housing – Page 1296 – NewzIntel.com

MIL-OSI USA: NASA Quiet Space Fan Research to Benefit Commercial Space Stations

Source: NASA

NASA researchers developed a Quiet Space Fan to reduce the noise inside crewed spacecraft, sharing the results with industry for potential use on future commercial space stations.
Controlling noise inside spacecraft helps humans talk to each other, hear alarms clearer, get restful sleep, and minimizes the risk of hearing loss. It is best to control the noise at the source, and in spacecraft the noise often comes from cabin ventilation and equipment cooling fans.
Since the earliest days of human spaceflight, there has been noise from the Environmental Control and Life Support System ventilation. NASA is working to design highly efficient and quiet fans by building on technology initially developed at the agency’s Glenn Research Center in Cleveland and sharing it with companies that are developing new spacecraft and space stations.

“As NASA continues to support the design and development of multiple commercial space stations, we have intentional and focused efforts to share technical expertise, technologies, and data with industry,” said Angela Hart, manager of NASA’s Commercial Low Earth Orbit Development Program at the agency’s Johnson Space Center in Houston. “The Quiet Space Fan research is one more example of how we are actively working with private companies to foster the development of future destinations.”
The initial fan prototype was designed at Glenn in 2009 using tools developed for aircraft turbofan engines. The fan design size, flow rate – how much air the fan moves – and pressure rise – the increase in pressure across the fan – were designed similarly to the original Orion cabin fan design point (150 cubic feet per minute, 3.64 inches of water column). Acoustic measurements showed that the new design was approximately 10 decibels quieter than a similar-sized commercial off-the-shelf fan.
To take the research a step further, a larger fan was recently designed with almost twice the flow rate and pressure rise capability (250 cubic feet per minute, 7 inches of water column) compared to the initial prototype. For example, the original fan could provide enough airflow for a large car or van, and the larger fan could provide enough airflow for a house.
NASA’s quiet fan design aims to maintain high performance standards while significantly reducing everyday noise levels and can potentially be used on the International Space Station and future commercial destinations.

“This work will lead to significant benefits including volume and mass savings from noise controls that are no longer as large or needed at all, reduced system pressure loss from mufflers and silencers that don’t need to be as restrictive, reduced power draw because of the reduced system pressure loss and the highly efficient fan design, and satisfying spaceflight vehicle acoustic requirements to provide a safe and habitable acoustic environment for astronauts,” said Chris Allen, Acoustics Office manager at NASA Johnson.
Developing quieter fans is one of many efforts NASA is making to improve human spaceflight and make space exploration more innovative and comfortable for future missions to low Earth orbit. Helping private companies provide reliable and safe services at a lower cost will allow the agency to focus on Artemis missions to the Moon while continuing to use low Earth orbit as a training and proving ground for deep space missions.
Learn more about NASA’s commercial space strategy at:
https://www.nasa.gov/humans-in-space/commercial-space

MIL OSI USA News –

January 24, 2025

MIL-OSI Global: How beef became a marker of American identity

Source: The Conversation – USA – By Hannah Cutting-Jones, Assistant Professor, Department of Global Studies; Director of Food Studies, University of Oregon

Beef dominates American diets. In 2022, Americans consumed almost 30 billion pounds of beef. Johnrob/E+ via Getty Images

Beef is one of America’s most beloved foods. In fact, today’s average American eats three hamburgers per week.

American diets have long revolved around beef. On an 1861 trip to the United States, the English novelist Anthony Trollope marveled that Americans consumed twice as much beef as Englishmen. Through war, industry, development and settlement, America’s love of beef continued. In 2022, the U.S. as a whole consumed almost 30 billion pounds (13.6 billion kilograms) of it, or 21% of the world’s beef supply.

Beef has also reached iconic status in American culture. As “Slaughterhouse-Five” author Kurt Vonnegut once penned, “Being American is to eat a lot of beef, and boy, we’ve got a lot more beef steak than any other country, and that’s why you ought to be glad you’re an American.”

In part, the dominance of beef in American cuisine can be traced to settler colonialism, a form of colonization in which settlers claim – and then transform – lands inhabited by Indigenous people. In America, this process centered on the systemic and often violent displacement of Native Americans. Settlers brought with them new cultural norms, including beef-heavy diets that required massive swaths of land for grazing cattle.

As a food historian, I am interested in how, in the 19th century, the beef industry both propelled and benefited from colonialism, and how these intertwined forces continue to affect our diets, culture and environment today.

Cattle and cowboys

Beginning in the 16th century, the first Europeans to settle across the Americas – and later, Australia and New Zealand – brought their livestock with them. A global economy built on appropriated Indigenous territories allowed these nations to become among the highest consumers and producers of meat in the world.

The United States in particular tied its burgeoning national identity and westward expansion to the settlement and acquisition of cattle-ranching lands. Until 1848, Arizona, California, Texas, Nevada, Utah, western Colorado and New Mexico were part of Mexico and inhabited by numerous tribes, Indigenous cowboys and Mexican ranchers.

The Mexican-American War, which lasted from 1846-48, led to 525,000 square miles being ceded to the United States – land that became central to American beef production. Gold, discovered in the northern Sierra by 1849, drew hundreds of thousands more settlers to the region.

The desire for cattle-supporting land played an integral role in the systematic decimation of bison populations, as well. For thousands of years, Native Americans relied on bison for physical and cultural survival. At least 30 million roamed the western United States in 1800; by 1890, 60 million head of cattle had taken their place.

Beef replaces bison

It is no coincidence that the rise of an extensive and powerful American beef industry coincided with the near-elimination of bison across the United States.

Bison populations were already in steep decline by the mid-1800s, but after the Civil War, as industrialization transformed transportation, communication and mass production, the U.S. Army actively encouraged the wholesale slaughter of bison herds.

In 1875, Philip Sheridan, a general in the U.S. Army, applauded the impact bison hunters could have on the beef industry. Hunters “have done more in the last two years, and will do more in the next year, to settle the vexed Indian question, than the entire regular army has done in the last forty years,” Sheridan said. “They are destroying the Indians’ commissary … (and so) for a lasting peace, let them kill, skin and sell until the buffaloes are exterminated. Then your prairies can be covered with speckled cattle.”

In 1884, with no hint of irony, the U.S. Department of Indian Affairs constructed a slaughterhouse on the Blackfeet Reservation in Montana and required tribal members to provide the factory’s labor in exchange for its beef.

By 1888, New York politician and sometimes rancher Theodore Roosevelt described Western stockmen as “the pioneers of civilization,” who with “their daring and adventurousness make the after settlement of the region possible.” Later, during Roosevelt’s presidency – from 1900 to 1908 – the U.S. claimed another 230 million acres of Indigenous lands for public use, further opening the West to ranching and settlement.

The Union Stock Yards in Chicago, the most modern slaughterhouse of the era, opened on Christmas Day in 1865 and marked a turning point for industrial beef production. No longer delivered “on the hoof” to cities, cattle were now slaughtered in Chicago and sent East as tinned meat or, after the 1870s, in refrigerated railcars.

Processing over 1 million head of cattle annually at its height, the Union Stock Yards, a global technological marvel and international tourist attraction, symbolized industrial progress and inspired national pride.

Beef consumption has become part of the American origin myth of rugged individualism.
pastorscott via Getty Images.

Where’s the beef?

By the turn of the 20th century, beef was solidly linked to American identity both at home and globally. In 1900, the average American consumed over 100 pounds of beef per year, almost twice the amount eaten by Americans today.

Canadian food writer Marta Zaraska argues in her 2021 book “Meathooked” that beef became a key part of the American origin myth of rugged individualism that was emerging at this time. And cowboys, working the grueling cattle drives, came to embody values linked to the frontier: self-reliance, strength and independence.

Popular for decades as a street food, America’s proudest culinary invention – the hamburger – debuted at the St. Louis World’s Fair in 1904 alongside other novelties such as Dr. Pepper and ice cream.

After World War II, suburban markets and fast-food chains dominated the American foodscape, where beef burgers reigned supreme. By the end of the century, more people around the globe recognized the golden arches of McDonald’s than the Christian cross.

At the same time, national programs reinforced food insecurity for Native Americans. In efforts to eventually dissolve reservations and open these lands to private development, for example, in 1952 the U.S. government launched the Voluntary Relocation Program, in which the Bureau of Indian Affairs persuaded many living on reservations to move to cities. The promised well-paying jobs did not materialize, and most of those who relocated traded rural for urban poverty.

The true cost of a burger

Plant- and lab-based meat companies are making headway into restaurants and food markets.
coldsnowstorm/iStock via Getty Images Plus

Policies encouraging settler colonialism ultimately led to more sedentary lifestyles and a dependence on fast, convenient and processed foods – such as hamburgers – regardless of the individual or environmental costs.

In recent decades, scientists have warned that industrial meat production, and beef in particular, fuels climate change and leads to deforestation, soil erosion, species extinction, ocean dead zones and high levels of methane emissions. It is also a threat to biodiversity. Nutritionist Diego Rose believes the best way “to reduce your carbon footprint (is to) eat less beef,” a view shared by other sustainability experts.

As of January 2022, about 10% of Americans over the age of 18 considered themselves vegetarian or vegan. Another recent study found that 47% of American adults are “flexitarians” who eat primarily, but not wholly, plant-based diets.

At the same time, small-scale farmers and cooperatives are working to restore soil health by reintegrating cows and other grazing animals into sustainable farming practices to produce more high-quality, environmentally friendly meat.

More encouraging still, tribes in Montana – Blackfeet Nation, Fort Belknap Indian Community, Fort Peck Assiniboine and Sioux Tribes, and South Dakota’s Rosebud Sioux – have reintroduced bison to the northern Great Plains to revive the prairie ecosystem, tackle food insecurity and lessen the impacts of climate change.

Even so, in the summer of 2024, Americans consumed 375 million hamburgers in celebration of Independence Day – more than any other food.

Hannah Cutting-Jones 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. How beef became a marker of American identity – https://theconversation.com/how-beef-became-a-marker-of-american-identity-214824

MIL OSI – Global Reports –

January 24, 2025

MIL-OSI Global: Both Harris and Trump have records on space policy − an international affairs expert examines where they differ when it comes to the final frontier

Source: The Conversation – USA – By Thomas G. Roberts, Postdoctoral Fellow in International Affiars, Georgia Institute of Technology

Neither candidate has talked much about space policy on the campaign trail, but both have records to consider. Anton Petrus/Moment via Getty Images

The next president of the United States could be the first in that office to accept a phone call from the Moon and hear a woman’s voice on the line. To do so, they’ll first need to make a series of strategic space policy decisions. They’ll also need a little luck.

Enormous government investment supports outer space activities, so the U.S. president has an outsize role in shaping space policy during their time in office.

Past presidents have leveraged this power to accelerate U.S. leadership in space and boost their presidential brand along the way. Presidential advocacy has helped the U.S. land astronauts on the surface of the Moon, establish lasting international partnerships with civil space agencies abroad and led to many other important space milestones.

But most presidential candidates refrain from discussing space policy on the campaign trail in meaningful detail, leaving voters in the dark on their visions for the final frontier.

For many candidates, getting into the weeds of their space policy plans may be more trouble than it’s worth. For one, not every president even gets the opportunity for meaningful and memorable space policy decision-making, since space missions can operate on decades-long timelines. And in past elections, those who do show support for space initiatives often face criticism from their opponents for their high price tags.

But the 2024 election is different. Both candidates have executive records in space policy, a rare treat for space enthusiasts casting their votes this November.

As a researcher who studies international affairs in outer space, I am interested in how those records interface with the strategic and sustainable use of that domain. A closer look shows that former President Donald Trump and Vice President Kamala Harris have used their positions to consistently prioritize U.S. leadership in space, but they have done so with noticeably different styles and results.

