NewzIntel.com

Category: Economy

  • MIL-OSI USA: Padilla Statement on 5th Circuit DACA Case Oral Arguments

    US Senate News:

    Source: United States Senator Alex Padilla (D-Calif.)
    WASHINGTON, D.C. — Today, U.S. Senator Alex Padilla (D-Calif.), Chair of the Senate Judiciary Subcommittee on Immigration, Citizenship, and Border Safety, issued the following statement as oral arguments were heard in the Fifth Circuit Court of Appeals in the Texas v. United States case on the Deferred Action for Childhood Arrivals (DACA) program:
    “Dreamers are integral members of our communities and culture, working essential jobs, contributing billions to our economy, and keeping our families safe. They do all this despite not knowing what their future holds. Today is yet another reminder of the fear and uncertainty caused by these obstructive lawsuits.
    “It’s past time for my Republican colleagues in Congress to join us in passing legislation to provide permanent protections for Dreamers. Failing to act now would deprive these young Americans of the American Dream and deprive us all of the benefits they bring to our country.”
    Senator Padilla is a leading voice in Congress for immigration reform. To commemorate the 12th anniversary of DACA, Padilla joined immigration advocates, DACA recipients, and other lawmakers to urge Congress to pass a pathway to citizenship for Dreamers and call on President Biden to protect Dreamers and long-term undocumented communities through executive action. He previously joined his Senate colleagues and directly impacted immigrant youth leaders for a press conference calling on Republicans in Congress to work with Democrats to pass permanent protections for DACA recipients after the 5th Circuit’s 2022 ruling.
    Padilla continues to fight relentlessly to expand pathways to citizenship for millions of long-term U.S. residents. His bill, the Renewing Immigration Provisions of the Immigration Act of 1929, would update the existing Registry statute so that an immigrant may be eligible for lawful permanent resident status if they meet certain conditions, providing a much-needed pathway to a green card for more than 8 million people, including Dreamers, TPS holders, children of long-term visa holders, essential workers, and highly skilled members of our workforce. Padilla also recently celebrated President Biden’s executive actions to protect certain noncitizen spouses and children of U.S. citizens from deportation and ease certain DACA recipients’ ability to be employed in the United States following his advocacy. He previously introduced the Citizenship for Essential Workers Act, which would create a pathway to citizenship for undocumented essential workers, including Dreamers, as his first bill in Congress.

    MIL OSI USA News –

  • MIL-OSI USA: Warren, Lawmakers Renew Legislative Push to Stop Private Equity Looting

    US Senate News:

    Source: United States Senator for Massachusetts – Elizabeth Warren
    October 10, 2024
    Warren, Lawmakers Renew Legislative Push to Stop Private Equity Looting
    The bill would close loopholes and end incentives for private equity pillaging.
    Updated text responds to private equity’s ruinous takeover of now-bankrupt Steward Health Care, preventing a similar collapse from ever happening again.
    Text of Bill (PDF) | Text of One-Pager (PDF) | Text of Section-by-Section (PDF) | Text of Economic Analysis (PDF)
    Washington, D.C. – Today, United States Senators Elizabeth Warren (D-Mass.),Tammy Baldwin (D-Wis.), Jeff Merkley (D-Ore.), Bernie Sanders (I-Vt.), Tina Smith (D-Minn.), and Ed Markey (D-Mass.), along with Representatives Mark Pocan (D-Wis.), Pramila Jayapal (D-Wash.), Raúl Grijalva (D-Ariz.), Rick Larsen (D-Wash.), Barbara Lee (D-Calif.), Delia Ramirez (D-Ill.), Jan Schakowsky (D-Ill.), Alexandria Ocasio-Cortez (D-N.Y.), and Delegate Eleanor Holmes Norton (D-D.C.), reintroduced the Stop Wall Street Looting Act, comprehensive legislation to fundamentally reform the private equity industry and level the playing field by forcing private investment firms to take responsibility for the outcomes of companies they take over, empowering workers and protecting investors. This reintroduction comes after private equity firm Cerberus looted Steward Health Care, leaving hospitals, patients, and workers hanging out to dry.
    “Private equity takeovers are legal looting that make a handful of Wall Street executives very rich while costing thousands of people their jobs, putting valuable companies out of ­business, and in the case of health care, is literally a matter of life and death,” said Senator Warren. “Our bill is designed to close loopholes and end incentives for private equity pillaging – and it will make sure what happened at Steward never happens again.”
    “When out-of-state investors buy Wisconsin companies only to turn a quick profit and shutter their doors, it’s Wisconsin workers and communities that suffer. I’m committed to ensuring that when Wisconsin businesses are purchased, Wisconsin families are protected and not left high and dry like we’ve seen in places like Janesville, Green Bay, and Waukesha,” said Senator Baldwin. “Our legislation will help put workers and our community first – protecting them from predatory practices that too often result in devastating job losses for Wisconsin’s working families.”
    “More and more Americans are feeling the presence of private equity in our economy, including in critical sectors like housing and health care,” said Senator Smith. “They arrive promising to revitalize communities and turn around struggling hospitals and companies, but far too often, they extract value for themselves at the expense of workers and ordinary people. This bill will help put an end to their most egregious practices and provide accountability.”
    “The greed of private equity robs too many Americans of stability, security, and prosperity. In Massachusetts, the Steward Health Care crisis is just one example of private equity sacrificing the long-term prosperity of workers, customers, and communities for their short-term profits. The Stop Wall Street Looting Act would finally prevent private equity firms from monetizing productive sectors of the economy and hollowing them out by laying off workers and closing businesses. We need to put in guardrails for private equity to ensure they cannot sacrifice people for profits,” said Senator Markey.
    “It’s long past time for billionaires and big corporations to stop gambling with hardworking Americans’ and their communities’ assets in service of corporate greed,” Representative Pocan said. “In Wisconsin, we’ve seen what happens when private equity firms like Sun Capital raid companies for their wealth and leave workers and communities to pick up the pieces. When Sun Capital took over Shopko – a Wisconsin-based retail chain that had stood strong for more than 50 years – they drained it dry, buried it in debt, pushed it into bankruptcy, and abandoned roughly 14,000 workers. This bill will finally hold these predatory firms accountable and protect workers from being plundered by corporate greed.”
    Since 2020, private equity fund assets have grown exponentially, reaching nearly $8 trillion in 2023 compared to $4.5 trillion in 2020. Private equity funds have purchased companies in nearly every sector of the economy — from nursing homes, to newspapers, to grocery stores — laying off hundreds of thousands of workers and ruining thousands of companies in the process.
    The private equity industry claims to invest in companies while also earning high returns for investors by using their management expertise to make the companies’ operations more efficient, and then selling the companies at a profit. In reality, private equity funds often load mountains of debt on the companies they buy, strip them of their assets, and extract exorbitant fees and dividends, guaranteeing payouts for themselves regardless of how the investment performs. When their debt-ridden investments go belly-up, private equity funds walk away with no responsibility for the mess they create, leaving workers in the lurch and forcing communities to clean up their mess.
    It’s time to level the playing field, protect workers, consumers, and investors, and force private equity firms to take responsibility for the companies they control. This bill does so by closing the loopholes that allow private equity to capture all the rewards of their investments while insulating themselves from risk and liability. The Stop Wall Street Looting Act will:
    Require Private Investment Funds to Have Skin in the Game: Private equity firms, the firm’s general partners, and their insiders will all be on the hook for the liabilities of companies under their control—including debt, legal judgments, and pension-related obligations—to better align the incentives of private equity firms and the companies they own. Liability would not extend to the fund’s limited partners, ensuring that only those that control portfolio firms are on the hook. In order to encourage more responsible use of debt, the bill ends the tax subsidy for excessive leverage and closes the carried interest loophole.
    End Looting of Portfolio Companies. To give portfolio companies a shot at success, the bill limits how much money private equity firms can extract from companies and closes the loophole that private equity firms have used to hide certain assets from bankruptcy courts. Every transaction since Steward Health Care was bought by private equity would be subject to review as part of Steward’s bankruptcy to determine whether it can be clawed back as a fraudulent transfer.
    Protect Workers, Customers and Communities. This proposal prevents private equity firms from walking away when a company fails and protects workers and communities by:
    Prioritizing workers’ pay in the bankruptcy process and amending the laws to increase the priority claims for unpaid earnings and other benefits from $10,000 to $20,000 per worker.
    Creating incentives for job retention so that workers can benefit from a company’s second chance.
    Ending the immunity of private equity firms from legal liability when their portfolio companies break the law, including the WARN Act. When workers at a plant are shortchanged or residents at a nursing home are hurt because private equity firms force portfolio companies to cut corners, the firm should be liable.
    Expanding protections for striking workers by clarifying unfair labor practices and the employer duty to bargain.
    Empower Investors by Increasing Transparency. Private equity managers will be required to disclose fees, returns, and other information about their funds and the corporate loans they make so that investors can monitor their investments. This would have required Cerberus to disclose the terms of its investments in Steward Health Care, which Cerberus continues to withhold from Congress.
    Put Guardrails Around Accessing Public Funds. Firms receiving any funds from a federal or state agency must publicly disclose how the funds are used and will be prohibited from acquiring any company or making a distribution to investors for two years after receipt.
    Drive REITS out of Health Care. Prohibits payments from federal health programs to entities that sell assets or use assets for a loan collateral made to a Real Estate Investment Trust (REIT) d; repeals a rule in the Tax Code that allows taxable REIT subsidiaries to exert influence on the operations of health care entities; and removes the 20 percent pass-through deduction, passed in the 2017 Trump tax cuts, for all REIT investors. Ralph de la Torre executed a sale-leaseback transaction of the Steward properties in exchange for a $1.25B payout from a REIT; this would have banned the hospitals from continuing to receive federal dollars upon executing the property sale—thus likely preventing the sale.
    The bill is supported by Action Center on Race and the Economy, AFL-CIO, American Economic Liberties Project, American Federation of Teachers, Americans for Financial Reform, Center for Popular Democracy, Coalition for Patient-Centered Care, Communications Workers of America, Community Catalyst, Economic Policy Institute, Indivisible, Massachusetts Nurses Association, National Employment Law Project, National Nurses United, National Women’s Law Center, Private Equity Stakeholder Project, People’s Action, Public Citizen, SEIU, Strong for All, Student Borrower Protection Center, Take Medicine Back, Take on Wall Street, UNITE HERE, United for Respect, Working Families Party, and Worth Rises.
    “Private equity has an immense impact on the U.S. economy, touching virtually every aspect of life from healthcare to housing to technology to retail and more. Private equity’s extractive playbook harms workers and communities, diminishes access to quality affordable health care, worsens the housing crisis and the climate crisis, and perpetuates systemic racism. Without major changes, a handful of ultra wealthy Wall Street executives will continue getting richer at everyone else’s expense. The Stop Wall Street Looting Act takes important, much needed steps to reign in Wall Street predatory practices and promote a just and sustainable economy,” said Lisa Donner, Executive Director, Americans for Financial Reform.
    “Union busting, pollution, and bankruptcy aren’t side effects of the private equity model: they are the model,” said Porter McConnell, Take on Wall Street. “It’s a smash-and-grab, plain and simple. That’s why we are so pleased to see comprehensive legislation like the Stop Wall Street Looting Act introduced in Congress today. We created the loopholes in the law that allowed the private equity industry to thrive, and we can end them. Our communities, our economy, and our democracy are depending on it.” 
    “As we fight for more public investment in the child care sector, we must also rein in private equity’s ability to enrich themselves at the expense of the public. Building guardrails – such as those in the Stop Wall Street Looting Act – will help put the wellbeing of children and families ahead of private equity’s profits,” said Melissa Boteach, Vice President, Income Security and Child Care/Early Learning, National Women’s Law Center.
    “Private equity firms, which control nearly $15 trillion in assets, routinely prioritize quick, outsized profits, at the expense of workers, patients, renters, and local economies as part of their business model,” said Chris Noble, Policy Director for the Private Equity Stakeholder Project. “The Stop Wall Street Looting Act provides an essential check on this opaque industry. By addressing the systemic risks tied to debt-laden private equity buyouts, this legislation prioritizes the long-term health of businesses and communities over short-term profits for wealthy private equity executives.” 
    “Private equity should have no influence over medical treatment decisions made jointly by independent physicians and their patients. The Stop Wall Street Looting Act goes a long way towards ensuring physicians, in consultation with their patients, are able to deliver quality, patient-centered, cost-efficient care without corporate interference,” said Dr. Stephen M. McCollam, Chair, Coalition for Patient-Centered Care.
    “Wall Street private equity firms have proven themselves to be a parasite on workers, our economy, and American retailers by gutting companies for profit and driving mass layoffs. Holding billionaire profiteers accountable for the damage they do to our working families and communities is imperative to addressing growing economic inequality,” said United for Respect Co-Executive Directors Bianca Agustin and Terrysa Guerra in a joint statement. “The Stop Wall Street Looting Act will help close loopholes in our laws that for too long have allowed private equity to pillage companies and amass huge profits while workers lose their jobs and are left with nothing. United For Respect is proud to support this bill — and we need all legislators to join us in protecting workers and putting Wall Street on the hook for the havoc they reap.”

    MIL OSI USA News –

  • MIL-Evening Report: ‘Violence at all levels’: UN report into the abuse of women and girls in sport is a wake-up call for Australia

    Source: The Conversation (Au and NZ) – By Kate Fitz-Gibbon, Professor (Practice), Faculty of Business and Economics, Monash University, Monash University

    PeopleImages.com – Yuri A/Shutterstock

    This week the United Nations (UN) Special Rapporteur on violence against women and girls presented a report detailing the violence experienced by women and girls in sport globally.

    The report provides a global snapshot of the abuse women athletes experience, who is most likely to perpetrate the violence, and makes recommendations on what should been done to promote safety of women and girls.

    Off the back of the Paris Olympic and Paralympic games, where Australia cheered on the record-breaking success of women athletes, the report should be a wake-up call for Australian sports and clubs.

    Abuse of women and girls in sport

    Drawing on more than 100 submissions and consultations with 50 people, the report finds:

    Women and girls in sport face widespread, overlapping and grave forms and manifestations of violence at all levels.

    These abusive behaviours include coercive control, physical violence, corporal punishment, verbal abuse, social exclusion, bullying and identity abuse.

    The impacts of this violence are wide-ranging: physical injuries, insomnia, fear and anxiety, reduced self-confidence, substance misuse, eating disorders, self harm, and decline in athletic performance and participation.

    These impacts can extend well beyond the athlete’s involvement in their sport.

    Women and girls also experience economic violence in sport. For example, when women athletes do not have control over their earnings, or when they are coerced into signing exploitative contracts.

    The report notes women athletes also experience heightened rates of abusive and harassing behaviours in online settings. This includes sexual harassment and threats, racism, ridicule, body shaming, sexualised comments, stalking, doxing and revenge porn.

    Perpetrators are wide-ranging. They include coaches, managers, spectators, teachers, peers, sports lawyers, referees and medical staff.

    The report describes sexual harassment and abuse as “rampant” and acknowledges the high rate of sexual violence, in particular with relationships between coaches and athletes.

    This includes grooming of younger athletes, where power and control dynamics, combined with an abuse of trust between an adult and child athlete, provide the conditions for sexual abuse to proliferate.

    It follows a 2023 report from the UN Educational, Scientific and Cultural Organisation (UNESCO) and UN Women, which estimates 21% of girls worldwide have experienced at least one form of sexual abuse as a child in sport.

    Is this a problem in Australia?

    Australians often pride themselves on how sports bring the nation, communities and families together but we too have a wide-reaching problem in this area.

    In 2021, a review of Swimming Australia found women athletes and coaches had experienced physical and mental abuse while the “Change the Routine” review of Gymnastics Australia revealed child abuse and neglect, misconduct, bullying, abuse, sexual harassment and assault towards gymnasts.

    More recently, a review by Sports Integrity Australia into Australian volleyball, which revealed systemic verbal and physical abuse of athletes, prompted a formal apology to past athletes.

    And a 2024 Deakin University study showed 87% of Australian sportswomen had experienced online harm within the past year.

    A lack of accountability and consequence

    In the traditionally male-dominated culture of sport, abusers have often gone unsanctioned, while those who experience abuse often leave their sport early and with significant consequences to their careers, financial stability, and mental and physical wellbeing.

    There are examples where abuse has been minimised or ignored by those in leadership to protect the reputation of the team or the sporting code, and where coaches have been able to move between teams without consequence.

    Take, for example, the sexual abuse of young female gymnasts by United States coach Larry Nassar.

    The first complaint against Nassar was made in 1997. Despite this, and the numerous other complaints which followed, Nassar remained in his coaching position with USA Gymnastics and Michigan State University until 2015. In December 2017 he was convicted of numerous counts of sexual abuse of minors.

    Outcomes of investigations by sporting bodies often remain confidential. For example, in 2017 the Fremantle Dockers and the AFL were criticised for their use of a “confidentiality agreement” in settling a sexual harassment matter.

    This impunity demonstrates a significant lack of accountability.

    The barriers to reporting abuse in sport

    There are significant barriers to reporting.

    Women elite athletes may fear losing their funding and sponsorship deals if they report abuse.

    In Australia, the Royal Commission into Institutional Responses to Child Sexual Abuse heard child athletes are most at risk of experiencing abuse by a person of authority (such as a coach) when they are about to achieve their best performance.

    As the UN Report states, it is at this time that “there is very little to gain by revealing the abuse and too much to lose”.

    This must change.

    When sporting codes put a desire to win above safeguarding and accountability, the clear message sent to victims is that violence is excusable, and that sporting heroes are immune to the consequences of their abusive actions.

    Raising awareness around early identification of abusive behaviours is key.

    The UN report reveals athletes often feel uncertain and uncomfortable in identifying early forms of abusive behaviours and lack information on what supports are available to them when they do.

    Ensuring a suite of reporting pathways is also critical. There is no one-size-fits-all model.

    Why Australia should take the lead

    Participating in sport has significant benefits. But sport settings must be safe for all.

    Many sporting organisations and clubs have recognised the problem of abuse of women and girls in sport, rolling out respect and responsibility programs, sexual harassment policies, as well as clearer reporting and investigation policies.

    This is a good start but must be built on.

    Indeed, the safety of women and girls must be a key focus of the Australian High Performance “Win Well” strategy for the Brisbane 2032 Olympic and Paralympic Games.

    Recent initiatives and policy changes should be monitored to examine how they work and whether they deliver safer outcomes for women and girls in sport at all levels.

    Responses to proven allegations of abuse must hold perpetrators to account. And critically, investigations must be independent, transparent and timely.

    The UN report reminds us “sports is a microcosm of society”.

    Violence against women and children in Australia has been declared a national emergency – ensuring the safety of women and girls in all sport settings is one critical component of addressing that crisis.

    Kate has received funding for family violence-related research from the Australian Research Council, Australian Institute of Criminology, Australia’s National Research Organisation for Women’s Safety, the Victorian, Queensland and ACT governments, the Commonwealth Department of Social Services and the Victorian Women’s Trust. This piece is written by Kate Fitz-Gibbon in her role at Monash University and is wholly independent of Kate Fitz-Gibbon’s role as Chair of Respect Victoria.

    – ref. ‘Violence at all levels’: UN report into the abuse of women and girls in sport is a wake-up call for Australia – https://theconversation.com/violence-at-all-levels-un-report-into-the-abuse-of-women-and-girls-in-sport-is-a-wake-up-call-for-australia-239085

    MIL OSI Analysis – EveningReport.nz –

  • MIL-Evening Report: Use of AI in property valuation is on the rise – but we need greater transparency and trust

    Source: The Conversation (Au and NZ) – By William Cheung, Senior Lecturer, Business School, University of Auckland, Waipapa Taumata Rau

    New Zealand’s economy has been described as a “housing market with bits tacked on”. Buying and selling property is a national sport fuelled by the rising value of homes across the country.

    But the wider public has little understanding of how those property valuations are created – despite their being a key factor in most banks’ decisions about how much they are willing to lend for a mortgage.

    Automated valuation models (AVM) – systems enabled by artificial intelligence (AI) that crunch vast datasets to produce instant property values – have done little to improve transparency in the process.

    These models started gaining traction in New Zealand in the early 2010s. The early versions used limited data sources like property sales records and council information. Today’s more advanced models include high-quality geo-spatial data from sources such as Land Information New Zealand.

    AI models have improved efficiency. But the proprietary algorithms behind those AVMs can make it difficult for homeowners and industry professionals to understand how specific values are calculated.

    In our ongoing research, we are developing a framework that evaluates these automated valuations. We have looked at how the figures should be interpreted and what factors might be missed by the AI models.

