drugs drives global market value estimates.

    Business-savvy street dealers can earn gross revenues that approach the earnings of high-paid white-collar workers. But they must disguise their earnings’ origins before they can spend them, of course, and various tactics are used to do this.

    Some dealers solicit close friends or family members to act as “strawmen”. These are people willing to put assets paid for by illicit drug money – such as cars, properties or even businesses – in their names on behalf of the dealer. Idris Elba’s character Stringer Bell in HBO’s The Wire was an accurate portrayal of someone investing in legal enterprises using illicit drug money.

    A guide to Stringer Bell’s character in The Wire. Video: Just an Observation.

    These strategies occur wherever illegal enterprise exists, and have done for well over a century. In the US, we interviewed wholesalers who had used family members to own houses and other properties on their behalf. This is done to mitigate against the risk of asset forfeiture should they be convicted of a crime. If an illicit enterprise can create a plausible beneficial owner who is not involved in crime, then the asset is harder to seize. This is why the Donald Trump administration’s recent suspension of beneficial owner oversight is problematic from a drug enforcement perspective.

    In liberal democracies, governments cannot investigate someone’s finances simply because they are related to criminals. The dirty money that is put into their accounts can also be disguised as legitimate income making it difficult to identify, although thorough investigations may uncover it.

    In the UK, we also talked to successful drug retailers who had set up local businesses in their own names. The EU’s law enforcement agency, Europol, has reported similar activities throughout Europe.

    Legal businesses are a common – and often hard-to-detect – vehicle to launder drug money. Bars, clubs, gyms, and hair, nail and tanning salons can be readily set up with drug money, as large cash infusions to establish a business are often not well scrutinised. These businesses are comparatively easy to run with significant cash flows, providing suitable cover for dirty money.

    For example, a beauty salon, especially one that offers high-value boutique services, could easily incorporate drug revenue into its financial accounts by reporting sales that do not occur. Tanning salons can be set up with little expense since they require only sunbeds and the rental of a property.

    Along with bars, clubs and salons, construction companies and restaurants stand out as other cash-intensive businesses with high volumes of transactions – characteristics that make good fronts for laundering money.

    It’s hard to spot a ‘dirty’ business

    There is no surefire way to tell whether a business is a laundering front. While some may look like enterprises struggling to stay afloat, others develop into viable operations that eventually no longer need dirty money to sustain them.

    Some drug dealers incorporate laundering practices within their legitimate jobs. Tradespeople such as electricians or plumbers, for example, can launder money by generating invoices for fake jobs, then reporting the income on their tax returns.

    In both the UK and US, tax authorities are not charged with evaluating the veracity of the funds reported, and are generally satisfied once tax is paid. In other words, they generally trust declared income as proof of legal business activity. Moreover, they, along with the police, lack the resources to investigate these businesses for money laundering.

    Through their legal businesses, many drug dealers pay significant taxes on their illegal revenue, and thus contribute to the economy.

    Paying income tax effectively renders this income laundered. It can be invested and used to set up other businesses, or to purchase cars and properties without suspicion. It can also bolster credit ratings, and improve access to legal financial services such as bank loans.

    Many small-time drug dealers start legal businesses in order to exit the illicit drug trade. We interviewed one cocaine dealer who had used his drug money to set up a retail electronics store; once it was successful, he stopped dealing. Similarly, the person behind a semi-legitimate nitrous oxide enterprise used his proceeds to set up a legitimate alcohol delivery service.

    Through self-laundering, these modest drug dealers transform their proceeds of crime into spendable cash – and may eventually leave criminality behind altogether.

    The (losing) battle against laundered money

    Across the world, anti-money laundering efforts against organised criminal gangs are notoriously ineffective.

    The Financial Action Task Force (FATF) – an intergovernmental organisation formed in 1999 to combat money laundering and the financing of terrorism – assesses financial regulators’ anti-money laundering controls all over the world. Countries designated as a risk that require monitoring are placed on the task force’s “grey list”, while severe, high-risk countries go on its “black list”. Being put on these lists can result in a withdrawal of international investment and implementation of sanctions by other countries.

    Although developing countries have often scored badly in their assessments, there has been some progress. While Kenya remained on the grey list in 2024, for example, it was found to have strengthened its measures to tackle both money laundering and terrorist financing. In the same year, though, Lebanon was added to the grey list over concerns on both counts.

    The FATF’s evaluation processes are designed to provide an objective assessment of whether a country has implemented its anti-money laundering and counter-terrorist financing recommendations. However, the success of the FATF’s anti-money laundering controls remains unclear.

    Video: The Financial Action Task Force.

    Often lost in the criminal financing narrative is the role of bulk cash transfers. Even in a world that is moving to cashless transactions, cash generally remains the primary currency of both the illicit drug trade and corruption.

    The biggest and most successful drug traffickers have significant cash reserves which are used to pay workers, replace drugs that are lost or seized, accrue assets, and bribe key officials.

    Reflecting on his former illicit enterprise, Margarito Flores observed: “For every kilo of cocaine or heroin or methamphetamine we sold in the US, at least a kilo of cash went back to Mexico.” For deals in Europe, Flores said: “Given the markup the further away you trade, the amount of cash sent back could be even higher – I would estimate it to be a kilo and a half.”

    Flores described the ineptitude of law enforcement in policing cash that was leaving the US:

    No matter how careful we were, my brother and I lost a handful of loads of drugs heading north [from Mexico into the US]. Heading south was different: we just had the money put on tractor trailers and had it driven it across the border. We never lost a dollar. That’s where politicians don’t pay enough attention. That cash lets traffickers keep doing business.

    Focus on the money as well as the drugs

    So long as demand for illicit drugs exists, the industry will continue – and the revenue it generates will be laundered.

    We believe that to curb the drugs trade, enforcement strategies need to go beyond simply capturing drugs and focus much more on capturing the money. Governments should go after reserves held not only by drug cartels but high-level distributors, such as those who replaced the Flores twins, and also wholesalers. People like these – comparatively high earners in destination countries – are the backbone of the illicit drugs trade.

    Transnational law enforcement should prioritise detecting and seizing bulk cash transfers. These high-volume proceeds underwrite the wellbeing of drug trafficking organisations. Digital tools, such as machine learning and artificial intelligence, can be developed to create new techniques to track and trace suspicious transactions, although they alone won’t solve all laundering problems.

    Corruption of officials also remains a problem. Governments need to ensure their officials are well paid and sufficiently monitored in their roles – be they working in government, border control, banks, police departments or prisons. Unfortunately, the US has shirked its leadership in global anti-corruption efforts with the recent halting of the enforcement of the Foreign Corrupt Practices Act, which bans the bribing of foreign officials.




    Read more:
    Mexico’s drug corruption has more to do with US demand than crooked politicians


    Anti-money laundering efforts need to be consistently supported and required. Lamentably, the US has undermined its anti-money laundering toolkit by suspending the enforcement of beneficial ownership information reporting requirements. Establishing beneficial ownership helps financial institutions to identify parties that are hiding their financial interests, which can be an indication of money laundering or other criminal activity.

    Similarly, foreign investment in producer countries can strengthen their capacity to counter laundering by supporting intelligence infrastructure and improved training. Recent cuts to USAid and the reduction of US State Department efforts in these areas is another indication that the US will no longer lead in these domains.

    As cash businesses provide an easy mechanism for cleaning money, moving to a cashless society that uses digital transactions may help ensure that money is traceable. At the same time, cryptomarkets provide a minor, but potentially increasing, pathway to hiding dirty money digitally.

    Ultimately, we should recognise the decades-long “war on drugs” for what it is: a policy costing trillions of dollars that combined mass incarceration with insufficient public health investment, and which has harmed the very communities the illicit drug trade affects the most. It is a difficult balance, but the pathway forward needs to reorient the objectives regarding drugs: invest in people, then go after the money that keeps the cartels, distributors and wholesalers afloat.


    For you: more from our Insights series:

    To hear about new Insights articles, join the hundreds of thousands of people who value The Conversation’s evidence-based news. Subscribe to our newsletter.

    Mark Berry received funding from the Dawes Trust for a prestigious PhD scholarship to undertake work that informs the contents of this article.

    R.V. Gundur received funding from the Economic and Social Research Council to undertake work that informs the contents of this article. He is also a professional member of the International Compliance Association.

    The authors wish to thank Margarito Flores Jr (kingpintoeducator.com) for his help with this article.

    ref. Money laundering plays a key role in every part of the illegal drugs industry – here’s how it works – https://theconversation.com/money-laundering-plays-a-key-role-in-every-part-of-the-illegal-drugs-industry-heres-how-it-works-251288

    MIL OSI – Global Reports

  • MIL-OSI United Nations: Choose compassion, reject cruelty to end HIV, says top UN rights official

    Source: United Nations 2

    Human Rights

    Global efforts to tackle the HIV/AIDS epidemic continue to remain insufficient, with deadly consequences, the UN Human Rights Council heard on Thursday.

    In a stark assessment of the current situation of the health crisis, Deputy UN High Commissioner for Human Rights Nada Al-Nashif warned that more than nine million people do not receive treatment, while 4,000 girls and young women contract the virus every week.

    A staggering three-quarters of them live in sub-Saharan Africa, she noted, reminding Member States that while HIV is “entirely treatable and preventable…the world is off track in ending AIDS.

    Stigma fuelling crisis

    “Stigma and discrimination are preventing concrete progress and paving the way for a resurgence of infections,” Ms. Al-Nashif said.

    Together, we have the power and the responsibility to change this. When human rights are promoted, health is protected.

    Other speakers echoed the need for human rights-based approaches to ensure universal access to treatment. They warned that discrimination and harmful laws targeting marginalized communities hinder access to prevention, testing and care.

    Keep rights at the core

    Florence Riako Anam of the Global Network of People Living with HIV (GNP+) quoted Nelson Mandela, saying that HIV is “more than a disease – it is a human rights issue.”

    In many countries, criminalization, stigma and discrimination based on sexual orientation, gender identity, drug use as well as sex work continue to obstruct HIV response efforts, with deadly consequences.

    GNP+, an NGO collecting data on stigma since 2008, has surveyed 100,000 people across 100 countries. The findings: nearly one in four respondents experienced HIV-related stigma.

    Break the barriers

    To end AIDS for good, we must dismantle the human rights-related barriers that prevent certain populations from accessing the services they need and tackle the deep gender inequalities and underlying inequities that drive starkly different health outcomes,” said Vuyiseka Dubula, Head of Community, Rights and Gender at the Global Fund to Fight AIDS, Tuberculosis and Malaria.

    Ms. Dubula, who lives with HIV in South Africa, noted that while global progress has been significant – new infections down by 61 per cent and AIDS-related deaths by 73 per cent in more than 100 countries over the last two decades—there is still much work to be done.

    “This is something to be proud of, but we can go even further in the next five years if we really are focused on ending HIV” Ms. Dubula said, referring to Sustainable Development Goal 3 (SDG3) on ensuring healthy lives for all.

    Compassion over cruelty

    Adeeba Kamarulzaman of the World Health Organization (WHO) Science Council and the Global Council on Inequality, AIDS and Pandemics echoed the need for more compassionate methods in tackling the epidemic.

    She pointed to Malaysia, her home country, which once faced a devastating HIV epidemic but has since made significant progress.

    In countries decriminalizing drug use, knowledge of HIV status is 15 per cent higher and HIV incidence is five per cent lower, she explained, adding that in places where sex work is decriminalized, infection rates are further reduced by 4.5 per cent.

    When we choose compassion over cruelty, when we invest in people instead of punishing them, we save lives,” Dr. Kamarulzaman said.

    Persistent discrimination

    Erika Castellanos, a transgender woman and Executive Director of Global Action for Trans Equality, spoke of her experience in Belize, where LGBTIQ+ people faced up to 10 years in jail before 2016. Even after the law was overturned, little has changed.

    “The stigma, discrimination and institutional barriers persist in the systems that deny us dignity, in the services that exclude us and in the societies that still see us as less than human,” said Ms. Castellanos, who has lived with HIV for 20 years.

    “I am here because of the hard work, sweat, blood and tears of countless people, many of whom did not survive this epidemic,” she told the Human Rights Council.

    I am alive – because of an HIV response that valued my life.

    MIL OSI United Nations News

  • MIL-OSI USA: 2025-34 ATTORNEY GENERAL LOPEZ SECURES NATIONWIDE PRELIMINARY INJUNCTION AGAINST TRUMP ADMINISTRATION FOR DEFUNDING MEDICAL AND PUBLIC HEALTH INNOVATION RESEARCH

    Source: US State of Hawaii

    2025-34 ATTORNEY GENERAL LOPEZ SECURES NATIONWIDE PRELIMINARY INJUNCTION AGAINST TRUMP ADMINISTRATION FOR DEFUNDING MEDICAL AND PUBLIC HEALTH INNOVATION RESEARCH

    Posted on Mar 6, 2025 in Latest Department News, Newsroom

     

    STATE OF HAWAIʻI

    KA MOKU ʻĀINA O HAWAIʻI

     

    DEPARTMENT OF THE ATTORNEY GENERAL

    KA ʻOIHANA O KA LOIO KUHINA

     

    JOSH GREEN, M.D.
    GOVERNOR

    KE KIAʻĀINA

     

    ANNE LOPEZ

    ATTORNEY GENERAL

    LOIO KUHINA

    ATTORNEY GENERAL LOPEZ SECURES NATIONWIDE PRELIMINARY INJUNCTION AGAINST TRUMP ADMINISTRATION FOR DEFUNDING MEDICAL AND PUBLIC HEALTH INNOVATION RESEARCH

     

    News Release 2025-34

     

    FOR IMMEDIATE RELEASE                                                       

    March 5, 2025

    HONOLULU – Attorney General Anne Lopez and a coalition of 21 other attorneys general have secured a nationwide preliminary injunction in Massachusetts v. NIH. The order prevents the Trump Administration, the Department of Health and Human Services (HHS), and the National Institutes of Health (NIH) from cutting billions of dollars in funds that support cutting-edge medical and public health research at universities and research institutions across the country regardless of whether their states have joined the lawsuit.

    “As the court confirmed, the Trump administration’s attempt to cut lifesaving, essential scientific and medical research funding for public health institutions was as illegal as it was arbitrary,” said Attorney General Lopez. “Once again, the courts are sending a clear message that President Trump’s efforts to paralyze the government through arbitrary funding cuts are illegal. The people of Hawaiʻi rightfully expect that the federal administration will act lawfully, and my department will work to protect the interests of this state.”

    “We sincerely appreciate the Attorney General’s efforts to obtain this injunction,” said University of Hawaiʻi Vice President for Research and Innovation Vassilis Syrmos. “NIH’s proposed drastic reduction of our facilities and administrative rate would result in the elimination of approximately $16.5M in funding that the University of Hawaiʻi uses to support its research programs and graduate students, including debt service payments for facilities that support translational research and clinical trials. As our state’s only medical school, JABSOM is required to do research that benefits our population. The level and quality of research cannot be sustained with the proposed cuts. The negative impact on communities in Hawaiʻi and elsewhere that already experience the highest rates of chronic disease, more severe health conditions, and shortened life expectancies, will be severe.”

    The state of Hawaiʻi is represented in this litigation by Special Assistant to the Attorney General Dave Day and Solicitor General Kalikoʻonālani Fernandes, who added: “We are very pleased with this decision. The relief obtained in this case for the University of Hawaiʻi underscores the importance of standing up for the rule of law and the interests of Hawaiʻi against unlawful federal actions.”

    The preliminary injunction protects critical funds that facilitate biomedical research, like lab, faculty, infrastructure, and utility costs. Without them, the lifesaving and life-changing medical research in which the United States has long been a leader, could be compromised.

    On February 10, less than six hours after the coalition filed its lawsuit against the Administration, a judge in the U.S. District Court for Massachusetts issued a temporary restraining order against NIH, barring its attempts to cut the critical research funding. Today’s order takes the place of the temporary restraining order and prevents the Trump Administration from cutting this important category of funding as the case proceeds. It will remain in effect until a final ruling is made.

    The NIH is the primary source of federal funding for medical research in the United States. Medical research funding by NIH grants have led to innumerable scientific breakthroughs, including the discovery of treatment for cancers of all types and the first sequencing of DNA. Additionally, dozens of NIH-supported scientists have earned Nobel Prizes for their groundbreaking scientific work.

    Joining Hawaiʻi in this coalition are the attorneys general of Arizona, California, Connecticut, Colorado, Delaware, Illinois, Maine, Maryland, Massachusetts, Michigan, Minnesota, Nevada, New Jersey, New Mexico, New York, North Carolina, Oregon, Rhode Island, Vermont, Washington and Wisconsin. This lawsuit is being co-led by the attorneys general of Massachusetts, Illinois, and Michigan.

    # # #

     

    Media contacts:

    Dave Day

    Special Assistant to the Attorney General

    Office: 808-586-1284

    Email: [email protected]        

    Web: http://ag.hawaii.gov

     

    Toni Schwartz
    Public Information Officer
    Hawai‘i Department of the Attorney General
    Office: 808-586-1252
    Cell: 808-379-9249
    Email: [email protected] 

    Web: http://ag.hawaii.gov

    MIL OSI USA News

  • MIL-OSI: Asure Announces Fourth Quarter and Full Year 2024 Results

    Source: GlobeNewswire (MIL-OSI)

    Reports Full Year 2024 Revenues of $119.8 million

    Full Year 2024 Recurring Revenues Grew 15% from Prior Year

    Recurring Revenues Grew to 96% of Total Revenues from 84% in the Prior Year

    AUSTIN, Texas, March 06, 2025 (GLOBE NEWSWIRE) — Asure Software, Inc. (“we”, “us”, “our”, “Asure” or the “Company”) (Nasdaq: ASUR), a leading provider of cloud-based Human Capital Management (“HCM”) software solutions, today reported results for the fourth quarter and full year ended December 31, 2024.

    Fourth Quarter 2024 Financial Highlights

    • Revenue of $30.8 million, up 17% year over year, excluding ERTC revenue up 22% from prior year fourth quarter
    • Recurring revenue of $28.5 million, up 14% from prior year fourth quarter
    • Net loss of $3.2 million versus a net loss of $3.6 million during prior year fourth quarter
    • EBITDA (1) of $3.4 million versus $1.1 million from prior-year fourth quarter
    • Adjusted EBITDA (1) of $6.2 million, versus $2.8 million from prior-year fourth quarter
    • Gross profit of $20.9 million versus $17.8 million from prior-year fourth quarter
    • Non-GAAP gross profit (1) of $22.5 million (Non-GAAP gross margin (1) of 73%) versus $18.8 million (and 72% in prior-year fourth quarter)

    Full Year 2024 Financial Highlights

    • Revenue of $119.8 million increased slightly year over year, excluding ERTC revenue up 17% from prior year
    • Recurring revenue of $114.5 million up 15% from prior year
    • Net loss of $11.8 million versus prior year net loss of $9.2 million
    • EBITDA (1) of $11.4 million versus $14.3 million in the prior year
    • Adjusted EBITDA (1) of $22.5 million versus $23.3 million in the prior year
    • Gross profit of $82.1 million versus $85.5 million in the prior year
    • Non-GAAP gross profit (1) of $88.2 million versus $90.3 million in the prior year

    Recent Business Highlights

    • In January 2025 we signed a major multi-year agreement with an industry leader in audit, consulting, tax and advisory  services to resell our Payroll and Payroll Tax Management solutions. The multi-year agreement will deliver comprehensive payroll and payroll tax management services for the firm’s clients enabling them to offer these services for the first time. 
    • We announced the introduction of Luna, a groundbreaking AI agent designed to enhance payroll and HR management. Unlike traditional generative AI chatbots, Luna is an advanced AI agent that understands Asure’s suite of products, serves as an industry expert, and most importantly, can act on behalf of both employees through self-service and business owners and administrators.
    • Jay Whitehead joined Asure in January 2025 as Senior Vice President to lead our AsurePay™ Platinum VIP Banking card and Marketplace businesses. He is a seasoned entrepreneur, and HCM thought leader who we expect to drive innovation and foster strategic partnerships at Asure.

    (1)This financial measure is not calculated in accordance with GAAP and is defined on page 3 of this press release. A reconciliation of this non-GAAP measure to the most applicable GAAP measure begins on page 11 of this release.

    Management Commentary

    “We are pleased to report strong results for 2024, demonstrating the continued momentum of our business. Excluding the one-time impact of ERTC revenue, our fourth-quarter revenue grew 22% year-over-year, reaching $30.8 million—an impressive finish to the year. For the full year, total revenue increased modestly to $119.8 million, but when adjusted to exclude ERTC, our revenue growth was 17% year-over-year, underscoring the strength of our core business. Recurring revenue, the backbone of our model, grew 15% year-over-year and now represents 96% of total revenue, up from 84% in 2023. Additionally, our contracted revenue backlog continued to expand, providing further visibility into future growth,” said Asure Chairman and CEO Pat Goepel. 

    “Our performance in 2024 was particularly strong in key areas, including our Payroll Tax Management product, which drove several major multi-year agreements with enterprise clients. The success of this product, along with our growing backlog, reinforces the durability of our revenue streams and positions us well for the future.” 

    “We executed our strategy despite the anticipated headwind of replacing one-time ERTC revenue, and we are entering 2025 with a solid foundation for continued growth. Our plan for 2025 includes both organic and inorganic expansion, supported by the significant investments we’ve made in technology, operations, and new product development. With these improvements, we are confident in our ability to drive sustained, long-term growth.” 

    First Quarter 2025 and Full Year 2025 Revenue Guidance Ranges

    The Company is providing the following guidance for the first quarter 2025 and full year 2025 based on the Company’s year-to-date results and recent business trends. The guidance for our first quarter 2025 and the full year 2025 excludes any contribution from future potential acquisitions.

    Guidance for 2025

    Guidance Range   Q1-2025   FY-2025
    Revenue $ 33.0 M – 35.0 M $ 134.0 M -138.0 M
    Adjusted EBITDA(1) $ 6.0 M -7.0 M   23% -24%
             

    (1)This financial measure is not calculated in accordance with GAAP and is defined on page 3 of this press release. A reconciliation of this non-GAAP measure to the most applicable GAAP measure begins on page 11 of this release.

    Management uses GAAP, non-GAAP and adjusted measures when planning, monitoring, and evaluating the Company’s performance. The primary purpose of using non-GAAP and adjusted measures is to provide supplemental information that may prove useful to investors and to enable investors to evaluate the Company’s results in the same way management does.

    Management believes that supplementing GAAP disclosures with non-GAAP and adjusted disclosures provides investors with a more complete view of the Company’s operational performance and allows for meaningful period-to-period comparisons and analysis of trends in the Company’s business. Further, to the extent that other companies use similar methods in calculating adjusted financial measures, the provision of supplemental non-GAAP and adjusted information can allow for a comparison of the Company’s relative performance against other companies that also report non-GAAP and adjusted operating results.

    Management has not provided a reconciliation of guidance of GAAP to non-GAAP or adjusted disclosures because management is unable to predict the nature and materiality of non-recurring expenses without unreasonable effort.

    Management’s projections are based on management’s current beliefs and assumptions about the Company’s business, and the industry and the markets in which it operates; there are known and unknown risks and uncertainties associated with these projections. There can be no assurance that our actual results will not differ from the guidance set forth above. The Company assumes no obligation to update publicly any forward-looking statements, including its 2025 earnings guidance, whether as a result of new information, future events or otherwise. Please refer to the “Use of Forward-Looking Statements” disclosures on page 5 of this press release as well as the risk factors in our quarterly and annual reports on file with the Securities and Exchange Commission for more information about risk that affect our business and industry.

    Conference Call Details

    Asure management will host a conference call on Thursday, March 6, 2025, at 3:30 pm Central (4:30 pm Eastern). Asure Chairman and CEO Pat Goepel and CFO John Pence will participate in the conference call followed by a question-and-answer session. The conference call will be broadcast live and available for replay via the investor relations section of the Company’s website. Analysts may participate on the conference call by dialing 877-407-9219 or 201-689-8852.

    About Asure Software, Inc.

    Asure (Nasdaq: ASUR) provides cloud-based Human Capital Management (HCM) software solutions that assist organizations of all sizes in streamlining their HCM processes. Asure’s suite of HCM solutions includes HR, payroll, time and attendance, benefits administration, payroll tax management, and talent management. The company’s approach to HR compliance services incorporates AI technology to enhance scalability and efficiency while prioritizing client interactions. For more information, please visit www.asuresoftware.com

    Non-GAAP and Adjusted Financial Measures

    This press release includes information about non-GAAP gross profit, non-GAAP sales and marketing expense, non-GAAP general and administrative expense, non-GAAP research and development expense, EBITDA, EBITDA margin, adjusted EBITDA, and adjusted EBITDA margin. These non-GAAP and adjusted financial measures are measurements of financial performance that are not prepared in accordance with U.S. generally accepted accounting principles and computational methods may differ from those used by other companies. Non-GAAP and adjusted financial measures are not meant to be considered in isolation or as a substitute for comparable GAAP measures and should be read only in conjunction with the Company’s Condensed Consolidated Financial Statements prepared in accordance with GAAP. Non-GAAP and adjusted financial measures are reconciled to GAAP in the tables set forth in this release and are subject to reclassifications to conform to current period presentations.

    Non-GAAP gross profit differs from gross profit in that it excludes amortization, share-based compensation, and one-time items.

    Non-GAAP sales and marketing expense differs from sales and marketing expense in that it excludes share-based compensation and one-time items.

    Non-GAAP general and administrative expense differs from general and administrative expense in that it excludes share-based compensation and one-time items.

    Non-GAAP research and development expense differs from research and development expense in that it excludes share-based compensation and one-time items.

    EBITDA differs from net income (loss) in that it excludes items such as interest, income taxes, depreciation, and amortization. Asure is unable to predict with reasonable certainty the ultimate outcome of these exclusions without unreasonable effort.

    Adjusted EBITDA differs from EBITDA in that it excludes share-based compensation, other income (expense), net and one-time expenses. Asure is unable to predict with reasonable certainty the ultimate outcome of these exclusions without unreasonable effort.

    All adjusted and non-GAAP measures presented as “margin” are computed by dividing the applicable adjusted financial measure by total revenue.

    Specifically, as applicable to the respective financial measure, management is adjusting for the following items when calculating non-GAAP and adjusted financial measures as applicable for the periods presented. No additional adjustments have been made for potential income tax effects of the adjustments based on the Company’s current and anticipated de minimis effective federal tax rate, resulting from the Company’s continued losses for federal tax purposes and its tax net operating loss balances.

    Share-Based Compensation Expenses. The Company’s compensation strategy includes the use of share-based compensation to attract and retain employees and executives. It is principally aimed at aligning their interests with those of our stockholders and at long-term employee retention, rather than to motivate or reward operational performance for any particular period. Thus, share-based compensation expense varies for reasons that are generally unrelated to operational decisions and performance in any particular period.

    Depreciation. The Company excludes depreciation of fixed assets. Also included in the expense is the depreciation of capitalized software costs.

    Amortization of Purchased Intangibles. The Company views amortization of acquisition-related intangible assets, such as the amortization of the cost associated with an acquired company’s research and development efforts, trade names, customer lists and customer relationships, and acquired lease intangibles, as items arising from pre-acquisition activities determined at the time of an acquisition. While these intangible assets are continually evaluated for impairment, amortization of the cost of purchased intangibles is a static expense, one that is not typically affected by operations during any particular period.

    Interest Expense, Net. The Company excludes accrued interest expense, the amortization of debt discounts and deferred financing costs.

    Income Taxes. The Company excludes income taxes, both at the federal and state levels.