Trump’s space policy record

As president, Trump established a record of meaningful and lasting space policy decisions, but did so while attracting more attention to his administration’s space activities than his predecessors. He regularly took personal credit for ideas and accomplishments that predated his time in office.

The former president oversaw the establishment of the U.S. Space Force and the reestablishment of the U.S. Space Command, as well as the National Space Council. These organizations support the development and operation of military space technologies, defend national security satellites in future conflicts and coordinate between federal agencies working in the space domain.

While president, Donald Trump oversaw the creation of the U.S. Space Force.
AP Photo/Alex Brandon

He also had the most productive record of space policy directives in recent history. These policy directives clarify the U.S. government’s goals in space, including how it should both support and rely on the commercial space sector, track objects in Earth’s orbit and protect satellites from cyber threats.

He has called his advocacy for the creation of the Space Force one of his proudest achievements of his term. However, this advocacy contributed to polarized support for the new branch. This polarization broke the more common pattern of bipartisan public support for space programming.

Like many presidents, not all of Trump’s visions for space were realized. He successfully redirected NASA’s key human spaceflight destination from Mars back to the Moon. But his explicit goal of astronauts reaching the lunar surface by 2024 was not realistic, given his budget proposal for the agency.

Should he be elected again, the former president may wish to accelerate NASA’s Moon plans by furthering investment in the agency’s Artemis program, which houses its lunar initiatives.

He may frame the initiative as a new space race against China.

Harris’ space policy record

The Biden administration has continued to support Trump-era initiatives, resisting the temptation to undo or cancel past proposals. Its legacy in space is noticeably smaller.

As the chair of the National Space Council, Harris has set U.S. space policy priorities and represented the United States on the global stage.

As vice president, Harris has chaired the National Space Council.
NASA/Joel Kowsky, CC BY-NC-ND

Notably, the Trump administration kept this position that the president can alter at will assigned to the vice president, a precedent the Biden administration upheld.

In this role, Harris led the United States’ commitment to refrain from testing weapons in space that produce dangerous, long-lasting space debris. This decision marks an achievement for the U.S. in keeping space operations sustainable and setting an example for others in the international space community.

Like some Trump administration space policy priorities, not all of Harris’ proposals found footing in Washington.

The council’s plan to establish a framework for comprehensively regulating commercial space activities in the U.S., for example, stalled in Congress.

If enacted, these new regulations would have ensured that future space activities, such as private companies operating on the Moon or transporting tourists to orbit and back, pass critical safety checks.

Should she be elected, Harris may choose to continue her efforts to shape responsible norms of behavior in space and organize oversight over the space industry.

Alternatively, she could cede the portfolio to her own vice president, Minnesota Gov. Tim Walz, who has virtually no track record on space policy issues.

Stability in major space policy decisions

Despite the two candidates’ vastly different platforms, voters can expect stability in U.S. space policy as a result of this year’s election.

Given their past leadership, it is unlikely that either candidate will seek to dramatically alter the long-term missions the largest government space organizations have underway during the upcoming presidential term. And neither is likely to undercut their predecessors’ accomplishments.

Thomas G. Roberts is affiliated with the Center for Strategic and International Studies.

– ref. Both Harris and Trump have records on space policy − an international affairs expert examines where they differ when it comes to the final frontier – https://theconversation.com/both-harris-and-trump-have-records-on-space-policy-an-international-affairs-expert-examines-where-they-differ-when-it-comes-to-the-final-frontier-238289

MIL OSI – Global Reports –

January 24, 2025

MIL-OSI Global: Why the margin of error matters more than ever in reading 2024 election polls – a pollster with 30 years of experience explains

Source: The Conversation – USA – By Doug Schwartz, Director of the Quinnipiac Poll, Quinnipiac University

A political opinion poll aims to get a representative sample of the wider public. borzaya/iStock / Getty Images Plus

In just about any discussion of a poll about the very close presidential race between Vice President Kamala Harris and former President Donald Trump, you’ll hear the phrase “within the poll’s margin of error.” Those words signal that it is a tight race with no clear leader, even if one of them has a slightly larger percentage of support, like 48% to 47%.

As the director of the Quinnipiac University Poll, which has been taking the pulse of the public on policy issues and elections for the past 30 years, I’ve noted that people have been paying more attention to this technical term since at least 2016.

In that year, some polls in Florida, for example, indicated that Hillary Clinton was just a couple of percentage points ahead of Trump. Journalists and the public largely – and incorrectly – understood that apparent popular-vote lead to mean Clinton was likely to win.

But those 1 or 2 percentage points were within their polls’ margins of error. And Clinton lost Florida. In a poll about a political race, the margin of error tells readers the likely range of results of an election.

What is a margin of error?

A poll is one or more questions asked of a small group of people and used to gauge the views of a larger group of people. The margin of error is a mathematical calculation of how accurate the poll results are – of how closely the answers given by the small group match the views held by the larger group.

If everyone in the larger group were polled, there would be no margin of error. But it’s complicated, difficult and expensive to contact that many people. The U.S. Census Bureau spent US$13.7 billion over several years in its most recent effort to count every person in the United States every 10 years, and it still wasn’t able to include exactly everyone.

Pollsters don’t have that kind of time – or money – so they use smaller samples of the population. They seek to identify representative samples in which all members of the larger group have a chance to be included in the poll.

The group size is important

The calculation of how close the poll is to the views of the larger population is based on the size of the group that is polled.

For example, a sample of 600 voters will have a larger margin of error – about 4 percentage points – than a sample of 1,000 voters, which has a margin of error of just over 3 percentage points.

The way the sample is chosen also matters: In 1936, the Literary Digest magazine polled people on the presidential election by mailing surveys to telephone owners, car owners and country club members. Everyone in this group was relatively affluent, so they were not representative of the whole U.S. voting population. Calculating a margin of error would have been meaningless because the sample did not capture all segments of the population.

The larger the sample size, the smaller the margin of error.
Zieben007 via Wikimedia Commons, CC BY-SA

A concrete example

Let’s use an example of how to understand the margin of error. If a poll shows that 47% of the polled group support Candidate A, and the margin of error is plus or minus 3 percentage points, that means that the percentage in the population supporting Candidate A is likely to be between 44% (47 minus 3) and 50% (47 plus 3).

One quick note: Most polls report margins of error alongside another technical term, “confidence interval.” In the most rigorous reporting of polls, you might see a sentence near the end that says something like “The margin of error is plus or minus 3 percentage points, at a 95% confidence interval.” What all that means is this: Imagine if 100 different random samples of the same size were selected from the larger group, and then asked the same questions in the poll. The 95% confidence interval means that 95% of the time, those other polls’ responses would be within 3 percentage points of the answers reported in this one poll.

Comparing support between candidates

The concept of margin of error gets more complex when looking at the differences in support between two candidates. If a margin of error is plus or minus 3 percentage points, the margin of error on the difference between them is about double – or 6 percentage points, in this example.

That’s because the margin of error here is a combined one, and refers to not just the percentage voting for Candidate A but also to the percentage voting for the other candidate.

To look back at 2016 again, the final Quinnipiac University Poll in Florida before Election Day showed Clinton with 46% support and Trump with 45% support. The margin of error was 3.9 percentage points, which meant Clinton was likely to get between 42.1% and 49.9% of the vote, and Trump was likely to get between 41.1% and 48.9% of the vote.

The actual result was that Trump won Florida with 48.6%, as compared with Clinton’s 47.4%. Those results were within our poll’s margin of error, meaning we were correct to declare it “too close to call” – and we would have been wrong to say Clinton was ahead.

2024 will be a close election

In the current election cycle, many media reports about polls are not including information about the margin of error.

Leaving out that information, or downplaying its significance, may help media outlets provide a quick, simple picture about the state of the race. Technology can seem precise in the modern age of the internet and artificial intelligence.

But polling is not as precise. It is an inexact science. It’s a pollster’s job to capture snapshots of the complexities of human nature at a particular time. People’s minds can change, and new information can arise as the campaigns unfold.

With the presidential election in its final weeks, our polls have been finding a fairly tight and steady race, with most voters telling us their minds are made up. Because the difference between the presidential candidates is within the margin of error in swing states, the election polling in autumn 2024 is telling Americans to hold their breath and make sure they vote, because it is likely to be a squeaker.

Doug Schwartz is affiliated with the American Association of Public Opinion Research (AAPOR).

– ref. Why the margin of error matters more than ever in reading 2024 election polls – a pollster with 30 years of experience explains – https://theconversation.com/why-the-margin-of-error-matters-more-than-ever-in-reading-2024-election-polls-a-pollster-with-30-years-of-experience-explains-240633

MIL OSI – Global Reports –

January 24, 2025

MIL-OSI Global: This Atlanta neighborhood hired a case manager to address rising homelessness − and it’s improving health and safety for everyone

Source: The Conversation – USA – By Ishita Chordia, Ph.D. Candidate in Information Science, University of Washington

Mural by artist Chris Wright on Metropolitan Avenue in East Atlanta. Art Rudick/Atlanta Street Art Map, CC BY-ND

Homelessness has surged across the United States in recent years, rising 19% from 2016 though 2023. The main cause is a severe shortage of affordable housing. Rising homelessness has renewed debates about use of public space and how encampments affect public safety.

The U.S. Supreme Court recently weighed in on these debates with its 2024 decision in Grants Pass v. Johnson. The court’s ruling grants cities the authority to prohibit individuals from sleeping and camping in public spaces, effectively condoning the use of fines and bans to address rising rates of homelessness.

East Atlanta Village, a historically Black neighborhood in Atlanta with about 3,000 residents, is trying something different. In the fall of 2023, with support from the Atlanta City Council, the mayor’s office and Intown Cares, a local nonprofit that works to alleviate homelessness and hunger, the neighborhood hired a full-time social worker to support people experiencing homelessness.

Michael Nolan, an Intown Cares social worker, is trained in an approach that emphasizes individual autonomy and dignity, recognizes that being homeless is a traumatic experience, and prioritizes access to housing. His role includes helping individuals get the documentation they need to move off the streets, such as copies of their birth certificates and Social Security cards. He also has a dedicated phone line that community members can use to alert him about dangerous situations that involve homeless people.

Michael Nolan, East Atlanta Village’s social worker, spends 40-plus hours weekly providing supplies, services and other help to people experiencing homelessness.

I am a researcher at the University of Washington studying programs and technologies that help urban neighborhoods flourish. I’m also a resident of East Atlanta Village and have helped the neighborhood organize and evaluate this experiment.

For the past year, my colleagues and I have collected data about the neighborhood social work program to understand how well it can support both people without housing and the broader community. Our preliminary findings suggest that neighborhood social work is a promising way to address challenges common in many neighborhoods with homelessness.

I believe this approach has the potential to provide long-term solutions to homelessness and improve the health and safety for the entire neighborhood. I also see it as a sharp contrast with the punitive approach condoned by the Supreme Court.

Resolving conflicts over public space

One of the people I interviewed while evaluating this initiative was Rebecca, a resident of East Atlanta Village who walks her dog in the local park every day. In the fall of 2023, she noticed that a man had moved into the park and set up a tent. At first, the area was clean, but within a few weeks there was garbage around the tent and throughout the park.

Rebecca felt that the trash was ruining one of the few green spaces in the neighborhood. She decided to contact Nolan. Nolan told her that he knew the unhoused man, was working with him to secure permanent housing and in the meantime would help him move his tent to a less-frequented space.

Such negotiations around public spaces are common challenges for neighborhoods with large homeless populations, especially in dense urban areas. Other examples in our data included conflicts when a homeless person began sleeping in his car outside another resident’s home, and when a homeless man wandered into a homeowner’s yard.

The standard approach in these situations is to fine, ban or imprison the unhoused individual. But those strategies are expensive, can prolong homelessness and do little to actually resolve the issues.