    In a property market as geographically and culturally varied as New Zealand’s, these points are not only relevant — they are critical. The rapid integration of AI into property valuation is no longer just about innovation and speed. It is about trust, transparency and a robust framework for accountability.

    AI valuations are a black box

    In New Zealand, property valuation has traditionally been a labour-intensive process. Valuers would usually inspect properties, make market comparisons and apply their expert judgement to arrive at a final value estimate.

    But this approach is slow, expensive and prone to human error. As demand for more efficient property valuations increased, the use of AI brought in much-needed change.

    But the rise of these valuations models is not without its challenges. While AI offers speed and consistency, it also comes with a critical downside: a lack of transparency.

    AVMs often operate as “black boxes”, providing little insight into the data and methodologies that drive their valuations. This raises serious concerns about the consistency, objectivity and transparency of these systems.

    What exactly the algorithm is doing when an AVM estimates a home’s value is not clear. Such opaqueness has real-world consequences, perpetuating market imbalances and inequities.

    Without a framework to monitor and correct these discrepancies, AI models risk distorting the property market further, especially in a country as diverse as New Zealand, where regional, cultural and historical factors significantly influence property values.

    Transparency and accountability

    A recent discussion forum with real estate industry insiders, law researchers and computer scientists on AI governance and property valuations highlighted the need for greater accountability when it comes to AVMs. Transparency alone is not enough. Trust must be built into the system.

    This can be achieved by requiring AI developers and users to disclose data sources, algorithms and error margins behind their valuations.

    Additionally, valuation models should incorporate a “confidence interval” – a range of prices that shows how much the estimated value might vary. This offers users a clearer understanding of the uncertainty inherent in each valuation.

    But effective AI governance in property valuation cannot be achieved in isolation. It demands collaboration between regulators, AI developers and property professionals.

    Bias correction

    New Zealand urgently needs a comprehensive evaluation framework for AVMs, one that prioritises transparency, accountability and bias correction.

    This is where our research comes in. We repeatedly resample small portions of the data to account for situations where property value data do not follow a normal distribution.

    This process generates a confidence interval showing a range of possible values around each property estimate. Users are then able to understand the variability and reliability of the AI-generated valuations, even when the data are irregular or skewed.

    Our framework goes beyond transparency. It incorporates a bias correction mechanism that detects and adjusts for constantly overvalued or undervalued estimates within AVM outputs. One example of this relates to regional disparities or undervaluation of particular property types.

    By addressing these biases, we ensure valuations that are not only accountable or auditable but also fair. The goal is to avoid the long-term market distortions that unchecked AI models could create.

    The rise of AI auditing

    But transparency alone is not enough. The auditing of AI-generated information is becoming increasingly important.

    New Zealand’s courts now require a qualified person to check information generated by AI and subsequently used in tribunal proceedings.

    In much the same way financial auditors ensure accuracy in accounting, AI auditors will play a pivotal role in maintaining the integrity of valuations.

    Based on earlier research, we are auditing the artificial valuation model estimates by comparing them with the market transacted prices of the same houses in the same period.

    It is not just about trusting the algorithms but trusting the people and systems behind them.

    The authors do not work for, consult, own shares in or receive funding from any company or organisation that would benefit from this article, and have disclosed no relevant affiliations beyond their academic appointment.

    – ref. Use of AI in property valuation is on the rise – but we need greater transparency and trust – https://theconversation.com/use-of-ai-in-property-valuation-is-on-the-rise-but-we-need-greater-transparency-and-trust-240880

    MIL OSI Analysis – EveningReport.nz –

  • MIL-Evening Report: The Texas Chain Saw Massacre and its harrowing, visceral impact has been rarely matched, 50 years on

    Source: The Conversation (Au and NZ) – By Nicholas Godfrey, Senior Lecturer, College of Humanities, Arts and Social Sciences, Flinders University

    The Texas Chain Saw Massacre is a product of a unique time in American filmmaking, when independent exploitation films were nastier than ever, and equally capable of piercing the mainstream consciousness.

    Tobe Hooper’s 1974 film arrived in a recently transformed exhibition landscape. The 1967 outcry over onscreen violence in Bonnie and Clyde marked the end of Hollywood’s Motion Picture Production Code and the introduction of film ratings.

    Films like Easy Rider (1969) elevated the standing of formerly disreputable exploitation fare within Hollywood. By 1973, The Exorcist was packing out cinemas and producing lines around city blocks with the promise of the most unremitting horror film yet made.

    The Texas Chain Saw Massacre was shot quickly on a shoestring budget, financed in part by the newly-formed Texas Film Commission. The film assembled its cast and crew from Austin’s circles of recent college graduates and dropouts.

    Its plot is straightforward enough: a group of young people are stranded when they run out of gas in rural Texas. They are terrorised and subsequently murdered by an eccentric local family, including the chainsaw wielding Leatherface – a nonverbal, childlike giant who wears masks made from the skin of his flayed victims.

    We learn this family have lost their jobs at the local slaughterhouse with the introduction of bolt gun technologies, leaving them sell roadside meat made from human victims.

    This detail has inspired a range of thematic interpretations for the film, encompassing commentary on class and family, gender and animal rights.

    The film lays bare the horrors of meat production, inflicted on human victims. The family home is the site where these themes come into conflict.

    Porn and violence on screen

    The Texas Chain Saw Massacre was picked up by the Bryanston Distributing Company. In 1972, Bryanston was the distributor for the theatrical release of the hardcore pornographic film Deep Throat. The film’s success shifted popular discourse around pornography, and helped Bryanston widen the theatrical release for The Texas Chain Saw Massacre.

    In subsequent years, media reported on alleged abusive on-set conditions on Deep Throat, along with claims Bryanston was connected with organised crime. Director Hooper, and many of the Chain Saw Massacre cast, alleged they never received their share of box office from the distributor.

    A 1974 poster.
    Ralf Liebhold/Shutterstock

    The Texas Chain Saw Massacre’s proximity to Deep Throat stoked controversy, conflating concern about increasingly extreme depictions of sex and violence onscreen.

    Two years earlier, young filmmaker Wes Craven had transitioned from making pornography to horror film. His low budget rape-revenge exploitation film The Last House on the Left (1972) was originally developed as a hardcore pornographic film. This approach was abandoned when it entered production.

    Unlike Craven’s notorious film, The Texas Chain Saw Massacre is not overtly sexualised. While there may be a sexual undertone to Leatherface’s pursuit of Sally and her companions, it does not escalate to onscreen acts of sexual violence.

    Regardless, the film drew condemnation, particularly in the United Kingdom, where it was banned, and later figured in public debates about the censorship of “video nasties” in the 1980s.

    For my part, I remember encountering The Texas Chain Saw Massacre at the video rental store as a child: its title, cover and R-rating promised horrors beyond comprehension, many years before I actually saw the film itself.

    Horrors implied, rather than shown

    Beyond its controversies, The Texas Chain Saw Massacre played an important role in the developing field of horror film studies. It figures prominently in Robin Wood’s taxonomy of “reactionary” horror movies (which uphold traditional values) and “progressive” horror movies, which take a more ambivalent stance on the figure of the monster, challenging conservative social values. Wood counts The Texas Chain Saw Massacre in the latter category.

    It is also central to Carol J. Clover’s influential codification of the “final girl” narrative trope, in which a sole young woman is able to withstand the monster’s onslaught.

    Alongside Halloween (1978), The Texas Chain Saw Massacre helped steer the trajectory of American horror films in the 1980s.

    Halloween is situated within the manicured surroundings of suburbia, and conveys its menace through the slick technical qualities of its gliding camera, and John Carpenter’s staccato synth score.

    By contrast, The Texas Chain Saw Massacre locates its horror in the backroads and decrepit farmhouses of central Texas. The idea of Texas looms large, connoting a place of lawlessness, violence and danger.

    Hooper punctuates his long shots with extreme close ups via rapid editing. The film’s most grotesque horrors are implied, rather than shown. Its most visceral impact comes from its extended chase sequences, and via its soundtrack: Sally’s piercing screams, and Leatherface’s ever-present chainsaw.

    While the Texas Chain Saw Massacre spawned several sequels and influenced even more imitators over the years, from the Ramones to Wolf Creek (2005) and X (2022), it has rarely been matched in its intensity, and its harrowing, visceral impact.

    Nicholas Godfrey 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. The Texas Chain Saw Massacre and its harrowing, visceral impact has been rarely matched, 50 years on – https://theconversation.com/the-texas-chain-saw-massacre-and-its-harrowing-visceral-impact-has-been-rarely-matched-50-years-on-236700

    MIL OSI Analysis – EveningReport.nz –

  • MIL-OSI USA News: FACT SHEET: Delivering on Our Commitments, 12th U.S.-ASEAN Summit in Vientiane, Lao  PDR

    Source: The White House

    The Biden-Harris Administration has worked to strengthen our ties with ASEAN and deliver on our commitments to the region. Over the past three and a half years, we have pursued an unprecedented expansion in the breadth and depth of U.S.-ASEAN relations, including upgrading our relationship to a Comprehensive Strategic Partnership and institutionalizing cooperation in five new areas—health, transportation, women’s empowerment, environment and climate, and energy—as well as deepening our cooperation in foreign affairs, economics, technology, and defense. To date, we have made significant progress in fulfilling 98.37 percent of our commitments in the ASEAN-U.S. Plan of Action (2022-2025) and its Annex. The United States will continue working with ASEAN, including through ASEAN-led mechanisms, to build an open, inclusive, transparent, resilient, and rules-based regional architecture in which ASEAN is its center.
     
    DELIVERING ON OUR COMPREHENSIVE STRATEGIC PARTNERSHIP

    This year, the United States and ASEAN are celebrating 47 years of U.S.-ASEAN relations. President Biden and Vice President Harris remain committed to ASEAN centrality and supporting the ASEAN Outlook on the Indo-Pacific, which shares fundamental principles with the U.S. Indo-Pacific Strategy. ASEAN is at the heart of the U.S. approach to the Indo-Pacific, as reflected in numerous U.S. initiatives to promote economic prosperity and regional stability. Through the U.S.-ASEAN Comprehensive Strategic Partnership, the United States has demonstrated that we are a reliable and enduring partner for our combined one billion people. Key U.S.-ASEAN accomplishments under the Comprehensive Strategic Partnership include:

    • The U.S. Agency for International Development (USAID) extended the U.S.-ASEAN Regional Development Cooperation Agreement to 2029 enabling the launch of the new five-year ASEAN USAID Partnership Program in March 2024. 
    • The United States plans to conduct a second U.S.-ASEAN maritime exercise in 2025, co-hosted by Indonesia. U.S. and ASEAN Member States’ navies will exercise communication, information sharing, and the implementation of maritime security protocols in accordance with international law.
    • In August 2024, the United States and ASEAN agreed to formalize U.S.-ASEAN health cooperation, elevating our engagement to a biennial U.S.-ASEAN Health Ministers Dialogue. USAID also officially launched the U.S.-ASEAN-Airborne Infection Defense Platform to bolster the region’s tuberculosis response capacity.
    • The United States is launching a cybersecurity training program for the ASEAN Secretariat that will enhance the cybersecurity awareness, knowledge, and skills of our partners who are the backbone of ASEAN institutions.  
    • At the third U.S.-ASEAN High-Level Dialogue on Environment and Climate this year, the United States unveiled the U.S.-ASEAN Climate Solutions Hub to help ASEAN members states develop and implement their contributions under the Paris Agreement.
    • In 2023, the United States and ASEAN held the inaugural Dialogue on the Rights of Persons with Disabilities to advance human rights for persons with disabilities across Southeast Asia, including working with private sector to find ways to support accessibility across Southeast Asia.

    As a reflection of the Comprehensive Strategic Partnership reaching its full potential, the United States and ASEAN celebrated the launch of the U.S.-ASEAN Center in Washington, DC in December 2023. The Center has already hosted several high-profile ASEAN-related events and is on track to become the key hub for ASEAN’s engagement with the United States.

    • In June 2024, the Center hosted the Secretary-General of ASEAN, Dr. Kao Kim Hourn, for his first working visit to the United States, where he launched a speaker series.
    • In August 2024, the Center hosted an ASEAN Day celebration, showcasing a wide array of cultural activities from ASEAN Member States.
    • The Center is also partnering with the Antiquities Coalition to host a Cultural Property Agreement workshop.

    The U.S.-ASEAN Smart Cities Partnership (USASCP) is a key mechanism for our engagement on innovating sustainable cities of the future. Since it was launched in 2018, USASCP has invested more than $19 million in over 20 projects across urban sectors throughout the region. USASCP tackles the varied challenges of rapid urbanization, including accelerating climate action and promoting sustainable urban services.

    • In 2024, the USASCP Smart Cities Business Innovation Fund 2.0 will grant $3 million for net-zero urban innovation projects to strengthen private sector investment in sustainability and climate action across the ASEAN region.
    • In 2022, the Smart Cities Business Innovation Fund 1.0 granted a total of $1 million to six awardees across the region, including a solar panel recycling facility in Da Nang Vietnam and a seaweed/bioplastics manufacturer in Tangerang Indonesia.
    • The United States paired municipal water and wastewater facility operators from five cities across the United States and the ASEAN Smart Cities Network to share their expertise.

    This year marks the Young Southeast Asian Leadership Initiative’s (YSEALI) second decade of building youth leadership capabilities across Southeast Asia to promote cross-border cooperation on regional and global challenges. YSEALI’s 160,000 strong digital network and 6,000 plus alumni community is creating new opportunities for its members to shape YSEALI’s next 10 years of impact. The State Department is well on its way to doubling the number of Southeast Asian youth participating in the YSEALI Academic and Professional Fellowships by 2025, in line with the commitments laid out by President Biden and Vice President Harris during the May 2022 U.S.-ASEAN Special Summit.

    • The United States has invested over $1.8 million to empower nearly 500 young women as part of the YSEALI Women’s Leadership Academy (WLA). In celebration of the WLA’s 10th anniversary, the U.S. Mission to ASEAN granted $44,000 to alumni groups to foster collaboration and find innovative ways to close the gender leadership gap.
    • The YSEALI Seeds for the Future Program—a grant program intended to support innovative initiatives in Southeast Asia—has provided nearly $3 million for more than 500 young leaders to carry out projects that improve their communities.
    • The Department of State’s YSEALI Alumni Engagement Innovation Fund supported 16 YSEALI alumni-led public service projects in 2024. 

    ENHANCING CONNECTIVITY AND RESILIENCE

    The Biden-Harris Administration continues to build greater connectivity with ASEAN and enhancing regional resilience to bolster economic development and integration. The United States is ASEAN’s number one source of foreign direct investment, and U.S. goods and services trade totaled an estimated $500 billion in 2023. Since 2002, the United States has provided more than $14.7 billion in economic, health, and security assistance to Southeast Asian allies and partners. During that same period, the United States provided nearly $1.9 billion in humanitarian assistance, including life-saving disaster assistance, emergency food aid, and support to refugees throughout the region. As a durable and reliable partner of ASEAN, the United States supports the governments and people of Southeast Asia in enhancing the region’s connectivity and resilience. In addition to U.S. companies’ substantial investments, the United States is cooperating with the private sector to equip the region’s workforce with the skills needed to succeed in Southeast Asia’s burgeoning digital economy. Other key U.S. initiatives supporting this effort include:

    • USAID announces $2 million of new funding to support the sustainable development of critical minerals, supporting ASEAN’s goal of raising environmental, social, and governance standards for mineral sector development. 
    • Through the Japan-U.S.-Mekong Power Partnership (JUMPP), the U.S. Department of State has implemented over 60 technical assistance activities to strengthen national power sectors and regional electricity market, enhancing the clean energy export potential of Cambodia, Lao PDR, Thailand, and Vietnam to the ASEAN market. 
    • The U.S. Trade and Development Agency is supporting a feasibility study to develop two cross-border interconnections, further expanding our longstanding support to connect the ASEAN Power Grid.
    • USAID is expanding cooperation with the ASEAN Center for Energy to support private sector and multilateral development bank investment to operationalize regional connectivity through the ASEAN Power Grid.
    • Through the ASEAN Digital Ministers’ Meeting and Digital Senior Officials’ Meeting, we are intensifying our cooperation on trusted information and communications technology infrastructure – including undersea cables, cloud computing, and wireless networks, artificial intelligence (AI), cybersecurity, and combatting online scams.
    • The United States supported development of the ASEAN Responsible AI Roadmap and provided AI technical assistance for the Digital Economy Framework Agreement. Our collective effort ensures ASEAN can foster an inclusive environment where affirmative, safe, secure, and trustworthy AI innovation can flourish.
    • Under the U.S.-ASEAN Connect framework, the U.S. Mission to ASEAN is leveraging the U.S. government and private sector expertise to advance economic engagement, including through workshops covering topics such as best practices to strengthen cybersecurity and how to harness digital technologies.

    Over the past three and a half years, the Biden-Harris Administration has also spurred investment and economic growth through the advancement of over $1.4 billion in private sector investments in the ASEAN region. This past year alone, the U.S. International Development Finance Corporation (DFC) has invested over $341 million in ASEAN markets. To further our cooperation and support, DFC has announced that it will open new offices in Vietnam and the Philippines to source more opportunities and further advance private sector investment. DFC’s key initiatives and investments have included:

    • Loaning up to $126 million loan to power company PT Medco Cahaya Geothermal to strengthen Indonesia’s energy security.
    • Initiating DFC’s first investment in Lao PDR with a $4 million loan portfolio guarantee to Phongsavanh Bank, which will work with Village Funds to give farmers financing to scale their businesses, increase their incomes, and improve their livelihoods.
    • Initiating DFC’s first investment in East Timor with a $3 million loan to microfinance institution Kaebauk Investimentu No Finansas, which will provide financing to small businesses, especially rural and unbanked ones.

    We look forward to continue advancing our Comprehensive Strategic Partnership with ASEAN in 2025 by formulating a new plan of action to guide the next five years of our enduring partnership as we work to further the prosperity of our combined one billion people.

    ###

    MIL OSI USA News –

  • MIL-OSI Global: US inflation rate fell to 2.4% in September − here’s what that means for interest rates and markets

    Source: The Conversation – USA – By Jason Reed, Associate Teaching Professor of Finance, University of Notre Dame

    All eyes on the CPI. Sila Damrongsaringkan/Getty Images Plus

    It wasn’t that long ago that the Federal Reserve, the central bank for the United States, was worrying that annual inflation would surpass 9% in the middle of 2022. The U.S. economy hadn’t seen prices rise that fast since the 1980s, and most everyone feared that a series of interest rate hikes would plunge the economy into a recession.

    What a difference two years can make.

    Inflation cooled to 2.4% in September 2024, according to consumer price index data released by the Labor Department on Oct. 10. That’s down from 2.5% the previous month and in line with market expectations of 2.3% to 2.4%. The inflation rate peaked at 8.9% in June 2022 – a 41-year high.

    The news brings the Fed – and its chair, Jerome Powell – much closer to reaching its 2% inflation target. It also marks the fourth straight month that year-over-year price changes have been below 3% and the third consecutive month of declining inflation rates.

    Speaking as an economist and finance professor, I think this could be a big deal for the Federal Reserve, which next meets – and could again cut interest rates – in November.

    Fodder for another rate cut?

    The Fed has what’s called a dual mandate: It pursues both low inflation and stable employment, two goals that can sometimes be at odds. Cutting interest rates can help employment but worsen inflation, while hiking them can do the opposite.

    Since inflation started to take off during the COVID-19 pandemic, Fed officials have emphasized that their job isn’t done until price increases are back down to the 2% target.

    But in light of recent labor market news, Powell and his colleagues have changed their messaging a bit. This indicates that the upside risks of inflation are lower than the risks associated with a weakening labor market.

    And in September, the Fed slashed the federal funds rate by 0.5 percentage point, or 50 basis points – the first cut since it began hiking rates in March 2022. The move came as unemployment had ticked up to 4.3% in July, job openings plummeted and broader labor markets weakened.

    Increasingly optimistic markets

    Equity markets rallied on the news of the September rate cut. Investors believe reductions in the federal funds rate, which is a prime rate that helps to dictate mortgage rates, auto loans, credit card rates and home equity lines of credit, will spur increases in investment and consumption, guiding the economy to a so-called soft landing instead of a recession.

    After that meeting, most members of the Federal Reserve Board indicated they would also favor cutting rates by 25 basis points at each of their upcoming November and December meetings.

    Between today’s inflation news and the unexpectedly sunny jobs report on Oct. 4, investors and markets have a lot of news to digest as they consider what path interest rates will take in the months ahead. Many continue to believe that we may well see two 25-basis-point cuts by the end of 2024 – and so do I.