    One-Time Expenses. The Company’s adjusted financial measures exclude the following costs to normalize comparable reporting periods, as these are generally non-recurring expenses that do not reflect the ongoing operational results. These items are typically not budgeted and are infrequent and unusual in nature.

    Settlements, Penalties and Interest. The Company excludes legal settlements, including separation agreements, penalties and interest that are generally one-time in nature and not reflective of the operational results of the business.

    Acquisition and Transaction Related Costs. The Company excludes these expenses as they are transaction costs and expenses that are generally one-time in nature and not reflective of the underlying operational results of our business. Examples of these types of expenses include legal, accounting, regulatory, other consulting services, severance and other employee costs.

    Other non-recurring Expenses. The Company excludes these as they are generally non-recurring items that are not reflective of the underlying operational results of the business and are generally not anticipated to recur. Some examples of these types of expenses, historically, have included write-offs or impairments of assets, demolition of office space and cybersecurity consultants.

    Other (Expense) Income, Net. The Company’s adjusted financial measures exclude Other (Expense) Income, Net because it includes items that are not reflective of the underlying operational results of the business, such as loan forgiveness, adjustments to contingent liabilities and credits earned as part of the CARES Act, passed by Congress in the wake of the coronavirus pandemic.

    Use of Forward-Looking Statements

    This press release contains certain statements made by management that may constitute “forward-looking” statements within the meaning of the safe harbor provisions of the U.S. Private Securities Litigation Reform Act of 1995. These forward-looking statements about our financial results may include expected or projected U.S GAAP, non-U.S GAAP and other operating and non-operating results. The words “believe,” “may,” “will,” “estimate,” “projects,” “anticipate,” “intend,” “expect,” “should,” “plan,” and similar expressions are intended to identify forward-looking statements. Examples of “forward-looking statements” include statements regarding our strategy, future operations, financial condition, results of operations, projected costs, revenue growth, earnings, and plans and objectives of management. We have based these forward-looking statements largely on our current expectations and projections about future events and trends that we believe may affect our financial condition, results of operations, business strategy, short-term and long-term business operations and objectives, and financial needs. The achievement or success of the matters covered by such forward-looking statements involves risks, uncertainties and assumptions, over many of which we have no control. If any such risks or uncertainties materialize or if any of the assumptions prove incorrect, our results could differ materially from the results expressed or implied by the forward-looking statements we make. Additionally, we are under no obligation to update any of the forward-looking statements after the date of this press release or to confirm such statements to actual results.

    The risks and uncertainties referred to above include—but are not limited to— risks associated with breaches of the Company’s security measures; risks related to material weaknesses; possible fluctuations in the Company’s financial and operating results; privacy concerns and laws and other regulations may limit the effectiveness of our applications; the financial and other impact of any previous and future acquisitions; domestic and international regulatory developments, including changes to or applicability to our business of privacy and data securities laws, money transmitter laws and anti-money laundering laws; regulatory pressures on economic relief enacted as a result of the COVID-19 pandemic that change or cause different interpretations with respect to eligibility for such programs; risk of our software and solutions not functioning adequately; interruptions, delays or changes in the Company’s services or the Company’s Web hosting; may incur debt to meet future capital requirements; volatility and weakness in bank and capital markets; access to additional capital; significant costs as a result of operating as a public company; the expiration of Employee Retention Tax Credits (“ERTC”) and the impact of the Internal Revenue Service recent measures regarding ERTC claims and the corresponding cash collections of existing receivables; the inability to continue to release timely updates for changes in laws; the inability to develop new and improved versions of the Company’s services and technological developments; customer’s nonrenewal of their agreements and other similar changes could negatively impact revenue, operating results and financial conditions; the exposure of market, interest, credit and liquidity risk on client funds held int rust; the Company’s operation in highlight competitive markets; risk that our clients could have insufficient funds that could result in limitations in the ability to transmit ACH transactions; impairment of intangible assets; litigation and any related claims, negotiations and settlements, including with respect to intellectual property matters or industry-specific regulations; various financial aspects of the Company’s Software-as-a-Service model; adverse effects to our business a result of claims, lawsuits, and other proceedings; issues in the use of artificial intelligence in our HCM products and services; adverse changes to financial accounting standards to the Company; inability to maintain third-party licensed software; evolving regulation of the Internet, changes in the infrastructure underlying the Internet or interruptions in Internet; factors affecting the Company’s deferred tax assets and ability to value and utilize them; the nature of the Company’s business model; inability to adopt new or correctly interpret existing money service and money transmitter business status; the Company’s ability to hire, retain and motivate employees and manage the Company’s growth; interruptions to supply chains and extended shut down of businesses; potential enactment of adverse tax laws, regulation, political, economic and social factors; potential sales of a substantial number of shares of our common stock along with its volatility; risks associate with potential equity-related transactions including dividends, rights under the stockholder plan to discourage certain actions and other impacts as a result of actions of our stockholders.

    Please review the Company’s risk factors in its annual report on Form 10-K filed with the Securities and Exchange Commission (the “SEC”) on March 6, 2025.

    The forward-looking statements, including the financial guidance and 2025 outlook, contained in this press release represent the judgment of the Company as of the date of this press release, and the Company expressly disclaims any intent, obligation or undertaking to release publicly any updates or revisions to any forward-looking statements to reflect any change in the Company’s expectations with regard to these forward looking statements or any change in events, conditions or circumstances on which any such statements are based. © 2025 Asure Software, Inc. All rights reserved

     
    ASURE SOFTWARE, INC.
    CONSOLIDATED BALANCE SHEETS
    (in thousands, except per share amounts)
           
      December 31, 2024   December 31, 2023
           
    ASSETS      
    Current assets:      
    Cash and cash equivalents $ 21,425     $ 30,317  
    Accounts receivable, net of allowance for credit losses of $6,328 and $4,787 at December 31, 2024 and December 31, 2023, respectively   18,154       14,202  
    Inventory   195       155  
    Prepaid expenses and other current assets   4,888       3,471  
    Total current assets before funds held for clients   44,662       48,145  
    Funds held for clients   192,615       219,075  
    Total current assets   237,277       267,220  
    Property and equipment, net   19,669       14,517  
    Goodwill   94,724       86,011  
    Intangible assets, net   69,114       62,082  
    Operating lease assets, net   4,041       4,991  
    Other assets, net   11,813       9,047  
    Total assets $ 436,638     $ 443,868  
    LIABILITIES AND STOCKHOLDERSEQUITY      
    Current liabilities:      
    Current portion of notes payable $ 7,008     $ 27  
    Accounts payable   1,364       2,570  
    Accrued compensation and benefits   4,485       6,519  
    Operating lease liabilities, current   1,438       1,490  
    Other accrued liabilities   6,600       3,862  
    Deferred revenue   8,363       6,853  
    Total current liabilities before client fund obligations   29,258       21,321  
    Client fund obligations   194,378       220,019  
    Total current liabilities   223,636       241,340  
    Long-term liabilities:      
    Deferred revenue   3,430       16  
    Deferred tax liability   2,612       1,728  
    Notes payable, net of current portion   5,709       4,282  
    Operating lease liabilities, noncurrent   3,578       4,638  
    Other liabilities   358       209  
    Total long-term liabilities   15,687       10,873  
    Total liabilities   239,323       252,213  
    Stockholders’ equity:      
    Preferred stock, $0.01 par value; 1,500 shares authorized; none issued or outstanding          
    Common stock, $0.01 par value; 44,000 shares authorized; 26,671 and 25,382 shares issued, 26,671 and 24,998 shares outstanding at December 31, 2024 and December 31, 2023, respectively   267       254  
    Treasury stock at cost, zero(1)and 384 shares at December 31, 2024 and December 31, 2023, respectively         (5,017 )
    Additional paid-in capital   504,849       487,973  
    Accumulated deficit   (307,226 )     (290,440 )
    Accumulated other comprehensive loss   (575 )     (1,115 )
    Total stockholders’ equity   197,315       191,655  
    Total liabilities and stockholders’ equity $ 436,638     $ 443,868  
    (1) The aggregate Treasury stock of prior repurchases of the Company’s own common stock was retired and subsequently issued effective January 1, 2024. See the Consolidated Statement of Changes in Stockholders’ Equity for the impact of this transaction.
     
     
    ASURE SOFTWARE, INC.
    CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS
    (in thousands, except per share amounts)
           
      Three Months Ended
    December 31,
      Twelve Months Ended
    December 31,
      2024   2023   2024   2023
                   
    Revenue:              
    Recurring $ 28,521     $ 24,985     $ 114,471     $ 99,734  
    Professional services, hardware and other   2,271       1,279       5,321       19,348  
    Total revenue   30,792       26,264       119,792       119,082  
    Cost of sales   9,864       8,425       37,685       33,545  
    Gross profit   20,928       17,839       82,107       85,537  
    Operating expenses:              
    Sales and marketing   6,945       6,422       28,316       28,734  
    General and administrative   9,940       9,747       40,499       39,333  
    Research and development   2,103       1,739       7,807       6,846  
    Amortization of intangible assets   4,432       3,694       16,222       13,623  
    Total operating expenses   23,420       21,602       92,844       88,536  
    Loss from operations   (2,492 )     (3,763 )     (10,737 )     (2,999 )
    Interest income   151       326       913       1,342  
    Interest expense   (362 )     (302 )     (1,024 )     (5,639 )
    Loss on extinguishment of debt                     (1,517 )
    Other income (expense), net   (2 )     (1 )     8       (292 )
    Loss from operations before income taxes   (2,705 )     (3,740 )     (10,840 )     (9,105 )
    Income tax expense (benefit)   499       (158 )     933       109  
    Net loss   (3,204 )     (3,582 )     (11,773 )     (9,214 )
    Other comprehensive income (loss):              
    Unrealized gain (loss) on marketable securities   (565 )     1,581       540       1,368  
    Comprehensive loss $ (3,769 )   $ (2,001 )   $ (11,233 )   $ (7,846 )
                   
    Basic and diluted loss per share              
    Basic $ (0.12 )   $ (0.14 )   $ (0.45 )   $ (0.42 )
    Diluted $ (0.12 )   $ (0.14 )   $ (0.45 )   $ (0.42 )
                   
    Weighted average basic and diluted shares              
    Basic   26,602       24,907       26,054       22,138  
    Diluted   26,602       24,907       26,054       22,138  
                                   
     
    ASURE SOFTWARE, INC.
    CONSOLIDATED STATEMENTS OF CASH FLOWS
    (in thousands)
       
      Year Ended December 31,
      2024   2023
           
    Cash flows from operating activities:      
    Net loss $ (11,773 )   $ (9,214 )
    Adjustments to reconcile loss to net cash provided by operations:      
    Depreciation and amortization   22,142       19,135  
    Amortization of operating lease assets   1,386       1,481  
    Amortization of debt financing costs and discount   726       820  
    Non-cash interest expense   298       1,471  
    Net accretion of discounts and amortization of premiums on available-for-sale securities   (377 )     (119 )
    Provision for expected losses   46       2,047  
    Provision for deferred income taxes   884       225  
    Loss on extinguishment of debt         990  
    Net realized gains on sales of available-for-sale securities   (2,609 )     (2,257 )
    Share-based compensation   6,444       5,430  
    Loss on disposals of long-term assets         132  
    Change in fair value of contingent purchase consideration         175  
    Changes in operating assets and liabilities:      
    Accounts receivable   (3,998 )     (4,126 )
    Inventory   (41 )     97  
    Prepaid expenses and other assets   (1,886 )     5,101  
    Operating lease right-of-use assets         546  
    Accounts payable   (1,206 )     376  
    Accrued expenses and other long-term obligations   (1,103 )     87  
    Operating lease liabilities   (1,555 )     (1,118 )
    Deferred revenue   2,010       (2,379 )
    Net cash provided by operating activities   9,388       18,900  
    Cash flows from investing activities:      
    Acquisition of intangible assets   (13,256 )     (7,651 )
    Purchases of property and equipment   (692 )     (1,585 )
    Software capitalization costs   (10,187 )     (7,027 )
    Purchases of available-for-sale securities   (15,643 )     (27,647 )
    Proceeds from sales and maturities of available-for-sale securities   20,522       14,385  
    Net cash used in investing activities   (19,256 )     (29,525 )
    Cash flows from financing activities:      
    Proceeds from notes payable, net of issuance costs   4,995        
    Payments of notes payable   (420 )     (35,627 )
    Debt extinguishment costs         (250 )
    Net proceeds from issuance of common stock   1,370       46,800  
    Capital raise fees   (132 )     (338 )
    Payments made on amounts due for the acquisition of intangibles   (1,513 )     (311 )
    Net change in client fund obligations   (26,342 )     13,931  
    Net cash provided by (used in) financing activities   (22,042 )     24,205  
    Net increase (decrease) in cash, cash equivalents, restricted cash, and restricted cash equivalents   (31,910 )     13,580  
    Cash, cash equivalents, restricted cash and restricted cash equivalents, beginning of period   177,622       164,042  
    Cash, cash equivalents, restricted cash and restricted cash equivalents, end of period $ 145,712     $ 177,622  
                   
     
    ASURE SOFTWARE, INC.
    CONSOLIDATED STATEMENTS OF CASH FLOWS (continued)
    (in thousands)
       
      Year Ended December 31,
      2024
      2023
           
    Reconciliation of cash, cash equivalents, restricted cash, and restricted cash equivalents to the Consolidated Balance Sheets
    Cash and cash equivalents $ 21,425     $ 30,317  
    Restricted cash and restricted cash equivalents included in funds held for clients   124,287       147,305  
    Total cash, cash equivalents, restricted cash, and restricted cash equivalents $ 145,712     $ 177,622  
           
    Supplemental information:      
    Cash paid for interest $     $ 3,140  
    Cash paid for income taxes $ 18     $ 432  
           
    Non-cash investing and financing activities:      
    Acquisition of intangible assets $ 5,338     $ 357  
    Notes payable issued for acquisitions $ 3,107     $ 1,209  
    Shares issued for acquisitions $ 9,125     $ 2,543  
                   
     
    ASURE SOFTWARE, INC.
    RECONCILIATION OF NON-GAAP AND ADJUSTED FINANCIAL MEASURES
    (unaudited)
                     
    (in thousands) Q4-24 Q3-24 Q2-24 Q1-24 Q4-23 Q3-23 Q2-23 Q1-23
    Revenue(1) $ 30,792   $ 29,304   $ 28,044   $ 31,652   $ 26,264   $ 29,334   $ 30,420   $ 33,064  
                     
    Gross Profit to non-GAAP Gross Profit                
    Gross Profit $ 20,928   $ 19,704   $ 18,868   $ 22,607   $ 17,839   $ 21,280   $ 22,018   $ 24,400  
    Gross Margin   68.0 %   67.2 %   67.3 %   71.4 %   67.9 %   72.5 %   72.4 %   73.8 %
                     
    Share-based Compensation   44     44     43     40     32     28     46     31  
    Depreciation   1,190     1,232     1,145     1,110     921     984     1,309     1,009  
    Amortization – intangibles   50     50     50     50     50     50     50     268  
    One-time expenses                
    Settlements, penalties & interest   25     2     3         (6 )   8         4  
    Acquisition and transaction costs   221     367     264     39                  
    Other non-recurring expenses   84                              
    Non-GAAP Gross Profit $ 22,542   $ 21,399   $ 20,373   $ 23,846   $ 18,836   $ 22,350   $ 23,423   $ 25,712  
    Non-GAAP Gross Margin   73.2 %   73.0 %   72.6 %   75.3 %   71.7 %   76.2 %   77.0 %   77.8 %
                     
    Sales and Marketing Expense to non-GAAP Sales and Marketing Expense
    Sales and Marketing Expense $ 6,945   $ 6,680   $ 6,924   $ 7,767   $ 6,422   $ 6,597   $ 8,515   $ 7,200  
                     
    Share-based Compensation   251     269     237     243     180     210     149     124  
    Depreciation       1         1     1              
    One-time expenses                
    Settlements, penalties & interest   78     (5 )   5     18     6     30     4     11  
    Acquisition and transaction costs   9     68     37     11                  
    Other non-recurring expenses   52                         180      
    Non-GAAP Sales and Marketing Expense $ 6,555   $ 6,347   $ 6,645   $ 7,494   $ 6,235   $ 6,357   $ 8,182   $ 7,065  
                     
    General and Administrative Expense to non-GAAP General and Administrative Expense
    General and Administrative Expense $ 9,940   $ 10,378   $ 10,118   $ 10,063   $ 9,747   $ 9,294   $ 10,336   $ 9,956  
                     
    Share-based Compensation   1,081     1,187     1,122     1,535     980     936     1,298     1,142  
    Depreciation   269     264     256     251     225     200     234     210  
    One-time expenses                
    Settlements, penalties & interest   142     377     304     98     284     101     432     102  
    Acquisition and transaction costs   282     371     245     57     51              
    Other non-recurring expenses   220     253         86     53         453      
    Non-GAAP General and Administrative Expense $ 7,946   $ 7,926   $ 8,191   $ 8,036   $ 8,154   $ 8,057   $ 7,919   $ 8,502  
                     
    Research and Development Expense to non-GAAP Research and Development Expense
    Research and Development Expense $ 2,103   $ 1,973   $ 1,962   $ 1,769   $ 1,739   $ 1,803   $ 1,325   $ 1,979  
                     
    Share-based Compensation   87     90     86     85     69     76     89     40  
    One-time expenses                
    Settlements, penalties & interest   21         27     31                  
    Acquisition and transaction costs   153     195     369     147                  
    Other non-recurring expenses   29                              
    Non-GAAP Research and Development Expense $ 1,813   $ 1,688   $ 1,480   $ 1,506   $ 1,670   $ 1,727   $ 1,236   $ 1,939  
                                                     

    (1)Note that first quarters are seasonally strong as recurring year-end W2/ACA revenue is recognized in this period.

     
    ASURE SOFTWARE, INC.
    RECONCILIATION OF NON-GAAP AND ADJUSTED FINANCIAL MEASURES (cont.)
    (unaudited)
                     
    (in thousands) Q4-24 Q3-24 Q2-24 Q1-24 Q4-23 Q3-23 Q2-23 Q1-23
    Revenue(1) $ 30,792   $ 29,304   $ 28,044   $ 31,652   $ 26,264   $ 29,334   $ 30,420   $ 33,064  
                     
    GAAP Net (Loss) Income to Adjusted EBITDA
    GAAP Net (Loss) Income $ (3,204 ) $ (3,901 ) $ (4,360 ) $ (308 ) $ (3,582 ) $ (2,206 ) $ (3,765 ) $ 339  
                     
    Interest expense, net   211     109     (53 )   (156 )   (24 )   782     1,593     1,944  
    Income taxes   499     170     231     33     (158 )   (123 )   627     (237 )
    Depreciation   1,460     1,497     1,402     1,361     1,148     1,185     1,542     1,219  
    Amortization – intangibles   4,482     4,345     4,096     3,499     3,743     3,384     3,343     3,570  
    EBITDA $ 3,448   $ 2,220   $ 1,316   $ 4,429   $ 1,127   $ 3,022   $ 3,340   $ 6,835  
    EBITDA Margin   11.2 %   7.6 %   4.7 %   14.0 %   4.3 %   10.3 %   11.0 %   20.7 %
                     
    Share-based Compensation   1,463     1,591     1,488     1,902     1,260     1,251     1,582     1,337  
    One Time Expenses                
    Settlements, penalties & interest   266     375     339     147     283     140     436     117  
    Acquisition and transaction costs   665     1,001     914     254     51              
    Other non-recurring expenses   385     253         86     53         633      
    Other expense (income), net   2             (10 )   1     1,800     93     (83 )
    Adjusted EBITDA $ 6,229   $ 5,440   $ 4,057   $ 6,808   $ 2,775   $ 6,213   $ 6,084   $ 8,206  
    Adjusted EBITDA Margin   20.2 %   18.6 %   14.5 %   21.5 %   10.6 %   21.2 %   20.0 %   24.8 %
                                                     

    (1)Note that first quarters are seasonally strong as recurring year-end W2/ACA revenue is recognized in this period.

    Investor Relations Contact
    Patrick McKillop
    Vice President, Investor Relations
    617-335-5058
    patrick.mckillop@asuresoftware.com 

    The MIL Network

  • MIL-OSI: Calian Announces Upcoming Participation at Investor Conference

    Source: GlobeNewswire (MIL-OSI)

    OTTAWA, Ontario, March 06, 2025 (GLOBE NEWSWIRE) — Calian® Group Ltd. (TSX:CGY), a diverse products and services company providing innovative healthcare, communications, learning and cybersecurity solutions, announced today that the Company will be participating at the following investor conference:

    37thAnnual ROTH Conference
    Date: March 17, 2025
    Location: Dana Point, CA

    About Calian

    www.calian.com

    We keep the world moving forward. Calian® helps people communicate, innovate, learn and lead safe and healthy lives. Every day, our employees live our values of customer commitment, integrity, innovation, respect and teamwork to engineer reliable solutions that solve complex challenges. That’s Confidence. Engineered. A stable and growing 40-year company, we are headquartered in Ottawa with offices and projects spanning North American, European and international markets. Visit calian.com to learn about innovative healthcare, communications, learning and cybersecurity solutions.

    Product or service names mentioned herein may be the trademarks of their respective owners.

    Investor Relations inquiries:

    ir@calian.com

    DISCLAIMER
    Certain information included in this press release is forward-looking and is subject to important risks and uncertainties. The results or events predicted in these statements may differ materially from actual results or events. Such statements are generally accompanied by words such as “intend”, “anticipate”, “believe”, “estimate”, “expect” or similar statements. Factors which could cause results or events to differ from current expectations include, among other things: the impact of price competition; scarce number of qualified professionals; the impact of rapid technological and market change; loss of business or credit risk with major customers; technical risks on fixed price projects; general industry and market conditions and growth rates; international growth and global economic conditions, and including currency exchange rate fluctuations; and the impact of consolidations in the business services industry. For additional information with respect to certain of these and other factors, please see the Company’s most recent annual report and other reports filed by Calian with the Ontario Securities Commission. Calian disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. No assurance can be given that actual results, performance or achievement expressed in, or implied by, forward-looking statements within this disclosure will occur, or if they do, that any benefits may be derived from them.

    Calian · Head Office · 770 Palladium Drive · Ottawa · Ontario · Canada · K2V 1C8
    Tel: 613.599.8600 · Fax: 613-592-3664 · General info email: info@calian.com

    The MIL Network

  • MIL-OSI: Reliance Global Group Reports 2024 Results and Provides Business Update

    Source: GlobeNewswire (MIL-OSI)

    LAKEWOOD, N.J., March 06, 2025 (GLOBE NEWSWIRE) — Reliance Global Group, Inc. (Nasdaq: RELI) (“Reliance”, “we” or the “Company”) today provided a business update and reported financial results for the year ended December 31, 2024.

    “We are pleased to report continued revenue growth and strong operational execution in 2024,” said Ezra Beyman, Chairman and Chief Executive Officer of Reliance. “This year has been truly transformative for Reliance, driven by disciplined fiscal management, strategic investments in technology, and targeted acquisitions. Our OneFirm strategy has successfully integrated our agency operations into a unified, technology-driven platform, enhancing efficiency, reducing costs, and strengthening net operating results. These initiatives have significantly improved profitability and, we believe, positioned the Company for long-term, scalable growth in the evolving InsurTech landscape.”

    “Additionally, we believe the planned Spetner acquisition and the continued expansion of RELI Exchange’s AI-powered Quote & Bind platform are poised to drive significant value for the Company and its shareholders. Our Quote & Bind platform has revolutionized the insurance purchasing process, allowing agents to quickly generate competitive quotes and seamlessly bind policies in real time. By leveraging AI, automation, and advanced data analytics, we are enhancing efficiency, improving underwriting precision, and delivering superior service to our agents and their clients.”

    2024 Financial Highlights

    • Commission income revenue increased by $322,535, or 2%, to $14,054,361 in 2024, compared to $13,731,826 in 2023, attributed to sustained organic growth of our current in-place operations.
    • Commission expense increased by $456,660, or 12%, to $4,189,599 in 2024, compared to $3,732,939 in 2023, driven primarily by the Company’s commission income revenue mix.
    • Salaries and wages decreased by 4%, or $276,242, from $7,226,810 in 2024, versus $7,503,052 in 2023, demonstrating the Company’s ability to effectively leverage its talent (human capital) and continue to organically grow revenues.
    • General and administrative expenses increased nominally by $129,646, or 3%, to $4,219,635 in 2024, versus $4,089,989 in 2023, driven in part by acquisition related costs and general inflation, but offset by OneFirm efficiency enhancements.
    • Net loss decreased by $2,938,398, or 24%, to $9,071,584 in 2024, versus $12,009,982 in 2023. This positive swing is a result of less intangible impairment charges in the current year and the Company’s focus on streamlining its balance sheet which has previously been encumbered by certain fair value contingent and warrant liabilities that were liquidated or substantially reduced as of and for the year ended December 31, 2024, thus minimizing the impact of fair value swings affecting the Company’s profitability.
    • Adjusted EBITDA loss (“AEBITDA”), a non-GAAP financial measure, improved significantly during 2024, decreasing 39% or $205,573, from $(526,798) in 2023, to $(321,224) in 2024. This demonstrates the Company’s continued trend toward AEBITDA profitability, brought about through disciplined fiscal management and exciting organic operational growth.

    The Company also provided an update on its pending Spetner acquisition, which is in the final closing stages. Once closed, the acquisition is expected to expand Reliance’s insurance offerings, further strengthening its competitive position and enhancing its ability to serve a broader market with a more comprehensive suite of insurance solutions.

    Reliance has also expanded its RELI Exchange Quote & Bind platform, reinforcing its leadership in the InsurTech space. Initially launched in beta, the platform now includes more carriers and a broader range of insurance products, with further enhancements underway. Designed to streamline agent workflows, it enables instant quoting and policy binding, improving efficiency and accelerating policy issuance. AI-driven automation enhances underwriting accuracy, while access to top-tier carriers ensures competitive pricing and diverse coverage options.

    Moshe Fishman, Reliance’s Director of InsurTech and Operations, added “At Reliance, we are revolutionizing the insurance industry through cutting-edge technology and automation. With the continued expansion of our Quote & Bind platform, we are empowering agents with advanced tools that enhance efficiency, speed up deal closures, and maximize profitability. This initiative is a cornerstone of our strategy to make RELI Exchange the most comprehensive and accessible InsurTech solution in the industry.”

    Mr. Beyman concluded, “As we look ahead, the future for Reliance has never been brighter. With our disciplined approach to expansion, cutting-edge technology, and strategic acquisitions, we are well-positioned to capitalize on emerging opportunities in the rapidly evolving InsurTech landscape. The completion of the Spetner acquisition and the ongoing enhancements to our Quote & Bind platform are just the beginning of what we believe will be a period of unprecedented growth. We remain focused on innovation, operational excellence, and delivering superior service to our agents and customers. By staying true to our vision, we are confident in our ability to build Reliance into a highly profitable enterprise that generates sustainable long-term value for our shareholders. The momentum we have built in 2024 is only the foundation—we are excited for what lies ahead in 2025 and beyond.”

    Conference Call

    Reliance Global Group will host a conference call today at 4:30 PM Eastern Time to discuss the Company’s financial results for the fourth quarter and year ended December 31, 2024, as well as the Company’s corporate progress and other developments.

    The conference call will be available via telephone by dialing toll-free +1 888-506-0062 for U.S. callers or +1 973-528-0011 for international callers and entering access code 522829. A webcast of the call may be accessed at https://www.webcaster4.com/Webcast/Page/2381/52132 or on the investor relations section of the Company’s website, https://relianceglobalgroup.com/events-and-presentations/.