In contrast, hiring a social worker has enabled East Atlanta Village to resolve conflicts gently, through conversation and negotiation. The solutions address concerns about public health and safety and also offer people without homes an opportunity for long-term change.

Meeting basic needs

Over the past year, this program has helped 13 people move into housing. Nolan has facilitated over 180 medical and mental health care visits for people living on the street.

Eighty-six people have been connected to Medicaid, food assistance or Social Security benefits. Thirty-five people have health care for the first time, and six people have started receiving medication for their addictions.

Research shows that addressing people’s basic needs by helping them obtain food, medicine, housing and other necessities not only supports those individuals but also produces cascading benefits for the entire community. They include reduced inequality, better health outcomes and lower crime rates.

Managing mental and behavioral health

Studies have found that about two-thirds of unhoused individuals struggle with mental health challenges. Unmet mental and behavioral health needs can contribute to unsafe and illegal behavior.

The United States does not have a comprehensive system in place for supporting people who are living on the street and struggling with chronic mental and behavioral health challenges. While much more infrastructure is needed, in East Atlanta Village, Nolan is able to check in on people experiencing homelessness, work with clinics to deliver medication for addiction and mental health needs and alert community members about dangerous situations.

As an example, in December 2023 a homeless man was arrested in East Atlanta Village for trespassing, stealing mail and other erratic behavior. When concerned residents posted to the neighborhood Facebook group, Nolan responded that he knew the man well, that this behavior was not typical and that he would look into the situation.

Nolan later updated his post, commenting that the man had been arrested but that he would “continue to follow up and ensure that his current behaviors do not return upon his release.”

In other examples, Nolan has helped de-escalate situations when people experienced mental health episodes in local coffee shops and churches.

A model for other cities

Cities around the U.S. have decisions to make about addressing homelessness and its associated challenges. Neighborhood social work is not a magic bullet, but my colleagues and I see it as a promising approach to address the most common challenges that neighborhoods with high rates of homelessness face.

East Atlanta Village is currently working with the Atlanta City Council to renew funding for this program, which cost US$100,000 in its initial year. We hope that other neighborhoods also consider this strategy when deciding how to address homelessness in their own areas.

Ishita Chordia is affiliated with the East Atlanta Neighborhood Association. She volunteers for the neighborhood association and has helped organize and evaluate the neighborhood social work program.

– ref. This Atlanta neighborhood hired a case manager to address rising homelessness − and it’s improving health and safety for everyone – https://theconversation.com/this-atlanta-neighborhood-hired-a-case-manager-to-address-rising-homelessness-and-its-improving-health-and-safety-for-everyone-236466

MIL OSI – Global Reports –

January 24, 2025

MIL-OSI Global: North Carolina is not really a red or blue state − and that makes political predictions much more difficult

Source: The Conversation – USA – By Christopher A. Cooper, Professor of Political Science & Public Affairs, Western Carolina University

Lt. Gov. Mark Robinson shares the stage with former U.S. President Donald Trump during a 2022 rally in Selma, N.C. Allison Joyce/Getty Images

For all its prominence as a key battleground state, North Carolina hasn’t done much swinging in U.S. presidential elections.

The last time a majority of North Carolinians voted for a Democratic candidate was 2008 for Barack Obama. The time before that was 1976 for Jimmy Carter. In the past 12 presidential elections, Republicans have won 10. Those Republicans include Donald Trump in 2016 and 2020.

But as I demonstrate in my 2024 book, “Anatomy of a Purple State: A North Carolina Politics Primer,” simply looking at the outcome of presidential voting gives a skewed understanding of voting behavior in other elections across the state.

Consider 2020 again. While it is true that Trump won North Carolina’s 15 electoral college votes – it now has 16, based on 2020 U.S Census Bureau data — his margin of victory was only about 74,000 votes out of some 5.4 million votes cast. It was the smallest margin of any state that Trump won.

Part of the reason is the nearly even split among voters in the two major parties and the emergence of registered voters who claim they are unaffiliated.

As of September 2024, North Carolina had 7.6 million registered voters. Of these, the largest group at 38% were registered as unaffiliated, followed by registered Democrats at 32% and registered Republicans at 30%.

Despite being considered a red state, North Carolina’s congressional delegation is split evenly between Democrats and Republicans with seven each. In addition, four of the state’s 10 statewide, elected Council of State officeholders, including Gov. Roy Cooper, are Democrats.

In no other Southern state does a single elected Democrat hold a similar statewide seat.

Though both of North Carolina’s U.S. senators are Republicans and the GOP holds supermajorities in both houses of the state Legislature, North Carolina is not entirely red or blue. It is undeniably purple – and that gives rise to further uncertainty over how the state will vote in the 2024 presidential election.

The Kamala Harris factor

Before U.S. President Joe Biden dropped out of the race in July 2024, polls showed that he lagged behind Trump by 5 percentage points in North Carolina.

As in many other battleground states, it appeared that Trump had a small but fairly durable lead over Biden.

Vice President Kamala Harris campaigns in Greenville, N.C., on Oct. 13, 2024.
Alex Wong/Getty Images

But soon after Vice President Kamala Harris became the Democratic nominee, several national polls showed Harris had an immediate bump and closed the gap – in some polls actually taking a lead. Trump has since regained a slight lead – less than a percentage point – in one October 2024 poll.

But Harris’ impact wasn’t just on national polls.

For the first time in years, Democratic Party registration began to exceed Republican Party registration in the state.

From July 20-26, 2,351 people registered as Democrats in North Carolina – a 44% increase compared with the previous week. During the same period, Republican and unaffiliated voter registrations were down 23% and 14%, respectively, from the previous week.

The rise and fall of Mark Robinson

In spring 2024, during the height of primary season, Trump stepped into the North Carolina gubernatorial race by endorsing Lt. Gov. Mark Robinson, a Black Republican with a history of derogatory comments about Muslims and members of the LGBTQ community.

“This is a Martin Luther King on steroids,” Trump said of Robinson during a rally in Greensboro, North Carolina, on March 2, 2024.

Given Trump’s two wins in the state, his endorsement was expected to help Robinson beat Democrat Josh Stein in one of the nation’s most competitive state elections.

But Trump’s enthusiasm all but vanished after a series of negative stories about Robinson. They included a Sept. 19, 2024, CNN report alleging that Robinson frequented a porn web site called “Nude Africa” years ago where he described himself as a “Black Nazi.” Robinson also allegedly made a number of misogynistic and racist statements such as “slavery is not bad.”

Robinson denied the allegations and called the CNN report “salacious tabloid lies.”

Trump made another campaign stop in Wilmington on Sept. 21, 2024. Robinson, who had frequently appeared with Trump at previous North Carolina rallies, was not on the stage.

Polling conducted after CNN’s bombshell report showed an election that had shifted from competitive to one where the Democrat Stein is favored by a large margin to become North Carolina’s governor.

It is unclear whether Robinson’s apparent demise will affect the top of the ticket – or other state GOP candidates.

Natural disasters

Hurricane Helene hit western North Carolina on Sept. 28 and brought high winds, flooding, an estimated US$47 billion in property damages and 250 deaths.

It also caused questions about access to voting in areas devastated by Helene and then, two weeks later, Hurricane Milton.

A woman in North Carolina places an American flag near a mobile home that was destroyed in October 2024 by Hurricane Helene.
Mario Tama/Getty Images

Twenty-nine counties in North Carolina were affected by the storm, although 13 counties received the brunt of the damage. Analysis of data from the North Carolina Board of Elections reveals that Trump led Biden by about a 10 percentage-point margin among voters in those affected counties.

Given this, lower turnout in this region might hurt Trump more than Harris. It’s little surprise then that the Trump campaign has called for expanding voting access in those areas.

But there’s no way to know who will receive North Carolina’s 16 Electoral College votes. Such is the unpredictable politics of a purple state.

Christopher A. Cooper 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. North Carolina is not really a red or blue state − and that makes political predictions much more difficult – https://theconversation.com/north-carolina-is-not-really-a-red-or-blue-state-and-that-makes-political-predictions-much-more-difficult-240844

MIL OSI – Global Reports –

January 24, 2025

MIL-OSI Global: Many wealthy members of Congress are descendants of rich slaveholders − new study demonstrates the enduring legacy of slavery

Source: The Conversation – USA – By Neil K R Sehgal, PhD Student in Computer & Information Science, University of Pennsylvania

A statue of Jefferson Davis, second from left, is on display in Statuary Hall on Capitol Hill in Washington. A slaveholder, Davis represented Mississippi in the Senate and House before the American Civil War. AP Photo/Susan Walsh, File

The legacy of slavery in America remains a divisive issue, with sharp political divides.

Some argue that slavery still contributes to modern economic inequalities. Others believe its effects have largely faded.

One way to measure the legacy of slavery is to determine whether the disproportionate riches of slaveholders have been passed down to their present-day descendants.

Connecting the wealth of a slaveholder in the 1860s to today’s economic conditions is not easy. Doing so requires unearthing data for a large number of people on slaveholder ancestry, current wealth and other factors such as age and education.

But in a new study, we tackled this challenge by focusing on one of the few groups of Americans for whom such information exists: members of Congress. We found that legislators who are descendants of slaveholders are significantly wealthier than members of Congress without slaveholder ancestry.

How slavery made the South rich

In 1860, one year before the Civil War, the market value of U.S. slaves was larger than that of all American railroads and factories.

At the time of emancipation in 1863, the estimated value of all enslaved people was roughly US$13 trillion in today’s dollars. The lower Mississippi Valley had more millionaires, all of them slaveholders, than anywhere else in the country.

Some post-Civil War historians have argued that emancipation permanently devastated slave-owning families.

More recently, however, historians discovered that, while the South fell behind the North economically immediately following emancipation, many elite slaveholders recovered financially within one or two generations.

They accomplished this by replacing slavery with sharecropping – a kind of indentured servitude that trapped Black farm workers in debt to white landowners – and enacting discriminatory Jim Crow laws that enforced racial segregation.

100 descendants of slaveholders

Using genealogist-verified historical data and financial data from annual congressional disclosures, we examined members of the 117th Congress, which was in session from January 2021 to January 2023.

Of its 535 members, 100 were descendants of slaveholders, including Democratic Sen. Elizabeth Warren and Republican Sen. Mitch McConnell.

Legislators whose ancestors were large slaveholders – defined in our study as owning 16 or more slaves– have a current median net worth five times larger than their peers whose ancestors were not slaveholders: $5.6 million vs. $1.1 million. These results remained largely the same after accounting for age, race and education.

Wealth creates many privileges – the means to start a business or pursue higher education. And intergenerational wealth transfers can allow these advantages to persist across generations.

Because members of Congress are a highly select group, our results may not apply to all Americans. However, the findings align with other studies on the transfers of wealth and privilege across generations in the U.S. and Europe.

Wealth, these studies find, often stays within rich families across multiple generations. Mechanisms for holding onto wealth include low estate taxes and access to elite social networks and schools. Easy entry into powerful jobs and political influence also play a part.

Privilege with power

But members of Congress do not just inherit wealth and advantages.

They shape the lives of all Americans. They decide how to allocate federal funds, set tax rates and create regulations.

This power is significant. And for those whose families benefited from slavery, it can perpetuate economic policies that maintain wealth inequality.

Beyond inherited wealth, the legacy of slavery endures in policies enacted by those in power – by legislators who may be less likely to prioritize reforms that challenge the status quo.

COVID-19 relief legislation, for example, helped reduce child poverty by more than 70% while bringing racial inequalities in child poverty to historic lows. Congress failed to renew the program in 2022, plunging 5 million more children into poverty, most of them Black and Latino.

The economic deprivation still experienced by Black Americans is the flip side of the privilege enjoyed by slaveowners’ descendants. The median household wealth of white Americans today is six times higher than that of Black Americans – $285,000 versus $45,000.