    Jason Reed does not work for, consult, own shares in or receive funding from any company or organization that would benefit from this article, and has disclosed no relevant affiliations beyond their academic appointment.

    – ref. US inflation rate fell to 2.4% in September − here’s what that means for interest rates and markets – https://theconversation.com/us-inflation-rate-fell-to-2-4-in-september-heres-what-that-means-for-interest-rates-and-markets-240872

    MIL OSI – Global Reports –

  • MIL-OSI Banking: DDG Ellard: Effective trade policies essential for clean energy transition

    Source: WTO

    Headline: DDG Ellard: Effective trade policies essential for clean energy transition

    DDG Ellard noted that trade policies can help lower clean energy costs, decarbonize supply chains, harmonize standards, redirect subsidies toward sustainability, and create new economic opportunities in emerging low-carbon markets, ultimately fostering sustainable development.
    Highlighting key challenges, DDG Ellard pointed to significant tariff disparities that currently favour high-carbon goods over renewable energy equipment. For instance, while crude oil and coal face minimal tariffs, renewable technologies can incur duties as high as 12%. Reassessing these tariffs could enhance the competitiveness of renewable energy and accelerate its adoption.
    DDG Ellard also highlighted the challenges arising from the 73 different carbon pricing schemes globally, which inflate compliance costs and threaten climate objectives. Trade policies can facilitate greater interoperability and collaboration on carbon pricing frameworks, helping to alleviate trade tensions and expedite the transition to sustainability, she added.
    Furthermore, DDG Ellard emphasized the importance of redirecting harmful subsidies toward more beneficial objectives, highlighting that government support for fossil fuels exceeded USD 1.4 trillion in 2022. “By reallocating these funds to nature-positive initiatives, we can stimulate innovation and significantly reduce emissions,” she said. She noted that the Agreement on Fisheries Subsidies, adopted by WTO members in 2022, is a valuable blueprint for future efforts on environmental sustainability.  The Agreement demonstrates how economies can collaborate across geopolitical divides and eliminate environmentally harmful subsidies while redirecting resources toward more beneficial initiatives. DDG Ellard urged members that have yet to deposit their instruments of acceptance for this groundbreaking Agreement to do so promptly.
    DDG Ellard noted that the clean energy transition presents immense opportunities for developing economies rich in renewable energy resources and critical minerals. However, to fully harness this potential, targeted and effective trade policy actions are essential. These actions include aligning standards and implementing green procurement practices to establish stable frameworks that can reduce capital costs for large-scale renewable projects. WTO members are actively engaged in discussions aimed at supporting this process, exploring concrete pathways for trade-related climate actions, including promoting renewable technologies and addressing market distortions caused by fossil fuel subsidies.
    DDG Ellard also noted the importance of a solid investment climate in developing economies to build investor confidence and attract financing in ways to encourage environmental sustainability.  She highlighted that more than two-thirds of WTO members, including 89 developing members, of which 27 are least-developed countries (LDCs), concluded the Investment Facilitation for Development Agreement, designed to streamline investment procedures and encourage foreign direct investment in sustainable projects.
    Looking ahead to the 29th United Nations Climate Change Conference (COP29), DDG Ellard emphasized the significant opportunity for global leaders to integrate climate finance, investment, and trade, adding that the WTO Secretariat plans to co-host a Trade Day for the second year to highlight this intersection. She explained that in preparation for the last conference, the WTO Secretariat issued a 10-point set of “Trade Policy Tools for Climate Action “, launched at COP28. This publication explores how integrating trade policy options, such as reviewing import tariffs on low-carbon solutions, can help mitigate climate change impacts. The WTO Secretariat also presented a joint report with the International Renewable Energy Agency (IRENA) on “International Trade in Green Hydrogen ,” providing insights into global hydrogen trade and scaling up production.
    Additionally, DDG Ellard said, the WTO Secretariat’s support for collaboration in the steel sector has led to the establishment of Steel Standards Principles, endorsed by over 40 organizations, aimed at promoting common methodologies for measuring greenhouse gas emissions. The WTO is also examining the role of trade in addressing the high demand for energy-related critical minerals to alleviate supply chain pressures. These initiatives reflect the diverse perspectives of WTO members, all sharing the common goal of harnessing trade to combat climate change while promoting sustainable development.
    DDG Ellard concluded by emphasizing that a sustainable clean energy transition is both an environmental necessity and an economic opportunity, achievable only through collaboration. “The WTO Secretariat remains committed to supporting WTO members in creating a global trade environment that leverages trade tools to achieve sustainable environmental goals and bolster the resilience of renewable energy supply chains, all while ensuring that such efforts do not create barriers to trade”, she said.

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    MIL OSI Global Banks –

  • MIL-OSI Banking: Global goods trade on track for gradual recovery despite lingering downside risks

    Source: World Trade Organization

    In the October 2024 update of “Global Trade Outlook and Statistics,” WTO economists note that global merchandise trade turned upwards in the first half of 2024 with a 2.3% year-on-year increase, which should be followed by further moderate expansion in the rest of the year and in 2025. The rebound comes on the heels of a -1.1% slump in 2023 driven by high inflation and rising interest rates. World real GDP growth at market exchange rates is expected to remain steady at 2.7% in 2024 and 2025. 

    Inflation by the middle of 2024 had fallen sufficiently to allow central banks to cut interest rates.  Lower inflation should raise real household incomes and boost consumer spending, while lower interest rates should raise investment spending by firms.

    Director-General Ngozi Okonjo-Iweala said: “We are expecting a gradual recovery in global trade for 2024, but we remain vigilant of potential setbacks, particularly the potential escalation of regional conflicts like those in the Middle East. The impact could be most severe for the countries directly involved, but they may also indirectly affect global energy costs and shipping routes. Beyond the economic implications, we are deeply concerned about the humanitarian consequences for those affected by these conflicts.”

    “It is imperative that we continue to work collectively to ensure global economic stability and sustained growth, as these are fundamental to enhancing the welfare of people worldwide. In the past three decades since the WTO was established, per capita incomes in low- and middle-income economies have nearly tripled. We must continue our efforts to foster inclusive global trade,” DG Okonjo-Iweala said.

    Diverging monetary policies among major economies could lead to financial volatility and shifts in capital flows as central banks bring down interest rates. This might make debt servicing more challenging, particularly for poorer economies. There is also some limited upside potential to the forecast if interest rate cuts in advanced economies stimulate stronger than expected growth without reigniting inflation.

    Regional trade outlook

    “The latest forecasts for world trade in 2024 and 2025 only show modest revisions since the last Global Trade Outlook and Statistics report in April, but these projections do not capture some important changes in the regional composition of trade. Historical trade volume data have been revised substantially, including downward revisions to European exports and imports back to 2020.  There have also been notable changes in GDP forecasts by region, including a 0.4 percentage point upgrade to North America’s growth, which could influence trade flows in other regions as well,” WTO Chief Economist Ralph Ossa said.

    Europe is now expected to post a decline of 1.4% in export volumes in 2024; imports will meanwhile decrease by 2.3%. Germany’s economy contracted by 0.3% in the second quarter, with manufacturing indicators hitting 12-month lows in September. European exports have been dragged down by the region’s automotive and chemicals sectors. A slump in EU exports of automotive products is worrying due to the potential impact on the sector’s extensive supply chains. Meanwhile, organic chemical exports — some associated with medicines — are returning to normal trends following a surge during the COVID-19 pandemic. EU machinery imports also plummeted, particularly from China. This trend extends beyond geopolitical tensions, affecting imports from the United States, the Republic of Korea and Japan. Meanwhile, rising imports from India and Viet Nam suggest their growing roles in global supply chains.

    Asia’s export volumes will grow faster than those of any other region this year, rising by as much as 7.4% in 2024. The region saw a strong export rebound in the first half of the year driven by key manufacturing economies such as China, Singapore and the Republic of Korea. Asian imports show divergent trends: while China’s growth remains modest, other economies such as Singapore, Malaysia, India and Viet Nam are surging. This shift suggests their emerging role as “connecting” economies, trading across geopolitical blocs, thereby potentially mitigating the risk of fragmentation.

    South America (1) is rebounding in 2024, recovering from weaknesses in both exports and imports experienced in 2023. North American trade is largely driven by the United States although Mexico stands out with stronger import growth compared to the region as a whole. Mexican imports are rebounding after a contraction in 2023, underscoring the country’s growing role as a “connecting” economy in trade.

    Africa’s export growth is in line with the global trend. It has been revised downward from the April forecast, driven by an overall revision of Africa’s trade statistics, and a greater-than-expected weakening in Europe’s imports, Africa’s main trade partner. In April, WTO economists forecasted a contraction in the CIS region’s (2) imports for 2024, but now it is projected to post 1.1% growth, driven by stronger-than-expected GDP expansion. The Middle East had a major revision in its data, explaining the discrepancy between the April forecast and the current projections.

    Merchandise exports of least-developed countries (LDCs) are projected to increase by 1.8% in 2024, marking a slowdown from the 4.6% growth recorded in 2023. Export growth is expected to pick up in 2025, reaching 3.7%. Meanwhile, LDC imports are forecast to grow 5.9% in 2024 and 5.6% in 2025, following a 4.8% decline in 2023. These projections are underpinned by GDP growth estimates for LDCs of 3.3% in 2023, 4.3% in 2024 and 4.7% in 2025.

    Trade in services

    The short-term outlook for services is more positive than for goods, with 8% year-on-year growth in the US dollar value of commercial services trade recorded in the first quarter of 2024. Comprehensive services statistics for the second quarter will be released later in October, but data for available reporters through June suggest that relatively strong growth is likely to be sustained in the second quarter as well. 

    The services new export orders index rose to 51.7 in August, its highest level since July 2023. The services Purchasing Managers’ Index remained firmly in expansion territory at 52.9 as of August, although it did turn down in September.

    The full report is available here.

    Detailed quarterly and annual trade statistics can be downloaded from the WTO Stats portal. In addition, the interactive tool WTO | World Trade Statistics 2023 presents key data and trends for international trade, allowing users to view the latest trends, in terms of both value and volume, using filters to display the data by economy, region, selected grouping, product group and services sector.

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    MIL OSI Global Banks –

  • MIL-OSI Banking: Meeting of 11-12 September 2024

    Source: European Central Bank

    Account of the monetary policy meeting of the Governing Council of the European Central Bank held in Frankfurt am Main on Wednesday and Thursday, 11-12 September 2024

    10 October 2024

    1. Review of financial, economic and monetary developments and policy options

    Financial market developments

    Ms Schnabel noted that since the Governing Council’s previous monetary policy meeting on 17-18 July 2024 there had been repeated periods of elevated market volatility, as growth concerns had become the dominant market theme. The volatility in risk asset markets had left a more persistent imprint on broader financial markets associated with shifting expectations for the policy path of the Federal Reserve System.

    The reappraisal of expectations for US monetary policy had spilled over into euro area rate expectations, supported by somewhat weaker economic data and a notable decline in headline inflation in the euro area. Overnight index swap (OIS) markets were currently pricing in a steeper and more frontloaded rate-cutting cycle than had been anticipated at the time of the Governing Council’s previous monetary policy meeting. At the same time, survey expectations had hardly changed relative to July.

    Volatility in US equity markets had shot up to levels last seen in October 2020, following the August US non-farm payroll employment report and the unwinding of yen carry trades. Similarly, both the implied volatility in the euro area stock market and the Composite Indicator of Systemic Stress had spiked. However, the turbulence had proved short-lived, and indicators of volatility and systemic stress had come down quickly.

    The sharp swings in risk aversion among global investors had been mirrored in equity prices, with the weaker growth outlook having also been reflected in the sectoral performance of global equity markets. In both the euro area and the United States, defensive sectors had recently outperformed cyclical ones, suggesting that equity investors were positioning themselves for weaker economic growth.

    Two factors could have amplified stock market dynamics. One was that the sensitivity of US equity prices to US macroeconomic shocks can depend on prevailing valuations. Another was the greater role of speculative market instruments, including short volatility equity funds.

    The pronounced reappraisal of the expected path of US monetary policy had spilled over into rate expectations across major advanced economies, including the euro area. The euro area OIS forward curve had shifted noticeably lower compared with expectations prevailing at the time of the Governing Council’s July meeting. In contrast to market expectations, surveys had proven much more stable. The expectations reported in the most recent Survey of Monetary Analysts (SMA) had been unchanged versus the previous round and pointed towards a more gradual rate path.

    The dynamics of market-based and survey-based policy rate expectations over the year – as illustrated by the total rate cuts expected by the end of 2024 and the end of 2025 in the markets and in the SMA – showed that the higher volatility in market expectations relative to surveys had been a pervasive feature. Since the start of 2024 market-based expectations had oscillated around stable SMA expectations. The dominant drivers of interest rate markets in the inter-meeting period and for most of 2024 had in fact been US rather than domestic euro area factors, which could partly explain the more muted sensitivity of analysts’ expectations to recent incoming data.

    At the same time, the expected policy divergence between the euro area and the United States had changed signs, with markets currently expecting a steeper easing cycle for the Federal Reserve.

    The decline in US nominal rates across maturities since the Governing Council’s last meeting could be explained mainly by a decline in expected real rates, as shown by a breakdown of OIS rates across different maturities into inflation compensation and real rates. By contrast, the decline in euro area nominal rates had largely related to a decline in inflation compensation.

    The market’s reassessment of the outlook for inflation in the euro area and the United States had led to the one-year inflation-linked swap (ILS) rates one year ahead declining broadly in tandem on both sides of the Atlantic. The global shift in investor focus from inflation to growth concerns may have lowered investors’ required compensation for upside inflation risks. A second driver of inflation compensation had been the marked decline in energy prices since the Governing Council’s July meeting. Over the past few years the market’s near-term inflation outlook had been closely correlated with energy prices.

    Market-based inflation expectations had again been oscillating around broadly stable survey-based expectations, as shown by a comparison of the year-to-date developments in SMA expectations and market pricing for inflation rates at the 2024 and 2025 year-ends.

    The dominance of US factors in recent financial market developments and the divergence in policy rate expectations between the euro area and the United States had also been reflected in exchange rate developments. The euro had been pushed higher against the US dollar owing to the repricing of US monetary policy expectations and the deterioration in the US macroeconomic outlook. In nominal effective terms, however, the euro exchange rate had depreciated mildly, as the appreciation against the US dollar and other currencies had been more than offset by a weakening against the Swiss franc and the Japanese yen.

    Sovereign bond markets had once again proven resilient to the volatility in riskier asset market segments. Ten-year sovereign spreads over German Bunds had widened modestly after the turbulence but had retreated shortly afterwards. As regards corporate borrowing, the costs of rolling over euro area and US corporate debt had eased measurably across rating buckets relative to their peak.

    Finally, there had been muted take-up in the first three-month lending operation extending into the period of the new pricing for the main refinancing operations. As announced in March, the spread to the deposit facility rate would be reduced from 50 to 15 basis points as of 18 September 2024. Moreover, markets currently expected only a slow increase in take-up and no money market reaction to this adjustment.

    The global environment and economic and monetary developments in the euro area

    Mr Lane started by reviewing inflation developments in the euro area. Headline inflation had decreased to 2.2% in August (flash release), which was 0.4 percentage points lower than in July. This mainly reflected a sharp decline in energy inflation, from 1.2% in July to -3.0% in August, on account of downward base effects. Food inflation had been 2.4% in August, marginally up from 2.3% in July. Core inflation – as measured by the Harmonised Index of Consumer Prices (HICP) excluding energy and food – had decreased by 0.1 percentage points to 2.8% in August, as the decline in goods inflation to 0.4% had outweighed the rise in services inflation to 4.2%.

    Most measures of underlying inflation had been broadly unchanged in July. However, domestic inflation remained high, as wages were still rising at an elevated pace. But labour cost pressures were moderating, and lower profits were partially buffering the impact of higher wages on inflation. Growth in compensation per employee had fallen further, to 4.3%, in the second quarter of 2024. And despite weak productivity unit labour costs had grown less strongly, by 4.6%, after 5.2% in the first quarter. Annual growth in unit profits had continued to fall, coming in at -0.6%, after -0.2% in the first quarter and +2.5% in the last quarter of 2023. Negotiated wage growth would remain high and volatile over the remainder of the year, given the significant role of one-off payments in some countries and the staggered nature of wage adjustments. The forward-looking wage tracker also signalled that wage growth would be strong in the near term but moderate in 2025.

    Headline inflation was expected to rise again in the latter part of this year, partly because previous falls in energy prices would drop out of the annual rates. According to the latest ECB staff projections, headline inflation was expected to average 2.5% in 2024, 2.2% in 2025 and 1.9% in 2026, notably reaching 2.0% during the second half of next year. Compared with the June projections, the profile for headline inflation was unchanged. Inflation projections including owner-occupied housing costs were a helpful cross-check. However, in the September projections these did not imply any substantial difference, as inflation both in rents and in the owner-occupied housing cost index had shown a very similar profile to the overall HICP inflation projection. For core inflation, the projections for 2024 and 2025 had been revised up slightly, as services inflation had been higher than expected. Staff continued to expect a rapid decline in core inflation, from 2.9% this year to 2.3% in 2025 and 2.0% in 2026. Owing to a weaker economy and lower wage pressures, the projections now saw faster disinflation in the course of 2025, resulting in the projection for core inflation in the fourth quarter of that year being marked down from 2.2% to 2.1%.

    Turning to the global economy, Mr Lane stressed that global activity excluding the euro area remained resilient and that global trade had strengthened in the second quarter of 2024, as companies frontloaded their orders in anticipation of shipping delays ahead of the Christmas season. At the same time downside risks were rising, with indicators signalling a slowdown in manufacturing. The frontloading of trade in the first half of the year meant that trade performance in the second half could be weaker.

    The euro had been appreciating against the US dollar (+1.0%) since the July Governing Council meeting but had been broadly stable in effective terms. As for the energy markets, Brent crude oil prices had decreased by 14%, to around USD 75 per barrel, since the July meeting. European natural gas prices had increased by 16%, to stand at around €37 per megawatt-hour amid ongoing geopolitical concerns.

    Euro area real GDP had expanded by 0.2% in the second quarter of this year, after being revised down. This followed 0.3% in the first quarter and fell short of the latest staff projections for real GDP. It was important not to exaggerate the slowdown in the second quarter of 2024. This was less pronounced when excluding a small euro area economy with a large and volatile contribution from intangible investment. However, while the euro area economy was continuing to grow, the expansion was being driven not by private domestic demand, but mainly by net exports and government spending. Private domestic demand had weakened, as households were consuming less, firms had cut business investment and housing investment had dropped sharply. The euro area flash composite output Purchasing Managers’ Index (PMI) had risen to 51.2 in August from 50.2 in July. While the services sector continued to expand, the more interest-sensitive manufacturing sector continued to contract, as it had done for most of the past two years. The flash PMI for services business activity for August had risen to 53.3, while the manufacturing output PMI remained deeply in contractionary territory at 45.7. The overall picture raised concerns: as developments were very similar for both activity and new orders, there was no indication that the manufacturing sector would recover anytime soon. Consumer confidence remained subdued and industrial production continued to face strong headwinds, with the highly interconnected industrial sector in the euro area’s largest economy suffering from a prolonged slump. On trade, it was also a concern that the improvements in the PMIs for new export orders for both services and manufacturing had again slipped in the last month or two.

    After expanding by 3.5% in 2023, global real GDP was expected to grow by 3.4% in 2024 and 2025, and 3.3% in 2026, according to the September ECB staff macroeconomic projections. Compared to the June projections, global real GDP growth had been revised up by 0.1 percentage points in each year of the projection horizon. Even though the outlook for the world economy had been upgraded slightly, there had been a downgrade in terms of the export prices of the euro area’s competitors, which was expected to fuel disinflationary pressures in the euro area, particularly in 2025.

    The euro area labour market remained resilient. The unemployment rate had been broadly unchanged in July, at 6.4%. Employment had grown by 0.2% in the second quarter. At the same time, the growth in the labour force had slowed. Recent survey indicators pointed to a further moderation in the demand for labour, with the job vacancy rate falling from 2.9% in the first quarter to 2.6% in the second quarter, close to its pre-pandemic peak of 2.4%. Early indicators of labour market dynamics suggested a further deceleration of labour market momentum in the third quarter. The employment PMI had stood at the broadly neutral level of 49.9 in August.

    In the staff projections output growth was expected to be 0.8% in 2024 and to strengthen to 1.3% in 2025 and 1.5% in 2026. Compared with the June projections, the outlook for growth had been revised down by 0.1 percentage points in each year of the projection horizon. For 2024, the downward revision reflected lower than expected GDP data and subdued short-term activity indicators. For 2025 and 2026 the downward revisions to the average annual growth rates were the result of slightly weaker contributions from net trade and domestic demand.