    A webcast replay will be available on the investor relations section of the Company’s website at https://relianceglobalgroup.com/events-and-presentations/ through March 6, 2026. A telephone replay of the call will be available approximately one hour following the call, through March 20, 2025, and can be accessed by dialing +1 877-481-4010 for U.S. callers or +1 919-882-2331 for international callers and entering access code 52132.

    About Reliance Global Group, Inc.

    Reliance Global Group, Inc. (NASDAQ: RELI) is an InsurTech pioneer, leveraging artificial intelligence (AI), and cloud-based technologies, to transform and improve efficiencies in the insurance agency/brokerage industry. The Company’s business-to-business InsurTech platform, RELI Exchange, provides independent insurance agencies an entire suite of business development tools, enabling them to effectively compete with large-scale national insurance agencies, whilst reducing back-office cost and burden. The Company’s business-to-consumer platform, 5minuteinsure.com, utilizes AI and data mining, to provide competitive online insurance quotes within minutes to everyday consumers seeking to purchase auto, home, and life insurance. In addition, the Company operates its own portfolio of select retail “brick and mortar” insurance agencies which are leaders and pioneers in their respective regions throughout the United States, offering a wide variety of insurance products. Further information about the Company can be found at https://www.relianceglobalgroup.com.

    Forward-Looking Statements

    This press release contains forward-looking statements within the meaning of the “safe harbor” provisions of the Private Securities Litigation Reform Act of 1995. Statements other than statements of historical facts included in this press release may constitute forward-looking statements and are not guarantees of future performance, condition or results and involve a number of risks and uncertainties. In some cases, forward-looking statements can be identified by terminology such as “may,” “should,” “potential,” “continue,” “expects,” “anticipates,” “intends,” “plans,” “believes,” “estimates,” and similar expressions and include statements such as the Company having built a best-in-class InsurTech platform, making RELI Exchange an even more compelling value proposition and further accelerating growth of the platform, rolling out several other services in the near future to RELI Exchange agency partners, building RELI Exchange into the largest agency partner network in the U.S., the Company moving in the right direction and the Company’s highly scalable business model driving significant shareholder value. Actual results may differ materially from those in the forward-looking statements as a result of a number of factors, including those described from time to time in our filings with the Securities and Exchange Commission and elsewhere and risks as and uncertainties related to: the Company’s ability to generate the revenue anticipated and the ability to build the RELI Exchange into the largest agency partner network in the U.S., and the other factors described in the Company’s most recent Annual Report on Form 10-K, as the same may be updated from time to time. The foregoing review of important factors that could cause actual events to differ from expectations should not be construed as exhaustive and should be read in conjunction with statements that are included herein and elsewhere, including the risk factors included in the Company’s most recent Annual Report on Form 10-K, the Company’s Quarterly Reports on Form 10-Q, the Company’s Current Reports on Form 8-K and other filings with the Securities and Exchange Commission. The Company undertakes no duty to update any forward-looking statement made herein. All forward-looking statements speak only as of the date of this press release.

    Contact:

    Crescendo Communications, LLC
    Tel: +1 (212) 671-1020
    Email: RELI@crescendo-ir.com

    INFORMATION REGARDING A NON-GAAP FINANCIAL MEASURE

    The Company believes certain financial measures which meet the definition of non-GAAP financial measures, as defined in Regulation G of the SEC rules, provide important supplemental information. Namely our key financial performance metric Adjusted EBITDA (“AEBITDA”) is a non-GAAP financial measure that is not in accordance with, or an alternative to, measures prepared in accordance with GAAP. “AEBITDA” is defined as earnings before interest, taxes, depreciation, and amortization (EBITDA) with additional adjustments as further outlined below, to result in Adjusted EBITDA (“AEBITDA”). The Company considers AEBITDA an important financial metric because it provides a meaningful financial measure of the quality of the Company’s operational, cash impacted and recurring earnings and operating performance across reporting periods. Other companies may calculate Adjusted EBITDA differently than we do, which might limit its usefulness as a comparative measure to other companies in the industry. AEBITDA is used by management in addition to and in conjunction (and not as a substitute) with the results presented in accordance with GAAP. Management uses AEBITDA to evaluate the Company’s operational performance, including earnings across reporting periods and the merits for implementing cost-cutting measures. We have presented AEBITDA solely as supplemental disclosure because we believe it allows for a more complete analysis of results of operations and assists investors and analysts in comparing our operating performance across reporting periods on a consistent basis by excluding items that we do not believe are indicative of our core operating performance. Consistent with Regulation G, a description of such information is provided below herein and tabular reconciliations of this supplemental non-GAAP financial information to our most comparable GAAP information are contained below.

    We exclude the following items when calculating Adjusted EBITDA, and the following items define our non-GAAP financial measure “AEBITDA”:

      Interest and related party interest expense: Unrelated to core Company operations and excluded to provide more meaningful supplemental information regarding the Company’s core operational performance.
      Depreciation and amortization: Non-cash charge, excluded to provide more meaningful supplemental information regarding the Company’s core operational performance.
      Goodwill and/or asset impairments: Non-cash charge, excluded to provide more meaningful supplemental information regarding the Company’s core operational performance.
      Equity-based compensation: Non-cash compensation provided to employees and service providers, excluded to provide more meaningful supplemental information regarding the Company’s core cash impacted operational performance.
      Change in estimated acquisition earn-out payables: An earn-out liability is a liability to the seller upon an acquisition which is contingent on future earnings. These liabilities are valued at each reporting period and the changes are reported as either a gain or loss in the change in estimated acquisition earn-out payables account in the consolidated statements of operations. The gain or loss is non-cash, can be highly volatile and overall is not deemed relevant to ongoing operations, thus, it’s excluded to provide more meaningful supplemental information regarding the Company’s core operational performance.
      Recognition and change in fair value of warrant liabilities: This account includes changes to derivative warrant liabilities which are valued at each reporting period and could result in either a gain or loss. The period changes do not impact cash, can be highly volatile, and are unrelated to ongoing operations, and thus are excluded to provide more meaningful supplemental information regarding the Company’s core operational performance.
      Other income (expense), net: Includes non-routine income or expenses and other individually de minimis items and is thus excluded as unrelated to core operations of the company.
      Transactional costs: This includes expenses related to mergers, acquisitions, financings and refinancings, and amendments or modification to indebtedness. Thes costs are unrelated to primary Company operations and are excluded to provide more meaningful supplemental information regarding the Company’s core operational performance.
      Non-standard costs: This account includes non-standard non-operational items, related to costs incurred for a legal suit the Company has filed against one of the third parties involved in the discontinued operations and was excluded to provide more meaningful supplemental information regarding the Company’s core operational performance.
      Loss from discontinued operations before tax: This account includes the net results from discontinued operations, and since discontinued, are unrelated to the Company’s ongoing operations and thus excluded to provide more meaningful supplemental information regarding the Company’s core operational performance.
         

    The following table provides a reconciliation from net loss to AEBITDA for the periods ended December 31, 2024 and 2023, respectively:

        December 31,
    2024
        December 31,
    2023
     
    Net loss   $ (9,071,584 )   $ (12,009,982 )
    Adjustments:                
    Interest and related party interest expense     1,583,610       1,656,253  
    Depreciation and amortization     1,786,068       2,609,191  
    Asset impairment     3,922,110        
    Goodwill impairment           7,594,000  
    Equity-based compensation employees, directors, and service providers     858,108       1,272,155  
    Change in estimated acquisition earn-out payables     47,761       1,716,873  
    Other income, net     (51,345 )     (6,530 )
    Transactional costs     636,494       101,500  
    Non-standard costs     123,554       58,675  
    Recognition and change in fair value of warrant liabilities     (156,000 )     (5,503,647 )
    Loss from discontinued operations before tax           1,984,714  
    Total adjustments     8,750,360       11,483,185  
                     
    AEBITDA   $ (321,224 )   $ (526,798 )

    The MIL Network

  • MIL-OSI: Five Star Bank Appoints Eric Marks Chief Consumer Banking Officer

    Source: GlobeNewswire (MIL-OSI)

    WARSAW, N.Y., March 06, 2025 (GLOBE NEWSWIRE) — Financial Institutions, Inc. (NASDAQ: FISI), parent company of Five Star Bank (“Five Star” or the “Bank”) and Courier Capital, LLC, announced that Eric W. Marks has joined as Senior Vice President, Chief Consumer Banking Officer of the Bank.

    As Chief Consumer Banking Officer, Mr. Marks will have executive leadership and strategic oversight of the Bank’s consumer lines of business, including Retail Banking, Residential Mortgage, and Small Business Banking, as well as its Customer Contact Center and Collections departments. Mr. Marks’ deep banking experience, which includes many facets of consumer banking leadership, financial oversight and strategic planning, will serve him well as he looks to drive sustainable customer growth and customer-service excellence in Five Star’s retail network and its 49 banking locations across Western and Central New York. Mr. Marks will report to President and CEO Martin K. Birmingham and join the Company’s Executive Management Committee.

    “We are thrilled to welcome Eric Marks to Five Star Bank,” said Mr. Birmingham. “His deep understanding of all aspects of consumer banking, as well as his local roots and familiarity with our markets, will be very valuable as he supports the continued evolution, growth and, ultimately, the long-term success of our consumer banking offerings.”

    Mr. Marks commented, “I am excited to join a community bank like Five Star, which has a deep history here in Upstate New York. I look forward to being a part of its continued success as we focus on delivering a simple, connected and trusted banking experience in our markets, and helping our customers and communities thrive.”

    Mr. Marks joins Five Star from M&T Bank, where he had most recently served as its Retail Segment Chief Financial Officer. During his 19-year tenure at M&T, Mr. Marks held roles of increasing responsibility in several enterprise functions and lines of business, including corporate and consumer strategy, mortgage, branch distribution planning, consumer deposit pricing and portfolio management, as well as consumer indirect lending.

    Mr. Marks, who is based at Five Star Bank Centre in Amherst, N.Y., earned his bachelor’s degree from Mercyhurst University and his M.B.A. from the University at Buffalo. He has also completed an executive leadership course at the University of Michigan’s Ross School of Business. Mr. Marks has a long history of community volunteerism, previously serving on the boards of the Orchard Park Little League, the Orchard Park Boys and Girls Club, Western New York Heritage Press, and more.

    About Financial Institutions, Inc. and Five Star Bank
    Financial Institutions, Inc. (NASDAQ: FISI) is a financial holding company with approximately $6.1 billion in assets as of December 31, 2024, offering banking and wealth management products and services. Its Five Star Bank subsidiary provides consumer and commercial banking and lending services to individuals, municipalities and businesses through banking locations spanning Western and Central New York and a commercial loan production office serving the Mid-Atlantic region. Courier Capital, LLC offers customized investment management, financial planning and consulting services to individuals and families, businesses, institutions, non-profits and retirement plans. Learn more at Five-StarBank.com and FISI-Investors.com.

    Safe Harbor Statement
    This press release may contain forward-looking statements as defined by Section 21E of the Securities Exchange Act of 1934, as amended, that involve significant risks and uncertainties. In this context, forward-looking statements often address our expected future business and financial performance and financial condition, and often contain words such as “believe,” “anticipate,” “continue,” “estimate,” “expect,” “focus,” “”intend,” “may,” “plan,” “preliminary,” “should,” or “will.” Statements herein are based on certain assumptions and analyses by the Company and factors it believes are appropriate in the circumstances. Actual results could differ materially from those contained in or implied by such statements for a variety of reasons including, but not limited to: changes in interest rates; inflation; changes in deposit flows and the cost and availability of funds; the Company’s ability to implement its strategic plan, including by expanding its commercial lending footprint and integrating its acquisitions; whether the Company experiences greater credit losses than expected; whether the Company experiences breaches of its, or third party, information systems; the attitudes and preferences of the Company’s customers; legal and regulatory proceedings and related matters, including any action described in our reports filed with the SEC, could adversely affect us and the banking industry in general; the competitive environment; fluctuations in the fair value of securities in its investment portfolio; changes in the regulatory environment and the Company’s compliance with regulatory requirements; and general economic and credit market conditions nationally and regionally; and the macroeconomic volatility related to the impact of a pandemic or global political unrest. Consequently, all forward-looking statements made herein are qualified by these cautionary statements and the cautionary language and risk factors included in the Company’s Annual Report on Form 10-K, its Quarterly Reports on Form 10-Q and other documents filed with the SEC. Except as required by law, the Company undertakes no obligation to revise these statements following the date of this press release.

    For additional information contact:
    Kate Croft
    Director, Investor and External Relations
    716-817-5159
    klcroft@five-starbank.com

    A photo accompanying this announcement is available at https://www.globenewswire.com/NewsRoom/AttachmentNg/45b81392-4098-491e-a8f4-0824ccb09934

    The MIL Network

  • MIL-OSI United Nations: Leveraging South-South and triangular cooperation: inclusive and technological innovations for urban health and disaster risk reduction

    Source: UNISDR Disaster Risk Reduction

    Time: 8:00 New York | 13:00 Geneva | 19:00 Bangkok | 21:00 Incheon 
    Date: 12, 19, 26 March 2025 (Wednesdays)
    (Three 120-minute online sessions and one post-course survey)
    Workshop Language: English with simultaneous interpretation in Arabic, Chinese, French, Portuguese, Russian, Spanish and International Sign Language.

    Background

    Resilient and inclusive cities are key to achieving global commitments such as the 2030 Agenda for Sustainable Development, the Sendai Framework for Disaster Risk Reduction, and the Paris Agreement on Climate Change. These cities ensure no one is left behind by actively involving all community members, particularly marginalized groups like persons with disabilities, older persons, among others in resilience planning and decision-making. The Sendai Framework emphasizes that inclusive disaster risk reduction (DRR) is essential for effective risk management, while the 2030 Agenda highlights the importance of inclusivity in achieving Sustainable Development Goal 11, which aims to make cities inclusive, safe, resilient, and sustainable. The Pact for the Future (2024) further underscores the need to empower all individuals, regardless of their background, to contribute meaningfully to the design and implementation of urban resilience strategies.

    Technological solutions play a crucial role in disaster risk reduction and management by enhancing early warning systems, real-time monitoring, and rapid response capabilities. Countries and cities are increasingly adopting and sharing innovative solutions, such as satellite-based remote sensing, AI-powered predictive analytics, and IoT-enabled sensors, to detect hazards and improve disaster preparedness. Collaborative initiatives, including joint research, technology transfers, and capacity-building programs, enable developing countries to leverage cost-effective, context-specific innovations. Mobile applications, digital communication platforms, and drone technology—often co-developed through South-South and Triangular Cooperation—enhance response efforts, fostering resilience and data-driven decision-making across at-risk regions.

    In addition to these principles, South-South and Triangular Cooperation (SSTC) offers valuable opportunities to foster knowledge sharing, capacity building, and technology exchange among countries in the Global South. The Buenos Aires outcome document of BAPA+40 (2019) underscores the role of local authorities, women, and youth in advancing South-South and Triangular Cooperation and promoting inclusive societies to achieve sustainable development. By leveraging South-South and Triangular Cooperation, cities can adopt innovative solutions to address disaster risks, including the use of technology for early warning systems, data analytics, and inclusive infrastructure design. This approach aligns with global efforts, such as WHO’s Healthy Cities initiative, which integrates public health into urban planning to enhance resilience, inclusivity, and well-being. Through South-South and Triangular Cooperation, the use of technology, and a focus on inclusivity, cities can strengthen their disaster risk reduction capacities and better prepare for challenges such as climate change, urbanization, and other emerging risks.

    Since 2020, UNOSSC, UNDRR GETI, PAHO/WHO have jointly organized four certificate online training programmes. These programs focused on leveraging South-South and Triangular Cooperation, disaster risk reduction, and integrating health emergency response and preparedness into building resilient cities and societies, addressing various phases of the COVID-19 pandemic, including outbreak response, emergency management, and recovery. The training series has been highly successful, attracting over 9,800 live session participants and over 6,500 self-paced learners from 155 countries and territories.

    Building on its success, the fifth joint training will be held in March 2025 by UNDRR, UNOSSC and PAHO/WHO, aiming to provide a foundation for engaging multi-level governments and diverse stakeholders, particularly the most at-risk groups—such as women, older persons, and person with disabilities—in disaster risk reduction, health emergency, and disaster risk management. The course will emphasize the importance of a whole-of-society approach, the use of technology, and the facilitation of South-South and Triangular Cooperation in creating inclusive, resilient and healthy cities, featuring practical tools and examples.  

    Course Objective:

    This training serves as an introductory training for urban leaders, planners, and practitioners, aiming to:

    • Increase awareness and understanding for managing complex urban disaster risks, health emergencies, and disaster risk management, leveraging technology, and facilitating South-South and Triangular Cooperation;
    • Introduce useful concepts and tools to strengthen inclusion, especially the inclusion of persons with disabilities and older persons in urban disaster risk management;
    • Better prepare city stakeholders and engage them in making cities resilient and inclusive for future crises, health and non-health emergencies and uncertainties;
    • Facilitate learning through South-South and Triangular Cooperation and sharing of experience; 
    • Inspire and motivate whole-of-society to play a key and active role in securing resilient, inclusive and sustainable urban futures.

    Expected outcome:

    By the end of this training, participants shall be able to:

    • Describe disaster risk reduction, health emergency and disaster risk management, South-South and Triangular Cooperation, use of technology, and the whole-of-society approach for creating inclusive, resilient and healthy cities;
    • Apply concepts and tools such as the Disaster Resilience Scorecard for Cities – Inclusion of Persons with Disabilities, the Disability Inclusion in Hospital Disaster Risk Management Tool (INGRID-H), and health facilities strategic risk assessment;
    • Provide examples of good practices and relevant solutions by local government authorities and diverse stakeholders in inclusive and technology-driven disaster risk reduction, health emergency response preparedness, and South-South and Triangular Cooperation.

    Targeted Audience

    Local and national government officials in charge of disaster risk reduction and management, urban development and planning and public health emergency preparedness, national associations of municipalities, urban resilience and development practitioners, as well as civil society, private sector, and academia.

    The course is open to all participants from both developed and developing countries. Participants from Least Developed Countries (LDCs) and Small Island Developing States (SIDs) are highly encouraged.

    No. of Trainees: 

    Maximum 1,000 participants can attend the live training sessions, on a first come first served basis. 

    Facilitators:

    Experts from UNDRR, UNOSSC, and PAHO with guest speakers representing various stakeholder groups, e.g., older persons, youth, women, person with disabilities, local and national governments, and academic network.

    Post-course Survey

    To enable evidence-based course evaluation, a post-course survey will be disseminated to participants to collect feedback on the course content and organization, as well as understanding participants’ development needs for follow-up and to facilitate future programmatic designing.

    Certificate:

    Certificate of participation will be given only to participants who attend all three training sessions live and complete a post-course survey. 

    Programme

    Date Program

    Wed, 12 Mar 2025

    8 AM NY EST

    9 PM KST

    (120 minutes)

    Session 1: Inclusion of Persons with Disabilities in Disaster Risk Reduction (led by UNDRR)

    • Welcome Remarks by UNOSSC, PAHO and UNDRR
    • Course introduction
    • Introduction to Disaster risk reduction (DRR), urban resilience and Making Cities Resilient 2030 (MCR2030)
    • Disability Inclusive Disaster Risk Reduction (DiDRR)
    • Practical tool for strengthening meaningful participation and accessibility of persons with disabilities in DRR
    • Case examples and experience sharing from local governments and stakeholders
    • Mini quiz

    Wed, 19 Mar 2025

    8 AM NY EST

    9 PM KST

    (120 minutes)

    Session 2: Older Persons and Disability Inclusive Urban Health Emergencies and Disaster Risk Management (led by PAHO/WHO)

    • Welcome & introduction
    • Mini quiz
    • Resilient Cities for All: Addressing Health Emergencies and Disaster Risks for the older persons
    • Disability Inclusion in Health Facilities Disaster Risk Management

    Wed, 26 Mar 2025

    8 AM NY EST

    9 PM KST

    (120 minutes)

    Session 3: Leveraging Technological Innovation for Urban Disaster Risk Reduction and Management (led by UNOSSC)

    • Welcome & introduction
    • Panel Presentations
    • Q&A and Panel conclusion
    • Training Wrap-up
    • Closing Remarks by UNOSSC, PAHO and UNDRR

    Organizers

    The United Nations Office for Disaster Risk Reduction (UNDRR) Global Education and Training Institute (GETI) was established in 2010 to develop a new cadre of professionals in disaster risk reduction and climate change adaptation to build disaster resilient societies. GETI has a global mandate to provide capacity building support to mainstream disaster risk reduction and climate change adaptation into sustainable development; convene and support inter-city learning to strengthen resilience (Making Cities Resilient); and to provide capacity building and best practice sharing support to national training institutions working on resilience issues. Based in Incheon, the Republic of Korea, UNDRR GETI is also the global secretariat of the Making Cities Resilient 2030 (MCR2030).

    The United Nations Office for South-South Cooperation (UNOSSC) was established to promote, coordinate and support South-South and triangular cooperation (SSTC) globally and within the United Nations system. UNOSSC initiated the “Global South-South Development Center Phase II” (2025-2030), with full funding support from the Government of China, which aims to facilitate practical SSTC initiatives globally in advancing the Sustainable Development Goals (SDGs).

    Pan American Health Organization (PAHO/WHO) Health Emergencies Department works with countries of the American Region to increase the health sector resilience to emergencies and disasters. PAHO’s priority is to deliver rapid, predictable, and comprehensive support to Member States in terms of prevention, risk reduction, preparedness, surveillance, response, and early recovery in case of any threat to human health, including outbreaks or disasters caused by natural phenomena, biological, chemical or radiological agent, human activities, conflicts or any other hazard. When national capacities are overwhelmed, PAHO is ready to lead and coordinate the international health response to contain disasters, including outbreaks, and to provide effective relief and recovery to affected populations. 

    For more information, contact:

    MIL OSI United Nations News

  • MIL-OSI Europe: MOTION FOR A RESOLUTION on the white paper on the future of European defence – B10-0149/2025

    Source: European Parliament

    Reinis Pozņaks, Adam Bielan, Rihards Kols, Cristian Terheş, Alberico Gambino, Alexandr Vondra, Aurelijus Veryga, Jadwiga Wiśniewska, Joachim Stanisław Brudziński, Michał Dworczyk, Roberts Zīle, Sebastian Tynkkynen, Bogdan Rzońca, Carlo Fidanza, Ondřej Krutílek, Veronika Vrecionová, Geadis Geadi
    on behalf of the ECR Group

    B10‑0149/2025

    European Parliament resolution on the white paper on the future of European defence

    (2025/2565(RSP))

    The European Parliament,

     having regard to the ‘Strategic Compass for Security and Defence – For a European Union that protects its citizens, values and interests and contributes to international peace and security’, which was approved by the Council on 21 March 2022 and endorsed by the European Council on 25 March 2022,

     having regard to the national security strategies of the Member States,

     having regard to Council Decision (CFSP) 2017/2315 of 11 December 2017 establishing permanent structured cooperation (PESCO) and determining the list of participating Member States[1],

     having regard to Regulation (EU) 2021/697 of the European Parliament and of the Council of 29 April 2021 establishing the European Defence Fund and repealing Regulation (EU) 2018/1092[2],

     having regard to Regulation (EU) 2023/1525 of the European Parliament and of the Council of 20 July 2023 on supporting ammunition production (ASAP)[3],

     having regard to Regulation (EU) 2023/2418 of the European Parliament and of the Council of 18 October 2023 on establishing an instrument for the reinforcement of the European defence industry through common procurement (EDIRPA)[4],

     having regard to European Court of Auditors (ECA) special report 04/2025 of 6 February 2025 entitled ‘EU military mobility – Full speed not reached due to design weaknesses and obstacles en route’[5],

     having regard to the report by Enrico Letta of 18 April 2024 entitled ‘Much more than a market’, and in particular the section ‘Promoting peace and enhancing security: towards a Common Market for the defence industry’,

     having regard to the report by Mario Draghi of 9 September 2024 entitled ‘The future of European competitiveness’, and in particular chapter four thereof, ‘Increasing security and reducing dependencies’,

     having regard to the report by Sauli Niinistö of 30 October 2024 entitled ‘Safer Together – Strengthening Europe’s Civilian and Military Preparedness and Readiness’,

     having regard to the North Atlantic Treaty,

     having regard to the Madrid Summit Declaration issued by NATO heads of state or government participating in the meeting of the North Atlantic Council in Madrid on 29 June 2022,

     having regard to the NATO 2022 Strategic Concept of 29 June 2022 and the Vilnius Summit Communiqué issued by NATO heads of state and government participating in the meeting of the North Atlantic Council in Vilnius on 11 July 2023,

     having regard to the three joint declarations on EU-NATO cooperation signed on 8 July 2016, 10 July 2018 and 10 January 2023,

     having regard to the Washington Summit Declaration issued by the NATO heads of state or government participating in the North Atlantic Council in Washington, D.C. on 10 July 2024,

     having regard to Rule 136(2) of its Rules of Procedure,

    A. whereas, following the deteriorating geopolitical context and security environment in recent years, the strengthening of European defence, the bolstering of Europe’s operational capabilities and the ramping up of defence production are key initiatives that must be undertaken for ensuring peace, fostering development and strengthening unity between citizens and the Member States, and will contribute decisively to peace on our continent and towards ensuring the long-term security of Ukraine;

    B. whereas the recognition that Russia is the most significant threat to Europes security for the foreseeable future is paramount, and all Member States must therefore ensure a widespread increase in defence production and operational capabilities in order to ensure that credible deterrence is restored on the European continent, while simultaneously recognising that the instability in the southern neighbourhood must be fully taken into consideration;

    C. whereas, in light of the worsening external environment and despite the efforts made in recent years to enhance the EU’s crisis preparedness through new legislation, mechanisms and tools across various policy areas, the EU and its Member States remain vulnerable to multiple crisis scenarios;

    D. whereas the Commissioner for Defence and Space, Andrius Kubilius, and the Vice-President of the Commission / High Representative of the Union for Foreign Affairs and Security Policy, Kaja Kallas, have been jointly tasked with producing a white paper on the future of European defence within the first 100 days of the mandate of the new Commission; whereas this paper aims to move from political objectives expressed in general terms to specific and quantifiable objectives, and to constitute an element of defence planning;

    E. whereas the timing of the white paper may coincide with a review of the Strategic Compass threat analysis, as well as with possible proposals for a revision of the Strategic Compass, as the majority of its commitments are due for completion by 2025;

    F. whereas the white paper’s principal focus must be to outline a clear plan for how the Member States can address and overcome their growing need for greater financial, operational and logistical resources for their national armed forces and intelligence services;

    G. whereas the white paper must ensure that an effective and financeable strategy that counters hybrid warfare can be realised, particularly one that counters the ongoing attacks on subsea infrastructure that are essential for global energy transport and digital communications, as approximately 99 % of global data traffic is reliant on undersea fibre-optic cables;

    H. whereas the undersea network of the Member States consists of 39 such cables, ensuring connectivity across the Mediterranean, North Sea and Baltic Sea; whereas recent undersea cable disruptions are often dismissed as maritime accidents; whereas emerging technologies and rapid advancements in autonomous underwater drones and deep-sea espionage capabilities create key vulnerabilities that are being exploited by hostile state and non-state actors;

    I. whereas the white paper must ensure complementarity with NATO’s Strategic Concept as NATO is and must remain the principal security guarantor for the Euro-Atlantic area;

    1. Reiterates its firm support for initiatives aimed at strengthening the European defence and deterrence capacity, addressing hybrid and cyber threats, promoting industrial cooperation in the defence sector, and providing the Member States and their allies with high-quality defence products in the required quantities and at short notice; underlines that these objectives require vision, concreteness and shared commitments, both in the strictly military field and in the industrial, technological and intelligence sectors;

