Category: Economy

  • MIL-OSI United Kingdom: How effective merger control drives economic growth and innovation

    Source: United Kingdom – Executive Government & Departments

    A speech by Joel Bamford, the CMA’s Executive Director for Mergers, delivered at the City & Financial Global M&A Summit 2024.

    Introduction

    I’ll begin by saying a bit about my career up until this point.

    I started out as a consultant, had a varied career in government both in the UK and overseas, went back to consultancy, and then I came back to the public sector in my current role – to oversee the UK’s merger control regime, and as a member of the CMA board. I’ve advised some of the largest companies on the globe through some of the biggest mergers and acquisitions (M&A) deals, with both positive and negative outcomes for those clients.

    I’d like to start with the CMA’s purpose. We help people, businesses and the UK economy by promoting competitive markets and tackling unfair behaviour.

    Supporting growth is absolutely central to this purpose: creating a competitive environment which drives forward the innovation, investment and productivity our economy needs to grow. We’ve made that even more explicit over the last few years, as you’ll see from our overarching strategy, as well as our recent annual plans and annual reports.

    Where does merger control fit into this?

    Merger control is one of our tools to deliver the CMA’s purpose, and this is what I will focus on in this speech.

    I am old enough to have worked for the last Labour government while in the Civil Service, and it was that government which gave the CMA (then the Office for Fair Trading and the Competition Commission) its current legislative basis for the UK merger control regime – the Enterprise Act in 2002.

    The intent behind the legislation was and is very much about the real-world impact of economic activity, and that for a vibrant growing economy you need markets to remain competitive.

    I’ll read out a quote from the policy document accompanying the 2002 legislation: “Vigorous competition between firms is the lifeblood of strong and effective markets. Competition helps consumers get a good deal. It encourages firms to innovate by reducing slack, putting downward pressure on costs and providing incentives for the efficient organisation of production. As such, competition is a central driver for productivity growth in the economy, and hence the UK’s international competitiveness”.

    I’ll unpack 2 key points from this. This is largely well-established stuff, but it is worth revisiting.

    The contribution of competition to economic growth

    Economic theory and history show that where competition is stronger, productivity and wage growth are likely to be higher. That link between competition and productivity has been empirically established again and again at country and sector level. The CMA’s own review of the relationship between competition and productivity also identified competitive pressure as a key driver behind firm-level efficiency and innovation.

    Effective competition protects consumers from higher prices and lower quality goods and services. It facilitates a level playing field – so that businesses large and small can thrive. Competition from other players in the market is a motivating force, incentivising others to be more productive, innovate, and grow.

    So, with innovation and productivity at the heart of economic growth, enabling a competitive environment (for sectors, industries, products and services) supports that growth effort.

    The impact of open and competitive markets on investment incentives

    Access to competitive markets – where companies can compete to win market share – is also appealing for investors. As Sarah Cardell, CMA CEO, said in a speech earlier this year in the US: “in promoting competitive markets, we advance the interests of fair-dealing companies serving UK markets, and advance the interests of investors seeking to make a fair return on their capital by doing business in the UK.”

    And even more recently our Chair, Marcus Bokkerink reflected on last week’s government investment summit and how the UK can drive growth that lasts. He set out that it relies upon 3 fundamental ingredients working together:

    • ensuring that people have choice, an alternative, when they buy/use a product/service

    • competition – that in any market all innovating businesses get a fair shot at competing

    • open markets – maintaining a level playing field for all investors

    Focusing on that last point about keeping markets open to investors: across the economy, whenever the CMA has stepped in to keep markets open by preventing attempts to lock out competing investors through anti-competitive mergers, cartels or abuses of dominance, we have seen new investment flow in – from healthcare and pharmaceuticals to construction and railway equipment. This is because investors deserve to have confidence that there’s a level playing field for the businesses they back to succeed on the merits.

    Amazingly for me, I’ve gotten this far through my speech without quoting numbers at you – after all, I am an economist and mathematician who used to provide several ministers, and businesses large and small, with evidence and numbers!

    In all seriousness, the CMA does very consciously consider, analyse, and report on the direct financial impact of our work for the UK, across all our tools including mergers. We know this value for money matters. We estimate that our decisions on mergers have put £685 million per year over the last 3 years back into consumers’ pockets. And this is just the direct effect of merger control – so not including the indirect impact on productivity, growth and innovation in the economy as a whole.

    And given my role on the CMA board, I do not have a myopic focus on mergers. Beyond mergers, across the whole of the CMA’s work, the CMA has delivered at least £20.3bn of direct financial benefits back to UK consumers over the last 10 years. Over the last 3 years, for every £1 the CMA spent on operation costs, the average benefit to consumers was £23.

    Let me take you through an example of where competition contributes to growth and positive outcomes for consumers and businesses: the CMA’s investigation into the Experian/Clearscore merger, which actually inspired the co-founder and current CEO of the business to join the CMA’s board.

    In 2019, the proposed merger of Experian and Clearscore was abandoned following the CMA’s phase 2 provisional findings, where we found that the merger could stifle product development and negatively impact consumers. Clearscore returned to plan A of their business model – to grow as an independent UK based business – and now Clearscore serves over 21 million users on 4 continents. They have continued to innovate for users, launching new products and integrating open banking data into their product, among other changes.

    If the proposed takeover had gone ahead, the combined entity would not have faced the same competitive incentives as both Experian and Clearscore do today. This may have meant customers never benefited from the range of innovative and high-quality products that were subsequently developed.

    And it isn’t just consumer-facing markets that matter. Ensuring that competition remains vigorous in the production of important inputs – which businesses then use in a variety of settings – is vital. This helps their business customers themselves increase productivity and grow.

    A notable example on the CMA side is the global remedy agreed in relation to a merger which involved chemical additives for concrete. In respect of this important construction input, innovation (while not as glamorous as tech markets), is fundamental to improvements in building techniques and the construction of large infrastructure projects.

    That is why the remedy the CMA agreed to not only included UK production and warehousing facilities, but also had research and development (R&D) capabilities at its heart. I worked on that one for the companies themselves, and saw first-hand the openness and flexibility of process from the CMA, as well as the rigour with which they approached the task of ensuring innovation was protected; leading to greater productivity and growth, for not just the companies themselves but also for their important infrastructure customers.

    Merger control in 2024

    Now, our key mergers legislation came into force in 2002 and the CMA was formed in 2014 – so where are we in 2024 and what has changed?

    I will focus on 2 areas:

    • how we assess the substance of a deal – an approach rooted in the real-world dynamics of a market
    • the process we use, and how we interact with companies – utilising predictability, openness and an organisation which learns and adapts

    Assessing the substance of a deal

    First, the assessment of the substance of a deal – and it is important to note this assessment follows the legal test as set out in the Act.

    The focus of the substantive assessment of any deal is whether it is more likely than not to lead to a substantial lessening of competition in a market in the UK. Let’s pick that apart a little:

    First, the CMA needs to be of the view that competition concerns arising from the deal are more likely than not to occur – that is a high bar, not something you decide without significant evidence (which I will turn to later).

    Second, any likely reduction in competition needs to be ‘substantial’, that means not small and trivial but real and impactful, another high bar.

    Third, the test is focused on competition, not competitors – a subtle difference, but one that means the legal test is designed not to result in picking individual winners but making sure the market stays open to competition wherever it comes from.

    And finally, the focus of the assessment is on the market in the UK. This is to ensure people in the UK benefit from the positive outcomes of competition; and investors have the confidence in UK markets remaining open. And, of course, in a world of global markets that means not just focusing on UK companies but all companies who operate in the UK. This is why Parliament entrusted the CMA ‘to promote competition, both within and outside the United Kingdom, for the benefit of consumers’ (Enterprise and Regulatory Reform Act 2013, s25(3)).

    In terms of how we consider evidence and come to conclusions, it is worth noting that the CMA conducts a forward-looking assessment – where evidence of past practice is clearly relevant, but so is evidence of what is likely to happen in the coming years.

    We focus on how markets work in practice and what form competition takes on a day-to-day basis. This can be direct sales or bidding competition but can also mean looking at how companies compete to innovate in a dynamic market and where potential future developments from one company drive the business strategy of other companies.

    When it comes to investigating cases – no matter what form competition takes – the CMA’s approach is to engage, listen, and gather a range of evidence, use tested and principled frameworks and approaches, and arrive at well-reasoned, well-evidenced conclusions. This is what gives the UK regime the certainty and transparency it has been recognised for around the world, which we know matters to businesses and investors alike.

    Evidence from the business themselves is absolutely key to our assessment. The number of company strategy documents I have read in my time reviewing mergers is mind-boggling. But if you truly want to know what drives a company to produce better products at cheaper prices, it is vital you look at what they are talking about internally and, of course, hear from the businesspeople themselves.

    Evidence from a range of others with knowledge of the dynamics of the market is also vital, such as customers, competitors, industry bodies. We gather this evidence proactively through face-to-face discussions (or via Teams nowadays!), information requests, and of course we welcome incoming information. In fact, we have several points in our process where we publish invitations to comment and the current thinking on our investigations. This information from others in the market is vital to ensure we get a rounded picture of how competition works and the impact a deal might have. Often we get highly informative responses from customers who have heard about the deal.

    Having brought in this wide range of perspectives and evidence, and engaged with multiple parties, we test it thoroughly. We look at the type of evidence, its relevance, and also consider the incentives of the people supplying the information. When advising clients, I was always very clear that the only way to land an argument before the CMA was to back it up with evidence they could rely upon. There’s often considerable pressure on the parties to make the strongest case possible but that’s ultimately counter-productive if the evidence doesn’t stack up, which we do sometimes see down the line.

    On the conclusions that we come to after assessing the substance of the deal – it is worth reflecting on the real-world outcomes – what does the CMA actually do in practice?

    I need to be very clear that just because the CMA finds concerns with a deal, that doesn’t mean it can’t go ahead in some form. The basic point is we are only finding a concern with that proposed deal structure, not with the concept of a general sale of the business. Beyond that, of course we are always open to discussing solutions which can remedy our concerns (more on the process later).

    Remedies in the past have looked at various different types of arrangements, for example spinning off part of a business or making sure access to vital inputs is open to all. This ensures vigorous competition continues and innovation continues to thrive. And in certain circumstances we are prepared to preserve benefits where they meet the relevant standard, for example in NHS Trust mergers where the benefits to patient care outweigh any harm caused by a loss of competition between the merging trusts.

    We know investor confidence and business confidence are critical to the growth we all want to see. We talk to these stakeholders all the time, listen to their concerns and reflections outside the heat of individual deals, where the consensus around the benefits of competition is strong. But we often find there are a few myths and misunderstandings out there about our interventions and processes. I’ll just share with you, by way of example, a few facts which can help to inspire confidence that the UK is very much a place where deals get done:

    • over 50,000 M&A deals have taken place each year since 2019 (PwC: Global M&A industry trends: 2024 mid-year outlook) – in any given year, the CMA reviews only the handful of transactions with the potential to be truly problematic from a competition law perspective

    • for example, in 2023 to 2024 the CMA considered 913 transactions, around 95% of which did not proceed to an investigation

    • we carried out 54 phase 1 reviews (cases called in via our Merger Intelligence Committee and also cases notified directly to us by merging parties) – one-third resulted in unconditional clearance, and almost half were resolved through remedies to address the substantial lessening of competition instead of being referred to a phase 2 investigation

    • that means we conducted in-depth phase 2 investigations in respect of just 9 cases where we considered the merger to have the potential to substantially reduce competition in the UK, including where we were unable to agree satisfactory remedies at phase 1 to address our concerns. All phase 2 inquiries are led by a group appointed from the CMA’s Panel of independent experts, which is responsible for making the final decision on the case. The majority of these (5) were cleared unconditionally, and a further 2 with remedies

    • one merger in 2023 to 24 was subject to a prohibition decision at the end of the phase 2 process. Worth repeating that for those at the back – that’s one prohibition, out of over 900 mergers reviewed

    • in total, 3 mergers were abandoned by the parties (2 at phase 2 and one at phase 1)

    Process and interaction with companies

    Turning now from substance to process. Again, something we know really matters to the companies in terms of efficiency, openness, and transparency. We think hard about this stuff, because we know it matters to confidence and thus to growth.

    Jurisdiction

    We need to first remember that the UK merger control regime (unlike many others) operates on a voluntary filing basis, in which companies can self-assess (often with the help of their legal advisors) whether the deal has potential competition issues and then opt not to alert the CMA if it doesn’t.

    The CMA’s jurisdiction then relates to deals with the target having certain turnover or share of supply of goods and services in the UK.

    The great benefit of the voluntary system is that it filters out the need to submit filings or the CMA to carry out a formal investigation in nearly all transactions. You can see this from the fact that the CMA only looked at roughly 50 transactions last year through the formal route as opposed to over 250 investigations opened in France (Autorité de la Concurrence: Rapport Annuel 2023, in French), and around 800 in Germany (Bundeskartellamt: Jahresbericht 2023/24) – as well as high numbers in many other countries.

    Early engagement

    Beyond the formal filings route the CMA also has an informal briefing paper route for companies to put their deal on the CMA’s radar and say why there is nothing to look at from a competition perspective. This route has been very popular post-Brexit with over a tripling of the number of briefing papers the CMA receives and the feedback we receive from businesses and advisors is that it is a simple way to get some certainty over a CMA review.

    In 2023 to 2024, 156 informal briefing papers were sent to our mergers monitoring function, of which 15 were called in for a more formal review.

    Further filtering

    The voluntary nature of the regime and the briefing paper process mean the CMA only looks at the very small proportion of deals that have the potential to raise competition concerns through a formal investigation.

    Then, there is a further filtering step whereby a deal only proceeds to an in-depth 6-month investigation if it raises initial competition concerns in a legally timetabled 40 working day phase 1 investigation. The CMA only begins its phase 1 investigation once it receives all the necessary information from the merging companies, this goes back to my earlier point about being evidence led in our decision making – and that’s the reason it’s the same process in nearly every country around the world.

    At the end of the phase 1 process there is an opportunity for companies to offer solutions to any competition concerns raised to avoid the more in-depth investigation and this is a route frequently taken when only part of a transaction causes a concern – for example in local markets or one product line.

    The CMA can also decide not to go to an investigation based on the market size being de minimis. We recently consulted and updated our process on this route making the qualifying market size larger and simplifying the way we carry out our analysis. We are already seeing deals come through our system on this basis and the evolution of our process appears to be working well and garnering positive feedback.

    Openness and transparency

    Finally, turning to the way the CMA engages with companies and the market more generally. We know clarity matters to the investment and business community, and the CMA process is one of the most transparent in the world. There are multiple opportunities for market participants to proactively engage with the CMA and the CMA publishes documents throughout the process to clearly set out its thinking on the deal. These are fully reasoned and evidenced explanations of the concerns the CMA is finding and why. And we go further than many authorities by publishing clearance decisions and extra commentary – feel free to follow me on LinkedIn for this.

    The CMA is also constantly listening to feedback on its process. Even if the outcome didn’t go the way the parties hoped, they should feel they got a fair hearing along the way. It is fair to say the CMA has been criticised in the past for not hearing as much as it could, and not being as open as it could on its developing thinking (notwithstanding the fulsome published documents).

    To this end, the CMA proposed a major overhaul of its in-depth phase 2 investigation process following a wide-ranging consultation, including with businesses, legal and economic advisors on UK and international merger cases, consumer and industry groups, and other competition authorities.

    I was on the outside of the CMA at this time and working with several companies going through a phase 2 process. The proposed (and now adopted) reforms were very well received by all and look to be a step change in the experience of the CMA process for businesses.

    The CMA trialled some of the updated processes on a case I worked on for the businesses, and they worked very well. Now we are doing our first full case under the new process and so far it has been smooth sailing from our side (with lots of hard work from the team), and we can see the real benefits of the earlier engagement with the businesspeople.

    These are new reforms, they need time to bed in and have the benefits be really felt but we think they represent a genuine step change based on really listening and responding to what stakeholders have asked of us.

    Conclusion

    In summary:

    • the CMA’s approach is independent, evidence-led, proportionate, expeditious, transparent and constructive – we listen to our stakeholders and always seek to improve our processes where we can

    • effective merger control, protects fair, open, and effective competition on behalf of people, businesses and the economy

    • as a driver of growth, merger control acts as an engine (not a handbrake) of innovation and productivity

    • as a safeguard for consumer interests, merger control impacts the prices people pay, the quality of goods and services they receive, and how they benefit from innovation – in pure financial terms, merger control saved people in the UK £685.2 million per year on average in the last 3 financial years

    • as a bulwark against shocks and disruption, merger control fosters a resilient economy less vulnerable to single points of failure

    • and last, but by no means least, as an attraction and reassurance for investors, the UK merger control regime provides certainty to businesses and their backers that they can enter and compete in UK markets on a level playing field

    Updates to this page

    Published 25 October 2024

    MIL OSI United Kingdom

  • MIL-OSI Economics: African Development Bank to co-host Chemicals and Fertilizers Investment and Trade Roundtable and Clinics

    Source: African Development Bank Group

    What:    Chemicals and Fertilizers Sectors Roundtable and Clinics

    Who:     The African Development Bank, in collaboration with the Chemicals and Fertilizers Export Council and the Chamber of Chemical Industries

    When:   10 am GMT+3; 28 October 2024

    Where:   Fairmont Nile City Hotel

    The African Development Bank, in collaboration with Egypt’s Chemicals and Fertilizers Export Council and the Chamber of Chemical Industries will host an investment and trade roundtable and clinic for top Egyptian Chemicals and Fertilizer companies on 28 October 2024 at Cairo’s Fairmont Nile City Hotel.

    The Roundtable will bring together African Development Bank private sector experts with top 30 manufacturers  and other stakeholders to discuss collaboration opportunities in support of boosting the chemicals and fertilizers industry sectors. Participants will learn about the Bank’s financial and non-financial support for Industrial and Trade Development.

    The event will also feature presentations from the private sector unit at the Ministry of International Cooperation to highlight its new partnerships and donor coordination platform (Hafez). The roundtable will benefit from contributions by African Development Bank and African Continental Free Trade Area trade experts, and the Egyptian Commercial Services representative in Africa, on practical guidelines and trade solutions to enhance Egypt’s two-way trade with other African countries.

    AGENDA

    10:00 – 10:30 REGISTRATION
    10:30 – 10:40 Opening by Dr Ghada Abuzaid,
    Principal Industrial Programs Coordinator, AfDB
    AfDB Video
    10:40 – 11:00 WELCOME Welcome Remarks
    African Development Bank
    Export Council and Chamber of Chemicals & Fertilizers
    Mr. Abdourahmane Diaw,
    Country Manager, AfDB
    Dr. Sherif El Gabaly,
    Chairman, Chamber of Chemicals and Fertilizers
     
    11:00 – 11:15 Egyptian Chemicals & Fertilizers Sector State of Affairs, Market Trends and Exports Potential Mr. Khaled Abo El Makarem,
    Chairman of the Export Council and Deputy Chairman of the Chamber
     
    11:15 – 11:40 LEARN 1st Panel:
    Partnerships and Financial Support to the Egyptian Chemical Industries
    & Takeaways
    Context setting by Dr Ghada Abuzaid and Top expertise panel.
    Dr. Tamer Taha,
    Head of Private sector, Innovation and Entrepreneurship, Ministry of International Cooperation and Planning
    Mr. Fernando Rodriques,
    Regional Lead Non-Sovereign Operations, AfDB Opening
     
    11:40 – 12:20 2nd Panel:
    Egyptian private sector contributions to developing the chemicals and fertilizers sector in Egypt and Africa
    & Takeaways
    Context setting by Mr. Yehia El Minshawy international Cooperation Manager and leading CEO Panelists
    Makarem Tex
    TCL
    MOPCO
    UNOX
    APG
    Eagle Chemicals
     
    12:20 – 13:00 3rd Panel:
    Potential of intra-Africa trade in promoting Egyptian Chemicals & fertilizers sectors
    & Takeaways
    Context setting by Dr. Khaled Melad,
    Head of the African Department, Egyptian Commercial Services and continental intra-Africa trade experts.
    Representatives of ECS in Africa – Ghana, Senegal, Kenya and Tanzania
    Mr. Abou Fall,
    Principal Trade Facilitation Expert, AfDB
    Mr. Mohamed Ali,
    Director of Trade in goods and competition, Africa Continental Free Trade Area (AfCFTA)
     
    13:00 – 13:15 AfDB’s Recent Support to Chemicals and Fertilizers Regional Champions Case Study – OCP, Morocco
    Case Study – SPIH, Cote d’Ivoire and Ghana
    Ms. Christelle N’Guessan, Senior Investment Officer, AfDB
     
    ROUNDTABLE’S OFFICIAL PHOTOS
    13:30 – 14:30 CONNECT Lunch and Networking to All. Participation in clinics is by invitation only.  

    MIL OSI Economics

  • MIL-OSI Europe: Debates – Thursday, 24 October 2024 – Strasbourg – Provisional edition

    Source: European Parliament 2

    Verbatim report of proceedings
     352k  770k
    Thursday, 24 October 2024 – Strasbourg Provisional edition
    1. Opening of the sitting
      2. Composition of committees and delegations
      3. Closing the EU skills gap: supporting people in the digital and green transitions to ensure inclusive growth and competitiveness in line with the Draghi report (debate)
      4. Abuse of new technologies to manipulate and radicalise young people through hate speech and antidemocratic discourse (debate)
      5. Resumption of the sitting
      6. Sakharov Prize 2024 (announcement of the winner)
      7. Request for waiver of immunity
      8. Resumption of the sitting
      9. Voting time
        9.1. Situation in Azerbaijan, violation of human rights and international law and relations with Armenia (RC-B10-0133/2024, B10-0129/2024, B10-0131/2024, B10-0133/2024, B10-0136/2024, B10-0139/2024, B10-0141/2024, B10-0142/2024) (vote)
        9.2. People’s Republic of China’s misinterpretation of the UN resolution 2758 and its continuous military provocations around Taiwan (RC-B10-0134/2024, B10-0130/2024, B10-0132/2024, B10-0134/2024, B10-0135/2024, B10-0137/2024, B10-0138/2024, B10-0140/2024) (vote)
      10. Resumption of the sitting
      11. Approval of the minutes of the previous sitting
      12. Protecting our oceans: persistent threats to marine protected areas in the EU and benefits for coastal communities (debate)
      13. Explications de vote
        13.1. Situation in Azerbaijan, violation of human rights and international law and relations with Armenia (RC-B10-0133/2024)
        13.2. People’s Republic of China’s misinterpretation of the UN resolution 2758 and its continuous military provocations around Taiwan (RC-B10-0134/2024)
      14. Approval of the minutes of the sitting and forwarding of texts adopted
      15. Dates of forthcoming sittings
      16. Closure of the sitting
      17. Adjournment of the session

       

    IN THE CHAIR: ESTEBAN GONZÁLEZ PONS
    Vice-President

     
    1. Opening of the sitting

       

    (The sitting opened at 9:00)

     

    2. Composition of committees and delegations

     

      President. – The EPP Group has notified the President of decisions relating to changes to appointments within committees and delegations.

    These decisions will be set out in the minutes of today’s sitting and take effect on the date of this announcement.

     

    3. Closing the EU skills gap: supporting people in the digital and green transitions to ensure inclusive growth and competitiveness in line with the Draghi report (debate)


     

      Janusz Wojciechowski, Member of the Commission. – Mr President, skills cut across all policies and this House has played an important role in putting skills high on the agenda, notably with the European Year of Skills, which was a huge success.

    Mario Draghi’s report shows that we must close the skills gap if we want to make Europe simultaneously competitive, fair and secure. This means stepping up investments in skills and education and training at different places and moments, from school to adult learning. These investments need to be public and private. At the European Union level, we are investing already, as of today, around EUR 44 billion in the EU Cohesion Policy, mostly from the European Social Fund Plus, and helping upskill and reskill 38 million people.

    Member States’ national recovery and resilience plans include reforms and investments in education, training and adult learning amounting to more than EUR 85 billion. The Just Transition Mechanism supports the most affected people, workers, companies and regions heavily dependent on carbon-intensive industries, notably by helping them with training to access new jobs in their region. Other programmes such as Erasmus+ and Digital Europe also contribute to skills development in their respective areas.

    But indeed, we have a skills gap in our labour markets. In many sectors, we don’t have enough people with the skills needed and this is the key ingredient missing if we want Europe to be competitive in the face of countries like the US and China. We face significant labour shortages. The European Union labour markets are losing one million people every year between now and 2050 because of ageing. Two thirds of European companies say that the lack of skills holds back their business activities and four out of five say they cannot invest and grow as much as they could. For SMEs, it is even more difficult: only one in five can find workers with the right skills.

    To address this, we adopted the action plan on labour and skills shortages. It is based on a broad consensus between Member States and social partners. The action plan builds notably on the European Skills Agenda, which is specifically aimed at harnessing the green and digital technology transitions. The European Year of Skills, with its 2000 events, showed that we were on the right track and we should use its momentum.

    There have been good results. The Pact for Skills has brought together businesses, unions, education and training providers and other stakeholders in a large partnership, joining forces to upskill workers. In the first years, about 3.5 million workers have been upskilled through action by the 3000 pact members. Individual learning accounts, a powerful tool that offers adults incentives and guidance to train over time, are being prepared in about half of all Member States. We expect them to be very helpful, in particular for workers in SMEs, which may not be able to have their own upskilling programmes.

    We launched the EU digital decade strategy to make sure Europe’s workforce is ready for a world where digital skills are increasingly essential in many areas of life. The digital education action plan supported the adaptation of the education and training systems of Member States, aiming to boost the provision of digital skills. The European Union has introduced specific measures for learning, for sustainability, integrating green skills and competencies into education and training systems across the Member States.

    But there is a lot of work still to do. Too many people don’t have good basic skills. We are far from our 80 % target of digital skills and 60 % target of adults in training.

    Last but not least, as is also stressed in the Draghi report, we need to significantly step up the anticipation of skills needs, which is also key for addressing labour shortages in future. We can build on the good analytical work by Cedefop and Eurostat on job vacancies and on the European network graduate tracking to bring analysis closer to the local needs. Another initiative under development on skills intelligence is the common European data space for skills, which will facilitate secure data pooling and sharing to foster the development of data-driven application for skills, demand and supply analysis.

     
       

     

      Liesbet Sommen, namens de PPE-Fractie. – Voorzitter, commissaris, de groene transitie en artificiële intelligentie: dat maakt onze mensen en bedrijven soms bezorgd. Dat is ook begrijpelijk. Het is aan ons, het beleid, om duidelijkheid en zekerheid te bieden. Want wij staan als Europese Unie op een kruispunt. Wij hebben terecht de meest ambitieuze klimaatwetgeving ter wereld, maar onze economie hinkt achterop omdat wij te weinig ruimte bieden aan technologische vooruitgang. Werknemers en landbouwers zijn daardoor soms bang om hun baan en toekomst te verliezen.

    Maar het goede nieuws is: wij zijn in staat om deze transities om te buigen naar kansen. Dat gaan we doen door in te zetten op grotere vaardigheden van onze mensen, via onderwijs en opleiding. Want menselijk kapitaal is wat onze Europese bedrijven sterk maakt. Laat ons trots zijn op ons Europese sociale model. De VS en China hebben slechts een volgende rol. We hebben echt behoefte aan een allesomvattende Europese financieringsstrategie voor onderwijs en opleiding. De focus moet liggen op STEM‑sectoren, wiskunde en wetenschap. Want het zijn die opleidingen die de beroepen naar de arbeidsmarkt brengen die onze bedrijven en onze landbouw in staat zullen stellen om te verduurzamen en te digitaliseren.

    Met sterker onderwijs en opleiding voor ons Europeanen gaan we er niet alleen in slagen om het klimaat en onze Europese economie te redden, maar ook om onze mensen te versterken. En inderdaad, dat zal ervoor gaan zorgen dat Europa haar leiderschapspositie van weleer opnieuw kan innemen. Europa staat op een kruispunt. Het is aan ons om de juiste weg in te slaan.

     
       

     

      Gabriele Bischoff, im Namen der S&D-Fraktion. – Herr Präsident, sehr geehrter Herr Kommissar, Kolleginnen und Kollegen! In der Tat, diese Transformation wird gelingen, wenn wir die Beschäftigten hier mitnehmen. Und der Draghi-Bericht stellt tatsächlich die Notwendigkeit von Fort- und Weiterbildung mit ins Zentrum, nicht nur für Wettbewerbsfähigkeit, sondern auch für Innovationsfähigkeit. Und es ist gut, dass das auf der Säule sozialer Rechte aufbaut, denn die garantiert zum ersten Mal ein Recht auf Weiterbildung – das müssen wir verankern, das ist ein Job für die nächste Kommission.

    Ich bin froh, dass der Kommissar die Rolle der Sozialpartner hervorgehoben hat, weil die essenziell ist: dass beide Seiten, dass Arbeitgeber wie Gewerkschaften, wie Betriebsräte zusammen in den Betrieben Konzepte entwickeln. Und ich bin froh auch – ich komme gerade von einer Debatte, wo es um ESF-Plus-Projekte ging, wo beide Sozialpartner in Deutschland, Arbeitgeber und Gewerkschaften, ein Programm zur Beratung und Qualifizierung hingekriegt haben.

    Deshalb bitte keine verkürzte skills-Debatte, sondern sehen, wir brauchen eine gute Grundqualifizierung und Akteure in den Betrieben, die das vorantreiben.

     
       

     

      Paolo Borchia, a nome del gruppo PfE. – Signor Presidente, onorevoli colleghi, signor Commissario, io non amo particolarmente essere pessimista. Però credo che, effettivamente, per colmare il ritardo con la Cina e con gli Stati Uniti ci servirà un mezzo miracolo, perché non possiamo pensare che l’unica parola d’ordine sia decarbonizzazione.

    Infatti, senza la competitività non andiamo da nessuna parte. Sul tema della mancanza dei lavoratori, Commissario, lei giustamente ha menzionato la mancanza di competenza e io credo che la mancanza di lavoratori qualificati sia purtroppo la chiave di volta. Anche perché, purtroppo, anche in quest’Aula c’è chi pensa che il problema si possa risolvere attraverso l’importazione di un esercito di manodopera di lavoratori a basso costo, che magari arrivano da Paesi lontani.

    E poi, in conclusione, c’è un grosso tema di autocritica, perché gli stessi che ci hanno portati ad essere fanalini di coda nell’economia globale, adesso sono quelli che pretendono di continuare a comandare, senza ascoltare quello che è il volere degli elettori.

     
       

     

      Mariateresa Vivaldini, a nome del gruppo ECR. – Signor Presidente, onorevoli colleghi, signor Commissario, formare, attrarre e trattenere i talenti sono propositi che in quest’Aula condividiamo tutti. Ma la sfida sui talenti non può essere scollegata dalle sfide sulla natalità. Dobbiamo incentivare le nascite con interventi strutturali, accompagnando i figli dalla nascita al mercato del lavoro.

    Diversi studi hanno previsto che all’Europa, nel suo insieme, mancheranno 35 milioni di persone in età lavorativa entro il 2050, soprattutto nelle zone rurali, accrescendo un divario che di per sé è già allarmante con le zone urbane. Significa che scienziati, medici, ingegneri, lavoratori specializzati che avrebbero potuto contribuire a cambiare il nostro futuro, non avranno mai questa opportunità.

    È ovvio – e lo rivendico con forza – che garantire una maggiore fruibilità delle competenze e degli spazi digitali è fondamentale. Però, mentre noi portiamo avanti questa riflessione, da un lato, c’è il Consiglio che ha proposto un taglio di quasi 300 milioni ad Erasmus, dall’altro, si continua a non portare avanti nessuna iniziativa sulla tutela delle donne lavoratrici con stipendi adeguati.

    I talenti vanno coltivati, ma innanzitutto vanno messi al mondo. Altrimenti ci troveremo ad avanzare ottime proposte politiche senza avere nessuno su cui applicarle.

     
       


     

      Nela Riehl, on behalf of the Verts/ALE Group. – Mr President, as the Draghi report outlines, the question of skills is not just one of preparing the labour force for changing demands, but also about giving people the tools to adapt and engage with a changing world and benefit from new technologies. This is what competitiveness should mean.

    As a teacher, I have great respect for traditional classrooms, but classrooms are only just the beginning. At the moment, only 40 % of European adults train every year. This is very far from the 60 % target that the EU set itself to reach by 2030. Training must be a lifelong commitment.

    Lifelong learning, development, developing digital skills, must be a fundamental right and not just a privilege reserved for a few. This isn’t just about preparing for tomorrow’s jobs. It’s about empowering everyone to thrive in a world that is always evolving.

    So what does this actually mean? First, we need to address the lack of investment in skills. Every euro spent on training is a euro invested in our economy and society. This needs to be reflected in public budget decisions.

    Second, we need to establish an individual right to training for every European worker. But beyond this, we must break down the barriers that prevent skills and qualifications being recognised across borders. Let us make lifelong learning the new norm!

     
       

     

      Li Andersson, The Left-ryhmän puolesta. – Arvoisa puhemies, kaikki puhuvat nykyään taidoista. Yritykset ovat nostaneet osaavien työntekijöiden puutteen esille keskeisimpänä kasvun esteenä Euroopassa. Työvoimapula vaivaa monia aloja, ja myös Draghin raportin viesti oli, että kaikille eurooppalaisille työntekijöille pitää turvata oikeus kouluttautua.

    On tärkeää, että Eurooppa nostaa yksiselitteisesti osaamisen ja oppimisen kilpailukyvyn keskiöön. Meidän ei tule kilpailla palkkoja polkemalla, työehtoja heikentämällä, luonnonvaroja riistämällä tai antamalla eriarvoisuuden kasvaa räjähdysmäisesti. Meidän tulee tehdä asioita uudella ja paremmalla tavalla – niin talouden vahvistamiseksi kuin ihmisten elämän parantamiseksi.

    Mutta olemmeko todellakin valmiita koulutuspolitiikkaan, joka vastaa näihin suuriin haasteisiin? Silloin niin työnantajilla kuin yhteiskunnilla pitää olla valmius rahoittaa työikäisten opiskelua nykyistä enemmän. Silloin työnantajien pitää olla valmiita antamaan työntekijöiden käyttää siihen työaikaa. Silloin työttömille pitää antaa vapaus ja mahdollisuus opiskeluun. Silloin myös koulutusjärjestelmämme tulee vastata paremmin erilaisten oppijoiden tarpeisiin. Tämä kaikki edellyttää aivan eri mittaluokan panostuksia kuin mitä me tähän asti olemme nähneet.

    Meidän tulee myös ymmärtää, että työvoimapulassa ei ole kyse vain taidoista tai niiden puutteista. Siinä on myös kyse työoloista – palkasta, työoloista, työehdoista ja mahdollisuuksista vaikuttaa. Mikään määrä taitoja tai koulutusta maailmassa ei korvaa sitä, että ihmiset saavat mahdollisuuden tehdä työnsä hyvin, kunnollista korvausta vastaan.

     
       

     

      Рада Лайкова, от името на групата ESN. – Уважаеми граждани на ЕС, единственото нещо, което е по-безидейно от доклада на Марио Драги, е стратегията, заложена в този доклад. Както и очаквахме, този уж външен доклад се цитира вече за всеки план на ЕС, като задължително се добавят думи, събудени думи или „woke“ думи като зелен, устойчив, дигитално приобщаващ, климатично, неутрален и т. н.

    Със стремежа си за уеднаквяване Европейският съюз сам създаде кризата в образованието, защото университетите станаха фабрики за хора с дипломи без истински знания. Учат се да повтарят, а не да мислят. А това не е целта на критичното мислене и образованието. Трудно ми е да повярвам, че ЕС иска да подобри образованието, защото тук няма интерес от информирани граждани, иначе не биха се въвеждали закони под предлог за защита от дезинформация.

    Информираните граждани не се третират като деца. Спомнете си клиповете за миене на ръце на Урсула фон дер Лайен. Европейският съюз има нужда от покорни, дигитално маркирани данъкоплатци, които не задават въпроси, затова и преследва подобна политика в сферата на образованието. Но в последните 15 години вече беше нанесена достатъчно вреда в тази сфера и този период скоро трябва да приключи.

     
       

     

      Jagna Marczułajtis-Walczak (PPE). – Panie Przewodniczący! Panie komisarzu! Problem luki w umiejętnościach w Unii Europejskiej jest kwestią bardzo złożoną. Umiejętności pracowników i systemy kształcenia, a z drugiej strony oczekiwania rynku pracy nie zbiegają się w jednym punkcie. To problem wieloaspektowy.

    Po pierwsze, szybkie zmiany technologiczne generują nowe, wymagające umiejętności, za którymi wiele osób nie nadąża. Po drugie, w wielu krajach Unii Europejskiej systemy edukacyjne i programy nauczania wymagają uelastycznienia. Po trzecie, luki w umiejętnościach wynikają także z nierówności regionalnych. Lokalni pracodawcy często nie są w stanie znaleźć odpowiednio wykwalifikowanej kadry w swojej okolicy. Po czwarte, kolejną ważną sprawą jest kwestia starzejącego się społeczeństwa. To wyzwanie, ale i okazja do budowania lepszych i dostępnych systemów opieki i rehabilitacji.

    Wspierajmy uczenie się zawodów opiekuńczych, które są nieocenione dla członków naszych rodzin, a które kiedyś będą nieocenione i dla nas. Potrzebujemy działań na wielu frontach, ale najważniejsze jest prawidłowe zrozumienie problemu, który niewątpliwie istnieje.

     
       


     

      Pascale Piera (PfE). – Monsieur le Président, après avoir été président de la Banque centrale et si étroitement impliqué dans les orientations de l’Union européenne, Mario Draghi pose le constat de l’inefficacité totale des politiques européennes, menées à bâtons rompus au détriment des peuples. Nous le savons, notre continent n’est plus que l’ombre de lui-même sur le plan industriel, sur le plan commercial, sur le plan migratoire.

    Mario Draghi fait-il un mea culpa? Jamais. Pour expliquer ce désastre, auquel il a activement participé, il exhibe la pénurie de compétences comme s’il s’agissait d’une pénurie de marchandises. Pour tenter d’y remédier, il nous projette dans la fantasmagorie de la transition numérique et verte en nous promettant, dans une novlangue insupportable, toujours plus d’Europe, toujours plus d’argent pour d’hypothétiques programmes éducatifs, et en réalité toujours plus d’intrusion pour ce qu’il reste de souveraineté aux États souverains.

    Mario Draghi fait l’économie de toute réflexion de fond et préfère l’asservissement de notre jeunesse aux écrans et aux propagandes wokistes. Pourtant, redonner un niveau de compétence à notre jeunesse, c’est encourager la connaissance de ses racines, la richesse de la littérature, le travail et l’esprit critique. Autant de conditions qui ne sont pas aujourd’hui assurées par l’Union européenne.

     
       

     

      Georgiana Teodorescu (ECR). – Domnule președinte, România are nevoie urgentă de redeschiderea școlilor vocaționale de arte și meserii. Am ajuns o țară de absolvenți de studii superioare care nu știu să facă nimic și care nu își găsesc locuri de muncă pe măsura diplomelor, așa că fie pleacă la munci necalificate peste granițe, fie se angajează în astfel de servicii chiar în țară. Astăzi, în România, un electrician câștigă mai bine decât un avocat sau un inginer, spre exemplu, și chiar și așa nu îl găsești spre a-l angaja.

    Această imagine critică asupra țării mele riscă să se reflecte și asupra Europei în curând. Dacă nu alocăm bani mulți pentru învățământul vocațional, vom ajunge să importăm astfel de forță de muncă doar din afara granițelor Uniunii Europene, în timp ce propriii noștri cetățeni vor fi asistați social. Colaborarea între Uniunea Europeană, sectorul privat și instituțiile de învățământ este esențială. Trebuie să creăm parteneriate care să adune resurse și expertiză ca să ne asigurăm că programele de formare răspund nevoilor de mâine.

     
       

     

      Grégory Allione (Renew). – Monsieur le Président, Monsieur le Commissaire, chers collègues, le rapport Draghi nous l’a montré: l’Europe doit devenir plus compétitive. C’est un défi existentiel, un défi pour voir l’Union devenir une actrice forte et indépendante sur la scène mondiale, cheffe de file dans les domaines de l’éducation, des nouvelles technologies et de la lutte contre le changement climatique.

    Nous le savons, l’investissement dans l’éducation et la formation, dans la protection sociale et la santé contribue à créer une société souveraine, plus résiliente, plus inclusive et, de fait, plus compétitive. Oui, nous devons d’urgence combler notre déficit en matière de compétences. Actuellement, près de 80 % des employeurs peinent à recruter des travailleurs possédant les compétences requises, quand ceux que nous avons formés font valoir, bien cher et outre-Atlantique, leurs compétences acquises ici en Europe. Par ailleurs, 60 % des travailleurs déclarent avoir besoin d’être formés aux outils de l’intelligence artificielle, quand 14 % le sont réellement. Enfin, nous le savons, il y a des pénuries de main-d’œuvre dans les domaines essentiels de la transition tels que la construction, la santé ou les énergies bas carbone.

    Le chantier est énorme. Le rapport Draghi nous donne la trajectoire comme les solutions. Sans renforcer les compétences de nos travailleurs, de notre richesse humaine, l’Union restera spectatrice de sa double transition – verte et numérique.

     
       


     

      Marina Mesure (The Left). – Monsieur le Président, pour les besoins de la bifurcation écologique, 25 millions d’emplois sont nécessaires. Mais combien de ces postes resteront non pourvus, faute de travailleurs correctement formés et de conditions de travail décentes?

    Prenons un secteur clé: celui de la construction. Nous savons tous ici qu’il y a urgence à rénover les bâtiments, car il s’agit d’un enjeu social majeur pour nos concitoyens, qui peinent à se loger et à payer leur facture énergétique, et d’un enjeu écologique, puisque les bâtiments représentent 40 % des émissions de gaz à effet de serre. Et bien, dans ce secteur, le manque de main-d’œuvre est une préoccupation pour 96 % des entreprises.

    Alors pourquoi si peu de candidats? Le rapport Draghi apporte une explication parmi d’autres: les salaires peu attrayants, qui contribuent à ce déficit dans un secteur qui compte encore un mort par jour. Donc, si vous voulez parler compétitivité, très bien! Mais vous ne pouvez pas le faire sans parler démocratie sociale, valorisation de ces métiers essentiels, formation continue, conditions de travail dignes, reconnaissance de la pénibilité au travail et garantie d’un environnement de travail sain et sûr pour toutes et pour tous.

    C’est ainsi que nous rendrons les métiers essentiels à la bifurcation écologique attrayants et que nous comblerons le déficit de main-d’œuvre.

     
       

     

      Diego Solier (NI). – Señor presidente, señor comisario, señorías, si queremos una Europa competitiva, realista y sostenible, necesitamos cambios de impacto rápido en nuestros ciudadanos.

    Tenemos tres importantes áreas en las que hay que dar un giro de 180 grados.

    Primero, una pirámide poblacional suicida y totalmente invertida. Sin políticas de familia, natalidad y conciliación laboral, esto no se resolverá ni importando a millones de inmigrantes, como pretenden ustedes.

    Segundo, despolitización de la educación de Europa. Solo priorizando la excelencia y el esfuerzo de los estudiantes, superaremos la mediocridad: agilicemos la homologación de títulos universitarios europeos, desarrollemos una conexión empresarial con esos mismos entornos educativos de éxito.

    Y, tercero, la formación a los empleados en tecnologías para que exploten sus productividades. El 99 % de nuestro tejido empresarial es pequeña y mediana empresa y carece de los recursos necesarios para cumplir con toda la burocracia que les imponemos desde Europa.

    El tiempo de actuar es ahora. Mañana ya será tarde.

     
       

     

      Andreas Schwab (PPE). – Herr Präsident, Herr Kommissar, liebe Kolleginnen und Kollegen! Mario Draghi hat uns auf fast 400 Seiten hier mit seinem Bericht die Schwachstellen der EU-Gesetzgebung ins Stammbuch geschrieben. Aber er kommt anders, als die Kollegin behauptet, nicht zu dem Ergebnis, dass das, was wir gemacht haben, alles falsch ist, sondern wir haben, was die Qualifikationslücke angeht, im Binnenmarkt falsche Anreize gesetzt. Und dafür haben wir eigentlich seinen Bericht nicht gebraucht, denn es war schon bei vielen Unternehmensbesuchen offensichtlich, dass wir es mit den Berichtspflichten schlicht übertrieben haben. Nicht jedes wünschenswerte Ziel braucht auch eine Berichtspflicht.

    Das Beispiel ist bekannt aus meinem Wahlkreis: Ein kleines mittelständisches Unternehmen muss, weil es Zulieferer für ein Großunternehmen ist, 1 600 Berichtspflichten erfüllen im Rahmen der Corporate Social Responsibility-Richtlinie. Da geht es natürlich darum, dass die drei neuen Mitarbeiter, die dieses Unternehmen lange suchen muss, bevor sie eingestellt werden können, dann nicht in der Produktion sind, sondern beim Ausfüllen der Berichtspflichten. Gleichzeitig muss die große Wirtschaftsprüfungsgesellschaft auch zwei neue Mitarbeiter einstellen, um diese Berichtspflichten zu überprüfen, um den Jahresabschluss zu erstellen – das ist schlicht und ergreifend eine Fehlallokation.

    Wir müssen dazu kommen – und am besten in den ersten 100 Tagen der neuen Kommission –, dass der Unternehmer ein leeres Blatt Papier nimmt und drauf schreibt: Ich habe die Regeln verstanden und gelesen und hafte mit meinem Namen. Die Franzosen sagen dazu lu et approuvé. Das würde Bürokratie abbauen, die Sache vereinfachen und das Leben für viele Unternehmer wieder angenehmer machen mit dem Ziel, den Wohlstand der Bürgerinnen und Bürger in Europa zu steigern; und das können wir schaffen.

     
       

     

      Niels Fuglsang (S&D). – Hr. formand! Kære kolleger! I løbet af det sidste år har vi vedtaget meget vigtig lovgivning her i huset. Lovgivning om hvordan vi fremmer den grønne omstilling. Mål for vedvarende energi, hvor meget skal vi have? Mål for energieffektivitet. Lovgivning, der skal omstille industrien til at blive grøn. Men alt det her kan jo kun lade sig gøre, hvis vi har den nødvendige kvalificerede arbejdskraft. Hvis vi har tilstrækkeligt med faglærte, der kan sætte vindmøllerne op. Elektrikere, der kan sætte strøm til vores elbiler. Mekanikere, der kan reparere vores biler, og smede, der kan svejse vores pumper. Derfor har vi brug for kvalificeret arbejdskraft. Vi har brug for al den arbejdskraft, vi overhovedet kan tænke på, til at udvikle nye innovative teknologier. Og jeg er glad for at se, at Mario Draghi fokuserer på netop det her i sin rapport. Det er det, vi skal investere i sammen. Det er nu, det gælder.