    Concerning fiscal policies, the euro area budget balance was projected to improve progressively, though less strongly than in the previous projection round, from -3.6% in 2023 to -3.3% in 2024, -3.2% in 2025 and -3.0% in 2026.

    Turning to monetary and financial analysis, risk-free market interest rates had decreased markedly since the last monetary policy meeting, mostly owing to a weaker outlook for global growth and reduced concerns about inflation pressures. Tensions in global markets over the summer had led to a temporary tightening of financial conditions in the riskier market segments. But in the euro area and elsewhere forward rates had fallen across maturities. Financing conditions for firms and households remained restrictive, as the past policy rate increases continued to work their way through the transmission chain. The average interest rates on new loans to firms and on new mortgages had stayed high in July, at 5.1% and 3.8% respectively. Monetary dynamics were broadly stable amid marked volatility in monthly flows, with net external assets remaining the main driver of money creation. The annual growth rate of M3 had stood at 2.3% in July, unchanged from June but up from 1.5% in May. Credit growth remained sluggish amid weak demand.

    Monetary policy considerations and policy options

    Regarding the assessment of the inflation outlook, the dynamics of underlying inflation and the strength of monetary policy transmission, Mr Lane concluded that confidence in a timely return of inflation to target was supported by both declining uncertainty around the projections, including their stability across projection rounds, and also by inflation expectations across a range of indicators that remained aligned with a timely convergence to target. The incoming data on wages and profits had been in line with expectations. The baseline scenario foresaw a demand-led economic recovery that boosted labour productivity, allowing firms to absorb the expected growth in labour costs without denting their profitability too much. This should buffer the cost pressures stemming from higher wages, dampening price increases. Most measures of underlying inflation, including those with a high predictive content for future inflation, were stable at levels consistent with inflation returning to target in a sufficiently timely manner. While domestic inflation was still being kept elevated by pay rises, the projected slowdown in wage growth next year was expected to make a major contribution to the final phase of disinflation towards the target.

    Based on this assessment, it was now appropriate to take another step in moderating the degree of monetary policy restriction. Accordingly, Mr Lane proposed lowering the deposit facility rate – the rate through which the Governing Council steered the monetary policy stance – by 25 basis points. This decision was robust across a wide range of scenarios. At a still clearly restrictive level of 3.50% for the deposit facility rate, upside shocks to inflation calling into question the timely return of inflation to target could be addressed with a slower pace of rate reductions in the coming quarters compared with the baseline rate path embedded in the projections. At the same time, compared with holding the deposit facility rate at 3.75%, this level also offered greater protection against downside risks that could lead to an undershooting of the target further out in the projection horizon, including the risks associated with an excessively slow unwinding of the rate tightening cycle.

    Looking ahead, a gradual approach to dialling back restrictiveness would be appropriate if the incoming data were in line with the baseline projection. At the same time, optionality should be retained as regards the speed of adjustment. In one direction, if the incoming data indicated a sustained acceleration in the speed of disinflation or a material shortfall in the speed of economic recovery (with its implications for medium-term inflation), a faster pace of rate adjustment could be warranted; in the other direction, if the incoming data indicated slower than expected disinflation or a faster pace of economic recovery, a slower pace of rate adjustment could be warranted. These considerations reinforced the value of a meeting-by-meeting and data-dependent approach that maintained two-way optionality and flexibility for future rate decisions. This implied reiterating (i) the commitment to keep policy rates sufficiently restrictive for as long as necessary to achieve a timely return of inflation to target; (ii) the emphasis on a data-dependent and meeting-by-meeting approach in setting policy; and (iii) the retention of the three-pronged reaction function, based on the Governing Council’s assessment of the inflation outlook, the dynamics of underlying inflation and the strength of monetary policy transmission.

    As announced in March, some changes to the operational framework for implementing monetary policy were to come into effect at the start of the next maintenance period on 18 September. The spread between the rate on the main refinancing operations and the deposit facility rate would be reduced to 15 basis points. The spread between the rate on the marginal lending facility and the rate on the main refinancing operations would remain unchanged at 25 basis points. These technical adjustments implied that the main refinancing operations and marginal lending facility rates would be reduced by 60 basis points the following week, to 3.65% and 3.90% respectively. In view of these changes, the Governing Council should emphasise in its communication that it steered the monetary policy stance by adjusting the deposit facility rate.

    2. Governing Council’s discussion and monetary policy decisions

    Economic, monetary and financial analyses

    Looking at the external environment, members took note of the assessment provided by Mr Lane. Incoming data confirmed growth in global activity had been resilient, although recent negative surprises in PMI manufacturing output indicated potential headwinds to the near-term outlook. While the services sector was growing robustly, the manufacturing sector was contracting. Goods inflation was declining sharply, in contrast to persistent services inflation. Global trade had surprised on the upside in the second quarter, likely owing to frontloaded restocking. However, it was set to decelerate again in the third quarter and then projected to recover and grow in line with global activity over the rest of the projection horizon. Euro area foreign demand followed a path similar to global trade and had been revised up for 2024 (owing mainly to strong data). Net exports had been the main demand component supporting euro area activity in the past two quarters. Looking ahead, though, foreign demand was showing signs of weakness, with falling export orders and PMIs.

    Overall, the September projections had shown a slightly improved growth outlook relative to the June projections, both globally and for the major economies, which suggested that fears of a major global slowdown might be exaggerated. US activity remained robust, despite signs of rebalancing in the labour market. The recent rise in unemployment was due primarily to an increasing labour force, driven by higher participation rates and strong immigration, rather than to weakening labour demand or increased slack. China’s growth had slowed significantly in the second quarter as the persistent downturn in the property market continued to dampen household demand. Exports remained the primary driver of growth. Falling Chinese export prices highlighted the persisting overcapacity in the construction and high-tech manufacturing sectors.

    Turning to commodities, oil prices had fallen significantly since the Governing Council’s previous monetary policy meeting. The decline reflected positive supply news, dampened risk sentiment and the slowdown in economic activity, especially in China. The futures curve suggested a downward trend for oil prices. In contrast, European gas prices had increased in the wake of geopolitical concerns and localised supply disruptions. International prices for both metal and food commodities had declined slightly. Food prices had fallen owing to favourable wheat crop conditions in Canada and the United States. In this context, it was argued that the decline in commodity prices could be interpreted as a barometer of sentiment on the strength of global activity.

    With regard to economic activity in the euro area, members concurred with the assessment presented by Mr Lane and acknowledged the weaker than expected growth outcome in the second quarter. While broad agreement was expressed with the latest macroeconomic projections, it was emphasised that incoming data implied a downward revision to the growth outlook relative to the previous projection round. Moreover, the remark was made that the private domestic economy had contributed negatively to GDP growth for the second quarter in a row and had been broadly stagnating since the middle of 2022.

    It was noted that, since the cut-off for the projections, Eurostat had revised data for the latest quarters, with notable changes to the composition of growth. Moreover, in earlier national account releases, there had already been sizeable revisions to backdata, with upward revisions to the level of activity, which had been broadly taken into account in the September projections. With respect to the latest release, the demand components for the second quarter pointed to an even less favourable contribution from consumption and investment and therefore presented a more pessimistic picture than in the September staff projections. The euro area current account surplus also suggested that domestic demand remained weak. Reference was made to potential adverse non-linear dynamics resulting from the current economic weakness, for example from weaker balance sheets of households and firms, or originating in the labour market, as in some countries large firms had recently moved to lay off staff.

    It was underlined that the long-anticipated consumption-led recovery in the euro area had so far not materialised. This raised the question of whether the projections relied too much on consumption driving the recovery. The latest data showed that households had continued to be very cautious in their spending. The saving rate was elevated and had rebounded in recent quarters in spite of already high accumulated savings, albeit from a lower level following the national accounts revisions to the backdata. This might suggest that consumers were worried about their economic prospects and had little confidence in a robust recovery, even if this was not fully in line with the observed trend increase in consumer confidence. In this context, several factors that could be behind households’ increased caution were mentioned. These included uncertainty about the geopolitical situation, fiscal policy, the economic impact of climate change and transition policies, demographic developments as well as the outcome of elections. In such an uncertain environment, businesses and households could be more cautious and wait to see how the situation would evolve.

    At the same time, it was argued that an important factor boosting the saving ratio was the high interest rate environment. While the elasticity of savings to interest rates was typically relatively low in models, the increase in interest rates since early 2022 had been very significant, coming after a long period of low or negative rates. Against this background, even a small elasticity implied a significant impact on consumption and savings. Reference was also made to the European Commission’s consumer sentiment indicators. They had been showing a gradual recovery in consumer confidence for some time (in step with lower inflation), while perceived consumer uncertainty had been retreating. Therefore, the high saving rate was unlikely to be explained by mainly precautionary motives. It rather reflected ongoing monetary policy transmission, which could, however, be expected to gradually weaken over time, with deposit and loan rates starting to fall. Surveys were already pointing to an increase in household spending. In this context, the lags in monetary policy transmission were recalled. For example, households that had not yet seen any increase in their mortgage payments would be confronted with a higher mortgage rate if their rate fixation period expired. This might be an additional factor encouraging a build-up of savings.

    Reference was also made to the concept of permanent income as an important determinant of consumer spending. If households feared that their permanent income had not increased by as much as their current disposable income, owing to structural developments in the economy, then it was not surprising that they were limiting their spending.

    Overall, it was generally considered that a recession in the euro area remained unlikely. The projected recovery relied on a pick-up in consumption and investment, which remained plausible and in line with standard economics, as the fundamentals for that dynamic to set in were largely in place. Sluggish spending was reflecting a lagged response to higher real incomes materialising over time. In addition, the rise in household savings implied a buffer that might support higher spending later, as had been the case in the United States, although consumption and savings behaviour clearly differed on opposite sides of the Atlantic.

    Particular concerns were expressed about the weakness in investment this year and in 2025, given the importance of investment for both the demand and the supply side of the economy. It was observed that the economic recovery was not expected to receive much support from capital accumulation, in part owing to the continued tightness of financial conditions, as well as to high uncertainty and structural weaknesses. Moreover, it was underlined that one of the main economic drivers of investment was profits, which had weakened in recent quarters, with firms’ liquidity buffers dissipating at the same time. In addition, in the staff projections, the investment outlook had been revised down and remained subdued. This was atypical for an economic recovery and contrasted strongly with the very significant investment needs that had been highlighted in Mario Draghi’s report on the future of European competitiveness.

    Turning to the labour market, its resilience was still remarkable. The unemployment rate remained at a historical low amid continued robust – albeit slowing – employment growth. At the same time, productivity growth had remained low and had surprised to the downside, implying that the increase in labour productivity might not materialise as projected. However, a declining vacancy rate was seen as reflecting weakening labour demand, although it remained above its pre-pandemic peak. It was noted that a decline in vacancies usually coincided with higher job destruction and therefore constituted a downside risk to employment and activity more generally. The decline in vacancies also coincided with a decline in the growth of compensation per employee, which was perceived as a sign that the labour market was cooling.

    Members underlined that it was still unclear to what extent low productivity was cyclical or might reflect structural changes with an impact on growth potential. If labour productivity was low owing to cyclical factors, it was argued that the projected increase in labour productivity did not require a change in European firms’ assumed rate of innovation or in total factor productivity. The projected increase in labour productivity could simply come from higher capacity utilisation (in the presence of remaining slack) in response to higher demand. From a cyclical perspective, in a scenario where aggregate demand did not pick up, this would sooner or later affect the labour market. Finally, even if demand were eventually to recover, there could still be a structural problem and labour productivity growth could remain subdued over the medium term. On the one hand, it was contended that in such a case potential output growth would be lower, with higher unit labour costs and price pressures. Such structural problems could not be solved by lower interest rates and had to be addressed by other policy domains. On the other hand, the view was taken that structural weakness could be amplified by high interest rates. Such structural challenges could therefore be a concern for monetary policy in the future if they lowered the natural rate of interest, potentially making recourse to unconventional policies more frequent.

    Reference was also made to the disparities in the growth outlook for different countries, which were perceived as an additional challenge for monetary policy. Since the share of manufacturing in gross value added (as well as trade openness) differed across economies, some countries in the euro area were suffering more than others from the slowdown in industrial activity. Weak growth in the largest euro area economy, in particular, was dragging down euro area growth. While part of the weakness was likely to be cyclical, this economy was facing significant structural challenges. By contrast, many other euro area countries had shown robust growth, including strong contributions from domestic demand. It was also highlighted that the course of national fiscal policies remained very uncertain, as national budgetary plans would have to be negotiated during a transition at the European Commission. In this context, the gradual improvement in the aggregated fiscal position of the euro area embedded in the projections was masking considerable differences across countries. Implementing the EU’s revised economic governance framework fully, transparently and without delay would help governments bring down budget deficits and debt ratios on a sustained basis. The effect of an expansionary fiscal policy on the economy was perceived as particularly uncertain in the current environment, possibly contributing to higher savings rather than higher spending by households (exerting “Ricardian” rather than “Keynesian” effects).

    Against this background, members called for fiscal and structural policies aimed at making the economy more productive and competitive, which would help to raise potential growth and reduce price pressures in the medium term. Mario Draghi’s report on the future of European competitiveness and Enrico Letta’s report on empowering the Single Market stressed the urgent need for reform and provided concrete proposals on how to make this happen. Governments should now make a strong start in this direction in their medium-term plans for fiscal and structural policies.

    In particular, it was argued that Mario Draghi’s report had very clearly identified the structural factors explaining Europe’s growth and industrial competitiveness gap with the United States. The report was seen as taking a long-term view on the challenges facing Europe, with the basic underlying question of how Europeans could remain in control of their own destiny. If Europe did not heed the call to invest more, the European economy would increasingly fall behind the United States and China.

    Against this background, members assessed that the risks to economic growth remained tilted to the downside. Lower demand for euro area exports, owing for instance to a weaker world economy or an escalation in trade tensions between major economies, would weigh on euro area growth. Russia’s unjustified war against Ukraine and the tragic conflict in the Middle East were major sources of geopolitical risk. This could result in firms and households becoming less confident about the future and global trade being disrupted. Growth could also be lower if the lagged effects of monetary policy tightening turned out stronger than expected. Growth could be higher if inflation came down more quickly than expected and rising confidence and real incomes meant that spending increased by more than anticipated, or if the world economy grew more strongly than expected.

    With regard to price developments, members concurred with the assessment presented by Mr Lane in his introduction and underlined the fact that the recent declines in inflation had delivered good news. The incoming data had bolstered confidence that inflation would return to target by the end of 2025. Falling inflation, slowing wage growth and unit labour costs, as well as higher costs being increasingly absorbed by profits, suggested that the disinflationary process was on track. The unchanged baseline path for headline inflation in the staff projections gave reassurance that inflation would be back to target by the end of 2025.

    However, it was emphasised that core inflation was very persistent. In particular, services inflation had continued to come in stronger than projected and had moved sideways since November of last year. Recent declines in headline inflation had been strongly influenced by lower energy prices, which were known to be very volatile. Moreover, the baseline path to 2% depended critically on lower wage growth as well as on an acceleration of productivity growth towards rates not seen for many years and above historical averages.

    Conversely, it was stressed that inflation had recently been declining somewhat faster than expected, and the risk of undershooting the target was now becoming non-negligible. With Eurostat’s August HICP flash release, the projections were already too pessimistic on the pace of disinflation in the near term. Moreover, commodity prices had declined further since the cut-off date, adding downward pressure to inflation. Prices for raw materials, energy costs and competitors’ export prices had all fallen, while the euro had been appreciating against the US dollar. In addition, lower international prices not only had a short-term impact on headline euro area inflation but would ultimately also have an indirect effect on core inflation, through the price of services such as transportation (e.g. airfares). However, in that particular case, the size of the downward effect depended on how persistent the drop in energy prices was expected to be. From a longer perspective, it was underlined that for a number of consecutive rounds the projections had pointed to inflation reaching the 2% target by the end of 2025.

    At the same time, it was pointed out that the current level of headline inflation understated the challenges that monetary policy was still facing, which called for caution. Given the current high volatility in energy prices, headline inflation numbers were not very informative about medium-term price pressures. Overall, it was felt that core inflation required continued attention. Upward revisions to projected quarterly core inflation until the third quarter of 2025, which for some quarters amounted to as much as 0.3 percentage points, showed that the battle against inflation was not yet won. Moreover, domestic inflation remained high, at 4.4%. It reflected persistent price pressures in the services sector, where progress with disinflation had effectively stalled since last November. Services inflation had risen to 4.2% in August, above the levels of the previous nine months.

    The outlook for services inflation called for caution, as its stickiness might be driven by several structural factors. First, in some services sectors there was a global shortage of labour, which might be structural. Second, leisure services might also be confronted with a structural change in preferences, which warranted further monitoring. It was remarked that the projection for industrial goods inflation indicated that the sectoral rate would essentially settle at 1%, where it had been during the period of strong globalisation before the pandemic. However, in a world of fragmentation, deglobalisation and negative supply shocks, it was legitimate to expect higher price increases for non-energy industrial goods. Even if inflation was currently low in this category, this was not necessarily set to last.

    Members stressed that wage pressures were an important driver of the persistence of services inflation. While wage growth appeared to be easing gradually, it remained high and bumpy. The forward-looking wage tracker was still on an upward trajectory, and it was argued that stronger than expected wage pressures remained one of the major upside risks to inflation, in particular through services inflation. This supported the view that focus should be on a risk scenario where wage growth did not slow down as expected, productivity growth remained low and profits absorbed higher costs to a lesser degree than anticipated. Therefore, while incoming data had supported the baseline scenario, there were upside risks to inflation over the medium term, as the path back to price stability hinged on a number of critical assumptions that still needed to materialise.

    However, it was also pointed out that the trend in overall wage growth was mostly downwards, especially when focusing on growth in compensation per employee. Nominal wage growth for the first half of the year had been below the June projections. While negotiated wage growth might be more volatile, in part owing to one-off payments, the difference between it and compensation per employee – the wage drift – was more sensitive to the currently weak state of the economy. Moreover, despite the ongoing catching-up of real wages, the currently observed faster than expected disinflation could ultimately also be expected to put further downward pressure on wage claims – with second-round effects having remained contained during the latest inflation surge – and no sign of wage-price spirals taking root.

    As regards longer-term inflation expectations, market-based measures had come down notably and remained broadly anchored at 2%, reflecting the market view that inflation would fall rapidly. A sharp decline in oil prices, driven mainly by benign supply conditions and lower risk sentiment, had pushed down inflation expectations in the United States and the euro area to levels not seen for a long time. In this context it was mentioned that, owing to the weakness in economic activity and faster and broader than anticipated disinflation, risks of a downward unanchoring of inflation expectations had increased. Reference was made, in particular, to the prices of inflation fixings (swap contracts linked to specific monthly releases for euro area year-on-year HICP inflation excluding tobacco), which pointed to inflation well below 2% in the very near term – and falling below 2% much earlier than foreseen in the September projections. The view was expressed that, even if such prices were not entirely comparable with measured HICP inflation and were partly contaminated by negative inflation risk premia, their low readings suggested that the risks surrounding inflation were at least balanced or might even be on the downside, at least in the short term. However, it was pointed out that inflation fixings were highly correlated with oil prices and had limited forecasting power beyond short horizons.

    Against this background, members assessed that inflation could turn out higher than anticipated if wages or profits increased by more than expected. Upside risks to inflation also stemmed from the heightened geopolitical tensions, which could push energy prices and freight costs higher in the near term and disrupt global trade. Moreover, extreme weather events, and the unfolding climate crisis more broadly, could drive up food prices. By contrast, inflation might surprise on the downside if monetary policy dampened demand more than expected or if the economic environment in the rest of the world worsened unexpectedly.

    Turning to the monetary and financial analysis, members largely concurred with the assessment provided by Ms Schnabel and Mr Lane in their introductions. Market interest rates had declined significantly since the Governing Council’s previous monetary policy meeting in July. Market participants were now fully pricing in a 25 basis point cut in the deposit facility rate for the September meeting and attached a 35% probability to a further rate cut in October. In total, between two and three rate cuts were now priced in by the end of the year, up from two cuts immediately after the June meeting. The two-year OIS rate had also decreased by over 40 basis points since the July meeting. More generally it was noted that, because financial markets were anticipating the full easing cycle, this had already implied an additional and immediate easing of the monetary policy stance, which was reflected in looser financial conditions.