Meanwhile, federal agencies that enforce antidiscrimination laws remain underfunded. This limits their ability to address racial disparities.

Legislators in the House of Representatives debate the abolition of the 1836 gag rule, which prevented discussion of any laws concerning slavery.
MPI/Getty Images

The path forward

As the enduring economic disparities rooted in slavery become clearer, a growing number of states and municipalities are weighing some form of practical and financial compensation for the descendants of enslaved people.

Yet surveys show that most Americans oppose such reparations for slavery. Similarly, Congress has debated slavery reparations many times but never passed a bill.

There are, however, other ways to improve opportunities for historically disadvantaged populations that could gain bipartisan backing.

A majority of Americans, both conservatives and liberal, support increased funding for environmental hazard screening, which assesses the potential impact of a proposed project. They also favor limits on rent increases, better public school funding and raising taxes on the wealthy.

These measures would help dismantle the structural barriers that perpetuate economic disparities. And the role of Congress here is central.

Members of Congress do not bear personal responsibility for their ancestors’ actions. But they have an opportunity to address both the legacies of past injustices and today’s inequalities.

By doing so, they can help create a future where ancestral history does not determine economic destiny.

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

– ref. Many wealthy members of Congress are descendants of rich slaveholders − new study demonstrates the enduring legacy of slavery – https://theconversation.com/many-wealthy-members-of-congress-are-descendants-of-rich-slaveholders-new-study-demonstrates-the-enduring-legacy-of-slavery-239077

MIL OSI – Global Reports –

January 24, 2025

MIL-OSI United Kingdom: The UK welcomes the unanimous mandate renewal of the Multinational Security Support mission to Haiti: UK statement at the UN Security Council

Source: United Kingdom – Executive Government & Departments

Statement by Ambassador James Kariuki, UK Deputy Permanent Representative to the UN, at the UN Security Council meeting on Haiti.

Location:: United Nations, New York
Delivered on:: 23 October 2024 (Transcript of the speech, exactly as it was delivered)

Thank you President. I thank SRSG Salvador and Executive Director Russell for their briefings. I welcome the participation of the Permanent Representatives of Haiti and Kenya as well as Foreign Minister Álvarez Hill from the Dominican Republic in our meeting today.

And I would also like to thank Ms. Auguste Ducéna for joining us today. As you and the other briefers made clear, the crisis in Haiti continues to bring unimaginable daily suffering and misery to the Haitian people. This Council remains shocked and appalled by the barbarity and human rights abuses committed by gangs.

The UK welcomes the unanimous mandate renewal of the Multinational Security Support (MSS) mission to Haiti and pays tribute to Kenya’s leadership. We welcome the deployment of personnel from Kenya, Jamaica and Belize to the MSS as well as the pledged contributions from other nations. The MSS remains vital to supporting Haitian efforts to resolve instability and we commend the initial progress it has made alongside the Haitian National Police. It is important to ensure international security efforts are sustainable and support the Haitian government in addressing the root causes of the crisis.

We are also grateful to BINUH for their work to establish coordination between Haitian stakeholders, the MSS, and the international community. The UK has pledged over $6 million to support the deployment of the MSS through strengthening the mission’s human rights compliance framework. We expect the first tranche of funding to be released imminently.

The Transitional Presidential Council must work together for the benefit of the Haitian people. We urge Haitian political and civil society, with the active participation of women and youth, to seize this opportunity to create the conditions necessary for lasting change.

President, in a welcome step this Council decided to expand the UN Haiti sanctions designation list and for the first time targeted an individual responsible for financing destabilising gang activity.

In conclusion, we call on all political actors to work together to address Haiti’s serious challenges and to refrain from acting based on personal or partisan interests. There is a chance to bring the peace and security that the Haitian people need and deserve.

Published 23 October 2024

MIL OSI United Kingdom –

January 24, 2025

MIL-OSI United Kingdom: VR offers new opportunities for Social Work students

Source: Anglia Ruskin University

Published: 23 October 2024 at 13:30

Cutting-edge technology allows students to experience realistic scenarios without risk

Social workers of the future are now using cutting-edge virtual reality technology to replicate scenarios and complement their education at Anglia Ruskin University (ARU).

The new materials have been created at ARU by Vanessa Ferguson, Leighanne Wilson, Dr Marques Hardin and Paul Driver, and a partnership between ARU and Bloomsbury Publishers means that Social Work students at subscribing institutions are able to access the simulations via the Bloomsbury Social Work Toolkit.

An example scenario replicated by the technology is a simulated home visit, which gives students the opportunity to look around freely, spot any potential issues or signs of neglect, and click on hotspots to find out more information.

Beginning with a referral or initial case notes, learners are prompted to record their thoughts, concerns, and reflections. From there, they can complete a series of preparatory activities to ensure they are ready for their simulated home visit. These activities test learners’ knowledge of relevant legislation and help prepare them for real-world scenarios they may encounter in their social work practice.

All ARU students now have access to the technology through their online learning portal. The VR learning will complement the existing teaching and real-life placements that students undergo as part of their three-year undergraduate degree.

This year is the first time ARU’s Social Work course has included virtual reality technology. A recent Office for Students (OfS) grant means ARU is equipping its campuses in Cambridge, Chelmsford and Peterborough with state-of-the-art VR facilities to be used by a range of courses, including Nursing and Midwifery, as well as Social Work.

Vanessa Ferguson, Associate Professor and Lecturer in Social Work at ARU, said:

“A crucial part of a social worker’s role is the home visit, which has traditionally been challenging to replicate in a teaching environment and so students have relied on experience gained in placement.

“The VR simulation offers them the chance to replicate these home visits and provides a safe environment to discuss their findings with their peers and tutors.

“We are delighted to be partnering with Bloomsbury to help improve the experience for our Social Work students, as well as students across the country, and we look forward to developing new scenarios to enhance their learning further.”

Helen Caunce, Senior Publisher at Bloomsbury Publishers, said:

“We are excited to announce the launch of immersive 360° social work simulations. Helping to prepare students for their placements can be a challenge and these valuable resources will provide much-needed support as students enter a new stage in their journey.”

MIL OSI United Kingdom –

January 24, 2025

MIL-OSI Europe: Debates – Monday, 21 October 2024 – Strasbourg – Provisional edition

Source: European Parliament

Verbatim report of proceedings

413k

815k

Monday, 21 October 2024 – Strasbourg

Provisional edition

IN THE CHAIR: ROBERTA METSOLA
President

1. Resumption of the session

President. – I declare resumed the session of the European Parliament adjourned on Thursday, 10 October 2024.

2. Opening of the sitting

(The sitting opened at 17:03)

3. Statements by the President

President. – Dear colleagues, on the results of the presidential election and referendum in Moldova, the people in Moldova have chosen their future: they chose hope, stability, opportunity. They chose Europe.

(Applause)

The European Parliament strongly condemns any activities and interferences in Moldova’s presidential election and constitutional referendum on EU integration.

We are proud to be one of Moldova’s strongest allies and supporters. We understand that Moldova’s future lies within the European Union and we fully support its EU accession path.

President Maia Sandu and her government have already made remarkable progress in implementing reforms. And while the road ahead may not always be easy, I want to assure our European Moldovan friends that the European Parliament will continue to be with them every step of the way.

Also, dear colleagues, on 16 October we marked 7 years since the brutal assassination of Daphne Caruana Galizia, a Maltese investigative journalist who exposed corruption and organised crime. Those who thought they could silence her were wrong. In fact, her work sparked a movement that echoes in every corner where we pursue a Europe that protects journalists, that respects the rule of law.

I am grateful to have known Daphne beyond her writing: as a woman battling the odds; as a mother who was so proud of the men her boys grew into; as a daughter, wife and sister who wanted more from her country. And she raised the bar for all of us in politics. But most of all, today I think about how we must keep Daphne’s memory alive; how the European Parliament will keep pushing for the truth, for justice and for accountability.

It is for this reason that the European Parliament is proud to be hosting the fourth edition of the Daphne Caruana Galizia Prize for outstanding journalism. And I take this moment to encourage you to attend the award ceremony this Wednesday in the Daphne Caruana Galizia Press Room, to honour the bravery of all those who continue to carry her legacy forward.

This House remembers her and we honour her legacy.

(Applause)

4. Approval of the minutes of the previous sitting

President. – The minutes and the texts adopted of the sitting of 10 October 2024 are available. Are there any comments? No? The minutes are therefore approved.

5. Composition of Parliament

President. – The competent authorities of Poland have notified me of the election of Hanna Gronkiewicz-Waltz to the European Parliament, replacing Marcin Kierwiński with effect from 10 October 2024.

I wish to welcome our new colleague and recall that she takes her seat in Parliament and its bodies in full enjoyment of her rights, pending the verification of her credentials.

6. Composition of committees and delegations

President. – The PfE Group has notified me of decisions relating to changes to appointments within the committees and delegations. These decisions will be set out in the minutes of today’s sitting and take effect on the date of this announcement.

7. Negotiations ahead of Council’s first reading (Rule 73)

President. – The TRAN Committee has decided to enter into interinstitutional negotiations ahead of Council’s first reading, pursuant to Rule 73 of the Rules of Procedure.

The positions adopted by Parliament at first reading, which constitute the mandates for those negotiations, are available on the plenary webpage, and their titles will be published in the minutes of this sitting.

8. Corrigenda (Rule 251)

President. – The competent committees have transmitted nine corrigenda to texts adopted by Parliament.

Pursuant to Rule 251, these corrigenda will be deemed approved unless, no later than 24 hours after their announcement, a request is made by a political group or Members reaching at least the low threshold that they be put to the vote.

The corrigenda are available on the plenary webpage. Their titles will be published in the minutes of this sitting.

9. Signing of acts adopted in accordance with the ordinary legislative procedure (Rule 81)

Marc Botenga (The Left). – Madame la Présidente, vous savez que, sur la base de l’article 188, les députés européens gagnent facilement 14 000 euros par mois. Pourtant, chaque année, notre groupe demande de baisser ces salaires pour que les députés soient un tout petit peu plus en phase avec la réalité des travailleurs, qui, eux, peinent à boucler les fins de mois. Chaque année, ce vote permet de démasquer les députés qui, d’une part, prêchent l’austérité et la misère pour les travailleurs, mais, d’autre part, s’octroient, eux, un salaire généreux de 14 000 euros par mois.

Mais aujourd’hui, en coulisses, vous nous dites que ce n’est plus acceptable et vous voulez empêcher ce vote – je sais bien, chers collègues, que vous ne voulez pas que l’on touche à vos privilèges. Vous nous dites que ces revenus sont garantis par d’autres textes. Mais justement, en refusant aujourd’hui de voter le budget nécessaire, nous pouvons ouvrir cette porte pour faire le premier pas et revoir tout cela.

L’année dernière, vous aviez permis ces amendements. Qu’est-ce qui a changé, qui ne serait plus vrai aujourd’hui? Serait-ce parce que la campagne électorale est terminée? Madame la Présidente, je vous prie, revoyez cette décision. La politique sert à servir et non à se servir.

President. – Thank you very much, Mr Botenga. I will give you the explanation.

You file a point of order under Rule 188, which is actually a point of order, but I will answer you. The amendments tabled by your group on the lines and figures of the general budget 2025 concerning salaries and allowances, etc., have been examined and declared inadmissible, simply because we want to apply the rules.

And I will tell you why: it is because they are in contradiction with the existing regulations, in other words, the Statute for Members of the European Parliament and the Council Regulation determining the emoluments of EU high-level public office holders, based on Articles 243 TFEU and 223 TFEU. So the right procedure would be to call on the responsible institutions to amend the mentioned regulations.

However, you will have seen as well, in this spirit, that the corresponding amendment that you tabled to the resolution on the general budget calling for this change has been declared admissible, because that can be declared admissible.