     
       

     

      Annamária Vicsek (PfE). – Tisztelt Elnök Úr! A Draghi-jelentésben említett készséghiányokat és az európai versenyképesség súlyos hanyatlását nem pusztán tüneti kezelésekkel, hanem valódi versenyképesség-növelő intézkedésekkel lehet csak megoldani.

    Ilyen megoldás lehet például a magyar modell, amit a magyar elnökség programjának elemeként ismerhettünk meg. A felsőoktatásban, a szakképzésben és a felnőttképzésben kialakított stratégiai partnerség a felsőoktatási és szakképzési intézmények, valamint a gazdasági és társadalmi szereplők között öt év alatt már mérhető eredményeket hozott. Míg öt éve még csak 7 magyar egyetem, mára már 12 tartozik a világ legjobb 5 százalékába, sőt a világ legjobb 1%-ában is található magyar egyetem. 20%-kal nőttek a vállalati bevételek, nőtt a hallgatói létszám és nagy arányban csökkent a lemorzsolódás.

    A Bizottság meg kell, hogy kezdje Európa versenyképességének fokozását, ugyanakkor meg kell, hogy szüntesse a magyar felsőoktatási intézmények versenyképességét csökkentő diszkriminatív intézkedéseit, amely végső soron a teljes Európai Unió versenyképességét is csökkenti.

     
       

     

      Marlena Maląg (ECR). – Panie Przewodniczący! Panie komisarzu! Niedobór kwalifikacji to poważny problem, który dotyka całą Unię Europejską. Jak wynika z raportu Draghiego, około trzech czwartych europejskich firm zgłasza trudności ze znalezieniem pracowników z odpowiednimi umiejętnościami. Jednocześnie około 42% Europejczyków nie posiada podstawowych umiejętności cyfrowych. Nakładają się na to jeszcze problemy demograficzne starzejącego się społeczeństwa i daje to obraz rynku pracy.

    Choć polityka kształcenia i szkolenia leży w gestii państw członkowskich, Unia wspiera te wysiłki, popierając konkretnymi strategiami, programami oraz udzielając konkretnego wsparcia. Szczególne znaczenie mają tu umiejętności cyfrowe, szkolnictwo zawodowe, w tym inwestowanie w kształcenie ustawiczne. Bardzo ważne jest promowanie takich inicjatyw jak Junior Skills promujących młodych mistrzów zawodowych. Zamiast promować migrację, musimy zadbać o to, aby wykształcić własnych specjalistów po to, aby Unia Europejska była odporna na kryzysy i znacznie bardziej konkurencyjna.

     
       

     

      Христо Петров (Renew). – Г-н Комисар, инженери, IT специалисти, готвачи, Европейският съюз е изправен пред недостиг на работна ръка за много професии. В моята страна бизнесът има огромни проблеми при намирането на подходящи кадри. Докладът на Марио Драги призовава за принципно нов подход към уменията и аз съм съгласен. Но когато говорим за конкурентоспособност, трябва да говорим и за европейския социален модел, защото той прави Европа най-доброто място в света за живеене и работа.

    За да решим проблема, ние трябва да укрепим нашата стратегия за повишаване на уменията и преквалификация на работниците, както и да активираме цялото население в трудоспособна възраст с персонализирана подкрепа. Все още има нереализиран потенциал в нашите региони. Трябва и да привлечем таланти от цял свят, за това „EU Talent Pool“ ще бъде от огромно значение. Той трябва да насърчи законното наемане на работа, като гарантира безопасност, ефективност и адекватност.

    Време е да създадем правилния инструмент, който да е от полза както за работодателите, така и за търсещите работа.

     
       

     

      Benedetta Scuderi (Verts/ALE). – Signor Presidente, onorevoli colleghi, la transizione ecologica e quella digitale ci offrono un’opportunità incredibile, non solo per creare milioni di posti di lavoro ma anche per rivoluzionare il nostro paradigma produttivo e socioeconomico verso un mondo del lavoro più giusto e inclusivo.

    La carenza di manodopera qualificata è evidente ed è quindi essenziale colmare il divario di competenze con percorsi di formazione e aggiornamento professionale. Questo impegno, però, non deve essere preso solo dall’industria ma anche da noi istituzioni, dal pubblico. Solo così, infatti, possiamo includere nel mondo del lavoro tutte le persone che ne rimangono sistematicamente escluse.

    Penso alle donne, alle persone razializzate, alle persone trans, a quelle con disabilità e a tutte quelle che subiscono discriminazioni. Penso ai giovani e a tutte le difficoltà a entrare nel mondo del lavoro a suon di tirocini non pagati e salari bassissimi.

    Quindi, ben venga riportare l’industria europea al centro dell’agenda politica: ma per farlo non possiamo commettere gli stessi errori del passato. Torniamo a parlare con le parti sociali in modo serio, rafforziamo la contrattazione collettiva, garantiamo standard elevati di sicurezza sul luogo di lavoro, lotta a pratiche antisindacali, a frodi, a sfruttamento sociale e, soprattutto, salari dignitosi.

    Un mercato del lavoro frutto di una società ineguale e un tessuto sociale impoverito non può essere competitivo.

     
       

     

      Dario Tamburrano (The Left). – Signor Presidente, onorevoli colleghi, Stati Uniti e Cina concorrono per la supremazia nelle nuove tecnologie, come mobilità elettrica e intelligenza artificiale, mentre noi, con la nostra politica economica e industriale fallimentare, abbiamo perso decenni e posizioni e stiamo retrocedendo anche nelle politiche dell’istruzione e dell’educazione al digitale per le nuove generazioni.

    La nostra industria non cresce abbastanza, anche perché non coltiva abbastanza e protegge le intelligenze naturali. In questo scenario fosco, le nostre società subiscono, invece di governarli, gli effetti della digitalizzazione.

    È un’emergenza sociale e medica: il fenomeno dell’addicction digitale e di impoverimento delle capacità psico-relazionali, causati dall’esposizione permanente e inconsapevole alle nuove tecnologie digitali. È pertanto un imperativo morale rendere genitori e ragazzi più edotti degli effetti collaterali del digitale pervasivo e dell’intelligenza artificiale.

    E lancio un appello a Parlamento e Commissione, affinché si avviino programmi specifici di monitoraggio e prevenzione, soprattutto per i soggetti in età evolutiva. Per una volta, di fronte a una nuova tecnologia, preveniamo invece di curare.

     
       

     

      Pilar del Castillo Vera (PPE). – Señor presidente, señor comisario, cada persona debe tener su oportunidad en la transición digital. Solo con una formación adecuada cada uno podrá aprovechar todo el potencial que brinda la digitalización.

    Esta brecha, como señala el señor Draghi, que hay con países que tienen más desarrolladas tanto la innovación tecnológica como la formación tecnológica es, en buena medida, la que explica el déficit que tenemos nosotros respecto de la competitividad que tienen países como los Estados Unidos. Es imperativo que competitividad y formación digital vayan de la mano. La formación digital debe estar presente a lo largo de todo el período educativo; por ejemplo, la programación debe incorporarse siempre en los inicios de la educación escolar, para que los alumnos vayan comprendiendo la naturaleza digital del sistema en el que viven.

    Por otra parte, la Unión Europea debe incrementar el número de graduados CTIM, que, pese a los avances, todavía está lejos de cubrir la demanda que existe en estos perfiles. También es esencial reforzar la formación digital en los sistemas de formación profesional.

    Por último, la actualización y la adquisición de nuevas habilidades digitales deben ser constantes a lo largo de la vida; es más, hay que garantizarlo.

    En definitiva, la formación digital no solo es clave para lograr una Europa innovadora y competitiva, también lo es para que cada persona tenga su oportunidad en este proceso de transformación digital. Y, añado, no solo es esencial, también es urgente: el momento es ahora, mañana será tarde.

     
       

     

      Marcos Ros Sempere (S&D). – Señor presidente, señor comisario, hablar de juventud es hablar de futuro, y para que el futuro sea brillante necesitamos reforzar sus competencias.

    Las intenciones son buenas: la prueba es una futura vicepresidenta ejecutiva dedicada a estas competencias en la nueva Comisión Europea. Pero, sin embargo, los datos son más oscuros: los resultados de los jóvenes indican un déficit de competencias, y las proyecciones para 2035 apuntan a que este déficit aumentará.

    Debemos actuar. Necesitamos una estrategia europea para reducir el déficit en competencias en todas las fases de la educación. Tenemos que ofrecer a nuestros jóvenes herramientas para desarrollar competencias, mejorarlas y actualizarlas durante la vida adulta, y el reconocimiento automático de títulos académicos y de competencias para mejorar el entendimiento y la movilidad entre Estados miembros.

    2025 ya está aquí, y es la fecha que marcamos para pedir la implementación del Espacio Europeo de Educación. Hagámoslo realidad, hagamos brillar el futuro de nuestros jóvenes.

     
       

     

      Antonella Sberna (ECR). – Signor Presidente, onorevoli colleghi, signor Commissario, il divario delle competenze rischia di frenare il nostro sviluppo e penalizzare la competitività dell’Europa e quello di genere, in particolare, continua a penalizzare il potenziale delle donne, specialmente nei settori strategici come la tecnologia.

    Secondo l’Istituto europeo per l’uguaglianza di genere, l’eliminazione di questo divario nei settori STEM potrebbe favorire la creazione di ulteriori 1.200.000 posti di lavoro. In occasione dell’Anno europeo delle competenze, in Italia il governo Meloni ha introdotto, con la legge 187 del 2023, la Settimana nazionale delle discipline STEM, con l’obiettivo di sensibilizzare e stimolare l’interesse dei ragazzi, e soprattutto delle ragazze, verso queste discipline. È una buona prassi e quindi può ispirare il lavoro di altri Paesi membri.

    In Europa, invece, la Commissione europea ha promosso il patto per le competenze, un’iniziativa che riteniamo importante, che invita le organizzazioni pubbliche e private a unire le forze e adottare azioni concrete per migliorare – soprattutto anche riqualificare – le persone in Europa. Ma non basta: sono necessarie una vera unione delle competenze, in cui l’accesso alle discipline chiave sia equo e accessibile per tutti, e la formazione per la riqualificazione professionale dei settori meno attrattivi.

    Dobbiamo garantire che le competenze acquisite in un Paese siano facilmente riconosciute in tutti gli Stati membri, favorendo la mobilità e l’inclusione lavorativa. Solo così possiamo affrontare il futuro con fiducia e rafforzare la competitività in Europa.

     
       

     

      Ľudovít Ódor (Renew). – Vážený pán predsedajúci, pán komisár, milí kolegovia, Európska únia musí v najbližších desaťročiach zvládnuť dve veľké transformácie – zelenú a digitálnu, a to so starnúcou populáciou. Táto misia je od začiatku odsúdená na zánik, ak sa nezbavíme zlozvykov z dvadsiateho storočia. Ktoré sú to? Po prvé, nemali by sme mladých pripravovať na konkrétnu profesiu, ale potrebujeme ich naučiť zručnosti na zvládnutie týchto výziev. Po druhé, prestaňme deliť život na vzdelávanie a následnú prácu. Nebuďme naivní, že dnešné poznatky nám postačia aj o 30 rokov. Práve digitalizácia a umelá inteligencia nám môžu pomôcť, aby sme sa kontinuálne učili tempom a spôsobom, ktorý nám vyhovuje. Po tretie, netvárme sa, že výborná priemerná kvalita univerzít stačí. Európska únia má na viac. Pre globálny úspech potrebujeme excelentnosť a musíme sa stať magnetom pre zahraničný talent. V dvadsiatom storočí sme si veľmi zvykli, že investície sú len o strojoch, betóne a asfalte. V dvadsiatom prvom storočí by mali byť najmä o ľudskom kapitáli.

     
       

     

      Rasmus Andresen (Verts/ALE). – Herr Präsident! Eine Million! Eine Million Fachkräfte fehlen bis 2030 allein dem deutschen Arbeitsmarkt, und in vielen anderen europäischen Staaten sieht das nicht anders aus.

    Über 60 % der kleinen und mittelständischen Unternehmen geben an, dass sie jetzt bereits Probleme haben, Fachkräfte zu finden. Der Fachkräftemangel ist eines der größten Probleme, das wir in der Europäischen Union in den nächsten Jahren haben, und ganz ehrlich: Es passiert viel zu wenig, um ihn anzugehen.

    Deshalb ist es gut, dass wir hier darüber reden, denn wenn wir wettbewerbsfähig sein wollen, dann brauchen wir qualifizierte Arbeitskraft. Die Antwort darauf ist: mehr Migration, mehr Investitionen in Bildung, eine bessere Vereinbarkeit von Familie und Beruf und auch bessere Arbeitsbedingungen, denn nur mit attraktiven Jobs werden wir es schaffen, Menschen zu uns zu bekommen.

    Denn wir brauchen mehr Menschen, die in der EU arbeiten, und nicht weniger. Deshalb ist es ein Problem, wenn Nationalismus, Hass und Hetze die Debatte bei uns dominieren. Niemand möchte in einer Europäischen Union leben, wo Alice Weidel oder Marine Le Pen den Takt angeben. Wir brauchen eine Willkommenskultur, die Menschen begrüßt und sie dabei unterstützt, hier bei uns ihren Arbeitsweg zu bestreiten.

     
       


     

      Sérgio Humberto (PPE). – Caro Presidente, Caro Comissário, Caros Colegas, em Portugal temos um provérbio que nos ensina que não devemos chorar sobre o leite derramado, e é por isso que devemos falar de soluções para o desafio que enfrentamos. Permitam‑me que partilhe convosco três prioridades para agirmos, porque ninguém cresce na estagnação. Repito: ninguém cresce na estagnação.

    Primeira: precisamos de investir na aprendizagem ao longo da vida. Aprender é a base para sermos mais produtivos e competitivos nos nossos territórios. Aprender em qualquer momento, em qualquer lugar vai‑nos preparar para as profissões do futuro e garantir um crescimento inclusivo.

    Segunda: precisamos de apostar na transição digital e tirar mais partido dos dados e da inteligência artificial, principalmente nas áreas da saúde, da energia e da biotecnologia.

    Terceira: precisamos de transitar para uma economia mais verde, de desenvolver uma verdadeira união energética numa verdadeira União Europeia.

    Precisamos de estar mais próximos. É tentador achar que estamos todos muito longe uns dos outros. No meu país, Portugal, também já estive longe, mas o longe faz‑se perto. Todos juntos somos muito mais do que 27. Se trabalharmos todos juntos, ninguém fica para trás.

    (O orador aceita responder a uma pergunta «cartão azul»)

     
       

     

      João Oliveira (The Left), Pergunta segundo o procedimento «cartão azul». – Senhor Deputado Sérgio Humberto, falou, na sua intervenção, da importância da educação e da formação para a qualificação dos trabalhadores. E eu quero que nos diga: como é que isso se faz, aceitando as restrições orçamentais que a União Europeia nos impõe? Como é que isso se faz – como neste momento acontece em Portugal – com o Governo que o senhor apoia a apresentar uma proposta de Orçamento do Estado que, aceitando as restrições orçamentais que a União Europeia nos impõe, não investe na escola pública, não investe na contratação e na requalificação das carreiras dos professores, não investe na contratação e na valorização dos auxiliares de ação educativa, dos técnicos especializados?

    Como é que isso tudo se faz? Porque, senão, o seu discurso é uma contradição com a prática.

     
       

     

      Sérgio Humberto (PPE), Resposta segundo o procedimento «cartão azul». – Caro Colega João Oliveira, durante os últimos nove anos, o meu país foi governado pela esquerda. Uma geringonça entre o Partido Socialista, o seu partido – o Partido Comunista – e o Bloco de Esquerda. Durante nove anos, desinvestiu‑se no sistema público educativo, desinvestiu‑se na saúde, desinvestiu‑se naquilo que eram os serviços públicos e este Governo, nos últimos – apenas – seis meses, já demonstrou que está a apostar na educação, que é fundamental para as pessoas crescerem.

    Nós só conseguimos redistribuir se nós formos um país mais rico e mais próspero.

     
       

     

      Elisabetta Gualmini (S&D). – Mr President, Commissioner, the spread of digital technologies is having a huge impact on the labour market, and innovations such as AI, robotics, quantum technology and 6G are triggering a wave of new demands for a new generation of advanced digital skills.

    The Draghi report strongly highlights how digitalisation and AI are essential, for example for the public sector due to its ability to provide quality public goods in the fields of health, education, justice and welfare. We need to work hard on the European digital decade programme and its ambitious goals, pushing professional training and life-long learning.

    We are still lagging behind: in Italy, only 22 % of the population have advanced digital skills. Only 30 % of SMEs have implemented a solid digital strategy, which is not a luxury, it’s a strategic asset. So we shouldn’t be afraid of change and Europe’s strength has always relied upon its people. By empowering them, we ensure that our communities grow and that the EU remains a global leader in innovation.

     
       

     

      Kris Van Dijck (ECR). – Voorzitter, commissaris, ik kom uit een land dat geen grondstoffen heeft, maar wel hersenen. Dat is het beste menselijk kapitaal. Wat voor Vlaanderen geldt, geldt in hoge mate voor heel Europa. Echter, PISA-resultaten tonen ons keer op keer dat de studieresultaten van onze jongeren er niet op vooruit gaan. Integendeel. We moeten dus onze lidstaten oproepen – niet in hun plaats treden, maar oproepen en ondersteunen – om de kwaliteit van ons onderwijs fundamenteel te verbeteren en op topniveau te brengen.

    Daarvoor moeten we streven naar uitmuntende prestaties, met aandacht voor kennisoverdracht bij kinderen en scholieren. We moeten leerkrachten en docenten de ruimte geven om hun werk te doen: lesgeven. We moeten gebruikmaken van moderne digitale technieken in alle opleidingen. We moeten universiteiten laten samenwerken en uitwisselen, bijvoorbeeld met het Erasmus+‑programma, over de grenzen heen. We moeten technische opleidingen en kunstopleidingen elkaar laten bevruchten. We moeten onderzoekers en wetenschappers in de EU de nodige omkadering en infrastructuur bieden, zodat ze niet vertrekken. We moeten projecten waarin we veel geld hebben gestoken niet laten doodbloeden zolang er resultaten zijn, zoals nu met de fusiereactor JET dreigt te gebeuren. Goed onderwijs is de basis voor een sterk Europa.

     
       

     

      Billy Kelleher (Renew). – Mr President, the Draghi report makes very sober reading for us in the European Union with regard to the challenges that we face in the digital economy and in the green economy in particular. Also, when you couple that with the demographic changes that are happening and the fact that we are an ageing population, our skills and labour force planning leaves a lot to be desired.

    What has happened now is that we’ve been found out with regard to skills shortages in key areas right across the entire economy. For example, 54 % of EU businesses, big and small, report skills shortages as the most pressing issue facing them.

    So we need to incentivise and reward upskilling and reskilling. We also need to promote lifelong learning, something that is more important as life expectancy increases over the years, and back‑to‑education and back‑to‑work as well. There are many cohorts of people, particularly women, who are not able to get back into the workplace because of a lack of support when finished with child rearing.

    That is a key area where we have consistently failed across many economies in the European Union in terms of incentivising and supporting labour activation and back‑to‑work and back‑to‑education for cohorts that were locked out for various reasons.

    So I hope that we invest in skills and lifelong learning and back‑to‑education, and support labour mobility as well.

     
       

     

      João Oliveira (The Left). – Senhor Presidente, a produtividade do trabalho tem vindo a aumentar sempre acima da evolução dos salários reais. A consequência disto é a transferência de riqueza criada pelos trabalhadores para o capital, e esse problema só pode ser resolvido aumentando os salários e garantindo uma distribuição mais justa da riqueza criada. Essa é a questão de fundo.

    Mas, este debate sobre a competitividade centra‑se, apenas, na comparação concorrencial com os Estados Unidos e a China. O relatório de Draghi é uma espécie de Bíblia não confessada da Comissão Europeia. Nesse relatório, os trabalhadores são vistos apenas como peças de uma engrenagem de produção, os seus direitos e necessidades não são considerados e a competitividade é abordada, dando prioridade à criação de empresas monopolistas pan‑europeias, à concentração e centralização do capital, ao agravamento da exploração de quem trabalha.

    O caminho do desenvolvimento e da justiça social é outro e tem de ter no centro das preocupações e prioridades políticas os trabalhadores, os seus direitos, os seus salários, as suas condições de vida e uma distribuição mais justa da riqueza criada pelo trabalho.

     
       

     

      Giusi Princi (PPE). – Signor Presidente, onorevoli colleghi, signor Commissario, la nostra capacità di rimanere competitivi e resilienti dipende dalla qualità delle competenze. La relazione Draghi evidenzia chiaramente come l’investimento in questo contesto sia essenziale per formare una forza lavoro altamente qualificata.

    È questa l’unica via per garantire all’Europa un ruolo leadership nelle industrie chiave come il digitale, l’energia verde e la finanza sostenibile. Nei primi vent’anni del XXI secolo abbiamo assistito a forme di conoscenza e di produzioni innovative che, in ultimo, con l’avvento dell’intelligenza artificiale, hanno generato profondi cambiamenti professionali. Il 56% dei lavori sta scomparendo e subirà imponenti trasformazioni entro pochi decenni.

    Occorre affrontare le nuove sfide ripensando a nuovi modelli educativi e formativi. L’Europa è ancora indietro negli investimenti, nella ricerca e nell’educazione rispetto a Stati Uniti e Cina. Ma anche all’interno dello stesso continente vediamo i Paesi del Nord investire maggiormente risorse umane rispetto alle aree marginali del Sud Europa.

    Il gruppo PPE e Forza Italia, con il suo recente documento economico, sono fermamente convinti che l’Anno europeo delle competenze debba quindi rappresentare un’opportunità per investire in modo uniforme in ricerca, educazione e innovazione per arginare la mancanza di specializzazioni e la profonda carenza tra domanda e offerta di competenze.

    Il nostro impegno, però, non può essere esclusivamente tecnico. Dobbiamo garantire che l’accesso alle competenze sia equo e inclusivo: tutti devono poter partecipare attivamente alla crescita europea per evitare che il progresso tecnologico crei nuove disuguaglianze.

     
       

     

      Tiemo Wölken (S&D). – Sehr geehrter Herr Präsident, liebe Kolleginnen und Kollegen! Die Liste der Herausforderungen, die Draghi uns ins Pflichtenheft geschrieben hat, ist lang. Da ist der unvollendete Binnenmarkt, da ist eine unkoordinierte Industriepolitik und immer größer werdende Abhängigkeit bei kritischen Technologien, die letztlich unsere politische Handlungsfähigkeit, aber auch unsere Gesellschaft als Ganzes bedrohen. Wir diskutieren jetzt aktiv die Bewältigung dieser Mammutaufgabe. Aber zu oft bleiben wir dabei bei plakativen, einfachen Forderungen. Die einen sagen „mehr Subventionen“, die anderen sagen „weg mit jeglicher Bürokratie“ – und das Problem sei gelöst.

    Diese vermeintlich einfachen Lösungen sind aber nicht die Antwort, denn Sie vergessen am Ende, worauf es ankommt – auf die Bürgerinnen und Bürger Europas. Wir brauchen für sie und mit ihnen eine digitale, eine grüne Transformation, die ganzheitlich ansetzt und den Menschen in den Mittelpunkt stellt. Und wir müssen fragen: Liebe Bürgerinnen und Bürger, was braucht ihr, um anzupacken, damit diese Transformation gelingt?

    Und ja, dazu gehören auch Subventionen und bürokratische Entlastungen. Aber es geht um gute Arbeitsplätze, um Arbeitnehmerinnen- und Arbeitnehmerrechte, um unsere Lebensbedingungen in Europa und das richtige Handwerkszeug für uns Europäerinnen und Europäer, und deswegen müssen wir gemeinsam anpacken.

     
       

     

      Beatrice Timgren (ECR). – Herr talman! EU vill överbrygga kompetensklyftan och öka konkurrenskraften enligt Draghi-rapporten. Men vad innebär det? Fler lånefinansierade bidrag som svenska sjuksköterskor och byggarbetare kommer att behöva betala och även framtida generationer.

    Draghi vill införa EU-skatter och avskaffa vetorätten. Det här är ett direkt hot mot Sveriges självständighet.

    EU föreslås också öka stödet till den digitala och den gröna omställningen. Det låter gulligt, men det blir en dyr affär för Sverige som redan är världsledande. Vi har redan plöjt ner miljarder i gröna prestigeprojekt som inte levererar. Räcker inte det?

    Det är vanliga medborgares intressen som vi ska värna, inte EU-kläggets utopiska visioner, som gör det svårt att driva företag, betala elräkningen eller få vardagen att gå ihop.

    Enligt tidningen Näringsliv borde Draghi-rapporten skrämma slag på EU. Jag undrar, lyssnar ni borgerliga EPP? Är ni beredda att hjälpa oss att skrota dessa galna planer?

     
       


     

      Andrea Wechsler (PPE). – Sehr geehrter Herr Präsident, sehr geehrte Damen und Herren! Am gestrigen Abend saß ich mit vielen jungen Menschen aus der Textilindustrie zusammen, die die Hoffnungsträger dieser Branche sind. Ich saß aber auch mit vielen Unternehmerinnen und Unternehmern zusammen, die diese Branche vertrauensvoll in die Hände der nächsten Generation geben wollen. Die Diskussion drehte sich immer wieder um die Frage: „Wie können wir, Alt und Jung gemeinsam, in Europa zusammenstehen, um den Wandel und die Transformation in Europa hin zu einer nachhaltigen, zu einer digitalen Zukunft zu gestalten?“

    Es zeigten sich immer wieder die zwei gleichen Herausforderungen: Es fehlt in der Textilindustrie, genauso wie in vielen anderen Branchen, der Nachwuchs; und zweitens stellen wir über die gesamte Arbeitnehmerschaft fest, dass essenzielle Kompetenzen, insbesondere im handwerklichen und digitalen Bereich, fehlen.

    Diese Herausforderungen können wir sogar in konkrete Zahlen fassen. Fast drei Millionen junge Menschen in Deutschland zwischen 20 und 34 Jahren haben keinen Berufsabschluss. Ihnen fehlen die essenziellen Kompetenzen, die Qualifikationen, die unser Arbeitsmarkt auch braucht. Das ist kein deutsches Phänomen; wenn wir den Bericht von Herrn Draghi ansehen, sehen wir, dass 42 % der Europäer die digitalen Fähigkeiten nicht haben, die sie für die Zukunft in Europa benötigen.

    Das ist nicht nur ein Alarmsignal, sondern das ist Auftrag für uns. Wir müssen mit aller Dringlichkeit den Fokus auf digitale und technische Kompetenzen legen und das in das Zentrum unserer Bildungslandschaft setzen. Wir müssen den Fokus auf lebenslanges Lernen legen und auch der älteren Generation eine Chance auf Weiterbildung geben.

    Für uns Christdemokraten steht der Mensch im Mittelpunkt unserer Politik. Wenn wir in unsere Bürgerinnen und Bürger, unsere jungen Talente, unsere erfahrenen Kräfte investieren, investieren wir in die Zukunft Europas.

     
       


     

      Tobiasz Bocheński (ECR). – Panie Przewodniczący! Dzisiejsza debata jest niesłychana, ponieważ kolejny raz, już niezliczoną liczbę razy dyskutujemy tutaj o tym samym. Unia Europejska znajduje się naprawdę w bardzo poważnym kryzysie gospodarczym i w kryzysie konkurencyjności, co wykazał raport Draghiego.

    Ale przychodzicie tutaj, deliberujecie i posługujecie się ciągle tymi samymi okrągłymi określeniami, z których nic nie wynika. Konkurencyjność nie bierze się z biurokracji, konkurencyjność nie bierze się z nadregulacji, nie bierze się z inflacji prawa. Konkurencyjność budowana jest przez przedsiębiorców. Konkurencyjność budowana jest przez wolność gospodarczą, która jest gnieciona od czasu przyjęcia traktatu z Lizbony przez dyrektywy i rozporządzenia Unii Europejskiej. Nie gwarantujecie i nie dajecie żadnej rękojmi, że jesteście w stanie przeprowadzić jakikolwiek skomplikowany, ambitny program, który doprowadzi do zwiększenia konkurencyjności w Unii Europejskiej.

    Powinniście zejść z tej drogi i dokonać głębokiej reformy ustawodawstwa europejskiego. Inaczej biegniemy ku ścianie i będziemy skansenem w porównaniu z Chinami i Stanami Zjednoczonymi.

    (Mówca zgodził się na pytanie zasygnalizowane przez podniesienie niebieskiej kartki)

     
       


     

      Tobiasz Bocheński (ECR), odpowiedź na pytanie zadane przez podniesienie niebieskiej kartki. – Ma pan częściowo rację, o tyle, o ile każde przedsiębiorstwo składa się zarówno z pracowników, jak i z pracodawcy. Ale nie jest prawdą, że powinniśmy akcentować jedynie rolę pracowników, ponieważ jeżeli tak będziemy robili, to doprowadzimy do sytuacji, w której nie będzie żadnych przedsiębiorstw i skończymy jak Związek Radziecki. Bogactwo narodów bierze się z pracy, jak pisał Adam Smith. Bogactwo narodów bierze się z przedsiębiorczości, a pracownicy mają dostawać godne wynagrodzenie za pracę, którą wykonują.

     
       



     

      Paulius Saudargas (PPE). – Mr President, Commissioner, dear colleagues, Europe is in a vicious circle. We all knew it, but Mario Draghi clearly stated it: the king is naked.

    We are not competitive anymore. We lack innovation. But who creates innovation? The people. But we are in a big shortage of those people. First of all, the demography. We are dying out. Secondly, the immigration does not solve the problem of shrinking labour force and does not reduce the skills gap because the migrants do not necessarily meet the right skills portfolio.

    This debate should be a clear message to our educational sector as well. The universities and schools should provide more up-to-date programmes in accordance with the market demand. But, of course, I do not question the need for EU to invest more. Investment in our brightest people and their haute couture skills is a most worthy investment.

    The skills shortage is a growing barrier to innovation. We have talent, but not enough. Europe produces only 850 science, technology, engineering and math graduates per million inhabitants per year, compared to more than 1 100 in the United States. So, having this type of dynamics, the problems will eventually grow. Additionally to the direct solutions in the educational system, we should also have in mind the demography and targeted immigration policy.

    Dear colleagues, the developing artificial intelligence and its adaptation in various sectors will open problems in the labour market that we never faced. Let’s be aware.

     
       


     

      Andrzej Buła (PPE). – Panie Przewodniczący! Panie komisarzu! Raport Draghiego i wiele innych badań oraz dokumentów pokazują, że mieszkańcy Europy dla własnego bezpieczeństwa zawodowego i poczucia osobistej wartości muszą mieć możliwość podnoszenia kompetencji i kwalifikacji. Chcemy, aby mieli warunki do kształcenia się przez całe życie. Trudno zmierzyć te wartości przez pryzmat potrzeb przedsiębiorców, ale wskazują oni, że konkurencja gospodarcza wymaga wysoko wykwalifikowanych kadr. Natomiast żaden mieszkaniec Europy nie powinien obawiać się, że czegoś nie umie, i bać się podejmować nowych wyzwań.

    Europejski Fundusz Społeczny ma ogromny, lecz wciąż niewykorzystany potencjał w zapewnieniu ukierunkowanych szkoleń i możliwości podnoszenia kwalifikacji. Dlatego też program ten powinien być kontynuowany także po 2027 roku, z odpowiednim, wysokim budżetem, tak aby mógł pełnić kluczową rolę w wyposażaniu naszego społeczeństwa w umiejętności przyszłości.

     
       

     

      Estelle Ceulemans (S&D). – Monsieur le Président, il est clair que des engagements forts doivent être pris pour améliorer les compétences et la formation, qui sont des composantes clés pour relever les défis des transitions climatique et numérique, mais aussi pour répondre à l’enjeu des pénuries d’emplois dans certains secteurs, comme ceux de l’aide aux personnes, des soins de santé et de l’enseignement.

    Mais il est important de souligner que cette question est surtout liée à celle de la qualité de l’emploi dans ces secteurs dits en pénurie. Tout d’abord, les salaires sont souvent trop faibles. Il faut donc faire en sorte de les hausser. Mais les conditions de travail posent aussi problème. Il faut donc œuvrer ensemble pour mieux aborder des sujets tels que les risques psychosociaux, le surmenage, le télétravail et le droit à la déconnexion.

    Enfin, reste la question de la conciliation entre vie privée et vie professionnelle. Ce point est déterminant pour mieux intégrer les femmes sur le marché du travail, il est aussi crucial pour les jeunes. Et puis, il faut reconnaître, et c’est essentiel, le rôle des interlocuteurs sociaux, qui sont les seuls à véritablement connaître les besoins des travailleurs et les réalités du monde du travail, et par conséquent à pouvoir répondre à ces enjeux de formation.

     
       

     

      Axel Voss (PPE). – Herr Präsident, Herr Kommissar, liebe Kolleginnen und Kollegen! Wir können nicht wirklich geschockt sein über die Erkenntnisse aus dem Draghi-Bericht. Seit Jahren hören wir eigentlich das Klagen, und wir nehmen es irgendwie nicht wirklich ernst. Wann müssen wir eigentlich mal aufwachen, glaube ich?

    Die digitale Agenda gehört an die Spitze unserer ganzen Agenda, und das muss wirklich ganz oben stehen, um die Menschen hier auch mitzunehmen. Bei dem digitalen Wettbewerb brauchen wir: erstens eine Garantie für die Hochgeschwindigkeitsverbindungen, für eine robuste digitale Infrastruktur; zweitens eine klare Strategie für digital skills, die die Ressourcen auch entsprechend bündelt; drittens ein EU-Visa-Programm auch für die digitalen Talente in der Welt; viertens eine offene und einheitliche Datenbank für Einzelpersonen und Unternehmen, um Umschulungsmöglichkeiten und Trainingsprogramme zu finden; und fünftens sollten wir auch umsonst Onlinekurse anbieten, um Kompetenzen im digitalen Bereich auch auszubauen.

    Jedenfalls sollten wir diese Entwicklungen wirklich ernst nehmen, und wir können uns heute nicht ernsthaft darüber beschweren, dass jemand außerhalb der Europäischen Kommission oder außerhalb des Parlaments uns erzählt, was wir machen müssen; das sollte schon von uns selber kommen. Deshalb hoffe ich, dass wir diesen Weg jetzt auch endlich beschreiten.

     
       


     

      Esther Herranz García (PPE). – Señor presidente, señor comisario, cuando hablamos del déficit de capacidades de competitividad, solemos siempre centrarnos en sectores relacionados con el desarrollo informático o la economía 4.0. Sin embargo, hay un sector económico clave para nuestra autonomía estratégica y nuestra competitividad al que no se le suele prestar atención, como es el de la agricultura y la ganadería.

    En las últimas décadas ha habido una enorme evolución en el uso de las nuevas tecnologías y técnicas de precisión en el sector primario, que requieren formación específica y avanzada para que pueda exprimirse todo su potencial. En esta línea, quiero felicitar a la Comisión Europea por impulsar el Pacto por las Capacidades en el sector agroalimentario: sé que hay voluntad de seguir apoyándolo durante este mandato y así espero que sea. Es vital para el desarrollo del tejido económico de las áreas rurales y para incentivar el relevo generacional.

    Y en esa misma línea, quiero aprovechar, antes de terminar, para pedir que se impulse una visión de la agricultura como sector económico atractivo también en las etapas formativas obligatorias. La agricultura y la ganadería deben ser un elemento fundamental en nuestras estrategias de competitividad y, sin atraer a futuros profesionales, será extremadamente difícil conseguirlo.

     
       

     

      Marc Angel (S&D). – Mr President, dear all, closing the EU’s skills gap is a must for all transitions that our society, our workforce and our economy are facing now and in the future. When it comes to the climate and to digital transitions, we need to come back to a positive narrative – highlighting the opportunities, but of course also addressing fears and doubts.

    To close our skills gap, we also need a true single market of skills by facilitating the recognition of the competencies of our workforces between our Member States.

    I want to thank Commissioner Nicolas Schmit for the work already delivered with the European Years of Skills, individual learning accounts and the extension of the Erasmus+ mission. All this has improved access to vocational education and training for all, and we must continue on that path.

    If the new Commission wants to use ‘skills, skills, skills’ as a mantra, we must not forget that our citizens, our workforce, young and old, will only embrace this if lifelong learning and upskilling lead to better jobs, to quality jobs.

    Indeed, when we discuss skills, we have to address the social dimension of competitiveness and jobs, and cherish social dialogue.

     
       


     

      Annalisa Corrado (S&D). – Signor Presidente, onorevoli colleghi, stiamo navigando in acque in tempesta, con profondi cambiamenti in atto che dobbiamo governare. Quando soffia il vento del cambiamento, gli stolti costruiscono muri, i saggi mulini a vento.

    L’Europa, alla prova di questa sfida, deve saper costruire un sistema di formazione e ricerca inclusivo e integrato, che consenta di sviluppare competenze con uno sguardo sistemico e multidisciplinare a servizio del bene comune, a servizio della trasformazione ecologica e digitale delle nostre economie e società.

    Serve una particolare attenzione alle competenze tecnico scientifiche. Impossibile governare questo cambiamento senza politiche di inclusione e sostegno per i giovani; impossibile, senza liberare l’enorme potenziale delle donne che sono tenute lontane dalle discipline tecnico-scientifiche da una spaventosa e antistorica arretratezza culturale, che non ha alcuna ragione di esistere: parola di ingegnera meccanica.

    Colleghe, colleghi, a partire dal bilancio 2025 e per il quadro finanziario del prossimo settennato, servono risorse all’altezza di questa sfida.

     
       

     

      Bruno Gonçalves (S&D). – Senhor Presidente, Mario Draghi avisou‑nos de que a Europa está a ficar para trás – uma economia menos competitiva, pouco inovadora e dependente de importações. A resposta da direita é sempre a mesma: cortes indiscriminados de impostos em benefício sobretudo das grandes empresas multinacionais. Mas não é assim que nós conseguimos mudar o nosso rumo.

    Reduzir o diferencial para os Estados Unidos e para a China, mas também para as assimetrias internas da nossa União, desenvolvendo as economias periféricas, exige uma indústria a sério, que contribua para uma redução das emissões com mais energias renováveis, uma indústria limpa, sustentável, que ofereça bons empregos para todos, sejam mais ou menos qualificados.

    Uma revolução digital tem também de ser social. Para isso, não há melhor solução do que investir nas pessoas. Só assim podemos garantir que a Europa de hoje tenha mão de obra especializada que nos faz falta; e, mais importante do que isso, que no futuro ninguém fica para trás. Ou esta é uma socialmente justa transição ou corre o risco de nunca ver a luz do dia.

     
       

       

    Catch-the-eye procedure

     
       

     

      Hélder Sousa Silva (PPE). – Senhor Presidente, Caro Comissário, Caros Colegas, o relatório de Draghi é bem claro: sem trabalhadores qualificados, o nosso futuro está claramente em risco. Hoje, as competências vão muito além da matemática e da gramática, é preciso dominar o digital e dominar também áreas transversais, como a sustentabilidade e a criatividade.

    Aqui, o Erasmus+ é verdadeiramente um aliado e este programa é muito mais do que mobilidade, é uma ponte entre a educação e o mercado de trabalho. Por isso, os cortes propostos pelo Conselho para o programa Erasmus+ são um erro estratégico e são verdadeiramente inaceitáveis. Daí que o Parlamento – e bem – proponha um reforço, para o ano de 2025, de cerca de 70 milhões de EUR.

    Agora, é tempo de agir, fortalecendo a competitividade, através do reforço da formação na nossa União.

     
       

       

    PRESIDENZA: PINA PICIERNO
    Vicepresidente

     
       


     

      Nina Carberry (PPE). – Madam President, Commissioner, the greatest asset that Europe has is its people. Since its inception, the European Union has funded and driven the development of its people through education, skills and apprenticeships.

    But if we are to compete on a global scale, we need to break down the barriers that are causing the skills gap in Europe. Housing, infrastructure, red tape, the cost of living – things that are not just unique to Ireland – are the main barriers. And while our urban areas are very attractive for our young skilled workforce, we need a more comprehensive plan for our rural areas. In my constituency, in the Midlands–North-West in Ireland, young people often see Dublin and other urban areas as their only option for work and education.

    The EU needs to be at the forefront of solving these problems with a comprehensive plan for the development of rural areas. We need to show young people that their future can be at home, that they can innovate and thrive, not tens of thousands of miles away, but right here in the European Union.

     
       


     

      Tomislav Sokol (PPE). – Poštovana predsjedavajuća, države članice, sve se više susreću s problemom nedostatka radne snage, a 54 % poduzetnika ističe da je žurno potrebno riješiti ovaj problem.

    U Draghijevom izvješću ispravno je primijećeno da su uzroci manjka radne snage neusklađenost obrazovnih sustava s potrebama tržišta rada, sve manji broj radno aktivnog stanovništva, ali i loši radni uvjeti gdje svakako spadaju i nekonkurentne plaće. Nedostatak kvalificirane radne snage i dalje je najvažniji ograničavajući čimbenik proizvodnje i sprečava jačanje europske konkurentnosti, a posebno ovim problemom pogođen je sektor turizma. Pored toga, nedostatak medicinskog osoblja, među kojima liječnika, medicinskih sestara i primalja, odavno je poznat i bitno utječe na kvalitetu pružanja zdravstvene skrbi pacijentima. Međutim, uvoz nisko kvalificirane radne snage iz trećih država nije dugoročno rješenje za ovaj problem. Zato odobravanju radnih dozvola ne smijemo olako pristupati. Stoga je važno kontinuirano raditi na poboljšanju radnih uvjeta, prilagođavanju obrazovnih programa potrebama tržišta rada, posebno u STEM području, te oblikovanju programa prekvalifikacija.

    Kolegice i kolege, neograničen uvoz radne snage dugoročno je neodrživ. Zato EU mora hitno djelovati na više razina. Očekujem stoga da nova Komisija u prvih 100 dana predstavi Akcijski plan za rješavanje pitanja nedostatka radne snage.

     
       

     

      Maria Grapini (S&D). – Doamnă președintă, domnule comisar, nu discutăm un subiect nou. De foarte mult timp constatăm că avem decalaje de competențe în Uniunea Europeană. Problema este, domnule comisar, dacă găsiți metodele bune, dacă se aplică. Avem multe programe: de reconversie, programe pentru competențe, mecanisme de ajustare, dar care este rezultatul? Vedem că nu reușim să eliminăm acest decalaj de competență. De ce?

    Educația trebuie suprapusă peste cerințele economiei. Avem o strategie acum de reindustrializare. De ce competențe avem nevoie? N-avem nevoie numai de diplome, avem nevoie de personal calificat. IMM-urile – 4 din 5 – nu-și găsesc oameni calificați. Nici celelalte companii n-au curajul să investească pentru că nu au personal calificat. De aceea, domnule comisar, sper ca noua Comisie să gândească când investește dacă are și un rezultat al investiției, și anume să eliminăm acest decalaj de competențe din Uniunea Europeană și între statele membre, dar și în raport cu piața globală.

     
       

     

      Branislav Ondruš (NI). – Vážená pani predsedajúca, dámy a páni, pri investíciách, aby znalosti a zručnosti pracujúcich zodpovedali technológiám či novým pracovným postupom, musíme dávať dôraz na to, aby z toho nemali prospech len firmy. U nás posilňujeme minimálnu mzdu, aby rástli aj tie ostatné, lebo zamestnávatelia si stále málo uvedomujú, že lepší zárobok a lepšie pracovné podmienky sú kľúčovou motiváciou pre celoživotné vzdelávanie. Ak nemajú ľudia zarábať viac, prečo by mali získavať nové znalosti a zručnosti len preto, lebo firmy, pre ktoré pracujú, budú konkurencieschopné? Lenže konkurencieschopnosť firiem, dámy a páni, má význam, iba ak sa prejaví aj na lepších pracovných podmienkach a vyšších platoch zamestnancov, nielen na ziskoch korporácií. Na Slovensku vytvárame systém individuálnych účtov, ktoré budú ľuďom poskytovať financie na vzdelávacie kurzy. Chcem presadiť, aby zamestnanci absolvovali vzdelávanie výlučne v pracovnom čase, a teda aby za čas strávený v kurze im firmy dali mzdu. Keďže kurzy zaplatíme z daní ľudí, považujem za férové, aby firmy prispeli aspoň takto.

     
       

     

      Grzegorz Braun (NI). – Madam President, ladies and gentlemen, this is no crisis. This is the result of your socialist policies. Just like famous and notorious socialist leaders Hitler, Stalin, Roosevelt had their plans – five-year plans, four-year plans, New Deal – so you have your Green Deal, Blue Deal, your migration pacts and so on and so on.

    You just can’t stop designing people’s future, stop messing around with our lives and our property. You don’t understand that you’re the main obstacle. While the other nations are conquering space, you’re changing bottle caps.

    This is the dimension of your ability. So please stop. The European Union has to be overthrown because the only dimension in which you could and you should be active is stability and security. The majority of you here are warmongers. So, the European Union, the Euro cohorts, should be overthrown.

     
       

     

      Milan Mazurek (NI). – Vážená pani predsedajúca, pomaly každý deň tu hovoríme stále o tom istom. Európska únia zaostáva, naše štáty sa prepadajú do chudoby. mladí ľudia si nie sú schopní zadovážiť normálne dostupné bývanie, pretože ceny nehnuteľností sú extrémne vysoké. Ale s čím máte, kolegovia, najväčší problém, je pomenovať vinníka tohto stavu. Ten vinník ste práve vy, ktorí hlasujete za väčšinu týchto nezmyselných európskych politík. Vinníkom sú ľudia, ktorí podporili v tomto pléne greend deal, ktorý obmedzuje životy ľudí na tej najzákladnejšej bazálnej úrovni. Vy zavádzate emisné povolenky pre domácnosti, vy predražuje palivá, vy spôsobujete vašimi ekonomickými sankciami, že život v Európe sa jednoducho prepadáva k stále horším a horším atribútom. Potom sa divíte, že Čína, Amerika, Rusko Európskej únii unikajú? Vy jednoducho potrebujete prestať s týmito nezmyselnými plánmi a nechať ľudí žiť normálne slobodne prosperovať a vyvíjať sa tak, ako to bolo v Európe odveky, keď Európa bola práve nositeľom inovácií vo svete. Toto plénum, Európska komisia a Európska rada sú kľúčovým dôvodom, prečo sa dnes takýmto spôsobom prepadáme.

     
       

       

    (Fine della procedura “catch the eye”)

     
       

     

      Janusz Wojciechowski, Member of the Commission. – Madam President, honourable Members, thank you very much for all contributions in this very interesting, inspiring debate. Particularly, as Commissioner for Agriculture, I’d like to thank those speakers who mentioned the importance of skills and education in agriculture. The modern agriculture requires high skills. Education and multidisciplinary knowledge is needed in this difficult job.