    The decline in market interest rates in the euro area and globally was mostly attributable to a weaker outlook for global growth and the anticipation of monetary policy easing due to reduced concerns about inflation pressures. Spillovers from the United States had played a significant role in the development of euro area market rates, while changes in euro area data – notably the domestic inflation outlook – had been limited, as could be seen from the staff projections. In addition, it was noted that, while a lower interest rate path in the United States reflected the Federal Reserve’s assessment of prospects for inflation and employment under its dual mandate, lower rates would normally be expected to stimulate the world economy, including in the euro area. However, the concurrent major decline in global oil prices suggested that this spillover effect could be counteracted by concerns about a weaker global economy, which would naturally reverberate in the euro area.

    Tensions in global markets in August had led to a temporary tightening of conditions in some riskier market segments, which had mostly and swiftly been reversed. Compared with earlier in the year, market participants had generally now switched from being concerned about inflation remaining higher for longer in a context of robust growth to being concerned about too little growth, which could be a prelude to a hard landing, amid receding inflation pressures. While there were as yet no indications of a hard landing in either the United States or the euro area, it was argued that the events of early August had shown that financial markets were highly sensitive to disappointing growth readings in major economies. This was seen to represent a source of instability and downside risks, although market developments at that time indicated that investors were still willing to take on risk. However, the view was also expressed that the high volatility and market turbulence in August partly reflected the unwinding of carry trades in wake of Bank of Japan’s policy tightening following an extended period of monetary policy accommodation. Moreover, the correction had been short-lived amid continued high valuations in equity markets and low risk premia across a range of assets.

    Financing costs in the euro area, measured by the interest rates on market debt instruments and bank loans, had remained restrictive as past policy rate increases continued to work their way through the transmission chain. The average interest rates on new loans to firms and on new mortgages had stayed high in July, at 5.1 and 3.8% respectively. It was suggested that other elements of broader financing conditions were not as tight as the level of the lending rates or broader indicators of financial conditions might suggest. Equity financing, for example, had been abundant during the entire period of disinflation and credit spreads had been very compressed. At the same time, it was argued that this could simply reflect weak investment demand, whereby firms did not need or want to borrow and so were not prepared to issue debt securities at high rates.

    Against this background, credit growth had remained sluggish amid weak demand. The growth of bank lending to firms and households had remained at levels not far from zero in July, with the former slightly down from June and the latter slightly up. The annual growth in broad money – as measured by M3 – had in July remained relatively subdued at 2.3%, the same rate as in June.

    It was suggested that the weakness in credit dynamics also reflected the still restrictive financing conditions, which were likely to keep credit growth weak through 2025. It was also argued that banks faced challenges, with their price-to-book ratios, while being higher than in earlier years, remaining generally below one. Moreover, it was argued that higher credit risk, with deteriorating loan books, had the potential to constrain credit supply. At the same time, the June rate cut and the anticipation of future cuts had already slightly lowered bank funding costs. In addition, banks remained highly profitable, with robust valuations. It was also not unusual for price-to-book ratios to be below one and banks had no difficulty raising capital. Credit demand was considered the main factor holding back loan growth, since investment remained especially weak. On the household side, it was suggested that the demand for mortgages was likely to increase with the pick-up in housing markets.

    Monetary policy stance and policy considerations

    Turning to the monetary policy stance, members assessed the data that had become available since the last monetary policy meeting in accordance with the three main elements of the Governing Council’s reaction function.

    Starting with the inflation outlook, the latest ECB staff projections had confirmed the inflation outlook from the June projections. Inflation was expected to rise again in the latter part of this year, partly because previous sharp falls in energy prices would drop out of the annual rates. It was then expected to decline towards the target over the second half of next year, with the disinflation process supported by receding labour cost pressures and the past monetary policy tightening gradually feeding through to consumer prices. Inflation was subsequently expected to remain close to the target on a sustained basis. Most measures of longer-term inflation expectations stood at around 2%, and the market-based measures had fallen closer to that level since the Governing Council’s previous monetary policy meeting.

    Members agreed that recent economic developments had broadly confirmed the baseline outlook, as reflected in the unchanged staff projections for headline inflation, and indicated that the disinflationary path was progressing well and becoming more robust. Inflation was on the right trajectory and broadly on track to return to the target of 2% by the end of 2025, even if headline inflation was expected to remain volatile for the remainder of 2024. But this bumpy inflation profile also meant that the final phase of disinflation back to 2% was only expected to start in 2025 and rested on a number of assumptions. It therefore needed to be carefully monitored whether inflation would settle sustainably at the target in a timely manner. The risk of delays in reaching the ECB’s target was seen to warrant some caution to avoid dialling back policy restriction prematurely. At the same time, it was also argued that monetary policy had to remain oriented to the medium term even in the presence of shocks and that the risk of the target being undershot further out in the projection horizon was becoming more significant.

    Turning to underlying inflation, members noted that most measures had been broadly unchanged in July. Domestic inflation had remained high, with strong price pressures coming especially from wages. Core inflation was still relatively high, had been sticky since the beginning of the year and was continuing to surprise to the upside. Moreover, the projections for core inflation in 2024 and 2025 had been revised up slightly, as services inflation had been higher than expected. Labour cost dynamics would continue to be a central concern, with the projected decline in core and services inflation next year reliant on key assumptions for wages, productivity and profits, for which the actual data remained patchy. In particular, productivity was low and had not yet picked up, while wage growth, despite gradual easing, remained high and bumpy. A disappointment in productivity growth could be a concern, as the capacity of profits to absorb increases in unit labour costs might be reaching its limits. Wage growth would then have to decline even further for inflation to return sustainably to the target. These factors could mean that core inflation and services inflation might be stickier and not decline as much as currently expected.

    These risks notwithstanding, comfort could be drawn from the gradual decline in the momentum of services inflation, albeit from high levels, and the expectation that it would fall further, partly as a result of significant base effects. The catching-up process for wages was advanced, with wage growth already slowing down by more than had previously been projected and expected to weaken even faster next year, with no signs of a wage-price spiral. If lower energy prices or other factors reduced the cost of living now, this should put downward pressure on wage claims next year.

    Finally, members generally agreed that monetary policy transmission from the past tightening continued to dampen economic activity, even if it had likely passed its peak. Financing conditions remained restrictive. This was reflected in weak credit dynamics, which had dampened consumption and investment, and thereby economic activity more broadly. The past monetary policy tightening had gradually been feeding through to consumer prices, thereby supporting the disinflation process. There were many other reasons why monetary policy was still working its way through the economy, with research suggesting that there could be years of lagged effects before the full impact dissipated completely. For example, as firms’ and households’ liquidity buffers had diminished, they were now more exposed to higher interest rates than previously, and banks could, in turn, also be facing more credit risk. At the same time, with the last interest rate hike already a year in the past, the transmission of monetary policy was expected to weaken progressively from its peak, also as loan and deposit rates had been falling, albeit very moderately, for almost a year. The gradually fading effects of restrictive monetary policy were thus expected to support consumption and investment in the future. Nonetheless, ongoing uncertainty about the transmission mechanism, in terms of both efficacy and timing, underscored the continuing importance of monitoring the strength of monetary policy transmission.

    Monetary policy decisions and communication

    Against this background, members considered the proposal by Mr Lane to lower the deposit facility rate – the rate through which the Governing Council steered the monetary policy stance – by 25 basis points. As had been previously announced on 13 March 2024, some changes to the operational framework for implementing monetary policy would also take effect from 18 September. In particular, the spread between the interest rate on the main refinancing operations and the deposit facility rate would be set at 15 basis points. The spread between the rate on the marginal lending facility and the rate on the main refinancing operations would remain unchanged at 25 basis points. Accordingly, the deposit facility rate would be decreased to 3.50% and the interest rates on the main refinancing operations and the marginal lending facility would be decreased to 3.65% and 3.90% respectively.

    Based on the updated assessment of the inflation outlook, the dynamics of underlying inflation and the strength of monetary policy transmission, it was now appropriate to take another step in moderating the degree of monetary policy restriction. The recent incoming data and the virtually unchanged staff projections had increased members’ confidence that disinflation was proceeding steadily and inflation was on track to return towards the 2% target in a sustainable and timely manner. Headline inflation had fallen in August to levels previously seen in the summer of 2021 before the inflation surge, and there were signs of easing pressures in the labour market, with wage growth and unit labour costs both slowing. Despite some bumpy data expected in the coming months, the big picture remained one of a continuing disinflationary trend progressing at a firm pace and more or less to plan. In particular, the Governing Council’s expectation that significant wage growth would be buffered by lower profits had been confirmed in the recent data. Both survey and market-based measures of inflation expectations remained well anchored, and longer-term expectations had remained close to 2% for a long period which included times of heightened uncertainty. Confidence in the staff projections had been bolstered by their recent stability and increased accuracy, and the projections had shown inflation to be on track to reach the target by the end of 2025 for at least the last three rounds.

    It was also noted that the overall economic outlook for the euro area was more concerning and the projected recovery was fragile. Economic activity remained subdued, with risks to economic growth tilted to the downside and near-term risks to growth on the rise. These concerns were also reflected in the lower growth projections for 2024 and 2025 compared with June. A remark was made that, with inflation increasingly close to the target, real economic activity should become more relevant for calibrating monetary policy.

    Against this background, all members supported the proposal by Mr Lane to reduce the degree of monetary policy restriction through a second 25 basis point rate cut, which was seen as robust across a wide range of scenarios in offering two-sided optionality for the future.

    Looking ahead, members emphasised that they remained determined to ensure that inflation would return to the 2% medium-term target in a timely manner and that they would keep policy rates sufficiently restrictive for as long as necessary to achieve this aim. They would also continue to follow a data-dependent and meeting-by-meeting approach to determining the appropriate level and duration of restriction. There should be no pre-commitment to a particular rate path. Accordingly, it was better to maintain full optionality for the period ahead to be free to respond to all of the incoming data.

    It was underlined that the speed at which the degree of restrictiveness should be reduced depended on the evolution of incoming data, with the three elements of the stated reaction function as a solid anchor for the monitoring and decision-making process. However, such data-dependence did not amount to data point-dependence, and no mechanical weights could be attached to near-term developments in headline inflation or core inflation or any other single statistic. Rather, it was necessary to assess the implications of the totality of data for the medium-term inflation outlook. For example, it would sometimes be appropriate to ignore volatility in oil prices, but at other times, if oil price moves were likely to create material spillovers across the economy, it would be important to respond.

    Members broadly concurred that a gradual approach to dialling back restrictiveness would be appropriate if future data were in line with the baseline projections. This was also seen to be consistent with the anticipation that a gradual easing of financial conditions would support economic activity, including much-needed investment to boost labour productivity and total factor productivity.

    It was mentioned that a gradual and cautious approach currently seemed appropriate because it was not fully certain that the inflation problem was solved. It was therefore too early to declare victory, also given the upward revisions in the quarterly projections for core inflation and the recent upside surprises to services inflation. Although uncertainty had declined, it remained high, and some of the key factors and assumptions underlying the baseline outlook, including those related to wages, productivity, profits and core and services inflation, still needed to materialise and would move only slowly. These factors warranted close monitoring. The real test would come in 2025, when it would become clearer whether wage growth had come down, productivity growth had picked up as projected and the pass-through of higher labour costs had been moderate enough to keep price pressures contained.

    At the same time, it was argued that continuing uncertainty meant that there were two-sided risks to the baseline outlook. As well as emphasising the value of maintaining a data-dependent approach, this also highlighted important risk management considerations. In particular, it was underlined that there were alternative scenarios on either side. For example, a faster pace of rate cuts would likely be appropriate if the downside risks to domestic demand and the growth outlook materialised or if, for example, lower than expected services inflation increased the risk of the target being undershot. It was therefore important to maintain a meeting-by-meeting approach.

    Conversely, there were scenarios in which it might be necessary to suspend the cutting cycle for a while, perhaps because of a structural decline in activity or other factors leading to higher than expected core inflation.

    Turning to communication, members agreed that it was important to convey that recent inflation data had come in broadly as expected, and that the latest ECB staff projections had confirmed the previous inflation outlook. At the same time, to reduce the risk of near-term inflation data being misinterpreted, it should be explained that inflation was expected to rise again in the latter part of this year, partly as a result of base effects, before declining towards the target over the second half of next year. It should be reiterated that the Governing Council would continue to follow a data-dependent and meeting-by-meeting approach, would not pre-commit to a particular rate path and would continue to set policy based on the established elements of the reaction function. In view of the previously announced change to the spread between the interest rate on the main refinancing operations and the deposit facility rate, it was also important to make clear at the beginning of the communication that the Governing Council steered the monetary policy stance through the deposit facility rate.

    Members also agreed with the Executive Board proposal to continue applying flexibility in the partial reinvestment of redemptions falling due in the pandemic emergency purchase programme portfolio.

    Taking into account the foregoing discussion among the members, upon a proposal by the President, the Governing Council took the monetary policy decisions as set out in the monetary policy press release. The members of the Governing Council subsequently finalised the monetary policy statement, which the President and the Vice-President would, as usual, deliver at the press conference following the Governing Council meeting.

    Monetary policy statement

    Other ECB staff

    • Mr Proissl, Director General Communications
    • Mr Straub, Counsellor to the President
    • Ms Rahmouni-Rousseau, Director General Market Operations
    • Mr Arce, Director General Economics
    • Mr Sousa, Deputy Director General Economics

    Release of the next monetary policy account foreseen on 14 November 2024.

    MIL OSI Global Banks –

  • MIL-OSI Europe: Italy: InvestEU – EIB and Intesa Sanpaolo announce agreement to back wind industry investment of up to €8 billion

    Source: European Investment Bank

    ©maxpro/ Shutterstock

    • The operation includes a €500 million EIB counter-guarantee enabling Intesa Sanpaolo to create a portfolio of bank guarantees of up to €1 billion, helping to unlock €8 billion of investment in the real economy.
    • The agreement is part of the EIB’s €5 billion wind power package to accelerate Europe’s green energy transition.
    • The operation is backed by InvestEU, the EU programme aiming to mobilise investment of more than €372 billion by 2027.
    • The EIB has signed agreements totalling almost €5 billion with Intesa Sanpaolo over the last five years.

    The European Investment Bank (EIB) and Intesa Sanpaolo (IMI CIB Division) have announced a new initiative helping to unlock investment of up to €8 billion for the European wind industry. It is the first agreement supported by InvestEU and the second overall under the EIB’s €5 billion wind power package, an investment plan announced by the EU bank at COP28 in Dubai. This programme aims to support the production of 32 GW of the 117 GW of wind capacity needed to enable the European Union to meet its goal of generating at least 45% of its energy from renewable sources by 2030.

    “Wind energy is central to European energy independence,” said EIB Vice-President Gelsomina Vigliotti. “Producers are facing challenges such as high costs, uncertain demand, slow permitting, supply chain bottlenecks and strong international competition. This agreement shows how the EIB’s risk-sharing instruments help overcome these difficulties and finance key projects for the green transition and the decarbonisation of the European economy.”

    In concrete terms, the EIB will provide a €500 million counter-guarantee to Intesa Sanpaolo, enabling the Italian bank to create a portfolio of bank guarantees of up to €1 billion. These will back the supply chain and power grid interconnection for new wind farms projects across the European Union. The high leverage effect of the EIB counter-guarantee will free up additional funding to support increasing production and accelerating wind energy development, helping to support an estimated €8 billion of investment in the real economy.

    European Commissioner for the Economy Paolo Gentiloni said: “This agreement marks another important step in Europe’s efforts to support the wind power manufacturing sector. Amid global uncertainty, the InvestEU programme is mobilising crucial investments where they are most needed. With €8 billion in investments flowing into the real economy, we are reinforcing our commitment to achieving the climate neutrality and energy independence, while contributing to economic growth and job creation.”

    Intesa Sanpaolo’s IMI Corporate and Investment Banking Division will use the EIB funds to provide bank guarantees on advances received and plant performance to wind energy producers.

    Mauro Micillo, Chief of Intesa Sanpaolo’s IMI Corporate & Investment Banking Division, commented: “The energy transition requires huge investments and virtuous collaboration between public and private sectors. In this context, the development of renewable energy is one of the fundamental objectives of strategies at national and European level. Thanks to its many years of collaboration with the EIB, the IMI CIB Division has developed an innovative tool aimed at supporting large international groups active in interconnection infrastructures with electricity grids, allowing the start of strategic works at a European level. The recently concluded transactions confirm our support for the entire wind energy supply chain and for ESG goals, in collaboration with our clients and European institutions. The Intesa Sanpaolo Group thus confirms its dual role as a driver of innovation and support of the productive and entrepreneurial companies for sustainable economic development”.

    Commissioner for Energy Kadri Simson said: “Ensuring that the European wind manufacturing sector remains a strong power player is key to achieve our clean energy and climate goals and keep our industry competitive. I welcome this further initiative of the EIB with Intesa Sanpaolo. It will help deliver our European Wind Power Package by unlocking investments in this crucial sector for the green transition.”

    Background information

    The European Investment Bank (EIB) is the long-term lending institution of the European Union owned by its Member States. It provides long-term financing for sound investments that contribute to EU policy. The Bank finances projects in four priority areas: infrastructure, innovation, climate and environment, and small and medium-sized enterprises (SMEs). Between 2019 and 2023, the EIB Group provided €58 billion in financing for projects in Italy.

    The InvestEU programme provides the European Union with long-term funding by leveraging substantial private and public funds in support of a sustainable recovery. It also helps to crowd in private investment for the European Union’s strategic priorities such as the European Green Deal and the digital transition. InvestEU brings all EU financial instruments previously available for supporting investments within the European Union together under one roof, making funding for investment projects in Europe simpler, more efficient and more flexible. The programme consists of three components: the InvestEU Fund, the InvestEU Advisory Hub, and the InvestEU Portal. The InvestEU Fund is deployed through implementing partners that will invest in projects using the EU budget guarantee of €26.2 billion. The entire budget guarantee will back the investment projects of the implementing partners, increase their risk-bearing capacity and thus mobilise at least €372 billion in additional investment.

    Intesa Sanpaolo, with over €422 billion in loans and €1.35 trillion in customer financial assets at the end of June 2024, is the largest banking group in Italy, with a significant international presence. It is a European leader in wealth management, with a strong focus on digital and fintech. In the environmental, social and governance domain, it plans to make €115 billion in impact contributions to the community and green transition by 2025. Its programme to support people in need totals €1.5 billion (2023-2027). Intesa Sanpaolo’s Gallerie d’Italia museum network is an exhibition venue for its artistic heritage collection and cultural projects of recognised value.

    Smart Europe
    Wind Generator Turbines on Sunset – Green Renewable Energy
    Photographer: maxpro
    ©Shutterstock
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    MIL OSI Europe News –

  • MIL-OSI Europe: Italy: EIB and Intesa Sanpaolo announce agreement to stimulate up to €8 billion investment in the wind industry

    Source: European Investment Bank

    ©maxpro/ Shutterstock

    • The operation includes a €500 million EIB counter-guarantee enabling Intesa Sanpaolo to create a portfolio of bank guarantees of up to €1 billion, expected to unlock €8 billion of investment in the real economy.
    • The agreement is part of the EIB’s €5 billion wind power package to boost Europe’s wind power manufacturing sector.
    • The operation is backed by InvestEU, the EU programme aiming to mobilise investment of more than €372 billion by 2027.

    The European Investment Bank (EIB) and Intesa Sanpaolo have agreed on a new initiative with the potential to unlock investment of up to €8 billion for the European wind industry. It forms part of the EIB’s €5 billion wind power package, an investment plan announced by the EU bank at COP28 in Dubai and activated in July, and it is the first agreement under this package supported by InvestEU. It follows a similar initiative between the EIB and Germany-based Deutsche Bank AG. The EIB wind-focused programme aims to support the production of 32 GW of the 117 GW of wind capacity needed to enable the European Union to meet its goal of generating at least 45% of its energy from renewable sources by 2030. It is a key element of the European Wind Power Package, in particular its Action Plan, presented by the European Commission in October 2023.

    In concrete terms, the EIB will provide a €500 million counter-guarantee to Intesa Sanpaolo, enabling the Italian bank to create a portfolio of bank guarantees of up to €1 billion. These will back the supply chain and power grid interconnection for new wind farms projects across the European Union. The leverage effect of the EIB counter-guarantee is expected to mobilise additional funding from other investors to support increasing production and accelerating wind energy development, helping to stimulate an estimated €8 billion of investment in the real economy.

    “Wind energy is central to European energy independence,” said EIB Vice-President Gelsomina Vigliotti. “Producers are facing challenges such as high costs, uncertain demand, slow permitting, supply chain bottlenecks and strong international competition. This agreement shows how the EIB’s risk-sharing instruments help overcome these difficulties and finance key projects for the green transition and the decarbonisation of the European economy, while enhancing industrial competitiveness.”