    2. Emphasises that the EU must adopt a comprehensive, all-encompassing approach to civilian and military preparedness and readiness, involving both government and society as a whole, as European defence is confronted with increasingly complex challenges that demand a shift in approach, in particular regarding artificial intelligence (AI), cybersecurity and multi-domain operational strategies; considers the importance of strengthening cooperation with NATO and like-minded countries and engaging with the United States to increase the resilience of the transatlantic relationship;

    3. Expects the white paper on the future of European defence to differentiate between short-term and long-term plans and objectives, to predominantly address defence sector capability issues, industrial competitiveness and investment needs, as well as to frame the overall approach to EU defence integration, with the aim of strengthening the Member States’ abilities to respond to threats – particularly in the context of Russia’s continuing war of aggression in Ukraine, combined with evolving geopolitical challenges to Europe’s southern flank, and increased military capabilities of hostile state and non-state actors – reinforce EU-NATO cooperation, ensure more efficient Member State defence spending, improve coordination between the Member States, and strengthen strategic partnerships while prioritising the transatlantic relationship;

    4. Underlines that Europe must take on greater responsibility and welcomes the fact that higher Member State investment in defence is already accelerating the consolidation of the EU’s Defence Technological and Industrial Base (EDTIB), which includes a number of large multinational companies, mid-caps and over 2 000 small and medium-sized enterprises (SMEs); stresses that the different EU initiatives and regulations should work together to incentivise this process, rather than presenting obstacles; underlines the importance of improving coherence and coordination between EU instruments and programmes of common European interest for defence;

    5. Reiterates, in this regard, that it will also be important to promptly adopt the European defence industry programme (EDIP), in order to support the European defence industrial strategy (EDIS), adopted in March 2024, which aims to enhance the EU’s defence readiness and specifically its industrial capacity;

    6. Encourages the expansion of financial support to future European defence spending initiatives that promote the mass development of operational capabilities and strategic enablers, along with a robust enhancement of civil defence infrastructure to ensure the national resilience of the Member States;

    7. Welcomes the announcement of the proposal for the exemption of defence spending from EU limitations on public spending – a first, fundamental step in the right direction;

    8. Recalls that on 31 January 2025, 19 of the Member States sent a letter urging the European Investment Bank (EIB) to take a stronger role in financing security and defence, in particular re-evaluating the EIB’s list of excluded activities, increasing funding for defence-related investments and exploring the issuance of ‘defence bonds’;

    9. Calls on the EIB to further review its policy on defence investment; welcomes the EIB’s decision to update the definition of eligible dual-use projects, but notes that its lending policy still excludes the financing of ammunition and weapons, as well as equipment or infrastructure exclusively dedicated to military use; underlines that more should be done to enable access to financing and facilitate the de-risking of defence projects across the financial institutions;

    10. Urges the Member States to support the establishment of a defence, security and resilience bank to serve as a multilateral lending institution designed to provide low-interest, long-term loans that can support key national security priorities such as rearmament, defence modernisation, rebuilding efforts in Ukraine and the buying back of critical infrastructure currently owned by hostile non-EU countries;

    11. Encourages EU defence actions aimed at supporting, initiating and incentivising better Member State coordination as Member States are the principal customers of defence equipment, and stresses that any EU initiative for defence must aim to reach a critical mass of capability development, support an appreciable share of Europe’s overall defence investments and support its defence industrial tools with financial means that have a structural effect, without coming at the expense of national defence spending;

    12. Encourages the Member States to promote cooperation between different European defence firms to encourage the combining of resources and competencies, in order to spur innovation and the development of modern military equipment;

    13. Considers that the strategic environments in which many EU common security and defence policy (CSDP) missions are present are radically deteriorating, with an ongoing war of aggression by Russia in Ukraine and its spillover effect into Moldova and the South Caucasus, a wave of coup d’états in the Sahel region and renewed terrorist campaigns in Somalia and Mozambique, all of which demonstrate the need for the white paper to ensure flexibility in a 360 degree approach to European security that strives towards building a credible and capable deterrence capacity for the Member States, and ensures that Member State civilian and military personnel can deter and respond rapidly to the growing threat environment;

    14. Recognises that the current geopolitical paradigm is the result of decades of underinvestment in European security and over-reliance on allies and partners; considers it a key priority of the white paper to outline an actionable plan to revitalise and advance deterrence along the periphery of Europe with a combination of joint civilian and military training missions that specialise in combined arms training, counter-unmanned aerial vehicle (C-UAV) and counter-improvised explosive device (C-IED) capabilities, and enhance interoperability and interchangeability among the Member States and non-EU countries;

    15. Calls for the white paper to ensure that the CSDP’s access to planning, resources and logistics is utilised in a manner that permits the CSDP to become the primary enabler of civilian crisis management during emergencies, and can be used as a practice hub for societal resilience and recovery in the face of both human-induced and natural disasters;

    16. Stresses that the white paper should promote close coordination between the EU and NATO to aid our collective defence and deterrence efforts, as well as the alliance’s effort to promote cooperative security through defence capacity-building and its open door policy;

    17. Calls for the white paper to outline how the EU and NATO should collaborate on building an integrated approach to the Black Sea, with a view to strengthening partnership in the areas of security, energy and connectivity; calls for the EU to redouble joint efforts by the EU and NATO to strengthen the deterrence and resilience of the Eastern Partnership countries by developing maritime defence capabilities, enhancing maritime interoperability, providing capabilities to deter and defend against cyber intrusions and attacks, expanding intelligence-sharing and maintaining modern outfitting of national armed forces;

    18. Highlights that Russia’s aggression against Ukraine and Iran’s aggression against Israel have demonstrated the use of drones at an unprecedented scale in modern warfare, urges the Member States to utilise the European Peace Facility, Permanent Structured Cooperation, the European Defence Agency and other available and future instruments to ensure that investment, development and joint procurement of counter unmanned aerial systems (C-UAS) and airborne electronic attack (AEA) equipment are prioritised, and to integrate C-UAS and AEA into the strategic doctrine of CSDP military training missions;

    19. Concurs with the ambition of enhancing the European pillar within NATO, with a view to augmenting strategic complementarity, by increasing the amount and range of NATO advanced training courses between European allies and partners to ensure that the Member States close the gap with the United States in operational capabilities and effectiveness; stresses that the development of EU operational capabilities can go hand in hand with the deepening of EU-NATO cooperation;

    20. Emphasises that the rise of asymmetric transnational threats has increasingly blurred the distinction between external and internal security, as well as between military and non-military security, and that this shifting landscape necessitates a comprehensive and adaptive approach to security at EU level; underlines that the Member States’ increases in defence spending should be complementary to the EU’s overall security strategy, which must evolve in response to changes in the strategic environment;

    21. Recognises that NATO and leading allies such as the United States and the United Kingdom are playing a crucial role in coordinating and leading the efforts to support Ukraine militarily not only with weapons, ammunition and equipment, but also intelligence and data; considers Russia’s ongoing war of aggression as further evidence that the most important countries for European security remain the United States and United Kingdom, as the war continues to reveal profound structural faults in EU security and defence architecture and unacceptable shortfalls in its capabilities;

    22. Highlights the need to ensure the security of the Black Sea region by assisting in the demining of Ukraine’s seawaters and to encourage the Member States to offer joint training exercises in this regard, with an emphasis on the development of maritime mine counter measure capabilities and critical seabed infrastructure protection;

    23. Underlines the importance of undersea cables and in this regard expresses worry about the recent series of cable disruptions in the Baltic Sea, which raise concerns about hybrid warfare tactics, particularly plausible deniability in state-sponsored sabotage; recalls that Russia’s increased naval presence, also through its shadow fleet, in European waters, highlights the vulnerabilities of seabed infrastructure; stresses the need to expand NATO and EU naval coordination for Baltic Sea patrols, enhance surveillance and defensive capabilities, increase investment in undersea surveillance technologies and strengthen partnerships with private telecom and energy companies for real-time monitoring of undersea threats;

    24. Encourages the Member States to provide specialised opportunities for SMEs in the European defence sector so they have the capacity to participate in the bidding process via measures such as creating a pre-approved list of companies to facilitate a speedier engagement process, introducing private equity firms that invest in SMEs into the procurement process, assisting SME growth through incubation and capital investment, reducing the complexities of bidding for contracts, and devising an internal effort to reform the amount of time taken to address contract details;

    25. Encourages the Member States to support binding commitments in their defence budgets that ensure a minimum expenditure in the field of research and development spending, in order to ensure that SME engagement and a spillover effect into the civilian marketplace can be tangibly supported;

    26. Emphasises that the Member States’ ambitions to achieve defence readiness should also be advanced through partnerships and prioritise, where possible, the integration of the Ukrainian Defence Technological and Industrial Base into the wider European Defence Technological and Industrial Base (EDTIB) and transatlantic defence technological and industrial cooperation, with a particular emphasis on joint drone and munitions development;

    27. Encourages initiatives such as the EU’s Act in Support of Ammunition Production (ASAP) to serve as a standard for advancing the much-needed increase in munitions and capabilities required for our armed forces, using ASAP as a basis for combining credible and effective multi-domain conventional force capabilities, missile defences, space support, drone development and various other key capabilities as outlined in the EDA’s Capability Development Plan;

    28. Stresses that the white paper must include an outline of institutional reforms that reinforce changes in procurement regulations and intellectual property frameworks, as well as leveraging tax incentives to promote defence-related innovation; emphasises that any such changes must be designed to ensure speed and efficiency within the procurement process and management life cycle of Member State weapons systems;

    29. Encourages speedy financing for enhancing military mobility in a manner that guarantees the upgrading of infrastructure for dual-use military and civilian purposes, contributes to the EU’s defence capabilities and realises a fully operational military Schengen area; underlines that such investments offer significant economic and security benefits; calls on the Commission to act on the recommendations of the 2025 ECA special report on military mobility and to give greater importance to the military assessment during the selection process for dual-use projects;

    30. Stresses that military mobility requires the elimination of regulatory bottlenecks that hinder the delivery of capabilities and limit the investment required to modernise defence capabilities and improve military mobility; emphasises, therefore, that the removal of obstacles, implementation of flow-monitoring and optimisation of systems for addressing cross-border threats are crucial and must be reflected in the white paper;

    31. Urges the Commission to consider financing that ensures that anti-access/area denial capabilities and civil-military fusion are prioritised within any infrastructure development objectives, particularly along the eastern flank;

    32. Supports initiatives for industrial reinforcement actions that benefit SMEs or mid-caps, demonstrate a contribution to the creation of new forms of cross-border cooperation or involve the creation of new infrastructure, facilities or production lines, or the establishment of new or the ramping-up of existing manufacturing capacities of crisis-relevant products;

    33. Encourages the Member States to prioritise the pre-deployment of personnel and capabilities in support of the eastern flank, combined with a follow-on forces and rapid deployment capability that ensures effective border security and deterrence against both hybrid warfare and Russian military manoeuvres;

    34. Underlines the Arctic’s strategic importance within the EU’s defence framework, underscoring the need for strengthened deterrence and defence capabilities in close coordination with NATO; emphasises that this cooperation is essential to address the intensifying militarisation and resource competition operated by Russian and Chinese activities in the region, and to counterbalance their expanding influence and military presence;

    35. Encourages the Member States to ensure closer synergies with national joint training and evaluation centres in Eastern Partnership countries, while also ensuring that there is widespread Member State representation in CSDP missions throughout the Eastern Partnership region, and to encourage greater participation of non-EU countries in these missions, particularly non-EU countries that have hosted successfully completed CSDP missions;

    36. Considers outer space to be an increasingly contested area, with the weaponisation of space on the rise, space security becoming an ever more critical and contested issue, and a growing rush to militarise space infrastructure; highlights the need to prioritise the defence and security of space as a critical part of Europe’s defence, and underscores the importance of securing Europe’s space capabilities and infrastructure, both on land and in orbit, to ensure continuous, secure access to data and communications;

    37. Recognises the important role that emerging disruptive technologies such as quantum computing and AI will play in our future relations with Russia and China, and calls for increasing Europe’s resilience to emerging disruptive technologies in all CSDP missions and operations;

    38. Considers that hybrid threats in the years to come will see the systematic combination of information warfare, agile combat manoeuvres, mass cyber warfare and emerging and disruptive technologies from seabed to space, with both advanced air-breathing and space-based surveillance and strike systems deployed, all of which will be enabled by advanced AI, quantum computing, increasingly ‘intelligent’ drone swarm technologies, offensive cyber capabilities, hypersonic missile systems, and nanotech and bio-warfare;

    39. Underlines the importance of civil defence and preparedness in the medium and long term, including the need to establish adequate civil protection infrastructure and planning for emergency situations; calls for the EU, its Member States and local governments to ensure the necessary investments for those purposes and a dedicated investment guarantee programme within the EIB for crisis-proofing and civil defence infrastructure;

    40. Instructs its President to forward this resolution to the European Council, the Council, the Commission, in particular the President of the Commission, the Commissioner for Defence and Space and the other competent Commissioners, the Vice-President of the Commission / High Representative of the Union for Foreign Affairs and Security Policy, the UN Secretary-General, the NATO Secretary General, the President of the NATO Parliamentary Assembly, the EU security and defence agencies and the governments and parliaments of the Member States and partner countries.

     

    MIL OSI Europe News

  • MIL-OSI Europe: MOTION FOR A RESOLUTION on the white paper on the future of European defence – B10-0146/2025

    Source: European Parliament

    Rasa Juknevičienė, Nicolás Pascual de la Parte, Riho Terras, Michael Gahler, David McAllister, Sebastião Bugalho, Andrzej Halicki
    on behalf of the PPE Group

    B10‑0146/2025

    European Parliament resolution on the white paper on the future of European defence

    (2025/2565(RSP))

    The European Parliament,

     having regard to the Treaty on the Functioning of the European Union (TFEU),

     having regard to Title V of the Treaty on European Union (TEU), in particular Chapter Two, Section Two thereof on provisions on the common security and defence policy (CSDP),

     having regard to the Versailles Declaration adopted on 11 March 2022 at the informal meeting of Heads of State or Government,

     having regard to the Strategic Compass for Security and Defence – For a European Union that protects its citizens, values and interests and contributes to international peace and security, which was approved by the Council on 21 March 2022 and endorsed by the European Council on 24 March 2022,

     having regard to the national security strategies of the Member States,

     having regard to the Civilian CSDP Compact – Towards more effective civilian missions, approved by the Council on 22 May 2023,

     having regard to Council Decision (CFSP) 2022/1968 of 17 October 2022 on a European Union Military Assistance Mission in support of Ukraine (EUMAM Ukraine)[1],

     having regard to Council Decision (CFSP) 2024/890 of 18 March 2024 amending Decision (CFSP) 2021/509 establishing a European Peace Facility[2],

     having regard to Regulation (EU) 2019/452 of the European Parliament and of the Council of 19 March 2019 establishing a framework for the screening of foreign direct investments into the Union[3],

     having regard to Regulation (EU) 2021/697 of the European Parliament and of the Council of 29 April 2021 establishing the European Defence Fund and repealing Regulation (EU) 2018/1092[4],

     having regard to Regulation (EU) 2023/1525 of the European Parliament and of the Council of 20 July 2023 on supporting ammunition production (ASAP)[5],

     having regard to Regulation (EU) 2023/2418 of the European Parliament and of the Council of 18 October 2023 on establishing an instrument for the reinforcement of the European defence industry through common procurement (EDIRPA)[6],

     having regard to Regulation (EU) 2024/1252 of the European Parliament and of the Council of 11 April 2024 establishing a framework for ensuring a secure and sustainable supply of critical raw materials and amending Regulations (EU) No 168/2013, (EU) 2018/858, (EU) 2018/1724 and (EU) 2019/1020[7],

     having regard to the Commission proposal of 18 April 2023 for a regulation of the European Parliament and of the Council laying down measures to strengthen solidarity and capacities in the Union to detect, prepare for and respond to cybersecurity threats and incidents (COM(2023)0209),

     having regard to the joint communication from the Commission and the High Representative of the Union for Foreign Affairs and Security Policy of 21 February 2025 on an EU Action Plan on Cable Security (JOIN(2025)0009),

     having regard to the joint communication from the Commission and the High Representative of the Union for Foreign Affairs and Security Policy of 10 March 2023 on a European Union Space Strategy for Security and Defence (JOIN(2023)0009),

     having regard to Commission Recommendation (EU) 2023/2113 of 3 October 2023 on critical technology areas for the EU’s economic security for further risk assessment with Member States[8],

     having regard to the joint communication from the Commission and the High Representative of the Union for Foreign Affairs and Security Policy of 10 November 2022 entitled ‘Action plan on military mobility 2.0’ (JOIN(2022)0048),

     having regard to the joint communication from the Commission and the High Representative of the Union for Foreign Affairs and Security Policy of 18 May 2022 on the Defence Investment Gaps Analysis and Way Forward (JOIN(2022)0024),

     having regard to the joint communication from the Commission and the High Representative of the Union for Foreign Affairs and Security Policy of 10 March 2023 on the update of the EU Maritime Security Strategy and its Action Plan entitled ‘An enhanced EU Maritime Security Strategy for evolving maritime threats’ (JOIN(2023)0008),

     having regard to the joint communication from the Commission and the High Representative of the Union for Foreign Affairs and Security Policy of 5 March 2024 entitled ‘A new European Defence Industrial Strategy: Achieving EU readiness through a responsive and resilient European Defence Industry’ (JOIN(2024)0010),

     having regard to the report by the High Representative of the Union for Foreign Affairs and Security Policy of 20 June 2024 entitled ‘Common Foreign and Security Policy Report – Our priorities in 2024’,

     having regard to the political guidelines for the next European Commission 2024-2029 by Ursula von der Leyen entitled ‘Europe’s choice’, published on 18 July 2024,

     having regard to the report by Enrico Letta entitled ‘Much more than a market’, published in April 2024, and in particular the section thereof entitled ‘Promoting peace and enhancing security: towards a Common Market for the defence industry’,

     having regard to the report by Mario Draghi of 9 September 2024 on the future of European competitiveness and in particular Chapter Four thereof on increasing security and reducing dependencies,

     having regard to the report by Sauli Niinistö of 30 October 2024 entitled ‘Safer Together: Strengthening Europe’s Civilian and Military Preparedness and Readiness’,

     having regard to the North Atlantic Treaty of 1949,

     having regard to the Madrid Summit Declaration adopted by NATO heads of state and government at the North Atlantic Council meeting in Madrid on 29 June 2022,

     having regard to the NATO 2022 Strategic Concept and to the NATO Vilnius Summit Communiqué issued by NATO heads of state and government at the North Atlantic Council meeting in Vilnius on 11 July 2023,

     having regard to the joint declarations on EU-NATO cooperation signed on 8 July 2016, 10 July 2018 and 10 January 2023,

     having regard to the ninth progress report on the implementation of the common set of proposals endorsed by EU and NATO Councils on 6 December 2016 and 5 December 2017, submitted jointly by the Vice-President of the Commission / High Representative of the Union for Foreign Affairs and Security Policy and the NATO Secretary General to the Council of the EU and the NATO Council on 13 June 2024,

     having regard to the Washington Summit Declaration issued by the NATO heads of state and government participating in the North Atlantic Council meeting in Washington on 10 July 2024,

     having regard to Ukraine’s victory plan presented by the President of Ukraine, Volodymyr Zelenskyy, to the European Council on 17 October 2024,

     having regard to the speeches and statements made at the Munich Security Conference on 14-16 February 2025,

     having regard to the statements made at the Leaders Meeting on Ukraine, held in London on 2 March 2025,

     having regard to the temporary halt of all United States military aid to Ukraine,

     having regard to the statement by the President of the Commission of 4 March 2025 on the defence package, the ReArm Europe Plan,

     having regard to Rule 55 of its Rules of Procedure,

    A. whereas the security situation in Europe has seen an unprecedented deterioration over the past years; whereas there is a common understanding that Europe needs to be able to effectively address European security challenges and achieve a state of defence readiness;

    B. whereas Russia’s war of aggression against Ukraine has been a watershed moment in European history; whereas Putin’s war of aggression against Ukraine is widely recognised as an attack on the European peace order established after the Second World War and on the global order as a whole;

    C. whereas despite previous signs and warnings, many countries have not taken the necessary defence measures; whereas the goal of committing 2 % of gross domestic product (GDP) to defence spending agreed by NATO members in 2014 is still not being met by all NATO members in the EU; whereas the gap between the 2 % goal and the actual defence spending by EU Member States amounts to EUR 1 770 billion over the 2006-2022 period[9]; whereas in 2024, 16 EU Member States that are also NATO allies were expected to exceed NATO’s 2 % defence investment guideline, compared to only nine in 2023;

    D. whereas as a result of these investment gaps, numerous reports, notably the Defence Investment Gaps Analysis of May 2022, have analysed a worrying capability gap in European defence;

    E. whereas the Draghi report highlighted a funding need of EUR 500 billion in European defence for the next decade and highlights a combination of structural weaknesses affecting the competitiveness of the EU’s defence technological and industrial base (EDTIB), and identifies fragmentation, insufficient public defence investment and limited access to financing as obstacles to a capable EDTIB; whereas the lending policy of the European Investment Bank (EIB) excludes the financing of ammunition and weapons, as well as equipment or infrastructure exclusively dedicated to military and police use;

    F. whereas the Niinistö report underlines the fact that the EU and its Member States are not yet fully prepared for the most severe cross-sectoral or multidimensional crisis scenarios, especially given the further deteriorating environment outside of the EU; whereas it insists that this preparedness is necessary for the EU and its Member States to signal to potential adversaries that they will not be able to outlast the EU; whereas it deplores the fact that the EU lacks a common plan in the event of armed aggression and underlines that the EU needs to rethink the way it defines its security;

    G. whereas Russia’s continued armament efforts and its cooperation with other authoritarian powers on armaments, vastly surpassing European stocks and production capacities, pose the most serious and unprecedented threat to world peace as well as to the security and territory of the EU and its Member States; whereas the Russian regime is strengthening its ties in particular with the autocratic leaderships of China, Iran and North Korea in order to achieve its objectives;

    H. whereas the EU is also facing the most diverse and complex range of non-military threats since its creation, exacerbated by Russia’s war of aggression against Ukraine, including foreign information manipulation and interference, cyberattacks, attacks against underwater infrastructure, economic pressures, food and energy blackmailing, instrumentalisation of migration and subversive political influence; whereas the EU should take these kind of threats seriously in its defence and security policies;

    I. whereas the recent actions and statements by the US administration have further increased concerns about the future stance of the US vis-à-vis Russia, NATO and the security of Europe;

    J. whereas the EU’s security environment has deteriorated not only in eastern Europe, but also in countries in the EU’s southern neighbourhood partnership and beyond;

    K. whereas the disastrous impact of past or ongoing wars, instability, insecurity, poverty and climate change in the Sahel region, north-eastern Africa and Libya poses serious risks to the EU’s security and its economic and trade interests; whereas the instability and insecurity in the southern neighbourhood and the Sahel region are closely interlinked with and remain an ongoing challenge for EU external border management and mitigation of illegal migration;

    L. whereas European security is linked to stability on the African continent, and the growing presence of non-European actors is testament to the lack of sufficient security and diplomatic engagement in the region to effectively counter the challenges and protect its strategic interests;

    M. whereas the Black Sea has shifted from a secondary to a primary military theatre for the EU and NATO, and, alongside the Baltic Sea, has become a pivotal strategic region for European security in countering the Russian threat;

    N. whereas the Arctic region is becoming increasingly important in terms of economic development and transport, while at the same time facing challenges linked to climate change and militarisation, as well as those resulting from increasing geopolitical competition and migration;

    O. whereas China, driven by the ambition to become a global superpower, is eroding the rules-based international order by increasingly pursuing assertive foreign and hostile economic and competition policies and exporting dual-use goods deployed by Russia on the battlefield against Ukraine, thereby threatening European security and interests; whereas China is also investing tremendously in its armed forces, using its economic power to quash criticism worldwide, and is striving to assert itself as the dominant power in the Indo-Pacific region; whereas China, by intensifying its confrontational, aggressive and intimidating actions against some of its neighbours, particularly in the Taiwan Strait and the South China Sea, poses a risk to regional and global security as well as to the EU’s economic interests; whereas China has promoted an alternative narrative for many years, challenging human rights, democratic values and open markets in multilateral and international forums; whereas China’s increasing influence in international organisations has impeded positive progress and further excluded Taiwan from rightful and meaningful participation in these organisations;

    P. whereas in 2023, Parliament and the Council concluded agreements on the European defence industry reinforcement through common procurement act (EDIRPA) and the Act in Support of Ammunition Production (ASAP), which, as short-term and emergency measures, aim to encourage the joint procurement of defence products, ramp up the European defence industry’s production capacity, and replenish depleted stocks;

    Q. whereas in 2024, the Commission proposed the establishment of a European defence industrial strategy (EDIS) and a European defence industry programme (EDIP), addressing, in particular, the improvement of EU defence capabilities and the governance, security of supply and integration of the Ukrainian defence technological and industrial base (DTIB) into its EU counterpart, the EDTIB;

    R. whereas building defence capabilities and adapting them to military needs requires a common strategic culture and shared threat perception and assessment, as well as the development of solutions to be combined in doctrine and concepts;

    S. whereas in the light of the above challenges and analyses, the President of the European Commission tasked the Commissioner for Defence and Space and the High Representative of the Union for Foreign Affairs and Security Policy with drafting a white paper on the future of European defence, which is due to be published on 19 March 2025;

    1. Believes that the white paper on the future of European defence must put forward concrete measures and options to the members of the European Council so that truly groundbreaking and much needed efforts can be made, in the shortest possible time frames, which must address the following pressing needs: to urgently and substantially increase defence capabilities, overcome fragmentation in the European defence industry market, enhance the capacity of the EDTIB, promptly identify and implement pragmatic solutions for the considerable funding needs, deepen EU-NATO cooperation through a robust European pillar in NATO, and ensure an increase in our military support to Ukraine and other neighbouring countries that share our European values;

    2. Calls on Council President António Costa to immediately convene the European Council, based on the conclusions of the white paper, so that EU leaders can agree on immediate and far-reaching decisions to implement the European Defence Union as laid out in Article 42(2) TEU and elaborate on the measures identified in the white paper; urges both the Council and the Commission to identify clear and concrete priorities for the short, medium and long term, with a corresponding timeline of actions;

    3. Reiterates its previous calls to take seriously the direct and indirect threat of a Russian attack against the EU and to prepare urgently, without any further delay, to do the utmost to improve European military capacities in order to ensure that Europe is ready for the most extreme military contingencies; calls therefore for the threat analysis of the EU’s Strategic Compass to be updated and upgraded to a threat assessment and for the measures within the compass to be adapted accordingly, in order to reflect the threat magnitude in our threat environment;

    4. Strongly believes that Europeans must take on greater responsibility within NATO, especially when it comes to ensuring security on the European continent, and hence underlines that a strong and robust European pillar in NATO is the best way to foster our transatlantic security and ensure the security of all Europeans; recalls that a true transatlantic partnership means shared responsibility, joint efforts and equal burden-sharing;

    5. Stresses the importance of learning from Ukraine’s experience in countering Russian aggression and calls for immediate measures to enhance the security and defence of the EU’s north-eastern border with Russia and Belarus by establishing a comprehensive and resilient defence line across land, air and maritime domains to counter military and hybrid threats; emphasises the need to coordinate and integrate national efforts through EU regulatory and financial instruments to accelerate implementation;