    There was in many speeches the question to compare development between the European Union and the United States. Maybe this is a good opportunity to mention that, in agriculture, despite having two times less agricultural land and having 12 times smaller farms in the European Union, the value of agricultural production is higher in the EU than in the US.

    We have also a very positive trade balance with United States, because the value of exports is about EUR 28 billion and imports about EUR 11 billion.

    Thank you again for the discussion. Adapting skills policy to the changing society and the changing labour market is, by definition, a continuous process. The European Year of Skills has left an important legacy. This legacy is reflected in the political guidelines of President von der Leyen, committing to the establishment of a Union of Skills in her next mandate. Europe needs this overarching political strategy to close the skills gap, to strengthen our competitiveness and social well-being.

     
       

     

      Presidente. – La discussione è chiusa.

     

    4. Abuse of new technologies to manipulate and radicalise young people through hate speech and antidemocratic discourse (debate)


     

      Janusz Wojciechowski, Member of the Commission. – Madam President, honourable Members, respect for human dignity and fundamental rights, including equality, are founding values of the Union.

    Hate speech, inciting violence and hatred on the grounds of race, colour, religion or ethnic origin is illegal in the EU also when it happens online. Hate waves starting online lead to polarisation and radicalisation and many turn into violent attacks.

    We have seen that new technologies are abused to foster anti-democratic views. Young people are particularly targeted and exposed. We must help young people become more resilient to extreme views. For them and for our democracies, as youngsters are the citizens of tomorrow.

    The EU horizontal framework to create a safer online space is the Digital Services Act (DSA). Under the DSA, online platforms have to set up new and user-friendly mechanisms to flag illegal content, and they must better explain their content moderation decisions. They are also obliged to promptly inform law enforcement or judicial authorities of any suspicion of a criminal offence involving a threat to the life or safety of a person.

    The major platforms like TikTok, Instagram, Facebook, Snapchat or YouTube need to identify and assess any systemic risk their services may pose. They need to ensure that illegal contact content does not go viral easily, and adapt their algorithms to protect minors.

    During the last six months, the Commission has opened investigations against TikTok, Meta and Instagram related to the protection of minors. The industry has committed to a voluntary code of conduct on countering illegal hate speech. Signatories must swiftly review hate speech noticed within 24 hours and swiftly remove illegal content. An updated version of this code is in the process of being integrated in the Digital Services Act, thus becoming part of its risk mitigation approach.

    The response of hate speech needs to involve citizens at large. We made this clear in the Commission communication of December last year on combating hate. In June, the Commission organised a European Citizens’ Panel on tackling hatred in society and focusing on digital threats. It showed that dialogue can overcome polarisation. The Commission is committed to following up on the citizens’ recommendations.

    In the fight against disinformation, the EU supports the European Digital Media Observatory. Independent fact-checkers, researchers and media literacy experts detect, analyse and expose potential disinformation threats. A wide network of trusted vloggers are already active in identifying illegal hate speech. They will soon benefit from the trusted flagger mechanism in the DSA.

    In the fight against hate and disinformation, it is also crucial to promote transparency, democratic accountability, pluralism and free and vibrant democratic debates. Last year, to support young citizens in the exercise of their electoral rights, the Commission adopted recommendations to Member States. This led to the signature of a joint code of conduct by European political parties ahead of the recent European Parliament elections. Your parties agreed to encourage inclusive political discourse and committed to refrain from disseminating content that incites violence or hate speech.

    Young people constitute a vulnerable group which can be exploited through the misuse of political advertising. With the new Political Advertising Regulation, it will not be possible to target political ads to young people at least one year under the voting age. Education plays a vital role in equipping all young people with the competencies to think critically about the content and discourse they encounter online and to actively combat efforts to radicalise and divide.

    Democratic citizenship education should equip all citizens with specific competencies to build their resilience against disinformation. Digital literacy is a key prerequisite for informed, confident and empowered digital citizens. The digital education action plan frames the commitment to implementing high-quality and inclusive digital education.

    Honourable Members, radicalisation is a complex process. It starts when somebody embraces an ideology or belief that accepts violence to reach a political or ideological goal. Artificial intelligence is increasingly being used for the dissemination of violent and terrorist content online that can lead to radicalisation.

    To counter that, the Commission has taken a number of important actions. This year we launched the EU Knowledge Hub for Prevention of Radicalisation to support Member States in preventing violent extremism at national level. Terrorists and violent extremists misuse the internet to spread their message to intimidate, radicalise, recruit and facilitate their actions.

    The European Union Internet Forum brings together tech companies, Member States, law enforcement agencies, civil society organisations and academia. Together, they develop concrete actions to address violent extremism and terrorist content online.

    In 2021, we adopted a regulation allowing Member States to issue removal orders of terrorist content to online service providers to be acted upon within 24 hours. So far, more than 1 100 removal orders were already issued.

    Looking after the well-being of younger people and children is a duty that we all have. We need to support them and give them the means they need to stand strong in the face of polarisation and not to fall prey to radicalisation. We need to understand the broader impacts of social media on them, and it is with this in mind that President von der Leyen announced an EU-wide inquiry on this topic in her political guidelines.

    I look forward to listening to your views in this multidimensional challenge.

     
       

     

      Lídia Pereira, em nome do Grupo PPE. – Senhora Presidente, o discurso do ódio online pode ser virtual, mas as consequências são bem reais. Há estudos que mostram que, em países como Portugal, um em cada dez jovens é vítima deste tipo de violência – um círculo vicioso que se perpetua, com vítimas a tornarem‑se agressores, e que vai afetando gerações. Embora as ofensas sejam virtuais, elas, de facto, têm impacto nas vidas reais; e a história de Nicole Fox, Coco, é um exemplo duro, como o PPE bem demonstrou numa campanha recente.

    No entanto, homens e mulheres sofrem de forma diferente com este fenómeno. Em Portugal, um grupo de Telegram onde 70 000 participantes, pessoas, devassam a intimidade das mulheres e, em alguns casos, de familiares. Este caso merece a nossa condenação e consternação. Seja a participação, a presença ou a própria existência desse grupo merecem o nosso repúdio. Este é um exemplo de um caso, e permitam‑me utilizar a palavra, de um caso nojento e inaceitável, cuja resposta só pode ser uma: meios para investigação e mão pesada nas penas.

    Mas, este combate não pode transformar‑se numa censura digital. Não podemos, sequer, cair na tentação de privatizar a responsabilidade pela gestão do discurso público digital, ao responsabilizar apenas as plataformas digitais. Isso representaria uma censura privada. Precisamos de maior capacitação judicial, maior colaboração com as plataformas digitais, maior consciencialização dos utilizadores – especialmente dos mais jovens – na utilização e nos riscos das redes sociais.

    O buraco negro do mundo digital cresce. O respeito entre homens e mulheres alicerça a convivência, a concórdia e a harmonia em sociedade, e esse, sim, tem de ser real.

     
       

     

      Alex Agius Saliba, on behalf of the S&D Group. – Madam President, what is illegal offline should be illegal online. Tech firms often use every dirty trick that they can think of to maximise their profits and keep their audience hooked through sensationalist and harmful content. Unfortunately, violent extremists are using the same tricks, and with predatory algorithms, troll farms and bots spewing misinformation and disinformation, catchy memes and short clips are finding ways to recruit, socialise and target young people that are particularly vulnerable to online propaganda, hate speech and violent content.

    The problem is not a new one, yet for many years we have treated the web as the digital Wild West, where everything was allowed. To change this, we must ensure that companies running social media platforms are not exploitative and do not cause harm, and that they keep their services safe and free from hate speech, misinformation and malicious algorithmic activities. To this end, we need to properly enforce the legislation already in place, demand results and impose larger sanctions on tech giants that fall short.

    Second, we need media and digital competences enshrined to all educational levels and for all generations. This will help young people, in particular, to develop critical‑thinking skills and build resilience to violent, extremist and terrorist content online. Young people need to know their rights, distinguish facts from opinions, understand how societies work and should work, the value of privacy and the protection of their personal data, and how technologies and social media can be manipulated, and how to safeguard themselves against it.

    Last but not least, we need to address the root causes of radicalisation, since there is no single cause or pathway into radicalisation and violent extremism. The digital technologies might be a facilitator, but they are rarely the cause. Radicalisation doesn’t happen overnight and, as a community, we all have a crucial role to play in ensuring our young people remain safe.

     
       

     

      Jorge Buxadé Villalba, en nombre del Grupo PfE. – Señora presidente, jamás en la historia de Occidente el ser humano ha sido sometido a este nivel de censura y tortura intelectual, convirtiendo al criminal en víctima y a la víctima en criminal.

    Publicar un tuit preguntando cuál es la nacionalidad del último asesino o violador en Barcelona no es un crimen; no es un crimen denunciar que las mujeres han perdido 900 medallas en competiciones deportivas porque hombres que dicen ser mujeres les han arrebatado los triunfos injustamente; no es un crimen publicar que tu novia se siente insegura desde que el presidente de turno de tu región decidió abrir un centro de inmigrantes ilegales en tu barrio; no es un crimen denunciar los asesinatos masivos de inocentes por parte de comunistas en Paracuellos o en Katyn; no es un crimen publicar la foto de un feto triturado en una clínica abortista; no es un crimen contar que España civilizó a América, acabó con el canibalismo y construyó hospitales, templos y universidades.

    Pero sí es un crimen introducir algoritmos para dirigir al usuario hacia los mensajes que los millonarios quieren que veas en Telegram o en Facebook; bloquear y suspender la cuenta de Donald Trump; ofrecer a Elon Musk —como hizo la Comisión Europea— un acuerdo secreto e ilegal para censurar el discurso político a cambio de no ser multado; detener a decenas de británicos por convocar en redes sociales manifestaciones contra la inseguridad y la inmigración ilegal; utilizar el Centro para Contrarrestar el Odio Digital del Reino Unido para matar la red social de Elon Musk; o, como está haciendo Kamala Harris, pagar a falsos verificadores de noticias para desinformar y cancelar.

    Así que, jóvenes, seguid haciéndolo: contad lo que vivís, denunciad a los responsables y sentíos libres para expresar lo que os dé la puñetera gana. La libertad de expresión es la libertad de los patriotas.

     
       

     

      Piotr Müller, w imieniu grupy ECR. – Pani Przewodnicząca! Nie ma wątpliwości co do tego, że powinniśmy zajmować się ochroną przed treściami, które mogą być szkodliwe, przed treściami, które mogą wpływać źle na społeczeństwo, a w szczególności na wychowanie dzieci.

    Natomiast w tej Izbie i również w Komisji Europejskiej ten temat jest wykorzystywany bardzo często do tego, aby podjąć kroki idące o wiele dalej. Kroki, które powodują, że ogranicza się możliwość swobody wypowiedzi. Kroki, które powodują, że wprowadza się prewencyjną cenzurę. Wreszcie kroki, które powodują, że pada propozycja wycofania się z możliwości szyfrowania danych, szyfrowania komunikacji w takich komunikatorach jak Signal, WhatsApp, Messenger i tak dalej.

    Komisja Europejska ostatnio przedstawiła jeden z projektów, który zakłada między innymi właśnie likwidację szyfrowanej komunikacji i prewencyjne skanowanie treści obywateli. Szanowni państwo, to jest chyba wersja chińskiego internetu, a nie europejskiego!

    Ja od Komisji Europejskiej domagam się jasnej deklaracji, że projekt Chat Control pod kątem likwidacji szyfrowania zostanie wycofany. To jest pierwsza rzecz. I domagam się wreszcie odpowiedzi na pytanie, czy proponowaliście nielegalne porozumienia pod adresem X, pod adresem Elona Muska?

     
       

     

      Laurence Farreng, au nom du groupe Renew. – Madame la Présidente, Monsieur le Commissaire, depuis peu la propagande néonazie est devenue cool. Ça s’appelle le «pop fascisme», ça fait florès sur les réseaux sociaux, c’est du prêt-à-penser pour les jeunes. Il y a quelques semaines, j’ai été profondément choquée en découvrant un clip et un jeu vidéo sur le thème de la remigration créé par la branche jeunesse de l’AfD, parti allemand d’extrême droite dont quatorze députés siègent ici, dans ce Parlement. C’est pourquoi j’ai demandé ce débat. Les images, créées par intelligence artificielle, utilisent tous les codes de la propagande nazie. On y voit des personnes blanches, blondes, aryennes, qui dansent sur de la musique techno en refoulant dans des avions des personnes racisées. Le refrain? «Nous les renvoyons tous!» C’est intolérable.

    Si les œuvres racistes envahissent l’internet, je note ici une escalade, parce que ce clip et ce jeu vidéo ont été créés par un parti politique – l’AfD. On peut certes s’abriter derrière les législations. Oui, nous avons le règlement sur les services numériques pour rendre les plateformes responsables des contenus qu’elles hébergent – et notamment TikTok, quand on s’adresse aux jeunes. Oui, il faut rendre ces plateformes responsables, mais, à ma connaissance, cette vidéo circule toujours sur X.

    Alors qu’en France, par exemple, un jeune sur cinq ne sait pas ce qu’est la Shoah, il faut aller plus loin et condamner effectivement tous les contenus racistes, en commençant par sanctionner les ennemis de la démocratie qui sont déjà parmi nous.

     
       


     

      Pernando Barrena Arza, en nombre del Grupo The Left. – Señora presidenta, como todo cambio disruptivo, las enormes ventajas derivadas de la utilización de las nuevas tecnologías también tienen otra cara, en este caso proporcionada por la deshumanización que permite el anonimato. El crecimiento de las posiciones de ultraderecha tiene mucho que ver con la manipulación online para difundir mensajes de odio y antidemocráticos, desde los deepfakes a la mera difusión masiva de información falsa y difamante: todo vale. Y hasta las nuevas mayorías en este Parlamento tienen mucho que ver con la utilización de esos recursos oscuros. Creo que ustedes ya me entienden.

    Es especialmente grave que las plataformas que permiten este comportamiento estén en manos de magnates que las explotan en clave pura y dura de negocio. Son cuentas empresariales que no tienen ningún interés ni responsabilidad social y a quienes no interesan ni la veracidad ni el interés público.

    Existe una necesidad de nuevas plataformas, nuevas herramientas moderadas en contenidos veraces y legítimos, por encima de la rentabilidad y de la cuenta de resultados, que prioricen el interés público. No hay iniciativa privada que asegure el interés público; esto solo puede ser garantizado desde el ámbito público y, por lo tanto, emplazamos a la próxima Comisión a que nos haga llegar una reflexión sobre cómo desde ese ámbito público europeo se pueden crear nuevas plataformas que superen el modelo de negocio actual y garanticen la utilidad pública.

     
       

     

      Petras Gražulis, ESN frakcijos vardu. – Sveiki, esu paskutinis Sovietų Sąjungos politinis kalinys. Dėl to, kad kovojau prieš komunizmą, prieš šią ideologiją, buvau sovietiniuose lageriuose kalinamas. Šiandien, atgavus nepriklausomybę Lietuvai, ir vėl matosi kuriama nauja ideologija – genderistinė ideologija, baisesnė už komunistinę ideologiją. Ir tie, kurie gina krikščioniškas vertybes, pasisako prieš genderizmą, jie yra persekiojami Europos Sąjungos, jie yra teisiami. Neduok Dieve, „Facebook’e“ ar socialiniame tinkle išsakysi savo krikščionišką poziciją, kad tai yra nusikaltimas, homoseksualizmas. Tu būsi teisiamas. Ir man Lietuvoje iškelta byla, kad skaičiau apaštalo Pauliaus laišką romiečiams. Kur mes einame? Ta pati diktatūra, sukurta Europoje, tik ne komunizmo, o kažkokio genderizmo ir prisidengiant žmogaus teisių pagrindu. Mes einame, Europa, į susinaikinimą. Kadangi atsisakome savo vertybių, priimame kažkokią tai iškrypusią ideologiją. Kai atėjo galas Sovietų Sąjungai, ateis galas ir Europos Sąjungai, jeigu ji nekeis savo ideologijos ir nedraus žodžio laisvo, o krikščionims išpažinti ir reikšti savo tikėjimą.

     
       

     

      Ελεονώρα Μελέτη (PPE). – Κυρία Πρόεδρε, αγαπητοί συνάδελφοι, στη χώρα μου, την Ελλάδα, πρόσφατα, μια ομάδα ανήλικων κοριτσιών οργάνωσαν μέσω διαδικτυακής πλατφόρμας τον ξυλοδαρμό μιας συμμαθήτριάς τους. Τα ηχητικά μηνύματα και το οπτικό υλικό που είδαν το φως της δημοσιότητας ήταν σοκαριστικά. Το βίντεο του ξυλοδαρμού έγινε viral. Το κορίτσι κατέληξε στο νοσοκομείο και οι φίλοι της παρακίνησαν τον κόσμο σε εκδίκηση μέσω ρητορικής μίσους, δημοσιοποιώντας στα μέσα κοινωνικής δικτύωσης τα στοιχεία των δραστών. Στο Βέλγιο ένας άνδρας αυτοκτόνησε γιατί εικονικός συνομιλητής, προϊόν τεχνητής νοημοσύνης, τον έπεισε να θυσιάσει τη ζωή του για να σταματήσει η κλιματική αλλαγή. Σε πολλά κράτη μέλη οι ίδιες οι πλατφόρμες χρησιμοποιούνται για να πολώσουν και να στρατολογήσουν νέους για τρομοκρατικές επιθέσεις.

    Είναι ξεκάθαρο πως οι νέες τεχνολογίες αποτελούν πλέον ένα νέο κανάλι διάδοσης εξτρεμιστικών απόψεων και στρατολόγησης ατόμων σε εγκληματικές πράξεις. Η Ευρώπη πρέπει να αντιδράσει και να δράσει. Έχει γίνει μια καλή αρχή με τους κανόνες που περιγράφονται στην πράξη για τις ψηφιακές υπηρεσίες. Χρειάζεται όμως και άλλη πίεση. Οφείλουμε να ποινικοποιήσουμε τη ρητορική μίσους. Χρειάζεται η ανωνυμία του διαδικτύου να αίρεται όταν αυτό είναι απαραίτητο. Πρέπει να βρεθεί ένας τρόπος να δαμάσουμε τη σκοτεινή πλευρά της τεχνητής νοημοσύνης. Είναι ανάγκη να ελέγχεται η πρόσβαση των παιδιών στο διαδίκτυο και να απαγορεύεται ρητά σε συγκεκριμένες παιδικές ηλικίες για το καλό όλων μας. Στη χώρα μου, η κυβέρνησή μας έχει ήδη ενσωματώσει την πράξη για τις ψηφιακές υπηρεσίες. Η Επιτροπή όμως οφείλει να ελέγχει την ενσωμάτωση του κανόνα σε όλα τα κράτη μέλη.

    Οι νέες τεχνολογίες έχουν να προσφέρουν πολλά καλά στην ανθρωπότητα, αλλά αυταπόδεικτα μπορούν να μετατραπούν σε σκληρά όπλα, ικανά να προάγουν τον τρόμο, το ψέμα, το φόβο, το μίσος, τη βία. Είναι στο χέρι μας αυτό να αλλάξει.

     
       

     

      Sabrina Repp (S&D). – Frau Präsidentin! Neue Technologien bieten große Chancen: Sie eröffnen den Zugang zu einer Welt des Wissens und der Vernetzung. Doch es gibt auch eine Kehrseite: Die Macht der großen digitalen Plattformen ist mittlerweile überdimensional gewachsen. Es beunruhigt mich, dass wir uns auf die moralischen Vorstellungen der wenigen Milliardäre verlassen, die diese Plattformen kontrollieren. Wir sollten uns nicht von der Tageslaune eines Elon Musk, eines Mark Zuckerbergs oder gar eines Wladimir Putins abhängig machen.

    Der Einfluss dieser Plattformen auf unsere Demokratie ist unübersehbar. Der Brexit war nur ein Vorgeschmack dessen, was passieren kann, wenn Algorithmen entscheiden, welche Inhalte wir sehen. Je radikaler der Inhalt, desto mehr Klicks bekommt er. Und das Ergebnis: eine verzerrte Realität, in der Angst, Hass und Misstrauen gegenüber unseren demokratischen Institutionen genährt wird. Das machen sich auch Abgeordnete der AfD hier aus dem Europäischen Parlament zu eigen: Wenn sie beispielsweise auf TikTok eine klare Abneigung gegenüber Immigration, Islam oder queeren Rechten zeigen, werden häufig Fake News und Hassreden verbreitet.

    Besonders betroffen von diesen Entwicklungen sind junge Menschen. Oft fehlt das Bewusstsein, um zwischen wahrer Information und gezielter Desinformation zu unterscheiden. Die psychologischen und emotionalen Auswirkungen von Hassrede und Hetze auf Jugendliche sind enorm; sie gefährden ihr Vertrauen in die Gesellschaft, in die Demokratie und in ihre Zukunft. Auch das sehen wir beim Wahlverhalten junger Menschen bei den Ost-Landtagswahlen in Deutschland: In Thüringen setzten laut der Forschungsgruppe Wahlen 35 % der Menschen zwischen 18 und 29 Jahren ihr Kreuz bei der AfD.

    Wir müssen digitale Plattformen daher stärker in die Pflicht nehmen. Es braucht klare Regeln und effektive Mechanismen, um hasserfüllte und antidemokratische Inhalte schnell zu erkennen und zu entfernen. Zudem müssen wir zivilgesellschaftliche Organisationen, die gegen eine solche Radikalisierung kämpfen, stärker unterstützen und gemeinsam Hassrede und Fake News entgegentreten.

    Das Internet soll ein Ort des Wissens und des Miteinanders bleiben und kein Raum, der unsere Demokratie untergräbt.

     
       


     

      Ивайло Вълчев (ECR). – Уважаеми колеги, безспорно трябва да се борим срещу радикализацията в интернет, но аз бих казал, че трябва да осъждаме всяка една дискриминация и радикализация.

    Да, расизмът и ксенофобията са недопустими, но нека със същия плам да осъждаме и радикалните действия на зелени активисти, които застрашават обществения ред и сигурността. Заливането на културно наследство с боя, блокирането на пътища и летища не могат да бъдат приемливи форми на протест. А твърде често виждаме как те биват нормализирани.

    От друга страна, скъпи колеги, технологиите сами по себе си не могат да бъдат винени за процеса на радикализация на младите там, където това се случва. Общественият дебат в последните десетилетия прие твърде рязък идеологически завой наляво. Това означава, че днес политически позиции, например срещу еднополовите бракове или срещу нелегалната миграция, oт допустими в обществения дебат преди години сега се обявяват за радикални. И ако това имате предвид под антидемократични изказвания, то аз ви поздравявам. Джордж Оруел би се гордял с вашия новговор.

     
       

     

      Христо Петров (Renew). – Уважаеми колеги, ние тук си говорим за нови технологии и за социални мрежи и казваме, че те са част от живота на младите хора, но за много млади хора социалните мрежи не са част, те са целият им живот и това е проблем. Проблем е, защото освен загубата на време, човек става много по-лесно жертва на пропаганда, на радикализация или проводник на реч на омразата.

    Замислете се колко от вас в тази зала, ако имаха шанса да се върнат в своето детство или в своята младост, биха прекарвали времето си в социалните мрежи. Аз вярвам, че решението на проблема, който обсъждаме, е в образованието, в образование, което да подготвя младите хора за съвременната реалност и да им обясни една проста истина, че няма нито един успешен човек на тоя свят, който да прекарва основното си време в социалните мрежи.

     
       

     

      Alexandra Geese (Verts/ALE). – Frau Präsidentin, Herr Kommissar, sehr verehrte Kolleginnen und Kollegen! Nazipropaganda, rechtsextreme Hetze, Hass auf Frauen oder extremistischer Salafismus: auf TikTok findet man das alles. Aber welcher junge Mensch sucht denn aktiv nach solchen Inhalten? Fast niemand. TikTok sorgt dafür, dass sie sie trotzdem sehen, denn die Plattform spült grenzwertige Videos in die Timeline. Und wer aus Neugier oder sogar Entsetzen den Fehler macht, sie bis zu Ende zu schauen oder gar zu kommentieren, vielleicht auch kritisch, der bekommt immer wieder den gleichen Content vorgesetzt und landet in einem rabbit hole.

    Und wenn man überlegt, dass im Durchschnitt Nutzer 1,5 Stunden am Tag auf TikTok verbringen, dann kann man sich vorstellen, was passiert, wenn jedes zweite oder dritte Video extremistisch ist: Dann entsteht ein Weltbild, das mit der realen Welt praktisch nichts mehr zu tun hat. Und so werden Menschen radikalisiert – islamistisch, rechtsradikal, antisemitisch oder frauenfeindlich.

    Mit Technologie hat das nichts zu tun, aber ganz viel mit Geschäftsmodell. Aber glücklicherweise können wir handeln. Mit dem Digital Services Act können wir diese Radikalisierungsalgorithmen so ändern, dass Nutzerinnen und Nutzer ihre Inhalte selbst auswählen können und dass sie ihnen nicht vorgesetzt werden. Und das ist jetzt unsere dringlichste Aufgabe, um die Demokratie, aber auch die Sicherheit unserer Bürgerinnen und Bürger in Europa zu schützen.

    (Die Rednerin ist damit einverstanden, auf eine Frage nach dem Verfahren der „blauen Karte“ zu antworten.)

     
       

     

      Sebastian Tynkkynen (ECR), sinisen kortin kysymys. – Arvoisa puhemies, olen puhujan kanssa aivan samaa mieltä siitä, että natsipropagandaan pitää puuttua. Se on väärin, ja olitte huolissanne siitä, kuinka se lisää antisemitismiä. Minä ihmettelen sitä, että te kuitenkin jätätte sen puolen mainitsematta, mikä on tällä hetkellä suurin syy antisemitismiin niin TikTokissa kuin muissa kanavissa. Nämä videot, joissa huudetaan, että “From the river to the sea”, eli Hamas-symppaaminen, se leviää tällä hetkellä. Miksi jätitte tämän asian mainitsematta?

     
       

     

      Alexandra Geese (Verts/ALE), blue-card answer. – You might have noticed from my speech, I am German and I know that the biggest source of antisemitism has not come from Palestine, but from Europe. I have studied my history.

    As far as current antisemitism is concerned, I don’t care what the source is. I don’t care if it’s far right, you know, or whether it is Muslim. It’s not important. The important thing is that we combat it and that we protect Jews. This is what we need to do on the internet and that means going against terrorist or clearly illegal content.

    But as far as legal content is concerned – and a lot of content is legal – having opinions about the way Israel is defending itself, that is legal if it’s not antisemitic. And this is where we need to change the algorithms to make sure that people access content they actually want to see and not the content that TikTok, that the platform, wants them to see, pushing them into a rabbit hole, because this is what drives radicalisation.

     
       

     

      Ivan David (ESN). – Paní předsedající, dámy a pánové, od doby, kdy se po celém dříve demokratickém světě zmocnili všech nejvýznamnějších médií miliardáři, aby manipulovali veřejností, jsou jedinou šancí demokracie, tedy vlády lidu, sociální sítě a internet. Do konce minulého století byli světovládní darebáci v klidu, protože nebylo možné veřejně se bránit pomluvám a jiným lžím. Chápu, že hluboký stát nese nelibě omezení svého monopolu na ovládání veřejného mínění.

    Ale důrazně připomínám článek 17 Listiny základních práv a svobod, který zní: „Každý má právo vyjadřovat své názory, jakož i svobodně vyhledávat, přijímat a rozšiřovat ideje a informace bez ohledu na hranice státu. Cenzura je nepřípustná.“ Je marné zakazovat nenávist, kterou vyvolávají zločiny.

     
       

     

      Milan Mazurek (NI). – Vážený pán predsedajúci, pán komisár, aj Mao Ce-tung a súdruh Stalin by boli hrdí na to, čo ste tu vo svojom prejave povedali. Veď to je príšerné, do akej totality sa Európska únia pod vaším vedením aktuálne uberá! Viete, kto sú skutoční extrémisti? Tí, ktorí tu nariadili ľuďom žiť pod nezmyselným green dealom, ktorý im ničí ich životnú úroveň, vďaka ktorej si normálni mladí ľudia nemôžu kúpiť ani len nový dom, v ktorom by zakladali svoje rodiny. Extrémisti sú tí blázni, ktorí sa lepia o chodníky a asfalty, aby bránili ľuďom, aby mohli autami prísť normálne domov. Extrémisti sú tí, ktorí do Európy vozia milióny nelegálnych imigrantov a pomáhajú im v rozpore so zákonom prekračovať hranice našich štátov. To sú skutoční extrémisti, nie vlastenci, nie patrioti, nie tí, ktorí milujú svoje štáty. Tí, ktorí milujú svoje krajiny, ktorí chcú chrániť svoje deti a svoje rodiny pred nebezpečenstvom, ktoré im aktuálne hrozí. My chceme zachovať svet a Európu slobodnú, a preto sa potrebujeme zbaviť ľudí, ako ste Vy, vo vedení Európskej komisie. Potrebujeme návrat k zdravému rozumu, a keď to pre Vás bude znamenať radikalizmus, tak sa k tomu hrdo hlásim, pretože sloboda je to, čo Európska únia aktuálne potrebuje.

     
       


     

      Zoltán Tarr (PPE). – Tisztelt Elnök Asszony! Kedves kollégák és kedves fiatalok, akik nagyon sokan ültök fönt a lelátókon. Örülünk, hogy itt vagytok. Én azt gondolom, hogy sokan egyetérthetünk abban, hogy nagyon sok jó lehetőséget kínálnak nekünk az új digitális technológiák, az új technológiák. Nem is szeretném démonizálni őket. Ugyanakkor azt is tudjuk, hogy ezek az eszközök sokszor a politikai manipulációra és radikalizálódásra használódnak a fiatalok között, tovább súlyosbítva az álhírek terjedésével és az összeesküvés-elméletek terjedésével ezeken az eszközökön keresztül.

    A tartalomgyártók és a platformok üzemeltetői hatalmas felelősséggel tartoznak ebben a helyzetben. Alapvető kötelességük az, hogy a platformjaikon megjelenő tartalmakat jobban monitorozzák, és felelősségteljesebben szűrjék azért, hogy a fiatalok, akik most is itt vannak, és esetleg néznek bennünket, minél kevesebb káros tartalommal találkozzanak.

    Az a megoldás – azt gondolom –, hogy a tudatos médiahasználatot erősítsük az oktatásban, nem pedig a modern média kizárása az iskolákból. A meglévő szabályok, törvények alkalmazása a tagállamokban, valamint a nagy online platformok magatartási kódexeinek folyamatos fejlesztése és monitorozása.

    Meg kell akadályoznunk, hogy a gyűlöletbeszéd és az antidemokratikus propaganda és a politikai manipuláció terjedjen a gyermekek között, és ebben nekünk is, képviselőknek is nagy felelősségünk van. Az, hogy mi hogy szerepelünk, mit mondunk, óriási jelentőséggel bír.

     
       

     

      Francisco Assis (S&D). – Senhora Presidente, Senhor Comissário, a tolerância ilimitada leva ao desaparecimento da tolerância. Se estendermos a tolerância ilimitada mesmo aos intolerantes e se não estivermos preparados para defender a sociedade tolerante do assalto da intolerância, então os tolerantes serão destruídos e a tolerância com eles. Estas palavras são da autoria de um dos maiores filósofos democrato‑liberais do século XX, Karl Popper, e constam da sua obra conhecida A Sociedade Aberta e os seus Inimigos.

    E é precisamente disto que estamos a falar. Popper tanto contestou os totalitarismos de direita como os totalitarismos de esquerda. Defendeu claramente o primado da democracia liberal e tinha consciência de uma coisa: que o único limite que se pode estabelecer é o limite em relação àqueles que, sendo intolerantes, põem em causa os pressupostos básicos e fundamentais da convivência cívica democrático‑liberal. Isso, infelizmente, hoje, está a suceder em grande escala nas redes digitais, afeta vários segmentos da população e tem um efeito particularmente nocivo junto dos mais jovens.

    A resposta para isso passa por duas coisas: por um lado, por uma melhor regulação das redes sociais, em nome da defesa da liberdade – não é em nome da atrofia da liberdade, como alguns aqui pretendem afirmar, é em nome da defesa dos valores da liberdade –, e, em segundo lugar, pela promoção de um pensamento crítico, autónomo, livre e consciente em cada jovem europeu. É esse o caminho que nós temos de seguir.

     
       

     

      Susanna Ceccardi (PfE). – Signora Presidente, onorevoli colleghi, l’Unione europea sta trasformando il contrasto d’odio online in un cavallo di Troia per soffocare la libertà di espressione sul web.

    È vero, le nuove tecnologie possono essere usate per diffondere offese, minacce e odio. Ne so qualcosa: ogni giorno ricevo minacce dai fondamentalisti islamici o dai “leoni da tastiera”. Ma la soluzione non è imbavagliare chi esprime idee scomode e soffocare il dissenso.

    Il Commissario Breton ha tentato di oscurare il dibattito tra Elon Musk e Trump. È questa la vostra democrazia? La democrazia vive di dialettica. Il pensiero occidentale vive sulla libertà, è fondato sulla libertà di pensiero. Se noi soffochiamo la libertà di pensiero, soffochiamo l’Occidente, soffochiamo ciò che siamo, soffochiamo l’Europa e quindi l’Unione europea sta tradendo se stessa, sta tradendo tutta la filosofia del pensiero occidentale.

    Con questo regolamento sui servizi digitali noi mettiamo il bavaglio alle persone, soprattutto a quelle idee scomode che non piacciono alla sinistra woke, che non piacciono alla sinistra perbenista che in queste aule fa tanta teoria, è brava ad insegnare a tutti ma non sa bene ancora su che pilastri si regge l’Europa.

     
       

     

      Paolo Inselvini (ECR). – Signora Presidente, onorevoli colleghi, è vero che le nuove tecnologie, come i social media, hanno un’enorme influenza sulle menti dei giovani. Tuttavia, la radicalizzazione che subiscono è anche quella promossa dalla sinistra, che parla di libertà ma spesso non la pratica nei fatti.

    Ogni giorno assistiamo a bombardamenti mediatici che esaltano teorie LGBT, il fanatismo green e una società liquida, ideologie contro l’identità e la comunità, che promuovono l’individualismo e discriminano chi difende con fermezza i principi della nostra civiltà. Guardate il caso di Päivi Räsänen, accusata di incitamento all’odio solo per aver citato la Bibbia, o alla censura nei confronti di coloro che osano contrastare l’immigrazione incontrollata, difendere la vita e la famiglia o criticare il pensiero unico.

    Ecco, questo è davvero antidemocratico. Il pensiero unico che la sinistra vuole imporre al mondo, impedendo a chi è fuori dal coro di affermare le proprie idee, tacciandolo di fomentare odio solo per estrometterlo dal dibattito.

    Avete ragione, dobbiamo proteggere i giovani da questo mondo falso e artificiale che qualcuno ha costruito intorno a loro per controllarli meglio. Facciamoli uscire da questa gabbia: riportiamoli a rivivere la bellezza vera della vita.

     
       

     

      Irena Joveva (Renew). – Gospa predsednica! Zgodovina se ponavlja. To je vselej moja prva misel ob spremljanju razvoja uničujoče propagandne retorike, ki jo vedno bolj aktivno uporabljajo skrajneži.

    Namen je jasen: razdvajanje, destabilizacija demokratične družbe. To isto sovražno ideologijo z istimi idejami in istim načinom komuniciranja smo nekoč, po bolečih lekcijah, potisnili skrajno na rob. Toda zdaj so se z roba uspešno prikradli nazaj v središče, kjer poleg uporabe umetne inteligence za širitev svoje ideologije sočasno z dezinformacijami diskreditirajo vse, ki ne mislijo tako kot oni.

    Gre za usklajeno, dobro financirano, nadnacionalno propagandno kampanjo za širitev in uveljavitev avtoritarnosti, če ne še česa hujšega, v Evropi. V času porasta nacizma so to počeli s prevzemom radiev, danes to počnejo prek družbenih omrežij.

    In prav imajo. Izbira je res naša. Ali torej res želite, da to spet postane prevladujoča retorika in normalna? Jaz ne.

     
       

     

      Lena Schilling (Verts/ALE). – Frau Präsidentin, liebe Kolleginnen und Kollegen! Eigentlich wollte ich anders anfangen, aber wir haben gerade ein Lehrbeispiel gesehen vom Kollegen Mazurek, der erklärt hat, wie man eine Rede hält, die man dann auf Social Media stellt, wo man rechtsextremes Gedankengut verbreitet, manipuliert und unsere Gesellschaft radikalisieren kann. Ja, es sind Autokraten und Rechtsextreme, die weltweit Social Media dafür einsetzen, Wahlen zu beeinflussen, dazu einsetzen, Gesellschaften weiter zu spalten, und dazu einsetzen, Fake News zu verbreiten. Und er ist damit nicht alleine, aber danke für dieses perfekte example.

    Donald Trump wirft Migranten vor, Haustiere zu essen, Moskauer Propagandafirmen wiederholen millionenfach Lügen – 33,9 Millionen Kommentare, 39 899 Inhalte, darunter tausende Videos, Memes und Grafiken innerhalb der letzten vier Monate: Das ist mittlerweile Teil unserer politischen Praxis. Und ich sage Ihnen etwas: Wir junge Menschen, die Social Media nutzen, die damit aufwachsen, wir werden uns das auch irgendwann nicht mehr gefallen lassen, dass unsere Plattformen als geopolitischer Spielball instrumentalisiert werden. Sie sollten dazu dienen, dass wir uns ausdrücken können, dass wir miteinander kommunizieren können, und nicht von politischen, verschiedenen, Mächten hier instrumentalisiert werden.

    Zu diesem Punkt: Wir werden daran arbeiten, dass es klare Regeln gibt, und Menschen darüber informieren, welcher Blödsinn ihnen hier vorgesetzt wird.

     
       

     

      Christine Anderson (ESN). – Frau Präsidentin! Heute beklagen Sie nun also den Missbrauch neuer Technologien, der angeblich unsere Jugend radikalisiert. Dabei ist es doch Ihre radikale Politik, die die Menschen spaltet und aufhetzt. Während Corona haben Sie Teile des Volkes zu Feinden erklärt, Ungeimpfte zu Sündenböcken gemacht. Stimmen zur Schädlichkeit der mRNA-Injektion wurden wegzensiert, damit Ihre Impfpropaganda unwidersprochen blieb.

    Regierungskritische Stimmen unterdrücken Sie, während Sie geflissentlich wegschauen, wenn auf YouTube, TikTok und Co. übelster islamischer Antisemitismus gefeiert wird und sich diese frauenfeindliche, menschenverachtende und totalitäre Ideologie des Islams durch unsere Gesellschaft frisst. Die vermeintliche Radikalisierung, die Sie bekämpfen wollen, ist die längst überfällige Antwort auf die Radikalität Ihrer Politik, dieser unsäglichen, illegalen Masseninvasion.

    Hören Sie doch endlich auf, sich lächerlich zu machen! Anstatt Kritiker zu zensieren, nehmen Sie die Kritik ernst und machen Sie endlich wieder Politik für das eigene Volk, dann gibt es auch keine Radikalisierung unterm Volk!

     
       

     

      Ondřej Dostál (NI). – Paní předsedající, děkuji za otevření tohoto tématu. My žijeme v zemi, kde provládní aktivisté na sítích přáli smrt či covidový koncentrák každému, kdo odmítal nosit roušky v lese nebo kdo chtěl večer běhat v parku. Žijeme v zemi, kde se netrestá tvrzení, že staří lidé volící konzervativní levici musí vymřít, aby zvítězily ty správné progresivní síly, že staří jsou hloupí a nevzdělaní a měli by volit pod dohledem, kde se natočil klip „Přesvědč bábu, přesvědč dědka“. Žijeme v zemi, kde vláda na strategickou komunikaci najala plukovníka armády, hrubého a sprostého, který nazývá oponenty sviněmi a šmejdy, a kde i usměvavé poslankyně tohoto parlamentu mluví o opozičních poslancích jako o košťatech, paní Nerudová, nebo o špínách, paní Gregorová.

    Žijeme v zemi, kde britská či americká ambasáda včetně National Endowment for Democracy financují neziskové organizace, které cíleně dehonestují oponenty provládního narativu. To všechno se promítá do extrémního prostředí na sociálních sítích, kde je demokratická diskuse takřka nemožná. Starší Češi jsou díky historii odolní vůči propagandě, ale mladí se bohužel radikalizují. Rád bych proto z tohoto místa vyzval českou vládu, ambasády cizích velmocí a kolegy poslance EP, aby se šířením hate speech skončili.

     
       

     

      Manuela Ripa (PPE). – Frau Präsidentin! Wir sprechen über eine neue Sucht: Empfehlungsalgorithmen haben die meisten Jugendlichen auf Social Media fest im Griff. Das heißt: Schauen sie sich ein Video an, bekommen sie unaufgefordert immer weitere, teils immer extremere Inhalte vorgesetzt. Den Jugendlichen bleibt oftmals keine Wahl, sie kommen davon nicht mehr los. Nicht nur, dass die Suchtgefahr steigt, Hassbotschaften und Hetze können sie auch radikalisieren – vor Wahlen ist dies sogar demokratiegefährdend.

    Gut, dass die Kommission hier gegen abhängig machende Algorithmen den Digital Services Act anwendet, aber das reicht nicht. Die Berichtspflicht der Plattformen muss qualitativ verbessert werden, am besten, indem sie ihre Berichte durch externe Prüfer prüfen lassen. Weiterführende Videos sollten nur angezeigt werden, wenn man tatsächlich auch draufgeht. In Schulen muss digitale Kompetenz vermittelt werden, sodass sie lernen, Informationen und Quellen kritisch zu hinterfragen. Sie sollten einen KI-Führerschein machen. Dass Schüler mittels KI ihre Hausaufgaben machen dürfen, ist sicherlich keine Lösung.

    Achten wir auf unsere Kinder und Jugendlichen, sie sind unsere Zukunft!

     
       


     

      Veronika Cifrová Ostrihoňová (Renew). – Vážená pani predsedajúca, ďakujem veľmi pekne, dobrý deň – a začnem osobným presvedčením: mladí ľudia nie sú ani horší, ani lepší, ani radikálnejší ako iní, ale dnes sa stretávajú so silou, ktorej v takejto miere nemusela čeliť žiadna iná generácia predtým, a tou je online svet. Ak si niekto myslí, že sa tam veci dejú náhodou, tak sa mýli. Algoritmy sociálnych sietí nielen pre mladých vytvárajú pasce, do ktorých môžu ľahko spadnúť, a internet už dávno nie je iba slobodný priestor, ale je to miesto, kde sa šíri radikalizmus, kde je priestor pre trestné činy a pre násilie a našou úlohou tu je urobiť všetko pre to, aby sme tieto pasce odstránili. Nie ste dobrá firma, ak obsah, ktorým kŕmite mladých, je toxický. A toto je presne dôvod, prečo tak veľmi potrebujeme poctivo dodržiavať zákon o digitálnych službách. Nástroje na bezpečnejší internet naozaj máme, tak ich využime. Máme na to teraz šancu. Mladým ľuďom totiž ako spoločnosť vieme dať oveľa viac, ako dnes od nás dostávajú.

     
       

     

      Jaume Asens Llodrà (Verts/ALE). – Señora presidenta, el señor Buxadé ha hablado de la libertad de los patriotas y de las manifestaciones legítimas en el Reino Unido contra la inmigración, pero seguro que ustedes se acuerdan: eso no fueron manifestaciones pacíficas, fueron disturbios racistas donde se apaleó y apuñaló a personas vulnerables y se quemaron casas. ¿Y por qué? Porque difundieron un bulo —con la ayuda de Elon Musk— atribuyendo falsamente unos asesinatos a una persona inmigrante cuando, en verdad, el autor era inglés. Y en España intentaron hacer lo mismo.

    Señor Buxadé, ustedes están en guerra con la verdad. Y el problema es que mucha gente —sobre todo jóvenes— se instala en un mundo paralelo, y crecen el miedo, el odio, las agresiones; porque ustedes, cuando señalan a los que vienen con patera, huyendo de la guerra o del hambre, es para que no veamos a los de arriba, a las élites, a los que los explotan, a los responsables de las crisis.

    Por eso, señor comisario, necesitamos una legislación europea que nos proteja de la extrema derecha, de sus bulos, como el que hoy el señor Buxadé ha dicho.

    La mentira destruye la democracia, el derecho a tener información veraz y, por tanto, a formarnos una opinión y poderla expresar. Eso no es censura, como ha dicho la extrema derecha; si no hay verdad, no hay libertad: hay opresión. Y como dijo Camus: «La peor epidemia no es biológica, sino moral». La epidemia de la mentira.

     
       


     

      Łukasz Kohut (PPE). – Pani Przewodnicząca! Media społecznościowe bardzo szybko stały się piątą władzą i jak każda władza także i ta w niewłaściwych rękach staje się bronią. Internet, a później media społecznościowe miały łączyć ludzi na całym świecie i dać dostęp do wiedzy. Miały. A już dziś musimy mierzyć się z konsekwencjami wykorzystywania sieci niezgodnie z przeznaczeniem. Cud techniki, który miał łączyć, stwarza coraz większe podziały za pomocą manipulacji, fałszywych informacji i mowy nienawiści. Tak jak lekarstwo od trucizny różni dawka, tak kreacyjny i destrukcyjny wpływ mediów cyfrowych zależy od tego, w czyich rękach się znajdą.

    Brexit i to, że nie ma tutaj z nami Wielkiej Brytanii, jest efektem manipulacji. Rosyjska dezinformacja walczy o rozpad demokratycznego świata od wielu lat. Pierwsza kampania Trumpa przy wsparciu fake newsów i Cambridge Analytica pokazała siłę sieci. Dzisiaj milionem dolarów dziennie ma wspierać Trumpa właściciel portalu X. To jest obłęd. Nie może być tak, że algorytmy uprawiają inżynierię wyborczą, a my biernie stoimy i patrzymy, jak giganci cyfrowi czy służby obcych mocarstw urządzają nam świat. Internet w ich rękach stał się groźnym narzędziem. Dokładnie tak jak bomba atomowa Oppenheimera, która miała służyć pokojowi. Czas przestać się łudzić. Musimy zapanować nad siecią albo ona zapanuje nad naszą rzeczywistością. Trzy postulaty: lepsze prawo, kontrola IP i konsekwencje działań w sieci.

     
       

     

      Alexandre Varaut (PfE). – Madame la Présidente, la haine en ligne, que nous devons combattre, c’est d’abord le harcèlement, les injures, la diffusion de montages qui poussent des enfants, parfois très jeunes, à tomber en dépression ou même à se suicider. Il faut cependant nous garder d’abuser de ce terme pour tenter de criminaliser des opinions. Et certains, au sein de l’Union européenne, ont très souvent cette tentation.