    Mauro Micillo, Chief of Intesa Sanpaolo’s IMI Corporate & Investment Banking Division, commented: “The energy transition requires significant investments and a virtuous collaboration between public and private stakeholders. In this context, the development of renewable energies is one of the key objectives of the green strategies at national and European level. Thanks to many years of collaboration with the EIB, the IMI CIB Division of Intesa Sanpaolo has developed innovative instruments aimed at supporting large international groups’ infrastructure investments, including interconnections and electricity grids, enabling strategic sustainable projects in Europe. The recent transactions enhance our support for the entire wind energy supply chain, with a focus on ESG goals, in collaboration with our clients and the European institutions. The Intesa Sanpaolo Group thus confirms its role as a driver of innovation and its support to corporates and institutions for a sustainable economic development.”

    European Commissioner for the Economy Paolo Gentiloni said: “This agreement marks another important step in Europe’s efforts to support the wind power manufacturing sector. Amid global uncertainty, the InvestEU programme is mobilising crucial investments where they are most needed. With €8 billion in investments flowing into the real economy, we are reinforcing our commitment to achieving the climate neutrality and energy independence, while contributing to economic growth and job creation.”

    Commissioner for Energy Kadri Simson said: “Ensuring that the European wind manufacturing sector remains a strong power player is key to achieve our clean energy and climate goals and keep our industry competitive. I welcome this further initiative of the EIB with Intesa Sanpaolo. It will help deliver our European Wind Power Package by unlocking investments in this crucial sector for the green transition.”

    Background information

    The European Investment Bank (EIB) is the long-term lending institution of the European Union owned by its Member States. It provides long-term financing for sound investments that contribute to EU policy. The Bank finances projects in four priority areas: infrastructure, innovation, climate and environment, and small and medium-sized enterprises (SMEs). Between 2019 and 2023, the EIB Group provided €58 billion in financing for projects in Italy.

    The InvestEU programme provides the European Union with long-term funding by leveraging substantial private and public funds in support of a sustainable recovery. It also helps to crowd in private investment for the European Union’s strategic priorities such as the European Green Deal and the digital transition. InvestEU brings all EU financial instruments previously available for supporting investments within the European Union together under one roof, making funding for investment projects in Europe simpler, more efficient and more flexible. The programme consists of three components: the InvestEU Fund, the InvestEU Advisory Hub, and the InvestEU Portal. The InvestEU Fund is deployed through implementing partners that will invest in projects using the EU budget guarantee of €26.2 billion. The entire budget guarantee will back the investment projects of the implementing partners, increase their risk-bearing capacity and thus mobilise at least €372 billion in additional investment.

    The European Commission presented the European Wind Power Package in October 2023 to tackle the unique set of challenges faced by the wind sector, including insufficient and uncertain demand, slow and complex permitting, lack of access to raw materials and high inflation and commodity prices, among others. In a specific Action Plan, the Commission set out a set of initiatives concerning permitting, auction design, skills and access to finance to ensure that the clean energy transition goes hand-in-hand with industrial competitiveness and that wind power continues to be a European success story. As part of this plan, in July 2024, the European Investment Bank (EIB) activated a €5 billion initiative to support manufacturers of wind-energy equipment in Europe.

    Intesa Sanpaolo, with over €422 billion in loans and €1.35 trillion in customer financial assets at the end of June 2024, is the largest banking group in Italy, with a significant international presence. It is a European leader in wealth management, with a strong focus on digital and fintech. In the environmental, social and governance domain, it plans to make €115 billion in impact contributions to the community and green transition by 2025. Its programme to support people in need totals €1.5 billion (2023-2027). Intesa Sanpaolo’s Gallerie d’Italia museum network is an exhibition venue for its artistic heritage collection and cultural projects of recognised value. Intesa Sanpaolo’s IMI Corporate and Investment Banking Division will use the EIB funds to provide bank guarantees on advances received and plant performance to wind energy producers. The EIB has signed agreements totalling almost €5 billion with Intesa Sanpaolo over the last five years.

    Smart Europe
    Wind Generator Turbines on Sunset – Green Renewable Energy
    Photographer: maxpro
    ©Shutterstock
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    European Commission logo
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    MIL OSI Europe News –

  • MIL-OSI Europe: Answer to a written question – Spain’s failure to comply with the 2019 directive on work-life balance – P-001637/2024(ASW)

    Source: European Parliament

    On 16 November 2023, the Commission decided to refer Spain to the Court of Justice of the European Union (with Belgium and Ireland) for failing to notify national measures fully transposing EU rights on Work-life Balance for parents and carers .

    Therefore, the case is now before the Court of Justice of the EU (the Court). Since the cases concern the failure to notify transposition measures of a legislative directive, the Commission asked the Court to impose financial sanctions on those Member States[1]. The final amount of the sanctions will be decided by the Court.

    The Commission as guardian of the Treaties monitors the application of EU law in Member States and may open other infringement procedures where necessary.

    The above-mentioned case concerns non-communication of the national measures transposing the directive into national law. Once the transposition is completed, the Commission will check the compliance of the said national measures with the directive; if it considers that the Member State’s legislation doesn’t comply with the requirements of the directive, the Commission may open new infringement proceedings.

    • [1] https://ec.europa.eu/commission/presscorner/detail/en/ip_23_5372
    Last updated: 10 October 2024

    MIL OSI Europe News –

  • MIL-OSI Europe: Netherlands: Dutch Life Science Tools LUMICKS secures €20 million from EIB to accelerate drug discovery for cancer.

    Source: European Investment Bank

    EIB

    • Amsterdam-based LUMICKS signs €20 million venture debt with EIB to accelerate the development and launch of its new product, designed to advance immunotherapy development for cancer research.
    • LUMICKS’ next generation high-throughput cell avidity platform aims to transform the drug discovery process by replacing traditional screening methods, expediting development for life-saving treatments, and improving reliability in the drug discovery process.
    • The investment is backed by the European Commission through the InvestEU initiative, which seeks to foster innovation projects and job creation across Europe.

    The European Investment Bank (EIB) and LUMICKS have signed a €20 million venture debt agreement to accelerate the launch of its next generation, high throughput cell avidity platform. The financing is supported by the European Commission under the InvestEU initiative.

    LUMICKS’ Cell Avidity technology is transforming the discovery process in cancer immunotherapy by addressing a critical challenge: the lack of tools to directly measure the binding interaction of immune cells, such as CAR-T cells, with cancer cells. This limitation creates uncertainties in the preclinical funnel and slows therapy development. By providing high-throughput measurement of such interactions, LUMICKS’ empowers researchers to optimize therapies faster and with greater accuracy, with the goal of improving success rates in clinical trials.

    “The Netherlands is home to a vibrant Life Sciences industry and the EIB has been proudly supporting this sector to ensure it continues to lead in medical innovation and transformative healthcare solutions.” stated EIB vice president Robert de Groot. “The new financing to LUMICKS is a testament of this. With the backing of InvestEU, the EIB can provide LUMICKS with stable long-term funding matching the highly innovative profile of the Company and tailored to its current needs for continued growth, market expansion, and development of its technologies.”

    “This investment from the EIB enables us to accelerate our R&D timeline, ensuring we continue innovating to deliver a long-lasting impact in the immunotherapy space” stated LUMICKS CEO Hugo de Wit. “By providing deeper insights into cellular interactions, our instruments empower researchers to make faster, better-informed decisions, with the goal of improving success rates in clinical trials and accelerating the development of effective therapies.”

    LUMICKS, founded in 2014, employs 170 people globally and has a proven track record of developing and commercializing cutting-edge life science tools. Widely adopted by top universities and research institutions worldwide, LUMICKS’ technologies have contributed to numerous publications in top journals across fields such as oncology and immunotherapy.

    Background information:

    The European Investment Bank (EIB) is the long-term lending institution of the European Union, owned by its Member States. It makes long-term finance available for sound investment in order to contribute towards EU policy goals. Over the last ten years, the EIB has made available more than €27 billion in financing for Dutch projects in various sectors, including research & development, transport, drinking water, healthcare and SMEs.

    The EIB is the European Union’s bank; the only bank owned by and representing the interests of the European Union Member States, The Netherlands owns a 5,2% share of the EIB. It works closely with other EU institutions to implement EU policy and is the world’s largest multilateral borrower and lender. The EIB provides finance and expertise for sustainable investment projects that contribute to EU policy objectives. More than 90% of its activity is in Europe.

    The InvestEU programme provides the European Union with crucial long-term funding by leveraging substantial private and public funds in support of a sustainable recovery. It also helps mobilise private investment for EU policy priorities, such as the European Green Deal and the digital transition. InvestEU brings together under one roof the multitude of EU financial instruments previously available to support investment in the European Union, making funding for investment projects in Europe simpler, more efficient and more flexible. The programme consists of three components: the InvestEU Fund, the InvestEU Advisory Hub and the InvestEU Portal. The InvestEU Fund is deployed through implementing partners who will invest in projects using the EU budget guarantee of €26.2 billion. The entire budget guarantee will back the investment projects of the implementing partners, increase their risk-bearing capacity and thus mobilise at least €372 billion in additional investment.

    LUMICKS is a pioneering life science tools company dedicated to accelerating drug discovery in cancer research and advancing the understanding of fundamental biological mechanisms at the molecular and cellular levels. Our innovative technologies empower researchers to reveal crucial insights into the biological complexity of health and disease, driving the development of next-generation therapies and accelerating immunotherapy breakthroughs.

    Mission:

    We empower academic and pharmaceutical communities with cutting-edge technologies to deeply understand the mechanisms of life and disease, driving the discovery and development of life-saving therapies.

    Vision:

    By 2027, more than 250 world-leading researchers developing therapies and understanding biological mechanisms will use cell avidity and single-molecule data to develop cures that will impact more than 1 million lives.

    Lumicks (IEU LS)
    Dutch Life Science Tools LUMICKS secures €20 million from EIB to accelerate drug discovery for cancer.
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    Lumicks (IEU LS)
    Dutch Life Science Tools LUMICKS secures €20 million from EIB to accelerate drug discovery for cancer.
    ©EIB
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    Lumicks (IEU LS)
    Dutch Life Science Tools LUMICKS secures €20 million from EIB to accelerate drug discovery for cancer.
    ©EIB
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    MIL OSI Europe News –

  • MIL-OSI Europe: Written question – Cohesion Policy as a tool to influence regional elections in the EU – P-001882/2024

    Source: European Parliament

    Priority question for written answer  P-001882/2024/rev.1
    to the Commission
    Rule 144
    Irmhild Boßdorf (ESN)

    In the current programming period (2021-2027), around EUR 373 billion has been earmarked for EU Cohesion Policy.

    When I asked at the REGI Committee meeting on 9 September 2024 what tangible results EU Cohesion Policy had brought, Commissioner Ferreira was vague in her response. The main point she made in her comments was that Cohesion Policy had a direct influence on elections in beneficiary regions – more specifically, it tended to bring down the anti-EU vote.

    According to an April 2024 study by the Kiel Institute for the World Economy entitled ‘Paying off Populism: EU-Regionalpolitik verringert Unterstützung populistischer Parteien’ [‘EU regional policy reduces support for populist parties’], targeted EU regional policy measures and investments have the power to shave 2-3 % off the right-wing populists’ share of the vote[1].

    • 1.Is EU Cohesion Policy being used to target projects in regions in which anti-EU or patriotic parties are polling better than average?
    • 2.In the current programming period, are projects which seek to steer or push things in a specific pro-European political direction being financed by EU Cohesion Policy?

    Submitted: 30.9.2024

    • [1] https://www.ifw-kiel.de/fileadmin/Dateiverwaltung/IfW-Publications/fis-import/f16df84e-a721-422e-a087-de3d56c8473e-KPB_172_dt_0804_V3.pdf
    Last updated: 10 October 2024

    MIL OSI Europe News –

  • MIL-OSI Europe: Colombia: EIB Global provides Enel Colombia with $300 million loan for renewable energy generation and power grid improvements

    Source: European Investment Bank

    • The facility finances solar photovoltaic (PV) plants totalling approximately 486 MW of capacity, and the improvement and expansion of the Enel Colombia distribution business.
    • The loan is in Colombian pesos and with the help of a synthetic product neutralises exchange rate risks.
    • The loan is the first of its kind to be issued by the EIB in favour of an Enel Group subsidiary.

    The European Investment Bank (EIB), in partnership with Enel and SACE, the Italian Export Credit Agency, has provided Enel Group subsidiary Enel Colombia with a loan in the local currency, for a maximum amount in Colombian pesos equivalent to $300 million, which through a synthetic product neutralises the exchange rate risk. The loan is backed by a SACE guarantee. Through this facility, aimed at financing the development of power grids and renewable energy generation in Colombia, the EIB, Enel and SACE have joined forces to support the energy transition in the country and mitigate the effects of climate change.

    This agreement is in line with the EU Commission’s Global Gateway Investment Agenda, and it is the first EIB framework loan exclusively dedicated to financing Enel Colombia’s sustainable development, as well as being the first EIB synthetic product with an Enel Group subsidiary.

    Specifically, the facility will finance the solar PV plants Guayepo I and II, totalling approximately 486 MW of capacity, and the improvement and expansion of the Enel Colombia distribution business, which serves more than 3.7 million customers in Bogota, boosting resilience as well as enabling new connections and e-mobility, in line with the Bogotá Region 2030 project.

    The agreement builds upon the EIB’s longstanding successful collaboration with Enel and SACE in Latin America which has already granted a multi-country, multi-business and multi-currency facility of up to $900 million in Latin America to Enel Group’s subsidiaries in the area.

    “This project, in line with the Global Gateway Investment Agenda, contributes to reducing the infrastructure gap between wealthier and less developed regions of Colombia and increases the participation of renewable energy in the power matrix of the country by incorporating additional solar energy generation capacity. I welcome the opportunity to continue the fruitful cooperation with the Enel Group, which has a longstanding and successful relationship with the EIB and is one of its largest borrowers, and SACE, with whom the EIB also has an extensive relationship in supporting projects inside and outside the European Union,” said EIB Vice-President Ioannis Tsakiris.

    “The agreement with the EIB and SACE is a virtuous example of synergies between the public and private sector and confirms our sustainability commitment,” said Enel CFO Stefano De Angelis. “This partnership adds further value to our business projects through a development strategy focused on renewables and grids, while contributing to accelerate the energy transition as well as the achievement of Sustainable Development Goals (SDGs), in line with our Group’s Strategic Plan, the Paris Agreement and the UN 2030 Agenda.”

    “We are pleased to be part of this high-impact transaction, which testifies to our long-lasting partnership with Enel and the EIB and our strategic vision of long-term growth. Latin America and Colombia represent a significant opportunity for both the energy transition and the Italian technologies that can support it. Our team in Bogotá, where we have inaugurated our office in recent days, will continue to play a vital role for these projects,” stated Valerio Perinelli, Chief Business Officer at SACE.    

    Background information

    About the EIB

    The European Investment Bank is the long-term lending institution of the European Union owned by its Member States. It makes long-term finance available for sound investment in order to contribute towards EU policy goals. The EIB brings the experience and expertise of in-house engineers and economists to help develop and appraise top quality projects. As an AAA-rated, policy-driven EU financial institution, the EIB offers attractive financial terms – loans at competitive interest rates and with durations aligned with the projects it finances. Through our partnerships with the European Union and other donors, we can provide grants to further improve the development impact of the projects we support.

    About EIB Global in Latin America

    EIB Global has been providing economic support for projects in Latin America since 2022, facilitating long-term investment with favourable conditions and offering the technical support needed to ensure that these projects deliver positive social, economic and environmental results. Since the EIB began operating in Latin America in 1993, it has provided total financing of around €14 billion to support more than 160 projects in 15 countries in the region.

    About the Global Gateway initiative

    EIB Global is a key partner in the implementation of the European Union’s Global Gateway initiative, supporting sound projects that improve global and regional connectivity in the digital, climate, transport, health, energy and education sectors. Investing in connectivity is at the very heart of what EIB Global does, building on the Bank’s 65 years of experience in this domain. Alongside our partners, fellow EU institutions and Member States, we aim to support €100 billion of investment (around one-third of the overall envelope of the initiative) by the end of 2027, including in Colombia and Latin America.

    About SACE

    SACE is the Italian financial insurance company specialised in supporting the growth and development of businesses and the national economy through a wide range of tools and solutions to improve competitiveness in Italy and worldwide. For over 40 years, SACE has been the partner of reference for Italian companies exporting to and expanding in foreign markets. SACE also cooperates with the banking system, providing financial guarantees to facilitate companies’ access to credit. This role has been reinforced by the extraordinary measures introduced by the so-called Liquidity Decree and by the Simplifications Decree. With a portfolio of insured transactions and guaranteed investments totalling €156 billion, SACE serves over 26 000 companies, especially small and medium businesses (SMEs), supporting their growth in Italy and in around 200 foreign markets, with a diversified range of insurance and financial products and services.

    About Enel

    Enel is a multinational power company and a leading integrated player in the global power and renewables markets. At global level, it is the largest renewable private player, the foremost electricity distribution network player by number of grid customers served and the biggest retail operator by customer base. The Enel Group is the largest European utility by ordinary EBITDA[1]. Enel is present in 28 countries worldwide, producing energy with more than 88 GW of total capacity. Enel Grids, the Group’s global business line dedicated to the management of the electricity distribution service worldwide, delivers electricity through a network of 1.9 million kilometres with 69 million end users. Enel’s renewables arm Enel Green Power has a total capacity of around 64 GW and a generation mix that includes wind, solar, geothermal and hydroelectric power, as well as energy storage facilities installed in Europe, the Americas, Africa, Asia and Oceania. Enel X Global Retail is the Group’s business line dedicated to customers around the world, with the aim of effectively providing products and services based on their energy needs and encouraging them towards a more conscious and sustainable use of energy. Globally, it provides electricity and integrated energy services to around 58 million customers worldwide, offering flexibility services aggregating 9 GW, managing around 3 million lighting points, and with 27 300 owned public charging points for electric mobility.

     [1] Enel’s leadership in the different categories is defined by comparison with competitors’ FY2023 data. Fully state-owned operators are not included. 

    MIL OSI Europe News –

  • MIL-OSI Europe: Answer to a written question – Cooperation between the EU and Algeria in the area of migration – P-001621/2024(ASW)

    Source: European Parliament

    The general framework for the partnership between the EU and Algeria is set out in the Association Agreement[1] signed in 2002, which covers a large number of cooperation sectors.

    The EU has not concluded any agreement with Algeria on the readmission of Algerian nationals in irregular situation in the EU territory nor on the management of irregular migration from third countries.

    The EU and Algeria have agreed to cooperate to support the assisted voluntary return and reintegration in their countries of origin of migrants stranded in Algeria through a programme implemented by the International Organisation for Migration.

    Algeria has not sent a request to the Commission to support/finance projects aimed at securing the border with Tunisia and there are no ongoing discussions/reflection on this subject.