João Oliveira (The Left). – Senhora Presidente, quero expressar o meu total desacordo com a sua decisão discricionária e sem fundamento de recusar, sem justificação, a proposta de debate sobre o agravamento da situação humanitária em Gaza, na sequência das declarações do coordenador especial da ONU para o processo de paz no Médio Oriente. Na quinta-feira, a ONU declarou que mais de um milhão e oitocentos mil palestinianos enfrentam fome extrema. Ontem mesmo, aquele coordenador especial da ONU emitiu um comunicado falando de pesadelo, cenas horripilantes na zona norte, ataques israelitas implacáveis e uma crise humanitária cada vez pior e, cito, que «nenhum lugar é seguro em Gaza», condenando os contínuos ataques contra civis. Aquele responsável disse: «A guerra tem de parar agora».

Apesar de tudo isto ter acontecido em condições que permitiam que o debate aqui fosse feito, a senhora presidente recusou aceitar sequer a proposta. Desafio-a a colocar à votação este pedido de debate. Enquanto continuarem a chover bombas em Gaza, a morrer crianças, mulheres e civis, este debate será sempre urgente e imprescindível.

Virginie Joron (PfE). – Madame la Présidente, chers collègues, chers démocrates, chers légalistes, je souhaite faire un rappel au règlement. Son article 219 prévoit le respect de l’égalité des genres dans la composition des bureaux des commissions. Cette égalité n’est pourtant pas respectée, pas plus que le résultat des urnes, c’est-à-dire de la démocratie.

En effet, Madame la Présidente, vous avez accepté de ne pas respecter la démocratie en accordant une dérogation au principe de l’égalité des genres pour M. Weber dans plusieurs bureaux de commissions, ignorant par là même plus de 20 millions de nos électeurs.

Comment pouvez-vous accepter que la commission CONT, qui contrôle le budget de l’Union européenne – et qui doit donner l’exemple –, continue de ne pas respecter nos règles? Vous souhaitez exporter l’égalité des genres jusqu’au Kazakhstan ou encore lui consacrer une semaine en décembre, mais ce principe n’est déjà pas respecté au sein de la commission CONT, au cœur même de notre institution. En ne disposant pas d’une quatrième vice-présidence, la composition du bureau de la commission CONT viole notre règlement.

Madame la Présidente, je vous remercie de faire le nécessaire pour mettre un terme à cette hypocrisie et respecter notre devise, «Unie dans la diversité».

Manon Aubry (The Left). – Madame la Présidente, chers collègues, ça tombe bien, j’avais envie de vous parler de démocratie et de faire un rappel au règlement sur la base de l’article 154, qui traite des accords interinstitutionnels, pour évoquer l’état des négociations entre l’Union européenne et le Mercosur. Je vais commencer, chers collègues, par une question assez simple: qui trouve normal que le plus important accord de libre-échange jamais conclu par l’Union européenne soit en train d’être signé en catimini, sans que notre Parlement ait la moindre information, quelle qu’elle soit? Allez-y, dites-moi qui est d’accord avec cela et levez la main.

Vous le voyez bien – et j’ai fait le compte –, cela fait exactement cinq ans que la Commission européenne n’a pas donné ni publié le moindre compte-rendu officiel sur l’état des négociations. Bien entendu, cet accord de libre-échange aura un impact désastreux sur nos agriculteurs, qui souffrent déjà, sur la santé et sur la planète.

Mes chers collègues, c’est aussi un scandale démocratique. Comment accepter d’être ainsi tenus à l’écart? C’est pourquoi, Madame la Présidente, je vous prierais de demander des comptes à la Commission européenne afin qu’elle nous tienne enfin informés, parce qu’on ne peut pas se laisser ainsi «bananer». Il est temps!

President. – As you can see, your colleagues agree with you. This is something that has been an outstanding issue and we can put pressure on the incoming Commission to respect the deadlines that we have set.

10. Order of business

Terry Reintke, on behalf of the Verts/ALE Group. – Madam President, dear colleagues, last Friday, an Italian court invalidated the detention of 16 asylum applicants sent to Albania by the Italian Government. Italy is a democracy, with an independent judiciary and courts that can freely rule on existing cases, also to stop illegal actions by the government. Still, members of the ruling far-right coalition, including members of the government, attacked this independent judiciary and the judges that ruled in this case.

Colleagues, we cannot stay silent on this: rule of law, including separation of powers, is a key fundament of the European Union. We have waited for far too long regarding Hungary to speak up. We cannot make the same mistake again. That is why my group requests a debate with the following title: ‘Commission statement regarding the ruling of the Italian court related to the agreement between Italy and Albania on migration’.

Tomas Tobé (PPE). – Madam President, I think it is clear and already stated that this request should not be supported. It’s very clear. It’s not about a protocol about Italy and Albania, as you say in what you’re asking for. Also, it’s not even a final decision in the court, and it’s also a decision based on an EU directive that actually will be replaced once the new migration pact is fully adopted.

I think it’s also about the general question, because we had a request in plenary before, from the Patriots, about another decision. We could, of course, make this Chamber nothing else than debating different court decisions. I think when it comes to migration policy, we should be serious, we should be balanced, and we should use our time to actually debate real things and not only try to make court decisions that you may like or not like to be in favour of them.

So that is why the EPP will reject this request.

Fabienne Keller, au nom du groupe Renew. – Madame la Présidente, nous savons que le nouveau pacte sur la migration et l’asile et la politique migratoire ont occupé l’essentiel du Conseil européen de la fin de la semaine dernière. C’est un sujet de préoccupation pour nos concitoyens.

Nous sommes fiers, tous ici dans cette Chambre, d’avoir adopté un pacte, d’avoir trouvé un équilibre pour traiter la question de la migration illégale, tout en respectant nos valeurs. Nous savons aussi, chers collègues, qu’il nous faudra encore deux années pour le mettre en œuvre. Nous ne pouvons dès lors pas accepter qu’un État membre utilise une voie détournée pour contourner ce que prévoit le pacte et les règles précises que nous avons définies ensemble.

C’est pourquoi nous proposons de rebondir sur la proposition des Verts et d’ajouter la dimension «mise en œuvre du pacte» dans son ensemble, c’est-à-dire vis-à-vis de ses devoirs, de l’application de ses règles, mais aussi des garanties des droits de l’homme et du respect des droits fondamentaux que nous y avons intégrés. C’est dans cet esprit que nous proposons ce débat amendé.

President. – Ms Reintke, do you agree with the alternative proposal? So the Green Group does not. Therefore, I will put the original request by the Green Group to a vote by roll call.

(Parliament rejected the request)

I now ask Ms Keller: do you want to keep your request? Yes, Ms Keller wants to keep the request, so the proposal from the Renew Group is now put to a vote by roll call.

(Parliament rejected the request)

So the agenda remains unchanged.

The agenda is now adopted and the order of business is thus established.

11. International Day for the Eradication of Poverty (debate)

President. – The first item is the debate on Parliament’s statement on the International Day for the Eradication of Poverty (2024/2881(RSP)).

Dear colleagues, last week, on 17 October, we marked the International Day of the Eradication of Poverty. Poverty is not inevitable. It is a challenge that we can – and we must – overcome. Across the world, far too many people still struggle. Far too many people do not have access to clean water, to clothing, shelter, health care or education. And far too many people are excluded from society, denied the possibility of a dignified job, not given the opportunities to achieve their potential. Given that 1 in 5 Europeans and 1 in 4 children under the age of 18 in the European Union is at risk of poverty or social exclusion, the reality is as serious as it is alarming.

Here in the European Parliament, we refuse to be bystanders. We are proud of all the work we have done already in making our Europe a front-liner in the fight against poverty, and yet more work remains. Poverty is a symptom of inequality, and we understand the responsibility that we bear to ensure that every person – no matter who they are or where they come from – has a chance to live with dignity, with purpose.

This is why the European Parliament is looking forward to seeing the European Union’s first anti-poverty strategy that was announced in the 2024-2029 Political Guidelines of the European Commission. This is a positive step forward. By investing in education, affordable housing and job creation, by ensuring our social safety net works, we can lift millions out of poverty.

This House will continue turning our policies into concrete action, and we will continue to fight for fairness, for dignity and for opportunity for all.

Gabriele Bischoff, im Namen der S&D-Fraktion. – Frau Präsidentin, werte Kolleginnen und Kollegen! In der Tat: Wir sprechen inzwischen von 100 Millionen Menschen, die in Europa, einem der reichsten Kontinente, von Armut und sozialer Ausgrenzung bedroht sind; Frau Präsidentin hat es gesagt: mehr als jeder fünfte Mensch hier in Europa. Und dieser Internationale Tag zur Abschaffung der Armut, der muss wirklich ein Weckruf hier sein, weil wir mehr brauchen.

Ja, wir brauchen eine Armutsstrategie, aber wir brauchen auch konkrete Politiken, und eine davon ist in der Tat, dass wir ein festes Budget von 20 Milliarden in einem eigenen ESF+ für die Kindergarantie brauchen, um die 19 Millionen Kinder – 19 Millionen, denen die Zukunft gestohlen wurde – besser vor Armut zu schützen, und wir brauchen Maßnahmen.

Aber wir dürfen nicht nur national bleiben, sondern nach den Verträgen ist Armutsbekämpfung auch das Hauptziel der europäischen Entwicklungspolitik. Das muss so bleiben und muss unser Kompass sein zur Bekämpfung der Armut auf der ganzen Welt.

Malika Sorel, au nom du groupe PfE. – Madame la Présidente, chers collègues, 34 % des Européens renoncent à des soins médicaux, et nombre de jeunes, de nos jeunes, sont en grande souffrance. C’est la tiers-mondisation de nos nations. L’Europe d’Hippocrate, de Pasteur et de Marie Curie n’est même plus capable de soigner les siens, tandis qu’elle érige en dogme la préférence extra-européenne.

Alors que la pauvreté touche chacune de nos nations, la Commission va verser 1,8 milliard d’euros à la Moldavie. De plus, l’immigration issue des couches sociales les plus pauvres bat des records. Pour Enrico Letta, aucune réforme, aucun progrès ne sera possible sans la participation des citoyens. Cette participation, je vous le dis, est impossible, car ces conditions ne sont pas réunies.

Relisons Jean-Jacques Rousseau: «Voulons-nous que les peuples soient vertueux? Commençons donc par leur faire aimer la patrie: mais comment l’aimeront-ils si la patrie ne leur accorde que ce qu’elle ne peut refuser à personne?». Nous sommes là au cœur du mal qui détruit l’Europe. Chers collègues, j’aimerais comprendre: est-ce l’indifférence – ou pire: le cynisme – qui conduit à nous lamenter sur une pauvreté que nous organisons?

Chiara Gemma, a nome del gruppo ECR. – Signora Presidente, onorevoli colleghi, la povertà non è soltanto una questione economica: è una piaga sociale che mina la dignità e la speranza delle persone. Combatterla è un dovere morale e una responsabilità politica che deve impegnarci tutti, senza eccezioni.

C’è un aspetto che merita una particolare attenzione e che troppo spesso viene trascurato: la condizione delle persone con disabilità, che sono tra le più esposte al rischio di povertà. I dati parlano chiaro: il 28,8% delle persone con disabilità in Europa vive in condizioni di povertà e di esclusione sociale.

Questo dato è inaccettabile, soprattutto se pensiamo che stiamo parlando di una categoria già vulnerabile, che deve affrontare non solo le difficoltà economiche, ma anche le barriere strutturali, culturali e sociali che la società impone.

Non possiamo tollerare che in un’Europa che si proclama “paladina dei diritti umani e dell’inclusione”, quasi un terzo delle persone con disabilità viva in condizioni di disagio economico. La nostra forza si misura dalla capacità di includere chi è già più debole.