    La haine est un sentiment. Il est bien difficile de légiférer sur des sentiments. Nous ne pouvons légiférer que sur des actes concrets, qui causent des préjudices concrets à des victimes concrètes. Nous n’avons pas le droit d’en profiter pour traquer des opinions et pour sacraliser des notions wokes qui, matériellement, n’existent pas – telles que l’imaginaire collectif, la conscience humaine ou les valeurs universelles.

    Le risque serait le règne d’un arbitraire idéologique, qui pourrait parfaitement se retourner contre chacun d’entre nous, d’entre vous, même si à cet instant, ce sont sans nul doute les patriotes qui sont visés par la police de la pensée.

     
       

     

      Танер Кабилов (Renew). – Г-жо Председател, свободата на словото е едно от най-важните постижения на демокрацията и модерното гражданско общество. Достиженията на дигиталната ера, в която живеем, предоставя безпрецедентни възможности за комуникация и обмен на информация, но и нови предизвикателства, пред които се изправяме.

    Социалните мрежи се превръщат в арена за разпространение на омраза, особено в нейните най-опасни измерения – етническа и религиозна. Нараства злоупотребата с фалшиви профили и ботове, а хибридните атаки и дезинформационни кампании, манипулиращи общественото мнение, стават все по-често, особено по време на избори. Младите, с техните отворени сетива за знания, са чувствително уязвими за радикални идеи, които им се предоставят от алгоритмите, търсещи все повече гледания и интеракции. Това е сериозна заплаха за бъдещето на демокрацията.

    Категорично осъждам езика на омразата във всяка негова форма. Трябва да сме чувствителни като гражданско общество и да сме проактивни като политици. Трябва да намерим правилния баланс между свободата на словото и злоупотребата с него.

     
       


     

      Tiago Moreira de Sá (PfE). – Senhora Presidente, vivemos tempos em que o discurso de ódio e a retórica anti‑democrática se tornaram desculpas perfeitas para justificar um novo despotismo – a censura camuflada de virtude. Sempre que o poder se sente ameaçado, a liberdade é o seu primeiro alvo, e o caso de Elon Musk, do Prémio Sakharov, é disso exemplo – excluído num processo opaco, uma voz silenciada, a pretexto da própria liberdade de expressão.

    A Comissão Europeia entrou em confronto aberto com Musk, acusando‑o de falhar na monitorização do discurso de ódio na sua plataforma X. A polémica já fez cair o ex‑comissário europeu Thierry Breton, mas os processos judiciais que a Comissão move contra as empresas de Musk, incluindo a aplicação de possíveis multas severas, caso não cumpra com a lei dos serviços digitais, continuam bem vivos.

    Este fim de semana, o Der Spiegel chamou a Elon Musk o inimigo público número dois, atrás de Donald Trump, imaginem. A União Europeia e o Der Spiegel estão a fazer a Musk o mesmo que o Brasil de Lula e a Venezuela de Maduro. Como em O Nome da Rosa, de Umberto Eco, onde os livros eram envenenados para proteger os monges da dúvida e do riso, hoje envenena‑se o debate público para proteger a sociedade da liberdade. E, como sabemos, do veneno só pode resultar sempre a morte.

    (O orador aceita responder a uma pergunta «cartão azul»)

     
       

     

      Bruno Gonçalves (S&D), Pergunta segundo o procedimento «cartão azul». – Senhor Deputado, é incrível ouvi‑lo falar de liberdade, quando o problema é mesmo com a verdade. Enquanto, neste Parlamento, debate o ódio, debate o discurso do ódio, debate a proliferação do ódio no digital, em Portugal, sabemos bem o que está a acontecer e com o qual o seu partido e os seus representantes não têm o mínimo de empatia.

    Deixe‑me citar, o líder parlamentar do seu partido diz: «se a polícia atirar mais a matar, o país fica em ordem»; o assessor do seu partido diz: « menos um criminoso, menos um eleitor do Bloco» sobre a morte de um cidadão português. O que eu lhe pergunto, com empatia, Senhor Deputado: pode ou não condenar este ódio? Pode ou não condenar estas declarações?

     
       

     

      Tiago Moreira de Sá (PfE). – Senhor Deputado, eu confesso que pensei fazer a minha intervenção justamente sobre o que está a acontecer em Portugal. Depois, achei que não o devia fazer aqui, neste local, devia fazer em Portugal e para os portugueses. O que eu acho que contribui muito para o discurso de ódio – realmente o que está a acontecer em Portugal, sim – é quando nós confundimos polícias com ladrões, quando nos pomos do lado de quem prevarica e não cumpre a lei e incita à violência, em vez de protegermos a autoridade do Estado e as forças da autoridade.

    Eu acho que nós devemos pensar muito bem, porque a sua própria pergunta, ela própria, tem por detrás – eu sei que não foi com intenção – extremar, por detrás, polarizar, por detrás, criar esta visão de bons e maus. Eu, o que devo dizer, terei todo o gosto em ter esse debate consigo, mas não o vou fazer aqui. Farei no meu país.

     
       

     

      Hermann Tertsch (PfE). – Señora presidente, ayer estuve en una cena de la Asociación Parlamentaria Europea, en la que la mayoría son todos de los que gobiernan, de estos que gobiernan en la Comisión, es decir, del Partido Popular Europeo y de la izquierda, los perdedores abrazados al Partido Popular Europeo para seguir gobernando.

    Allí se iba a hablar de las elecciones norteamericanas y se habló de Trump. Y, de repente, Trump era Hitler. Trump era Hitler. Allí, en una asamblea de una serie de eurodiputados, se hablaba de Trump con mentiras sobre su pasado y con especulaciones insidiosas sobre su futuro.

    La señora Applebaum, supuestamente una gran intelectual a quien le han dado un premio en Fráncfort, habla de Trump como Hitler. Hemos visto también a la señora Harris —la candidata— hablando de Trump como Hitler.

    Ese insulto a la inteligencia por parte de la izquierda al tachar de Hitler, de fascistas, de nazis, a todos aquellos que no le interesan, eso sí que es una censura y un atentado contra todo el pensamiento europeo.

    Quieren ustedes un Ministerio de la Verdad para imponer una mentira, y no lo vamos a permitir.

     
       

     

      Mathilde Androuët (PfE). – Madame la Présidente, les jeunes âgés de 13 à 19 ans passent en moyenne plus de cinq heures par jour devant un écran. Il s’agit, pour certains, du seul moyen de se sociabiliser, et cela peut générer des violences – contre soi-même ou contre d’autres. Mais au lieu de lutter contre l’abandon de nos jeunes au virtuel, la Commission européenne préfère s’attaquer aux outils que sont Telegram ou X pour entraver la liberté d’expression.

    Alors oui, Daech a recruté des terroristes et des soldats sur les réseaux sociaux. Oui, des jeunes adoptent des mœurs archaïques pour intégrer une soi-disant nouvelle famille. Mais s’en prendre aux outils, plutôt que de chercher à répondre à ce besoin légitime d’appartenir à un groupe fort et exaltant, est idiot. C’est aussi idiot que d’interdire les voitures ou l’usage des couteaux de cuisine au prétexte que certains s’en servent pour tuer.

    C’est pourtant ce que fait la Commission en censurant – prioritairement d’ailleurs – ceux qui essaient de lutter contre le wokisme ou l’islamisme et en laissant pulluler antifas et prêcheurs de haine. Il ne faut pas changer d’outil, mais de modèle. Il faut offrir un vrai modèle de société à la jeunesse européenne, qui magnifie les richesses du passé dans l’objectif d’exalter l’avenir. Le problème, ce n’est pas l’internet, c’est une société occidentale qui, refusant toute pulsion de vie, pousse sa jeunesse vers des sectes où la pulsion de mort est devenue leur vie.

     
       

       

    Procedura “catch-the-eye”

     
       

     

      Matej Tonin (PPE). – Gospa predsednica! Drage kolegice in kolegi! Pred petnajstimi leti se je zdelo, da so socialna omrežja prihodnost, da bodo ključno orodje za spodbujanje demokracije. In petnajst let po tem se zdi, da so socialna omrežja predvsem orodja za širitev sovraštva in nestrpnosti.

    Kaj se je v teh petnajstih letih zgodilo tako dramatičnega, da je iz enega dobrega orodja nastalo slabo? Algoritmi. Algoritmi so tisti, ki spodbujajo sovraštvo, ki spodbujajo nestrpnost, ker v današnjem svetu enostavno dobra novica ni več novica. In zato algoritmi spodbujajo negativne stvari, spodbujajo predvsem nestrpnost.

    Sem pa prepričan, da prepoved ni rešitev, ampak da je ključna stvar za prihodnost ozaveščanje mladih, kakšne posledice ima lahko nekritična uporaba socialnih omrežij.

     
       

     

      Juan Fernando López Aguilar (S&D). – Señora presidenta, señor comisario, el modelo de negocio de las plataformas —normalmente regidas por magnates de ultraderecha— no reside solamente en explotar las debilidades, las vulnerabilidades y las características personales que los usuarios ponen a su disposición, sino, sobre todo, en generar algoritmos adictivos que se ensañan, especialmente, con la gente joven, que son los usuarios preferentes que pasan media vida ante las pantallas, consumiendo discursos de odio que radicalizan, que estigmatizan, a categorías enteras de personas, además de contenidos violentos.

    El problema no reside solamente en los contenidos, sino en la explotación de la vulnerabilidad de la gente joven: un desafío enorme para la próxima Comisión. Hemos adoptado el Reglamento de Servicios Digitales, hemos puesto en pie una estrategia contra el discurso de odio que incluye también no solamente un código de conducta para las plataformas —escasamente vinculante— sino, sobre todo, la orden de que la Comisión traiga a este Parlamento una iniciativa legislativa para hacer del delito de odio que incita la violencia de odio un delito europeo.

    Pero no es suficiente: alfabetización digital, educación, todo lo que la Comisión pueda hacer para proteger a la gente joven, que es el futuro de la Unión Europea, frente a la propagación del discurso de odio en las redes.

     
       

     

      Sebastian Tynkkynen (ECR). – Arvoisa puhemies, vihapuhe, radikalisoituminen ja demokratiavastaisuus. Tämä hetki on varattu sille, että tämä koko sali keskustelee näistä aiheista. Itse asiassa tämä on hyvin ajankohtainen aihe, joten siitä onkin hyvä keskustella. Me olemme nimittäin todistaneet viime aikoina tapahtumia, jotka täyttävät nämä kaikki tunnusmerkit: vihaa, radikalisoitumista ja demokratiavastaisuutta. Lukuisissa Palestiina-mielenosoituksissa aina huippuyliopistoihin saakka ovat raikuneet antisemitistiset huudot. Lähi-idän ainoalle demokratialle Israelille on toivottu tuhoa, ja radikaali terroristijärjestö Hamas on nauttinut monen mielenosoittajan tukea.

    Miksi en ole kuullut, että vasemmisto olisi tästä puhunut tänään? Haluan muistuttaa teitä tästä, kun te etsitte vihapuhetta ja radikaalia puhetta kaikkialta, niin käykääpä joskus vasemmiston Palestiina-mielenosoituksissa. Saatatte löytää sieltä sitä, mitä olette kaikkialta muualta etsimässä.

     
       

     

      Lukas Sieper (NI). – Madam President, dear colleagues, honourable House, as we talk of young people here with my, in other cases, little life experience of 27 years, I am happy to take the floor today.

    I may present you with three truths. Number one: TikTok is owned and controlled by the Chinese Communist Party, responsible for atrocities like putting Uyghurs in concentration camps.

    Number two: because of that, the algorithm is, of course, also controlled and manipulated by the Chinese Communist Party.

    Number three: if you, my dear colleagues, do not join TikTok, and if you are not active there, you will leave this platform and the young people on this platform to the enemies of democracy inside this House and outside this House.

    So please be active there no matter what. I am not much, but I am young, so I hope you trust me on that.

     
       

       

    (Fine della procedura “catch the eye”)

     
       

     

      Janusz Wojciechowski, Member of the Commission. – Madam President, honourable Members, thank you for your contributions. It is clear that new technologies have transformed our economies, our societies, our lives. They have multiple benefits, but we cannot ignore the risks. Hate speech, often fuelled by disinformation, is one of them.

    We need to keep our values of equality, tolerance, non-discrimination. We also need to keep our focus on delivering policies which improve citizens’ lives. We want to support active citizenship and social inclusion with the aim of fostering more equitable and tolerant societies. There is a pivotal role here as concerns the smart and safe use of digital technologies. The scope of prevention activities is broad, and we can extend it to education, employment, justice, social inclusion or sports.

    Within the framework of the Digital Services Act, the industry’s thorough commitment is necessary to succeed. We have a good basis, but we need to intensify our efforts and adopt the fast development of new technologies.

     
       


       

    IN THE CHAIR: ROBERTA METSOLA
    President

     

    5. Resumption of the sitting

       

    (The sitting resumed at 12:05)

     

    6. Sakharov Prize 2024 (announcement of the winner)

     

      President. – Dear colleagues, it is my privilege to announce that the 2024 Sakharov Prize for Freedom of Thought has been awarded to María Corina Machado, leader of the democratic forces in Venezuela, and President-elect Edmundo González Urrutia, representing all Venezuelans inside and outside the country, fighting to restore freedom and democracy in the face of injustice.

    (Loud and sustained applause)

    Edmundo and María have continued to fight for the free, fair and peaceful transition of power and have fearlessly upheld those values that millions of Venezuelans and this Parliament hold so dear: justice, democracy and the rule of law. This Parliament stands with the people of Venezuela and with María and Edmundo in their struggle for the democratic future of their country. This award is for them, and we are confident that Venezuela and democracy will ultimately prevail.

    I also want to extend this House’s wholehearted support to the other Sakharov Prize finalists: the Israeli and Palestinian movements ‘Women Wage Peace’ and ‘Women of the Sun’.

    (Loud and sustained applause)

    We also have the finalist Azerbaijani academic and anti-corruption activist Dr Gubad Ibadoghlu.

    (Loud and sustained applause)

    All three are bravely standing up for human rights and for freedom of thought in the face of unimaginable challenges.

    I also share the tragic news that Dr Ibadoghlu’s health condition is currently deteriorating significantly. He is being kept under house arrest following his arbitrary detainment, and I take this opportunity to call on the Azerbaijani authorities to drop all charges against Dr Ibadoghlu and lift his travel ban.

    (Applause)

     

    7. Request for waiver of immunity


       

    (The sitting was briefly suspended)

     
       

       

    PRESIDE: JAVI LÓPEZ
    Vicepresidente

     

    8. Resumption of the sitting


     

      Lukas Sieper (NI). – Mr President, honourable House, Rule 202 deals with the point of order. Last plenary week, I had the honour to shed some light on the blatant misuse of this rule inside this House. We were talking about Rule 202(1) that states that you shall use a point of order to address a failure to comply with the parliamentary Rules of Procedure.

    Today, I want to talk about Rule 202(4) that states that in all regular cases like this, the President shall take an immediate decision about the point of order raised. That is not what happened to my point of order. Instead, right after I finished, we kept on seeing the same thing. For example, since then we heard about the suffering of the Palestinian people or the necessity to honour a Polish priest. Understandable topics, but nothing to state inside a point of order.

    In my legal opinion, immediate means on the spot. So, Mr President, with all due respect and being thankful to also having the possibility to forewarn President Metsola on this directly yesterday, I request an immediate decision about stopping the point of order being misused.

     
       

     

      President. – Thank you very much. You have the answer: we take note of your comment.

     

    9. Voting time

     

      President. – The next item is the vote.

     

    9.1. Situation in Azerbaijan, violation of human rights and international law and relations with Armenia (RC-B10-0133/2024, B10-0129/2024, B10-0131/2024, B10-0133/2024, B10-0136/2024, B10-0139/2024, B10-0141/2024, B10-0142/2024) (vote)

     

      President. – The first vote is on the situation in Azerbaijan, violation of human rights and international law and relations with Armenia (see minutes, item 9.1.).

     

    10. Resumption of the sitting

       

    (La seduta è ripresa alle 15.00)

     

    11. Approval of the minutes of the previous sitting

     

      Presidente. – La seduta è ripresa.

    Il processo verbale della seduta di ieri e i testi approvati sono stati distribuiti.

    Se non ci sono osservazioni, il processo verbale si considera approvato.

     

    12. Protecting our oceans: persistent threats to marine protected areas in the EU and benefits for coastal communities (debate)


     

      Janusz Wojciechowski, Member of the Commission. – Madam President, honourable Members, thank you for the opportunity to address this important topic today. The ocean is a magnificent ecosystem. A healthy ocean has an essential role as a climate regulator and food provider. It is at the heart of the blue economy and cultural identity of our coastal communities.

    However, our ocean faces multiple threats from climate change, unsustainable activities that lead to biodiversity loss and pollution, or illegal fishing globally. This is clearly evidenced by the EU-driven Copernicus satellite data reported in the annual Ocean State Report by the Copernicus Marine Service.

    Therefore, we need to continue the efforts to protect and restore marine ecosystems, including through the establishment of marine protected areas. I cannot stress enough the importance and positive effects of marine protected areas. They not only protect and restore biodiversity, they also ensure that the ocean is able to deliver the multiple environmental services our coastal communities have relied on for ages.

    There are many examples of effective marine protected areas which bring long-term economic and social benefits for fishers and entire coastal communities. I’m thinking about the Columbretes marine reserve in Spain or Torre Guaceto protected area in Italy, where protection is implemented in cooperation with fishers, who benefit from better catches and receive recognition for their engagement in ocean conservation.

    However, most of our marine protected areas are not effectively managed today, which is putting at risk our goals for restoration of marine ecosystems. We cannot afford to have ‘paper parks’ in the EU. We need urgent and greater efforts from all those responsible, from local to national and EU level.

    The European Union is a worldwide leader when it comes to the protection of the oceans and seas. It played a key role in reaching the United Nations agreement on biodiversity beyond national jurisdiction and strongly encourages all countries to promptly ratify the treaty to protect at least 30 % of the planet by 2030.

    At European Union level, our environmental laws, the Birds and Habitats Directives and the Marine Strategy Framework Directive provide for creation and management of marine protected areas. In our biodiversity strategy for 2030, we committed to expand our network of protected areas to cover 30 % of our seas, of which one third should be strictly protected. All MPAs should be effectively managed and should have the necessary fisheries management measures in place.

    The common fisheries policy contributes to the implementation of these policy goals and legislation. Whilst we made progress on the recovery of many fish populations, more efforts are needed to effectively protect and restore other species and marine habitats. In particular, in our marine Natura 2000 network.

    The Commission also adopted the marine action plan, setting out a non-binding path to achieving a protection of 30 % of our seas by 2030. The recently adopted Nature Restoration Regulation set the goal of covering 20 % of our seas, with restoration measures by 2030 and achieving specific nature restoration objectives in the marine environment.

    Member States need to implement and enforce existing legislation, and all stakeholders need to take further ownership. Therefore, a dialogue is required, as well as a strong science-based approach.

    Another challenge for marine protected areas is the increasing competition for maritime space. We are working with Member States and experts to deliver ecosystem-based maritime spatial planning. The aim is to foster the blue economy while ensuring the achievement of good environmental status.

    In conclusion, the Commission will continue the close cooperation with Member States and all stakeholders to ensure that marine protected areas effectively deliver to the benefit of our coastal communities.

     
       

     

      Francisco José Millán Mon, en nombre del Grupo PPE. – Señora presidenta, señor comisario, los océanos se enfrentan a numerosas amenazas, es cierto: el cambio climático, la contaminación por desechos y vertidos, los plásticos, el transporte marítimo, la explotación de hidrocarburos, la pesca ilegal… Debemos proteger los océanos, pero sin caer en extremismos maximalistas: la protección no es incompatible con toda actividad humana. El llamado «pacto europeo de los océanos» debería tener una visión holística, global, que trate de integrar las actividades humanas de una manera sostenible y en diálogo con los afectados. Hay que preparar debidamente la próxima conferencia de Niza.

    Me centro ahora en la pesca: proteger los océanos es vital, también para el sustento de nuestros pescadores. El sector pesquero europeo es un sector muy regulado, lleva a cabo una pesca sostenible, lucha contra la pesca ilegal y contribuye a nuestra seguridad alimentaria: debemos velar por su prosperidad y su competitividad.

    Quiero destacar la importancia de las OROP, las organizaciones regionales de ordenación pesquera. Precisamente, el acuerdo sobre la diversidad biológica marina en alta mar, conocido como BBNJ, reconoce el papel de las OROP y de las reglamentaciones que estas adoptan. En las OROP y en el resto de organismos internacionales necesitamos, comisario, liderazgo de la Unión Europea para conseguir que se globalicen nuestros altos estándares: así lograremos no solo una verdadera protección de los océanos, sino también la igualdad de condiciones que tanto desean nuestros pescadores.

    Las áreas marinas protegidas, como usted señala, requieren un trato especial, pero este debe basarse en criterios científicos y atender a los objetivos específicos del área en cuestión, no a meros porcentajes. Por ejemplo, si de lo que se trata es de proteger a las aves marinas, no tiene sentido ahora insistir en la prohibición del arrastre de fondo. No podemos caer en la demonización de ciertas artes pesqueras como hace, por ejemplo, el plan de acción marino presentado el año pasado por la Comisión Europea.

     
       

     

      Christophe Clergeau, au nom du groupe S&D. – Madame la Présidente, Monsieur le Commissaire, il y a quinze jours, avec mes collègues de l’intergroupe du Parlement européen «Mers, rivières, îles et zones côtières», nous avons accueilli à Bruxelles la Semaine des océans, organisée par les ONG. Voici ce qu’elles nous ont dit:

    En premier lieu, il y a urgence à se mobiliser pour restaurer la bonne santé des océans.

    En deuxième lieu, il faut faire appliquer les lois qui existent – qui aujourd’hui ne sont pas appliquées – et surveiller de près comment les États travaillent sur le règlement relatif à la restauration de la nature. Parce que 2030 va arriver très, très rapidement.

    En troisième lieu, il faut certes, Monsieur le Commissaire, aborder l’océan et son aménagement comme un écosystème, mais cette approche écosystémique n’est pas possible dans le cadre de la directive actuelle relative à la planification de l’espace maritime: il est donc urgent d’engager sa révision.

    Dernièrement, nous avons besoin d’une ambition globale – ce fameux pacte européen pour les océans promis par Ursula von der Leyen, qui permettra de concilier la santé des océans et les activités de l’économie bleue –, menée avec ce Parlement, avec les collectivités locales et avec toutes les parties prenantes, tous les acteurs associatifs et économiques.

     
       

     

      France Jamet, au nom du groupe PfE. – Madame la Présidente, monsieur le Commissaire, mes chers collègues, la protection de nos océans est un enjeu crucial sur le plan économique, environnemental et géopolitique, notamment pour la France, qui possède le deuxième plus grand domaine maritime du monde.

    Mais la multiplication des aires marines protégées n’en garantit pas l’intégrité. La pêche financière est mondialisée et prospère, sans respect de la ressource, de Mayotte à nos côtes, en toute légalité. Quant à la pêche illégale, elle ravage nos territoires maritimes, de la Nouvelle-Calédonie jusqu’en Guyane, en toute impunité.

    Au-delà de ces déclarations de bonnes intentions et autres interdictions unilatérales, c’est d’une vraie stratégie de protection des océans que nous avons besoin pour appuyer les moyens de défense de notre souveraineté alimentaire nationale et pour revaloriser notre domaine maritime ainsi que l’économie bleue.

     
       

     

      Billy Kelleher, on behalf of the Renew Group. – Madam President, this is a very important topic for a number of reasons, and for a large number of communities in our Union.

    As an MEP for an island nation, I’m acutely aware of the importance of our oceans, seas and coasts to sustain an abundance of life and communities, both socially and economically.

    As such, today’s debate on protecting our oceans, persistent threats to marine protected areas in the EU and benefits to our coastal communities is an important milestone. At present, 10% of Irish waters are now classified as marine protected areas, up from 2.4 % in 2020. The Irish Government is committed to achieving a 30 % coverage rate by 2030 and will, in the early 2025, pass legislation putting in place a legal commitment to do so. This is something I and the Fianna Fáil party supports.

    However, as an island nation, we have competing objectives and goals. In the first instance, we want to protect our marine ecosystems, but equally we want to support our fishing communities, many of whom have fished in areas set to be designated as marine protected areas for generations. Thirdly, we want to become an offshore wind energy superpower.

    Our challenge is to ensure that all these objectives can be met. It is therefore a necessity that all the stakeholders involved enter into this process with an open mind and without narrow ideological opinions.

    Fishers have a right to fish and not have their livelihoods destroyed by losing access to waters that they have historically fished in. Countries have a right to diversify their electricity generation, their waters. And yes, we have a moral obligation to protect our oceans, rivers and coastal areas.

    However, Commissioner, we have a significant challenge in Ireland, as Norway is being granted access to Irish waters for mackerel fishing. Mackerel stocks are being overfished. Irish mackerel quota will be cut by 22 % in 2025, and it will cost the Irish fishing industry EUR 18 million. Yet at the same time, we grant access to Norwegian supertrawlers to fish in Irish waters and to overfish and exploit mackerel stocks. The Irish fishing industry is very dependent on the mackerel stocks.

    So, Commissioner, I cannot understand how in one way we are talking about sustainability and ensuring we protect marine life and at the same time grant unlimited access to supertrawlers to fish in Irish waters, to exploit fish stocks and undermine the Irish fishing industry and the coastal communities that depend on it.

    When we are talking about sustainability, we must have fairness for the Irish fishing industry and the coastal communities that depend on it.

     
       

     

      Isabella Lövin, för Verts/ALE gruppen. – Fru talman! Allt liv på jorden startade i haven. Haven ger oss mat. De ger oss glädje. De producerar hälften av allt syre som vi andas. Ändå misshandlar vi haven, använder dem som soptipp och tömmer dem på fisk.

    Nu har vi också gett dem hög feber, och det är väldigt allvarligt. Som en forskare sa till mig: Klimatkrisen, den drabbar precis som covid de svagaste värst. Och havet är redan försvagat.

    I Östersjön, där jag bor, har medeltemperaturen redan ökat med två grader sedan 1990, och nere på 30 meters djup var det förra sommaren 20 grader varmt, något som aldrig har noterats förut.

    Ett område stort som Danmark är död botten. Vi måste göra någonting snabbt för denna döende patient, och vi måste göra någonting nytt.

    Vi behöver en ny havspolitik som samlat kan hjälpa våra hav att tillfriskna, så att de åter kan binda kol i bottnarna, som nu rivs upp av bottentrålning, och åter har stabila, livskraftiga ekosystem som gör vattnet klart och rent igen och som kan förse Europa med hållbart fiskad fisk.

    För det behöver vi inte bara 30 % skyddade områden, utan vi behöver en helhetssyn. Därför välkomnar jag den europeiska havspakten. Den måste ha som högsta prioritet att låta haven tillfriskna igen. Alla politikområden behöver samspela för att nå dit.

    Haven är grunden för allt liv. Skyddar vi havet så skyddar vi också oss själva.

     
       

     

      Emma Fourreau, au nom du groupe The Left. – Madame la Présidente, monsieur le Commissaire, j’imagine que votre jardin est une zone protégée. Alors, que diriez‑vous si je venais demain dans votre jardin pour y déterrer vos carottes et ramasser vos tomates, avant de repartir en piétinant tout le potager pour être sûre que vos légumes ne repoussent pas l’année prochaine? Nul doute que cela vous déplairait fortement. Et je vous répondrais que j’étais dans votre jardin comme un chalutier de fond dans les aires marines protégées, qui n’ont de protégées que le nom.

    Car, si 12 % des eaux de l’Union européenne entrent dans la définition des aires marines protégées, seules 0,2 % le sont de façon stricte. Alors qu’est-ce qui est protégé dans les autres? Rien ou presque: 86 % des aires dites protégées d’Europe sont intensément exploitées, au moyen de méthodes de pêche destructrices, comme le chalutage de fond, ou d’autres activités industrielles extractivistes.

    La pêche industrielle a des conséquences délétères: pour la biodiversité, mais aussi pour les petits pêcheurs. Au-delà du chalutage de fond, ces derniers subissent également de plein fouet la concurrence des méga-chalutiers pélagiques, qui n’hésitent pas à traverser les aires marines protégées. Exclure la pêche industrielle des aires marines protégées, comme le recommande l’Union internationale pour la conservation de la nature, c’est donner de l’oxygène à la pêche artisanale, dont les incidences environnementales sont moindres, et qui favorise le renouvellement des espèces.

    La Commission s’est engagée à sortir du chalutage de fond dans les aires marines protégées d’ici 2030. Soyez à la hauteur de l’engagement en adoptant un plan de transition juste, qui accompagne les pêcheurs, leur donne de la visibilité, des incitations et des solutions de rechange, et qui prévoie un véritable plan de déchalutisation de la flotte européenne.

    Sans action concrète de la Commission comme des États, vos promesses resteront vaines.

     
       

     

      Siegbert Frank Droese, im Namen der ESN-Fraktion. – Frau Präsidentin, Herr Kommissar, sehr geehrte Kollegen! Niemand Vernünftiges ist gegen den Schutz der Ozeane vor Zerstörung, aber Umweltschutz funktioniert nicht mit starren Daten, utopischen Zielvorgaben und ideologischer Verblendung.

    Sinnvoll sind praktische Dinge, etwa harte Bestrafung von Kapitänen, die ihre Abfälle ins Meer werfen, oder Firmen, die Tankerunfälle fahrlässig verursachen, aber wir brauchen keine Blue Economy als neue sozialistische Planwirtschaft. Ein Beispiel dafür: Bis 2030 sollen 30 % der Ozeane als Schutzzone fungieren – das ist ein utopisches Ziel.

    Die Natur ist stärker als die Europäische Kommission, sie regeneriert sich selbst. Biodiversität gibt es seit Millionen von Jahren. Deshalb brauchen wir weder in der Landwirtschaft noch im Fischfang oder sonstwo EU-Naturalisierungsgesetze. Aber ich frage mich: Wo war und ist eigentlich der Schutz der Ozeane bei der Sprengung von Nord Stream 2 geblieben? Wo ist der akribische Wille der Kommission, diese Sprengung von Nord Stream 2 aufzuklären? Es ist schon sehr sonderbar, dass Brüssel hier nichts tut, obwohl doch sonst die Kommission den lieben langen Tag vom Grünen Deal träumt oder das böse CO2 jagt.

    Wenn wir über den Schutz der Ozeane sprechen, muss ich auch auf die Sanktionen gegen Russland zu sprechen kommen. Die Sanktionen sollten Russland treffen, gefährden aber mittlerweile unsere Ozeane, unsere Umwelt, weil Russland eben nicht untergeht, sondern seine Rohstoffe mit alten, rostigen Schiffen um den Globus schickt; ein schönes Beispiel dafür, wie sich die Kommission selbst ins Knie schießt, unter großem Applaus vieler Mitglieder dieses Hauses.

    Ja, wir müssen die Ozeane schützen, aber vor Sozialistischen, Grünen, Eurokraten. Deshalb sagen wir von der ESN: Wir stimmen guten Ideen zu, die praktikabel sind und vor allem wirtschaftlich; wir stimmen dem Statement in der großen Zielsetzung des Schutzes der Meere zu, aber wir lehnen die Blue-Economy-Basis ab: Sie sind nichts anderes als grüne Experimente und Utopien.

     
       

     

      Hélder Sousa Silva (PPE). – Senhora Presidente, Caro Comissário, Caros Colegas, o oceano é claramente um aliado indispensável para a União Europeia reforçar a sua competitividade em áreas estratégicas como a inovação, a segurança alimentar, a autonomia energética e a sustentabilidade ambiental. Por isso, digo que o Pacto Europeu para os Oceanos é uma grande oportunidade. A proteção das zonas costeiras e das comunidades piscatórias é um claro objetivo, mas também temos de assegurar uma justa remuneração para os profissionais.

    Elogio a delimitação, na passada semana, por parte dos Açores, da maior área marinha protegida da Europa, protegendo 30 % do seu mar. E, enquanto autarca, participei ativamente na delimitação da área marinha protegida da Ericeira, de Sintra e de Cascais, a primeira em Portugal, que envolveu ativamente a comunidade local na sua delimitação.

    Dada a relação intrínseca entre as nossas comunidades e os mares que nos circundam, direi que a preservação do eixo atlântico europeu é um desígnio de todos nós.

     
       

     

      André Rodrigues (S&D). – Senhora Presidente, Senhor Comissário, a União Europeia estabeleceu metas ambiciosas para a proteção de pelo menos 30 % das águas marinhas até 2030. Mas não tenhamos ilusões, isto só pode ser assegurado se garantirmos, de facto, o envolvimento de pescadores, comunidades pesqueiras, profissionais da aquicultura, ONG ambientais e demais agentes relevantes e se também assegurarmos as devidas compensações para que os profissionais das pescas não sejam vítimas deste processo.

    Saúdo, por isso, o exemplo da minha região, os Açores, que há dias aprovou o plano de reestruturação do setor da pesca, proposto pelo Partido Socialista, que prevê compensações a todos os profissionais afetados pela criação de áreas marinhas protegidas. Com um orçamento superior a 10 milhões de EUR para o período de 2025 a 2030, este plano acompanhará a implementação da proteção de 30 % do mar de uma das maiores zonas económicas exclusivas da Europa.

    Este é o exemplo que a União deve seguir, com a definição de um ambicioso fundo que acompanhe e financie um verdadeiro pacto para os oceanos.

     
       

     

      André Rougé (PfE). – Madame la Présidente, monsieur le Commissaire, chers collègues, l’outre-mer permet à la France, deuxième zone économique exclusive au monde, d’être au premier rang de la protection des océans: une priorité environnementale mondiale, dont les zones marines protégées sont l’élément le plus marquant.

    Aussi sommes-nous inquiets des menaces qui pèsent sur les îles Éparses, désormais revendiquées par Madagascar. Ces îles sont qualifiées de sanctuaires océaniques de la nature primitive. Elles sont les laboratoires de référence au niveau mondial pour étudier l’influence des changements climatiques, car elles sont vierges de toute présence humaine, ce qui en fait des modèles de naturalité.

    Il est indispensable que l’Union européenne soutienne fermement la souveraineté française sur les îles Éparses. Face à l’appétit dévorant d’une grande puissance mondiale et hégémonique qui instrumentalise la République de Madagascar dans l’océan Indien, comment l’Union européenne pourrait-elle se désintéresser de ce sanctuaire naturel? Comment l’Union européenne pourrait-elle se désintéresser, parmi ses îles, de celle qui, symboliquement, porte jusqu’à son nom – Europa?

    Dans cette partie du monde, personne n’est dupe de ce qui se cache derrière la prétention malgache à annexer les îles Éparses. Pour garantir l’avenir de ces territoires et leur biodiversité, l’Union européenne doit intégrer cette réalité géopolitique dans sa stratégie de protection des océans, mais aussi dans sa diplomatie.

     
       

     

      Ana Miranda Paz (Verts/ALE). – Senhora Presidente, venho de um país marítimo, a Galiza, um país do eixo atlântico europeu. Ali, temos duas reservas marinhas, duas áreas marinhas protegidas de interesse pesqueiro ou piscatório, também dito na nossa língua. A reserva marinha de Cedeira, que é uma verdadeira oportunidade, na qual o setor das pescas trabalha também na defesa do meio ambiente e na defesa de um recurso económico vital para o meu país.

    No meu país, que é rico em biodiversidade marinha, os governos estão contra as áreas marinhas protegidas. Preferem apoiar a macroeólica marinha, as empresas elétricas que não deixam benefícios, preferem que os marinheiros fiquem sem trabalho, para apoiar os macroparques eólicos.

    Senhor Comissário, como é possível que a Comissão Europeia proíba a pesca de fundo e, depois, permita, em áreas marinhas protegidas de especial interesse, que se metam estas macroelétricas a tirar os recursos e o peixe e a vida das nossas comunidades piscatórias, como é o caso de Cedeira?

     
       

     

      Per Clausen (The Left). – Fru formand! En af de største og mest vedvarende trusler mod vores havområder – beskyttede eller ej – er vandkvaliteten. Alt for mange steder ser vi, at den økologiske tilstand i havområderne ikke alene er dårlig, den forværres også hele tiden. Det behøver ikke at være sådan. For det er en udvikling, vi ved, hvordan vi kan gøre noget ved. Men det kræver, at vi tør tage fat i årsagerne. Det er den forurening, der kommer fra en industrialiseret landbrugsproduktion, kemikalieindustrien. Det er anvendelse af fiskeredskaber, som ødelægger havbunden. Og her mangler modet til at handle desværre ofte. Det gælder, selv når det er klart, at biodiversiteten i havene forværres år efter år. Et af de steder, hvor modet mangler, er i mit eget hjemland, Danmark. Her taler regeringen varmt om vandmiljøet, men nægter samtidig at implementere vandrammedirektivet på den rigtige måde, eller for den sags skyld at skride ind mod landbrugets udledning af pesticider og kvælstof eller den forurening, som stammer fra kemiske kemikalievirksomheder i Danmark, hvoraf en af dem ovenikøbet producerer pesticider, som er ulovlige at bruge i EU-landene. Vores have gisper bogstaveligt talt efter vejret. Fisk, havdyr og planter forsvinder, hvis EU og medlemsstaterne ikke forstår, at vores have har brug for alvorlig førstehjælp.

     
       


     

      Thomas Bajada (S&D). – Madam President, this is embarrassing. We are discussing the future of our ocean when the plenary has practically already ended, when most MEPs have already gone. Is this the attention our future deserves? This is a clear statement that our ocean, our future, is not a priority for the leadership of this Parliament.

    Dear colleagues – whoever is left – the ocean is in peril, with climate change, unruly destruction of our biodiversity and our fishers desperately trying to survive. It is vital to have a properly‑managed international network of marine protected areas, not just for biodiversity, but for the survival of our coastal communities that rely on a healthy ocean for their livelihood.

    We can’t let this failure continue. The time to act is now. Let us deliver an Ocean Pact that truly protects our ocean and safeguards our livelihood. Empty promises won’t cut it. We need binding targets like real funding, and the international political will to deliver, through marine protected areas, for our ocean, our communities and our future.

     
       

       

    Procedura “catch-the-eye”

     
       

     

      Niels Geuking (PPE). – Frau Präsidentin! Die Meere sind der größte Lebensraum auf Erden und bedrohter denn je: Klimawandel, Überfischung, auch die eigenen Fangflotten, Verschmutzung, Nährstoff- und Plastikeintrag – und wir schaden uns dadurch auch selbst. Wer Fisch in seinen ganz normalen Speiseplan integriert hat, nimmt am Ende von zwei Wochen knapp diese Plastikkarte Mikroplastik zu sich, also eine Kreditkarte Mikroplastik, weil die Meere dementsprechend verschmutzt sind.

    Wir sollten uns unter anderem auch kritischer mit den Fangquoten auseinandersetzen, um den Fischarten überhaupt eine echte Erholungschance zu ermöglichen und am Ende auch die Arbeitsplätze längerfristig zu sichern. Jedes zu späte Handeln wird seine Folgen mit sich bringen; siehe die Störe, den Aal, Dorsch, Kabeljau, Hering, Schellfisch, Heringshai, Dornhai, die Seezunge, Lachs, Meerforelle – und das waren nur Nord- und Ostsee.

    Aktuell bieten Offshore-Windparks einen der besten Schutzräume für viele Meerestiere, wie z. B. die Nordseegarnele – an sich ein trauriger Fakt. Effektiv wäre es auch, wenn wir einmal darüber sprechen würden, dass Haifischflossen ein großes Problem darstellen. Würde der Hai als Ganzes in einen europäischen Hafen einlaufen müssen, wäre das Problem wahrscheinlich gar nicht so groß. Insofern, einfache Regelung mit enormer Wirkung.

     
       

     

      Jean-Marc Germain (S&D). – Madame la Présidente, mes chers collègues, comment parler de la protection des océans sans évoquer la nécessaire protection des lanceurs d’alerte? Paul Watson croupit en prison depuis près de cent jours pour avoir voulu faire respecter le moratoire sur la pêche à la baleine. Nous devons nous battre pour sa liberté. Je me réjouis cette initiative de la Ville de Paris qui en a fait un citoyen d’honneur de la capitale de mon pays. J’appelle par ailleurs le président de la République à lui accorder la nationalité française, qu’il demande, et j’appelle de nouveau l’Union européenne à lui offrir la protection de la directive de 2019 sur la protection des personnes qui signalent des violations du droit de l’Union européenne.

    La liste des destructions à l’œuvre dans nos océans est aussi longue que le temps est court pour agir. Agir, c’est sortir de la pêche industrielle, c’est établir de vraies aires maritimes protégées, c’est adopter un moratoire sur les exploitations minières en eaux profondes, c’est bannir les polluants qui détruisent la vie marine, c’est garantir de puissants moyens financiers et de contrôle.

    Les océans sont vitaux pour la préservation du vivant. Mes chers collègues, protégeons-les!

     
       

     

      Pernando Barrena Arza (The Left). – Señora presidenta, en este punto sobre las amenazas persistentes a zonas marinas protegidas y comunidades costeras quiero llamar la atención de sus señorías sobre un proyecto para la construcción en Gernika (País Vasco) de un nuevo museo Guggenheim en plena reserva de la biosfera de Urdaibai, que es un estuario en la desembocadura del río Oca al mar Cantábrico, en el océano Atlántico.

    Estamos hablando de un proyecto que vulnera la legislación europea al plantearse en la marisma de Urdaibai, una Zona de Especial Protección para las Aves o ZEPA y, por lo tanto, parte de la Red Natura 2000. Por esta zona, declarada de especial protección, se estima que circularían alrededor de 140 000 visitantes anuales, según los promotores del museo, lo cual es absolutamente un sinsentido.

    Esta situación hace que el proyecto cuente con una enorme oposición de los habitantes del lugar, que exigen detener este proyecto porque creen que pone en riesgo una zona que debiera estar especialmente protegida y que necesita un plan de desarrollo acorde con el valor del entorno ambiental de Urdaibai.

    Queremos interpelar a la Comisión para que actúe en consecuencia, proteja los intereses medioambientales de los ciudadanos de la zona y no permita el deterioro absoluto de este espacio costero, protegido por una figura diseñada por la propia Comisión Europea como es la Red Natura 2000.

     
       

     

      Lukas Sieper (NI). – Frau Präsidentin, Hohes Haus! Zum Abschluss dieser Plenarwoche möchte ich noch einmal auf die Grundsätze hinweisen, die zu befolgen in diesem Haus wichtig ist. Ich weiß, ich selbst bin auch manchmal disruptiv, wenn es um die Gepflogenheiten des Parlaments geht, aber manche Dinge sollten wir doch auf jeden Fall hier befolgen.

    Eines davon ist es, die Wahrheit zu sprechen, und zwar die ganze Wahrheit, nicht nur einen Teil davon. Deswegen möchte ich auf eine Wahrheit eingehen, die der Kollege Droese vorhin angesprochen hat. Herr Kollege Droese von der rechtsextremen Partei AfD sagte, dass es schon immer klimatische Veränderungen auf der Welt gegeben hat, schon immer Veränderungen der Biodiversität gegeben hat.

    Ja, das stimmt, das bezweifelt auch keiner. Tatsache ist aber, dass diese Veränderungen in den letzten Jahren und Jahrzehnten in einem Ausmaß stattfinden, wie es das noch nie auf der Welt gegeben hat. Auch wenn der Kollege mir offensichtlich leider nicht zuhört – was schade ist an der Stelle –, möchte ich ihm trotzdem bewusst machen: Sie müssen immer die ganze Wahrheit betrachten, vor allen Dingen, wenn es um Themen des Klimawandels geht, wie den Schutz der Ozeane.

     
       

       

    (Fine della procedura “catch the eye”)

     
       

     

      Janusz Wojciechowski, Member of the Commission. – Madam President, honourable Members, thank you very much for all the inspiring contributions.

    The Commission has engaged with citizens, businesses, scientists, NGOs, cities, coastal communities and our international partners. They all expect us to act. Achieving a coherent and effectively‑managed EU network of marine protected areas will remain a high priority for the Commission. We need more marine protected areas and we need them to be truly protected through effective conservation measures.

    We have the awareness of our citizens, we have the knowledge and we have solutions. Now we need the political will, across Member States, to engage the dialogue, to strengthen the knowledge base, to support the innovations, to achieve full compliance with European law.

    Honourable Members, let’s secure together a better future for our ocean to the benefit of all of us.

    Pani Przewodnicząca! Jeszcze pozwolę sobie na zakończenie kilka słów powiedzieć w moim ojczystym języku polskim, bo padła tutaj wypowiedź jednego z Państwa, z panów posłów, że sankcje, którymi Unia Europejska obejmuje Rosję, są po to, żeby Rosja cierpiała. Otóż nie, one nie są po to, żeby Rosja cierpiała. One są po to, żeby nie cierpiała Ukraina, a w dalszej przyszłości, aby podobne cierpienie nie spotkało żadnego innego kraju, w tym mojego ojczystego kraju Polski.

     
       

     

      Presidente. – La discussione è chiusa.

     

    13. Explications de vote

     

      Presidente. – L’ordine del giorno reca le dichiarazioni di voto.

     

    13.1. Situation in Azerbaijan, violation of human rights and international law and relations with Armenia (RC-B10-0133/2024)


     

      Seán Kelly (PPE). – A Uachtaráin, ní ráiteas polaitiúil amháin é an tairiscint i gcomhair rúin ar an staid san Asarbaiseáin, ach ráiteas morálta. Ní mór dúinn freagairt ar ghlanadh eitneach na nAirméineach, ar ionsaí míleata leanúnach agus ar neamhaird gan náire na hAsarbaiseáine ar chearta an duine. Ní mór don Aontas Eorpach an daonlathas a chosaint, agus ní mór an smacht reachta agus na luachanna sin a urramú go leanúnach. Ní hamháin nach mór dúinn na gníomhaíochtaí sin a cháineadh, ach ní mór dúinn gníomhú ina leith freisin. Caithfimid an Asarbaiseáin a thabhairt chun cuntais. Úsáidimis an rún seo chun ár dtiomantas do chearta an duine a athdhearbhú, ní hamháin le briathar ach le gníomh. Agus anois freagróidh mé an fón.

     

    13.2. People’s Republic of China’s misinterpretation of the UN resolution 2758 and its continuous military provocations around Taiwan (RC-B10-0134/2024)


     

      Seán Kelly (PPE). – A Uachtaráin, thacaigh mé leis an rún seo toisc go bhfuil rannpháirtíocht fhiúntach tuillte ag an Téaváin i bhfóraim idirnáisiúnta. Cé go dtugtar aitheantas i rún 2758 na Náisiún Aontaithe i 1971 do Dhaon-Phoblacht na Síne, ní réitíonn sé stádas na Téaváine ná ní thugann sé ceannasacht don tSín ar an Téaváin. Tá ról ríthábhachtach ag an Téaváin, ar thír dhaonlathach bhríomhar í ar fud an domhain, ón gcúram sláinte go dtí an teicneolaíocht. Ba cheart a toghcháin shíochánta agus a dearcadh comhoibrithe domhanda a léiriú ina rannpháirtíocht le heagraíochtaí idirnáisiúnta amhail EDS agus ICAO. Ní hamháin go bhfuil sé cóir, ach tá sé riachtanach freisin go dtacaímid le rannpháirtíocht na Téaváine chun an dlí idirnáisiúnta agus an daonlathas a urramú.