    • [1] https://eur-lex.europa.eu/legal-content/EN/TXT/?uri=CELEX%3A22005A1010%2801%29
    Last updated: 10 October 2024

    MIL OSI Europe News –

  • MIL-OSI USA: Wyden, Merkley, Salinas Announce $2 Million Federal Investment to Oregon Small Businesses to Lower Energy Costs

    US Senate News:

    Source: United States Senator Ron Wyden (D-Ore)
    October 10, 2024
    Seven small businesses in Marion and Jefferson counties to benefit
    Washington D.C.—U.S. Senators Ron Wyden and Jeff Merkley with U.S. Representative Andrea Salinas today announced a federal investment of more than $2 million to help lower energy costs for farmers and small businesses in Marion and Jefferson counties while reducing carbon emissions.
    “Rural Oregonians are often on the frontlines of the fight against the climate crisis, whether that is combating wildfires, drought, or other extreme weather events caused by climate change,” Wyden said. “I applaud this federal investment that addresses this issue by supporting small Oregon businesses investing in becoming more climate resilient and reducing carbon emissions.”
    “Oregon’s small farms, ranches, and businesses know that leaning into renewable energy sources can help them significantly lower their energy costs, increase profits, and improve sustainability over the long run,” said Merkley, who prioritized REAP funding when he previously served as the top Democrat on the Appropriations subcommittee that writes the agriculture funding bill. “Too often, the upfront costs of making that switch often leave rural businesses stuck with outdated energy infrastructure and higher monthly bills. This federal funding from REAP is critical to help rural Oregon businesses in Jefferson and Marion counties overcome financial hurdles and realize energy-efficient projects that are good for both their pocketbook and the planet.”  
    “I am proud to announce that five more rural businesses in Oregon’s Sixth District have been selected for USDA’s REAP program,” said Rep. Salinas. “Federal partnership—when combined with the relentless work ethic and ingenuity of rural Oregonians—can be an incredible resource for our local farmers and small businesses. This funding will allow awardees to switch to renewable energy, helping them save money on utility bills while transitioning to clean energy. That’s a win-win for both our economy and our climate.”
    The $2.08 million federal investment is through the U.S. Department of Agriculture’s Rural Energy for America program, and will be distributed as follows:
    Hanson Pacific, Inc. – Aurora: $99,444
    Barnett Farms and Nursery – Aurora: $30,943
    Champoeg Nursery, Inc. – Aurora: $43,889
    Oregon Flowers Inc. – Aurora: $697,824
    Blazer Industries, Inc. – Aumsville: $345,627
    Hari Nursery – Salem: $45,663
    Haystack Farm & Feed, Inc. – Culver: $822,360

    MIL OSI USA News –

  • MIL-OSI Asia-Pac: Speech by DSJ at Spanish National Day Reception in Hong Kong (English only) (with photos)

    Source: Hong Kong Government special administrative region

         Following is the speech by the Deputy Secretary for Justice, Mr Cheung Kwok-kwan, at the Spanish National Day Reception in Hong Kong today (October 10):
     
    Consul General (Consul General of Spain in Hong Kong, Mr Miguel Aguirre de Cárcer), Deputy Commissioner Fang Jianming (Deputy Commissioner of the Office of the Commissioner of the Ministry of Foreign Affairs of the People’s Republic of China in the Hong Kong Special Administrative Region), distinguished guests, ladies and gentlemen,
     
         Good evening. I’m delighted to be here tonight to celebrate the national day of Spain. This is a proud and festive occasion throughout Spain, one of the major economies in the European Union.
     
         A celebration, too, of the growing ties between our two economies.
     
         Less than three weeks ago, the Financial Secretary visited Madrid, leading a high-profile delegation of Hong Kong start-up companies, together with the heads of Hong Kong Science Park and Cyberport.
     
         Over three fruitful days, the Financial Secretary and his delegation visited a variety of Spanish start-ups, investors and corporate representatives, such as start-up accelerators IMPACT and Wayra, and Spanish telecommunications company Telefónica, and met with the Director General of CDTI (the Centro para el Desarrollo Tecnológico y la Innovación), which promotes I&T (innovation and technology) co-operation between Spain and other economies.
     
         They also met with Spain Startup President and officials from IE University, the organisers of the renowned innovation and entrepreneurship event South Summit, which brings together a world of start-ups, investors, and entrepreneurs each year. The Financial Secretary welcomed the prospect of holding the South Summit in Hong Kong, and for good reasons.
     
         Asia’s super-connector, Hong Kong is at the heart of the Guangdong-Hong Kong-Macao Greater Bay Area and its consumer-powered population of more than 80 million people. Technology and innovation will drive the flourishing future of both Hong Kong and the Greater Bay Area.
     
         Hong Kong is also among the world’s leading financial centres – placing third worldwide and topping the Asia-Pacific in the latest Global Financial Centres Index. Also, in the World Bank Group Business Ready 2024 Report which was just published last week, Hong Kong is among the top ten performers among 50 economies covered in that report. 
     
         We are familiar with the common law and we have connection with the Mainland legal system through a number of very important mutual legal assistance arrangements. Hong Kong is also a unique gateway. We can help Spanish start-ups find markets, and fund their expansion in the Mainland China and throughout Asia.
     
         Our legal co-operation with Spain is also well-established. I’m pleased to say that there has been well-established regimes for legal co-operation on mutual legal assistance in criminal matters, and the co-operation has been smooth and effective.
     
         Our good ties extend to culture and culinary creativity, too. This year’s Hong Kong Wine & Dine Festival opens in less than two weeks at Central Harbourfont. And I know Hong Kong will revel in the Festival’s Spanish gourmet delights and featured wine and spirit tastings. They will surely be among the highlights of this year’s Wine & Dine Festival. I’ll see you there.
     
         And now, ladies and gentlemen, please join me in a toast: to the people of Spain.      

    MIL OSI Asia Pacific News –

  • MIL-OSI Security: Resident of New Hampshire Sentenced for Involvement in Online Scheme to Defraud the Elderly

    Source: Federal Bureau of Investigation (FBI) State Crime News

    ALEXANDRIA, La. – United States Attorney Brandon B. Brown announced that Raj Vinodchandra Patel, 34, of New Hampshire, has been sentenced by United States District Judge Dee D. Drell to 51 months in prison for his role in an online scheme to defraud the elderly.  On June 20, 2024, Patel pleaded guilty to one count indictment charging him with conspiracy to commit wire fraud.  

    Sometime in September 2023, an elderly resident in Alexandria, Louisiana, saw a “pop-up” message on their computer screen which directed them to call a computer “helpline.” This alleged computer helpline was merely a contact number being operated by one of Patel’s co-conspirators from India. When the victim called this supposed helpline, they were told that criminal activity had been seen on their computer and then transferred them to an alleged special agent working for the Federal Trade Commission in Washington, D.C. who would assist them further. However, the victim was not actually communicating with a federal agent but in truth and in fact, it was another of Patel’s co-conspirators operating from India. This fake federal agent falsely claimed that the victim’s Social Security number had been compromised, and that their monetary assets were at risk and that the only way to fix it would be for the victim to liquidate their bank account, buy gold bullion, and then transfer that gold bullion to another federal agent who would maintain the gold for supposed safe keeping until the “federal investigation” was completed. When in truth and in fact, there was no federal investigation, but this was an online scam to steal money and property from the victim. 

    Patel worked as a courier in this wire fraud scheme. On October 7, 2023, he flew from Boston to New Orleans, rented a car, and drove to the victim’s residence to retrieve the gold bullion. The victim had been instructed by Patel’s co-conspirator in India to place the gold bullion into the backseat of Patel’s rental car. Unbeknownst to Patel, however, the victim had contacted the Federal Bureau of Investigation (“FBI”) about the fraud scheme. The FBI set up a sting operation and video recorded Patel retrieving the package from the victim and driving away.

    Troopers with the Louisiana State Police stopped Patel and he was placed under arrest. Following his arrest, Patel admitted to his part in this scheme and that he had flown to other places across the United States for gold pickups from other elderly victims. Patel further admitted that as he was being stopped by law enforcement officers, he deleted the “WhatsApp Business” application from his cell phone in order to conceal his communications with co-conspirators. The intended loss amount attributed to this fraud scheme was approximately $514,000.

    “There is a keen federal interest to protect the elderly and prosecute those who take advantage of their vulnerability by using them to commit financial crimes,” said United States Attorney Brandon B. Brown. “This is a transnational crime, spanning from India to central Louisiana, that was investigated because the victim trusted his/her instincts and immediately contacted law enforcement. The Department of Justice is ready, willing, and able to seek justice for the elderly, who are the backbone of our country.”

    “Victims in Louisiana lost nearly $12 million dollars to schemes just like this one last year and those are the people we know about,” said Special Agent in Charge Lyonel Myrthil of FBI New Orleans. “The victim in this case did exactly as we ask the public to do. Trust your instincts. Take a break and call law enforcement. These actors are getting bolder and potential victims are putting their lives at risk with these encounters. We ask the public to report any suspicious activity like this to IC3.gov or by calling 1-800-CALL-FBI.”

    The case was investigated by the Federal Bureau of Investigation and Louisiana State Police and prosecuted by Assistant United States Attorney Mike Shannon.

    To report elder fraud, contact the dedicated National Elder Fraud Hotline at 1-833-FRAUD-11 or 1-833-372-8311 and visit the FBI’s IC3 Elder Fraud Complaint Center at IC3.gov.  To learn more about the Department of Justice’s elder justice efforts please visit the Elder Justice Initiative page.

    # # #

     

    MIL Security OSI –

  • MIL-OSI Security: Formerly Married Couple Sentenced for Multimillion Dollar Fraud Schemes

    Source: Federal Bureau of Investigation (FBI) State Crime Alerts (b)

    Orlando, FL – United States District Judge Paul G. Byron has sentenced Nikesh Ajay Patel (40, formerly of Windermere), and his ex-wife, Trisha Patel, (41, Orlando), for their roles in a financial scheme defrauding the U.S. Department of Agriculture (USDA) and others. On October 8, 2024, Nikesh Patel was sentenced to 27 years in federal prison, which must run consecutive to a 25-year term he is already serving from the Northern District of Illinois. Trisha Patel was sentenced on September 18, 2024, to 51 months in federal prison. Both are required to pay restitution to the USDA and four other financial institutions.

    According to court documents, Nikesh Patel was charged in 2014 by the U.S. Attorney’s Office in the Northern District of Illinois for a $179 million fraud scheme. He was arrested and released on bond. For the next several years, Nikesh Patel claimed that he was cooperating with authorities and using his business skills to recover funds to repay the victims. In fact, Nikesh Patel had devised a new scheme against the USDA that netted him over $19 million. Nikesh Patel was planning to flee to Ecuador on a private jet and avoid sentencing in the Chicago case. Instead, FBI agents arrested Nikesh Patel at the Kissimmee airport on January 6, 2018, and arrested him for attempting to abscond. Nikesh Patel was subsequently returned to Chicago, where he was sentenced to 25 years in federal prison on June 6, 2018.

    Thereafter, on December 18, 2019, a federal grand jury in Orlando returned a 13-count indictment against Nikesh Patel for stealing $19 million while he was on federal pretrial release in the Chicago case. On February 28, 2023, Patel pleaded guilty as charged to all counts in that indictment: one count of conspiracy to commit wire fraud, three counts of wire fraud, one count of conspiracy to commit money laundering, and eight counts of money laundering.

    In the 2019 case, Nikesh Patel fabricated fraudulent loan documents and used a fictitious identity to perpetrate his conspiracy and scheme. He then applied to the USDA to guarantee the fake loans as part of their Business and Industry Guaranteed Loan Program. Once the USDA agreed to guarantee the loans, Nikesh Patel sold the guaranteed portion to the Federal Agricultural Mortgage Corporation (Farmer Mac) and received $19,342,392. The FBI was able to recover $11,321,931 and Nikesh Patel was ordered to pay the remaining portion as restitution to Farmer Mac.

    While Nikesh Patel was in federal custody for the 2019 case, he recruited Trisha Patel (his wife at the time) to perpetrate a third financial scheme. Between January 2021 and December 2023, Nikesh and Trisha Patel devised a more sophisticated scheme utilizing a commercial pump manufacturer in Houston, Texas. At the direction of Nikesh Patel, Trisha pretended to be a senior representative of the company and falsely claimed to USDA that they wanted to expand their business in rural Puerto Rico. The Patels then created a fake lender to pretend that it was loaning $8,540,000 to the business for the expansion. USDA guaranteed 80% of the fake loan, and the Patels then sold that guarantee to financial institutions and received $7,446,880. The FBI was able to recover $74,545 in currency and a 2022 BMW model X7. The defendants were ordered to pay the remaining portion to USDA and four other financial institutions as restitution.

    For the third scheme, Trisha Patel and Nikesh Patel each pleaded guilty to an Information charging one count of conspiracy to commit wire fraud on May 21, 2024, and May 22, 2024, respectively.

    These cases were investigated by the Federal Bureau of Investigation and the United States Department of Agriculture – Office of Inspector General. They were prosecuted by Assistant United States Attorney Michael P. Felicetta and United States Attorney Roger B. Handberg.

    MIL Security OSI –

  • MIL-OSI USA News: A Proclamation on General Pulaski Memorial Day,  2024

    Source: The White House

         Today, we pay tribute to General Casimir Pulaski, a Polish immigrant who served alongside American soldiers in the Revolutionary War and made the ultimate sacrifice for our Nation.  And we honor the culture and contributions of all our Nation’s Polish Americans who follow his legacy, standing up for the cause of freedom at home and around the world.

         General Pulaski dedicated his life to the pursuit of liberty — not just for himself or his country but for all of us.  Born and raised in Warsaw, Poland, he fought against the Russian domination of Poland — efforts that ultimately led him to flee his home country.  Later in life, when he was offered an opportunity to join another fight for liberty on the other side of the world, he took it — joining our Nation’s fight for independence.  General Pulaski’s service was critical:  He led a critical counterattack that helped slow the British, and during the course of the war, it was said that he even saved George Washington’s life. 

         General Pulaski’s story and service are just one example of how much Polish Americans have shaped our Nation’s history and our future.  Our country’s Polish-American communities have helped create new possibilities for all of us — leading in every sector, powering our economy, and enriching our culture.  They also strengthen our deep alliance and partnership with Poland and its people at a critical time in our history.  Since Russia’s brutal invasion of Ukraine, the people of Poland have courageously stood up for freedom, liberty, and justice, rallying around the Ukrainian people and offering them safety and light in their darkest moments.  At the same time, Poland has donated tanks, artillery, and aircraft to support Ukraine’s self-defense all while becoming an important hub for aid from key partners.

         No one knows better than the people of Poland that, in moments of great upheaval and uncertainty, what you stand for is important and who you stand with makes all the difference.  Today, we celebrate General Casimir Pulaski, who decided to stand with our Nation to fight for our freedoms.  And we honor all the Polish Americans, who continue to push our Nation forward and fight for a future based on our most fundamental values:  dignity, liberty, and opportunity.

         NOW, THEREFORE, I, JOSEPH R. BIDEN JR., President of the United States of America, by virtue of the authority vested in me by the Constitution and laws of the United States, do hereby proclaim October 11, 2024, as General Pulaski Memorial Day.  I encourage all Americans to commemorate this occasion with appropriate programs and activities paying tribute to General Casimir Pulaski, honoring all those who champion freedom around the world, and celebrating the vast contributions of the Polish American communities.

         IN WITNESS WHEREOF, I have hereunto set my hand this tenth day of October, in the year of our Lord two thousand twenty-four, and of the Independence of the United States of America the two hundred and forty-ninth.

                                 JOSEPH R. BIDEN JR.

    MIL OSI USA News –

  • MIL-OSI USA: Garamendi Delivers Remarks at San Francisco Fleet Week Senior Leaders Seminar

    Source: United States House of Representatives – Congressman John Garamendi – Representing California’s 3rd Congressional District

    SAN FRANCISCO, CA—Representative John Garamendi (D-CA-08), the top Democrat on the House Armed Services Subcommittee on Readiness, joined Secretary of the Navy Carlos Del Toro in addressing senior military leaders, industry experts, and international allies during the San Francisco Fleet Week Senior Leaders Seminar aboard the USS Tripoli.

    In his remarks titled “Reimagining the American Maritime Industry,” Garamendi emphasized workforce development, shipbuilding modernization, infrastructure investment, and the vital role that the Bay Area plays in strengthening the U.S. maritime industry. He also praised Secretary Del Toro’s focus on a whole-of-government approach to enhancing U.S. maritime capabilities. Garamendi outlined his “Congressional Guidance for a National Maritime Strategy,” co-led with Senators Mark Kelly (D-AZ) and Marco Rubio (R-FL) and Representative Waltz (R-FL-06), and discussed ongoing legislative efforts to bolster America’s maritime industries.

    “Reinvigorating the American maritime sector is not just a military imperative but an economic one. We must prioritize strategic investments that will drive innovation and keep our industry competitive on the global stage. The future of American shipbuilding and repair lies not only in technology but in the people who bring that technology to life,” said Garamendi.

    He also highlighted the Bay Area’s maritime legacy and its potential to lead the nation in green shipbuilding and port modernization. Citing Mare Island—the first U.S. Navy base on the West Coast—as an example, Garamendi highlighted how revitalizing legacy sites like Mare Island Shipyard with modern infrastructure and workforce development, position the San Francisco Bay Area as a cornerstone for revitalizing U.S. maritime strength.

    Garamendi stressed the importance of preparing the next generation of maritime workers, underscoring the need for strategic federal investments that will create high-paying jobs, strengthen local communities, and bolster national defense. 

    Garamendi has been a longtime advocate of reinvigorating the American maritime industry. Garamendi has led bipartisan efforts throughout his career to pass legislation supporting U.S. shipbuilding, maintaining a robust Ready Reserve Fleet, and enhancing ship repair capacity nationwide.

    He has supported key provisions in Congress, including:

    • 2023 Federal Ship Financing Improvement Act: 
      • This legislation aims to provide new federal loans and loan guarantees for repairs and retrofits of U.S.-flagged civilian vessels in domestic shipyards, like Mare Island Dry Dock.
    • Maritime Administration (MARAD) Funding Initiatives:
      • Garamendi has advocated for increased funding for MARAD programs that support shipbuilding and repair, including Title XI loan guarantees. In 2021, Garamendi secured a provision in federal law designating the California State University Maritime Academy (Cal Maritime) as national center of excellence for domestic maritime workforce training and education, ensuring closer cooperation and sharing of resources with the Maritime Administration (MARAD).
    • Sustained Funding for the National Defense Reserve Fleet:
      • In 2024, Garamendi secured funds to support the National Defense Reserve Fleet and the Maritime Security Program, U.S.-flagged commercial vessels used to transport military personnel, cargo, fuel, and equipment for the U.S. military in the National Defense Authorization Act.
    • National Maritime Strategy:
    • Support for the Jones Act:
      • Garamendi has worked to ensure that domestic maritime commerce is conducted by U.S.-flagged vessels, preserving jobs in the American maritime industry. He reintroduced the “Close Agency Loopholes to the Jones Act,” which would close nearly 50 years of loopholes that disadvantage American workers—known as “letter rulings”—by U.S. Customs and Border Protection. Specifically, these loopholes allow federal regulators to circumvent the Jones Act—a federal maritime law that requires transportation and items shipped between U.S. ports to be conducted on ships that are built and operated by American citizens or permanent residents.
    • Maritime Workforce Development Programs:
      • In 2022, Garamendi announced a $13 million investment at Mare Island Dry Dock that would double its workforce and help the shipyard prepare to conduct ship repairs for the United States Navy and Coast Guard. In 2023, Garamendi secured $1 million for job training programs at a new Career Technical Education Centers in Contra Costa County. This will help young people throughout the Bay Area receive the highest possible industry-standard certifications to help them earn high-wage jobs in the skilled trades.
    • Environmental Standards for the Maritime Industry:
      • In the 2024 National Defense Authorization Act, Garamendi secured a provision that will minimize runoff of untreated water and designate a DoD official responsible for coordinating regional stormwater management among military departments.
      • Garamendi secured funding for portable battery-electric generators, like those manufactured in Richmond, to ensure that installations can continue operations in the event of a blackout or Public Safety Power Shutoff (PSPS). This builds on Garamendi’s efforts to ensure that the military supports a transition to a clean energy economy.
    • Public-Private Partnerships for Infrastructure:
      • Garamendi has encouraged the use of public-private partnerships (PPPs) to finance port and maritime infrastructure projects, reducing the financial burden on public entities.
    • Maritime Research and Development Initiatives:
      • Garamendi authorized more than $58 million for state maritime academies like California State University Maritime Academy (Cal Maritime) in Vallejo. Once enacted into law, this new federal funding will support scholarships for low-income students, funding for shoreside infrastructure, and funding for fuel and maintenance expenses.

    ###

    MIL OSI USA News –

  • MIL-OSI Canada: New sidewalk in Canning

    Source: Government of Canada News

    News release

    Canning, Nova Scotia, October 10, 2024 — Construction is beginning on a new sidewalk in the Village of Canning after an investment of more than $700,000 from the federal government.

    This new 630 metres of sidewalk will run along Summer Street between J Jordan Road and Chapel Road. The sidewalk will connect to other sidewalks in the village to create a safe route to the downtown core, a daycare, schools, a residential development, and recreation opportunities.

    Quotes

    “Our government is committed to investing in infrastructure that increases opportunities for Canadians to navigate their communities without relying on their cars, resulting in reduced greenhouse gas emissions and less traffic congestion. This new section of sidewalk in Canning will connect people to key services in the village and promote a healthy lifestyle by making it safer and easier to get around Canning as a pedestrian.”

    Kody Blois, Member of Parliament for on behalf of the Honourable Sean Fraser, Minister of Housing, Infrastructure and Communities

    “The Canning Village Commission continues to support our community with updated infrastructure in our village. The funding assistance from the federal and provincial governments helped ensure that the new sidewalk along Summer Street could be completed. This sidewalk will ensure a safe accessible route for all pedestrians within our community.”