Charles Goerens, au nom du groupe Renew. – Madame la Présidente, Monsieur le Commissaire, la lutte contre la pauvreté doit se manifester tant à l’intérieur qu’à l’extérieur de l’Union européenne. Cela étant, la pratique semble confirmer ce propos.

L’Union européenne n’a certes pas réussi à éliminer la pauvreté, comme chacun de nous le souhaiterait. À sa décharge, rappelons que ses compétences sont insuffisantes pour régler ce problème. Les États membres, par contre, disposent de moyens ô combien supérieurs à ceux dont dispose la Commission. À ce propos, l’on constate que les États membres qui ont de meilleurs résultats en matière de lutte contre la misère chez eux sont souvent les mêmes que ceux qui s’impliquent le plus dans la coopération au développement en faveur des pays du Sud.

Cette corrélation n’est pas anodine. Elle nous fait penser que la solidarité est indivisible. C’est donc une question de cohérence, une question d’équité, qui s’applique dans le même esprit tant à l’intérieur qu’à l’extérieur de l’Union européenne. Pour appuyer mon propos, il suffit de lire les rapports annuels du Programme des Nations unies pour le développement et d’en comparer les résultats à ceux obtenus en matière de lutte contre la misère au sein des États membres.

Leila Chaibi, au nom du groupe The Left. – Madame la Présidente, Monsieur le Commissaire, chers collègues, en France, 1 jeune sur 4 vit sous le seuil de pauvreté, et 1 étudiant sur 2 est obligé de sauter un repas par jour. Vous vous souvenez de ces files d’attente interminables devant l’aide alimentaire pendant la pandémie de COVID-19? Ces images, elles avaient fait le tour du monde. C’était il y a quatre ans. Et que s’est il passé depuis? Rien.

Pourquoi l’Union européenne ne demande-t-elle pas aux gouvernements de proposer le repas à 1 euro pour les étudiants? Pourquoi continuons-nous à agir comme si la pauvreté était un phénomène météorologique, une espèce de catastrophe naturelle? Non, la pauvreté ne tombe pas du ciel. Sans inégalités, il n’y a pas de pauvreté. Bernard Arnault, l’homme le plus riche du monde, a vu sa fortune dépasser les 200 milliards d’euros, soit plus que le PIB de la Slovaquie. Imaginez ce qu’on pourrait faire avec cette somme. On pourrait faire 200 000 hôpitaux, 40 000 écoles.

Vous voulez agir contre la pauvreté? Taxez les plus riches, taxez les multinationales, allez chercher l’argent là où il est.

Petar Volgin, от името на групата ESN. – Скъпи колеги, дълго време силните на деня обясняваха, че когато глобализацията окончателно победи, когато бъдат премахнати всички държавни граници и всички държавни пречки пред бизнеса, ние ще станем богати и щастливи. Разказваха ни, че когато милионерът стане милиардер, това ще направи и нас, обикновените хора богати. Защото нали според постулатите на така наречената „трикъл даун” икономика („trickle down economy“) или икономика на просмукването, приливът повдигал всички лодки. Само че действителността се оказа много по-различна.

Да, богатите ставаха още по-богати, милионерите ставаха милиардери, но лодките на обикновенните хора не се повдигаха, даже много от тях потънаха. Колкото повече държавата минаваше на заден план, толкова повече се увеличаваха неравенствата и бедността. Има само един начин, по който може да бъде преодоляно това. Държавата отново трябва да стане активна. Тя трябва да създаде такива правила, които да помагат на работещите хора да живеят по-добре. Наднационалните институции няма да направят това. Те се грижат за интересите на мега корпорациите. Нужна ни е повече държава и по-малко транснационални институции.

Georgiana Teodorescu (ECR), în scris. – Prin acțiunile sale, Uniunea Europeană s-a declarat responsabilă pentru înverzirea Globului, pentru eliminarea surplusului de carbon, pentru tot ce e „eco” și „bio” la nivel mondial, pentru salvarea migranților, precum și pentru încetarea unor războaie din afara granițelor UE.

Totuși, când vine vorba de sărăcia în care trăiesc unii dintre europeni, mai ales despre construirea unor programe concrete și asigurarea unui buget corespunzător pentru acest lucru, rămânem la stadiul de discuții frumoase. Iată că marcăm o zi oficială pentru eradicarea sărăciei, în loc să o eradicăm efectiv. În România, unul din cinci cetățeni trăiește sub pragul sărăciei, cifrele fiind mult mai ridicate în rândul tinerilor. Pe acești oameni, ziua internațională a eradicării sărăciei nu îi ajută. Este nevoie de bani și de măsuri concrete.

Sigur, e onorabil să avem o astfel de zi, nu ne opunem, dar haideți să ne concentrăm mai mult pe fapte și mai puțin pe discursuri pompoase, care au zero efect în asigurarea hranei copiilor săraci ai Europei sau în oferirea unor programe care să-i încurajeze să-și continue studiile.

12. Address by Enrico Letta – Presentation of the report ‘Much More Than a Market’

President. – The next item is the debate on the address by Enrico Letta – presentation of the report ‘Much more than a market’.

We have today with us former Prime Minister of Italy Enrico Letta to present his report ‘Much more than a market’. Caro Enrico, welcome back to the European Parliament. Your report came at an extremely timely moment.

As we embark on a new legislative term, this House recognises that the future of Europe will be defined by our ability to make ourselves more competitive; how we are able to grow our economies and pay back our debts, to fuel our innovation and turn seemingly impossible challenges into opportunities, to create jobs and futures with dignity. That is what our people are asking from us. It is why Europeans went to the polls last June, and what our voters are expecting us to deliver on.

To do all this, we do not need to reinvent the wheel. We already have many tools in place. For over 30 years, the single market has been our Union’s unique growth model, a powerful engine of convergence and our most valuable asset. But we are again at a moment where the single market is in need of a boost.

The time is now for us to renew our engagement to it, to deepen it, especially when it comes to energy, to finance, telecoms, banking, capital markets and services – to bring it back on par with the needs of the current context.

Boosting it also means doing more to level the playing field, to reduce excessive bureaucracy and to cut red tape. This is how our single market works best. So, Mr Letta, dear Enrico, the European Parliament is eager to hear your findings and recommendations on how we can bolster our single market and make Europe more competitive.

Enrico Letta, author of the report ‘Much more than a market’. – Madam President, esteemed Members, I would like to express my deepest gratitude to President Roberta Metsola, the Members of the European Parliament and the groups. It is a particularly emotional moment for me to do so in this Chamber once chaired by David Sassoli. The last time I spoke from this very place was to commemorate him some days after his death. His legacy and his commitment to European values continues to guide and inspire all of us.

I must also express my deep gratitude to those who commissioned this report and entrusted me with the responsibility to undertake it: the Belgian and Spanish presidencies of the Council of the European Union, along with the President of the Commission and the President of the European Council. It is a great honour for me to be here today, especially after a year of engaging with the European Parliament: more than 20 meetings, groups, committees – the IMCO Committee in particular, subcommittees fostering meaningful dialogue and collaboration.

This is a decisive moment for the life of the report. The pragmatic proposals it contains can only make a real impact if this very Chamber embraces and advances them.

This report is not mine. I bear full responsibility for it, of course, but above all, it is the result of a collective exercise developed during a journey that spanned almost the entire European Union, reaching out also to candidate countries for accession and non-EU countries that share with us the single market. Throughout this journey across Europe, I visited 65 cities and took part in over 4 400 meetings, I engaged open social dialogue with all stakeholders. This was not an ideological pursuit, but a pragmatic endeavour. I traveled across Europe and engaged with all stakeholders to find common ground for tangible solutions. And there is one thing I want to stress out here: all the proposals contained in the report do not require Treaty changes. They are very concrete and can be implemented immediately.

Madame la Présidente, par cette méthode j’ai cherché à honorer l’esprit même du projet d’intégration européenne. Un projet qui s’épanouit dans le dialogue entre les grands et les petits pays, entre les grandes villes et les petites communes, entre des modèles divers de relations industrielles, ainsi qu’entre différentes cultures et histoires. C’était la vision de Jacques Delors, à la mémoire duquel ce rapport est dédié.

Jacques Delors visait à poser une base solide sur laquelle les grands idéaux européens pourraient prospérer. Il reconnaissait que la passion seule ne pouvait bâtir l’Europe. Il fallait des projets pragmatiques, qui améliorent concrètement la vie des citoyens. Jacques Delors croyait fermement que le succès de l’intégration européenne ne se mesurait pas à l’aune des bénéfices pour les États, mais à l’amélioration de la vie des citoyens. C’est cette approche que j’ai poursuivie et qui m’a inspiré en rédigeant ce rapport.

The single market has been our greatest achievement. It has fuelled prosperity and it embodies our values. But it was born in a very different era, an era in which both the European Union and the world were smaller, simpler and far less interconnected. More than 20 years ago, we succeeded in integrating our currencies. We created the euro. We integrated this critical dimension which carries important emotional and practical significance for our citizens.

However, we have not achieved the same level of integration in other key strategic sectors that, paradoxically, would have been far less difficult to integrate: sectors that are now vital for the future of the European economy, in particular. At the inception, three sectors were deliberately kept outside the single market, considered too strategic to extend beyond national borders: finance, electronic communications and energy. In reality, when it comes to these issues, Europe is merely a geographical expression. We are 27, not 1, on telecommunication. We have 27 financial markets, not 1 financial market. The exclusion of these sectors from the completion of the single market was motivated by the belief at that time that domestic control would better serve strategic interests.

In an increasingly interconnected world and a vastly larger global market, the national dimension is no longer sufficient. It is becoming a ceiling in these sectors. We need to address this paradox, which is one of the main drivers of the current gap with other global powers, and we must act now. Inertia or inaction on this front risks reducing our choices to a single question: whether we want to become a colony of the United States or of China in ten years’ time. Telecommunications, energy and financial markets must be integrated, as we did for the euro. The integration of these sectors is a precondition for our competitiveness and security. There can be no security without independence in connectivity, energy and finance.

In the report, I propose a roadmap for telecommunications to move from 27 separate markets to 1, from the approximately 80 operators of today to 10, 20 operators. I am not suggesting that we mimic the American or Chinese models here in Europe. These models do not adequately protect consumers as we aim to do in the European Union, but with a single telecoms market, 10, 20 operators can compete while ensuring consumer protection. At the same time, they will be larger and stronger on the global stage. That is what is not happening today with the fragmentation in 27 different markets.

For energy, the key mission is to invest in interconnections. We must reduce the energy prices in Europe, and the only way is to maximise the diversification of energy sources through a highly interconnected European system. We win through cooperation, not through fragmentation. However, the most important sector to integrate is the financial one, which is in reality today the sum of 27 separate financial markets. This fragmentation is a major factor in Europe’s loss of competitiveness, creating the paradox of having a single currency, the euro, without a fully integrated financial market. We are falling behind the US, which has surged ahead in this sector over the last 15 years, and we are paying a steep price for it. Without a unified financial system, we will be unable to create a new paradigm for economic development, unable to innovate and unable to ensure our security.

Having unified and significantly larger financial markets would allow Europe to invest in innovation and support its real economy. It would also enable Europe to effectively finance the Green Deal.

During my journey, one topic has emerged as a priority everywhere: how to support and finance the just, green and digital transition. Let’s be very clear: the Green Deal remains the top priority for the coming years. It is no longer a question of whether Europe will pursue it, but rather how it will be achieved. The legislative term began with a debate on how to approach the Green Deal. In the report, I propose solutions for implementing it that reduce the potential social and economic consequences for Europe. We cannot allow the Green Deal to become a luxury that only the wealthy can afford in our societies. The social and economic dimensions of the Green Deal are essential.