    6. Stresses that Europe continues to stand firmly on the side of Ukraine as it courageously fights for our European way of life, and recalls its conviction that it is on the Ukrainian battlefields that the future of Europe will be decided; reiterates thus that the EU will support Ukraine for as long as it takes for Ukraine to win this war, as a forced surrender by Ukraine and acceptance of a ‘peace’ treaty on Putin’s terms could accelerate the timeline for Russia to shift its aggression toward the EU or NATO; urges the EU, accordingly, to develop a ‘Ukraine strategy’, outlining clear objectives for the support of Ukraine’s defence capabilities and the integration of the Ukrainian DTIB into the EDTIB, and to find the necessary resources to implement such a strategy, while supporting European defence industry activities in Ukraine in order to ramp up local production and enhance cooperation between Ukrainian and EU defence companies; underscores that such a Ukraine strategy must be an integral part of a ‘European defence’ strategy; calls on the EU Member States to commit at least 0.25 % of their GDP to military aid for Ukraine;

    7. Emphasises the need for a holistic approach to European security, ensuring that all EU policies incorporate defence and security dimensions, supported by both regulatory and financial instruments;

    8. Believes that the EU should develop economic cooperation contingency plans to prepare for mutual support in the event of large-scale security crises, and should deepen economic and defence industrial dialogues in relation to early warnings of hard, hybrid and cyberthreats, in order to foster mutual support planning, protection of critical infrastructure, maritime and underwater safety, and other forms of deeper defence industrial cooperation; calls, in cooperation with NATO, for an enhanced response to Russia’s hybrid war that aims at destabilising not only Ukraine but the whole European continent;

    Addressing capability gaps

    9. Underlines the need to urgently address the gaps in military equipment and ammunition by building on the success of the EDIRPA and ASAP programmes and to swiftly finalise EDIP so that, through common procurement, our common European and Ukrainian capabilities are increased and our stocks of crucial defence equipment and ammunition are replenished; welcomes EDIP’s potential to improve the defence capabilities of the EU and its Member States, to strengthen security of supply and to improve the effectiveness and coherence of EU efforts through new governance structures; stresses that EDIP’s financial envelope will fall well short of meeting the ambitions laid out in EDIP and calls, therefore, for additional funding sources to be identified immediately and to include exploring the possibility of reallocations within the current multiannual financial framework (MFF), notably with regard to European defence projects of common interest and to the Ukraine support instrument that currently lacks any funding; stresses, with regard to the threat assessment of a possible Russian attack on EU and NATO territory within the next few years, the urgent need for EDIP to be implemented swiftly and for additional and substantial funding to be provided for joint European defence efforts before the next MFF;

    10. Calls for the need for a significant increase in availability of strategic enablers in the air, maritime, underwater, space and cyber domains to be addressed without delay;

    11. Suggests that successful Permanent Structured Cooperation (PESCO) and European Defence Fund (EDF) projects be prioritised along the lines of known capability gaps and that sufficient funding be ensured for projects that have proven to deliver; calls for the closure of PESCO projects that do not deliver results and/or do not provide added value in the closing of capability gaps and/or European defence readiness; stresses, in the light of the limited financial envelope of the EDF, that duplicated efforts, especially in crucial capability areas such as the hypersonic interceptor or future main battle tank systems, waste EU tax payers’ money, will prolong development efforts and thus increase the probability of procurement of such capabilities from the US, thus undermining the ambition laid out in EDIS;

    12. Calls for the architecture of the EU Defence Industrial Toolbox to be rationalised, as more financial resources alone will not ensure success, since it is even more important that these resources are spent in a more efficient and effective manner;

    13. Underlines the need to ensure coherence of output between the EU’s Capability Development Plan (CDP) and Coordinated Annual Review on Defence and the NATO capability targets, without delay, to foster complementarity and to prevent dysfunctional duplications; calls for a concrete action plan to be drawn up, including a clear timeline for each priority in line with both the CDP and the NATO Defence Planning Process;

    14. Welcomes the proposal for European defence projects of common interest on the development of common capabilities which go beyond the financial means of an individual Member State, such as a European air shield, autonomous space access and space surveillance, transport and communication capabilities, sovereign digital infrastructures, sovereign cloud infrastructure, long-range precision strike capabilities and integrated air defence, as well as complex maritime and underwater protective assets; stresses that the EU’s efforts in missile defence need to be aligned and integrated with NATO support for the European Sky Shield Initiative, driven by EU Member States; stresses the need to ensure adequate funding, to be established well before 2028, in order to deliver results with regard to the threat analyses of a possible Russian attack against EU and NATO territory within the next few years;

    15. Calls for the establishment of EU-specific rapid response strategies for underwater infrastructure protection operating in alignment with NATO while maintaining EU autonomy; encourages investment in advanced detection and surveillance systems for underwater infrastructure monitoring;

    16. Calls for the EU to further accelerate the implementation of military mobility; believes that the EU has to move from ‘mobility’ to ‘military logistics’; stresses the need for significant investment in military mobility infrastructure to enhance cargo airlift capabilities, camps, fuel infrastructure through depots, ports, air, sea and rail transport platforms, railway lines, waterways, roads, bridges and logistic hubs; stresses that this must be done in cooperation with NATO by drafting a strategic plan for developing mobility;

    17. Underlines the need to quickly agree on additional common European military forces, given that the Rapid Deployment Capacity (RDC) designed as a crisis management instrument provides only a limited European capability to react and support NATO efforts in the event of Russian aggression against EU and NATO territory; recommends, therefore, that the Helsinki Headline Goal of 1999 be revived and that the RDC be gradually extended to ultimately establish a European corps of 60 000 troops, which should be part of a permanent EU structure while being integrated into NATO’s force model;

    18. Recommends the establishment of a security of supply regime, including joint strategic stocks of raw materials and critical parts, to ensure the availability of raw materials and components needed for the production of defence products, and to allow production cycles to be ramped up faster and shortened;

    Fostering the EU’s defence technological and industrial base (EDTIB)

    19. Calls for a significant increase in common procurement by EU Member States of required European defence equipment and capabilities; calls on the Member States to aggregate demand by procuring defence equipment jointly, with the possibility of granting the Commission a mandate to procure on their behalf, ideally ensuring a long-term planning horizon for the EDTIB, thus improving the EDTIB’s production capacities and the interoperability of the European armed forces, and making efficient use of taxpayers’ money through economies of scale;

    20. Underlines the outstanding success of the EU’s first joint procurement instrument, EDIRPA, by incentivising joint procurement by Member States; believes that there is a need to continue mechanisms similar to EDIRPA and ASAP while increasing the share of funding for joint procurements compared to support measures for research and development;

    21. Believes that the development of the EU’s joint capability should be based on risk analysis provided in threat assessments and on the impact of projects on mitigating the EU’s joint security risks;

    22. Believes that it is necessary to conduct systematic analyses of lessons learned from the war in Ukraine from a technology usage perspective, and analyses of the necessity of EU and NATO standards in comparison to how they affect the cost of technology and products compared to their usage effectiveness;

    23. Stresses that EDIP must actively facilitate the participation of small and medium-sized enterprises and new market entrants through simplified access to funding, reduced regulatory barriers, and dedicated support mechanisms for scaling up operations; emphasises that EDIP should be designed as a stepping stone towards greater European sovereignty in defence production;

    24. Highlights the need to support the development of pan-European value chains in EU defence cooperation by involving companies throughout the EU in the production of defence equipment and by distributing production facilities throughout the EU in order to improve security of supply, increase attractiveness of EU defence cooperation and, above all, enhance the resilience of the supply network, thus reducing our vulnerability in the event of an armed attack;

    25. Calls for the review and adaptation of current and future legislation with regard to negative effects on the EDTIB, especially concerning production capacities and security of supply; calls for an extended mapping, in cooperation with the EDTIB, to identify all horizontal hindrances in the current legislation; calls for a detailed action plan to be developed to resolve the issues as soon as possible; underlines the need to review, simplify and harmonise the current framework for export licences and intra-EU transfer licences, as well as for cross-certification of equipment, as one of the priorities to foster better cooperation within the market and among Member States;

    26. Strongly underlines the need to significantly increase our investment in emerging and disruptive technologies and structures in defence, taking care not to disperse our resources across too many projects, including cyber defence, outer space, complex underwater protective assets, novel materials and manufacturing, artificial intelligence, quantum computing, cloud computing and sovereign cloud infrastructure, high-performance computing, the internet of things, robotics, biotechnology and nanotechnology;

    27. Calls on the Commission to leverage the full dual-use potential of space technologies, considering space as both a new operating domain and a critical enabler of multi-domain operations; underlines that the EU currently has a substantial gap in space capabilities compared to its main competitors and stresses that, in order to address this gap in space technologies, already existing flagship projects (i.e. Copernicus and Galileo) should be enhanced for defence applications; suggests, furthermore, that the EU should urgently pursue the development of its IRIS2 constellation, together with the development of further EU common projects, for example, for space domain awareness and space-based missile early-warning applications;

    28. Recalls the increasing threats of cyber warfare and underlines the need for the EU to establish an EU cyber defence coordination centre to monitor, detect and respond to cyberthreats in real time;

    29. Highlights the importance of the involvement of other industrial actors that do not undertake defence-related activities as potential partners in scaling up production when necessary;

    30. Calls for the EU to foster stronger collaboration between our armed forces, academia, industries and investors;

    Ensuring pragmatic sources of finance

    31. Calls on the Commission to bring forward a legislative proposal containing a binding commitment for Member States to reach a minimum threshold of 3 % of their GDP on defence expenditure by 2026, with the need to further increase it to 4 % by 2028 and to commit at least 0.5 % of their GDP to EU common defence; stresses that, in the light of three decades of underinvestment, the current threat to the EU requires much higher defence investment, while underlining that the EU budget can only complement but can never replace the efforts of the Member States in that regard; emphasises that national defence investment by Member States will continue to serve as the backbone of defence readiness, while EU funding and its role in harmonising and streamlining the processes may have an important impact in enhancing and multiplying these efforts; calls for the EU and its Member States to work and agree on specific ways and means to achieve a short- to long-term substantial increase in public and private investment in defence and security on the national and European levels;

    32. Welcomes the Commission’s announcement on the ReArm Europe Plan;

    33. Welcomes the Commission’s proposal to activate the national escape clause of the Stability and Growth Pact;

    34. Welcomes the Commission’s proposal for a new instrument providing EUR 150 billion in loans to Member States for joint defence investment;

    35. Welcomes the Commission’s announcement of its plans to direct more funds towards defence-related investment, including making it possible for cohesion policy programmes to be used;

    36. Calls for a system of European defence bonds to be explored for financing large-scale military investments up front, ensuring urgent capability development; calls for clear allocation criteria prioritising joint capability development, research and innovation, and military mobility infrastructure; calls, along the same lines, for the use of unused ‘coronabonds’ for defence instruments to be explored;

    37. Underlines the role of public-private partnerships which are essential to finance defence investment; proposes, therefore, a dedicated EU instrument incentivising private investment in defence following the example of InvestEU;

    38. Welcomes the Commission’s announcement of its plans to take action to mobilise private capital through an acceleration of the Savings and Investment Union and through the EIB; calls for an urgent revision of the EIB’s lending policy and immediate flexibility to remove current restrictions on financing ammunition, weapons and equipment or infrastructure dedicated to military use; stresses that this fundamental reform is necessary to unlock significant investment potential for the European defence sector, and to foster risk-sharing instruments to facilitate commercial bank lending to the sector; urges the EIB to take the necessary steps to facilitate private investment in defence, ensuring that the financial landscape supports the growing needs of the industry;

    39. Demands a review of past and new legislation and taxonomy to ensure that they are best suited to advance our European defence industry;

    40. Believes that environmental, social and governance criteria and taxonomy rules and their interpretation by rating agencies are an obstacle to ensuring increased public finance for defence and hence calls on the Commission to address this issue by, among other things, adapting the regulation on sustainability‐related disclosures in the financial services sector[10] with a view to explicitly ruling out a classification of the defence industry as sustainably or socially harmful;

    Supporting innovation

    41. Calls for the establishment of an EU agency, inspired by the US’s Defense Advanced Research Projects Agency, as part of the European Defence Agency, which should be solely responsible for supporting research in emerging and disruptive technologies, equipped with an adequate amount of venture capital; emphasises the need for expanded research and development funding to ensure participation by all Member States through the creation of specialised ‘hubs’;

    42. Believes in the need to increase the funding for academic research programmes to cooperate with the defence industry to ensure long-term in-depth research in defence;

    Finalising the common market for defence

    43. Urges Member States to stop invoking Article 346 TFEU as a means of avoiding the application of the Procurement Directive[11], thus undermining the common market for defence; calls on the Commission to close this loophole by immediately launching a review of this directive, as well as of the Intra-Community Transfer Directive[12], which is scheduled for the second half of 2025, and to recast both regulations as soon as possible with a view to strengthening the common market for defence, as well as to introducing flexibility with regard to crisis situations like those we are currently facing;

    44. Calls for the transformation of NATO standards into EU legislation in order to facilitate the interoperability of European armed forces while strengthening our capacity to negotiate these standards within NATO and to enforce the consistent implementation of these standard in practice;

    45. Presses for a common European certification scheme for weapons systems and a move beyond the current system of national certification in order to speed up the introduction of weapons systems into the armed forces of Member States;

    Fostering effective governance

    46. Deplores the lack of cohesion and effectiveness of EU defence structures and instruments resulting from the loose institutional connection between the Council and the Commission, which not only significantly limits the added value and the effectiveness of cooperation in the EU framework but also results in the ineffective use of taxpayers’ money;

    47. Calls for the creation of a permanent Council of EU defence ministers;

    48. Suggests that the Commissioner for Defence and Space should become the head of the European Defence Agency and should also be nominated as the coordinator for PESCO projects by recasting the respective Council decisions;

    49. Encourages the creation of a ‘defence readiness board’ as proposed in EDIP, led by the Defence Commissioner, which should meet frequently in different configurations, for example, EU defence ministers, national procurement directors and industry representatives;

    50. Believes that the Defence Commissioner should exercise supervision over the EU Military Committee, the EU Military Staff and military operations;

    51. Suggests that the funding for PESCO and the European Defence Agency be transferred into the common EU budget;

    52. Highlights the need for enhanced and effective parliamentary scrutiny in the area of defence, given its importance and the effects on other areas of increasing investment in defence; calls, therefore, for the establishment of an interinstitutional agreement ensuring Parliament’s access to classified information and the provision of physical infrastructure to that end, allowing for committee meetings to be conducted under the classification of EU restricted, or an even higher security classification;

    Fostering EU-NATO complementarity

    53. Calls for a true strategic partnership between the EU and NATO, in full respect of the agreed guiding principles of cooperation, as well as the decision-making autonomy of both organisations, and underlines that only together can we ensure our security and long-term prosperity;

    54. Underlines the need for an agreement on the exchange of classified information between the EU and NATO;

    55. Calls for the establishment of a regular joint armament conference between the EU and NATO in order to coordinate and align efforts with regard to capability development;

    56. Recalls the need to ensure frequent EU-NATO meetings and summits on political and experts levels, in an inclusive, non-discriminatory and reciprocal manner;

    57. Calls for the EU to reinforce the Structured Dialogue with NATO on the defence industry in order to enhance cooperation in key areas such as interoperability and standardisation;

    Fostering cooperation with non-EU partners

    58. Recalls that there is no alternative to strong and sustainable transatlantic cooperation and thus believes that every effort must be made to foster transatlantic cooperation in every field of the military and defence sectors, while recalling the need to foster European defence and develop our sovereignty;

    59. Underlines the need to enhance our partnership with like-minded countries, particularly those in Europe, such as the UK and Norway; calls for an EU-UK broad security pact, also covering key subjects such as energy, migration and critical minerals; points to the added value of fostering our relationships with global partners such as the US, Japan and Australia;

    °

    ° °

    60. Instructs its President to forward this resolution to the Council, the Commission, the Vice-President of the Commission / High Representative of the Union for Foreign Affairs and Security Policy and the parliaments and governments of the EU Member States and NATO member countries.

    MIL OSI Europe News

  • MIL-OSI Europe: Answer to a written question – Untapped potential of AI and revitalising the technology sector and innovative national and European companies – E-002670/2024(ASW)

    Source: European Parliament

    The Commission oversees several actions to make the EU a leading player in artificial intelligence (AI) and increase competitiveness.

    Support for small and medium enterprises (SMEs) is delivered via two initiatives of the Digital Europe Programme (DEP)[1]: European Digital Innovation Hubs (EDIHs)[2] and Testing Experimentation Facilities (TEFs)[3].

    Over 150 EDIHs have delivered over 20 000 services to SMEs to support their digitalisation and use of AI. TEFs in four sectors ( healthcare, manufacturing, smart cities and agri-food) help SMEs test AI. The Commission has financed the AI on Demand Platform[4] to help SMEs access AI tools and datasets.

    In addition, at the Action Summit in Paris, the Commission launched InvestAI, an initiative to mobilise EUR 200 billion for AI investment[5] including a new European fund of EUR 20 billion for AI gigafactories needed to allow open, collaborative development of AI models and to make Europe an AI continent.

    The Chips Act[6] aims to address semiconductor shortages and strengthen Europe’s technological leadership. It mobilises over EUR 43 billion of investments for manufacturing facilities to ensure resilience of the Union’s semiconductor sector.

    Regarding company law, the Commission is preparing a proposal for a 28th regime which will simplifies applicable rules. An EU Startup and Scaleup Strategy will also address obstacles preventing new companies from emerging and scaling.

    From 2021 to 2027[7], over EUR 4 billion of EU funding is available for AI research and innovation activities under Horizon Europe[8] and DEP[9].

    A Commission recommendation[10] encourages businesses to make use of data-analysis, automated recognition and machine learning to detect counterfeits online.

    To limit the impact of energy prices the Commission will present an Action Plan on Affordable Energy.

    • [1] https://digital-strategy.ec.europa.eu/en/activities/digital-programme
    • [2] https://european-digital-innovation-hubs.ec.europa.eu/edih-catalogue
    • [3] https://digital-strategy.ec.europa.eu/en/activities/testing-and-experimentation-facilities
    • [4] https://www.ai4europe.eu
    • [5] https://ec.europa.eu/commission/presscorner/detail/en/ip_25_467
    • [6] Regulation (EU) 2023/1781 of the European Parliament and of the Council of 13 September 2023 establishing a framework of measures for strengthening Europe’s semiconductor ecosystem and amending Regulation (EU) 2021/694 (Chips Act) (OJ L 229, 18.9.2023, p. 1, ELI: http://data.europa.eu/eli/reg/2023/1781/oj).
    • [7] https://digital-strategy.ec.europa.eu/en/policies/european-ai-research
    • [8] https://research-and-innovation.ec.europa.eu/funding/funding-opportunities/funding-programmes-and-open-calls/horizon-europe_en
    • [9] https://digital-strategy.ec.europa.eu/en/activities/digital-programme
    • [10] Commission Recommendation on measures to combat counterfeiting and enhance the enforcement of intellectual property rights: https://single-market-economy.ec.europa.eu/publications/commission-recommendation-measures-combat-counterfeiting-and-enhance-enforcement-intellectual_en

    MIL OSI Europe News

  • MIL-OSI Europe: Answer to a written question – Protection of European authors’ rights against possible fraud by Meta – E-000144/2025(ASW)

    Source: European Parliament

    Directive 2001/29/EC[1] grants exclusive rights to authors over their works, allowing them to authorise or prohibit the reproduction, communication to the public and distribution of such works, unless exceptions apply.

    The Text and Data Mining (TDM) exception introduced in the 2019 Copyright Directive[2] applies only to reproductions of works to which the beneficiaries of the exception have lawful access, therefore excluding content obtained through websites making available copyright-infringing content.

    In case of infringements, the authors may take action to enforce his/her rights. Directive 2004/48/EC[3], a minimum harmonisation measure, provides that certain measures, procedures and remedies should be available in Member States.

    However, enforcement of rights is subject to the jurisdiction of national courts in individual Member States where an act takes place in the territory of the Member State. The Commission has no standing in the private enforcement of copyright before national courts.

    The Commission will continue to promote the development of artificial intelligence (AI) in the EU, in the respect of copyright rules, by facilitating licensing between creative industries and AI companies.

    • [1] OJ L 167/10, 22.6.2001.
    • [2] OJ L 130/92, 17.5.2019.
    • [3] OJ L 157/45, 30.4.2004.
    Last updated: 6 March 2025

    MIL OSI Europe News

  • MIL-OSI Europe: MOTION FOR A RESOLUTION on the white paper on the future of European defence – B10-0145/2025

    Source: European Parliament

    B10‑0145/2025

    European Parliament resolution on the white paper on the future of European defence

    (2025/2565(RSP))

    The European Parliament,

     having regard to Articles 24(1), 42, 43 and 45 of the Treaty on European Union (TEU),

     having regard to the national security strategies of the Member States,

     having regard to Regulation (EU) 2023/1525 of the European Parliament and of the Council of 20 July 2023 on supporting ammunition production (ASAP)[1],

     having regard to Regulation (EU) 2023/2418 of the European Parliament and of the Council of 18 October 2023 on establishing an instrument for the reinforcement of the European defence industry through common procurement (EDIRPA)[2],

     having regard to the Strategic Compass for Security and Defence,

     having regard to Commission Recommendation (EU) 2023/2113 of 3 October 2023 on critical technology areas for the EU’s economic security for further risk assessment with Member States[3],

     having regard to the joint communication from the Commission and the High Representative of the Union for Foreign Affairs and Security Policy of 10 March 2023 entitled ‘European Union Space Strategy for Security and Defence’ (JOIN(2023)0009),

     having regard to the report by Sauli Niinistö of 30 October 2024 entitled ‘Safer Together – Strengthening Europe’s Civilian and Military Preparedness and Readiness’,

     having regard to the report by Mario Draghi of 9 September 2024 entitled ‘The future of European competitiveness’,

     having regard to Special Report 04/2025 of the European Court of Auditors of 5 February 2025 entitled ‘EU military mobility: Full speed not reached due to design weaknesses and obstacles en route’,

     having regard to the three Joint Declarations on EU-NATO cooperation signed on 8 July 2016, 10 July 2018 and 10 January 2023,

     having regard to the Madrid Summit Declaration adopted by the NATO heads of state and government at the North Atlantic Council meeting in Madrid on 29 June 2022,

     having regard to the NATO 2022 Strategic Concept and the 2023 NATO Summit in Vilnius,

     having regard to the opening remarks made by US Secretary of Defense Pete Hegseth in Brussels at the Ukraine Defense Contact Group meeting of 12 February 2025,

     having regard to the talks held in Riyadh, Saudi Arabia, on 18 February 2025 between US and Russian negotiators,

     having regard to Rule 136(2) of its Rules of Procedure,

    A. whereas the Commission announced the release of a white paper on the future of European defence, co-authored by Commissioner for Defence and Space Andrius Kubilius and Vice-President of the Commission / High Representative of the Union for Foreign Affairs and Security Policy Kaja Kallas, by 19 March 2025; whereas this document will be the first of its kind produced by the EU and emulates similar documents published by Member States;

    B. whereas the white paper must respect the limits set by the TEU in terms of foreign policy and defence and it must take note of the international context and the strategic environment in order to provide a perspective and proposals that will enable the strengthening of Europe’s security;

    C. whereas the white paper on the future of European defence will provide the framework for future defence projects and regulations and will be a key point of reference for incoming negotiations on the next multiannual financial framework;

    D. whereas the international order is profoundly destabilised and is restructuring; whereas the international rules and organisations that emerged from the Second World War and then from the end of the Cold War are in crisis; whereas international relations are increasingly characterised by uncertainty, and the tendency to resort to armed force to resolve international disagreements is growing;

    E. whereas Russia’s large-scale invasion of Ukraine in 2022 has profoundly destabilised the security order in Europe; whereas this unilateral aggression has accelerated the integration of Sweden and Finland into NATO; whereas this war has considerably deteriorated relations and exchanges between Russia and the countries of Europe;

    F. whereas the war in Ukraine has highlighted the chronic underinvestment by Member States in their armed forces; whereas the stocks of arms and ammunition in Europe are largely insufficient; whereas certain critical military capabilities are not possessed by any European military; whereas the infrastructure that is essential for the security and proper functioning of European societies and economies is vulnerable; whereas some Member States have encountered significant difficulties in deploying and transporting military resources within the EU itself;

    G. whereas the relations between the United States and China will structure, to a large extent, the future of international relations in the 21st century; whereas the United States no longer has the will to maintain the same level of military involvement in Europe; whereas the US Secretary of Defence has expressly spoken of a ‘division of labour’ between allies, with the Americans prioritising the Pacific region, while emphasising that Europeans must be responsible for the defence of Europe and must increase their capabilities accordingly;

    H. whereas the European Union is composed of 27 sovereign states, with each having the sovereign right to determine its own foreign and defence policy;

    I. whereas it is in the interest of the Member States to adopt a common policy on matters of common interest to them; whereas enhanced cooperation on defence matters is mutually beneficial if it improves the security of the Member States against any direct aggression or if it increases their capacity to respond to any threat to their territorial integrity, sovereignty or prosperity;

    J. whereas the European defence market is too fragmented; whereas for a single armament type, there can be several or even dozens of different varieties of equipment in the EU, representing a collective loss of resources because of duplication, and preventing economies of scale;

    K. whereas Article 24(1) TEU stipulates that decisions related to the common foreign and security policy and the common security and defence policy are taken unanimously by the Council; whereas Article 24(1) TEU also stipulates that the EU cannot adopt legislative acts on foreign affairs and defence; whereas Article 36 TEU stipulates that Parliament has a consultative role;

    L. whereas, on 30 January 2025, 19 EU countries sent a letter to the European Investment Bank calling for it ‘to play an even stronger role in providing investment funding and leveraging private funding for the security and defence sector’;

    1. Stresses that diplomatic and defence policy issues are primarily the prerogative of the Member States, which remain the most relevant and the only legitimate political units in the international order; respects the right of every Member State to determine its own foreign and security policy; insists on the importance of maintaining the principle of unanimity in the Council for all decisions related to the common foreign and security policy and the common security and defence policy;

    2. Underlines that strengthening the Member States’ militaries, based on threats, is necessary to compensate for the security deficit caused by decades of underinvestment and the gradual disengagement of the United States; emphasises that this rearmament policy led by the Member States must not aim to escalate tensions in Europe, but rather aim to reach a level that will deter any hostile actions, establish a continental balance and maintain peace;

    3. Notes that the United States remains the EU’s main military ally and is an essential member of NATO; insists that, irrespective of the political orientation of the White House, US foreign policy will continue to make the Asia-Pacific region a geostrategic priority and to perceive Europe as a secondary theatre; stresses that Member States must no longer subcontract their security and defence to other powers;

    4. Underlines that NATO is a crucial partner in the collective defence architecture in Europe; takes note of the ambition of building a European pillar within NATO; considers that a greater contribution from European states within the alliance must, for the sake of consistency, result in a more balanced distribution of command posts in favour of European military personnel; stresses that stepping up the defence capabilities of European states can go hand in hand with the deepening of EU-NATO cooperation with due respect for the neutrality of the EU Member States that are not part of the NATO alliance;

    5. Highlights the need to overcome the fragmentation of the EU’s internal market for defence products through greater cooperation between Member States and to collectively work on the interoperability of military capabilities; calls on the Member States to encourage cross-border defence procurement in order to strengthen intra-European industrial cooperation and achieve the objective of European strategic autonomy;

    6. Stresses that greater cooperation in the defence sector must actively involve defence SMEs, not only large defence actors, and serve as a platform for SME development, providing greater opportunities for them to contribute to the EU’s technological base and enhance European strategic autonomy;