    Angela Cruickshank, Canning Village Commission Chair

    Quick facts

    • The federal government is investing $718,009 in this project through the Active Transportation Fund (ATF). The province and the municipality previously contributed to this project.

    • Active transportation refers to the movement of people or goods powered by human activity. It includes walking, cycling and the use of human-powered or hybrid mobility aids such as wheelchairs, scooters, e-bikes, rollerblades, snowshoes, cross-country skis, and more.

    • In support of Canada’s National Active Transportation Strategy, the Active Transportation Fund is providing $400 million over five years, starting in 2021, to make travel by active transportation easier, safer, more convenient, and more enjoyable.

    • The National Active Transportation Strategy is the country’s first coast-to-coast-to-coast strategic approach for promoting active transportation and its benefits. The strategy’s aim is to make data-driven and evidence-based investments to build new and expanded active transportation networks, while supporting equitable, healthy, active, and sustainable travel options.

    • Investing in active transportation infrastructure provides many tangible benefits, such as creating good middle-class jobs, strengthening the economy, promoting healthier lifestyles, ensuring everyone has access to the same services and opportunities, cutting air and noise pollution, and reducing greenhouse gas emissions. 

    • The new Canada Public Transit Fund (CPTF) will provide an average of $3 billion a year of permanent funding to respond to local transit needs by enhancing integrated planning, improving access to public transit and active transportation, and supporting the development of more affordable, sustainable, and inclusive communities. 

    • The CPTF supports transit and active transportation investments in three streams: Metro Region Agreements, Baseline Funding, and Targeted Funding.

    • We are currently accepting Expression of Interest submissions for Metro-Region Agreements and Baseline Funding. Visit the Housing, Infrastructure and Communities Canada website for more information.

    • The funding announced today builds on the federal government’s work through the Atlantic Growth Strategy to create well-paying jobs and strengthen local economies.

    Associated links

    Contacts

    For more information (media only), please contact:

    Sofia Ouslis
    Communications Advisor
    Office of the Minister of Housing, Infrastructure and Communities
    Sofia.ouslis@infc.gc.ca

    Media Relations
    Housing, Infrastructure and Communities Canada
    613-960-9251
    Toll free: 1-877-250-7154
    Email: media-medias@infc.gc.ca
    Follow us on X, Facebook, Instagram and LinkedIn
    Web: Housing, Infrastructure and Communities Canada

    Ruth Pearson
    Clerk/Treasurer
    Village of Canning
    902-582-3768
    village.canning@xcountry.tv

    MIL OSI Canada News –

  • MIL-OSI Canada: Canada successfully re-opens 10-year green bond to raise an additional $2 billion

    Source: Government of Canada News

    This week, the Government of Canada successfully re-opened its second Canadian-dollar-denominated green bond, following its initial issuance in February 2024. This $2 billion re-opening of a 10-year bond is part of a commitment to regular green bond issuances.

    October 10, 2024 – Ottawa, Ontario – Department of Finance Canada

    This week, the Government of Canada successfully re-opened its second Canadian-dollar-denominated green bond, following its initial issuance in February 2024. This $2 billion re-opening of a 10-year bond is part of a commitment to regular green bond issuances.

    The government’s intent is to proceed with two smaller green bond transactions in fiscal year 2024-25—today’s re-opening and a separate offering at a later date—to meet the planned issuance outlined in Budget 2024.

    This offering is the second under Canada’s updated Green Bond Framework, which allows for certain nuclear energy expenditures to be eligible for green bond proceeds. Canada is the first sovereign borrower to issue a green bond including certain nuclear expenditures, demonstrating Canada’s commitment to being a global leader in clean nuclear power.

    This week’s offering saw robust demand from environmentally and socially responsible investors who represented a majority of buyers (53 per cent). The final order book stood at over $3.8 billion.

    Government of Canada green bond issuances support Canada’s sustainable finance market by providing a sovereign benchmark for the rest of the market, and high-quality environmental, social, and governance (ESG) assets for investors, backed by Canada’s AAA credit rating. Green bonds unlock private financing to speed up projects such as green infrastructure and nature conservation. Green bond projects will grow Canada’s economy and create more good-paying jobs across the country.

    MIL OSI Canada News –

  • MIL-OSI Canada: Federal and provincial governments invest in upgrades for public buildings throughout Alberta

    Source: Government of Canada News

    News release

    Edmonton, Alberta, October 10, 2024 — Ten communities across Alberta will have upgraded and more accessible buildings after a combined investment of almost $18 million from the federal and provincial governments.

    To ensure safer and longer-lasting working and public spaces, these projects will include replacing water lines and elevators and improving heating, ventilation and air conditioning units.

    In Edmonton, the Queen Elizabeth II Building and the Alberta Legislature Building will receive upgrades for the air quality in those spaces. The courthouse and provincial building in Stony Plain will see upgrades to the HVAC systems including chillers, air handling units, supply and return air ducts and controls. The Drumheller Provincial Building will see upgrades to its existing ventilation system and supply and return air ducts.

    A complete list of the projects can be found in the attached backgrounder.

    Quotes

    “The federal government continues to support infrastructure that protects the health and safety of Canadians across the country. Today’s announcement will help support building upgrades that increase energy efficiency and meet the standard for air quality for urban and rural communities in Alberta.”

    The Honourable Randy Boissonnault, Minister of Employment, Workforce Development and Official Languages, on behalf of the Honourable Sean Fraser, Minister of Housing, Infrastructure and Communities

    “It is important we keep our government-owned facilities in good condition for the many Albertans that rely on the programs and services they house. This investment will provide needed renewals and upgrades, support about 100 construction-related jobs, and generate economic activity in communities across Alberta.”

    Pete Guthrie, Minister of Infrastructure, Government of Alberta

    Quick facts

    • The federal government is investing $13,811,772 through the COVID-19 Resilience Stream of the Investing in Canada Infrastructure Program. The Government of Alberta is investing $4,182,373.

    • Under the COVID-19 Resilience Stream, the federal cost share for public infrastructure projects is 80 per cent in the provinces, and 100 per cent in the territories and for projects intended for Indigenous communities.

    • Including today’s announcement, 126 infrastructure projects under the COVID-19 Resilience Stream have been announced in Alberta, with a total federal contribution of more than $227 million and a total provincial contribution of over $35 million.

    • Under the Investing in Canada Plan, the federal government is investing more than $180 billion over 12 years in public transit projects, green infrastructure, social infrastructure, trade and transportation routes, and Canada’s rural and northern communities.

    • As the world moves towards a net-zero economy, people living and working on the Prairies are taking action and are leading to take advantage of growing economic development opportunities.

    • On December 18, 2023, the federal government launched the Framework to Build a Green Prairie Economy, which highlights the need for a collaborative, region-specific approach to sustainability, focusing on strengthening the coordination of federal programs, and initiatives with significant investments. This Framework is a first step in a journey that will bring together multiple stakeholders. PrairiesCan, the federal department that diversifies the economy across the Canadian prairies, has dedicated $100 million over three years to support projects aligned with priority areas identified by Prairie stakeholders to build a stronger, more sustainable, and inclusive economy for the Prairie provinces and Canada.

    • Housing, Infrastructure and Communities Canada is supporting the Framework to Build a Green Prairie Economy to encourage greater collaboration on investment opportunities, leverage additional funding, and attract new investments across the Prairies that better meet their needs. 

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    Associated links

    Contacts

    For more information (media only), please contact:

    Sofia Ouslis
    Communications Advisor
    Office of the Minister of Housing, Infrastructure and Communities
    Sofia.ouslis@infc.gc.ca

    Media Relations
    Housing, Infrastructure and Communities Canada
    613-960-9251
    Toll free: 1-877-250-7154
    Email: media-medias@infc.gc.ca
    Follow us on Twitter, Facebook, Instagram and LinkedIn
    Web: Housing, Infrastructure and Communities Canada

    MIL OSI Canada News –

  • MIL-OSI Canada: The Government of Canada Announces New Intake for Clean Electricity Program With $500 Million in Additional Funding

    Source: Government of Canada News

    The Honourable Jonathan Wilkinson, Minister of Energy and Natural Resources announced up to $500 million in funding for the Smart Renewables and Electrification Pathways program (SREPs) Utility Support Stream. SREPs was recapitalized with nearly $2.9 billion in Budget 2023 and supports clean electricity infrastructure — such as renewable energy technologies, energy storage and grid modernization technologies — that strengthen the electricity grid. Through the program, the federal government will support even more clean electricity projects.

    October 10, 2024                                             Toronto, Ontario                          Natural Resources Canada

    The Government of Canada is supporting Canadian utilities and system operators that are working to clean their electricity, integrate clean solutions such as utility storage systems and micro grids, and meet the demands of increased electrification at the least cost to rate payers. These measures are enabling clean growth and ensuring a healthier environment for our communities. Canada’s electricity systems will be the backbone of Canada’s clean economy and central to our efforts to fight climate change and build a more prosperous economy for Canadian workers and businesses. 

    Today, the Honourable Jonathan Wilkinson, Minister of Energy and Natural Resources announced up to $500 million in funding for the Smart Renewables and Electrification Pathways program (SREPs) Utility Support Stream. SREPs was recapitalized with nearly $2.9 billion in Budget 2023 and supports clean electricity infrastructure — such as renewable energy technologies, energy storage and grid modernization technologies — that strengthen the electricity grid. Through the program, the federal government will support even more clean electricity projects.

    This latest round of the SREPs program is launching its first of several intake processes today. The Request for Expressions of Interest for the Utility Support Stream (USS) is now open to utilities, system operators and industry organizations seeking to modernize to enable greater renewable energy integration or expand transmission and distribution systems while maintaining reliability and affordability. This represents an additional step in the Government of Canada’s work to support provinces and territories, as well as electricity operators, to achieve a clean grid in line with industry and government goals. This work — which reflects mutual objectives reached through the Regional Energy and Resources Tables — is injecting much-needed funds into the Canadian electricity sector to modernize and future-proof grids as they withstand growing populations, high demand and increasing extreme weather events.

     Projects funded under the USS will: 

    • improve the utilization and efficiency of existing assets;
    • increase the reliability, resiliency, and flexibility of the power system;
    • increase the integration and use of renewable resources and non-conventional infrastructure solutions;
    • generate economic and social benefits; and
    • help accommodate growing demand for clean and affordable electricity.

    More intake processes for other types of projects will be launched over the next few months.  

    Today’s announcement took place at the University of Toronto, host of Canada’s future first grid modernization centre that previously benefited from $10 million in federal government funding, where the Minister also took the opportunity to announce the YMCA of Greater Toronto’s Energy and Climate Strategies Project, which previously received $768,750 in SREPs funding to complete studies and to explore renewable technologies, including geothermal, solar photovoltaic (PV), solar thermal, microgrid and battery storage. Investments like this lead to renewable energy projects that clean the air in our communities.

    The Government of Canada is taking every step to build a clean, reliable and affordable electricity system across the country. 

    “By making historic investments in clean electricity, this government is positioning Canadians to take advantage of the economic opportunities presented by the clean economy, now and into the future. The Smart Renewables and Electrification Pathways program is already providing Canadian communities across the country with affordable and clean power while reducing greenhouse gas emissions. I am pleased to celebrate the ongoing successes of this program and to announce the opening of the Utility Support Stream as of today. This next step will allow us to support even more projects as we work with provinces, territories, Indigenous governments and non-governmental partners as we work toward our common goal of an energy-efficient and money-saving clean grid. I look forward to seeing the results of this new funding as it improves energy infrastructure from coast to coast to coast.”

    The Honourable Jonathan Wilkinson

    Minister of Energy and Natural Resources 

    MIL OSI Canada News –

  • MIL-OSI Canada: Remarks by the Deputy Prime Minister announcing new actions to build secondary suites and unlock vacant lands to build more homes

    Source: Government of Canada News

    Today, I will tell you about the new measure our government is taking to build new housing. Minister Jean-Yves Duclos (Minister of Public Services and Procurement) will tell you about the latest additions to the Canada Public Land Bank, a very important program that continues. And after that, Minister Terry Beech (Minister of Citizens’ Services) will tell you about the impact of these measures for Canadians.

    October 8, 2024 – Ottawa, Ontario

    Check against delivery

    Introduction

    Good morning.

    I’m going to start on a very celebratory note. I want to start by congratulating the amazing Geoffrey Hinton on his Nobel Prize in physics. He is a great Canadian. He is absolutely brilliant. He happens to be a constituent of mine and, as the father of AI, is the teacher of generations of great Canadian intellectual leaders who have been taught by him, and who have learned from him at the University of Toronto. What a wonderful accomplishment. This is an honour which is richly deserved, and I think I speak for all Canadians in saying we are so proud of you and so grateful to you.

    Today, I will tell you about the new measure our government is taking to build new housing. Minister Jean-Yves Duclos (Minister of Public Services and Procurement) will tell you about the latest additions to the Canada Public Land Bank, a very important program that continues. And after that, Minister Terry Beech (Minister of Citizens’ Services) will tell you about the impact of these measures for Canadians.

    I do want to start by talking for a moment about the good economic news we’ve been having in recent weeks. Canada is leading the G7 in achieving a soft landing after the COVID recession. Inflation fell to 2 per cent in August. That is a 42-month low and it means that, for all of this year, inflation has been within the Bank of Canada’s target range.

    Thanks to that inflation trajectory, the Bank of Canada led the G7 in cutting rates. Canada was the first G7 country to cut interest rates for the first time, we were the first G7 country to cut interest rates for the second time, and we were the first G7 country to cut interest rates for the third time.

    Wages have been outpacing inflation for 19 months in a row now. What all of that means for Canadians is their paycheques are going further. And for people who own a home and have a mortgage that is coming up for renewal, the fact that interest rates are coming down is a source of really great relief.

    Now on our announcement. We are announcing today new rules about secondary suites, and we’re issuing technical guidance for lenders and insurers to offer refinancing for secondary suites. These will come into force on January 15th.

    The idea here is to make it easier for people to build a secondary suite in their home, for someone to build a basement flat, a garden flat, or laneway housing. This is all about gentle density, creating more homes for Canadians to live in. It builds on the secondary suite loan program, which was announced in Budget 2024.

    Specifically, we’re going to allow refinancing of insured mortgages to build a secondary suite in your home. You will be able to access up to 90 per cent of the home value, including the value added by the secondary suite, and you will be able to amortize your refinanced mortgage for up to 30 years. The limit for insured mortgages, if you are building a secondary suite, will be $2 million and that will be particularly important to recognize—and is a recognition of conditions in the GTA, and in the Lower Mainland.

    This is really about giving Canadians, Canadian homeowners the opportunity to be part of our great national effort to build more homes faster. It’s to let a family who already owns a home and maybe would like their grandmother or grandfather, or both of them, to move in with them to give them access to a little bit more money to build that basement flat, to build that garden suite, so that grandparents can move in.

    It’s also about grandparents who have a big house. Maybe they are alone in that house, and they’d like a grandchild to be able to move in with them to go to school. This is about making it easier for them to build that extra space. And we see this as a measure which goes alongside other measures that we’ve put in place—designed for the big builders to get more homes built faster, to get more rental units built. This is about saying regular Canadians should have the ability and access to the financing to build gentle density in their neighbourhoods. To build density that their families and their communities need.

    The second announcement is a consultation on taxation of vacant land. We believe that good land should not be left unused. Ireland, for example, has a measure like that. Today, we are announcing consultations with municipalities, provinces and territories to discuss whether we need such a measure here in Canada.  And the objective, like all our objectives concerning housing, is to build more housing faster. We know that Canada needs this.   

    We know that one of the most pressing issues for Canada, for Canadians, is housing. And we know that the centre of that issue, the centre of the solution, needs to be to get more homes built faster. Today’s announcements are another arrow in our quiver of measures to get more homes built faster in Canada. This is about getting 4 million homes built.

    I’m now going to turn it over to my colleague, Jean-Yves Duclos.

    MIL OSI Canada News –

  • MIL-OSI Canada: Manitoba Government Helping Local Companies Grow in New Markets

    Source: Government of Canada regional news

    October 10, 2024

    Manitoba Government Helping Local Companies Grow in New Markets

    – – –
    Growing Exports will Create Good Jobs for Manitobans: Moses

    The Manitoba government is providing $500,000 in export support programming for small and medium-sized Manitoba companies looking to explore, initiate or expand their export activities into new markets, Economic Development, Investment, Trade and Natural Resources Minister Jamie Moses announced today.

    “Helping companies start to export or expand their exporting capabilities will boost trade and create good local jobs for Manitobans,” said Moses. “We’re continuing to work with Manitoba companies to develop export opportunities and increase business investments in our province.”

    Export support programming helps businesses export their products or services outside of Manitoba. The programming provides funding through two streams:

    • The Export Development Program provides reimbursement to Manitoba companies participating in a tradeshow or mission outside the province.
    • The Incoming Buyer Program provides reimbursement to local companies that invite qualified international buyers to the province with the goal of purchasing Manitoba products.

    “The Export Development Program has been a vital resource in supporting our expansion into new markets,” said Teaghan Wellman, executive vice president, Cypher Environmental. “Through its additional backing for our participation in international trade shows and missions, we’ve been able to capitalize on key opportunities that have significantly accelerated our growth. This program has not only helped us strengthen our export strategy and broaden our global presence but remains a driving force behind our success, enhancing our competitiveness and resilience in an ever-evolving global market.”

    The program has seen strong uptake from Manitoba companies, highlighting the importance of having dedicated provincial export support programming. As of March, programming has supported 45 companies to attend 74 national and international events, trade shows, missions and conventions to form valuable partnerships, noted the minister.

    “Manitoba’s new trade strategy will focus on attracting investment to Manitoba, having more domestic companies exporting products or services abroad, and increasing our global presence,” said Moses. “This funding helps companies make exporting a reality and is a crucial part of our trade strategy.”

    Industry roundtables are planned in the coming months, building off the work of the Premier’s Business and Jobs Council’s sub-committee on trade with the U.S. and recent trade missions to Washington.

    Applications for export support program funding are now being accepted. For more program information, visit www.gov.mb.ca/jec/busdev/financial/export/index.html.

    – 30 –

    MIL OSI Canada News –

  • MIL-OSI Canada: Deputy Prime Minister highlights boldest mortgage reforms in decades to unlock homeownership for more Canadians

    Source: Government of Canada News

    Today in Toronto, the Honourable Chrystia Freeland, Deputy Prime Minister and Minister of Finance, highlighted how the government’s bold mortgage reforms will make it more affordable to buy a home and unlock the dream of homeownership for more Canadians.

    October 10, 2024 – Toronto, Ontario – Department of Finance Canada

    Every Canadian deserves to be able to rent or buy their home. To help more Canadians, especially younger generations, access a home that suits their needs, we are delivering significant new measures that reflect the realities of the current housing market.

    Today in Toronto, the Honourable Chrystia Freeland, Deputy Prime Minister and Minister of Finance, highlighted how the government’s bold mortgage reforms will make it more affordable to buy a home and unlock the dream of homeownership for more Canadians.

    To make it easier for homeowners to add secondary suites, such as basement rental apartments, in-law suites, and laneway homes, the federal government is reforming mortgage insurance rules to allow refinancing to help cover the costs of building secondary suites. Starting January 15, 2025, homeowners will be able to refinance their insured mortgages to access the equity in their homes and help pay for the construction of a secondary suite. This will add much needed gentle density to our neighborhoods and help tackle the housing shortage.

    To make it easier to buy a home with a smaller downpayment, the federal government is increasing the $1 million price cap for insured mortgages to $1.5 million, effective December 15, 2024. This means that more Canadians will be able to qualify for a mortgage with a downpayment below 20 per cent, making it possible for more Canadians to get those first keys of their own.

    To lower monthly mortgage payments, the federal government is expanding 30 year amortizations to all first-time homebuyers and to all buyers of new builds, effective December 15, 2024. By offering lower monthly mortgage payments to all first-time buyers and buyers of new builds, more Canadians, especially younger generations, will be able to buy a home.

    These mortgage reform measures build on the strengthened Canadian Mortgage Charter¸ announced in Budget 2024, which allows insured mortgage holders to switch lenders at renewal without being subject to another mortgage stress test. Soon, all homeowners with mortgages renewing will be able to shop around for the best rate. And for first-time buyers getting 30 year mortgages this December, you’ll be able to find the lowest rate every time you renew.

    The federal government has the most ambitious housing plan in Canadian history—a plan to build 4 million new homes. This is about building a country where every generation can reach the dream of homeownership.

    Katherine Cuplinskas
    Deputy Director of Communications
    Office of the Deputy Prime Minister and Minister of Finance
    Katherine.Cuplinskas@fin.gc.ca

    MIL OSI Canada News –