     

    14. Approval of the minutes of the sitting and forwarding of texts adopted

     

      Presidente. – Il processo verbale della seduta odierna verrà sottoposto all’approvazione del Parlamento all’inizio della prossima seduta.

    Se non vi sono obiezioni, procedo alla trasmissione immediata delle risoluzioni approvate nella seduta odierna ai loro destinatari.

     

    15. Dates of forthcoming sittings

     

      Presidente. – La prossima tornata si svolgerà dal 13 al 14 novembre 2024 a Bruxelles.

     

    16. Closure of the sitting

       

    (La seduta è tolta alle 15.41)

     

    17. Adjournment of the session

     

      Presidente. – Dichiaro interrotta la sessione del Parlamento europeo.

    La seduta è tolta.

     

    MIL OSI Europe News

  • MIL-OSI Russia: HSE experts researched how AI specialists are trained

    Translation. Region: Russian Federation –

    Source: State University Higher School of Economics – State University Higher School of Economics –

    Russian universities are noticeably differentiated in their training in the field of AI. More than half of all students in the AI profile are concentrated in 18 organizations that implement specialized programs and offer the most widespread and at the same time selective programs (about 4% of the surveyed organizations).

    In general, the selectivity of programs in the AI profile is higher than that of programs containing a module on AI, programs in the field of information technology (IT), and bachelor’s and specialist programs in general, and this applies to most large groups of specialties and areas of training. Programs in the field of AI in mathematical and technical sciences are distinguished by increased selectivity in the selection of applicants.

    A number of regions entered the leading groups (with indicator values above the Russian average) both in terms of student coverage by AI-focused programs and programs with an AI module. These include Moscow and St. Petersburg, Rostov, Vologda, Arkhangelsk, Chelyabinsk, Samara, Penza, and Moscow regions. The situation with AI technology training in the regions is directly affected by the degree of AI penetration into their economies. The inequality of opportunities for providing AI technology training is partly explained by the uneven territorial distribution of IT organizations engaged in the development of AI products. However, in a number of cases, the development of AI education significantly lags behind the level of AI implementation in the regional economy. This is due, in particular, to the use of ready-made solutions created by specialists from other constituent entities of the Russian Federation, which indicates that there is a demand for AI developments in such regions and a need to increase the training of their own personnel in the field of AI.

    The provision of teachers in the field of AI in the absolute majority of the universities under consideration exceeds 90%. At the same time, the gap in the values of the indicator between the universities that train specialized specialists is not so large as to conclude that the shortage of personnel plays a key role in their differentiation by the level of development of training in the field of AI. However, attention is drawn to the significantly higher level of shortage of personnel of the appropriate qualifications in universities that do not implement specialized programs, but have included AI modules in other programs. Thus, it can be assumed that organizations with experience in implementing specialized programs have formed teams of teachers of AI disciplines, while other universities have not yet fully succeeded in solving this problem.

    A specialized digital infrastructure — digital equipment and content — plays an important role in training highly qualified specialists in the field of AI. In all clusters of universities considered in the report, formed depending on the volume of training in AI-related programs, there is a shortage of digital resources, primarily in terms of computing power based on graphics accelerators, which are key for tasks related to AI. Universities with experience in training specialists in specialized programs are better provided with content than with equipment. Organizations that provide training only within the AI module are equipped with both approximately equally and, unfortunately, insufficiently.

    Universities that are just beginning to master the AI field have such a pronounced deficit of the digital resources necessary for this that it practically does not allow them to develop programs in the relevant profile and significantly complicates practice-oriented training within the AI modules. The lack of specialized digital infrastructure, therefore, can be the main obstacle to the development of training of specialists in the field of AI in universities.

    Please note: This information is raw content directly from the source of the information. It is exactly what the source states and does not reflect the position of MIL-OSI or its clients.

    MIL OSI Russia News

  • MIL-OSI: Leading Independent Proxy Advisory Firm Glass Lewis Joins ISS in Recommending that Territorial Shareholders Vote “FOR” Merger with Hope Bancorp

    Source: GlobeNewswire (MIL-OSI)

    Glass Lewis Recognizes the Value Creation and Additional Upside that the Hope Bancorp Merger Provides to Territorial Shareholders

    Glass Lewis Acknowledges the Substantial Concerns and Risks Posed by Blue Hill’s Secrecy, Lack of Transparency and the Absence of Crucial, Material Information

    Glass Lewis Agrees with Board’s Decision Not to Consider the Blue Hill Preliminary Indication of Interest a Superior Proposal

    Territorial Board Urges Shareholders to Follow the Recommendations from Glass Lewis and ISS and Vote “FOR” the Hope Bancorp Merger TODAY

    HONOLULU, Oct. 25, 2024 (GLOBE NEWSWIRE) — Territorial Bancorp Inc. (NASDAQ: TBNK) (“Territorial” or the “Company”) today announced that leading independent proxy advisory firm Glass, Lewis & Co., LLC (“Glass Lewis”) has joined Institutional Shareholder Services (“ISS”) in recommending that Territorial shareholders vote “FOR” the Company’s pending merger with Hope Bancorp, Inc. (NASDAQ: HOPE) (“Hope Bancorp”).

    The Company’s Special Meeting of Stockholders to vote on the transaction is scheduled to be held on November 6, 2024 at 8:30am, Hawai‘i Time. Time is short. The Special Meeting is fast approaching. Territorial shareholders are urged to vote TODAY. Voting is simple. For more information, visit the Company’s website at https://www.territorialandhopecombination.com.

    Commenting on the Glass Lewis and ISS reports, Territorial issued the following statement:

    The Territorial Board of Directors and management team collectively own 9.2% of Territorial’s outstanding shares. We are confident that the Hope Bancorp transaction is the best path forward for Territorial, our shareholders, customers, employees and the local communities we serve. We have already voted all of our shares FOR the transaction, and we urge our fellow Territorial shareholders to join us and also follow the recommendations from the Territorial Board, Glass Lewis and ISS by voting FOR the Hope Bancorp transaction today.

    Glass Lewis stated in its October 24, 2024 reporti:

    On the favorable financial aspects associated with the Hope Bancorp merger:

    • “Since the merger consideration in the proposed Hope transaction solely comprises Hope shares, current Territorial shareholders will have the opportunity to benefit from ongoing participation in a profitable, enlarged bank that is expected to be better equipped, compared to Territorial on a standalone basis, to work through various challenges and headwinds amid an uncertain economic environment.”
    • “From a quantitative perspective, the results of the dividend discount model analysis performed by KBW suggest that the implied value of the proposed Exchange Ratio is relatively favorable.”

    On the uncertainty, risks and concerns associated with Blue Hill’s preliminary indication of interest, including its lack of financing, the secrecy of its investors and doubts about its ability to close a transaction at all:

    • “We also believe that, to date, Blue Hill has provided insufficient disclosures to the Board and to shareholders regarding key details of its proposal.”
    • “In our view, the lack of such crucial information, which Blue Hill insists on keeping confidential, coupled with the uncertainties connected with Blue Hill’s need to conduct due diligence to confirm its offer price, casts serious doubts as to the risks and closing certainty of Blue Hill’s proposed deal.”
    • “Blue Hill has not provided any form of supporting evidence as to why the Blue Hill Investors would not be considered as ‘acting in concert’ by the relevant regulatory authorities, which may validate the Board’s concerns regarding the complexity and uncertainties connected to the Blue Hill Proposal.”

    In affirming that the Territorial Board reached the right conclusion with respect to the Blue Hill preliminary indication of interest and the determination that it is not a superior proposal or likely to lead to a proposal that is superior to the Hope Bancorp transaction:

    • “any direct engagement between the Board and Blue Hill could be seen as a breach of the covenants in the Merger Agreement.”
    • “we ultimately believe the Board’s decision not to deem the Blue Hill Proposal a superior proposal to be the most prudent approach, particularly given Blue Hill’s lack of serious attempts to address the Board’s concerns regarding the uncertainties of the Blue Hill Proposal.”
    • “We acknowledge that the Blue Hill Proposal offers a meaningfully higher headline price to Territorial shareholders…However, we believe the Board has raised valid concerns regarding the uncertainty and significant conditionality of the Blue Hill Proposal.”
    Your Vote is Important

    Territorial Shareholders are Urged to Vote FOR the Hope Bancorp Merger TODAY.

    Voting is quick and easy.
    Vote well in advance of the Special Meeting on November 6, 2024 at 8:30 a.m. HST.

    Call toll-free:
    (888) 742-1305
    Banks and brokers should call:
    (516) 933-3100
    Email: info@laurelhill.com
    Electronically: www.proxyvote.com


    About Us

    Territorial Bancorp Inc., headquartered in Honolulu, Hawaiʻi, is the stock holding company for Territorial Savings Bank. Territorial Savings Bank is a state-chartered savings bank which was originally chartered in 1921 by the Territory of Hawaiʻi. Territorial Savings Bank conducts business from its headquarters in Honolulu, Hawaiʻi, and has 28 branch offices in the state of Hawaiʻi. For additional information, please visit https://www.tsbhawaii.bank/.

    Additional Information about the Hope Merger and Where to Find It

    In connection with the proposed Hope Merger, Hope has filed with the U.S. Securities and Exchange Commission (the “SEC”) a Registration Statement on Form S-4, containing the Proxy Prospectus, which has been mailed or otherwise delivered to Territorial’s stockholders on or about August 29, 2024, as supplemented September 12, 2024. Hope and Territorial may file additional relevant materials with the SEC. INVESTORS AND STOCKHOLDERS ARE URGED TO READ THE PROXY PROSPECTUS, AND ANY OTHER RELEVANT DOCUMENTS THAT ARE FILED OR FURNISHED OR WILL BE FILED OR FURNISHED WITH THE SEC, AS WELL AS ANY AMENDMENTS OR SUPPLEMENTS TO THOSE DOCUMENTS, CAREFULLY AND IN THEIR ENTIRETY BECAUSE THEY CONTAIN OR WILL CONTAIN IMPORTANT INFORMATION ABOUT THE PROPOSED TRANSACTION AND RELATED MATTERS. You may obtain any of the documents filed with or furnished to the SEC by Hope or Territorial at no cost from the SEC’s website at www.sec.gov.

    Forward-Looking Statements

    Some statements in this news release may constitute forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. These forward-looking statements relate to, among other things, expectations regarding the low-cost core deposit base, diversification of the loan portfolio, expansion of market share, capital to support growth, strengthened opportunities, enhanced value, geographic expansion, and statements about the proposed transaction being immediately accretive. Forward-looking statements include, but are not limited to, statements preceded by, followed by or that include the words “will,” “believes,” “expects,” “anticipates,” “intends,” “plans,” “estimates” or similar expressions. With respect to any such forward-looking statements, Territorial Bancorp claims the protection provided for in the Private Securities Litigation Reform Act of 1995. These statements involve risks and uncertainties. Hope Bancorp’s actual results, performance or achievements may differ significantly from the results, performance or achievements expressed or implied in any forward-looking statements. The closing of the proposed transaction is subject to regulatory approvals, the approval of Territorial Bancorp stockholders, and other customary closing conditions. There is no assurance that such conditions will be met or that the proposed merger will be consummated within the expected time frame, or at all. If the transaction is consummated, factors that may cause actual outcomes to differ from what is expressed or forecasted in these forward-looking statements include, among things: difficulties and delays in integrating Hope Bancorp and Territorial Bancorp and achieving anticipated synergies, cost savings and other benefits from the transaction; higher than anticipated transaction costs; deposit attrition, operating costs, customer loss and business disruption following the merger, including difficulties in maintaining relationships with employees and customers, may be greater than expected; and required governmental approvals of the merger may not be obtained on its proposed terms and schedule, or without regulatory constraints that may limit growth. Other risks and uncertainties include, but are not limited to: possible further deterioration in economic conditions in Hope Bancorp’s or Territorial Bancorp’s areas of operation or elsewhere; interest rate risk associated with volatile interest rates and related asset-liability matching risk; liquidity risks; risk of significant non-earning assets, and net credit losses that could occur, particularly in times of weak economic conditions or times of rising interest rates; the failure of or changes to assumptions and estimates underlying Hope Bancorp’s or Territorial Bancorp’s allowances for credit losses; potential increases in deposit insurance assessments and regulatory risks associated with current and future regulations; the outcome of any legal proceedings that may be instituted against Hope Bancorp or Territorial Bancorp; the risk that any announcements relating to the proposed transaction could have adverse effects on the market price of the common stock of either or both parties to the proposed transaction; and diversion of management’s attention from ongoing business operations and opportunities. For additional information concerning these and other risk factors, see Hope Bancorp’s and Territorial Bancorp’s most recent Annual Reports on Form 10-K. Hope Bancorp and Territorial Bancorp do not undertake, and specifically disclaim any obligation, to update any forward-looking statements to reflect the occurrence of events or circumstances after the date of such statements except as required by law.

    Investor / Media Contacts:
    Walter Ida
    SVP, Director of Investor Relations
    808-946-1400
    walter.ida@territorialsavings.net


    i Permission to use quotes neither sought nor obtained

    The MIL Network

  • MIL-OSI Global: How Harris and Trump’s economic pledges stack up

    Source: The Conversation – UK – By Conor O’Kane, Senior Lecturer in Economics, Bournemouth University

    kovop / Shutterstock

    We’re now in the home straight of the US election race, and the economy looks set to play a key role in deciding who will be sat in the White House come January 2025. Despite enjoying strong economic and employment growth since the pandemic, US voters have been telling pollsters that the high cost of living is what bothers them most about life in America right now.

    Both candidates are seeking to address voter’s concerns. The Democratic candidate, Kamala Harris, and her Republican counterpart, Donald Trump, agree on virtually nothing. But what they do agree on is that the federal government should be playing a bigger role in making things more affordable for American consumers.

    That said, there are significant differences in how the candidates propose to bring down prices across the economy. Trump wants to force companies into creating jobs on US soil. And Harris wishes to break down the power that some companies have amassed in the marketplace.

    What has Trump pledged?

    At a campaign rally on September 19, Trump said: “Together, we will deliver low taxes, low regulations, low energy costs, low interest rates and low inflation so that everyone can afford groceries, a car and a home”.

    Trump is promising to reduce regulation, as well as launching another big round of tax cuts for individual people and businesses. He has also pledged to make income from tips, overtime and social security payments exempt from tax altogether.

    But, somewhat ironically, Trump’s overall economic approach is somewhat un-Republican. We traditionally tend to think of Republicans as the “take your hands off my economy” party. However, many of Trump’s economic policy pledges are very hands on.

    He has promised tariffs of up to 20% on goods imported into the US, and 60% on all goods from China. His rationale is that by making imported goods more expensive, US companies will be encouraged to make more goods domestically, so American workers will benefit in terms of millions more well-paid manufacturing jobs at home.

    Trump has also said that, if elected, he will direct his cabinet to reduce energy prices and auto insurance by at least 50%. “Prices will come down. You just watch. They’ll come down and they’ll come down fast”, he claimed during a speech in August.

    He plans to intervene in the housing market, too. Trump’s strategy for lowering housing costs focuses on stopping “the unsustainable invasion of illegal aliens”, and he has pledged to deport up to 11 million immigrants who currently live in the US. This, he says, will result in a dramatic reduction in demand and bring down the cost of housing.

    Perhaps Trump’s most striking policy is in relation to the Federal Reserve. He wants the elected president to have a greater say over the interest rate policy for the US economy. Lower interest rates would mean lower borrowing costs, which should subsequently reduce mortgage prices.

    But a lot of economists, including former US treasury secretary Larry Summers, warn that this approach could backfire. When executives start to intervene in independent central banking, you risk setting off a spiral of rapid inflation.

    What has Harris pledged?

    A lot of Americans believe that grocery chains and food companies are ripping them off. Food prices are up by about 25% compared to before the pandemic, and a recent poll suggests that American consumers’ view of the grocery industry has sunk to a two-decade low.

    Harris has promised to address this. At a campaign event in Raleigh, North Carolina, in August, she said: “As president, I will take on the high costs that matter most to most Americans, like the cost of food”.

    She believes the food industry is too concentrated, where just a few firms have a lot of power. She wants the food industry to become more competitive, which would mean lower prices for US consumers.

    Harris has proposed giving government money to start-up meatpacking companies to help them challenge the dominant players. And she also wants the Federal Trade Commission to look at mergers and other forms of consolidation in the food industry more aggressively.

    This may include giving the commission additional regulatory and enforcement powers to actively look for and stop anti-competitive behaviour. For example, Harris has proposed the first federal ban on price gouging to stop companies exploiting crises to charge people more for essentials.

    Harris has promised to break the stranglehold large corporations have over US food supply.
    Bartolomiej Pietrzyk / Shutterstock

    Harris, like Trump, has also promised to address housing costs. She wants to use federal dollars to encourage developers to build, and has set an ambitious target of building 3 million new housing units over her four-year term.

    Her idea is that one way to bring down housing costs is to build a lot more housing. She also wants to give US$25,000 (£19,200) to every first-time home buyer in the country to help them with a down payment.

    To help reduce child poverty, Harris says she will restore Biden’s generous tax credit for parents. And, on top of that, she wants to introduce a US$6,000 tax credit for parents of newborns, as well as planning to cap childcare costs at 7% of household income.

    Both candidates have clearly listened to voters’ concerns about the cost of living, but there is little detail on how they will fund the giveaways set out in their economic policy pledges.

    Harris says there will be no tax increases for anybody who makes less than US$400,000 a year. However, she has in mind a whole bunch of taxes on millionaires and big companies – the sort that Democrats are fond of targeting. Trump, on the other hand, has not set out how he will pay for any of his policies.

    More than 20 US recipients of the Nobel prize for economics signed a letter on October 23 that called Harris’ economic agenda “vastly superior” to Trump’s.

    But we don’t have long to wait to see which candidate’s economic pledges have resonated most with US voters.

    Conor O’Kane does not work for, consult, own shares in or receive funding from any company or organisation that would benefit from this article, and has disclosed no relevant affiliations beyond their academic appointment.

    ref. How Harris and Trump’s economic pledges stack up – https://theconversation.com/how-harris-and-trumps-economic-pledges-stack-up-241644

    MIL OSI – Global Reports

  • MIL-OSI Global: Will you get an extra hour’s sleep this weekend? Probably not, new research says

    Source: The Conversation – UK – By Melanie de Lange, Epidemiology PhD Student, University of Bristol

    Science says you may not actually get that full hour’s extra sleep you were looking forward to. kattyart/Shutterstock

    A lot of people dread the clocks going back an hour in winter – but reassure themselves that at least they’ll get an extra hour’s sleep. However, in my new study my colleagues and I found most people do not (or can not) take advantage of the full extra hour of sleep in autumn.

    Daylight saving time is the practice of moving the clocks one hour forward in spring and one hour back in autumn. It was introduced during the first world war as a way to cut energy costs. It is in operation in around 70 countries and affects a quarter of the world’s population.

    This “springing forward” and “falling back” is widely thought of a loss of one hour of sleep in spring and a gain of one hour of sleep in autumn. However, research suggests we may lose sleep for about a week after both clock changes as we struggle to adapt to the new time.

    Previous studies have relied on people reporting their own sleep patterns in diaries or surveys. However, this may not be accurate because people sometimes forget or lie about how long they slept for. Recent research has overcome this problem by using activity monitors to record people’s sleep over the clock changes. But until now researchers have only been able to do this in a small number of people.

    Our new study explored the effects of the clock changes on objectively-measured sleep duration in a large number of people who are signed up to the UK Biobank. This is a research database with lifestyle and health information from half a million UK participants. We analysed sleep data from 11,800 people who wore activity monitors for one or more days during the two weeks surrounding the spring and autumn clock changes in 2013-2015.

    Sleep is important for health and wellbeing.
    Lizavetta/Shutterstock

    We found that people slept for just over half an hour more on the Sunday of the autumn clock change than the surrounding Sundays. But people slept for around an hour less of the Sunday of the spring clock change.

    Previous research suggests people sleep for less on the weekdays immediately after the clock changes than the weekdays before. In contrast, this study found that, overall, people were catching up on sleep on the Monday to Friday after both clock changes. This trend was stronger in spring after people had lost an hour of sleep. On average people slept seven minutes more per weeknight after the spring clock change and three minutes more per weeknight after the autumn clock change than the previous week.

    This suggests that effects of the clock changes on sleep duration are more short lived than earlier studies reported. However, when we broke the data down, we found that this pattern of catching up on sleep was not seen in women. In fact, women often slept for less on the weekdays after the clock changes than before. This could be because women experience higher levels of insomnia and sleep difficulties and that these problems are exacerbated by the clock changes. Women are thought to struggle more with insomnia than men due to a number of reasons, including hormonal fluctuations, societal factors and higher rates of depression and anxiety.

    We also found that, in autumn, older people and the retired slept less on the weekdays after the transition than before. It may be that older people are particularly vulnerable to their sleep being disrupted by the clock changes because sleep becomes lighter and more fragmented as we age.

    Why does this matter?

    Although short lived, the sleep loss seen over the spring clock change in our study has consequences for health, as just one night of bad sleep has been associated with a decline in mental and physical health.

    Research has found that the clock changes themselves are associated with an increase in heart attacks, strokes, traffic accidents and depression. Sleep plays a vital role keeping your heart healthy, as well as maintaining emotional regulation. The amount of sleep you get also affects your reaction times and how likely you are to take risks.

    Concern over the harmful effects of the clock changes on health has prompted sleep scientists to call for the clock changes to be abolished. Indeed, a growing number of countries – including the US, Jordan, Mexico, Ukraine and those in the EU – have made plans to do just that.

    But stopping the clock changes is not straightforward. Plans in both the US and EU have stalled, with disagreements over what time to adopt permanently. Sleep experts argue that staying on winter (standard) time is best for health as this prioritises morning light which helps wake you up, resets your biological rhythm each day and makes it easier for you to fall asleep in the evening. Meanwhile, politicians are campaigning for permanent summer time due to the economic benefits they think it has.

    The UK finds itself in an interesting position. No longer part of the EU, it is not duty bound to stop the clock changes at the same time as the EU. But being out of sync with the rest of Europe (including the Republic of Ireland) could have economic and logistical implications.

    The UK government will probably review its daylight saving time policy as and when the EU finally ends the clock changes. It is crucial that they take the effects on sleep and health into account when this happens.

    Melanie de Lange receives funding from Wellcome.

    ref. Will you get an extra hour’s sleep this weekend? Probably not, new research says – https://theconversation.com/will-you-get-an-extra-hours-sleep-this-weekend-probably-not-new-research-says-241285

    MIL OSI – Global Reports

  • MIL-OSI Asia-Pac: Asset management task force set up

    Source: Hong Kong Information Services

    The Task Force on Promoting the Development of Asset & Wealth Management, chaired by Secretary for Financial Services & the Treasury Christopher Hui, was established and convened its first meeting today.

    The 2024 Policy Address has set out the need to further enhance Hong Kong’s status as an international asset and wealth management (WAM) centre. The Government will consult the industry on the proposal to add qualifying transactions eligible for tax concessions for funds, single-family offices, etc. At its first meeting, the task force had a focused discussion on the proposed enhancements.

    As of end-2023, assets under management in Hong Kong reached over HK$31 trillion, and net fund inflows of close to HK$390 billion were registered, representing a year-on-year increase of over 3.4 times.

    Mr Hui pointed out that funding sourced from non-Hong Kong investors has consistently accounted for a high percentage, reflecting the confidence of international investors in Hong Kong’s WAM industry.

    Market research also estimates that Hong Kong is home to about 2,700 single-family offices, with over half of them set up by ultra-high-net-worth-individuals with a wealth of US$50 million or above.

    In view of the development trends in global finance, Hong Kong will continue to consolidate and enhance its competitive advantages and pursue continuous reforms.

    With the task force bringing together industry leaders and professionals, Mr Hui added that he believed their valuable advice would help propel the long-term development of the WAM industry.

    MIL OSI Asia Pacific News

  • MIL-OSI: First Hawaiian, Inc. Reports Third Quarter 2024 Financial Results and Declares Dividend

    Source: GlobeNewswire (MIL-OSI)

    HONOLULU, Oct. 25, 2024 (GLOBE NEWSWIRE) — First Hawaiian, Inc. (NASDAQ:FHB), (“First Hawaiian” or the “Company”) today reported financial results for its quarter ended September 30, 2024.

    “I’m happy to report that we had a very good third quarter,” said Bob Harrison, Chairman, President, and CEO. “Net interest income and noninterest income increased over the prior quarter, expenses were well controlled and credit quality remained excellent. I’m also pleased to report that during the third quarter, Moody’s reviewed and reaffirmed all of First Hawaiian Bank’s long-term credit and deposit ratings.”

    On October 23, 2024, the Company’s Board of Directors declared a quarterly cash dividend of $0.26 per share. The dividend will be payable on November 29, 2024, to stockholders of record at the close of business on November 18, 2024.

    Third Quarter 2024 Highlights:

    • Net income of $61.5 million, or $0.48 per diluted share
    • Total loans and leases decreased $118.5 million versus the prior quarter
    • Total deposits decreased $91.1 million versus the prior quarter
    • Net interest margin increased 3 basis points to 2.95%
    • Recorded a $7.4 million provision for credit losses
    • Board of Directors declared a quarterly dividend of $0.26 per share

    Balance Sheet

    Total assets were $23.8 billion as of September 30, 2024, a decrease of $211.5 million, or 0.9%, from $24.0 billion as of June 30, 2024.

    Gross loans and leases were $14.2 billion as of September 30, 2024, a decrease of $118.5 million, or 0.8%, from $14.4 billion as of June 30, 2024.

    Total deposits were $20.2 billion as of September 30, 2024, a decrease of $91.1 million, or 0.4%, from $20.3 billion as of June 30, 2024.

    Net Interest Income

    Net interest income for the third quarter of 2024 was $156.7 million, an increase of $3.9 million, or 2.5%, compared to $152.9 million for the prior quarter.

    The net interest margin was 2.95% in the third quarter of 2024, an increase of 3 basis points compared to 2.92% in the prior quarter.

    Provision Expense

    During the quarter ended September 30, 2024, we recorded a $7.4 million provision for credit losses. In the quarter ended June 30, 2024, we recorded a $1.8 million provision for credit losses.

    Noninterest Income

    Noninterest income was $53.3 million in the third quarter of 2024, an increase of $1.5 million compared to noninterest income of $51.8 million in the prior quarter.

    Noninterest Expense

    Noninterest expense was $126.1 million in the third quarter of 2024, an increase of $4.1 million compared to noninterest expense of $122.1 million in the prior quarter.

    The efficiency ratio was 59.8% and 59.2% for the quarters ended September 30, 2024 and June 30, 2024, respectively.

    Taxes

    The effective tax rate was 19.6% and 23.3% for the quarters ended September 30, 2024 and June 30, 2024, respectively.

    Asset Quality

    The allowance for credit losses was $163.7 million, or 1.15% of total loans and leases, as of September 30, 2024, compared to $160.5 million, or 1.12% of total loans and leases, as of June 30, 2024. The reserve for unfunded commitments was $33.7 million as of September 30, 2024 compared to $33.4 million as of June 30, 2024. Net charge-offs were $3.9 million, or 0.11% of average loans and leases on an annualized basis, for the quarter ended September 30, 2024, compared to net charge-offs of $2.5 million, or 0.07% of average loans and leases on an annualized basis, for the quarter ended June 30, 2024. Total non-performing assets were $17.8 million, or 0.13% of total loans and leases and other real estate owned, as of September 30, 2024, compared to $18.0 million, or 0.13% of total loans and leases and other real estate owned, as of June 30, 2024.

    Capital

    Total stockholders’ equity increased $97.7 million in the third quarter, and stood at $2.6 billion on September 30, 2024 and June 30, 2024.

    The tier 1 leverage, common equity tier 1 and total capital ratios were 9.14%, 13.03% and 14.25%, respectively, on September 30, 2024, compared with 9.03%, 12.73% and 13.92%, respectively, on June 30, 2024.

    The Company did not repurchase any shares in the third quarter.

    First Hawaiian, Inc.

    First Hawaiian, Inc. (NASDAQ:FHB) is a bank holding company headquartered in Honolulu, Hawaii. Its principal subsidiary, First Hawaiian Bank, founded in 1858 under the name Bishop & Company, is Hawaii’s oldest and largest financial institution with branch locations throughout Hawaii, Guam and Saipan. The company offers a comprehensive suite of banking services to consumer and commercial customers including deposit products, loans, wealth management, insurance, trust, retirement planning, credit card and merchant processing services. Customers may also access their accounts through ATMs, online and mobile banking channels. For more information about First Hawaiian, Inc., visit the Company’s website, www.fhb.com.

    Conference Call Information

    First Hawaiian will host a conference call to discuss the Company’s results today at 1:00 p.m. Eastern Time, 7:00 a.m. Hawaii Time.

    To access the call by phone, participants will need to click on the following registration link: https://register.vevent.com/register/BIec8273f35cc340bcb13d27eae17d127b, register for the conference call, and then you will receive the dial-in number and a personalized PIN code. To avoid delays, we encourage participants to dial into the conference call fifteen minutes ahead of the scheduled start time.

    A live webcast of the conference call, including a slide presentation, will be available at the following link: www.fhb.com/earnings. The archive of the webcast will be available at the same location.

    Forward-Looking Statements
    This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements reflect our current views with respect to, among other things, future events and our financial performance. These statements are often, but not always, made through the use of words or phrases such as “may”, “might”, “should”, “could”, “predict”, “potential”, “believe”, “expect”, “continue”, “will”, “anticipate”, “seek”, “estimate”, “intend”, “plan”, “projection”, “would”, “annualized” and “outlook”, or the negative version of those words or other comparable words or phrases of a future or forward-looking nature. These forward-looking statements are not historical facts, and are based on current expectations, estimates and projections about our industry, management’s beliefs and certain assumptions made by management, many of which, by their nature, are inherently uncertain and beyond our control. Accordingly, we caution you that any such forward-looking statements are not guarantees of future performance and are subject to risks, assumptions, estimates and uncertainties that are difficult to predict. Although we believe that the expectations reflected in these forward-looking statements are reasonable as of the date made, there can be no assurance that actual results will not prove to be materially different from the results expressed or implied by the forward-looking statements. A number of important factors could cause actual results or performance to differ materially from the forward-looking statements, including (without limitation) the risks and uncertainties associated with the domestic and global economic environment and capital market conditions and other risk factors. For a discussion of some of these risks and important factors that could affect our future results and financial condition, see our U.S. Securities and Exchange Commission (“SEC”) filings, including, but not limited to, our Annual Report on Form 10-K for the year ended December 31, 2023 and our Quarterly Report on Form 10-Q for the quarters ended March 31, 2024 and June 30, 2024.

    Use of Non-GAAP Financial Measures
    Return on average tangible assets, return on average tangible stockholders’ equity, tangible book value per share and tangible stockholders’ equity to tangible assets are non-GAAP financial measures. We believe that these measurements are useful for investors, regulators, management and others to evaluate financial performance and capital adequacy relative to other financial institutions. Although these non-GAAP financial measures are frequently used by stakeholders in the evaluation of a company, they have limitations as analytical tools and should not be considered in isolation or as a substitute for analysis of our results or financial condition as reported under GAAP. Investors should consider our performance and capital adequacy as reported under GAAP and all other relevant information when assessing our performance and capital adequacy.

    Table 14 at the end of this document provides a reconciliation of these non-GAAP financial measures with their most directly comparable GAAP measures.

                                     
    Financial Highlights   Table 1
        For the Three Months Ended   For the Nine Months Ended  
        September 30,    June 30,    September 30,    September 30,   
    (dollars in thousands, except per share data)   2024   2024   2023   2024   2023  
    Operating Results:                                
    Net interest income   $ 156,707   $ 152,851   $ 157,148   $ 463,985   $ 484,334  
    Provision for credit losses     7,400     1,800     7,500     15,500     21,300  
    Noninterest income     53,288     51,768     46,097     156,427     142,468  
    Noninterest expense     126,147     122,086     119,383     377,046     358,831  
    Net income     61,492     61,921     58,221     177,633     187,481  
    Basic earnings per share     0.48     0.48     0.46     1.39     1.47  
    Diluted earnings per share     0.48     0.48     0.46     1.38     1.47  
    Dividends declared per share     0.26     0.26     0.26     0.78     0.78  
    Dividend payout ratio     54.17 %   54.17 %   56.52 %   56.52 %   53.06 %
    Performance Ratios(1):                                
    Net interest margin     2.95 %   2.92 %   2.86 %   2.93 %   2.96 %
    Efficiency ratio     59.77 %   59.22 %   58.31 %   60.38 %   56.86 %
    Return on average total assets     1.02 %   1.04 %   0.93 %   0.99 %   1.01 %
    Return on average tangible assets (non-GAAP)(2)     1.06 %   1.08 %   0.97 %   1.03 %   1.06 %
    Return on average total stockholders’ equity     9.45 %   9.91 %   9.76 %   9.37 %   10.72 %
    Return on average tangible stockholders’ equity (non-GAAP)(2)     15.35 %   16.42 %   16.84 %   15.43 %   18.68 %
    Average Balances:                                
    Average loans and leases   $ 14,304,806   $ 14,358,049   $ 14,349,402   $ 14,325,065   $ 14,238,309  
    Average earning assets     21,328,882     21,247,707     22,060,480     21,352,739     22,040,704  
    Average assets     24,046,696     23,958,913     24,727,893     24,064,208     24,699,826  
    Average deposits     20,367,805     20,308,028     21,212,102     20,415,746     21,245,055  
    Average stockholders’ equity     2,588,806     2,512,471     2,367,422     2,532,911     2,337,292  
    Market Value Per Share:                                
    Closing     23.15     20.76     18.05     23.15     18.05  
    High     26.18     22.68     22.59     26.18     28.28  
    Low     20.28     19.48     17.41     19.48     15.08  
                               
        As of   As of   As of   As of  
        September 30,    June 30,    December 31,    September 30,   
    (dollars in thousands, except per share data)   2024   2024   2023   2023  
    Balance Sheet Data:                          
    Loans and leases   $ 14,241,370   $ 14,359,899   $ 14,353,497   $ 14,332,335  
    Total assets     23,780,285     23,991,791     24,926,474     24,912,524  
    Total deposits     20,227,702     20,318,832     21,332,657     21,511,489  
    Short-term borrowings     250,000     500,000     500,000     500,000  
    Total stockholders’ equity     2,648,034     2,550,312     2,486,066     2,351,009  
                               
    Per Share of Common Stock:                          
    Book value   $ 20.71   $ 19.94   $ 19.48   $ 18.42  
    Tangible book value (non-GAAP)(2)     12.92     12.16     11.68     10.62  
                               
    Asset Quality Ratios:                          
    Non-accrual loans and leases / total loans and leases     0.13 %   0.13 %   0.13 %   0.10 %
    Allowance for credit losses for loans and leases / total loans and leases     1.15 %   1.12 %   1.09 %   1.08 %
                               
    Capital Ratios:                          
    Common Equity Tier 1 Capital Ratio     13.03 %   12.73 %   12.39 %   12.21 %
    Tier 1 Capital Ratio     13.03 %   12.73 %   12.39 %   12.21 %
    Total Capital Ratio     14.25 %   13.92 %   13.57 %   13.38 %
    Tier 1 Leverage Ratio     9.14 %   9.03 %   8.64 %   8.45 %
    Total stockholders’ equity to total assets     11.14 %   10.63 %   9.97 %   9.44 %
    Tangible stockholders’ equity to tangible assets (non-GAAP)(2)     7.25 %   6.76 %   6.23 %   5.67 %
                               
    Non-Financial Data:                          
    Number of branches     48     48     50     50  
    Number of ATMs     273     272     275     294  
    Number of Full-Time Equivalent Employees     2,022     2,032     2,089     2,087  

    (1)   Except for the efficiency ratio, amounts are annualized for the three and nine months ended September 30, 2024 and 2023 and three months ended June 30, 2024.

    (2)   Return on average tangible assets, return on average tangible stockholders’ equity, tangible book value per share and tangible stockholders’ equity to tangible assets are non-GAAP financial measures. We compute our return on average tangible assets as the ratio of net income to average tangible assets, which is calculated by subtracting (and thereby effectively excluding) amounts related to the effect of goodwill from our average total assets. We compute our return on average tangible stockholders’ equity as the ratio of net income to average tangible stockholders’ equity, which is calculated by subtracting (and thereby effectively excluding) amounts related to the effect of goodwill from our average total stockholders’ equity. We compute our tangible book value per share as the ratio of tangible stockholders’ equity to outstanding shares. Tangible stockholders’ equity is calculated by subtracting (and thereby effectively excluding) amounts related to the effect of goodwill from our total stockholders’ equity. We compute our tangible stockholders’ equity to tangible assets as the ratio of tangible stockholders’ equity to tangible assets, each of which we calculate by subtracting (and thereby effectively excluding) the value of our goodwill. For a reconciliation to the most directly comparable GAAP financial measure, see Table 14, GAAP to Non-GAAP Reconciliation.

                                   
    Consolidated Statements of Income   Table 2
        For the Three Months Ended   For the Nine Months Ended
        September 30,    June 30,    September 30,    September 30, 
    (dollars in thousands, except per share amounts)   2024   2024   2023   2024   2023
    Interest income                              
    Loans and lease financing   $ 205,682   $ 202,068   $ 194,098   $ 607,594   $ 551,777
    Available-for-sale investment securities     12,850     14,143     18,426     41,539     55,208
    Held-to-maturity investment securities     16,937     17,575     18,271     52,305     55,510
    Other     14,527     11,148     9,004     38,444     20,054
    Total interest income     249,996     244,934     239,799     739,882     682,549
    Interest expense                              
    Deposits     87,500     85,609     74,651     257,252     176,006
    Short-term and long-term borrowings     5,397     5,953     6,838     17,303     20,057
    Other     392     521     1,162     1,342     2,152
    Total interest expense     93,289     92,083     82,651     275,897     198,215
    Net interest income     156,707     152,851     157,148     463,985     484,334
    Provision for credit losses     7,400     1,800     7,500     15,500     21,300
    Net interest income after provision for credit losses     149,307     151,051     149,648     448,485     463,034
    Noninterest income                              
    Service charges on deposit accounts     7,783     7,793     7,524     23,122     22,001
    Credit and debit card fees     17,533     15,861     15,748     49,567     47,507
    Other service charges and fees     11,790     11,036     9,546     32,730     27,764
    Trust and investment services income     9,077     9,426     9,742     28,857     28,804
    Bank-owned life insurance     4,502     3,360     1,872     12,148     10,263
    Other     2,603     4,292     1,665     10,003     6,129
    Total noninterest income     53,288     51,768     46,097     156,427     142,468
    Noninterest expense                              
    Salaries and employee benefits     59,563     57,737     55,937     176,562     169,873
    Contracted services and professional fees     14,634     16,067     16,393     46,440     50,204
    Occupancy     6,945     7,377     6,711     21,263     22,047
    Equipment     13,078     13,196     11,826     39,687     32,562
    Regulatory assessment and fees     3,412     3,814     4,149     15,346     11,661
    Advertising and marketing     1,813     1,765     2,289     6,190     6,174
    Card rewards program     8,678     8,719     8,358     25,905     24,124
    Other     18,024     13,411     13,720     45,653     42,186
    Total noninterest expense     126,147     122,086     119,383     377,046     358,831
    Income before provision for income taxes     76,448     80,733     76,362     227,866     246,671
    Provision for income taxes     14,956     18,812     18,141     50,233     59,190
    Net income   $ 61,492   $ 61,921   $ 58,221   $ 177,633   $ 187,481
    Basic earnings per share   $ 0.48   $ 0.48   $ 0.46   $ 1.39   $ 1.47
    Diluted earnings per share   $ 0.48   $ 0.48   $ 0.46   $ 1.38   $ 1.47
    Basic weighted-average outstanding shares     127,886,167     127,867,853     127,609,860     127,820,737     127,552,255
    Diluted weighted-average outstanding shares     128,504,035     128,262,594     127,936,440     128,362,433     127,897,829
                             
    Consolidated Balance Sheets   Table 3
        September 30,    June 30,    December 31,    September 30, 
    (dollars in thousands, except share amount)   2024   2024   2023   2023
    Assets                        
    Cash and due from banks   $ 252,209     $ 290,501     $ 185,015     $ 246,028  
    Interest-bearing deposits in other banks     820,603       824,258       1,554,882       967,400  
    Investment securities:                        
    Available-for-sale, at fair value (amortized cost: $2,290,781 as of September 30, 2024, $2,379,004 as of June 30, 2024, $2,558,675 as of December 31, 2023 and $3,172,031 as of September 30, 2023)     2,055,959       2,067,956       2,255,336       2,722,704  
    Held-to-maturity, at amortized cost (fair value: $3,475,143 as of September 30, 2024, $3,401,006 as of June 30, 2024, $3,574,856 as of December 31, 2023 and $3,433,029 as of September 30, 2023)     3,853,697       3,917,175       4,041,449       4,104,114  
    Loans held for sale           2,820       190        
    Loans and leases     14,241,370       14,359,899       14,353,497       14,332,335  
    Less: allowance for credit losses     163,700       160,517       156,533       154,795  
    Net loans and leases     14,077,670       14,199,382       14,196,964       14,177,540  
                             
    Premises and equipment, net     287,036       283,762       281,461       277,805  
    Accrued interest receivable     81,875       82,512       84,417       84,327  
    Bank-owned life insurance     490,135       486,261       479,907       477,698  
    Goodwill     995,492       995,492       995,492       995,492  
    Mortgage servicing rights     5,236       5,395       5,699       5,855  
    Other assets     860,373       836,277       845,662       853,561  
    Total assets   $ 23,780,285     $ 23,991,791     $ 24,926,474     $ 24,912,524  
    Liabilities and Stockholders’ Equity                        
    Deposits:                        
    Interest-bearing   $ 13,427,674     $ 13,461,365     $ 13,749,095     $ 13,612,493  
    Noninterest-bearing     6,800,028       6,857,467       7,583,562       7,898,996  
    Total deposits     20,227,702       20,318,832       21,332,657       21,511,489  
    Short-term borrowings     250,000       500,000       500,000       500,000  
    Retirement benefits payable     100,448       101,304       103,285       99,685  
    Other liabilities     554,101       521,343       504,466       450,341  
    Total liabilities     21,132,251       21,441,479       22,440,408       22,561,515  
                             
    Stockholders’ equity                        
    Common stock ($0.01 par value; authorized 300,000,000 shares; issued/outstanding: 141,735,601 / 127,886,167 shares as of September 30, 2024, issued/outstanding: 141,728,446 / 127,879,012 shares as of June 30, 2024, issued/outstanding: 141,340,539 / 127,618,761 shares as of December 31, 2023 and issued/outstanding: 141,330,663 / 127,609,934 shares as of September 30, 2023)     1,417       1,417       1,413       1,413  
    Additional paid-in capital     2,558,158       2,554,795       2,548,250       2,545,659  
    Retained earnings     915,062       887,176       837,859       823,895  
    Accumulated other comprehensive loss, net     (452,658 )     (519,132 )     (530,210 )     (648,731 )
    Treasury stock (13,849,434 shares as of September 30, 2024, 13,849,434 shares as of June 30, 2024, 13,721,778 shares as of December 31, 2023 and 13,720,729 shares as of September 30, 2023)     (373,945 )     (373,944 )     (371,246 )     (371,227 )
    Total stockholders’ equity     2,648,034       2,550,312       2,486,066       2,351,009  
    Total liabilities and stockholders’ equity   $ 23,780,285     $ 23,991,791     $ 24,926,474     $ 24,912,524  
                                                       
    Average Balances and Interest Rates                                            Table 4
        Three Months Ended   Three Months Ended   Three Months Ended  
        September 30, 2024   June 30, 2024   September 30, 2023  
        Average   Income/   Yield/   Average   Income/   Yield/   Average   Income/   Yield/  
    (dollars in millions)   Balance   Expense   Rate   Balance   Expense   Rate   Balance   Expense   Rate  
    Earning Assets                                                  
    Interest-Bearing Deposits in Other Banks   $ 1,020.4   $ 13.9   5.40 % $ 773.4   $ 10.5   5.45 % $ 608.6   $ 8.2   5.36 %
    Available-for-Sale Investment Securities                                                  
    Taxable     2,062.6     12.8   2.48     2,100.7     14.1   2.69     2,834.6     18.4   2.59  
    Non-Taxable     1.5       5.06     1.5       5.76     2.3       5.48  
    Held-to-Maturity Investment Securities                                                  
    Taxable     3,288.2     13.8   1.67     3,358.2     14.4   1.71     3,544.1     15.0   1.70  
    Non-Taxable     602.3     3.7   2.46     602.9     4.0   2.64     604.3     4.1   2.66  
    Total Investment Securities     5,954.6     30.3   2.03     6,063.3     32.5   2.15     6,985.3     37.5   2.14  
    Loans Held for Sale     2.2       5.64     1.0       6.58     0.4       6.63  
    Loans and Leases(1)                                                  
    Commercial and industrial     2,165.3     38.0   6.98     2,201.6     38.1   6.96     2,123.5     35.7   6.66  
    Commercial real estate     4,278.3     71.6   6.67     4,305.6     71.5   6.68     4,381.8     71.4   6.47  
    Construction     1,040.7     20.3   7.74     984.8     18.5   7.57     873.7     15.5   7.05  
    Residential:                                                  
    Residential mortgage     4,204.5     40.4   3.84     4,229.4     40.1   3.80     4,316.3     40.1   3.72  
    Home equity line     1,158.5     13.2   4.52     1,164.2     12.6   4.35     1,154.0     10.1   3.45  
    Consumer     1,035.3     18.7   7.19     1,054.1     17.7   6.74     1,172.8     18.3   6.19  
    Lease financing     422.2     4.0   3.72     418.3     4.3   4.09     327.3     3.7   4.48  
    Total Loans and Leases     14,304.8     206.2   5.74     14,358.0     202.8   5.67     14,349.4     194.8   5.39  
    Other Earning Assets     46.9     0.7   5.83     52.0     0.7   5.25     116.8     0.8   2.64  
    Total Earning Assets(2)     21,328.9     251.1   4.69     21,247.7     246.5   4.66     22,060.5     241.3   4.35  
    Cash and Due from Banks     242.3               240.4               276.0            
    Other Assets     2,475.5               2,470.8               2,391.4            
    Total Assets   $ 24,046.7             $ 23,958.9             $ 24,727.9            
                                                       
    Interest-Bearing Liabilities                                                  
    Interest-Bearing Deposits                                                  
    Savings   $ 5,963.1   $ 23.6   1.57 % $ 6,000.4   $ 23.4   1.57 % $ 5,982.5   $ 19.2   1.27 %
    Money Market     4,179.5     31.9   3.04     4,076.7     30.6   3.02     3,907.2     24.7   2.51  
    Time     3,327.3     32.0   3.83     3,284.3     31.6   3.87     3,362.7     30.8   3.63  
    Total Interest-Bearing Deposits     13,469.9     87.5   2.58     13,361.4     85.6   2.58     13,252.4     74.7   2.23  
    Other Short-Term Borrowings     451.1     5.4   4.76     500.0     6.0   4.79     113.1     1.5   5.17  
    Long-Term Borrowings                         440.2     5.3   4.83  
    Other Interest-Bearing Liabilities     22.4     0.4   6.97     38.2     0.5   5.48     89.1     1.2   5.17  
    Total Interest-Bearing Liabilities     13,943.4     93.3   2.66     13,899.6     92.1   2.66     13,894.8     82.7   2.36  
    Net Interest Income         $ 157.8             $ 154.4             $ 158.6      
    Interest Rate Spread(3)               2.03 %             2.00 %             1.99 %
    Net Interest Margin(4)               2.95 %             2.92 %             2.86 %
    Noninterest-Bearing Demand Deposits     6,897.9               6,946.6               7,959.7            
    Other Liabilities     616.6               600.2               506.0            
    Stockholders’ Equity     2,588.8               2,512.5               2,367.4            
    Total Liabilities and Stockholders’ Equity   $ 24,046.7             $ 23,958.9             $ 24,727.9            

    (1)   Non-performing loans and leases are included in the respective average loan and lease balances. Income, if any, on such loans and leases is recognized on a cash basis.