    7. Notes, however, that the strengthening of the European defence industry must not result in the attribution of new competences to the Commission, which would be in breach of the Treaties and would undermine the sovereignty of Member States without increasing efficacy; reiterates, therefore, that decision-making regarding military requirements, the prioritisation of capability development and the purchase of defence products should remain within the remit of Member States; underlines that, despite the need for increased cooperation in the field of defence, such as on joint procurement and joint production, the Member States must retain full sovereignty over their arms export policies;

    8. Calls for the co-legislators to establish the principle of a European preference in future European defence regulations, including in the European defence industrial plan, so that European funds benefit European companies on European soil, which will enhance our industrial defence capabilities and will reduce our dependences on non-EU countries; recalls that this regulation must in no way restrict the freedom of the Member States to determine their own arms procurement and import/export policy;

    9. Calls on the NATO-affiliated Member States to cooperate in order to identify and fill critical capability gaps by building on and complementing NATO’s Defence Planning Process targets, which are required for sustained full-spectrum operations, including space systems and launchers, long-range missiles, integrated air and missile defence systems, ammunition production, artificial intelligence (AI), maritime drone capability, command and control capability, electronic warfare systems and air-to-air refuelling capacity;

    10. Calls on non-neutral Member States to adequately invest in their infrastructure to guarantee optimal military mobility across Europe in line with their respective military agreements and alliances;

    11. Emphasises the importance for European states to have the capacity and a framework to act independently within the NATO framework where possible and outside of the NATO framework if necessary; points out that the Rapid Deployment Capacity, an inter-state initiative under the control of the Member States, only comprised of 5 000 troops, does not allow for the possibility of engagement in a context of intense combat; reaffirms that it is in the Member States’ interest to strengthen their ability to fight together by conducting joint training and exercises that enhance the interoperability of the various national instruments;

    12. Expresses the need to consider European defence in all its dimensions, including land, air, naval, space and cybernetic; notes that contemporary strategic issues have a growing naval dimension and that the powers challenging the international order are deploying naval capabilities at regional level; stresses the importance of European cooperation at sea and welcomes the current progress of Operation Aspides, the lessons from which must be put to good use; stresses that European strategic autonomy has a maritime and naval dimension, and that European navies should cooperate more closely to ensure the protection of their maritime areas, as well as their underwater or surface infrastructure; stresses that the principle of freedom of navigation must be protected and calls, therefore, for an increase in surveillance and the ability to react quickly in the event of threats arising in European seas;

    13. Notes that space will increasingly become a key aspect of power and sovereignty; underlines that the Member States must maintain and guarantee their independent access to space; welcomes the launch of Ariane 6, but is concerned by the accumulated delays; draws attention to the need for the space sector to be industrialised to increase the number of rockets launched to put European satellites into orbit; welcomes the launch of the European satellite constellation IRIS², which should enable secure communications solutions for sovereign and military issues by 2030; emphasises the need for the future EU space law not to hamper the competitiveness of European companies and to apply constraints on non-EU players; notes the importance of Galileo, Europe’s global navigation satellite system;

    14. Underlines that, unlike the United States (Buy America Act) and China (Government Procurement Law), the European space industry is not shielded from international competition and does not benefit from a European preference; calls on the Member States and the Commission to implement a European preference in space industry procurement and promote innovation, research and development; stresses that the European Space Agency’s principle of geographical return hampers innovative European SMEs and start-ups from receiving adequate funding and contributes to the fragmentation of the European space industry; calls on the European Space Agency to abolish the principle of geographical return and adopt an innovative and efficiency-based approach to space procurement rather than a geographically driven one;

    15. Underlines that the strengthening of European defence capabilities will require significant financing; calls on banks, pension funds, insurance companies and other actors in the Member States to simplify and significantly increase the financing of projects and companies operating in the field of defence; insists that in the context of the urgent need to increase defence spending, financial institutions should not consider investments in the field of defence to be damaging for their reputation; rejects, however, the idea of issuing joint debt, such as defence Eurobonds, to support defence spending;

    16. Notes the growing importance of AI in warfare, particularly in the development of drones and autonomous weapons; recognises the indigenous AI advances in warfare made by Ukraine and Israel, demonstrating that the Member States are equally capable of developing similar capabilities; highlights that recent breakthroughs, such as the one made by the Chinese AI computing start-up DeepSeek, demonstrate the feasibility of cost-competitive AI systems; calls on the Member States to accelerate the development of AI capabilities; underlines that the AI Act[4], set to be implemented in 2025, creates uncertainty regarding the production and development of dual-use AI systems, an ambiguity that could hinder the development of essential defence industry products; calls for this issue to be clarified to ensure that the European defence industry is not disadvantaged compared to its American and Chinese counterparts;

    17. Stresses that a strong civilian manufacturing industry, particularly in the steelmaking, automotive, aerospace and shipbuilding sectors, is essential for deterrence and for maintaining long-term military and industrial capabilities in the event of conflict; notes the decline of these industries since the 1990s, especially in western Europe; calls on the Commission and the Council to safeguard the manufacturing industries that are vital to national security, including through the use of tariffs; urges the Commission to revise the Green Deal and revoke the net-neutrality goal, since it destroys manufacturing competitiveness and is responsible for the deindustrialisation of key industries in the Member States; stresses that the relocation of essential manufacturing industries to non-EU countries is counterproductive both in terms of global environmental impact and national security;

    18. Expresses concern over the growing dependence of the European defence industry on foreign components, particularly rare earths and semiconductors, which are essential for advanced military technologies; calls on the Member States to intensify efforts to develop domestic rare earth mining and semiconductor manufacturing capabilities to safeguard the autonomy of the European defence industry in the event of conflicts or severe supply chain disruptions;

    19. Welcomes the Dutch Government’s decision to tighten export control rules on advanced lithography systems, which are essential for semiconductor production; stresses that EU technological transfers to non-EU countries have significantly contributed to the rise of foreign competition and the deindustrialisation of Europe; encourages the Member States to impose stricter export controls on critical dual-use technologies and manufacturing products;

    20. Notes that 80 % of EU data is stored and managed in the United States and other non-EU countries, where it may be subject to extraterritorial intervention under the Foreign Intelligence Surveillance Act, the CLOUD Act, or China’s Data Security Law; stresses that protecting critical industrial and government data is essential to ensuring national security; welcomes the Swiss Government Cloud programme as a step toward cloud sovereignty and encourages the Member States to implement similar initiatives; encourages the Member States to strengthen regulations on telecommunications service providers, which are predominantly based outside Europe, creating a significant dependence on external actors;

    21. Instructs its President to forward this resolution to Commissioner for Defence and Space Andrius Kubilius, Vice-President of the Commission / High Representative of the Union for Foreign Affairs and Security Policy Kaja Kallas, the Commission, the European Council and the parliaments and governments of the Member States.

     

     

    MIL OSI Europe News

  • MIL-OSI Europe: MOTION FOR A RESOLUTION on the white paper on the future of European defence – B10-0148/2025

    Source: European Parliament

    Nathalie Loiseau, Petras Auštrevičius, Dan Barna, Helmut Brandstätter, Engin Eroglu, Bernard Guetta, Urmas Paet, Marie‑Agnes Strack‑Zimmermann, Hilde Vautmans, Dainius Žalimas, Michał Kobosko
    on behalf of the Renew Group

    B10‑0148/2025

    European Parliament resolution on the white paper on the future of European defence

    (2025/2565(RSP))

    The European Parliament,

     having regard to Rule 136(2) of its Rules of Procedure,

    A. whereas over the last decade, major geopolitical shifts, amplified by the return of large-scale wars in the EU’s neighbourhood, have threatened the security of the EU, its Member States and its citizens;

    B. whereas the global order is fragmenting and is increasingly characterised by complex and entrenched instabilities;

    C. whereas the EU cannot be secure without security in its immediate neighbourhood; whereas Ukraine’s capacity to resist Russias war of aggression is vital to EU security;

    D. whereas recent statements by members of the US Administration, accompanied by the behaviour of the US leadership towards President Zelenskyy, reflect a shift in US foreign policy; whereas it is becoming increasingly clear that Europe needs to strengthen its own security and defence and must be in a position to help Ukraine win the war;

    E. whereas the biggest and fastest growth in Russia’s military capabilities is taking place close to Russia’s borders with the West, while the EU is taking its time to enhance its defence capacity;

    F. whereas there is an urgent need to further reform and strengthen the EU’s defence policy in the light of Ukraine’s recent war experience and the use of new war technologies;

    G. whereas it is in the EU’s interest to see Ukraine as an integral part of a genuine European security system;

    H. whereas, in their mission letters from the President of the European Commission, the Commissioner for Defence and Space and the High Representative of the Union for Foreign Affairs and Security Policy were tasked with presenting a white paper on the future of European defence within the first 100 days of their mandate;

    1. Considers that the EU must take urgent action to ensure its own autonomous security, strengthen useful partnerships with like-minded partners and significantly reduce its dependencies on other countries; stresses, therefore, that the EU is now facing a turning point in its history and construction; insists that ‘business as usual’ is no longer an option as it would mean the end of a safe and secure Europe; considers that the EU and its Member States have to choose between pulling together in a synchronised way and joining forces to overcome the threats and attacks against EU security, or standing alone at the mercy of aggressive adversaries and unreliable partners; recalls that Russia is the most significant direct threat to Europes security; emphasises, however, the fact that the instability in the EU’s Southern Neighbourhood must also be fully taken into consideration;

    2. Underlines that the EU must now adopt a holistic and cross-cutting approach, integrating a defence and security dimension into most European policies, including adequate regulatory and financial instruments to address identified capability needs and gaps;

    3. Believes therefore that the time has come for renewed political ambition to act and turn the EU into a genuine security provider, increase the EUs defence readiness and build a true European Defence Union; recalls that the adoption of the Strategic Compass was a good starting point, but that it must still be implemented in a timely manner; welcomes the recent EU defence instruments; insists on the urgent need to change scale, as EU defence efforts cannot remain limited in size, fragmented in scope and lengthy in delivery; calls for a quantum leap and a new approach on defence, accompanied by strong choices and decisions, an action plan and a short-to-long-term defence investment plan to enhance the blocs security infrastructure, improve deterrence, respond to hybrid threats and attacks, guarantee the mobilisation of equity and private capital and develop strategic enablers and strategic weapons systems to enhance Europe’s collective military power and thus reduce its dependency on others;

    4. Urges the EU to adopt a coherent, robust and comprehensive framework to strengthen its security and the security of its partners, to better identify potential future breaking points and prevent further crises, and, together with the Member States, to marshal responses similar to those required in times of war;

    5. Expects the white paper on European defence to define this new framework and the extent to which the EU can help Europe anticipate and ready itself for the most extreme military contingencies, deter potential aggressors and defend itself both in the short and long term with a view to becoming a credible power and a European pillar within NATO;

    6. Considers that common foreign and security policy (CSDP) missions and operations have to be reassessed and reviewed with this perspective in mind; insists that, to fulfil its role as an insurance policy for Europes security, the CSDP must become stronger and more agile, including by becoming the EUs instrument to fight against hybrid warfare;

    7. Stresses that capabilities and resources must be increased, and that the fragmentation of the defence market must be overcome; fully agrees with and shares the Draghi report’s[1] view that the EU and its Member States must urgently decide on incentives directed towards the EU defence industry and find creative solutions for large-scale public and private investments in security and defence;

    8. Urges the EU and its Member States to significantly increase their efforts to decisively shift the trajectory of Russias war against Ukraine; underlines that such a shift depends now almost entirely on Europeans; urges the Member States, therefore, to provide more arms and ammunition to Ukraine; warns, ahead of any negotiations, that if the EU should fail in its support, and if Ukraine were to be forced to surrender, Russia would turn against other countries, including possibly EU Member States; calls on the Council to work with Ukraine to identify a peaceful solution to the war, and to actively engage in implementing Ukraine’s Peace Formula; urges the EU and its Member States, first and foremost, to participate in establishing robust future security guarantees for Ukraine;

    9. Believes that the EU can play a crucial role in identifying the gap between Ukraine’s military capabilities and its needs, after three years of war, as well as in identifying the available defence capabilities of the Member States, with a view to coordinating the ramping up of defence industry production as well as ensuring the constant production of certain equipment in order to respond to foreign aggressions or the specific needs of its strategic partners;

    10. Calls for a significant increase in the financing of military support to Ukraine; condemns the veto imposed by one Member State on the functioning of the European Peace Facility; calls on the Member States to take the decision, together with their G7 partners, to use frozen assets as a basis for a substantial grant and loan to Ukraine, as a legally robust and financially substantial way to maintain and increase Europe’s response to Ukraine’s military needs;

    11. Urges the Council and the Member States to review and strengthen the enforcement of existing sanctions, and to adopt and strictly implement restrictive measures against all entities and countries facilitating the circumvention of sanctions and helping to provide Russias military complex with military and dual-use technologies and equipment;

    12. Insists on the paramount importance of cooperation with the Ukrainian defence industry and its integration, in the long term, into the EU’s defence technological and industrial base; recalls the urgency to properly finance the Ukraine instrument under the European Defence Industrial Programme (EDIP), which is not currently budgeted for;

    13. Strongly believes that the EU must further expand and improve its tailor-made training operations to respond to the needs of the Armed Forces of Ukraine and, in return, create the conditions for European armed forces to learn lessons and strategic practices from them;

    14. Calls for the EU and its Members States to facilitate the use of CSDP instruments to complement national security tools in the immediate vicinity of the EUs territory and territorial waters, and to strengthen dual-use and civilian-military cooperation at EU level, based on a whole-of-government approach; reiterates its call for the protection of critical underwater infrastructure and the development of protective countermeasures;

    15. Calls for the EU to develop a comprehensive EU risk assessment to help identify the major cross-sectoral threats and hazards and the concrete risks facing the EU as a whole, building on current sector-specific risk assessment processes;

    16. Insists on the importance of using the upcoming Preparedness Union strategy to put the EU on track towards comprehensive preparedness;

    17. Calls for a principle of ‘preparedness by design’ to be embedded consistently in a cross-cutting way across the EU institutions, bodies, and agencies; insists on the need to develop a mandatory security and preparedness check for future impact assessments and stress-tests of existing legislation; stresses the need to reduce the obstacles in current EU legislation that undermine the efficiency of European defence and security;

    18. Invites the Commission and the Member States to explore the feasibility of an EU preparedness act, setting joint standards and long-term guidelines, to align EU and national efforts wherever possible;

    19. Calls for the EU and its Member States to set up and regularly conduct an EU comprehensive preparedness exercise to test both high-level decision-making and operational coordination, in order to encourage the building of strong horizontal links between actors and across sectors;

    20. Calls for the EU to urgently adapt its tools to new realities by designing an administrative capacity to fast-track procedures during wars or other large-scale crises, and to adopt the appropriate tools;

    21. Considers regular threat analyses, like the one that was first conducted in the Strategic Compass, to be an absolute necessity; considers that the Strategic Compass, the CSDP, the white paper and the European defence industrial strategy should form the basis of a comprehensive vision for European defence;

    22. Recalls that the Strategic Compass provides the EU with necessary propositions; urges the Member States to take urgent decisions to ensure its full implementation; reiterates its call for the Military Planning and Conduct Capability to finally benefit from adequate premises and staff, enhanced command and control, and effective communication and information systems for all CSDP missions and operations; insists on the fact that the Rapid Deployment Capacity has to achieve full operational capability in 2025; strongly believes that more substantial progress must be made in bringing Article 42(7) of the Treaty on European Union (TEU) into operation;

    23. Reiterates its call to strengthen EU-NATO cooperation with actions and not only words, including in the domains of information exchange, planning coordination, improved cooperation on their respective military operations, and joint efforts to significantly improve on military mobility initiatives, building on lessons learnt from military assistance to Ukraine;

    24. Invites the Member States to actively participate in a priority ordering mechanism for defence production to help prioritise orders, contracts and the recruitment of employees in emergency situations; underlines that such a mechanism should apply beyond current defence applications to encompass other essential resilience-building infrastructure such as energy, transport and telecommunications;

    25. Calls for the EU, in cooperation with NATO and with the support of the European Defence Agency (EDA), to identify and address the critical defence capability gaps and shortfalls in the EU and focus efforts on European strategic enablers to provide genuine EU added value; notes that in order to address the most extreme military contingencies, the EU must use the same force requirements as those set by NATO for critical military capabilities, particularly for air defence, ammunition, long-range fire capabilities, logistics and enablement;

    26. Urges the EU and its Member States to move from a ‘flow’ approach to their military capabilities, which has prevailed during peacetime, to a ‘stock’ approach, with stockpiles of defence equipment ready for a sustained increase in demand; believes that the Commission should take all possible action to increase trust between Member States and encourage greater exchange and transparency on long-term planning, more proactive measures aimed at securing raw materials, and policies to close gaps in production processes and on the labour market;

    27. Calls for the EU to adopt a global and coherent approach to external aid in all its aspects, with much closer alignment between the common foreign and security policy and the objectives and instruments of the CSDP;

    28. Considers that the CSDP must become the EUs armed wing in the fight against the hybrid war being waged against it, its Member States and its partners, in particular candidate countries; is deeply worried by the sharp increase in hybrid attacks including sabotage, cyberattacks, information manipulation and interference in elections, with the objective of weakening the EU and candidate countries; calls on the Member States to consider appropriate forms of deterrence and countermeasures, including the use of Article 42(7) TEU; insists on the need to improve the CSDP’s ability to identify, prevent and counter information manipulation aimed at hindering the EUs external action; reiterates its call to establish an effective horizontal strategic communications strategy adapted to all EU communication channels;

    29. Calls for the creation, under the CSDP, of an EU crisis response air fleet comprising military transport aircraft held at EU level and made available to Member States for EU deployments, transport of equipment or troops (military mobility), or emergency evacuation – the need for which was demonstrated by the capability gap during the withdrawal from Afghanistan – as well as for civilian security missions, based on the model of the European Air Transport Command;

    30. Expects the European External Action Service to carry out comprehensive and uncompromising reviews of CSDP missions and operations taking into account, in particular, the realism of their respective mandates in relation to the resources allocated, the recruitment method for the staff of missions and operations, particularly with regard to the link between the skills required and the different profiles, the rationalisation of resources and the management of missions and operations, the transparency of calls for tender, activities and results obtained, best practice and lessons learned, and difficulties encountered; asks the Council, on the basis of these reviews, to take the decisions required to adapt or abandon ineffective missions and to strengthen the most useful missions; believes that the evaluation and control of CSDP missions and operations must be improved;

    31. Believes that the EU should develop wartime economic cooperation contingency plans with close partners to prepare for mutual support in the case of large-scale security crises involving them directly, and deepen wartime economic dialogues with European and global partners to provide early warning of hard, hybrid, and cyber threats, to foster mutual support planning, protection of critical infrastructure and maritime safety;

    32. Calls for the EU and its Member States, in cooperation with NATO, to remove all unnecessary regulatory obstacles that slow down the speed at which Europe is able to develop its military mobility; believes that the EU has to move from the logic of ‘mobility’ to that of ‘military logistics’; considers that the definition of military mobility should apply to infrastructure that covers all logistical aspects of mobility, including but not limited to logistics hubs, fuel, spare parts, repair capacity and ammunition; stresses the need for significant investments in military mobility infrastructure to enhance cargo airlift capabilities, for increased development of logistical infrastructure such as camps, depots, ports, air, sea and rail platforms, railways, waterways, roads and bridges; insists on the need to adapt regulations with the rapid implementation of the technical arrangement signed under the aegis of the EDA Cross Border Movement Permission, the harmonisation of customs formalities and the preparation of a centralised and reasoned lifting of road and rail traffic standards in the event of a crisis situation;

    33. Believes that, in order to build a favourable ecosystem for the European defence industry, the EU must provide it with a united and clear long-term vision, giving it visibility and ensuring that priority needs are addressed;

    34. Urges the EU to increase the coherence between existing and future EU instruments, in particular between Permanent Structured Cooperation on demand consolidation, and the European Defence Fund (EDF) on programmatic roadmaps, between the European defence industry reinforcement through common procurement act (EDIRPA) on joint procurement, and the Act in support of ammunition production (ASAP) on industrial ramp-up, between the EDIP on identification of dependencies, and the EDF on the resolution of identified dependencies; and within the EDIP itself on the coherence of actions related to the consolidation of demand and supply;

    35. Insists on the importance of EU flagship projects, in the form of European Defence Projects of Common Interest (EDPCI), which are critical to the European defence industry; believes that EDPCIs should be used to support the industrial and technological capacities underpinning major priorities shared by several Member States and in fields such as strategic enablers – particularly in space and European air defence – so as to act on the whole spectrum of threats, develop military mobility, in particular strategic and tactical air transport, deep strike capabilities, drone and anti-drone technologies, missiles and munitions, and artificial intelligence, as well as to develop sovereign infrastructure and critical enablers; emphasises that realism must prevail in view of the sheer number of priorities and the need to mobilise new resources; considers, in that regard, that the EU should focus on rapidly available and proven European technologies that reduce its dependencies and improve its security; calls for the creation of European defence industry champions as an objective to consolidate the EU’s defence technological and industrial base (EDTIB) and increase its global competitiveness; considers, furthermore, that instead of focusing on fair returns, EU defence policies should encourage the growth of European centres of excellence;

    36. Calls on the further development of the EU defence industrial policy to improve existing defence-specific instruments and develop new instruments where necessary, and to optimise the use of non-defence-specific instruments for the purposes of the EDTIB;

    37. Recalls the need to ensure the consistency of EU public policies, which must not generate obligations contradictory to the overall defence objectives, especially in a period of security crisis where the concept of ‘strategic exception’ should be introduced; calls for the creation of a genuine defence environment that supports industrial ramp-up efforts by taking better advantage of the Commission’s existing multi-sectoral instruments, screening, reviewing and, where needed, revising them to ensure that they do not undermine EU defence policy objectives;

    38. Proposes that relevant defence-related entities/activities be allowed access to InvestEU, and other EU funds taking advantage of the EU defence industry as a job creator; insists on the prioritising of defence-related entities/activities as appropriate with the support of the Chips Act, and the Critical Raw Materials Act; believes that simplification efforts announced by the Commission must fully encompass the defence sector;

    39. Insists on the need to ensure geographical coherence by taking stock of the will of the EU and the UK to work together, first and foremost to build security guarantees for Ukraine and to become closer security partners, but also to sign a joint declaration with concrete commitments and structured dialogue to strengthen EU-UK cooperation on the full range of foreign and security challenges the continent faces, the budgetary and regulatory conditions of which remain to be negotiated, and keeping in mind the importance of the EU’s decision-making autonomy;

    40. Calls for the coherence of the support offered to companies to be improved by reducing unnecessary administrative burdens and cutting red tape, and ensuring much easier access to support for small and mid-cap companies;

    41. Calls for greater coherence in governance, as the CSDP must become the instrument of a powerful Europe; considers that this requires a real link in governance between the Member States, the Vice-President of the Commission / High Representative of the Union for Foreign Affairs and Security Policy and the other European Commissioners; urges the Member States to overcome the complexity of decision-making on European defence; calls for the creation of a Council of defence ministers and the move from unanimity to qualified majority voting for decisions in the European Council, the Council of Ministers and EU agencies such as the EDA, except for those on military operations with an executive mandate; until then, calls for the use of Article 44 TEU and the creation of a cross-sectoral task force on defence in the Commission; calls for increased democratic accountability through enhanced control by Parliament;

    42. Stresses that the creation of a single European defence market is a priority as the fragmentation and lack of competitiveness of the European defence industry have so far hampered the capacity of the EU to take more responsibility as a security provider; recalls that the notion of a ‘defence market’ implies a full recognition of its specificity and an appropriate and consistent application of EU public policies; recalls that this single market should aim for European preference by strictly linking it to territoriality and added-value generated in the EU;

    43. Strongly believes that European preference should be the cornerstone of EU policies related to the European defence market, as a strategic imperative aimed at protecting European know-how and strengthening European defence capabilities on a long-term basis, and to ensure that EU taxpayer money is used to create added value on EU territory;

    44. Calls for the notion of the internal market to be linked to that of territoriality, as defence is driven by Member State policy rather than the market, and as the defence industry is under authorisation to produce and under exemption to sell;

    45. Insists on the need to remove barriers to market entry for defence products across the EU by reviewing the directives on the transfer of defence-related products and defence procurement;

    46. Underlines that the European preference principle must be reflected in EU defence regulations by clear and unambiguous eligibility criteria both for entities and for products;

    47. Calls on the Commission to design a better resourced, more strategic and more efficient successor to the EDF that supports common research and innovation in defence all along the supply chain and lays down the conditions for addressing technological challenges such as advanced persistent threats, artificial intelligence and machine learning, quantum computing, military internet of things, security, supply chain attacks, zero-day exploits and cloud security; calls for the establishment of an EU agency inspired by the American Defense Advanced Research Projects Agency (DARPA), adapted to the EUs specific characteristics, in order to fund strategic, groundbreaking projects designed to promote European technological and economic superiority;

    48. Is concerned that, without a substantial increase in investment in defence, the EU will not reach its objectives on security and defence, either for military support to Ukraine or to bolster the EU’s common security; highlights that the cost of non-preparedness for most extreme military contingencies would then be much higher than the cost of decisive EU preparedness; recalls that aggregate EU defence spending is inadequate and lacks sufficient focus on innovation; calls for the EU and the Member States to work and agree on the concrete ways and means for short- to long-term massive public and private investments in defence and security; recalls that the Commission has estimated the funding needed at EUR 500 billion over the next 10 years (2025-2034), including EUR 400 billion to strengthen Member States’ defence capabilities and EUR 100 billion to support Ukraine;

    49. Considers that, in the next EU multiannual financial framework (MFF), defence spending lines will have to reflect the new priority of being ‘ready for the most extreme military contingencies’ and include ambitious financing for military mobility, counter-mobility measures and defence industrial capacity building;

    50. Strongly supports the five-point Re-Arm Europe plan proposed by the Commissions President on 4 February 2025, which includes the possibility of triggering the escape clause of the Stability and Growth Pact for defence investments in order to allow Member States to increase their defence spending, a new instrument to provide EUR 150 billion of loans to Member States for defence investment, possibilities and incentives for Member States that choose to use cohesion policy programmes to increase defence spending, as well as the mobilisation of private capital through the completion of the capital markets union and the widening of the scope of the European Investment Bank (EIB); urges the Member States to support this plan;

    51. Strongly supports the notion that Member States must increase financing for their defence and security to new levels; notes that some Member States are already increasing their defence spending to 5 % of GDP and insists that the current security environment and multiple, complex and evolving security threats require Member States to spend at least 3 % of GDP on defence;

    52. Insists that urgent needs cannot wait for the next MFF; insists that innovative solutions for finding additional funding must be considered without delay, including:

    (a) re-prioritising existing EU funds,

    (b) investing in the defence sector by making it explicitly eligible under the European Regional Development Fund and the Cohesion Fund, while leaving the regions and Member States free to decide whether to make it a priority according to local needs;

    (c) making it easier and faster to re-purpose funds from one project to another,

    (d) exploring the possibility of adjusting EU funding criteria to give new prominence to security criteria in allocating spending;

    53. Underlines that a ‘popular loan’ would not only mobilise the European families’ savings, but also unify the 450 million European citizens around the need to improve our collective security; stresses that this popular loan should be organised with the same rules and advantages in all the 27 Member States and could give a common sense of belonging to the nations of the EU;

    54. Is of the opinion that national recovery and resilience plans should be amended to allow for new defence funding;

    55. Recommends the identification of new resources that could require contributions from the Member States as part of a new EU debt programme along the lines of the NextGenerationEU plan, following on from the idea of ‘defence bonds’, to complement the Commission’s Re-Arm Europe plan, if necessary;

    56. Reiterates, in line with the Commission’s Re-Arm Europe plan, its call for the EIB, other international financial institutions and private banks in Europe to invest more actively in the European defence industry, as speeding up security and defence investments in the EU would leverage private funding and have a strong signalling effect as regards other investors and market operators;

    57. Calls on the EIB in particular to re-evaluate its list of excluded activities, to adjust its lending policy to increase the volume of available funding in the field of security and defence, and to investigate the possibility of issuing earmarked debt for funding security and defence projects;

    58. Calls for the development of emergency procedures for projects established in response to major crises or wars whereby the EU, jointly with the EIB, the European Bank for Reconstruction and Development, and the Council of Europe Development Bank, can enable banks to use faster processes to support projects necessary in crises or wars; calls for the EU also to consider amending the Treaties to allow the use of capital from the European Stability Mechanism for Europes war economy;

    59. Instructs its President to forward this resolution to the European Council, the Council, the Vice-President of the Commission / High Representative of the Union for Foreign Affairs and Security Policy, the President of the Commission and competent Commissioners, the EU security and defence agencies and the governments and parliaments of the Member States.