If we are committed to this, we must also clearly outline how we intend to finance it. Otherwise, we risk engaging in an unrealistic declaration of intent. Without a concrete plan on how to finance it, political backlash and delays are inevitable – outcomes that neither the EU nor the planet can afford. That is why all our energy must be focused on financially supporting the transition. We need an innovative set of tools that can leverage both public and private financing, as both are crucial to meet our massive investment needs.

There are differing views within the European Union on how to address this funding challenge. We have to be honest: there are often opposing views on this matter. It makes no sense to ignore or hide these differences. But I firmly believe that the single market is not only a fundamental tool, but also the common ground where these diverse positions can converge.

The initial priority should be to mobilise private capital, where the EU lags behind and has enormous untapped potential. Let me offer two clear as significant examples. Each year, EUR 300 billion of European savings cross the Atlantic to fuel the American financial markets and their real economy. This happens because our financial markets, fragmented as they are, are unable to absorb these resources. But the effect is a paradox. This money ultimately strengthens American companies, which then return to Europe to buy our European companies with our European savers’ money.

We need a change in mindset. The current lack of integration of Europe’s financial markets is unacceptable. Take also the case of international payment systems: every day, each of us makes several credit or debit card transactions, billions of transactions in total. Yet Italians aren’t happy using a French system. The French aren’t happy using a German system. The Germans aren’t happy to use a Spanish one. As a result, we are all end up being happy to rely on an American system. This example alone highlights the inefficiency of our fragmented approach.

We have to be pragmatic, not ideological. The fragmentation of Europe’s financial markets plays directly into the hands of other global players, keeping Wall Street and China satisfied and very happy. And this is why, in the report, I proposed the creation of the savings and investments union, building on the incomplete capital markets union. By fully integrating financial markets, the savings and investments union aims to close the gap in a sector where we have enormous potential and provide a concrete tool to finance our ambitions.

What I want to emphasise is the importance of forging a strong link between the fair, green and digital transition and the financial integration of the single market. One of the main reasons the capital markets union failed to succeed is that it was seen as an end in itself. True financial market integration in Europe will only be achieved when both citizens and policymakers recognise that this integration is not just beneficial for the financial sector, but it is essential for achieving broader, more critical goals such as the fair, green and digital transition.

Ultimately, progress in the area of private investments will enable us to tackle the role, structures and regulations governing public investments. As I have noted, this is a divisive issue, but it is essential that we confront it openly. Closing the current gap in private investments is a critical first step in moving this debate forward. The massive investment needs of the European Union require both private and public sources of funding. We must strike a balance between different sensibilities and pave the way for a more constructive, integrated and efficient funding strategy.

This also extends to the debate on state aid. In the report, I have presented some ideas to overcome the current impasse. We need new solutions that can swiftly mobilise targeted national public support for industry, while also preventing fragmentation of the single market and ensuring a level playing field.

Combining private resources and public investments, considering various instruments, is the only way to achieve a compromise in this chamber and within the European Council. Finance, energy and telecommunications are interconnected and serve as critical boost within a broader concept of security. However, the current geopolitical situation compels us to accelerate the strengthening of our common defence capabilities.

Greater integration within our common market can serve as a pivotal tool to overcome existing duplications and inefficiencies, yet substantial investments are required. We need to act on this front, and we must do swiftly in order to preserve a crucial level of autonomy in our foreign security and defence policy.

The EU must continue its unwavering support for Ukraine in its fight for freedom, while also striving to play a pivotal role in ending the conflict in the Middle East. Both are essential steps towards securing long-term peace and stability. To address this significant challenge, we must consider innovative financing mechanisms here as well. In the report, I propose several options, but I believe, and I want to underline here, the most pragmatic and impactful approach involves the use of the ESM, the European Stability Mechanism.

One of the consequences of fragmentation and the lack of unity in key sectors is the difficulty we are facing in terms of innovation. The EU has not yet developed a robust industry capable of harnessing the benefits of the new wave of technological advancements. As a result, we have become increasingly reliant on external technologies that are now critical to European companies. It is essential that we unlock the full potential of the single market, and to do so, we need to leverage our unexploited common strength in research and development.

The single market, as we know, was built on four fundamental freedoms: the free movement of goods, services, capital and people. However, this structure is outdated and too closely aligned with the 20th century vision. I believe something is missing in today’s complex and dynamic environment, something intangible yet vital. The economy of the future will be driven by innovation, knowledge and tangible assets, a dimension that is vital to our progress.

In the report, I argue for the addition of a fifth freedom, one that encompasses a range of essential fields: research, data, skills, knowledge, education. This is possible within the framework of the existing Treaties, as demonstrated in the report. This new fifth freedom will not just be about facilitating the movement of research and innovation outputs; it will embed the drivers of research and innovation at the heart of the single market. With this framework, the EU will not only better position itself as a global leader in setting ethical standards for innovation, but also as a creator and pioneer of new technologies.

The EU’s ability to innovate depends also on creating an ecosystem where businesses can thrive. This is why the simplification of the single market rules is a central theme. It is a topic that I have heard repeatedly during my travels. However, when we speak of simplification, too frequently, these words are not followed by concrete, actionable proposals. In the report, I present two pragmatic proposals to significantly ease businesses’ access to the benefits of the single market. The first proposal is that EU institutions should unequivocally prioritise the use of regulations over directives when setting single market rules. This would reduce uncertainty and eliminate barriers. The second proposal is the idea of the ’28th regime’ to operate within the single market, a virtual 28th state that companies could choose for smoother, more practical operation at the European level. Both these proposals cover regulatory aspects that help to reduce bureaucracy without in an in any way undermining social standards, on which we do not want to see any race to the bottom. I’m very happy to speak on behalf and in front of the Commission on these topics.

I conclude, Madam President: Jacques Delors always insisted on the crucial point of the importance of a single market with convergence, and the success of the single market is fundamental. If we add to the freedom to move the freedom to stay, the freedom to stay is fundamental for the people who want to stay in their own regions, with the idea to be allowed to grow up there and to have services of general interest across all the EU regions and also in the periphery regions.

My conclusion: President von der Leyen’s decision to outline an ambitious plan for reform and relaunch of the European project, drawing on some of these ideas from both my report and that of Mario Draghi opens a window of opportunity we cannot afford to miss. In a time when divisions among us – between countries, political parties and populations are growing – I stand before you to affirm that the single market is what keeps us united. We must rally around it and remain firm in our commitment to the relaunch and completion of the single market. The question before us is clear: if not now, when? Now more than ever, we must defend, strengthen and relaunch the single market.

I hope that with all these arguments, I have convinced you that, as I wrote in the title of my report, the single market is really much more than a market.

PRZEWODNICTWO: EWA KOPACZ
Wiceprzewodnicząca

President. – Thank you very much, Mr Letta.

13. Empowering the Single Market to deliver a sustainable future and prosperity for all EU citizens (debate)

Andreas Schwab, im Namen der PPE-Fraktion. – Frau Präsidentin, lieber Enrico Letta, Herr Kommissar! Zunächst einmal im Namen der EVP-Fraktion einen großen Glückwunsch für diese intensive Arbeit und auch für die Präsentation der Ergebnisse hier.

Es ist deutlich geworden, dass der Bericht und auch Sie ganz persönlich, Herr Letta, nochmals in Erinnerung rufen, dass der Binnenmarkt der Motor unseres europäischen Wohlstandes ist. Das finde ich beachtlich, weil natürlich ein Stück weit in den vergangenen Jahren in Vergessenheit geraten ist, dass der wirtschaftliche Austausch – egal ob es um Waren oder Dienstleistungen, egal ob es um Autos oder um Tourismus geht – im Zentrum dessen steht, was uns als Europäerinnen und Europäer reich und viele auch zufrieden macht.

Deswegen, glaube ich, muss man an dieser Stelle noch einmal sagen: Der Binnenmarkt kann eben am besten entscheiden, was die richtige Leistung ist. Deswegen sollten wir den Bürgerinnen und Bürgern auch die Möglichkeit geben, dass sie entscheiden können in einem offenen Markt in Europa, welche Leistung, welchen Tourismusort, welches Auto sie kaufen können. Dafür ist der Titel vielleicht ein bisschen gefährlich, denn mehr als ein Markt bedeutet ja im Umkehrschluss, dass wir einen echten Binnenmarkt vollständig schon haben. Da, glaube ich, müssen wir sagen, gibt es noch einiges zu tun.

Es gibt noch einiges zu tun, damit Arbeitnehmerinnen und Arbeitnehmer problemlos von einem Land in ein anderes fahren können. Auch wenn sie das Recht, dort zu bleiben, wo sie sein wollen, behalten sollen, müssen sie die Freiheit genießen können – in der Überarbeitung der Verordnung (EG) Nr. 883/2004 –, die Grenze zu überschreiten. Deswegen, liebe Freundinnen und Freunde, meine Damen und Herren, glaube ich, die Anpassung an eine neue geopolitische Bedingung, die rasche Entbürokratisierung und die Kapitalmarktunion sind sicher Kernforderungen des Berichts, die wir alle unterstützen.

Ich bin froh, dass Enrico Letta in die gleiche Richtung wie Mario Draghi gegangen ist. Deswegen, glaube ich, gilt es jetzt, dass die Europäische Kommission liefert: ein 28. Regime dort, wo es notwendig ist, eine neue Grundfreiheit und einen einheitlichen Telekommunikationsbinnenmarkt. Es gibt viel zu tun.

Gabriele Bischoff, on behalf of the S&D Group. – Madam President and dear Enrico Letta, I think it is very important that we still keep a vision of what we could do and what is possible, but where we lack the courage so far to do so. Jacques Delors always said that no one falls in love with the common market. That was true in the past, it’s also true today, but you show that it’s not only a single market, but it is what it does for people, how it enables people. And therefore we really have to boost the common market indeed, but also – in the spirit of Jacques Delors – to always have in mind that this always needs a strong social dimension going for it, if we want to also convince the citizens that it’s in their interest to do so.

But I also have to say I could comment on many things, because your report is very rich. I want to highlight the fifth freedom, a fair mobility, a new push here for innovation, and to deliver for our citizens.

Svenja Hahn, im Namen der Renew-Fraktion. – Frau Präsidentin! Liebe Kollegen, wenn wir in der Welt über Werte wie Demokratie reden, hat man uns zugehört, weil wir ein attraktiver Markt waren. Der Binnenmarkt ist das Herzstück der EU – er hat uns wirtschaftlich stark werden und zusammenwachsen lassen. Doch der Binnenmarkt kränkelt vor sich hin, auch weil die Kommission zu wenig für seine Zukunft getan hat.

Herr Letta gibt uns eine lange To-do-Liste mit: allem voran sind es massive Überregulierung, hohe Energiekosten, Steuern und Abgaben und on top noch ein mindset, das Innovation und unternehmerischem Erfolg misstraut. Das ist Gift für unseren Binnenmarkt, das ist Gift für Wirtschaftswachstum.

Und wer jetzt die Lösung in neuen Steuern, Umverteilung und Subventionen sieht, ist doch aus der Zeit gefallen. Wir machen die EU nicht fit für die Zukunft mit Ideen von gestern, sondern mit strukturellen Reformen. Für mehr Wirtschaftswachstum brauchen wir jetzt einen radikalen Bürokratieabbau und eine Fastenkur für neue EU-Gesetze. Und es muss Schluss sein mit Protektionismus in unserem Binnenmarkt.

Wachstum muss das Ziel sein, denn eine starke Wirtschaft schafft Arbeitsplätze, finanziert Bildung und unseren Sozialstaat und sorgt auch dafür, dass wir uns verteidigen können. Ein starker Binnenmarkt ist die Grundlage für unsere Gesellschaft, unseren Zusammenhalt und unsere Sicherheit.