    (2)   Interest income includes taxable-equivalent basis adjustments of $1.1 million, $1.5 million and $1.5 million for the three months ended September 30, 2024, June 30, 2024 and September 30, 2023, respectively.

    (3)   Interest rate spread is the difference between the average yield on earning assets and the average rate paid on interest-bearing liabilities, on a fully taxable-equivalent basis.

    (4)   Net interest margin is net interest income annualized for the three months ended September 30, 2024, June 30, 2024 and September 30, 2023, on a fully taxable-equivalent basis, divided by average total earning assets.

                                       
    Average Balances and Interest Rates                          Table 5
        Nine Months Ended   Nine Months Ended  
        September 30, 2024   September 30, 2023  
        Average   Income/   Yield/   Average   Income/   Yield/  
    (dollars in millions)   Balance   Expense   Rate   Balance   Expense   Rate  
    Earning Assets                                  
    Interest-Bearing Deposits in Other Banks   $ 884.6   $ 35.9   5.43 %   $ 493.6   $ 18.8   5.10 %
    Available-for-Sale Investment Securities                                  
    Taxable     2,124.4     41.5   2.61     2,964.0     54.8   2.47  
    Non-Taxable     1.6     0.1   5.49     13.0     0.5   5.57  
    Held-to-Maturity Investment Securities                                  
    Taxable     3,354.0     42.7   1.70     3,615.0     46.0   1.70  
    Non-Taxable     602.9     11.7   2.58     608.9     11.9   2.62  
    Total Investment Securities     6,082.9     96.0   2.10     7,200.9     113.2   2.10  
    Loans Held for Sale     1.3     0.1   6.11     0.3       6.11  
    Loans and Leases(1)                                  
    Commercial and industrial     2,177.2     113.3   6.95     2,193.8     104.3   6.35  
    Commercial real estate     4,302.4     213.4   6.62     4,224.7     194.6   6.16  
    Construction     983.6     56.2   7.63     874.0     45.4   6.95  
    Residential:                                  
    Residential mortgage     4,232.6     122.5   3.86     4,312.4     117.6   3.64  
    Home equity line     1,164.9     37.8   4.34     1,116.4     27.9   3.35  
    Consumer     1,057.6     54.4   6.87     1,194.1     53.2   5.95  
    Lease financing     406.8     11.9   3.90     322.9     10.5   4.34  
    Total Loans and Leases     14,325.1     609.5   5.68     14,238.3     553.5   5.19  
    Other Earning Assets     58.8     2.5   5.69     107.6     1.3   1.53  
    Total Earning Assets(2)     21,352.7     744.0   4.65     22,040.7     686.8   4.16  
    Cash and Due from Banks     242.4               273.3            
    Other Assets     2,469.1               2,385.8            
    Total Assets   $ 24,064.2             $ 24,699.8            
                                       
    Interest-Bearing Liabilities                                  
    Interest-Bearing Deposits                                  
    Savings   $ 6,007.6   $ 70.5   1.57 % $ 6,144.1   $ 49.1   1.07 %
    Money Market     4,067.5     91.3   3.00     3,857.0     58.6   2.03  
    Time     3,312.3     95.5   3.85     2,921.8     68.3   3.12  
    Total Interest-Bearing Deposits     13,387.4     257.3   2.57     12,922.9     176.0   1.82  
    Federal Funds Purchased               23.0     0.8   4.45  
    Other Short-Term Borrowings     483.6     17.3   4.78     176.5     6.8   5.15  
    Long-Term Borrowings               349.8     12.5   4.78  
    Other Interest-Bearing Liabilities     31.1     1.3   5.75     62.1     2.1   4.63  
    Total Interest-Bearing Liabilities     13,902.1     275.9   2.65     13,534.3     198.2   1.96  
    Net Interest Income         $ 468.1             $ 488.6      
    Interest Rate Spread(3)               2.00 %             2.20 %
    Net Interest Margin(4)               2.93 %             2.96 %
    Noninterest-Bearing Demand Deposits     7,028.4               8,322.2            
    Other Liabilities     600.8               506.0            
    Stockholders’ Equity     2,532.9               2,337.3            
    Total Liabilities and Stockholders’ Equity   $ 24,064.2             $ 24,699.8            

    (1)   Non-performing loans and leases are included in the respective average loan and lease balances. Income, if any, on such loans and leases is recognized on a cash basis.

    (2)   Interest income includes taxable-equivalent basis adjustments of $4.1 million and $4.2 million for the nine months ended September 30, 2024 and 2023, respectively.

    (3)   Interest rate spread is the difference between the average yield on earning assets and the average rate paid on interest-bearing liabilities, on a fully taxable-equivalent basis.

    (4)   Net interest margin is net interest income annualized for the nine months ended September 30, 2024 and 2023, on a fully taxable-equivalent basis, divided by average total earning assets.

                       
    Analysis of Change in Net Interest Income                 Table 6
        Three Months Ended September 30, 2024
        Compared to June 30, 2024
    (dollars in millions)   Volume   Rate   Total (1)
    Change in Interest Income:                  
    Interest-Bearing Deposits in Other Banks   $ 3.5     $ (0.1 )   $ 3.4  
    Available-for-Sale Investment Securities                  
    Taxable     (0.2 )     (1.1 )     (1.3 )
    Held-to-Maturity Investment Securities                  
    Taxable     (0.3 )     (0.3 )     (0.6 )
    Non-Taxable           (0.3 )     (0.3 )
    Total Investment Securities     (0.5 )     (1.7 )     (2.2 )
    Loans and Leases                  
    Commercial and industrial     (0.3 )     0.2       (0.1 )
    Commercial real estate           0.1       0.1  
    Construction     1.3       0.5       1.8  
    Residential:                  
    Residential mortgage     (0.2 )     0.5       0.3  
    Home equity line           0.6       0.6  
    Consumer     (0.3 )     1.3       1.0  
    Lease financing           (0.3 )     (0.3 )
    Total Loans and Leases     0.5       2.9       3.4  
    Other Earning Assets     (0.1 )     0.1        
    Total Change in Interest Income     3.4       1.2       4.6  
                       
    Change in Interest Expense:                  
    Interest-Bearing Deposits                  
    Savings           0.2       0.2  
    Money Market     1.0       0.3       1.3  
    Time     0.6       (0.2 )     0.4  
    Total Interest-Bearing Deposits     1.6       0.3       1.9  
    Other Short-Term Borrowings     (0.5 )     (0.1 )     (0.6 )
    Other Interest-Bearing Liabilities     (0.2 )     0.1       (0.1 )
    Total Change in Interest Expense     0.9       0.3       1.2  
    Change in Net Interest Income   $ 2.5     $ 0.9     $ 3.4  

    (1)   The change in interest income and expense not solely due to changes in volume or rate has been allocated on a pro-rata basis to the volume and rate columns.

                       
    Analysis of Change in Net Interest Income                 Table 7
        Three Months Ended September 30, 2024
        Compared to September 30, 2023
    (dollars in millions)   Volume   Rate   Total (1)
    Change in Interest Income:                  
    Interest-Bearing Deposits in Other Banks   $ 5.6     $ 0.1     $ 5.7  
    Available-for-Sale Investment Securities                  
    Taxable     (4.8 )     (0.8 )     (5.6 )
    Held-to-Maturity Investment Securities                  
    Taxable     (1.0 )     (0.2 )     (1.2 )
    Non-Taxable           (0.4 )     (0.4 )
    Total Investment Securities     (5.8 )     (1.4 )     (7.2 )
    Loans and Leases                  
    Commercial and industrial     0.7       1.6       2.3  
    Commercial real estate     (1.8 )     2.0       0.2  
    Construction     3.2       1.6       4.8  
    Residential:                  
    Residential mortgage     (1.0 )     1.3       0.3  
    Home equity line           3.1       3.1  
    Consumer     (2.3 )     2.7       0.4  
    Lease financing     0.9       (0.6 )     0.3  
    Total Loans and Leases     (0.3 )     11.7       11.4  
    Other Earning Assets     (0.7 )     0.6       (0.1 )
    Total Change in Interest Income     (1.2 )     11.0       9.8  
                       
    Change in Interest Expense:                  
    Interest-Bearing Deposits                  
    Savings     (0.1 )     4.5       4.4  
    Money Market     1.8       5.4       7.2  
    Time     (0.3 )     1.5       1.2  
    Total Interest-Bearing Deposits     1.4       11.4       12.8  
    Other Short-Term Borrowings     4.0       (0.1 )     3.9  
    Long-Term Borrowings     (2.6 )     (2.7 )     (5.3 )
    Other Interest-Bearing Liabilities     (1.1 )     0.3       (0.8 )
    Total Change in Interest Expense     1.7       8.9       10.6  
    Change in Net Interest Income   $ (2.9 )   $ 2.1     $ (0.8 )

    (1)   The change in interest income and expense not solely due to changes in volume or rate has been allocated on a pro-rata basis to the volume and rate columns.

                       
    Analysis of Change in Net Interest Income                 Table 8
        Nine Months Ended September 30, 2024
        Compared to September 30, 2023
    (dollars in millions)   Volume   Rate   Total (1)
    Change in Interest Income:                  
    Interest-Bearing Deposits in Other Banks   $ 15.8     $ 1.3     $ 17.1  
    Available-for-Sale Investment Securities                  
    Taxable     (16.3 )     3.0       (13.3 )
    Non-Taxable     (0.4 )           (0.4 )
    Held-to-Maturity Investment Securities                  
    Taxable     (3.3 )           (3.3 )
    Non-Taxable     (0.1 )     (0.1 )     (0.2 )
    Total Investment Securities     (20.1 )     2.9       (17.2 )
    Loans Held for Sale     0.1             0.1  
    Loans and Leases                  
    Commercial and industrial     (0.8 )     9.8       9.0  
    Commercial real estate     3.7       15.1       18.8  
    Construction     6.1       4.7       10.8  
    Residential:                  
    Residential mortgage     (2.2 )     7.1       4.9  
    Home equity line     1.3       8.6       9.9  
    Consumer     (6.5 )     7.7       1.2  
    Lease financing     2.5       (1.1 )     1.4  
    Total Loans and Leases     4.1       51.9       56.0  
    Other Earning Assets     (0.8 )     2.0       1.2  
    Total Change in Interest Income     (0.9 )     58.1       57.2  
                       
    Change in Interest Expense:                  
    Interest-Bearing Deposits                  
    Savings     (1.1 )     22.5       21.4  
    Money Market     3.4       29.3       32.7  
    Time     9.9       17.3       27.2  
    Total Interest-Bearing Deposits     12.2       69.1       81.3  
    Federal Funds Purchased     (0.4 )     (0.4 )     (0.8 )
    Other Short-Term Borrowings     11.0       (0.5 )     10.5  
    Long-Term Borrowings     (6.3 )     (6.2 )     (12.5 )
    Other Interest-Bearing Liabilities     (1.2 )     0.4       (0.8 )
    Total Change in Interest Expense     15.3       62.4       77.7  
    Change in Net Interest Income   $ (16.2 )   $ (4.3 )   $ (20.5 )

    (1)   The change in interest income and expense not solely due to changes in volume or rate has been allocated on a pro-rata basis to the volume and rate columns.

                             
    Loans and Leases                       Table 9
        September 30,   June 30,   December 31,   September 30,
    (dollars in thousands)   2024   2024   2023   2023
    Commercial and industrial   $ 2,110,077   $ 2,208,690   $ 2,165,349   $ 2,101,442
    Commercial real estate     4,265,289     4,305,017     4,340,243     4,387,751
    Construction     1,056,249     1,017,649     900,292     885,112
    Residential:                        
    Residential mortgage     4,187,060     4,216,416     4,283,315     4,303,924
    Home equity line     1,159,823     1,159,833     1,174,588     1,167,388
    Total residential     5,346,883     5,376,249     5,457,903     5,471,312
    Consumer     1,030,044     1,027,104     1,109,901     1,154,203
    Lease financing     432,828     425,190     379,809     332,515
    Total loans and leases   $ 14,241,370   $ 14,359,899   $ 14,353,497   $ 14,332,335
                             
    Deposits                       Table 10
        September 30,    June 30,    December 31,    September 30, 
    (dollars in thousands)   2024   2024   2023   2023
    Demand   $ 6,800,028   $ 6,857,467   $ 7,583,562   $ 7,898,996
    Savings     5,896,029     6,055,051     6,445,084     6,028,308
    Money Market     4,129,381     4,111,609     3,847,853     3,923,054
    Time     3,402,264     3,294,705     3,456,158     3,661,131
    Total Deposits   $ 20,227,702   $ 20,318,832   $ 21,332,657   $ 21,511,489
                             
    Non-Performing Assets and Accruing Loans and Leases Past Due 90 Days or More              Table 11
        September 30,   June 30,   December 31,   September 30,
    (dollars in thousands)   2024   2024   2023   2023
    Non-Performing Assets                        
    Non-Accrual Loans and Leases                        
    Commercial Loans:                        
    Commercial and industrial   $ 934   $ 1,084   $ 970   $ 988
    Commercial real estate     152     3,085     2,953    
    Construction         447        
    Total Commercial Loans     1,086     4,616     3,923     988
    Residential Loans:                        
    Residential mortgage     9,103     7,273     7,620     7,435
    Home equity line     7,645     6,124     7,052     6,200
    Total Residential Loans     16,748     13,397     14,672     13,635
    Total Non-Accrual Loans and Leases     17,834     18,013     18,595     14,623
    Total Non-Performing Assets   $ 17,834   $ 18,013   $ 18,595   $ 14,623
                             
    Accruing Loans and Leases Past Due 90 Days or More                        
    Commercial Loans:                        
    Commercial and industrial   $ 529   $ 110   $ 494   $ 289
    Commercial real estate     568         300     170
    Total Commercial Loans     1,097     110     794     459
    Residential mortgage     931     1,820         1,430
    Consumer     2,515     1,835     2,702     1,681
    Total Accruing Loans and Leases Past Due 90 Days or More   $ 4,543   $ 3,765   $ 3,496   $ 3,570
                             
    Total Loans and Leases   $ 14,241,370   $ 14,359,899   $ 14,353,497   $ 14,332,335
                                     
    Allowance for Credit Losses and Reserve for Unfunded Commitments
          Table 12
        For the Three Months Ended   For the Nine Months Ended  
        September 30,    June 30,   September 30,   September 30,   September 30,   
    (dollars in thousands)   2024   2024   2023   2024   2023  
    Balance at Beginning of Period   $ 193,930     $ 194,649     $ 184,780     $ 192,138     $ 177,735    
    Loans and Leases Charged-Off                                
    Commercial Loans:                                
    Commercial and industrial     (1,178 )     (677 )     (784 )     (2,764 )     (2,572 )  
    Commercial real estate     (400 )                 (400 )        
    Total Commercial Loans     (1,578 )     (677 )     (784 )     (3,164 )     (2,572 )  
    Residential Loans:                                
    Residential mortgage                             (122 )  
    Home equity line                             (272 )  
    Total Residential Loans                             (394 )  
    Consumer     (4,192 )     (4,182 )     (3,665 )     (13,228 )     (12,963 )  
    Total Loans and Leases Charged-Off     (5,770 )     (4,859 )     (4,449 )     (16,392 )     (15,929 )  
    Recoveries on Loans and Leases Previously Charged-Off                                
    Commercial and industrial     160       250       2,637       621       3,175    
    Residential Loans:                                
    Residential mortgage     31       28       53       89       110    
    Home equity line     86       112       303       242       539    
    Total Residential Loans     117       140       356       331       649    
    Consumer     1,560       1,950       1,746       5,199       5,640    
    Total Recoveries on Loans and Leases Previously Charged-Off     1,837       2,340       4,739       6,151       9,464    
    Net Loans and Leases (Charged-Off) Recovered     (3,933 )     (2,519 )     290       (10,241 )     (6,465 )  
    Provision for Credit Losses     7,400       1,800       7,500       15,500       21,300    
    Balance at End of Period   $ 197,397     $ 193,930     $ 192,570     $ 197,397     $ 192,570    
    Components:                                
    Allowance for Credit Losses   $ 163,700     $ 160,517     $ 154,795     $ 163,700     $ 154,795    
    Reserve for Unfunded Commitments     33,697       33,413       37,775       33,697       37,775    
    Total Allowance for Credit Losses and Reserve for Unfunded Commitments   $ 197,397     $ 193,930     $ 192,570     $ 197,397     $ 192,570    
    Average Loans and Leases Outstanding   $ 14,304,806     $ 14,358,049     $ 14,349,402     $ 14,325,065     $ 14,238,309    
    Ratio of Net Loans and Leases Charged-Off (Recovered) to Average Loans and Leases Outstanding(1)     0.11   %   0.07   %   (0.01 ) %   0.10   %   0.06   %
    Ratio of Allowance for Credit Losses for Loans and Leases to Loans and Leases Outstanding     1.15   %   1.12   %   1.08   %   1.15   %   1.08   %
    Ratio of Allowance for Credit Losses for Loans and Leases to Non-accrual Loans and Leases     9.18x     8.91x     10.59x     9.18x     10.59x  

    (1)   Annualized for the three and nine months ended September 30, 2024 and 2023 and three months ended June 30, 2024.

                                                           
    Loans and Leases by Year of Origination and Credit Quality Indicator     Table 13
                                                  Revolving      
                                                  Loans      
                                                  Converted      
        Term Loans   Revolving   to Term      
        Amortized Cost Basis by Origination Year   Loans   Loans      
                                            Amortized   Amortized      
    (dollars in thousands)   2024   2023   2022   2021   2020   Prior   Cost Basis   Cost Basis   Total
    Commercial Lending                                                      
    Commercial and Industrial                                                      
    Risk rating:                                                      
    Pass   $ 100,174   $ 82,175   $ 191,861   $ 256,997   $ 20,866   $ 266,720   $ 1,026,457   $ 13,396   $ 1,958,646
    Special Mention     303     1     7,327     48     398     1,371     18,239         27,687
    Substandard             8,251     219     358     2,033     32,296         43,157
    Other (1)     10,797     10,542     7,779     3,074     1,052     1,723     45,620         80,587
    Total Commercial and Industrial     111,274     92,718     215,218     260,338     22,674     271,847     1,122,612     13,396     2,110,077
    Current period gross charge-offs         578     333     89     221     1,543             2,764
                                                           
    Commercial Real Estate                                                      
    Risk rating:                                                      
    Pass     118,884     347,480     810,746     649,133     325,887     1,774,529     87,188     7,760     4,121,607
    Special Mention     3,587     2,261     7,537     41,384     3,306     11,973     7,815         77,863
    Substandard             54,984     1,003         9,548     149         65,684
    Other (1)                         135             135
    Total Commercial Real Estate     122,471     349,741     873,267     691,520     329,193     1,796,185     95,152     7,760     4,265,289
    Current period gross charge-offs                         400             400
                                                           
    Construction                                                      
    Risk rating:                                                      
    Pass     61,677     246,176     361,974     241,212     58,820     46,344     4,484         1,020,687
    Special Mention                         164             164
    Other (1)     4,970     9,468     12,022     3,575     1,199     3,463     701         35,398
    Total Construction     66,647     255,644     373,996     244,787     60,019     49,971     5,185         1,056,249
    Current period gross charge-offs                                    
                                                           
    Lease Financing                                                      
    Risk rating:                                                      
    Pass     126,380     105,523     66,764     15,483     23,133     89,254             426,537
    Special Mention         42     100     300     5                 447
    Substandard     4,899     602     343                         5,844
    Total Lease Financing     131,279     106,167     67,207     15,783     23,138     89,254             432,828
    Current period gross charge-offs                                    
                                                           
    Total Commercial Lending   $ 431,671   $ 804,270   $ 1,529,688   $ 1,212,428   $ 435,024   $ 2,207,257   $ 1,222,949   $ 21,156   $ 7,864,443
    Current period gross charge-offs   $   $ 578   $ 333   $ 89   $ 221   $ 1,943   $   $   $ 3,164
                                                           
                                                  Revolving      
                                                  Loans      
                                                  Converted      
        Term Loans   Revolving   to Term      
        Amortized Cost Basis by Origination Year   Loans   Loans      
    (continued)                                       Amortized   Amortized      
    (dollars in thousands)   2024   2023   2022   2021   2020   Prior   Cost Basis   Cost Basis   Total
    Residential Lending                                                      
    Residential Mortgage                                                      
    FICO:                                                      
    740 and greater   $ 113,307   $ 206,224   $ 504,141   $ 956,983   $ 503,160   $ 1,129,857   $   $   $ 3,413,672
    680 – 739     11,614     28,638     65,128     109,018     66,719     157,263             438,380
    620 – 679     1,519     1,792     22,921     19,854     11,651     37,979             95,716
    550 – 619         896     3,703     6,707     2,269     15,751             29,326
    Less than 550         286     2,380     3,818     2,959     5,569             15,012
    No Score (3)     543     7,117     16,923     10,512     5,553     52,526             93,174
    Other (2)     8,148     12,786     16,721     14,776     11,222     30,022     8,105         101,780
    Total Residential Mortgage     135,131     257,739     631,917     1,121,668     603,533     1,428,967     8,105         4,187,060
    Current period gross charge-offs                                    
                                                           
    Home Equity Line                                                      
    FICO:                                                      
    740 and greater                             930,909     1,730     932,639
    680 – 739                             167,097     1,137     168,234
    620 – 679                             36,540     985     37,525
    550 – 619                             14,514     581     15,095
    Less than 550                             4,477     571     5,048
    No Score (3)                             1,282         1,282
    Total Home Equity Line                             1,154,819     5,004     1,159,823
    Current period gross charge-offs                                    
                                                           
    Total Residential Lending   $ 135,131   $ 257,739   $ 631,917   $ 1,121,668   $ 603,533   $ 1,428,967   $ 1,162,924   $ 5,004   $ 5,346,883
    Current period gross charge-offs   $   $   $   $   $   $   $   $   $
                                                           
    Consumer Lending                                                      
    FICO:                                                      
    740 and greater     71,777     71,423     94,710     51,952     18,512     10,435     121,278     128     440,215
    680 – 739     51,651     51,667     49,864     23,959     9,995     7,497     77,278     525     272,436
    620 – 679     21,223     20,604     21,700     12,515     5,155     5,577     35,665     851     123,290
    550 – 619     4,116     7,348     9,802     5,983     2,862     3,862     12,674     825     47,472
    Less than 550     1,071     3,266     6,247     3,999     1,783     2,492     4,836     525     24,219
    No Score (3)     2,291     117     47         7     8     42,658     205     45,333
    Other (2)             296     911     101     981     74,790         77,079
    Total Consumer Lending   $ 152,129   $ 154,425   $ 182,666   $ 99,319   $ 38,415   $ 30,852   $ 369,179   $ 3,059   $ 1,030,044
    Current period gross charge-offs   $ 385   $ 1,403   $ 2,107   $ 1,085   $ 518   $ 2,234   $ 4,952   $ 544   $ 13,228
                                                           
    Total Loans and Leases   $ 718,931   $ 1,216,434   $ 2,344,271   $ 2,433,415   $ 1,076,972   $ 3,667,076   $ 2,755,052   $ 29,219   $ 14,241,370
    Current period gross charge-offs   $ 385   $ 1,981   $ 2,440   $ 1,174   $ 739   $ 4,177   $ 4,952   $ 544   $ 16,392

    (1)   Other credit quality indicators used for monitoring purposes are primarily FICO scores. The majority of the loans in this population were originated to borrowers with a prime FICO score. As of September 30, 2024, the majority of the loans in this population were current.

    (2)   Other credit quality indicators used for monitoring purposes are primarily internal risk ratings. The majority of the loans in this population were graded with a “Pass” rating. As of September 30, 2024, the majority of the loans in this population were current.

    (3)   No FICO scores are primarily related to loans and leases extended to non-residents. Loans and leases of this nature are primarily secured by collateral and/or are closely monitored for performance.

                                     
    GAAP to Non-GAAP Reconciliation   Table 14
        For the Three Months Ended   For the Nine Months Ended  
        September 30,   June 30,   September 30,   September 30,  
    (dollars in thousands)   2024   2024   2023   2024   2023  
    Income Statement Data:                                
    Net income   $ 61,492   $ 61,921   $ 58,221   $ 177,633   $ 187,481  
                                     
    Average total stockholders’ equity   $ 2,588,806   $ 2,512,471   $ 2,367,422   $ 2,532,911   $ 2,337,292  
    Less: average goodwill     995,492     995,492     995,492     995,492     995,492  
    Average tangible stockholders’ equity   $ 1,593,314   $ 1,516,979   $ 1,371,930   $ 1,537,419   $ 1,341,800  
                                     
    Average total assets   $ 24,046,696   $ 23,958,913   $ 24,727,893   $ 24,064,208   $ 24,699,826  
    Less: average goodwill     995,492     995,492     995,492     995,492     995,492  
    Average tangible assets   $ 23,051,204   $ 22,963,421   $ 23,732,401   $ 23,068,716   $ 23,704,334  
                                     
    Return on average total stockholders’ equity(1)     9.45 %   9.91 %   9.76 %   9.37 %   10.72 %
    Return on average tangible stockholders’ equity (non-GAAP)(1)     15.35 %   16.42 %   16.84 %   15.43 %   18.68 %
                                     
    Return on average total assets(1)     1.02 %   1.04 %   0.93 %   0.99 %   1.01 %
    Return on average tangible assets (non-GAAP)(1)     1.06 %   1.08 %   0.97 %   1.03 %   1.06 %
                               
                         
        As of   As of   As of   As of  
        September 30,   June 30,   December 31,   September 30,  
    (dollars in thousands, except per share amounts)   2024   2024   2023   2023  
    Balance Sheet Data:                          
    Total stockholders’ equity   $ 2,648,034   $ 2,550,312   $ 2,486,066   $ 2,351,009  
    Less: goodwill     995,492     995,492     995,492     995,492  
    Tangible stockholders’ equity   $ 1,652,542   $ 1,554,820   $ 1,490,574   $ 1,355,517  
                               
    Total assets   $ 23,780,285   $ 23,991,791   $ 24,926,474   $ 24,912,524  
    Less: goodwill     995,492     995,492     995,492     995,492  
    Tangible assets   $ 22,784,793   $ 22,996,299   $ 23,930,982   $ 23,917,032  
                               
    Shares outstanding     127,886,167     127,879,012     127,618,761     127,609,934  
                               
    Total stockholders’ equity to total assets     11.14 %   10.63 %   9.97 %   9.44 %
    Tangible stockholders’ equity to tangible assets (non-GAAP)     7.25 %   6.76 %   6.23 %   5.67 %
                               
    Book value per share   $ 20.71   $ 19.94   $ 19.48   $ 18.42  
    Tangible book value per share (non-GAAP)   $ 12.92   $ 12.16   $ 11.68   $ 10.62  

    (1)   Annualized for the three and nine months ended September 30, 2024 and 2023 and three months ended June 30, 2024.

    The MIL Network

  • MIL-OSI: LIS Technologies Inc. Chief Executive Officer Christo Liebenberg Presented at the University of Tennessee Nuclear Engineering Colloquium on October 23, 2024

    Source: GlobeNewswire (MIL-OSI)

    Oak Ridge, Tennessee, Oct. 25, 2024 (GLOBE NEWSWIRE) — LIS Technologies Inc. (“LIST” or “the Company”), a proprietary developer of advanced laser technology and the only USA-origin and patented laser uranium enrichment company, today announced that Christo Liebenberg, Chief Executive Officer of LIS Technologies Inc. presented at the University of Tennessee’s Nuclear Engineering Colloquium, hosted by the Nuclear Engineering Department.

    “We were delighted to welcome our neighbor Mr. Liebenberg to the Nuclear Engineering Department and the University of Tennessee,” said Ashley Nelkin, Academic Specialist & Events of the University of Tennessee Department of Nuclear Engineering. “This Colloquium provides our students and faculty with a rare opportunity to engage with a leading figure in laser isotope separation and gain first-hand insights into this innovative technology.”

    Figure 1 – LIS Technologies Inc. Chief Executive Officer Christo Liebenberg will present at the University of Tennessee’s Nuclear Energy Colloquium on October 23, 2024.

    The Colloquium included a 45-minute presentation by Mr. Liebenberg, focusing on a comparison of 1st, 2nd, and 3rd generation enrichment technologies, with a particular emphasis on the similarities and differences among various laser enrichment methods. The discussion also covered the fundamentals and requirements of laser enrichment, highlighting 16μm and 5μm MLIS systems. Additionally, key features and benefits of the CRISLA process will be showcased. A 15-minute Q&A session will follow the presentation.

    “The University of Tennessee’s Nuclear Engineering Department fosters some of the brightest talent in the country,” said Christo Liebenberg, CEO of LIS Technologies Inc. “It was an honor to lead this seminar and help inspire the next generation of nuclear engineers to push the boundaries of innovation. This event also provides a valuable opportunity to teach about the capabilities of our laser isotope separation technology and better understand its potential. This was an engaging and rewarding seminar.”

    About LIS Technologies Inc.

    LIS Technologies Inc. (LIST) is a USA based, proprietary developer of a patented advanced laser technology, making use of infrared wavelengths to selectively excite the molecules of desired isotopes to separate them from other isotopes. The Laser Isotope Separation Technology (L.I.S.T) has a huge range of applications, including being the only USA-origin (and patented) laser uranium enrichment company, and several major advantages over traditional methods such as gas diffusion, centrifuges, and prior art laser enrichment. The LIST proprietary laser-based process is more energy-efficient and has the potential to be deployed with highly competitive capital and operational costs. L.I.S.T is optimized for LEU (Low Enriched Uranium) for existing civilian nuclear power plants, High-Assay LEU (HALEU) for the next generation of Small Modular Reactors (SMR) and Microreactors, the production of stable isotopes for medical and scientific research, and applications in quantum computing manufacturing for semiconductor technologies. The Company employs a world class nuclear technical team working alongside leading nuclear entrepreneurs and industry professionals, possessing strong relationships with government and private nuclear industries.

    For more information please visit: LaserIsTech.com

    For further information, please contact:

    Email: info@laseristech.com

    Telephone: 800-388-5492

    Follow us on Twitter

    Follow us on LinkedIn

    Forward Looking Statements

    This news release contains “forward-looking statements” within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended, and the Private Securities Litigation Reform Act of 1995. In this context, forward-looking statements mean statements related to future events, which may impact our expected future business and financial performance, and often contain words such as “expects”, “anticipates”, “intends”, “plans”, “believes”, “will”, “should”, “could”, “would” or “may” and other words of similar meaning. These forward-looking statements are based on information available to us as of the date of this news release and represent management’s current views and assumptions. Forward-looking statements are not guarantees of future performance, events or results and involve known and unknown risks, uncertainties and other factors, which may be beyond our control. For LIS Technologies Inc., particular risks and uncertainties that could cause our actual future results to differ materially from those expressed in our forward-looking statements include but are not limited to the following which are, and will be, exacerbated by any worsening of global business and economic environment: (i) risks related to the development of new or advanced technology, including difficulties with design and testing, cost overruns, development of competitive technology, loss of key individuals and uncertainty of success of patent filing, (ii) our ability to obtain contracts and funding to be able to continue operations and (iii) risks related to uncertainty regarding our ability to commercially deploy a competitive laser enrichment technology, (iv) risks related to the impact of government regulation and policies including by the DOE and the U.S. Nuclear Regulatory Commission; and other risks and uncertainties discussed in this and our other filings with the SEC. Only after successful completion of our Phase 2 Pilot Plant demonstration will LIS Technologies be able to make realistic economic predictions for a Commercial Facility. Readers are cautioned not to place undue reliance on these forward-looking statements, which apply only as of the date of this news release. These factors may not constitute all factors that could cause actual results to differ from those discussed in any forward-looking statement. Accordingly, forward-looking statements should not be relied upon as a predictor of actual results. We do not undertake to update our forward-looking statements to reflect events or circumstances that may arise after the date of this news release, except as required by law.

    Attachment

    The MIL Network

  • MIL-OSI Economics: Inaugural ESG Forum Wraps Up in Abidjan with Stakeholders Uniting around Vision for an Africa ESG Hub

    Source: African Development Bank Group

    (From left) Olumide Lala, Executive Director, Climate Transition Limited with Natenin Coulibaly, General Manager Corporate Services, MTN; Armande Laetitia Ohouo-Lath, Director of Sustainable Development, SIFCA; Rachael Antwi, Group Sustainability and Environmental Risk, ECOBANK and Azeez Alayande, ESG Manager, ENGIE Nigeria during a session on Challenges and Opportunities in ESG Reporting in Africa at the Africa ESG Forum

    Two days of intensive discussions on building a sustainable finance ecosystem for Africa ended in Abidjan on Tuesday with stakeholders from government and the private sector expressing strong support for an Africa-focused Environmental, Social, and Governance (ESG) Data Hub.

    The inaugural Africa ESG Forum, held at the Sofitel Hotel in Abidjan, Côte d’Ivoire, was organised by the African Development Bank, the Multilateral Cooperation Centre for Development Finance, and Making Finance Work for Africa. It featured discussions on ESG reporting challenges and investor expectations, and concluded with the inaugural meeting of the ESG working group.

    Representatives of various participating institutions shared their ESG implementation experiences. Moubarak Moukaila of the West African Development Bank highlighted the Bank’s progress in sustainable project development. “We created, at the beginning of this year, a unit that supports project development. We have developed, within six months, three projects with GEM and two projects with Green Climate Fund.”

    Ahlem Kefi, Impact & Sustainability Officer at AfricInvest, outlined the firm’s comprehensive approach to sustainability assessments. “We start looking at the ESG risks and the ESG data from the first screening phase,” she said. “We don’t call this ESG due diligence, we call it impact and sustainability due diligence.”

    Mostafa Hawas of the Egyptian Stock Exchange offered practical insights into implementing ESG reporting requirements. He outlined how they began with “a very, very simple survey” distributed to listed companies, and emphasized the importance of gradual implementation to build awareness, before introducing more detailed requirements.

    Kuhle Sojola, ESG Engagement Specialist at Sanlam Investments, addressed the critical issue of greenwashing – the misleading use of advertising and marketing to falsely portray an organization’s products, goals, or policies as being environmentally friendly – in corporate reporting. “We use engagement as a tool to mitigate or reduce the risk of greenwashing,” she said, adding that, when a company’s reported metrics differ significantly from those of their peer group, “that is usually an indication that there could be a level of greenwashing there.”

    Participants at the Forum envisioned the proposed African ESG Hub as a unifying vehicle for sustainability issues in Africa, enhancing awareness among local entities and international investors. In preparation for its establishment, they acknowledged that with 80 percent of African companies being SMEs, engaging the sector would be critical in advancing ESG reporting and sustainable finance across the continent. In addition, they outlined plans for the proposed Hub, including ensuring that it provides a credible platform for training and technical assistance, and for sharing best practices and case studies.

    MIL OSI Economics

  • MIL-OSI China: Chinese lawmakers to meet early next month to deliberate draft laws, reports

    Source: People’s Republic of China – State Council News

    Zhao Leji, chairman of the National People’s Congress (NPC) Standing Committee, presides over the 32nd meeting of the Council of Chairpersons of the 14th NPC Standing Committee at the Great Hall of the People in Beijing, capital of China, Oct. 25, 2024. [Photo/Xinhua]

    BEIJING, Oct. 25 — The Standing Committee of the 14th National People’s Congress (NPC) will convene its 12th session from Nov. 4 to 8 in Beijing.

    The decision was made on Friday at a meeting of the Council of Chairpersons of the NPC Standing Committee, which was presided over by Zhao Leji, chairman of the NPC Standing Committee.

    According to the proposed session agenda, lawmakers will review a draft preschool education law, a draft revision to the Law on Protection of Cultural Relics, a draft revision to the Mineral Resources Law, a draft energy law, and a draft revision to the Anti-Money Laundering Law, among others.

    Lawmakers will hear a report on financial work, a report on the management of state-owned assets, a report on building world-class universities with Chinese characteristics, a report on the prevention and control of desertification, and more.

    MIL OSI China News

  • MIL-OSI China: Finnish president to visit China from Oct. 28 to 31

    Source: People’s Republic of China – State Council News

    Finnish president to visit China from Oct. 28 to 31

    BEIJING, Oct. 25 — At the invitation of Chinese President Xi Jinping, Finnish President Alexander Stubb will pay a state visit to China from Oct. 28 to 31, Chinese foreign ministry spokesperson Hua Chunying announced Friday.

    President Xi will hold talks with President Stubb during the visit. Li Qiang, Chinese premier, and Zhao Leji, chairman of the Standing Committee of the National People’s Congress, will meet with Stubb respectively to exchange views on bilateral relations and issues of common interest, Lin Jian, another foreign ministry spokesperson, told a daily press briefing.

    “Finland was among the first Western countries to recognize the People’s Republic of China,” Lin said, adding that China-Finland relations are experiencing sound development and that the day of President Stubb’s arrival in Beijing will be the 74th anniversary of the establishment of diplomatic ties between the two countries.

    China is willing to maintain high-level exchanges with Finland, continue the traditional friendship, strengthen mutually beneficial cooperation in economy, trade, investment, green transformation and other fields, jointly meet global challenges, and promote the further development of bilateral relations, Lin said.

    MIL OSI China News

  • MIL-OSI: AI-Powered Firm HIVE PT Launches Global Talent Hunt with Competitive Challenges

    Source: GlobeNewswire (MIL-OSI)

    Photo by HIVE PT

    CASCAIS, Portugal, Oct. 25, 2024 (GLOBE NEWSWIRE) — HIVE PT, a global leader in proprietary trading, offers innovative trading challenges that attract top-tier talent worldwide. With the launch of its flagship trading programs, the HIVE Challenge and Queen Bee Challenge, HIVE PT is transforming how traders access capital and develop their skills.

    The company’s approach to proprietary trading combines advanced technology with a deep commitment to education, allowing traders to showcase their skills in a risk-free environment. Successful participants in these challenges gain access to capital ranging from $10,000 to $200,000, with the opportunity to earn up to an 80/20 profit split—making HIVE PT’s programs some of the most attractive in the industry.

    Creating Opportunities for Top Trading Talent

    HIVE PT’s proprietary trading model is built on the belief that talent should be rewarded and developed. Offering traders a chance to demonstrate their abilities without risking personal funds has attracted an international pool of talent. The firm’s flexible trading conditions, which include no time limits for completing challenges, have further enhanced its appeal.

    Traders from North America, Europe, and Asia have already taken advantage of the platform, with plans to expand into South America and the Middle East by 2025.

    “We’ve seen a tremendous response to our trading challenges, not just because of the profit potential, but because we’ve created a system that truly nurtures traders,” said Goni Shimi, CEO of HIVE PT. “Our platform is designed to reduce the stress associated with traditional trading evaluations, giving traders the time and space to succeed.”

    Market Trends and Projections

    Valued at over $150 billion, the global proprietary trading sector is expected to grow at a compound annual growth rate (CAGR) of 8.4% through 2030. This surge is driven by developments in algorithmic trading, artificial intelligence, and real-time data analytics—all areas where HIVE PT excels. Leveraging these technologies allows HIVE PT to enhance its own trading strategies and provides its traders with the right tools to stay competitive in the market.

    “What makes HIVE PT different is our integration of AI and machine learning to support traders,” says Goni Shimi. “Our platform doesn’t just give them the ability to trade—it helps them become better traders through data-driven insights and real-time performance tracking.”

    A Community-Driven Approach

    In addition to offering advanced trading tools and challenges, HIVE PT has made significant strides in creating a supportive community for traders. The firm’s online academy provides comprehensive educational resources, including courses, videos, and market analysis, helping traders at all levels improve their strategies. This commitment to education is a cornerstone of HIVE PT’s mission to foster a global network of successfully funded traders.

    As part of its medium-term goals, HIVE PT is focused on building a solid community of traders who can share insights and learn from one another. The company has also introduced a mentorship program, which pairs experienced traders with newcomers to the field, ensuring that traders have the guidance they need to master the complexities of financial markets.

    “Our goal is to create a platform where traders succeed financially and grow intellectually. We want to be known not just as a trading firm but as a place where traders come to learn, share, and thrive,” Goni Shimi says.

    The company is set to expand its global reach and influence. As proprietary trading continues to change, HIVE PT’s emphasis on transparency, education, and ethical trading practices will ensure its lasting impact on financial markets.

    “Our mission is simple: to provide traders with the resources and support they need to succeed. As the markets change, so will we, always staying ahead of the game,” Goni Shimi concludes.

    Visit HIVE PT’s website to learn more about its proprietary trading programs and educational resources.

    About HIVE PT

    HIVE PT is a proprietary trading firm that provides trading opportunities for skilled traders in various financial markets, including stocks, forex, and commodities. Focusing on education, transparency, and ethical trading practices, the company offers traders access to significant capital through its premium programs.

    Contact Information

    Contact Person: Goni Shimi, CEO
    Company: HIVE PT
    Email: support@HIVE-pt.com
    Website: https://HIVE-pt.com/

    Socials

    Instagram https://www.instagram.com/hiveproptrading/
    YouTube: https://www.youtube.com/channel/UC-gafpqu6nF4TH7gkLYDXIQ
    LinkedIn: https://www.linkedin.com/company/hive-pt/
    Trustpilot: https://www.trustpilot.com/review/hive-pt.com
    Facebook: https://www.facebook.com/profile.php?id=61560087040874
    Twitter: https://x.com/Hiveproptrading
    TikTok: https://www.tiktok.com/@hiveproptrading?lang=en
    Discord: https://discord.gg/YAH8tYBGGn
    WhatsApp: https://wa.me/351912881182

    A photo accompanying this announcement is available at https://www.globenewswire.com/NewsRoom/AttachmentNg/ba866118-9111-4b49-bce0-f328fc7e3dce

    The MIL Network

  • MIL-OSI Russia: Polytechnic at the autumn educational exhibition in Hanoi “Russian Universities – the Best Choice”

    Translation. Region: Russian Federation –

    Source: Peter the Great St Petersburg Polytechnic University – Peter the Great St Petersburg Polytechnic University –

    Polytechnic University took part in an educational exhibition in Vietnam, which was held in Hanoi from October 21 to 25. The event was organized by the representative office of Rossotrudnichestvo in Hanoi as part of the long-term project “Universities of Russia” to popularize Russian education. Polytechnic University was represented by Deputy Head of the International Education Department Tatyana Sytnikova and specialist of the Department for Work with Foreign Students Ekaterina Pirkovska.

    The opening ceremony was attended by the Director of the Russian Center for Science and Culture in Hanoi Vladimir Murashkin, Counselor of the Russian Embassy in Vietnam, representative of the Ministry of Science and Higher Education of the Russian Federation Evgeny Mitrofanov, as well as representatives of 11 leading Russian educational institutions.

    Exhibitions help talented Vietnamese people to better navigate the educational space of Russia, and Russian universities to prepare for a meeting with Vietnamese students. The project “Universities of Russia” is actively expanding the partner network of Russian universities in Vietnam, which contributes to the development of scientific and educational cooperation between our countries, – emphasized Vladimir Murashkin.

    Representative of the Ministry of Science and Higher Education of the Russian Federation Evgeny Mitrofanov emphasized the importance of Russian higher education for Vietnamese students. He noted that studying in Russia opens up new horizons and opportunities, and also highlighted the possibility of receiving free education through scholarships from the Russian government.

    After the official part, more than 200 Vietnamese students and schoolchildren visited the Polytechnic stand, where they were consulted about the educational programs of bachelor’s, master’s and postgraduate studies at SPbPU, and told about dormitories and scholarships.

    The delegation of the Polytechnic University visited the Tran Phu Special School for Talented Children in Hai Phong, the Le Hong Phong Special School for Talented Children in Nam Dinh and the Hanoi University of Entrepreneurship and Technology. During the Polytechnic presentations, the children had a unique opportunity not only to get acquainted with the educational programs and admission conditions, but also to communicate with the university representatives, ask questions and clarify issues of interest to them.

    In addition, a meeting of delegations of Russian universities was held at the Ministry of Education and Personnel Training of the SRV, dedicated to further cooperation between universities of our country and Vietnamese universities. During this event, many agreements were signed aimed at deepening mutual understanding and cooperation in the field of higher education. Special attention was paid to training personnel in such areas as mathematics, economics, philology and Russian studies.

    Tatyana Sytnikova took part in a press conference with Vietnamese media at the Russian Center for Science and Culture in Hanoi. She emphasized the importance of the educational programs offered by the Polytechnic University for foreign applicants.

    The Polytechnic University offers foreign applicants unique educational programs in the fields of IT, artificial intelligence, linguistics, construction and building design, law, design, economics and management, and biotechnology. We are confident that high-quality education in these areas will open up new horizons and opportunities for a successful career for our students, said Tatyana Sytnikova.

    On the last day of the exhibition, an expert session entitled “University Consortia in Russia and the International Educational Space: Practice and Prospects” was held.

    Recently, we have been actively engaged in solving various issues of cooperation between Russia and Vietnam. As a society acting as a people’s diplomacy, we strive to help both our and your partners in establishing strong ties and contacts. We sincerely hope that cooperation between Vietnam and Russia will develop more and more actively every day, – noted the deputy chairman and secretary general of the Vietnamese-Russian Friendship Society, the main reactor of the Berezka magazine Nguyen Dang Phat.