     

    MIL OSI Europe News

  • MIL-OSI Europe: MOTION FOR A RESOLUTION on the white paper on the future of European defence – B10-0144/2025

    Source: European Parliament

    B10‑0144/2025

    European Parliament resolution on the white paper on the future of European defence

    (2025/2565(RSP))

    The European Parliament,

     having regard to the common security and defence policy (CSDP) and the common foreign and security policy (CFSP) of the EU,

     having regard to the Treaty on European Union, and in particular Article 42 thereof,

     having regard to Title III, Article 3 of the Protocol on the concerns of the Irish people on the Treaty of Lisbon,

     having regard to the announced publication of the white paper on the future of European defence on 19 March 2025,

     having regard to the Helsinki Accords,

     having regard to the various European defence projects of recent years,

     having regard to Rule 136(2) of its Rules of Procedure,

    A. whereas, in line with the Treaties, the CSDP is part of the CFSP and is considered a policy framework through which Member States can develop a European strategic culture of security and defence, address conflicts and crises together, protect the Union and its citizens and strengthen international peace and security;

    B. whereas Article 42(2) TEU states that the Union’s CSDP must be compatible with the common security and defence policy established within the framework of the North Atlantic Treaty Organisation (NATO), under the North Atlantic Treaty;

    C. whereas NATO is largely dominated by the United States, and NATO membership entails a mandatory complementarity and compatibility of European weapons systems with US systems, hence impeding the strategic and operational autonomy of Member States and other European countries;

    D. whereas at the NATO Summit in Bucharest in 2008, the US Government pushed for Ukrainian NATO membership against the opinion of several Member States; whereas following the Russian invasion, the United States pushed EU Member States to systematically increase the quantity and quality of arms deliveries to Ukraine;

    E. whereas different Member States have different military and security policies, including policies of military neutrality;

    F. whereas the United States saw windfall benefits from the Ukraine war through an increase of US shale gas exports to the European Union; whereas the US Government now unjustly wishes to control Ukrainian mineral resources and negotiate an end to the war in Ukraine with Putin, without involving Ukraine and the European Union;

    G. whereas unlike nuclear weapon states such as India and the People’s Republic of China, NATO and Russia refuse to commit to a ‘no first use’ policy, whereby they would formally refrain from using nuclear weapons, except in retaliation to an attack by an enemy power using weapons of mass destruction;

    H. whereas the US Government has launched a high number of wars and military operations that violated international law and the principles of the Charter of the United Nations; whereas, in light of 2024 advisory opinions of the International Court of Justice, the United States’ ongoing military support for Israel might make it complicit in genocide and illegal occupation; whereas the participation of EU Member States in violations of international law, including in wars of aggression and military invasions contrary to international law against countries such as the former Yugoslavia, Afghanistan, Iraq and Libya, have undermined global adherence to the principles of international law;

    I. whereas the United States has forwardly deployed new B61-12 gravity bombs on the territory of EU Member States, increasing the risk that these Member States will fall victim to preventive or retaliatory strikes related to US foreign policy;

    J. whereas Russia’s repeated acts of war and aggression, starting with the war against Georgia in 2008, the annexation of Crimea in 2014 and the ongoing illegal war of aggression against Ukraine, as well as an increasing number of acts of sabotage on critical infrastructure, have been factors in creating and exacerbating tensions;

    K. whereas Article 41(2) TEU prohibits charging expenditure arising from operations with military or defence implications to the Union budget;

    L. whereas the Commission has nevertheless launched several European defence projects over the last few years, including the European Defence Industrial Development Programme (EDIDP), the Preparatory Action on Defence Research (PADR), the European Defence Fund (EDF), the European Defence Industry Reinforcement through common Procurement Act (EDIRPA), the Act in Support of Ammunition Production (ASAP) and, most recently, the European Defence Industrial Strategy (EDIS) and the European Defence Industry Programme (EDIP);

    M. whereas according to 2023 Stockholm International Peace Research Institute figures, EU Member States, together with the United Kingdom, already spend more nominally on defence than all other countries in the world combined, with the exception of the United States;

    N. whereas in April 2021, the Commission estimated that increased cooperation between Member States in the field of security and defence could save between EUR 25 billion and EUR 100 billion every year;

    O. whereas the Commission’s Directorate-General for International Partnerships (DG INTPA) is planning to shut down more than four out of five of its hubs worldwide, reducing its diplomatic presence from around 100 delegations to 18 hubs;

    P. whereas in 2024, EU leaders agreed to cut EUR 2 billion from the EU’s external action budget in the multiannual financial framework for 2021-2027; whereas several Member States, such as France and Belgium, have also made cuts and reforms to their diplomacy services;

    Q. whereas Commission President Ursula von der Leyen has proposed a new common instrument to boost military spending across the EU to unlock up to EUR 800 billion of additional defence spending over the coming years;

    R. whereas even the military spending of the United States, which maintains over 700 military installations in over 70 countries, does not exceed 3.46 % of its GDP;

    S. whereas, nevertheless, the US Government, certain Member States and NATO and Commission officials are pushing for a further massive increase in defence expenditure, from an average of 1.9 % of GDP to 5 %;

    T. whereas even the military-oriented Niinisto Report, entitled ‘Safer Together –Strengthening Europe’s Civilian and Military Preparedness and Readiness’ highlights the fact that threats to the security of European citizens, including increasingly frequent and intense extreme weather events, such as megadroughts, floods and heatwaves, and the risk of new pandemics, would require massive investment in public services;

    U. whereas while the Draghi report on the future of European competitiveness highlights the need for massive investment in a variety of sectors, including energy, pharmaceuticals and transport, the Commission has placed seven Member States under an excessive deficit procedure, pushing for harsh austerity and structural reforms in social and public expenses;

    V. whereas a further massive increase in military expenditure will instead lead to cuts in public services, and in social, climate and environmental spending throughout Europe, endangering the social and human security of European citizens;

    W. whereas the Commission is nonetheless considering the suspension of economic governance rules for military expenses;

    X. whereas the Commission has failed to present a fully autonomous assessment of European defence needs and priorities, relying instead on NATO assessments of critical gaps in defence capability;

    Y. whereas Türkiye, a NATO member, illegally occupies 37 % of Cyprus, an EU Member State;

    Z. whereas in international relations theory the ‘security dilemma’ refers to a phenomenon whereby actions, such as arms procurement, taken by a state actor to increase its own security provokes reactions from other states, such as increased arms procurement or preventive attacks, that ultimately lead to a decrease rather than an increase in the original state’s security;

    AA. whereas the 1975 Final Act of the Conference on Security and Cooperation in Europe, concluded in Helsinki between the United States, Canada, the Soviet Union and all of the countries of Europe, except Albania, played an important role in easing tensions between East and West during the Cold War;

    AB. whereas the Cold War collective security acquis has been systematically undermined by the United States’ withdrawal from the Anti-Ballistic Missile Treaty (ABM), the Intermediate-Range Nuclear Forces Treaty (INF) and the Open Skies Treaty, systematically followed by Russian withdrawals, and by the Russian withdrawal from the Treaty on Conventional Armed Forces in Europe and from the Comprehensive Nuclear Test Ban Treaty;

    AC. whereas a new European security architecture will have to apply the principles of peaceful coexistence between countries with different political systems and offer security guarantees to all parties in order to avoid Europe being divided once again into two diametrically opposed blocs;

    Towards a European collective security architecture

    1. Recalls that the Treaties consider the CSDP part of the CFSP; asks, therefore, that any defence initiative at EU level be subordinated to a clear foreign and security policy and strategy for peace on the European continent;

    2. Rejects the militarisation of the EU and any belligerent objectives of the CSDP;

    3. Notes with great concern the diminishing respect for international and humanitarian law by parties all around the world, with Israel, Russia and the United States being flagrant examples; reiterates the need for European independence in shaping foreign and defence policy;

    4. Considers that in light of the United States’ past and ongoing violations of international law and the negative impact of US military interventions on neighbouring regions, the foreign, security and defence policy of the Union and Member States can no longer be aligned with the framework of the North Atlantic Treaty Organisation (NATO); calls, therefore, on the European Council to start the process of revising the EU Treaties to remove this requirement from the TEU;

    5. Recalls that NATO and the EU are distinct organisations which serve very different purposes and whose membership is not even identical; regrets the conflation of NATO, a military alliance, with the EU;

    6. Is extremely worried by the fact that there are still more than 13 000 nuclear weapons scattered around the world, many of which can be deployed within minutes and could cause the end of humankind; notes with concern that despite a stated commitment to the Non-Proliferation Treaty, NATO’s nuclear member states invested USD 271 billion in nuclear weapons modernisation and maintenance between 2019 and 2023, while in 2023 China and Russia were the second and third largest spenders, with budgets of USD 11.9 billion and USD 8.3 billion respectively;

    7. Believes that NATO’s refusal to commit to a ‘no first use’ policy on nuclear weapons and the forward deployment of US nuclear weapons in Europe increases the risk of Europe becoming a target of nuclear strikes; demands, therefore, the withdrawal of US nuclear weapons from the territory of Member States; is deeply concerned about nuclear threats to European security, including veiled warnings about the use of tactical nuclear weapons and Russia’s lowering of its threshold for using nuclear weapons;

    8. Urges the Member States to work on a new long-term collective security architecture for Europe inspired by the principles of the Helsinki process and including the concept of mutual security guarantees; notes that a fundamental aspect of such an approach is respect for the sovereignty and territorial integrity of all nations and a commitment to international law;

    9. Insists that a new European security architecture apply the principles of peaceful coexistence between countries with different political systems, and offer security guarantees to all parties;

    10. Calls on the Commission, in light of multiple threats ranging from climate-related catastrophes to pandemics, to abandon a narrow focus on military security and develop a policy centred on human security as defined in United Nations General Assembly resolution 66/290, which states that ‘human security is an approach to assist Member States in identifying and addressing widespread and cross-cutting challenges to the survival, livelihood and dignity of their people’ and calls for ‘people-centred, comprehensive, context-specific and prevention-oriented responses that strengthen the protection and empowerment of all people’;

    11. Calls on the Commission and Member States to seek inspiration from Austria, which has enshrined neutrality in its constitution, committing not to join military alliances and not to permit the establishment of any foreign military bases on its territory;

    12. Calls on the Commission and Member States to also look to the example set by Ireland, with its tradition of military neutrality; recalls that this tradition includes an active approach towards peace support operations and crisis management, contributions to conflict resolution and peacebuilding, work for human rights and development, and efforts to promote disarmament and the elimination of weapons of mass destruction;

    13. Regrets the attacks on Irish neutrality and recalls that the people of Ireland were guaranteed continued military neutrality, underpinned by a commitment to only undertake operations with a United Nations mandate, ahead of their ratification of the Lisbon Treaty;

    14. Reiterates its call on Türkiye, a NATO member, to withdraw its troops from Cyprus, an EU Member State, and to work constructively towards finding a viable and peaceful solution based on the relevant UN resolutions;

    15. Calls for unanimity voting on defence issues to be maintained within the Council to promote consensus-based solutions that foster much-needed unity;

    Diplomacy as the cornerstone of European security

    16. Believes that diplomacy should remain a cornerstone of EU foreign policy;

    17. Recalls that conflict prevention is paramount to any security and defence strategy; underlines the fact that diplomacy prevents and ends wars, and that every euro invested in conflict prevention saves around EUR 16 later on;

    18. Believes that, given the deteriorating security situation on several fronts and increasing geopolitical tensions, preventive diplomacy requires sustained and enhanced attention; calls, therefore, on the Commission and Member States to immediately reverse the cutbacks made to diplomatic representations;

    19. Believes that its systematic alignment with US foreign policy, most recently with regard to Israeli war crimes, ethnic cleansing and genocidal practices against Palestinians, has dramatically reduced the EU’s global diplomatic credibility and therefore worsened its security situation;

    20. Recalls that the participation of EU Member States in illegal military operations and the support for violations of international law abroad gravely endangers the security of EU citizens; urges the Commission and Member States to explore a non-aligned foreign and security policy stance based on the principles of the UN Charter, including peaceful conflict resolution, diplomacy and multilateralism;

    21. Believes that Europe has much to gain from diversifying its relations and maintaining diplomatic connections with as many countries as possible around the world;

    Arms control, disarmament and non-proliferation

    22. Is deeply concerned that world military expenditure continues to rise to new record levels; highlights the fact that an arms race will not create security for European citizens, but instead, in line with the security dilemma, heighten the risk of violent conflict; calls on the Commission to actively promote new arms control treaties;

    23. Recalls that the EU strategy against the proliferation of weapons of mass destruction made non-proliferation a central goal of the EU’s CFSP, stating that ‘our objective is to prevent, deter, halt and, where possible, eliminate proliferation of concern worldwide’; calls, therefore, on Member States to sign and ratify the Treaty on the Prohibition of Nuclear Weapons;

    24. Notes that arms exports, also of small and light weapons, can fuel conflict and global terrorism and destabilise entire regions, states and societies, thereby thwarting sustainable development and crisis management efforts; calls on the Commission and Member States to strictly apply Council Common Position 2008/944/CFSP of 8 December 2008 defining common rules governing control of exports of military technology and equipment in order to avoid a worsening of the security situation in the EU’s immediate neighbourhood;

    25. Calls for the creation of a Directorate-General for Disarmament and Arms Control at the Commission;

    26. Demands an immediate arms embargo against Israel and any other country directly or indirectly involved in armed conflict, except in the case of those that are the victim of invasion by others, in order to stop EU complicity in war crimes, ethnic cleansing and genocidal practices, whether perpetrated by Israel or any other country; calls on the Commission and Member States to base their foreign and security policy on the principles of the Charter of the United Nations and international law;

    Defence expenditure

    27. Urges the Commission and Member States to offer full transparency and a critical audit of the current defence expenditure within the Union, detailing why it estimates that European countries would be unable to defend themselves with budgets already vastly superior to those of most of the world’s countries;

    28. Notes with concern that the Commission has presented a new EUR 150 billion common defence fund; believes that an increase in defence spending is not the solution to finding a lasting peace and that cuts in the EU structural funds should not be used for this purpose, given how vital these funds are to the development of local communities across the EU;

    29. Notes that the share of GDP is not an adequate measure for the efficiency and impact of defence expenditure; calls on the Commission and Member States not to enter an arms race through a massive increase in defence budgets at the expense of both human and social security;

    30. Regards the NATO demand for complementarity and compatibility of European weapons systems with US systems as incompatible with European strategic autonomy; regrets that the Commission and the Council have failed to present a detailed assessment of European critical defence capability gaps; calls on both institutions to present such an assessment, including specific priorities, before considering increased defence expenditure; recalls that these should focus on defensive tasks, not on building capacities for military intervention all over the world;

    31. Recalls Commission estimates that increased cooperation between Member States in the field of security and defence could save up to EUR 100 billion every year; calls, in this regard, for inspiration to be drawn from existing intra-European cooperation structures, such as BACA, the Belgian-Dutch Naval cooperation BeNeSam and the Nordic Defence Cooperation, including Denmark, Finland, Iceland, Norway and Sweden, which have increased the efficiency of the participating nations’ national defence, and to explore common synergies and facilitate efficient common solutions;

    32. Considers that the military cooperation commitments that may be assumed in collective security organisations should be considered in light of strict respect for the UN Charter;

    33. Rejects the allocation of appropriations on the EU budget to the EU’s militarisation; calls for the reallocation of EU budget funds earmarked for the ongoing militarisation of the EU and its programmes to respond to the social and economic needs of citizens and promote cohesion between Member States;

    34. Highlights the fact that there can be neither autonomy nor security without digital sovereignty; calls on the Commission to prioritise the development of a democratic, public-led digital stack that includes digital infrastructure as a service, and universal platforms, such as search engines and foundation AI models, governed by new public institutions with public and civil society representation;

    35. Calls for heightened cooperation between Member States on sectoral issues of critical infrastructure protection, such as submarine cables;

    Defence industry

    36. Recalls that over the past three years, the EU has adopted a number of new initiatives on defence, and that the new Commissioner for Defence and Space believes that an additional investment of EUR 500 billion is needed in the coming decade, though other sources speak of EUR 700 billion;

    37. Recalls that the previous EU programmes have been implemented with a lack of transparency with regard to the application of EU ethical guidelines, and that decision-making is extremely opaque and heavily influenced by arms industry lobbyists;

    38. States that without ethics in investment choices, the EU will contribute to the creation of a more dangerous and lawless world order, where imperialist powers can disregard international law without facing consequences, while countries of the global south are exploited for their resources;

    39. Calls, in addition, for the EU to adopt a policy of transparent, mission-oriented military spending, with more conscious spending at the service of a defined foreign policy to ensure greater efficiency;

    40. Recalls that under Article 41(2) TEU expenditure arising from operations having military or defence implications may not be charged to the EU budget; calls for a strict application of this article; demands a retroactive review of corresponding defence funds and budget lines and for their termination where needed;

    41. Expresses deep concern about the increased subsidies and public support for the military-industrial complex amid record total global military expenditure of USD 2 443 billion in 2023, making 2023 the ninth consecutive year in which military expenditure increased;

    42. Demands that European public money go to European companies and emphasises that public European companies should, by definition, remain in Europe, while private companies can relocate their activities if they so wish;

    43. Observes that leading arms companies have benefited shamelessly from the war in Ukraine; notes that Lockheed Martin alone distributed USD 6.8 billion of cash to shareholders in dividends and share repurchases in 2024; demands that windfall profits be taxed to finance climate adaptation, public health and housing, which are also components of a broader understanding of security;

    44. Considers that the use of public money should systematically correspond to a proportional public return on investment and not finance corporate profit;

    45. Stresses that focusing our resources, notably research and development spending, on the military sector will also slow down the development of other strategic industries with civilian purposes, such as renewable energy or pharmaceuticals;

    46. Adds that military spending does not address any of the major social or environmental challenges, and that, worse still, it reinforces polluting and energy-consuming industrial models, thus increasing pressure on resources and the climate, particularly critical materials;

    47. Believes that a massive increase in purchases of US-made goods would not only be detrimental to the European economy but would equally prolong Europe’s military dependence on the United States, while creating new industrial and technological constraints;

    48. Demands that the defence industry continue to be excluded from qualifying for the sustainability criteria with regard to investment;

    49. Calls for EIB financing to be strictly limited to civilian projects, excluding dual-use items;

    Reprioritising public services and social spending

    50. Is deeply concerned that militarisation, and specifically the ReArm Europe plan, is being used to further attack public services across the EU, which are already facing the suffocating effects of austerity measures imposed by the Commission;

    51. Is appalled by the fact that the Commission is willing to bend fiscal rules such as the Stability and Growth Pact to finance military spending, but considers it impossible to raise spending to fund crumbling public services and support social and economic upward convergence in Member States;

    52. Firmly insists that health, education, green mobility, climate adaptation, climate mitigation, biodiversity, food security and digital transition are elements of human security and should be considered priorities that require investments rather than budgetary cuts;

    53. Calls, in line with the concept of human security, for a reprioritisation of public services and social welfare spending, as well as for investments in fighting climate change, as imperative prerequisites for guaranteeing that people live in a safe and secure environment;

    °

    ° °

    54. Instructs its President to forward this resolution to the Council, the Commission, the Vice-President of the Commission / High Representative of the Union for Foreign Affairs and Security Policy and the European External Action Service.

     

     

    MIL OSI Europe News

  • MIL-OSI Asia-Pac: IWAI signs MoU with J&K to boost river cruise tourism

    Source: Government of India

    IWAI signs MoU with J&K to boost river cruise tourism

    MoU signed on the sidelines of Chintan Shivir being held in Srinagar in presence of Union Minister Shri Sarbananda Sonowal

    Posted On: 06 MAR 2025 4:29PM by PIB Delhi

    The Inland Waterways Authority of India (IWAI) under the Ministry of Ports, Shipping and Waterways has signed a Memorandum of Understanding (MoU) with the Government of Jammu and Kashmir (J&K), to boost river cruise tourism on three National Waterways in J&K.

    The MoU was signed on the sidelines of Chintan Shivir being held in Srinagar in the presence of Union Minister of Ports, Shipping and Waterways, Shri Sarbananda Sonowal and Minister of State for Ports, Shipping and Waterways Shri Shantanu Thakur.  Minister of Food, Civil Supplies and Consumer Affairs, Transport, Science and Technology, Information Technology, Youth Services and Sports, Government of Jammu and Kashmir, Shri Satish Sharma; Secretary, Ministry of Ports, Shipping and Waterways, Shri T.K. Ramachandran; Chairman, IWAI, Shri Vijay Kumar along with other dignitaries were also present on the occasion.

    The Inland Waterways Authority of India has been actively promoting cruise tourism in India and the agreement with the Government of Jammu and Kashmir aims to further boost tourism, generate employment, boost economic growth and provide a new mode of leisure/budget tourism on rivers in Jammu and Kashmir.

    Of the 111 national waterways in the country, Union Territory of Jammu and Kashmir has three declared national waterways, i.e., River Chenab (NW-26), River Jhelum (NW-49) and River Ravi (NW-84). With the vision to promote river cruise tourism, various cruise circuits were announced for development – spanning from Kashmir to Kerala and Assam to Gujarat – in the recently concluded Second Meeting of Inland Waterways Development Council (IWDC). Within a period of two months, IWAI took a significant step to develop river cruise tourism in the UT of Jammu and Kashmir for an approximate cost of Rs 100 crore.

    Under the framework of MoU; the IWAI will provide waterside infrastructure, i.e., ten floating jetties and landside infrastructure comprising of waiting hall and other amenities for cruise passengers. Out of ten, two floating jetties will be installed at Akhnoor and Reasi (near Jammu) the declared portion of River Chenab (NW-26); seven floating jetties at Pantha Chowk, Zero Bridge, Amira Kadal, Shah-e-Hamdan, Safa Kadal/Chattabal Shrine, Sumbal Bridge and Gund Prang (in Srinagar and Bandipora) River Jhelum (NW-49) and one jetty at Sohar on River Ravi (NW-84).  Additionally, IWAI will develop navigational fairway by executing dredging wherever required, provide navigational aids and conduct regular hydrographic surveys for safe plying of vessels in these waterways.

    The J&K government will provide land for construction of landside facilities, facilitate all statutory clearances and appoint cruise operators in identified sectors of the three National Waterways.  The IWAI will also provide any technical assistance required by Government of J&K.

    Under the dynamic leadership of Prime Minister Shri Narendra Modi and the able guidance of Minister of Ports, Shipping and Waterways Shri Sarbananda Sonowal, IWAI has been making several infrastructural interventions to develop waterways as a robust engine of growth.  With its concerted efforts, IWAI is expanding its footprint throughout the country and is presently working towards capacity augmentation of NW 1, NW 2, NW 3 and NW 16 among other waterways by means of developing IWT terminals, fairways through end-to-end dredging contracts, navigational aids like night navigation facility, navigational locks among others.

    With proactive steps like developing cruise terminals and related infrastructure, IWAI is working towards promoting river cruise tourism by utilising the immense potential of rivers in the country.  The Authority has rolled out initiatives to boost cruise tourism on River Ganga and River Brahmaputra. The success of world’s longest cruise MV Ganga Vilas underlines the same. The partnership between IWAI and Jammu and Kashmir government is an exciting initiative that promises to promote sustainable tourism practices while stimulating local economic growth and enhancing tourist experience.

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    G.D. Hallikeri / Henry

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    MIL OSI Asia Pacific News

  • MIL-OSI Asia-Pac: India is shaping its digital future with a strong focus on Digital Public Infrastructure, AI, semiconductor and electronics manufacturing: Prime Minister

    Source: Government of India (2)

    Posted On: 06 MAR 2025 4:12PM by PIB Delhi

    The Prime Minister Shri Narendra Modi remarked that India is shaping its digital future with a strong focus on Digital Public Infrastructure, AI, semiconductor and electronics manufacturing. Urging everyone to read an article written by Union Minister Shri Ashwini Vaishnaw, the Prime Minister’s Office handle in a post on X said:

    “Union Minister Shri @AshwiniVaishnaw elaborates on how India is shaping its digital future with a strong focus on Digital Public Infrastructure (DPI), AI, semiconductor and electronics manufacturing. Do read!”

     

     

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    MJPS/SR

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    MIL OSI Asia Pacific News

  • MIL-OSI Asia-Pac: India’s AI Revolution

    Source: Government of India (2)

    India’s AI Revolution

    A Roadmap to Viksit Bharat

    Posted On: 06 MAR 2025 4:09PM by PIB Delhi

    Introduction

    India is undergoing a remarkable transformation in Artificial Intelligence, driven by the visionary leadership of PM Modi. For the first time in India’s history, the government is actively shaping an AI ecosystem where computing power, GPUs, and research opportunities are accessible at an affordable cost.

    Unlike in the past, AI in India is no longer confined to a privileged few or dominated by global tech giants. Through forward-looking policies, the Modi government is empowering students, startups, and innovators with world-class AI infrastructure, fostering a truly level playing field. Initiatives such as the IndiaAI Mission and the establishment of Centres of Excellence for AI are strengthening the country’s AI ecosystem, paving the way for innovation and self-reliance in this critical sector.

    These efforts align with the vision of Viksit Bharat by 2047, where India aspires to become a global AI powerhouse, leveraging cutting-edge technology for economic growth, governance, and societal progress.

    AI Compute and Semiconductor Infrastructure

    India is rapidly building a strong AI computing and semiconductor infrastructure to support its growing digital economy. With the approval of the IndiaAI Mission in 2024, the government allocated ₹10,300 crore over five years to strengthen AI capabilities. A key focus of this mission is the development of a high-end common computing facility equipped with 18,693 Graphics Processing Units (GPUs), making it one of the most extensive AI compute infrastructures globally. This capacity is nearly nine times that of the open-source AI model DeepSeek and about two-thirds of what ChatGPT operates on.

    Here are the key developments:

    • Scaling AI Compute Infrastructure: The initial phase of the mission has already made 10,000 GPUs available, with the remaining units to be added soon. This will enable the creation of indigenous AI solutions tailored to Indian languages and contexts.
    • Opening Access to High-Performance Computing: India has also pioneered the launch of an open GPU marketplace, making high-performance computing accessible to startups, researchers, and students. Unlike many countries where AI infrastructure is controlled by large corporations, this initiative ensures that small players have an opportunity to innovate.
    • Robust GPU Supply Chain: The government has selected 10 companies to supply the GPUs, ensuring a robust and diversified supply chain.
    • Indigenous GPU Capabilities: To further strengthen domestic capabilities, India aims to develop its own GPU within the next three to five years, reducing reliance on imported technology.
    • Affordable Compute Access: A new common compute facility will soon be launched, allowing researchers and startups to access GPU power at a highly subsidised rate of ₹100 per hour, compared to the global cost of $2.5 to $3 per hour.
    • Strengthening Semiconductor Manufacturing: In parallel, India is advancing semiconductor manufacturing, with five semiconductor plants under construction. These developments will not only support AI innovation but also reinforce India’s position in the global electronics sector.