    Educational exhibitions play a key role in establishing effective links between educational institutions and prospective students, providing a valuable platform for information exchange and broadening horizons. The exhibition in Vietnam was a great opportunity for young people to learn about the opportunities that Polytechnic University offers to international students. Such events not only help to popularize education abroad, but also greatly simplify the process of choosing an educational institution for those who are looking to gain quality education and international experience.

    Let us remind you that selection and competitive events have started for foreign applicants wishing to study at the Polytechnic University for free under the direction of the Ministry of Science and Higher Education of the Russian Federation (under a quota) in the next academic year. You can get up-to-date information about the dates of their holding in the English-language Polytech telegram channel.

    You can also apply for the first qualifying round of the international Open Doors Olympiad: Russian Scholarship project until November 20. From this year onwards, the winners will have the opportunity to enroll in the Polytechnic University’s bachelor’s, master’s and postgraduate programs without entrance examinations and study for free in the 2025–2026 academic year.

    Please note: This information is raw content directly from the source of the information. It is exactly what the source states and does not reflect the position of MIL-OSI or its clients.

    MIL OSI Russia News

  • MIL-OSI USA: Governor Murphy Announces Planned Innovation Center Based in Newark

    Source: US State of New Jersey

    TRENTON – Governor Phil Murphy today announced that the New Jersey Economic Development Authority (NJEDA) and the New Jersey Innovation Institute (NJII), a corporation of the New Jersey Institute of Technology (NJIT), have launched the NJII Venture Studio, the state’s latest Strategic Innovation Center (SIC). The NJII Venture Studio will focus on accelerating and commercializing intellectual property with a focus on high technology and information technology developed by NJIT, NJII and NJIT’s corporate partners, as well as other academic institutions who contribute to the advancement of the industry. This will be the seventh SIC in New Jersey announced under the Murphy Administration.

    “Since I took office, my administration has been laser focused on positioning New Jersey as a national leader in innovation and technology development,” said Governor Phil Murphy. “The NJII Venture Studio, our seventh Strategic Innovation Center, will provide aspiring entrepreneurs with access to cutting-edge technology and the chance to collaborate with industry experts. This exciting initiative reinforces New Jersey’s reputation as a hub for innovation and research and the tremendous expertise within our state’s research universities.”

    NJII, a non-profit subsidiary corporation established by NJIT in 2014, will operate and manage the Studio. The NJEDA and NJII have entered into a non-binding term sheet to establish the creation, funding, and management of the Venture Studio with an opportunity to make equity investments into participating companies. The Studio, which will be located in the Paul Profeta Center for Innovation and Entrepreneurship in Newark, will seek to launch two to three start-ups a year over a four-year period.

    The Venture Studio will provide emerging companies with necessary business training, operating services, physical space, and management guidance to transform their research into commercially viable products and services. Pending approval by its Board, the NJEDA intends to invest $5.8 million into the project on a 1:1 basis with NJII, with program funding for the Venture Studio totaling $11.6 million.

    “Governor Murphy is dedicated to expanding New Jersey’s innovation economy by investing in various industries and equipping entrepreneurs with the necessary resources to grow and scale their businesses,” said NJEDA Chief Executive Officer Tim Sullivan. “Powered by the NJEDA’s Strategic Innovation Center program, the NJII Venture Studio will foster the development of new technologies, good-paying jobs, and long-term, sustainable economic growth throughout the state.”

    NJII intends to partner with NJIT, other New Jersey higher education institutions, and NJII and NJIT’s corporate partners to offer university students hands-on experience and training.

    Since its founding, NJII has spun out two for-profit companies, Healthcare Innovative Solutions (HCIS) and BioCentriq, with hopes to replicate and expand its capacity to spin out startups.

    “We are excited to embark on this partnership with the NJEDA to further build the state’s Innovation Economy,” said Michael Johnson, Ph.D., President of NJII. “We see the NJII Venture Studio as a powerful tool that will bridge the gap between translational research and commercialization, resulting in innovative companies and world-changing technologies.”

    Serving as the SIC’s anchor academic partner, NJIT will provide access to university resources and intellectual property to assist with the launch and development of participating companies.

    “The creation of the NJII Venture Studio aligns perfectly with NJIT’s 2030 strategic plan, which calls for the university to expand on its role as a nexus of innovation—a physical and intellectual focal point for ideas, actions and people that brings together researchers, learners, entrepreneurs and partners from government, industry and the community to pursue innovation,” said Dr. Teik C. Lim, President of NJIT.

    “With this next Strategic Innovation Center, New Jersey continues to unlock unparalleled opportunities to grow cutting-edge industries and cultivate emerging talent right here in the Garden State,” said New Jersey Secretary of Higher Education Brian K. Bridges. “Combined with the expertise and resources of the state’s world-class institutions, like NJIT, we are well-positioned to lead innovation and meet the workforce demands of tomorrow’s economy.” 

    “I commend Governor Murphy and the New Jersey Economic Development Authority for their continued focus on innovation and economic growth with the launch of the Venture Studio in Newark. This new Strategic Innovation Center is a vital step in positioning New Jersey as a national leader in emerging technologies and entrepreneurship,” said Senator Paul Sarlo, Chair of the Senate Budget Committee. “As an alumnus of the New Jersey Institute of Technology, I know firsthand the innovative spirit possessed by the university’s students and faculty. I am thrilled that this center will not only help jumpstart the careers of young entrepreneurs, but also give NJIT students the opportunity to gain hands-on experience in the process of starting a company.”

    “The NJII Venture Studio will offer fresh and exciting opportunities for students and entrepreneurs in Newark and beyond,” said NJEDA Chief Economic Transformation Officer Kathleen Coviello. “The Studio’s prime location and proximity to the state’s key players in the innovation sector will open doors for entrepreneurs to advance their research, testing, and development of diverse technologies.”

    SICs are facilities that support research and development, innovation, and entrepreneurship through mentorship, networking opportunities, hands-on training, business support services, and education opportunities. SICs can be accelerators, incubators, or research centers. Having a physical location where entrepreneurs can collaborate will help support new, diverse innovators and help drive long-term economic growth.

    MIL OSI USA News

  • MIL-OSI: Dave to Report Third Quarter 2024 Results on November 12, 2024 at 5:00 p.m. ET

    Source: GlobeNewswire (MIL-OSI)

    LOS ANGELES, Oct. 25, 2024 (GLOBE NEWSWIRE) — Dave Inc. (“Dave” or the “Company”) (Nasdaq: DAVE), one of the nation’s leading neobanks, will host a conference call on Tuesday, November 12, 2024, at 5:00 p.m. Eastern time to discuss its financial results for the third quarter ended September 30, 2024. The Company’s results will be reported in a press release prior to the call.

    Dave management will host the conference call, followed by a question-and-answer period. The conference call details are as follows:

    Date: Tuesday, November 12, 2024
    Time: 5:00 p.m. Eastern time
    Dial-in registration link: here
    Live webcast registration link: here

    The conference call will also be available for replay in the Events section of the Company’s website, along with the transcript, at https://investors.dave.com.

    If you have any difficulty registering for or connecting to the conference call, please contact Elevate IR at DAVE@elevate-ir.com.

    About Dave

    Dave (Nasdaq: DAVE) is a leading U.S. neobank and fintech pioneer serving millions of everyday Americans. Dave uses disruptive technologies to provide best-in-class banking services at a fraction of the price of incumbents. Dave partners with Evolve Bank & Trust, a FDIC member. For more information about the company, visit: www.dave.com. For investor information and updates, visit: investors.dave.com and follow @davebanking on X.

    Investor Relations Contact

    Sean Mansouri, CFA
    Elevate IR
    DAVE@elevate-ir.com

    Media Contact

    Dan Ury
    press@dave.com

    The MIL Network

  • MIL-OSI: Ethical Web AI announces our new Chief Executive Officer – Manfred Ebensberger, with a shareholder update

    Source: GlobeNewswire (MIL-OSI)

    NEW YORK, Oct. 25, 2024 (GLOBE NEWSWIRE) — Bubblr Inc., d/b/a Ethical Web AI (OTC: BBLR) – a frontrunner in ethical technology determined to revolutionize the digital domain, has announced its new CEO, Manfred Ebensberger.

    Before joining Bubblr, Mr. Ebensberger held senior roles in European investment firms, serving as Managing Director and Asset Manager for Ultra-High-Net-Worth Individuals (UHNWIs). He also served as CEO of a luxury Italian fashion brand in New York. Earlier in his career, Mr. Ebensberger was managing director for several US investment companies and an assistant professor at the University of Innsbruck, Austria. Manfred holds a degree from the University of Innsbruck, Austria, from the University of Venice, Italy and completed a certificate in General Business Studies at UCLA. He is a seasoned professional committed to the vision and direction of the company.

    Steve Morris, CTO and founder of Ethical Web AI remarked, “I am delighted to welcome Manfred as our CEO. Manfred is a highly experienced executive who has a proven track record as the CEO of a publicly listed company, which he led to a very successful buy-out. We have been speaking to Manfred for quite some time, and both parties are in agreement that Manfred is the perfect CEO at this critical point in the company’s development.”

    “Our biggest challenge has been our ability to describe succinctly what our platform does and why it is so revolutionary. Now that the platform is demonstrable, this makes our many years of work understandable, applicable and ultimately profitable. Manfred will lead us into the next stage of our revenue-positive corporate development. It has taken years in the making, but we are finally at a point where we have a product that will change the way we all use and utilize the internet.”

    “Our last press release in August 2024 made clear the massive significance of finally delivering our ethical Web Search (EWS) platform to the point where it is demonstrable. It has taken many years of development to build the EWS platform, and it is the technical manifestation of our US Patent 10977387, which has been independently valued at $4.7bn. Manfred’s role is to oversee the next stage of Ethical Web AI’s development to realize its true potential and value as the world’s most innovative technology company. Our current plans are extremely ambitious, and we are confident that Manfred is the CEO we need to deliver them. They include the following key objectives:”

    Raising substantial new investment capital

    Within the next six months, we plan to raise significant new investment capital. This capital is required to transform the company from a technology development company to a fast-growing, revenue-driven business. There are many conversations currently underway with a number of important investors that we expect to be concluded in the next few months.

    Significantly increase revenue from AI Seek.

    Our generative AI product, AI Seek, is capable of generating significant revenues and is very profitable. We intend to sign a distribution and marketing contract in the next few weeks that will deliver very significant new revenues before the end of the year.

    We already consider AI Seek to be demonstrably superior to Chat GPT in many ways. In particular, AI Seek is unique in that it is totally anonymous for consumers to use. This unique aspect of AI Seek allows us to develop a version of AI Seek that can be safely used by children under direct parental control. A “child-safe” generative AI application will obviously be hugely popular.

    Oversee the rollout of the EWS platform to our first pilot projects.

    We are currently negotiating with a number of potential community licensees to pilot our EWS platform. There are three candidates, and all three are very keen to be the first early adopter. Again, we will be signing our first deal in the next few weeks, and we will make announcements as they happen. The pilot project(s) will provide the necessary learnings required to automate the onboarding of new licensees to the platform entirely. Once we have fully automated the onboarding process, we will begin the global adoption of the product using the tried and tested open-source SaaS model.

    Organic uplist to Nasdaq in 2025

    We have a strategic plan to organically uplist Nasdaq in 2025. In order to qualify for Nasdaq, we need revenues and adequate cash reserves in the bank. The cash reserves will be secured primarily through further external investment capital. Both the revenues and the capital raise are eminently achievable.

    The Nasdaq uplist provides a number of significant benefits for the company and its shareholders. We are certain that we have the most significant and valuable technology that the world has ever witnessed. However, hardly anyone has ever heard of the company. The Nasdaq uplist delivers much more visibility of the company and its products. It provides a platform to showcase our company to both the investment community and retail users.

    Pursue our expected exit plan through acquisition.

    The founder and CTO, Steve Morris, has always maintained that the most likely final exit strategy would be that it would be acquired (or its critical assets acquired) by a global technology business to ensure its global adoption. Ethical Web AI is more like a startup pharmaceutical company that has developed a world-beating drug. Such a company knows it will be acquired by one of the global pharma giants. However, acquisition opportunities were not expected to arise before we were uplisted to Nasdaq. In recent developments, a major technology company has expressed interest in communicating with the company regarding potential future alliances.

    It is clear that our new CEO, Manfred Ebensberger, has a lot to do in the next few months, but he has the complete suite of expertise, knowledge and full support of everyone in the company to help him deliver. We expect to issue many more press releases in the coming weeks.

    About Ethical Web AI:
    Ethical Web AI is an ethical technology company that is championing an anonymous, safe, and fair new internet. We are producing unique intellectual property and technology that is made defensible by our valuable utility software patents.

    Visit the new AI Seek website at: https://www.aiseek.ai.

    If you are an AI Seek user, make sure to add desktop integration by going to the page https://desktop.aiseek.ai/

    For more information about our Company and products, please visit our website at https://www.ethicalweb.ai.

    Media Contact:
    Steve Morris
    Bubblr, Inc.
    (646) 814 7184

    Safe Harbor Statement
    This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. These forward-looking statements are based on the current plans and expectations of management and are subject to a number of uncertainties and risks that could significantly affect the Company’s current plans and expectations, as well as future results of operations and financial condition. The Company reserves the right to update or alter its forward-looking statements, whether as a result of new information, future events or otherwise.

    The MIL Network

  • MIL-OSI: Pacific Financial Corp Earns $2.6 Million, or $0.25 per Diluted Share for Third Quarter 2024; Tangible Book Value Per Share Up 6.6% During Quarter; Board of Directors Declares Quarterly Cash Dividend of $0.14 per Share

    Source: GlobeNewswire (MIL-OSI)

    ABERDEEN, Wash., Oct. 25, 2024 (GLOBE NEWSWIRE) — Pacific Financial Corporation (OTCQX: PFLC), (“Pacific Financial”) or the (“Company”), the holding company for Bank of the Pacific (the “Bank”), reported net income of $2.6 million, or $0.25 per diluted share for the third quarter of 2024, compared to $2.1 million, or $0.21 per diluted share for the second quarter of 2024, and $3.6 million, or $0.35 per diluted share for the third quarter of 2023. All results are unaudited.

    Pacific Financials’ third quarter 2024 operating results reflected the following changes from the second quarter of 2024: (1) higher net interest income as the rise in loan and investment yields outpaced the rise in deposit and borrowing costs; (2) a negative provision for credit losses due to lower provision for unfunded loans; (3) lower non-interest income due to smaller gains on the sale of loans and investment securities; (4) slightly lower non-interest expenses; (5) a small decrease in total gross loans of 0.6% offset by an increase in the purchase of investment securities with the balance of investment securities increasing $18.1 million, or 6.5% during the third quarter; (6) an increase in total deposits of 2.6% to $1.0 billion at September 30, 2024, and (7) a $6.2 million increase in shareholder equity, or 5.4%. Tangible book value per share increased 6.6% during the quarter to $10.47.

    The board of directors of Pacific Financial declared a quarterly cash dividend of $0.14 per share on October 23, 2024. The dividend will be payable on November 22, 2024 to shareholders of record on November 8, 2024. Additionally, the Board of Directors has authorized an additional $2.6 million toward future repurchases, or approximately 2.0% of total shares outstanding. The current stock repurchase program expires in November 2024.

    “Our core operations continue to remain strong,” said Denise Portmann, President and Chief Executive Officer. “Our focused efforts on deposit retention, combined with the efforts of our new commercial loan and deposit teams, resulted in increased business relationships during the third quarter. Additionally, we added to our investment securities portfolio to increase yields. During the fourth quarter, we will be closing our mortgage banking division which we anticipate will improve the efficiency of our operation and improve earnings. However, the fourth quarter will reflect some one-time charges related to severance, contract and lease terminations.”

    Third Quarter 2024 Financial Highlights:

    • Return on average assets (“ROAA”) was 0.90%, compared to 0.76% for the second quarter 2024, and 1.21% for the third quarter 2023.
    • Return on average equity (“ROAE”) was 8.77%, compared to 7.47% from the preceding quarter, and 13.16% from the third quarter a year earlier.
    • Net interest income was $11.2 million, compared to $10.8 million for the second quarter of 2024, and $12.3 million for the third quarter of 2023.
    • Net interest margin (“NIM”) increased to 4.19%, compared to 4.15% from the preceding quarter, and 4.37% for the third quarter a year ago. The increase in the net interest margin in the most recent quarter was due to increased yields on interest-earning assets outpacing the increased cost of interest-bearing liabilities.
    • Provision for credit losses was a benefit of $66,000 for the third quarter ended September 30, 2024 compared to a provision of $304,000 for the preceding quarter and $244,000 in the third quarter a year ago. The benefit largely reflected lower provisions for unfunded loans relative to prior periods.
    • Gross loans balances held in portfolio decreased by $4.4 million, or less than 1% to $699.6 million at September 30, 2024, compared to $704.0 million at June 30, 2024, and increased by $27.6 million, or 4%, from $672.0 million at September 30, 2023.
    • Total deposits increased $25.8 million to $1.01 billion, compared to $985.6 million at June 30, 2024, and decreased from $1.05 billion at September 30, 2023. Core deposits represented 87% of total deposits, with non-interest bearing deposits representing 38% of total deposits at September 30, 2024.
    • Coverage of short-term funds available to uninsured and uncollateralized deposits was 229% at September 30, 2024 and June 30, 2024. Uninsured or uncollateralized deposits were 25% of total deposits at September 30, 2024, and 24% at June 30, 2024.
    • Asset quality remains solid with nonperforming assets to total assets at 0.10%, compared to 0.12% three months earlier, and 0.10% at September 30, 2023. Accruing loans past due 30 or more days represent only 0.03% of total loans at September 30, 2024.
    • Tangible book value per share increased 6.6% during the quarter to $10.47 per share at September 30, 2024 from $9.82 per share at June 30, 2024. The increase was largely the result of a decline in interest rates and its impact on the fair market value of securities.
    • Pacific Financial and Bank of the Pacific continued to exceed regulatory well-capitalized requirements. At September 30, 2024 Pacific Financial’s estimated leverage ratio was 11.6% and its estimated total risk-based capital ratio was 17.9%.

    Balance Sheet Review

    Total assets increased 3% to $1.16 billion at September 30, 2024, compared to $1.12 billion at June 30, and decreased 2% from $1.18 billion at September 30, 2023.

    Liquidity metrics continued to remain strong with total liquidity, both on and off balance sheet sources, at $576.8 million as of September 30, 2024. The Bank has established collateralized credit lines with borrowing capacity from the Federal Home Loan Bank of Des Moines (FHLB) and from the Federal Reserve Bank of San Francisco, as well as $60.0 million in unsecured borrowing lines from various correspondent banks. There was no balance outstanding on any of these facilities at quarter-end.

    The following table summarizes the Bank’s available liquidity:

    LIQUIDITY (unaudited) Period Ended   Change from   % of Deposits
    ($ in 000s)    
                                       
        Sep 30,   Jun 30,   Sep 30,     Jun 30, 2024   Sep 30, 2023   Sep 30, Jun 30, Sep 30,
        2024   2024   2023     $ %   $ %   2024 2024 2023
    Short-term Funding                                  
    Cash and cash equivalents $ 85,430 $ 63,183 $ 147,970   $ 22,247 35 % $ (62,540 ) -42 %   8 % 6 % 14 %
    Unencumbered AFS Securities   154,565   139,581   123,842     14,984 11 %   30,723   25 %   15 % 14 % 12 %
    Secured lines of Credit (FHLB, FRB)   336,771   332,674   318,557     4,097 1 %   18,214   6 %   33 % 34 % 30 %
    Short-term Funding $ 576,766 $ 535,438 $ 590,369   $ 41,328 8 % $ (13,603 ) -2 %   56 % 54 % 56 %


    Investment securities:
    The investment securities portfolio increased 6% to $296.8 million, compared to $278.7 million at June 30, 2024 and increased 3% compared to the like period a year ago. The increase from the prior quarter was primarily due to the purchase of collateralized mortgage obligations and mortgage backed securities. U.S. Treasury bonds, and securities issued by the U.S. Government sponsored agencies accounted for 85% of the investment portfolio as of September 30, 2024, June 30, 2024, and September 30, 2023. Within that total, collateralized mortgage obligations accounted for 48% of the investment portfolio at September 30, 2024, compared to 45% the previous quarter.

    The average adjusted duration to reset of the investment securities portfolio was 4.2 years at September 30, 2024. Net unrealized losses on the investments classified as available for sale declined $7.2 million to $14.8 million ($11.5 million after-tax) at September 30, 2024, or 5% of AFS portfolio.

    Gross loans balances excluding loans held for sale decreased $4.4 million, or 1%, to $699.6 million at September 30, 2024, compared to $704.0 million at June 30, 2024. During the third quarter, loan pipelines and originations slowed from prior levels as borrowers continued to adjust to higher interest rates and economic uncertainty. Due primarily to loan amortization the loan portfolio reflected slight declines in most categories except multi-family lending which increased $2.8 million. Year-over-year loan growth was 4%, or $27.6 million, with the largest increases in residential 1-4 family and multi-family loans which increased $14.8 million and $11.7 million, respectively. Loans classified as commercial real estate for regulatory concentration purposes totaled $261.3 million at September 30, 2024, or 185% of total risk based capital.

    The Company continues to manage concentration limits that establish maximum exposure levels by certain industry segments, loan product types, geography and single borrower limits. In addition, the loan portfolio continues to be well-diversified and is collateralized with assets predominantly within the Company’s Western Washington and Oregon markets.

    Credit quality: Non-performing assets were minimal and remained at $1.1 million, or 0.10% of total assets at September 30, 2024, compared to $1.2 million, or 0.10% at September 30, 2023. The Company has zero other real estate owned as of September 30, 2024 and accruing loans past due more than 30 days represent only 0.04% of total loans.

    Allowance for credit losses (“ACL”) for loans was $8.9 million, or 1.27% of gross loans at September 30, 2024, compared to $8.9 million or 1.26% of loans at June 30, 2024 and $8.3 million or 1.24% at September 30, 2023.

    A negative provision for credit losses of $66,000 was recorded in the current quarter, reflecting less allowance requirements for unfunded loans. This compares to a provision for credit losses of $304,000 in the second quarter of 2024 and $244,000 for the third quarter of 2023. Net charge-offs for the current quarter remained minimal and reflected a net recovery of $11,000, compared to a net charge-off of $56,000 for the preceding quarter and $125,000 for the third quarter one year ago.

    Total deposits increased to $1.01 billion at September 30, 2024, compared to $985.6 million at June 30, 2024 and decreased from $1.05 billion at September 30, 2023. The bank has focused efforts to retain customer relationships resulting in a $22.1 million increase in business deposits.

    Non-interest-bearing account balances, composed of commercial banking relationships, are the largest component of the deposit portfolio at 38% at September 30, 2024 and June 30, 2024. Money market deposits currently represent the second largest component of the deposit base and increased $11.5 million from the linked quarter and $12.8 million from the same quarter a year ago and represent 19%, 18%, and 17%, of total deposits, at September 30, 2024, June 30, 2024, and September 30, 2023, respectively. Interest-bearing demand deposits are the third largest component of the deposit base representing 18% of total deposits at September 30, 2024. Pacific Financial continues to benefit from a strong core deposit base, with core deposits representing 87% of total deposits at quarter end.

    Shareholder’s equity increased $6.2 million, or 5% to $121.1 million at September 30, 2024, compared to $114.9 million at June 30, 2024, and increased $14.5 million, or 14% compared to $106.6 million at September 30, 2023. The increase in shareholders’ equity during the current quarter was due to quarterly net income, a decrease in unrealized losses on available-for-sale securities and dividends paid to shareholders. Net unrealized losses (after-tax) on available-for-sale securities were $11.5 million at September 30, 2024 compared to $17.1 million at June 30, 2024, and $23.1 million at September 30, 2023. This decrease in net unrealized losses reflects lower longer-term market interest rates at the end of the quarter.

    Book value per common share was $11.78 at September 30, 2024, compared to $11.12 at June 20, 2024, and $10.22 at September 30, 2023. The Company’s tangible common equity ratio was 9.4% at September 30, 2024 and 9.1% at June 30, 2024, compared to 8.0% at September 30, 2023. Regulatory capital ratios of both the Company and the Bank continue to exceed the well-capitalized regulatory thresholds, with the Company’s leverage ratio at 11.6% and total risk-based capital ratio at 17.9% as of September 30, 2024. These regulatory capital ratios are estimates, pending completion and filing of regulatory reports.

    The current stock repurchase program expires in November 2024. The Board of Directors has authorized an additional $2.6 million toward future repurchases, or approximately 2.0% of total shares outstanding.

    Income Statement Review

    Net interest income increased $438,000 to $11.2 million for the third quarter of 2024, compared to $10.8 million for the second quarter of 2024, and decreased $1.1 million compared to $12.3 million for the third quarter a year ago. The change in the current quarter compared to the preceding quarter reflects higher yields on a larger investment portfolio and an increase in loan yields due primarily to repricing of loans. Increasing deposit costs offset some of the benefit from higher yielding investments and loans. For the current quarter compared to the like period a year ago, funding costs have outpaced the rising yields on investments and loans.

    The Bank’s net interest margin continued to remain strong at 4.19% for the quarter ended September 30, 2024 compared to 4.15% the preceding quarter. For the third quarter ended September 30, 2023, the net interest margin was 4.37% reflecting lower funding costs relative to more recent periods.

    Yields on total interest earning assets increased 14 basis points to 5.29% for the third quarter of 2024 compared to 5.15% for the prior quarter and 5.06% in the like quarter a year ago. Average loan yields increased to 5.99% during the current quarter, compared to 5.80% for the preceding quarter and 5.71% for the third quarter 2023.

    The Bank’s total cost of funds increased to 1.15% for the current quarter, compared to 1.05% for the preceding quarter, and 0.72% for the third quarter 2023. The increase in the costs of deposits was due to retention efforts and competitive pricing of deposit products. The percentage of non-interest bearing deposits remained high at 38% for the current quarter.

    Noninterest income decreased to $1.7 million for the current quarter, compared to $2.0 million for the linked quarter and increased from $1.6 million a year earlier. The decrease compared to the linked quarter was primarily due to decreased mortgage banking loan production and no gains on the sale of investment securities.

    The company plans to close its mortgage banking division by the end of 2024 which is expected to reduce non-interest income offset by a reduction of personnel and overhead expenses associated with the operation. The elimination of the mortgage banking division is expected to improve the efficiency of the company after severance and contract termination expenses are realized in the fourth quarter of 2024.

    Fee and service charge income remained consistent in the third quarter of 2024 at $1.2 million compared to the previous quarter and the third quarter of 2023.

    Noninterest expenses decreased to $9.7 million for the third quarter of 2024 compared to $9.8 million for the prior quarter and increased from $9.1 million for the third quarter of 2023. Within the total of noninterest expenses for the current quarter compared to the prior quarter, the largest category of salaries and employee benefits remained at $6.3 million. Similarly, data processing and occupancy expenses remained consistent to the prior quarter.

    The company’s efficiency ratio decreased to 75.48% for the third quarter of 2024, compared to 77.34% in the preceding quarter and increased from 65.78% in the same quarter a year ago. The increase in the efficiency ratio relative to the previous year primarily relates to the decreased net interest margin and higher overhead expenses related to the hiring, building and marketing of new commercial loan and deposit teams.

    Income tax expense: Federal and Oregon state income tax expenses totaled $633,000 for the current quarter, and $454,000 for the preceding quarter, resulting in effective tax rates of 19.6% and 17.6%, respectively. These income tax expenses reflect the benefits of tax exempt income and credits on tax-exempt loans and investments, affordable housing tax credit financing, and investments in bank owned life insurance.

    FINANCIAL HIGHLIGHTS (unaudited) Quarter Ended   Change From   Nine Months Ended   Change
         
    (In 000s, except per share data)                                          
        Sep 30,   Jun 30,   Sep 30,     Jun 30, 2024   Sep 30, 2023   Sep 30,   Sep 30,        
        2024     2024     2023       $ %   $ %   2024    2023      $ %
    Earnings Ratios & Data                                          
    Net Income $ 2,594   $ 2,126   $ 3,645     $ 468   22 % $ (1,051 ) -29 % $ 7,370   $ 11,663     $ (4,293 ) -37 %
    Return on average assets   0.90 %   0.76 %   1.21 %     0.14 %     -0.31 %     0.87 %   1.28 %     -0.41 %  
    Return on average equity   8.77 %   7.47 %   13.16 %     1.30 %     -4.39 %     8.52 %   14.34 %     -5.82 %  
    Efficiency ratio (1)   75.48 %   77.34 %   65.78 %     -1.86 %     9.70 %     75.67 %   64.64 %     11.03 %  
    Net-interest margin %(2)   4.19 %   4.15 %   4.37 %     0.04 %     -0.18 %     4.24 %   4.40 %     -0.16 %  
                                               
    Share Ratios & Data                                          
    Basic earnings per share $ 0.25   $ 0.21   $ 0.35     $ 0.04   19 % $ (0.10 ) -29 % $ 0.71   $ 1.12     $ (0.41 )  
    Diluted earning per share $ 0.25   $ 0.21   $ 0.35     $ 0.04   19 % $ (0.10 ) -29 % $ 0.71   $ 1.12     $ (0.41 )  
    Book value per share(3) $ 11.78   $ 11.12   $ 10.22     $ 0.66   6 % $ 1.56   15 %                
    Tangible book value per share(4) $ 10.47   $ 9.82   $ 8.93     $ 0.65   7 % $ 1.54   17 %                
    Common shares outstanding   10,283     10,336     10,427       (53 ) -1 %   (144 ) -1 %                
    PFLC stock price $ 11.65   $ 9.76   $ 10.00     $ 1.89   19 % $ 1.65   17 %                
    Dividends paid per share $ 0.14   $ 0.14   $ 0.13     $   0 % $ 0.01   8 % $ 0.42   $ 0.39     $ 0.03   8 %
                                               
    Balance Sheet Data                                          
    Assets $ 1,158,410   $ 1,124,295   $ 1,181,975     $ 34,115   3 % $ (23,565 ) -2 %                
    Portfolio Loans $ 699,603   $ 703,977   $ 671,969     $ (4,374 ) -1 % $ 27,634   4 %                
    Deposits $ 1,011,473   $ 985,627   $ 1,051,256     $ 25,846   3 % $ (39,783 ) -4 %                
    Investments $ 296,792   $ 278,728   $ 289,152     $ 18,064   6 % $ 7,640   3 %                
    Shareholders equity $ 121,087   $ 114,923   $ 106,601     $ 6,164   5 % $ 14,486   14 %                
                                               
    Liquidity Ratios                                          
    Short-term funding to uninsured                                          
    and uncollateralized deposits   229 %   229 %   254 %     0 %     -25 %                  
    Uninsured and uncollateralized                                          
    deposits to total deposits   25 %   24 %   22 %     1 %     3 %                  
    Portfolio loans to deposits ratio   69 %   71 %   63 %     -2 %     6 %                  
                                               
    Asset Quality Ratios                                          
    Non-performing assets to assets   0.10 %   0.12 %   0.10 %     -0.02 %     0.00 %                  
    Non-accrual loans to portfolio loans   0.16 %   0.19 %   0.18 %     -0.03 %     -0.02 %                  
    Loan losses to avg portfolio loans   -0.01 %   0.03 %   0.07 %     -0.04 %     -0.08 %     0.01 %   0.04 %     -0.03 %  
    ACL to portfolio loans   1.27 %   1.26 %   1.24 %     0.01 %     0.03 %                  
                                               
    Capital Ratios (PFC)                                          
    Total risk-based capital ratio   17.9 %   17.6 %   17.6 %     0.3 %     0.3 %                  
    Tier 1 risk-based capital ratio   16.7 %   16.4 %   16.5 %     0.3 %     0.2 %                  
    Common equity tier 1 ratio   15.0 %   14.8 %   14.8 %     0.2 %     0.2 %                  
    Leverage ratio   11.6 %   11.7 %   10.7 %     -0.1 %     0.9 %                  
    Tangible common equity ratio   9.4 %   9.1 %   8.0 %     0.3 %     1.4 %                  
                                               
    (1) Non-interest expense divided by net interest income plus noninterest income.
    (2) Tax-exempt income has been adjusted to a tax equivalent basis at a rate of 21%.
    (3) Book value per share is calculated as the total common shareholders’ equity divided by the period ending number of common stock shares outstanding.
    (4) Tangible book value per share is calculated as the total common shareholders’ equity less total intangible assets and liabilities, divided by the period
    ending number of common stock shares outstanding.
    INCOME STATEMENT (unaudited) Quarter Ended   Change From   Nine Months Ended   Change
         
    ($ in 000s)                                          
        Sep 30,   Jun 30,   Sep 30,     Jun 30, 2024   Sep 30, 2023   Sep 30,   Sep 30,        
        2024     2024     2023       $ %   $ %   2024    2023      $ %
    Interest Income                                          
    Loan interest & fee income $ 10,520   $ 10,109   $ 9,549     $ 411   4 % $ 971   10 % $ 30,853   $ 27,166     $ 3,687   14 %
    Interest bearing cash income   1,108     847     2,322       261   31 %   (1,214 ) -52 %   2,890     7,669       (4,779 ) -62 %
    Investment income   2,503     2,410     2,371       93   4 %   132   6 %   7,388     6,832       556   8 %
    Interest Income   14,131     13,366     14,242       765   6 %   (111 ) -1 %   41,131     41,667       (536 ) -1 %
                                               
    Interest Expense                                          
    Deposits interest expense   2,684     2,358     1,716       326   14 %   968   56 %   7,033     3,437       3,596   105 %
    Other borrowings interest expense   243     242     246       1   0 %   (3 ) -1 %   727     682       45   7 %
    Interest Expense   2,927     2,600     1,962       327   13 %   965   49 %   7,760     4,119       3,641   88 %
    Net Interest Income   11,204     10,766     12,280       438   4 %   (1,076 ) -9 %   33,371     37,548       (4,177 ) -11 %
    Provision (benefit) for credit losses   (66 )   304     244       (370 ) -122 %   (310 ) -127 %   271     409       (138 ) -34 %
    Net Interest Income after provision   11,270     10,462     12,036       808   8 %   (766 ) -6 %   33,100     37,139       (4,039 ) -11 %
                                               
    Non-Interest Income                                          
    Fees and service charges   1,225     1,198     1,248       27   2 %   (23 ) -2 %   3,523     3,695       (172 ) -5 %
    Gain on sale of investments, net       121           (121 ) -100 %     -100 %   121     (154 )     275   -179 %
    Gain on sale of loans, net   267     445     170       (178 ) -40 %   97   57 %   865     540       325   60 %
    Income on bank-owned insurance   188     182     174       6   3 %   14   8 %   550     509       41   8 %
    Other non-interest income   7     17     18       (10 ) -59 %   (11 ) -61 %   34     53       (19 ) -36 %
    Non-Interest Income   1,687     1,963     1,610       (276 ) -14 %   77   5 %   5,093     4,643       450   10 %
                                               
    Non-Interest Expense                                          
    Salaries and employee benefits   6,341     6,321     5,560       20   0 %   781   14 %   18,656     17,006       1,650   10 %
    Occupancy   601     564     501       37   7 %   100   20 %   1,806     1,536       270   18 %
    Furniture, Fixtures & Equipment   286     267     252       19   7 %   34   13 %   837     808       29   4 %
    Marketing & donations   201     176     160       25   14 %   41   26 %   531     380       151   40 %
    Professional services   233     327     301       (94 ) -29 %   (68 ) -23 %   897     941       (44 ) -5 %
    Data Processing & IT   1,185     1,165     1,161       20   2 %   24   2 %   3,541     3,490       51   1 %
    Other   883     1,025     1,207       (142 ) -14 %   (324 ) -27 %   2,839     3,174       (335 ) -11 %
    Non-Interest Expense   9,730     9,845     9,142       (115 ) -1 %   588   6 %   29,107     27,335       1,772   6 %
    Income before income taxes   3,227     2,580     4,504       647   25 %   (1,277 ) -28 %   9,086     14,447       (5,361 ) -37 %
    Provision for income taxes   633     454     859       179   39 %   (226 ) -26 %   1,716     2,784       (1,068 ) -38 %
    Net Income $ 2,594   $ 2,126   $ 3,645     $ 468   22 %   (1,051 ) -29 % $ 7,370   $ 11,663     $ (4,293 ) -37 %
                                               
    Effective tax rate   19.6 %   17.6 %   19.1 %     2.0 %     0.5 %     18.9 %   19.3 %     -0.4 %  
    BALANCE SHEET (unaudited) Period Ended   Change from   % of Total
    ($ in 000s)    
                                       
        Sep 30,   Jun 30,   Sep 30,     Jun 30, 2024 Sep 30, 2023   Sep 30, Jun 30, Sep 30,
        2024     2024     2023       $ %   $ %   2024  2024  2023 
    Assets                                  
    Cash on hand and in banks $ 20,621   $ 17,362   $ 12,052     $ 3,259   19 % $ 8,569   71 %   2 % 2 % 2 %
    Interest bearing deposits   80,522     58,586     146,886       21,936   37 %   (66,364 ) -45 %   7 % 5 % 12 %
    Investment securities   296,792     278,728     289,152       18,064   6 %   7,640   3 %   26 % 25 % 24 %
    Loans held-for-sale   140     4,051     637       (3,911 ) -97 %   (497 ) -78 %   0 % 0 % 0 %
    Portfolio Loans, net of deferred fees   698,974     703,322     671,134       (4,348 ) -1 %   27,840   4 %   60 % 63 % 57 %
    Allowance for credit losses   (8,897 )   (8,859 )   (8,347 )     (38 ) 0 %   (550 ) 7 %   -1 % -1 % -1 %
    Net loans   690,077     694,463     662,787       (4,386 ) -1 %   27,290   4 %   60 % 62 % 56 %
    Premises & equipment   17,124     15,571     13,756       1,553   10 %   3,368   24 %   2 % 2 % 2 %
    Goodwill & Other Intangibles   13,435     13,435     13,435         0 %     0 %   1 % 1 % 1 %
    Bank-owned life Insurance   28,084     27,860     27,321       224   1 %   763   3 %   2 % 2 % 2 %
    Other assets   11,615     14,239     15,949       (2,624 ) -18 %   (4,334 ) -27 %   1 % 1 % 1 %
    Total Assets $ 1,158,410   $ 1,124,295   $ 1,181,975     $ 34,115   3 % $ (23,565 ) -2 %   100 % 100 % 100 %
                                       
    Liabilities & Shareholders’ Equity                                  
    Deposits $ 1,011,473   $ 985,627   $ 1,051,256     $ 25,846   3 % $ (39,783 ) -4 %   87 % 88 % 89 %
    Borrowings   13,403   $ 13,403   $ 13,403         0 %     0 %   1 % 1 % 1 %
    Other liabilities   12,447   $ 10,342   $ 10,715       2,105   20 %   1,732   16 %   1 % 1 % 1 %
    Shareholders’ equity   121,087   $ 114,923   $ 106,601       6,164   5 %   14,486   14 %   11 % 10 % 9 %
    Liabilities & Shareholders’ Equity $ 1,158,410   $ 1,124,295   $ 1,181,975     $ 34,115   3 % $ (23,565 ) -2 %   100 % 100 % 100 %
    INVESTMENT COMPOSITION & CONCENTRATIONS (unaudited) Period Ended   Change from   % of Total
       
    ($ in 000s)                                  
        Sep 30,   Jun 30,   Sep 30,     Jun 30, 2024 Sep 30, 2023   Sep 30, Jun 30, Sep 30,
        2024     2024     2023       $ %   $ %   2024  2024  2023 
    Investment Securities                                  
    Collateralized mortgage obligations $ 141,842   $ 125,937   $ 126,376     $ 15,905   13 % $ 15,466   12 %   48 % 45 % 45 %
    Mortgage backed securities   41,264     37,159     38,322       4,105   11 %   2,942   8 %   14 % 13 % 13 %
    U.S. Government and agency securities   68,961     72,504     82,292       (3,543 ) -5 %   (13,331 ) -16 %   23 % 27 % 27 %
    Municipal securities   44,725     43,128     42,162       1,597   4 %   2,563   6 %   15 % 15 % 15 %
    Investment Securities $ 296,792   $ 278,728   $ 289,152     $ 18,064   6 % $ 7,640   3 %   100 % 100 % 100 %
                                       
    Held to maturity securities $ 42,301   $ 43,244   $ 56,469     $ (943 ) -2 % $ (14,168 ) -25 %   14 % 16 % 20 %
    Available for sale securities $ 254,491   $ 235,484   $ 232,683     $ 19,007   8 % $ 21,808   9 %   86 % 84 % 80 %
                                       
    Government & Agency securities $ 252,039   $ 235,570   $ 246,956     $ 16,469   7 % $ 5,083   2 %   85 % 85 % 85 %
    AAA, AA, A rated securities $ 44,084   $ 42,471   $ 41,025     $ 1,613   4 % $ 3,059   7 %   15 % 15 % 14 %
    Non-rated securities $ 669   $ 687   $ 1,171     $ (18 ) -3 % $ (502 ) -43 %   0 % 0 % 0 %
                                       
    AFS Unrealized Gain (Loss) $ (14,804 ) $ (21,978 ) $ (29,783 )   $ 7,174   -33 % $ 14,979   -50 %   -5 % -8 % -10 %
    PORTFOLIO LOAN COMPOSITION & CONCENTRATIONS (unaudited) Period Ended   Change from   % of Total
       
    ($ in 000s)                                  
        Sep 30,   Jun 30,   Sep 30,     Jun 30, 2024 Sep 30, 2023   Sep 30, Jun 30, Sep 30,
        2024     2024     2023       $ %   $ %   2024  2024  2023 
    Portfolio Loans                                  
    Commercial & agriculture $ 73,002   $ 74,952   $ 73,232     $ (1,950 ) -3 % $ (230 ) 0 %   10 % 11 % 11 %
    Real estate:                                  
    Construction and development   46,569     47,856     42,584       (1,287 ) -3 %   3,985   9 %   7 % 7 % 6 %
    Residential 1-4 family   105,298     105,807     90,449       (509 ) 0 %   14,849   16 %   15 % 14 % 14 %
    Multi-family   60,773     58,003     49,092       2,770   5 %   11,681   24 %   9 % 8 % 7 %
    CRE — owner occupied   167,086     169,491     164,057       (2,405 ) -1 %   3,029   2 %   24 % 24 % 25 %
    CRE — non owner occupied   157,347     157,591     154,993       (244 ) 0 %   2,354   2 %   22 % 22 % 23 %
    Farmland   26,553     27,195     27,641       (642 ) -2 %   (1,088 ) -4 %   4 % 4 % 4 %
    Consumer   62,975     63,082     69,921       (107 ) 0 %   (6,946 ) -10 %   9 % 10 % 10 %
    Portfolio Loans   699,603     703,977     671,969       (4,374 ) -1 %   27,634   4 %   100 % 100 % 100 %
    Less: ACL   (8,897 )   (8,859 )   (8,347 )                      
    Less: deferred fees   (629 )   (655 )   (835 )                      
    Net loans $ 690,077   $ 694,463   $ 662,787                        
                                       
    Regulatory Commercial Real Estate $ 261,292   $ 260,068   $ 244,277     $ 1,224   0 % $ 17,015   7 %   37 % 37 % 36 %
    Total Risk Based Capital(1) $ 140,971   $ 140,176   $ 137,473     $ 795   1 % $ 3,498   3 %        
    CRE to Risk Based Capital(1)   185 %   186 %   178 %       -1 %     7 %        
    CRE–MULTI-FAMILY & NON OWNER OCCUPIED COMPOSITION (unaudited) Period Ended   Change from   % of Total
       
    ($ in 000s)                                  
        Sep 30,   Jun 30,   Sep 30,     Jun 30, 2024 Sep 30, 2023   Sep 30, Jun 30, Sep 30,
        2024   2024   2023     $ %   $ %   2024  2024  2023 
    Collateral Composition(2)                                  
    Multifamily $ 63,099 $ 63,243 $ 54,677   $ (144 ) 0 % $ 8,422   15 %   27 % 27 % 26 %
    Retail   37,685   36,074   28,657     1,611   4 %   9,028   32 %   16 % 16 % 13 %
    Hospitality   30,844   30,248   32,190     596   2 %   (1,346 ) -4 %   13 % 13 % 15 %
    Mini Storage   25,758   23,619   20,977     2,139   9 %   4,781   23 %   11 % 11 % 10 %
    Office   22,921   23,266   27,075     (345 ) -1 %   (4,154 ) -15 %   10 % 10 % 13 %
    Mixed Use   22,708   23,520   22,457     (812 ) -3 %   251   1 %   10 % 10 % 11 %
    Industrial   13,912   13,691   10,898     221   2 %   3,014   28 %   6 % 6 % 5 %
    Warehouse   7,582   7,631   6,204     (49 ) -1 %   1,378   22 %   3 % 3 % 3 %
    Special Purpose   6,968   7,014   7,146     (46 ) -1 %   (178 ) -2 %   3 % 3 % 3 %
    Other   3,174   3,213   3,380     (39 ) -1 %   (206 ) -6 %   1 % 1 % 1 %
    Total $ 234,651 $ 231,519 $ 213,661   $ 3,132   1 % $ 20,990   10 %   100 % 100 % 100 %
                                       
    (1) Bank of the Pacific                      
    (2) Includes loans in process of construction                      
    CREDIT QUALITY (unaudited) Period Ended   Change from
     
    ($ in 000s)   Sep 30,   Jun 30,   Sep 30,     Jun 30, 2024 Jun 30, 2024
        2024    2024    2023      $ %   $ %
    Risk Rating Distribution                          
    Pass $ 691,199   $ 694,272   $ 664,327     $ (3,073 ) 0 %   26,872   4 %
    Special Mention   4,789     4,731     1,626       58   1 %   3,163   195 %
    Substandard   3,615     4,974     6,016       (1,359 ) -27 %   (2,401 ) -40 %
    Portfolio Loans $ 699,603   $ 703,977   $ 671,969     $ (4,374 ) -1 % $ 27,634   4 %
                               
    Nonperforming Assets                          
    Nonaccruing loans   1,138     1,370     1,219     $ (232 ) -17 %   (81 ) -7 %
    Other real estate owned                   0 %     0 %
    Nonperforming Assets $ 1,138   $ 1,370   $ 1,219     $ (232 ) -17 %   (81 ) -7 %
                               
    Credit Metrics                          
    Classified loans1 to portfolio loans   0.52 %   0.71 %   0.90 %     -0.19 %     -0.38 %  
    ACL to classified loans1   246.11 %   178.11 %   132.68 %     68.00 %     113.43 %  
    Loans past due 30+ days to portfolio loans2   0.03 %   0.04 %   0.25 %     -0.01 %     -0.22 %  
    Nonperforming assets to total assets   0.10 %   0.12 %   0.10 %     -0.02 %     0.00 %  
    Nonaccruing loans to portfolio loans   0.16 %   0.19 %   0.18 %     -0.03 %     -0.02 %  
                               