     

    Advancing AI with Open Data and Centres of Excellence (CoE)

    Recognising the importance of data in AI development, the Modi government has launched the IndiaAI Dataset Platform to provide seamless access to high-quality, non-personal datasets. This platform will house the largest collection of anonymised data, empowering Indian startups and researchers to develop advanced AI applications. By ensuring diverse and abundant datasets, this initiative will drive AI-driven solutions across key sectors, enhancing innovation and accuracy.

    • IndiaAI Dataset Platform for Open Data Access: The platform will enable Indian startups and researchers to access a unified repository of high-quality, anonymised datasets, reducing barriers to AI innovation.
    • Boosting AI Model Accuracy with Diverse Data: By providing large-scale, non-personal datasets, the initiative will help reduce biases and improve the reliability of AI applications across domains such as agriculture, weather forecasting, and traffic management.
    • Centres of Excellence: The government has established three AI Centres of Excellence (CoE) in Healthcare, Agriculture, and Sustainable Cities in New Delhi. The Budget 2025 further announced a new CoE for AI in education with an outlay of ₹500 crore, making it the fourth such centre.
    • Skilling for AI-Driven Industries: Plans are in place for five National Centres of Excellence for Skilling, which will equip youth with industry-relevant expertise. These centres will be set up in collaboration with global partners to support the ‘Make for India, Make for the World’ vision in manufacturing and AI innovation.

     

    India’s AI Models & Language Technologies

    The government is facilitating the development of India’s own foundational models, including Large Language Models (LLMs) and problem-specific AI solutions tailored to Indian needs. To foster AI research, multiple Centres of Excellence have also been set up.

    • India’s Foundational Large Language Models: IndiaAI has launched an initiative to develop indigenous foundational AI models, including LLMs and Small Language Models (SLMs), through a call for proposals.
    • Digital India BHASHINI: An AI-led language translation platform designed to enable easy access to the internet and digital services in Indian languages, including voice-based access, and support content creation in Indian languages.
    • BharatGen: The world’s first government-funded multimodal LLM initiative, BharatGen was launched in 2024 in Delhi. It aims to enhance public service delivery and citizen engagement through foundational models in language, speech, and computer vision. BharatGen involves a consortium of AI researchers from premier academic institutions in India.
    • Sarvam-1 AI Model: A large language model optimised for Indian languages, Sarvam-1 has 2 billion parameters and supports ten major Indian languages. It is designed for applications such as language translation, text summarisation, and content generation.
    • Chitralekha: An open-source video transcreation platform developed by AI4Bhārat, Chitralekha enables users to generate and edit audio transcripts in various Indic languages.
    • Hanooman’s Everest 1.0: A multilingual AI system developed by SML, Everest 1.0 supports 35 Indian languages, with plans to expand to 90.

     

    AI Integration with Digital Public Infrastructure

    India’s Digital Public Infrastructure (DPI) has redefined digital innovation by combining public funding with private sector-led innovation. Platforms like Aadhaar, UPI, and DigiLocker serve as the foundation, while private entities build application-specific solutions on top of them. This model is now being enhanced with AI, integrating intelligent solutions into financial and governance platforms. The global appeal of India’s DPI was evident at the G20 Summit, where several countries expressed interest in adopting similar frameworks. Japan’s patent grant to India’s UPI payment system further underscores its scalability.

    For Mahakumbh 2025, AI-driven DPI solutions played a crucial role in managing the world’s largest human gathering. AI-powered tools monitored real-time railway passenger movement to optimise crowd dispersal in Prayagraj. The Bhashini-powered Kumbh Sah’AI’yak Chatbot enabled voice-based lost-and-found services, real-time translation, and multilingual assistance. Its integration with Indian Railways and UP Police streamlined communication, ensuring swift issue resolution. By leveraging AI with DPI, Mahakumbh 2025 set a global benchmark for tech-enabled, inclusive, and efficient event management.

    AI Talent & Workforce Development

    India’s workforce is at the heart of its digital revolution. The country is adding one Global Capability Center (GCC) every week, reinforcing its status as a preferred destination for global R&D and technological development. However, sustaining this growth will require continuous investment in education and skill development. The government is addressing this challenge by revamping university curricula to include AI, 5G, and semiconductor design, aligning with the National Education Policy (NEP) 2020. This ensures that graduates acquire job-ready skills, reducing the transition time between education and employment.

    • AI Talent Pipeline & AI Education: Under the IndiaAI Future Skills initiative, AI education is being expanded across undergraduate, postgraduate, and Ph.D. programs. Fellowships are being provided to full-time Ph.D. scholars researching AI in the top 50 NIRF-ranked institutes. To enhance accessibility, Data and AI Labs are being established in Tier 2 and Tier 3 cities, with a model IndiaAI Data Lab already set up at NIELIT Delhi.
    • India Ranks 1st in Global AI Skill Penetration: According to the Stanford AI Index 2024, India ranks first globally in AI skill penetration with a score of 2.8, ahead of the US (2.2) and Germany (1.9). AI talent concentration in India has grown by 263% since 2016, positioning the country as a major AI hub. India also leads in AI Skill Penetration for Women, with a score of 1.7, surpassing the US (1.2) and Israel (0.9).
    • AI Innovation: India has emerged as the fastest-growing developer population globally and ranks second in public generative AI projects on GitHub. The country is home to 16% of the world’s AI talent, showcasing its growing influence in AI innovation and adoption.
    • AI Talent Hubs: The India Skills Report 2024 by Wheebox forecasts that India’s AI industry will reach USD 28.8 billion by 2025, with a CAGR of 45%. The AI-skilled workforce has seen a 14-fold increase from 2016 to 2023, making India one of the top five fastest-growing AI talent hubs, alongside Singapore, Finland, Ireland, and Canada. The demand for AI professionals in India is projected to reach 1 million by 2026.

    AI Adoption & Industry Growth

    India’s Generative AI (GenAI) ecosystem has seen remarkable growth, even amid a global downturn. The country’s AI landscape is evolving from experimental use cases to scalable, production-ready solutions, reflecting its growing maturity.

    • Businesses Prioritising AI Investments: According to BCG, 80% of Indian companies consider AI a core strategic priority, surpassing the global average of 75%. Additionally, 69% plan to increase their tech investments in 2025, with one-third allocating over USD 25 million to AI initiatives.
    • GenAI Startup Funding: According to a November 2024 report by National Association of Software and Service Companies (NASSCOM), Indian GenAI startup funding surged over six times quarter-on-quarter, reaching USD 51 million in Q2FY2025, driven by B2B and agentic AI startups.
    • AI Transforming Workplaces: The Randstad AI & Equity Report 2024 states that seven in 10 Indian employees used AI at work in 2024, up from five in 10 a year earlier, showcasing AI’s rapid integration into workplaces.
    • AI Empowering Small & Medium Businesses (SMBs): AI-driven technologies, such as autonomous agents, are helping SMBs scale efficiently, personalise customer experiences, and optimise operations. According to Salesforce, 78% of Indian SMBs using AI reported revenue growth, while 93% stated AI has contributed to increased revenues.
    • Rapid Expansion of India’s AI Economy: As per the BCG-NASSCOM Report 2024, India’s AI market is projected to grow at a CAGR of 25-35%, reinforcing its potential for innovation and job creation. While AI automates routine tasks, it is simultaneously generating new opportunities in data science, machine learning, and AI-driven applications.
    • AI Startup Support Ecosystem: India hosts 520+ tech incubators and accelerators, ranking third globally in active programs. 42% of these were established in the past five years, catering to the evolving needs of Indian startups. AI-focused accelerators like T-Hub MATH provide crucial mentorship in product development, business strategy, and scaling. In early 2024, MATH supported over 60 startups, with five actively discussing funding, highlighting India’s growing AI startup landscape.

     

    A Pragmatic AI Regulation Approach

    India’s pragmatic AI regulation balances innovation and accountability, steering clear of overregulation that could stifle growth and unchecked market-driven governance that may create monopolies. Instead of relying solely on legislation, India is investing in AI-driven safeguards, funding top universities and IITs to develop solutions for deep fakes, privacy risks, and cybersecurity threats. This techno-legal approach ensures AI remains a force for inclusive growth, fostering an ecosystem where innovation thrives while ethical concerns are proactively addressed.

    Conclusion

    India’s rapid advancements in artificial intelligence, underpinned by strategic government initiatives, have positioned the country as a global AI powerhouse. By expanding AI compute infrastructure, fostering indigenous AI models, enhancing digital public infrastructure, and investing in talent development, India is creating an inclusive and innovation-driven ecosystem. The emphasis on open data, affordable access to high-performance computing, and AI-driven solutions tailored to local needs ensures that the benefits of AI reach businesses, researchers, and citizens alike. As AI adoption accelerates across industries, India’s proactive approach is not only strengthening its digital economy but also paving the way for self-reliance in critical technologies. With a clear vision for the future, India is set to become a leader in AI innovation, shaping the global AI landscape in the years to come.

    Source: Ministry of Electronics and Information Technology

    Click to see in PDF

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    Santosh Kumar/ Ritu Kataria/ Saurabh Kalia

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    MIL OSI Asia Pacific News

  • MIL-OSI USA: What You Need to Know about NASA’s SpaceX Crew-10 Mission

    Source: NASA

    Four crew members are preparing to launch to the International Space Station as part of NASA’s SpaceX Crew-10 mission to perform research, technology demonstrations, and maintenance activities aboard the microgravity laboratory.
    NASA astronauts Anne McClain, Nichole Ayers, JAXA (Japan Aerospace Exploration Agency) astronaut Takuya Onishi, and Roscosmos cosmonaut Kirill Peskov will lift off from Launch Complex 39A at NASA’s Kennedy Space Center in Florida.
    The flight is the 10th crew rotation mission with SpaceX to the space station, and the 11th human spaceflight as part of NASA’s Commercial Crew Program.
    As teams progress through Dragon spacecraft milestones for Crew-10, they also are preparing a second-flight Falcon 9 booster for the mission. Once all rocket and spacecraft system checkouts are complete and all components are certified for flight, teams will mate Dragon to the Falcon 9 rocket in SpaceX’s hangar at the launch site. The integrated spacecraft and rocket will then be rolled to the pad and raised to vertical for a dry dress rehearsal with the crew and an integrated static fire test prior to launch.

    Selected by NASA as an astronaut in 2013, this will be McClain’s second spaceflight. A colonel in the U.S. Army, she earned her bachelor’s degree in Mechanical Engineering from the U.S. Military Academy at West Point, New York, and holds master’s degrees in Aerospace Engineering, International Security, and Strategic Studies. The Spokane, Washington, native was an instructor pilot in the OH-58D Kiowa Warrior helicopter and is a graduate of the U.S. Naval Test Pilot School in Patuxent River, Maryland. McClain has more than 2,300 flight hours in 24 rotary and fixed-wing aircraft, including more than 800 in combat, and was a member of the U.S. Women’s National Rugby Team. On her first spaceflight, McClain spent 204 days as a flight engineer during Expeditions 58 and 59 and completed two spacewalks, totaling 13 hours and 8 minutes. Since then, she has served in various roles, including branch chief and space station assistant to the chief of NASA’s Astronaut Office. Follow @astroannimal on X and @astro_annimal on Instagram.
    This mission will be the first spaceflight for Ayers, who was selected as a NASA astronaut in 2021. Ayers is a major in the U.S. Air Force and the first member of NASA’s 2021 astronaut class named to a crew. The Colorado native graduated from the Air Force Academy in Colorado Springs with a bachelor’s degree in Mathematics and a minor in Russian, and was a member of the academy’s varsity volleyball team. She later earned a master’s in Computational and Applied Mathematics from Rice University in Houston. Ayers served as an instructor pilot and mission commander in the T-38 ADAIR and F-22 Raptor, leading multinational and multiservice missions worldwide. She has more than 1,400 total flight hours, including more than 200 in combat. Follow @astro_ayers on X and @astro_ayers on Instagram.
    With 113 days in space, Crew-10 will mark Onishi’s second trip to the space station. After being selected as an astronaut by JAXA in 2009, he flew as a flight engineer for Expeditions 48 and 49, becoming the first Japanese astronaut to robotically capture the Cygnus spacecraft. He also constructed a new experimental environment aboard Kibo, the station’s Japanese experiment module. After his first spaceflight, Onishi became certified as a JAXA flight director, leading the team responsible for operating Kibo from JAXA Mission Control in Tsukuba, Japan. He holds a bachelor’s degree in Aeronautics and Astronautics from the University of Tokyo, and was a pilot for All Nippon Airways, flying more than 3,700 flight hours in the Boeing 767. Follow astro_onishi on X.
    The Crew-10 mission also will be Peskov’s first spaceflight. Before his selection as a cosmonaut in 2018, he earned a degree in Engineering from the Ulyanovsk Civil Aviation School and was a co-pilot on the Boeing 757 and 767 aircraft for airlines Nordwind and Ikar. Assigned as a test cosmonaut in 2020, he has additional experience in skydiving, zero-gravity training, scuba diving, and wilderness survival.

    Following liftoff, the Falcon 9 rocket will accelerate Dragon to approximately 17,500 mph. Once in orbit, the crew and SpaceX mission control in Hawthorne, California, will monitor a series of maneuvers that will guide Dragon to the forward-facing port of the station’s Harmony module. The spacecraft is designed to dock autonomously, but the crew can take control and pilot manually, if necessary.
    After docking, Crew-10 will be welcomed aboard the station by the seven-member crew of Expedition 72 and conduct a short handover period on science and maintenance activities with the departing Crew-9 crew members. Then, NASA astronauts Nick Hague, Suni Williams, Butch Wilmore, and Roscosmos cosmonaut Aleksandr Gorbunov will undock from the space station and return to Earth. Ahead of Crew-9 return, mission teams will review weather conditions at the splashdown sites off the coast of Florida prior to departure from station.
    Crew-10 will conduct new scientific research to prepare for human exploration beyond low Earth orbit and benefit humanity on Earth. The crew is scheduled to conduct material flammability tests for future spacecraft designs, engage with students via ham radio and use its existing hardware to test a backup lunar navigation solution, and participate in an integrated study to better understand physiological and psychological changes to the human body to provide valuable insights for future deep space missions.
    These are just a few of the more than 200 scientific experiments and technology demonstrations taking place during the mission.
    While aboard the orbiting laboratory, Crew-10 will welcome a Soyuz spacecraft with three new crew members, including NASA astronaut Jonny Kim, and they will bid farewell to the Soyuz carrying NASA astronaut Don Pettit. The crew also is expected to see the arrival of the SpaceX Dragon, Roscosmos Progress, and Northrop Grumman’s Cygnus cargo spacecraft, as well as the short-duration private Axiom Mission 4 crew.
    The cadre will fly aboard the SpaceX Dragon spacecraft, named Endurance, which previously flew NASA’s SpaceX Crew-3, Crew-5, and Crew-7 missions.
    Commercial crew missions enable NASA to maximize use of the space station, where astronauts have lived and worked continuously for more than 24 years, testing technologies, performing research, and developing the skills needed to operate future commercial destinations in low Earth orbit, and explore farther from Earth. Research conducted on the space station benefits people on Earth and paves the way for future long-duration missions to the Moon and beyond through NASA’s Artemis missions.
    Learn more about the space station, its research, and crew, at: https://www.nasa.gov/station

    MIL OSI USA News

  • MIL-OSI USA: 2024 Associate Administrator Awards Honorees

    Source: NASA

    The ARMD 2024 Associate Administrator Awards were presented to NASA employees, contractors, and students or interns who distinguished themselves, either individually or as part of a group, through their overall approach to their work and through results they achieved during the award year.
    LEGEND: ARMD NASA CENTERSARC = Ames Research CenterAFRC = Armstrong Flight Research CenterGRC = Glenn Research CenterHQ = HeadquartersLaRC = Langley Research Center

    Honoree (Individual)Kenneth R. Lyons, ARCKenneth R. Lyons made significant contributions this past year that were successfully applied in advancing NASA’s state-of-the-art unsteady Pressure Sensitive Paint (uPSP) experimental measurement in NASA’s wind tunnels. Lyons was key to the development of innovative data processing capabilities such as custom software drivers necessary to transfer the high-speed uPSP data from NASA’s wind tunnels to its High-End Computer facility – as well as other data management and methodologies overall. The uPSP development team’s principal investigator referred to his work on replacing older legacy systems as a “masterpiece.”
    Honoree (Group)NASA GRX-810 Licensing TeamNASA’s GRX-810 Licensing Team demonstrated exemplary performance by developing a technologically significant new material, meeting community demands for rapid evaluation, and enabling broad industry availability through timely commercialization. The team’s efforts led to successful licensing to multiple parties, pioneering a novel approach for NASA by using co-exclusive licenses, and the negotiation of four co-exclusive licenses with commercial partners. This license structure will increase competition within the marketplace and provide incentive for each company to fast-track product development.Team Lead: Dr. Timothy M. Smith, GRCView Group Honorees
    Honorable MentionShishir Pandya, ARCShishir Pandya’s exemplary actions as the formulation and technical lead for the Propulsion/Airframe Integration (PAI) emerging technical challenge were instrumental in creating an actionable project plan that will examine complex aerodynamic interactions between sustainable propulsor technologies – such as open rotor concepts envisioned in programs like General Electric’s Revolutionary Innovation for Sustainable Engines (RISE). Pandya was instrumental in classifying the current PAI analysis capabilities at NASA, and scoping NASA’s, GE’s, and Boeing’s roles and responsibilities for open fan integration studies, both computational and experimental.
    Honorable Mention (Group)Electric Vertical Takeoff and Landing (eVTOL) Propulsion TeamThe Revolutionary Vertical Lift and Technology project’s Electric Propulsion Team achieved major accomplishments – successfully completing a technical challenge to improve propulsion system component reliability by demonstrating significant improvements in 100-kilowatt electric motors. Through an integrated interdisciplinary approach including external partner collaborations, the team produced six major technological capabilities towards further development of NASA’s Advanced Air Mobility mission.Team Lead: Mark Valco, GRCView Honorable Mention Group Honorees
    Honorable Mention (Group)Self-Aligned Focusing Schlieren TeamThe Self-Aligned Focusing Schlieren Team developed a highly innovative and impactful Schlieren system that revolutionizes high-speed flow visualization in aeronautics research by enabling the use of a highly efficient, non-intrusive optical measurement technique in physically constrained environments. This new approach drastically improves efficiency in accurately capturing and analyzing complex, high-speed airflows around advanced aerospace vehicles in a non-intrusive manner – providing precise visualization without requiring the cumbersome alignment procedures of traditional Schlieren systems.Team Lead: Brett Bathel, LaRCView Honorable Mention Group Honorees

    HonoreeAnthony Nerone, GRCAnthony Nerone demonstrated strong leadership in formulating and leading the implementation of the Hybrid Thermally Efficient Core project. He has successfully set up a framework to establish a high-performing project team that has been an example for other Aeronautics projects. Nerone’s strong project management has led industry to accelerate the development of advanced engine technologies which have started to see infusion into products – continuing United States leadership in sustainable aviation.

    HonoreeDiana Fitzgerald, LaRC (Booz Allen Hamilton)Diana Fitzgerald has demonstrated innovation, responsiveness, and impact in her contributions to the Transformational Tools and Technologies (TTT) project. Her creative and comprehensive approach to enhancing TTT’s communication processes has significantly improved the efficiency and effectiveness of the project’s operations, enabling ARMD to advance critical strategic capabilities and partnerships. Her dedication has garnered widespread recognition from colleagues and leadership and has had a substantial and measurable impact.
    Honoree (Group)Airspace Operations Safety Program (AOSP) Resource Analyst GroupThe AOSP Resource Analyst Group worked tirelessly to skillfully review and analyze the NASA Aeronautics budget – preparing programs and projects for planning, budget, and execution inputs. Their extraordinary performance in numerous AOSP activities building, tracking, and executing milestones resulted in a smooth and transparent execution of the program’s annual budget. The group has gone beyond the call of duty and their hard work and dedication is reflected in their discipline and commitment to NASA through critical, time-sensitive attention to detail and solution-focused problem solving.Team Leads: Michele Dodson, HQ and Jeffrey Farlin, HQView Group Honorees
    Honorable Mention (Individual)Shannon Eichorn, GRCShannon Eichorn developed and authored a compelling, creative vision for the future of aeronautics research and of NASA’s working environment. She envisioned and described a future in which NASA’s aeronautics research goals, future technologies, workforce, and capabilities are in synergy to maximize research quality and impact. Eichorn presented this vision to numerous leaders and groups at NASA, and the excitement in the room at each presentation led to engaging follow-on discussions and several workstream groups requested Eichorn to present to their full group. Her efforts inspire not only ARMD, but the entire agency.

    HonoreeMatthew Webster, LaRCMatthew Webster has had significant impact and contributions to meeting goals in the Convergent Aeronautics Solutions and Transformational Tools and Technologies projects. In his short time at NASA, he has rapidly demonstrated exceptional ability to adapt and apply technical expertise across multiple NASA projects to advance towards project technical goals. Webster has shown his leadership ability, providing exceptional skills at creating a healthy team environment enabling the group to successfully meet project goals.
    Honorable MentionDahlia Pham, ARCDhalia Pham’s contributions as a system analyst, researcher, and teammate in support of NASA’s efforts in electrified aircraft propulsion have shown an ability to creatively solve problems, analyze impacts, present results with strong communication skills, and collaborate with and mentor others. Her technical acumen and leadership ability raise the bar, making her an established leader amongst her peers.

    HonoreeSalvatore Buccellato, LaRCSalvatore Buccellato identified collaborative opportunities in hypersonics research that were mutually beneficial to NASA, the Defense Advanced Research Projects Agency (DARPA), and other non-NASA entities through his program management experience and knowledge of NASA people and capabilities. Buccellato was able to leverage NASA and non-NASA expertise and capabilities, along with DARPA funding, to further mature and advance hypersonic technologies via ground and flight tests with the goal of enabling operational flight systems. His exemplary work helped to significantly advanced hypersonic technologies and its workforce, and are expected to lead to further partnered activities for NASA.

    Honoree (Group)Advanced Power Electronics Team, GRCThe Advanced Power Electronics Team of the Advanced Air Transport Technology project completed an ambitious design of a prototype flight-packaged, altitude-capable electric motor drive for aviation. Their work pushed past the state of the art in flight motor drives in several areas including power density, efficiency, and power quality – and is a steppingstone towards megawatt-level, cryogenically cooled motor drives. The electric motor design underwent many successful tests and exercises, and the team’s subsequent publications and expertise help the electrified aircraft industry push past several barriers. Team Leads: Matthew G. Granger, GRCView Group Honorees

    2024 AA Award Honorees PDF
    ARMD Associate Administrator Award

    MIL OSI USA News

  • MIL-OSI USA: Kaine & Cornyn Introduce Bipartisan Bill to Strengthen Security, Combat Corruption and Drug Trafficking in the Caribbean

    US Senate News:

    Source: United States Senator for Virginia Tim Kaine

    WASHINGTON, D.C. – Today, U.S. Senator Tim Kaine (D-VA), Ranking Member of the Senate Foreign Relations Subcommittee on the Western Hemisphere, and U.S. Senator John Cornyn (R-TX), a member of the Senate Foreign Relations Committee, introduced the Caribbean Basin Security Authorization Act, bipartisan legislation to improve security cooperation, combat drug trafficking, strengthen the rule of law, counter malign influence from China and Russia, and expand natural disaster resilience in the Caribbean region.

    “What happens in the Caribbean affects the security and economic prosperity of the United States,” said Kaine. “This bipartisan legislation is critical to promoting stability, countering China’s growing influence, and combating drug cartel activity in the region. Not only will I continue to urge the Administration to carry out the foreign assistance investments that Congress has previously voted to fund, I will continue to push for legislation like this one to work with our partners to protect our national security.”

    The Caribbean Basin Security Authorization Act would boost support for the Caribbean Basin Security Initiative (CBSI), a foreign assistance program that began in 2009 and includes Antigua and Barbuda, the Bahamas, Barbados, Dominica, the Dominican Republic, Grenada, Guyana, Jamaica, St. Kitts and Nevis, St. Lucia, St. Vincent and the Grenadines, Suriname, and Trinidad, and Tobago. Specifically, the legislation would:

    • Authorize funding between Fiscal Years 2025-2029 for CBSI to promote citizen safety, security, and rule of law; prioritize efforts to combat corruption; counter malign influence from the China, Russia, Iran, and other authoritarian regimes; and promote strategic engagement, including consultation with civil society and the private sector.
    • Require the Secretary of State, in consultation with the United States Agency for International Development (USAID), the U.S. International Development Finance Corporation, and the Inter-American Foundation, to promote efforts to improve disaster response and resilience.
    • Require the Secretary of State, in consultation with USAID, to submit an implementation plan for CBSI within 180 days of enactment.
    • Encourage increased law enforcement collaboration between CBSI beneficiaries and Haiti – a country that is on the brink of collapse.
    • Promote greater U.S. interagency cooperation in implementing CBSI.

    Full text of the bill is available here.

    MIL OSI USA News

  • MIL-OSI Europe: Answer to a written question – Misinformation and the role of bots – ensuring transparency and trust in the digital age – E-000155/2025(ASW)

    Source: European Parliament

    The Commission recognises the significant challenge posed by disinformation and the manipulative use of bots in the digital landscape.

    Under the Digital Services Act[1] (DSA), providers of designated very large online platforms and search engines are required to assess and mitigate systemic risks.

    Such risks may stem inter alia from the inauthentic use of their service, such as the creation of fake accounts, or the use of bots. The Commission has already launched formal proceedings under the DSA against X, Meta and TikTok connected to this.

    On 13 February 2025, the Commission and the European Board for Digital Services[2] endorsed the official integration of the voluntary Code of Practice on Disinformation[3] into the framework of the DSA making it a Code of Conduct under Article 45.

    The Code of Conduct foresees specific measures that signatories commit to take to address notably the malicious use of automated systems like bots[4].

    This integration will make the Code a benchmark for determining platforms’ compliance with the DSA. For providers of very large online platforms and search engines who are signatories to the Code, their commitments will be subject to annual independent audits.

    Through the Horizon Europe programme[5], the Commission is also funding several research projects to help detection and countering of bot networks.

    For example, among other functionalities, the VERA.AI[6] project aims to develop tools to identify patterns of synchronised activity where accounts share identical or similar content to amplify disinformation campaigns.

    Finally, the Commission will propose a European Democracy Shield, as a horizontal strategic framework to better protect and promote democracy in the EU.

    It will notably address foreign informational manipulation and interference and disinformation.

    • [1] https://eur-lex.europa.eu/legal-content/EN/TXT/?uri=LEGISSUM:4625430
    • [2] https://digital-strategy.ec.europa.eu/en/policies/dsa-board
    • [3] https://digital-strategy.ec.europa.eu/en/policies/code-practice-disinformation
    • [4] https://digital-strategy.ec.europa.eu/en/library/code-conduct-disinformation
    • [5] https://research-and-innovation.ec.europa.eu/funding/funding-opportunities/funding-programmes-and-open-calls/horizon-europe_en
    • [6] ‘VERification Assisted by Artificial Intelligence’: https://www.veraai.eu/home

    MIL OSI Europe News