    (1) Classified loans include loans rated substandard or worse and are defined as loans having a well-defined weakness or weaknesses related to the borrower’s financial capacity or to pledged collateral that may jeopardize the repayment of the debt. They are characterized by the possibility that the Bank may sustain some loss if the deficiencies giving rise to the substandard classification are not corrected.
    (2) Excludes non-accrual loans
    DEPOSIT COMPOSITION & CONCENTRATIONS (unaudited) Period Ended   Change from   % of Total
       
    ($ in 000s)                                  
        Sep 30,   Jun 30,   Sep 30,     Jun 30, 2024 Sep 30, 2023   Sep 30, Jun 30, Sep 30,
        2024   2024   2023     $ %   $ %   2024  2024  2023 
    Deposits                                  
    Interest-bearing demand $ 183,337 $ 179,278 $ 208,091   $ 4,059   2 % $ (24,754 ) -12 %   18 % 19 % 20 %
    Money market   192,185   180,727   179,367     11,458   6 %   12,818   7 %   19 % 18 % 17 %
    Savings   117,131   121,851   138,981     (4,720 ) -4 %   (21,850 ) -16 %   12 % 12 % 13 %
    Time deposits (CDs)   133,995   125,560   92,720     8,435   7 %   41,275   45 %   13 % 13 % 9 %
    Total interest-bearing deposits   626,648   607,416   619,159     19,232   3 %   7,489   1 %   62 % 62 % 59 %
    Non-interest bearing demand   384,825   378,211   432,097     6,614   2 %   (47,272 ) -11 %   38 % 38 % 41 %
    Total deposits $ 1,011,473 $ 985,627 $ 1,051,256   $ 25,846   3 % $ (39,783 ) -4 %   100 % 100 % 100 %
                                       
    Insured Deposits $ 636,725 $ 632,923 $ 666,308   $ 3,802   1 % $ (414,008 ) -62 %   63 % 64 % 63 %
    Collateralized Deposits   122,448   118,966   152,960     3,482   3 %   (30,512 ) -20 %   12 % 12 % 15 %
    Uninsured Deposits   252,300   233,738   231,988     18,562   8 %   404,737   174 %   25 % 24 % 22 %
    Total Deposits $ 1,011,473 $ 985,627 $ 1,051,256   $ 25,846   3 % $ (39,783 ) -4 %   100 % 100 % 100 %
                                       
    Consumer Deposits $ 458,097 $ 458,249 $ 466,877   $ (152 ) 0 % $ (8,780 ) -2 %   45 % 47 % 44 %
    Business Deposits   420,845   398,719   429,443     22,126   6 %   (8,598 ) -2 %   42 % 40 % 41 %
    Public Deposits   132,531   128,659   154,936     3,872   3 %   (22,405 ) -14 %   13 % 13 % 15 %
    Total Deposits $ 1,011,473 $ 985,627 $ 1,051,256   $ 25,846   3 % $ (39,783 ) -4 %   100 % 100 % 100 %
    NET INTEREST MARGIN (unaudited) Quarter Ended   Change From   Nine Months Ended   Change
         
    ($ in 000s)                                          
        Sep 30,   Jun 30,   Sep 30,     Jun 30, 2024   Sep 30, 2023   Sep 30,   Sep 30,        
        2024    2024    2023      $ %   $ %   2024    2023      $ %
                                               
    Average Interest Bearing Balances                                          
    Portfolio loans $ 697,904   $ 699,404   $ 665,300     $ (1,500 ) 0 % $ 32,604   5 % $ 695,418   $ 653,619     $ 41,799   6 %
    Loans held for sale $ 1,276   $ 1,593   $ 497     $ (317 ) -20 % $ 779   157 % $ 1,155   $ 601     $ 554   92 %
    Investment securities $ 285,947   $ 283,637   $ 284,041     $ 2,310   1 % $ 1,906   1 % $ 287,315   $ 285,538     $ 1,777   1 %
    Interest-bearing cash $ 81,755   $ 62,494   $ 172,119     $ 19,261   31 % $ (90,364 ) -53 % $ 71,080   $ 206,259     $ (135,179 ) -66 %
    Total interest-earning assets $ 1,066,882   $ 1,047,128   $ 1,121,957     $ 19,754   2 % $ (55,075 ) -5 % $ 1,054,968   $ 1,146,017     $ (91,049 ) -8 %
    Non-interest bearing deposits $ 383,332   $ 387,740   $ 441,782     $ (4,408 ) -1 % $ (58,450 ) -13 % $ 388,672   $ 457,750     $ (69,078 ) -15 %
    Interest-bearing deposits $ 615,388   $ 596,121   $ 619,183     $ 19,267   3 % $ (3,795 ) -1 % $ 600,694   $ 628,978     $ (28,284 ) -4 %
    Total Deposits $ 998,720   $ 983,861   $ 1,060,965     $ 14,859   2 % $ (62,245 ) -6 % $ 989,366   $ 1,086,728     $ (97,362 ) -9 %
    Borrowings $ 13,403   $ 13,404   $ 13,403     $ (1 ) 0 % $   0 % $ 13,403   $ 13,401     $ 2   0 %
    Total interest-bearing liabilities $ 628,791   $ 609,525   $ 632,586     $ 19,266   3 % $ (3,795 ) -1 % $ 614,097   $ 642,379     $ (28,282 ) -4 %
                                               
    Yield / Cost $(1)                                          
    Portfolio loans $ 10,509   $ 10,092   $ 9,570     $ 417   4 % $ 939   10 % $ 30,834   $ 27,208     $ 3,626   13 %
    Loans held for sale $ 22   $ 28   $ 8     $ (6 ) -21 % $ 14   175 % $ 55   $ 28     $ 27   96 %
    Investment securities $ 2,535   $ 2,442   $ 2,405     $ 93   4 % $ 130   5 % $ 7,485   $ 6,954     $ 531   8 %
    Interest-bearing cash $ 1,108   $ 847   $ 2,322     $ 261   31 % $ (1,214 ) -52 % $ 2,890   $ 7,669     $ (4,779 ) -62 %
    Total interest-earning assets $ 14,174   $ 13,410   $ 14,306     $ 764   6 % $ (132 ) -1 % $ 41,265   $ 41,859     $ (594 ) -1 %
    Interest-bearing deposits $ 2,684   $ 2,358   $ 1,716     $ 326   14 % $ 968   56 % $ 7,033   $ 3,437     $ 3,596   105 %
    Borrowings $ 243   $ 242   $ 246     $ 1   0 % $ (3 ) -1 % $ 727   $ 682     $ 45   7 %
    Total interest-bearing liabilities $ 2,927   $ 2,600   $ 1,962     $ 327   13 % $ 965   49 % $ 7,760   $ 4,119     $ 3,641   88 %
    Net interest income $ 11,247   $ 10,810   $ 12,344     $ 437   4 %   (1,097 ) -9 % $ 33,505   $ 37,740     $ (4,235 ) -11 %
                                               
    Yield / Cost %(1)                                          
    Yield on portfolio loans   5.99 %   5.80 %   5.71 %     0.19 %     0.28 %     5.92 %   5.57 %     0.35 %  
    Yield on investment securities   3.53 %   3.46 %   3.36 %     0.07 %     0.17 %     3.48 %   3.26 %     0.22 %  
    Yield on interest-bearing cash   5.39 %   5.46 %   5.35 %     -0.07 %     0.04 %     5.43 %   4.97 %     0.46 %  
    Cost of interest-bearing deposits   1.74 %   1.59 %   1.10 %     0.15 %     0.64 %     1.56 %   0.73 %     0.83 %  
    Cost of borrowings   7.21 %   7.26 %   7.28 %     -0.05 %     -0.07 %     7.25 %   6.80 %     0.45 %  
    Cost of deposits and borrowings   1.15 %   1.05 %   0.72 %     0.10 %     0.43 %     1.03 %   0.50 %     0.53 %  
                                               
    Yield on interest-earning assets   5.29 %   5.15 %   5.06 %     0.14 %     0.23 %     5.22 %   4.88 %     0.34 %  
    Cost of interest-bearing liabilities   1.85 %   1.72 %   1.23 %     0.13 %     0.62 %     1.69 %   0.86 %     0.83 %  
    Net interest spread   3.44 %   3.43 %   3.83 %     0.01 %     -0.39 %     3.53 %   4.02 %     -0.49 %  
    Net interest margin   4.19 %   4.15 %   4.37 %     0.04 %     -0.18 %     4.24 %   4.40 %     -0.16 %  
                                               
    (1) Tax-exempt income has been adjusted to a tax equivalent basis at a rate of 21%.  
    ALLOWANCE FOR CREDIT LOSSES (ACL) (unaudited) Quarter Ended   Change From   Nine Months Ended   Change
         
    ($ in 000s)                                          
        Sep 30,   Jun 30,   Sep 30,     Jun 30, 2024   Sep 30, 2023   Sep 30,   Sep 30,        
        2024    2024    2023      $ %   $ %   2024    2023      $ %
    Allowance for Credit Losses                                          
    Beginning of period balance $ 8,859   $ 8,580   $ 8,223     $ 279   3 % $ 636   8 % $ 8,530   $ 8,236     $ 294   4 %
    Impact of CECL Adoption (ASC 326)                   -100 %     -100 %       (157 )     157   -100 %
    Charge-offs   (5 )   (57 )   (126 )     52   -91 %   121   -96 %   (97 )   (259 )     162   -63 %
    Recoveries   16     1     1       15   1500 %   15   1500 %   19     55       (36 ) -65 %
    Net (charge-off) recovery   11     (56 )   (125 )     67   -120 %   136   -109 %   (78 )   (204 )     126   -62 %
    Provision (benefit)   27     335     249       (308 ) -92 %   (222 ) -89 %   445     472       (27 ) -6 %
    End of period balance $ 8,897   $ 8,859   $ 8,347     $ 38   0 % $ 550   7 % $ 8,897   $ 8,347     $ 550   7 %
                                               
    Net charge-off (recovery) to                                          
    average portfolio loans   -0.01 %   0.03 %   0.07 %     -0.04 %     -0.08 %     0.01 %   0.04 %     -0.03 %  
    ACL to portfolio loans   1.27 %   1.26 %   1.24 %     0.01 %     0.03 %     1.27 %   1.24 %     0.03 %  
                                               
    Allowance for unfunded loans                                          
    Beginning of period balance $ 617   $ 648   $ 754     $ (31 ) -5 % $ (137 ) -18 % $ 698   $ 203     $ 495   244 %
    Impact of CECL Adoption (ASC 326)                   -100 %     -100 %       609       (609 ) -100 %
    Provision (benefit)   (93 )   (31 )   (5 )     (62 ) 200 %   (88 ) 1760 %   (174 )   (63 )     (111 ) 176 %
    End of period balance $ 524   $ 617   $ 749     $ (93 ) -15 % $ (225 ) -30 % $ 524   $ 749     $ (225 ) -30 %

    ABOUT PACIFIC FINANCIAL CORPORATION

    Pacific Financial Corporation of Aberdeen, Washington, is the bank holding company for Bank of the Pacific, a state chartered and federally insured commercial bank. Bank of the Pacific offers banking products and services to small-to-medium sized businesses and professionals in western Washington and Oregon. At September 30, 2024, the Company had total assets of $1.16 billion and operated fifteen branches in the communities of Grays Harbor, Pacific, Thurston, Whatcom, Skagit, Clark and Wahkiakum counties in the State of Washington, and three branches in the communities of Clatsop and Clackamas counties in Oregon. The Company also operated loan production offices in the communities of Burlington, Washington and Salem, Oregon. Visit the Company’s website at www.bankofthepacific.com. Member FDIC.

    Cautions Concerning Forward-Looking Statements
    This press release contains statements that constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 and other laws, including all statements in this release that are not historical facts or that relate to future plans or events or projected results of Pacific Financial Corporation and its wholly-owned subsidiary, Bank of the Pacific. Such statements are based on information available at the time of communication and are based on current beliefs and expectations of the Company’s management and are subject to risks and uncertainties, many of which are beyond our control, which could cause actual events or results to differ materially from those projected, anticipated or implied, and could negatively impact the Company’s operating and stock price performance. These risks and uncertainties include various risks associated with growing the Bank and expanding the services it provides, development of new business lines and markets, competition in the marketplace, general economic conditions, changes in interest rates, extensive and evolving regulation of the banking industry, and many other risks. Any forward-looking statements in this communication are based on information at the time the statement is made. We undertake no obligation to update or revise any forward-looking statement. Readers of this release are cautioned not to put undue reliance on forward-looking statements.

    CONTACTS:
    DENISE PORTMANN, PRESIDENT & CEO
    CARLA TUCKER, EVP & CFO
    360.533.8873

    The MIL Network

  • MIL-OSI Economics: Regional Economic Outlook for Sub-Saharan Africa, October 2024 | Reforms amid Great Expectations

    Source: International Monetary Fund

    Leveling the Playing Field: Gender Equality and Economic Development in Sub-Saharan Africa

    Sub-Saharan Africa has made significant strides in reducing gender inequality over the past two decades, yet challenges remain. Despite improvements in labor force participation and political representation, gaps persist in education, health, and access to financial resources. Legal barriers and harmful practices like child marriage and gender-based violence limit women’s opportunities, restricting their economic empowerment. Addressing these issues is crucial for boosting productivity and fostering inclusive growth in the region. Policy recommendations emphasize legal reforms, improving educational access, and fostering financial inclusion. Empowering women can drive economic diversification and reduce poverty, creating a more resilient and dynamic workforce that supports long-term economic stability in Sub-Saharan Africa.

    MIL OSI Economics

  • MIL-OSI Global: In her first budget, the chancellor faces a minefield of risks

    Source: The Conversation – UK – By Steve Schifferes, Honorary Research Fellow, City Political Economy Research Centre, City St George’s, University of London

    Ahead of the new government’s first budget on October 30, chancellor Rachel Reeves has revealed her determination to change borrowing rules that will allow her to boost investment spending.

    The overriding goal of the government is to promote economic growth, after more than a decade of stagnation in living standards. In the long run, boosting growth will produce more money for the government to improve public services. But while Reeves has given a strong steer as to how she will fund the public investment needed to grow the economy in the long term, she will also have to find money for urgent improvements to struggling public services like the NHS, a key election pledge.

    There are three ways that the government can raise the funds it needs to boost investment and improve key public services. It can raise taxes, increase borrowing, or make cuts to spending. Given the scale of the challenge faced by the chancellor, all three are likely.

    The government had made a rod for its own back with two of its key election pledges: not to raise the main taxes (income tax, national insurance, and VAT) on “working people”, while sticking to a set of fiscal rules that set strict limits on government borrowing. These pledges were designed to appeal to voters hit by the cost of living, while demonstrating to financial markets that Labour would be cautious with public money. Government borrowing reached nearly £80 billion in last six months, the third highest sum on record.

    With the so-called financial “black hole” now estimated at £40 billion, not the £22 billion announced in July, the Treasury will need major tax rises that go well beyond the modest proposals from the election campaign. Although Labour may make some limited increases in other taxes on wealth, such as capital gains tax, this alone will not close the revenue gap.

    The most likely candidate to bridge the gap is an increase in employer national insurance (NI) contributions, for example by making employers pay NI on their pension contributions. This could raise more than £15 billion per year. Reeves and prime minister Keir Starmer argue that this would not breach their manifesto commitments – but it will be politically controversial. Observers, including the Office for Budget Responsibility (OBR) and the Institute for Fiscal Studies, argue that such taxes are eventually felt by workers through either lower wages or staff cuts.

    Further spending cuts are also on the cards. In July the chancellor announced a series of cuts, cancelling planned spending on the reform of social care, withdrawing the winter fuel payment to most pensioners, and ordering departments to make efficiency savings to help fund pay awards.




    Read more:
    The boomer generation hit the economic jackpot. Young people will inherit their massive debts


    Other than for the NHS, Reeves is expected to squeeze spending in “unprotected” departments (prisons and local government, for example). On welfare spending, the Treasury has the rising bill for disability and incapacity benefits in its sights.

    But even these decisions leave the government with a major funding dilemma. How will it pay for capital spending, everything from new hospitals and schools to roads, bridges and other infrastructure? All are key to boosting long-term growth.

    While one of Reeves’ fiscal rules aims to ensure that day-to-day spending must be balanced by tax receipts (leading to the need for tax increases), borrowing for long-term public investment is not part of that calculation. But any increased borrowing for investment appears to be sharply curtailed by another fiscal rule, which says that total government debt (including that incurred by borrowing to invest) as a percentage of GDP must be falling within five years.

    New government, new rules?

    Despite Labour’s embrace of both these tight fiscal rules during the election campaign, the chancellor has now confirmed that she wants to modify this debt rule to allow herself to borrow more.

    She plans to change how overall government debt is measured, effectively redefining it by including more government assets to set against the amount being borrowed. The likely new measure, known as “public sector net financial assets”, would include assets like funded local government pension schemes and student loans income, as well as government-owned companies like Great British Energy.

    This could give the chancellor up to £50 billion in extra borrowing power for public investment. Her argument is that borrowing to build infrastructure gives the government a tangible asset that will pay for itself in the long term by boosting growth and tax receipts.

    None of the choices facing Rachel Reeves will be easy.

    The government’s spending watchdog, the OBR, agrees that in the long term, well-planned public sector investment could benefit the economy, although it says it would take a long time to materialise. Many observers, including the former head of the civil service, Gus O’Donnell, and Mark Carney, the former governor of the Bank of England, strongly support increased public investment as a way to boost lagging productivity.

    But there are risks in this strategy if it unsettles financial markets. Total government debt on the current measure now stands at £2.6 trillion, nearly the same size as the whole UK economy. It is costing the Treasury around £74 billion a year in interest payments, almost the size of the education budget.

    If the bond markets (which buy government debt) take fright, they could force up the cost of borrowing further, which could raise interest rates on mortgages and other consumer borrowing. And news of the chancellor’s plan to change to the fiscal rule did cause bond yields to rise slightly. This suggests if government debt rises too rapidly, even within the new rules, this could have a destabilising effect. So the chancellor will have to judge carefully how much of the extra headroom she should use.

    Like all Labour chancellors, Reeves faces the task of keeping both voters and the financial markets happy at the same time. Her strategy could end up alienating rather than pleasing both sides.

    Given the scale of Labour’s ambitions, balanced against her limited resources, she may have little choice but to take such a bold approach. But her path between alienating business and disillusioning the public is a narrow one. And the longer it takes for her strategy to bear fruit in terms of a better standard of living and improved public services, the more difficult things will become politically.

    Steve Schifferes does not work for, consult, own shares in or receive funding from any company or organisation that would benefit from this article, and has disclosed no relevant affiliations beyond their academic appointment.

    ref. In her first budget, the chancellor faces a minefield of risks – https://theconversation.com/in-her-first-budget-the-chancellor-faces-a-minefield-of-risks-241939

    MIL OSI – Global Reports

  • MIL-OSI United Kingdom: Budget will invest in foundations of future growth

    Source: United Kingdom – Executive Government & Departments

    Chancellor Rachel Reeves is in Washington D.C. for her first IMF Annual Meetings, where she will say that the Budget is about investing in future growth.

    Chancellor Rachel Reeves at the IMF Annual Meetings in Washington D.C.

    • Reeves will set out how public investment will drive innovation in science and technology, the transition to clean energy, and upgraded infrastructure.
    • Chancellor to represent British interests in G7, G20 and IMF discussions on the global economy, international financial system and ongoing support for Ukraine.

    Rachel Reeves will tell her global counterparts that the Government’s first Budget will “invest in the foundations of future growth,” as she attends her first annual meetings of the International Monetary Fund (IMF) in Washington D.C as Chancellor.

    The Chancellor will pledge that the Budget next week will be “built on the rock of economic stability” to fix the foundations and deliver change. She will set out how public investment will help fuel mission-led government, from boosting investment in science and technology, transitioning to clean energy and upgrading infrastructure.

    The Chancellor will attend G7, G20 and IMF meetings to represent Britain’s interests on issues including the global economy, the international financial system and ongoing support for Ukraine. This follows the UK’s announcement of its £2.26bn contribution to the G7’s Extraordinary Revenue Acceleration (ERA) Loans for Ukraine scheme, backed by the profits from sanctioned Russian sovereign assets. She will also hold a series of bilateral meetings with her international counterparts.

    Chancellor of the Exchequer Rachel Reeves said:

    A Britain built on the rock of economic stability is a Britain that is a strong and credible international partner. I’ll be in Washington to tell the world that our upcoming Budget will be a reset for our economy as we invest in the foundations of future growth.

    It’s from this solid base that we will be able to best represent British interests and show leadership on the major issues like the conflicts in the Middle East and Ukraine.

    At the Annual Meetings, Chancellor Reeves will support proposals to expand financing for development, needed for countries to meet the United Nations’ Sustainable Development Goals and tackle unsustainable debt. She will also press for all G20 countries to meet G20 best practice on debt transparency and move swiftly to implement support for countries facing pressing liquidity problems. The Chancellor will welcome the agreement of a new G20 roadmap to scale up financing to developing countries through Multilateral Development Banks.

    It is the 80th anniversary year of the founding of the IMF and the World Bank, established at a conference in Bretton Woods, New Hampshire in 1944 to promote international cooperation on economic and monetary policies. At this years’ gathering the Chancellor will also call for change to the global financial system to deliver a fairer deal for vulnerable countries.

    The IMF released its latest survey of the global economy on Tuesday, in which the UK’s growth forecast was upgraded to 1.1% in 2024. Whilst this is welcome, the Chancellor will make clear to her counterparts that there will be more long-term decisions required to reinforce stability and deliver on the promise of change at her first Budget on 30 October.

    The Chancellor’s trip to Washington D.C. follows the International Investment Summit earlier this month, at which it was announced that nearly 38,000 jobs are set to be created across the UK thanks to a total of £63 billion in investment commitments from businesses around the world. The vote of confidence in the UK is a clear sign Britain is open for business and ready to drive sustainable growth across the country.

    Updates to this page

    Published 25 October 2024

    MIL OSI United Kingdom

  • MIL-OSI Global: Florida’s new condo laws recognize the total price of living on the beach

    Source: The Conversation – USA – By Bill Hughes, Research Director, Kelley A. Bergstrom Real Estate Center, University of Florida

    Repairing high-rise condos like this one in Miami Beach can cost millions. Jeffrey Greenberg/Universal Images Group via Getty Images

    Nearly a million Florida condo owners face an important deadline at the end of the year. That’s when a law passed in 2022 requires most Florida condo associations to submit inspection reports for their buildings and to collect money from owners to pay for any needed repairs.

    Condo owners are reporting that new condominium rules are driving up fees and inducing outrageous assessments.

    The media has picked up on the outrage. News articles about condo owners “facing financial turmoil as a result of new building safety regulations” and how “bills are crippling homeowners” lead readers to believe that Florida lawmakers have imposed an egregious tax on the elderly and those on fixed incomes.

    This is misleading at best.

    As the research director at the University of Florida’s Bergstrom Real Estate Center, I suggest it is important to set emotions aside and see what these laws attempt to accomplish.

    Safety inspections

    The 2022 state condo law, known as SB-4D, and its 2023 follow-up, SB-154, establish three primary requirements: licensed inspections, reporting and disclosures, and reserve funds.

    Importantly, these laws are not tax legislation that directly increases housing costs on condo owners.

    But by requiring more inspections, transparency and funding to cover repairs, many owners will face costs much greater than the amounts paid in the past. These new expenses simply reflect more of the true cost of living in a condo near the ocean.

    Under the laws, all buildings occupied before 1992 must complete a milestone inspection by Dec. 31, 2024. This is an examination of the building’s structural integrity by an architect or engineer.

    The requirement also applies to buildings at least 25 years old that are within 3 miles of the coast.

    If the milestone inspection finds a potential structural problem, testing is required to determine if structural repairs are needed. If they are, owners must fund these repairs without an option to waive by vote.

    If no damage is identified, then the association must report and post the results, and that concludes the requirement.

    Prior to SB-4D, milestone inspections were not required outside of Miami-Dade and Broward counties. Now, they are required statewide and must be reported to local authorities, all unit owners and the public for buyer information.

    Adequate savings for repairs

    The new regulations also require building associations to budget and collect sufficient reserves to cover the cost of maintaining and replacing parts of their buildings subject to regular wear and tear, such as roofs, elevators and balconies.

    History suggests that most homeowners associations struggle to adequately save for repairs and maintenance to keep their properties safe and in top condition.

    “Florida has … more associations that are considered weak [in terms of funded reserves] than any other state,” Will Simons, the head of Florida and Southeast Operations at Association Reserves, which conducts reserve studies for condo and community associations, told a colleague as part of a research article.

    The Champlain Towers South condominium that collapsed in the Miami suburb of Surfside in June 2021, killing 98 people, is just one example. Simons’ company completed a reserve study of the condo just months prior to the collapse and found its association was significantly underfunded.

    The association held approximately US$706,000 in reserves as of January 2021. Association Reserves recommended the association stockpile nearly $10.3 million to account for necessary repairs. That means the Surfside condo’s homeowners association had just 6.9% of the money it needed on hand.

    True costs of living by the ocean

    More than 16,000 condominium associations representing over 900,000 of Florida’s 1.5 million condominium units are currently affected by the new laws because these units are already more than 30 years old.

    Properties that have been sufficiently maintained and hold adequate reserves for future structural repairs will face nothing but an increased disclosure of inspection reports and continued reserve funding.

    Many residents, especially retired seniors, are struggling to adapt to the funding requirement. In response, Gov. Ron DeSantis is indicating some form of relief for owners facing financial hardship over these regulations.

    Frustration is understandable, as current residents are asked to simultaneously fund 30 years of past deterioration and also set aside savings for the next 30 years. However, policymakers are simply setting guidelines that condo owners should have established for themselves. Properties that face significant financial shocks from SB-4D are, by definition, undermaintained or underfunded.

    It is important to separate the intent of these laws from possible overreaction or fraud from condo associations, which is an existing concern. House Bill 1021, signed into law in June 2024, focuses on association governance to manage oversight of this type.

    Oceanside concrete structures, roofs, windows and elevators have limited lifespans. These items need to be repaired or replaced to protect residents’ safety. The new regulations are making the true condo costs transparent to unit owners and buyers.

    Bill Hughes is affiliated with National Council of Real Estate Investment Fiduciaries (NCREIF), Pension Real Estate Association (PREA), Counselors of Real Estate (CRE), and CFA Institute.

    ref. Florida’s new condo laws recognize the total price of living on the beach – https://theconversation.com/floridas-new-condo-laws-recognize-the-total-price-of-living-on-the-beach-239163

    MIL OSI – Global Reports

  • MIL-OSI Global: Student-athletes find more power in the changing legal landscape of college sports

    Source: The Conversation – USA – By Joshua Lens, Associate Professor of Instruction of Sport & Recreation Management, University of Iowa

    Money disputes abound between players and universities. Aksonov/E+ via Getty Images

    Ever since the NCAA permitted college athletes to get paid by companies that use their names, images and likenesses, athletes have tested the limits of their increasing power.

    One of the latest examples is Matthew Sluka, the starting quarterback for UNLV’s first three games of the 2024 season. After helping lead UNLV to three wins and potential contention for a prestigious College Football Playoff bid, Sluka announced on Sept. 24, 2024, he would sit out the rest of the season. His decision is the result of a dispute over compensation for use of his name, image and likeness, commonly referred to as NIL.

    While the decision sent shock waves through college athletics, it also shines light on the changing balance of power that favors athletes over their coaches and universities.

    As a former lawyer and college athletics compliance administrator – and also as a current university faculty member who has authored several law review articles on legal issues related to NIL – I suggest that Sluka’s situation exemplifies how collegiate athletes can use recent NCAA rules changes to improve their financial situation in the NIL era of college athletics.

    Promises and denials

    Sluka’s NIL agent claims a UNLV assistant coach failed to fulfill a promise he made Sluka during the recruiting process. That promise, according to Sluka’s agent, was that Sluka would receive US$100,000 of NIL compensation from an NIL collective should he attend UNLV. NIL collectives are generally formed to pool individuals’ and businesses’ funds to provide NIL opportunities and compensation for athletes.

    Any such promise by a UNLV assistant coach would violate current NCAA policy. That’s because NCAA policy prohibits coaches from making NIL compensation offers contingent on whether a student enrolls. NIL collectives, on the other hand, may negotiate with athletes during the recruiting process as the result of a U.S. District Court ruling. That ruling prohibits the NCAA from penalizing collectives that negotiate NIL compensation with athletes during the recruiting process.

    In a forthcoming BYU Law Review article, however, I suggest that a university whose star athlete transfers because another school’s collective recruited the athlete possesses a viable legal claim against the collective. That claim would be for inducing the athlete to transfer and violate their athletics scholarship agreement.

    UNLV denies Sluka’s version of events. The university asserts that Sluka’s representative demanded more compensation from UNLV and its NIL collective in order for Sluka to continue playing. UNLV says it then refused, as such a “pay-for-play” agreement violates NCAA policy, which states that athletes may not accept NIL compensation based on “play” or on-field results.

    Perceptions and ‘pay-to-play’

    In Sluka’s case, further complicating things is the issue of whether Sluka’s NIL representative is properly registered with the state as an agent, as required by Nevada law. The state may be interested in pursuing enforcement, given the Nevada secretary of state’s relationship with UNLV’s NIL collective. More specifically, Nevada Secretary of State Francisco V. Aguilar co-founded Blueprint Sports, which operates the collective.

    NCAA rules allow a football player to retain a year of eligibility if they play in four or fewer games in a season. Sluka exercised this ability by leaving his team. There is little that UNLV can do about it beyond taking away Sluka’s athletic scholarship for leaving the team.

    Universities, however, must be increasingly sensitive to providing the necessary procedures, such as hearings and appeal opportunities, before disciplining athletes in the NIL era. As I explain in a forthcoming SMU Law Review article, a recent U.S. District Court decision involving then-University of Illinois men’s basketball player Terrence Shannon Jr. precluded the university from enforcing its suspension of Shannon without providing appropriate processes, lest he lose out on NIL compensation, which the court classified as a constitutionally protected interest.

    Issues of fairness linger in the era of NIL deals for college athletes.
    David Madison via Getty Images

    A slew of lawsuits

    Before it granted college athletes the ability to get paid through NIL deals, the NCAA faced long-standing criticism that its policies were unfair to athletes. The argument was that athletes benefited relatively little compared with the NCAA, conferences and universities, even though it was the athletes who provided the product. Along those lines, former college football stars Terrelle Pryor, Reggie Bush and Denard Robinson all recently filed separate lawsuits against the NCAA over denied NIL compensation opportunities.

    Some college football luminaries are now questioning whether the pendulum of power has swung too far in favor of athletes in the NIL era. Examples include former Alabama head coach Nick Saban and former Ohio State quarterback and longtime ESPN commentator Kirk Herbstreit. Saban has openly wondered whether the current college football model is sustainable. Herbstreit has lamented “the players having all the control” without any accountability to their coaches and universities.

    High-profile college football players, such as quarterbacks Kelly Bryant and D’Eriq King and receiver Gary Bryant Jr., previously exploited NCAA rules permitting them to play in four games and then transfer to another university without sacrificing a season of competition eligibility.

    At least publicly, their decisions were due to on-field considerations such as playing time. Sluka’s decision to forgo playing the rest of the season and transfer was different. It is the first time – but likely not the last – a college athlete has publicly based their decision to leave their team mid-season on an NIL dispute.

    Sluka’s departure from UNLV makes clear that collegiate athletes’ power to move freely between universities in pursuit of their best financial situation has greatly increased. Meanwhile, their coaches’ and universities’ power to keep them on the team and participating has significantly decreased.

    While my full-time employment is as a faculty member at the University of Iowa, I provide consulting services on a contractual basis on the side for universities and athletics conferences. However, I have never performed consulting services for UNLV or any of the individuals mentioned in this piece and do not believe my consulting conflicts in any way with publishing this piece.

    ref. Student-athletes find more power in the changing legal landscape of college sports – https://theconversation.com/student-athletes-find-more-power-in-the-changing-legal-landscape-of-college-sports-240433

    MIL OSI – Global Reports

  • MIL-OSI Global: Foreign countries are helping autocracies repress exiled dissidents in return for economic gain

    Source: The Conversation – USA – By Rebecca Cordell, Assistant Professor of Political Science, University of Pittsburgh

    Governments, even democratic ones, are willing to aid autocracies in silencing exiled dissidents if the host nation thinks it’s in its economic interest.

    That is what we found when looking into cases of transnational repression – the act of governments reaching across their national border to repress diasporas and exiles – from 2014 to 2020.

    Since 2014, international watchdog Freedom House recorded 1,034 cases of governments reaching across borders to illegally deport, abduct, intimidate or assassinate their citizens.

    The most frequent offenders were autocratic countries such as China (213 cases), Turkey (111), Egypt (42), Tajikistan (38), Russia (32) and Uzbekistan (29).

    These governments have extended their reach into over 100 foreign countries to silence critics abroad. While autocracies sometimes act alone or collaborate with nongovernment actors, the most common form of transnational repression involves the governments of countries to which targeted people have fled. This includes democracies working closely with autocratic regimes to arrest, detain and deport people who face the risk of persecution and repression in the home country.

    Our analysis of Freedom House data found that cooperation in transnational repression is most common among trade partners and when foreign countries wish to maintain or improve their economic relationship with autocratic governments.

    Meanwhile, autocratic countries were most successful in securing cooperation among foreign countries with a weak rule of law.

    For example, Turkey has successfully secured cooperation from multiple countries with a weak rule of law, such as Lebanon, in its efforts to silence Turkish journalists and overseas citizens linked to the opposition Gülen movement. Meanwhile, China has used its economic leverage to compel foreign governments to cooperate, with Cambodia deporting 20 Uyghur asylum-seekers to China after signing 14 trade deals with the country. Similarly, Thailand forcibly returned numerous dissident journalists to China, its largest trade partner.

    Our analysis looked specifically at countries hosting refugees and asylum-seekers, since having diaspora populations is necessary for transnational repression to occur. For example, we included Poland, which hosts many Russian refugees, but excluded Belize, which has none.

    Using Freedom House’s database, we tracked 608 cases of direct government cooperation in transnational repression. We focused specifically on detentions, renditions without legal representation, and unlawful deportations, but we excluded cases such as assassinations where host countries weren’t directly involved.

    Then, using statistical models, we analyzed IMF data on annual trade flows and World Bank assessments of a country’s rule of law.

    We found strong quantitative evidence that international cooperation on transnational repression relies on a country’s economic ties to the origin country and the quality of the country’s rule of law.

    Why it matters

    Our findings suggest that many countries are willing to sacrifice the civil liberties of foreign dissidents for economic opportunities with authoritarian governments. Autocracies also appear to be strategically targeting vulnerable states with weak rule of law institutions, such as the police, courts or immigration authorities.

    Foreign countries that are less concerned about the consequences of breaking the rule of law are easier to co-opt and coerce, especially when they’re more financially dependent on the autocratic partner.

    This provides autocracies with both the opportunity to repress and the leverage to elicit cooperation in violation of the “non-refoulement” rule – which, under international law, protects migrants from being returned to a country where they are at risk of torture.

    What still isn’t known

    It is difficult to know the full scale of transnational repression. Data measuring transnational repression is able to capture only the “tip of the iceberg,” as Freedom House has put it.

    Many instances likely go unobserved due to the secret nature of human rights violations and governmental attempts to cover up, censor and deny abuses. We also know less about what causes autocracies to carry out transnational repression through collaborations with nonstate actors – including political parties, educational and religious groups, businesses and criminal gangs – rather than governments.

    More research is needed to establish what prompts autocracies to engage in different types of tactics, from nonphysical instances of transnational repression – harassment, intimidation and threats – to physical forms, such as detention, abduction and physical violence.

    The decision to engage in one tactic over another may be driven by different strategic benefits and costs.

    The Research Brief is a short take on interesting academic work.

    The authors do not work for, consult, own shares in or receive funding from any company or organization that would benefit from this article, and have disclosed no relevant affiliations beyond their academic appointment.

    ref. Foreign countries are helping autocracies repress exiled dissidents in return for economic gain – https://theconversation.com/foreign-countries-are-helping-autocracies-repress-exiled-dissidents-in-return-for-economic-gain-240069

    MIL OSI – Global Reports

  • MIL-OSI Australia: Report calls for regulatory reform to tackle health impacts of gambling

    Source: Federation University

    A new Lancet Commission report highlights the urgent need for regulatory reform to address the health impacts resulting from the rapid expansion of commercial gambling. The report reveals that gambling harms are far more substantial than previously understood, exacerbated by the increased visibility of the gambling industry through digital and online platforms. 

    The harms associated with gambling extend beyond financial losses and include physical and mental health problems, relationship breakdown, heightened risk of suicide and domestic violence, increased crime, and loss of employment. According to the report, an estimated 80 million adults worldwide experience gambling disorder or problematic gambling. 

    Dr. Angela Rintoul, Principal Research Fellow at Federation University and a member of the Lancet Commission, expressed concern over the Australian government’s failure to respond to urgent cross-party recommendations from the Murphy Inquiry.  

    The Murphy Inquiry ‘you win some, you lose more’ was released in June 2023, detailing 31 recommendations, with the aim of reducing and ending gambling advertising and addressing the serious risk of suicide linked to gambling and a comprehensive national strategy on online gambling harm. 

    Dr. Rintoul stated, “We know that gambling causes enormous harm not only to those who gamble, but their family members, friends, and colleagues. High levels of gambling contribute significantly to suicide, domestic violence and other health and wellbeing issues. Constant promotion of gambling is exposing young people to gambling advertising as never before, with devastating consequences for many.”   

    The Lancet Commission report emphasises that the harms of gambling are not evenly distributed, with adolescents, children, and those from disadvantaged socio-economic groups being more at risk.  

    The Lancet Commission report calls for effective and well-resourced regulatory controls and international leadership to urgently reduce the impact of commercial gambling on public health.  

    For more information about the Lancet Commission report and its recommendations, please visit www.thelancet.com/commissions/gambling 

    About the Lancet Commission: 

    The Lancet Commission is an independent international body of experts that provides evidence-based recommendations to address pressing global health challenges. The Commission brings together leading researchers, policymakers, and practitioners to develop strategies for improving public health and achieving sustainable development. 

    Quotes attributable to Federation University Australia Vice-Chancellor and President Professor Duncan Bentley 

    “At Federation University, our mission is to transform lives and enhance communities and the recommendations in the Lancet Commission Report clearly outline urgent recommendations that will help keep our communities safe.” 

    “Gambling advertising has catastrophic impacts on lives far beyond financial stress and it is our responsibility to protect young people who are especially vulnerable to the risks.” 

    Quotes attributable to Federation University Australia Pro Vice Chancellor Research and Executive Deal, Institute of Health and Wellbeing, Professor Remco Polman 

    “The Lancet Commission Report is timely considering the Murphy inquiry in Australia and the government must heed the report’s recommendations. I am proud that Federation University is globally at the forefront of this issue.” 

    “Gambling does significant harm to the individual as well as their environment. It will be key to develop effective strategies to reduce the harms of excessive gambling and protect our children from the harmful effects and the predatory strategies of gambling companies.” 

    MIL OSI News

  • MIL-OSI China: Chinese vice premier meets Tsinghua University advisors

    Source: People’s Republic of China – State Council News

    BEIJING, Oct. 25 — Chinese Vice Premier Ding Xuexiang met with representatives of the advisory board of the Tsinghua University School of Economics and Management (Tsinghua SEM) in Beijing on Friday.

    Noting that China’s economic operation is stable overall and making progress, Ding, also a member of the Standing Committee of the Political Bureau of the Communist Party of China Central Committee, said that the country is speeding up the implementation of a package of incremental policies, as it strives to achieve its annual economic and social development targets.

    He highlighted the ever-growing development momentum driven by reform and innovation, which serves to promote China’s steady and long-term economic development.

    China always firmly supports economic globalization and will open its door only wider to the world, according to Ding, who also said that the country is willing to share the fruits of development with the world.

    Ding expressed hope that the advisors would continue to actively provide suggestions and support the development of China’s economy and education system.

    Citing the country’s abundant development opportunities, Apple CEO Tim Cook, chair of the advisory board, said that Apple is willing to expand investment in China — to achieve mutual benefits and win-win outcomes.

    The advisory board of the Tsinghua SEM was founded in October 2000. Comprised of global business executives, business school deans and renowned scholars, the board aims to help make Tsinghua SEM a world-class school in terms of economics and management, by improving its teaching and research capabilities.

    MIL OSI China News

  • MIL-OSI China: Chinese, foreign experts call for cooperation on ocean sustainability

    Source: People’s Republic of China – State Council News

    QINGDAO, Oct. 25 — More than 600 dignitaries, experts and scholars from 41 countries and regions shared ideas on deepening cooperation on ocean-related areas — including the economy, technology and ecology — at the 2024 Global Ocean Development Forum, which concluded on Friday in Qingdao City, east China’s Shandong Province.

    Peter Thomson, the United Nations secretary-general’s special envoy for the ocean, emphasized the urgency of ocean protection, noting that it is only through global cooperation that sustainable development goals can be achieved.

    Sun Shuxian, China’s vice minister of natural resources and head of the State Oceanic Administration, highlighted the steady growth of China’s marine industry and the continuous improvements in the country’s marine ecological environment.

    The two-day event saw the release of the 2024 China Ocean Development Index Report, which revealed that China’s marine development index grew at an average annual rate of 2.9 percent from 2016 to 2023.

    Zhang Zhanhai, chairman of the China Ocean Mineral Resources R&D Association, noted that with expertise in deep-sea equipment and technology, China is well-positioned to support the sustainable development and utilization of global seabed resources.

    Iceland’s Ambassador to China Thorir Ibsen highlighted China’s vital role in advancing the global marine economy. He also noted the long-standing cooperative relationship between Iceland and China in marine-related fields, as well as the growing marine trade between the two countries.

    The forum was hosted by Shandong’s provincial government and the Ministry of Natural Resources.

    MIL OSI China News

  • MIL-OSI China: China supports private firms in sci-tech research pursuing quality growth

    Source: People’s Republic of China – State Council News

    CHENGDU, Oct. 25 — China will support capable private enterprises in leading national initiatives to make breakthroughs in major technologies and provide private enterprises with greater access to major national scientific research infrastructure, according to the country’s top economic planner.

    The country will also support basic research in diversified fields and guide eligible private enterprises to conduct high-risk, high-reward basic research, an official with the National Development and Reform Commission (NDRC) said Thursday at a meeting on promoting high-quality development of the private sector held in Chengdu, Sichuan Province.

    This is the latest effort by Chinese authorities to boost the private sector, which is vital to stabilizing economic growth, promoting innovation and boosting employment.

    Zheng Bei, deputy head of the NDRC, called for more concrete efforts to promote the deep integration of technological and industrial innovation to further promote high-quality development in the private sector.

    Zheng said China supports private companies’ active participation in implementing major national strategies and building security capacity in key areas, as well as in large-scale equipment upgrades and trade-ins of consumer goods.

    China will also improve policy support and market services to promote the application and upgrading of domestically developed products, Zheng said.

    Meanwhile, the country will further improve support policies for long-term capital investment in early-stage, small-scale and high-tech projects to unleash more innovation potential on the part of private enterprises, the official added.

    The private economy plays an important role in China’s economic development as it contributes over 50 percent of the country’s tax revenue, more than 60 percent of gross domestic product, in excess of 70 percent of technological innovation, and creates over 80 percent of urban jobs.

    Earlier this month, China’s Ministry of Justice and the NDRC published a draft of private sector promotion law to solicit public opinion.

    The draft, with 77 articles in nine chapters, features equal treatment and protection of private sector businesses. If passed, it will be China’s first foundational law specifically focused on the development of the private economy.

    MIL OSI China News

  • MIL-OSI Security: Defense News: FY26 Advanced Education Voucher Program Offers Chiefs Mess Path to Master’s Degree

    Source: United States Navy

    The AEV program provides financial assistance to selected senior enlisted personnel to complete post-secondary, Navy-relevant degrees through off-duty education.

    “The AEV program supports the continued educational development of senior enlisted leaders as part of the Navy’s seasoned team of naval warriors,” said Albert Sharlow, NETC AEV program manager. “The program provides the Navy’s chief, senior chief and master chief petty officers a platform to pursue higher education that makes them more effective leaders with varied sets of knowledge, skills and experiences to operate, sustain and maintain an edge in today’s rapidly changing security environment.”

    Who is eligible?

    Applicants must be top performing active-duty senior enlisted personnel (E-7 to E-9) who are transferring to or currently on shore duty with sufficient time ashore to complete a master’s degree program. Applicants on sea duty may apply provided they submit an education plan that shows the ability to complete the degree program as specified above.

    For FY24, applicants must have already earned a baccalaureate degree from an institution of higher learning accredited by an agency recognized by the Department of Education.

    How many quotas are available?

    The AEV program has seven quotas for master’s degrees available for FY26.

    What Navy-relevant degrees are included in the AEV program?

    Degrees considered for the master’s program include, but not limited to the below examples:
    • Emergency and Disaster Management
    • Human Resources
    • Project Management
    • Engineering and Technology
    • Systems Analysis
    • Information Technology
    • Homeland Defense and Security
    • Leadership and Management
    • Business Administration
    • Education and Training Management

    The NETC AEV program manager must validate degree programs other than those listed above as a Navy-relevant degree.

    How much funding does the Navy provide?
    For FY26, AEV Program participants will receive funds for tuition, books, and related fees for completion of their master’s degree with funding limits set at a maximum of $20,000 per fiscal year for up to 24 months from the date of signing a letter of acceptance, not to exceed $40,000 total program cost.

    When does the program begin?

    Applicants should be available to commence their studies in the 2025 fall term (after Oct. 1, 2025).

    Is there a service obligation?

    Participants shall agree to remain on active duty for a period equal to three times the number of months of education completed or three years, whichever is less.

    What is the submission deadline?

    Applications should be e-mailed to the program manager by May 5, 2025.

    Where can I get additional information on the program?

    • Visit the AEV information page on the Navy College Program’s website at https://www.navycollege.navy.mil/sailors/additional-funding-and-programs
    • Contact Albert Sharlow, NETC N525, (850) 452-7271 or DSN 459-7271
    albert.r.sharlow.civ@us.navy.mil

    NETC recruits, trains and delivers those who serve our nation, taking them from “street to fleet,” by transforming civilians into highly skilled, operational, and combat-ready warfighters.

    For more information about NETC, visit the command’s website at https://www.netc.navy.mil/ and follow the command’s social media: Facebook at https://www.facebook.com/NETCHQ, Instagram at https://www.instagram.com/netc_hq, X at https://twitter.com/NETC_HQ and LinkedIn at https://www.linkedin.com/company/netchq/.

    MIL Security OSI