Anna Cavazzini, im Namen der Verts/ALE-Fraktion. – Frau Präsidentin, liebe Kolleginnen und Kollegen! Lieber Enrico Letta, erst einmal vielen Dank für deinen Bericht und die gute Zusammenarbeit mit diesem Haus, insbesondere mit dem Ausschuss für Binnenmarkt und Verbraucherschutz. Einige Leute sind ja fest davon überzeugt – und Gabriele hat es schon gesagt –, dass man sich nicht in einen EU-Binnenmarkt verlieben kann; einer davon hieß Jacques Delors.

Aber ich muss schon sagen, dass die aktuelle Binnenmarktgesetzgebung ziemlich attraktiv ist, ein Schlüssel gegen die multiplen Krisen unserer Zeit. Mit dem Gesetz über digitale Dienste und dem Gesetz über digitale Märkte legen wir demokratische Regeln für die Onlinewelt fest. Mit der Gesetzgebung für die Kreislaufwirtschaft und dem Recht auf Reparatur machen wir Nachhaltigkeit zur Norm auf dem Binnenmarkt. Und – das ist wirklich ein Projekt zum Verlieben – das gemeinsame Ladekabel macht endlich Schluss mit unserem Kabelsalat in den Schubladen. Diese Beispiele zeigen, dass sich die Aufgabe, einen gemeinsamen europäischen Markt zu schaffen, in den letzten 30 Jahren weiterentwickelt hat.

Von der Veränderung des Marktes mit seinen vier Freiheiten – Waren, Dienstleistungen, Kapital und Menschen – nutzen wir ihn heute immer mehr, um unsere gemeinsamen politischen Ziele zu erreichen: Souveränität, die Regulierung von großen Tech-Unternehmen, die Stärkung von Rechten von Verbrauchern und vor allem auch der Schutz unseres Planeten und des Klimas.

Und das ist auch die Geschichte – finde ich –, die wir den Bürgern heute erzählen müssen. Tatsächlich wird sich niemand in die abstrakte Idee der wirtschaftlichen Integration verlieben. Aber die Bürgerinnen und Bürger in der EU wollen hohe Verbraucherschutzstandards, eine gesunde Wirtschaft, Umweltschutz; und der Binnenmarkt und unsere Binnenmarktregeln können all das liefern, wenn wir es richtig machen.

Ich finde, wenn wir die Unterstützung unserer Bürger erhalten wollen, muss der Binnenmarkt sie schützen. Riesige Proteste in ganz Europa und zwei gescheiterte EU-Verfassungsreferenden waren damals die Folge, als die Kommission bei der Marktintegration mit der Dienstleistungsrichtlinie zu weit gegangen ist. Dieses Parlament hat damals, 2006, den Vorschlag geändert und ausgewogener gestaltet. Wir haben in den vergangenen Jahren erfolgreich für eine stärkere soziale Dimension des Binnenmarktes gekämpft und müssen dies auch weiterhin tun.

Ja, viele unsinnige Hürden im Binnenmarkt müssen schnellstens abgebaut werden. Aber Marktintegration darf niemals, aber auch niemals zum Abbau von Schutzstandards führen.

Νικόλας Φαραντούρης, εξ ονόματος της ομάδας The Left. – Κυρία Πρόεδρε, αγαπητέ κύριε Letta, σας καλωσορίζω στο Ευρωπαϊκό Κοινοβούλιο. Καλωσορίζουμε κάποιες από τις προτάσεις σας, όπως αυτές για μια κοινή φορολογική πολιτική ή για μια κοινή ευρωπαϊκή βιομηχανική πολιτική. Δεν με βρίσκει όμως σύμφωνο η περαιτέρω απορρύθμιση των εργασιακών σχέσεων και η αποκλειστική έμφαση μονάχα στην κινητικότητα των επενδύσεων.

Επίσης, σας καλώ, εσάς και την Ευρωπαϊκή Επιτροπή, να λάβετε υπόψη σας το γεγονός ότι ένας βασικός πυλώνας της εσωτερικής αγοράς από δημιουργίας της Ευρωπαϊκής Ένωσης, η πολιτική ανταγωνισμού, οι κανόνες ανταγωνισμού και η αντιμονοπωλιακή νομοθεσία, σε πολλές χώρες της Ευρωπαϊκής Ένωσης και στην ίδια την Ευρωπαϊκή Ένωση δεν λειτουργεί. Υπάρχουν χώρες, όπως για παράδειγμα η δική μου χώρα, η Ελλάδα, όπου είναι απολύτως καρτελοποιημένοι κάποιοι κρίσιμοι κλάδοι της οικονομίας, όπως επίσης και κλάδοι βασικών κοινωνικών αγαθών. Γι’ αυτό, θα πρέπει να ενταθούν οι προσπάθειες, ξανά από την αρχή, ώστε οι βασικοί πυλώνες της εσωτερικής αγοράς, όπως είναι οι κανόνες ανταγωνισμού, να γίνονται σεβαστοί και εφαρμόζονται αυστηρά.

Καλώ, λοιπόν, την Ευρωπαϊκή Επιτροπή, στο πλαίσιο του ευρωπαϊκού δικτύου ανταγωνισμού, να δείξει μεγαλύτερη προσοχή σε καρτελοποιημένες αγορές και να δώσει μεγαλύτερη έμφαση στην κοινωνική διάσταση της εσωτερικής αγοράς.

René Aust, im Namen der ESN-Fraktion. – Frau Präsidentin! Der Binnenmarkt ist eine der größten Errungenschaften der europäischen Zusammenarbeit. Er ist ein lebendiges Beispiel dafür, wie souveräne Nationen gemeinsam ihre Ziele erreichen können, wenn sie ihre Kräfte in einem wichtigen Bereich bündeln. Der Binnenmarkt hat Innovationen angeregt und für zusätzlichen Wohlstand in Europa gesorgt.

Doch heute sehen wir leider, dass sich die Europäische Union immer weiter von diesen zentralen Aufgaben entfernt. Statt sich auf ihre wenigen, aber entscheidenden Aufgaben zu konzentrieren, wie eben den Binnenmarkt, den Schutz unserer gemeinsamen europäischen Außengrenzen oder auch die Koordination einer gesamteuropäischen Verteidigungsgemeinschaft, mischt sie sich in immer mehr Lebensbereiche ein, in denen sie eigentlich nichts zu suchen hat.

Anstatt den Schwerpunkt auf grenzüberschreitende Herausforderungen wie Handel, Wettbewerb, Innovation oder gemeinsame Sicherheitsstandards zu legen, wird die EU zunehmend zu einem Gemischtwarenladen, der sich um alles Mögliche kümmert, vom Weltklima bis zur Genderideologie, aber das Wesentliche vernachlässigt. Diese Überdehnung der EU-Aufgaben schreckt private Investoren und Entrepreneure ab und schadet damit ganz Europa. Doch jede Kritik an dieser Entwicklung wird sofort als antieuropäisch verunglimpft und sehr schnell in die Ecke der Europafeinde gesteckt.

Dabei braucht Europa eine Rückbesinnung auf das, was wirklich wichtig ist, und nationale Souveränität ist eine Voraussetzung für eine funktionierende europäische Zusammenarbeit. Darum kann man uns Patrioten auch die Zukunft Europas anvertrauen, weil wir eben verstanden haben, dass mehr nicht immer besser ist. Wir wollen eine handlungsfähige Gemeinschaft europäischer Nationalstaaten, die den Binnenmarkt fortentwickelt, die Außengrenzen sichert und unseren Kontinent schützt.

Lídia Pereira (PPE). – Senhora Presidente, a participação da União Europeia na economia global está a cair. As economias asiáticas ultrapassam‑nos a uma velocidade vertiginosa, tal como o relatório de Enrico Letta e o relatório de Mário Draghi o confirmam. As condições de vida dos europeus estão a degradar‑se. O PIB per capita nos Estados Unidos cresceu o dobro do europeu desde que foi criado o Mercado Único, em 1993. Portanto, não podemos continuar a ficar para trás.

E o mais chocante é a nossa produção de bens essenciais, incluindo em áreas como a saúde, que desceu de 53 % para menos de 25 % em pouco mais de duas décadas. Estamos dependentes de outros, quando nunca precisámos tanto de garantir a nossa autonomia estratégica.

Enrico Letta disse‑o ainda há pouco, mas continuamos, infelizmente, a ver mais de 300 mil milhões de EUR das poupanças dos europeus serem desviadas para fora da Europa. É trágico, porque estamos a financiar a economia dos outros, em vez de fortalecermos a nossa.

Queremos ter um mercado mais competitivo, então precisamos de uma união bancária completa. Queremos proteger as poupanças dos nossos cidadãos e relançar a inovação, precisamos de uma união de mercado de capitais. E, acima de tudo, precisamos mesmo de reformar o mercado único europeu, acrescentando‑lhe a livre circulação do conhecimento, porque só com investigação e inovação seremos capazes de ter mais empresas competitivas a nível global.

Creio que já temos relatórios o quanto basta. Precisamos mesmo é de decisões, e está na hora de as tomarmos.

(A oradora aceita responder a uma pergunta «cartão azul»)

João Oliveira (The Left), Pergunta segundo o procedimento «cartão azul». – Senhora Presidente, fazer a defesa do mercado único a partir da apologia da política de concorrência, ignorando a concentração e a centralização a que essa política e esse mercado têm conduzido, não nos serve de muito. Basta olhar para o setor bancário português e perceber que, sem o aprofundamento do mercado único, ficaram os bancos todos nas mãos de capital estrangeiro, com exceção da Caixa Geral de Depósitos, que, por ser pública, continua a ser nacional.

Trazer aqui a defesa do mercado único a partir da ideia de que é isso que permite reduzir os preços – quando o setor energético mostra exatamente o contrário, com o aumento dos custos da energia – ou agora a partir do setor financeiro, achando que é isso que resolve os problemas, pode servir às multinacionais, mas não serve um país como Portugal, Senhora Deputada.

Camilla Laureti (S&D). – Signora Presidente, onorevoli colleghi, grazie a Enrico Letta per il rapporto. Alexander Langer diceva che la conversione ecologica potrà affermarsi solo se apparirà socialmente desiderabile: per questo in Europa servono investimenti comuni, perché il Green Deal è una rivoluzione necessaria che impatta sul modello di sviluppo e sulla vita delle persone, e nelle persone può generare paura.

Se sapremo realizzarlo, avremo i cittadini al nostro fianco, le aziende più competitive e un’Europa più forte. Gli Stati Uniti, la Cina e l’India stanno andando veloci e in questa direzione – l’Europa non può permettersi di restare indietro. La risposta è un sistema comunitario di aiuti di Stato: dobbiamo integrare i principi dell’economia circolare per spingere sostenibilità e competitività.

La libertà di muoversi, dice anche Letta nel rapporto, deve essere una scelta – oggi non lo è. Un terzo della popolazione europea vive in regioni che da anni sono immobili: le aree interne d’Europa. Qui si vince la sfida della crescita sostenibile, fatta di investimenti comuni, capaci di garantire i servizi di interesse generale per non lasciare indietro nessuno.

Enikő Győri (PfE). – Tisztelt Elnök Asszony! Az egységes piac az Unió legközérthetőbb értéke. Az olcsóbb repülés, vagy annak előnye, hogy otthoni szeretteinkkel ingyen telefonálhatunk, nem szorul magyarázatra. Persze szereztünk keserű tapasztalatokat is. Szolgáltatási irányelv, kiküldött munkavállalók, mobilitási csomag. Ezek elfogadásakor a Bizottság mindig a nyugat-európaiak érdekét tartotta előbbre valónak.

Ahol az EU keleti fele versenyképesebb, ott nem akarta lebontani az akadályokat. A feladat tehát csak, hogy olyan területeken mélyítsük az egységes piacot, mely fokozza a versenyképességet, és földrajzi helytől függetlenül megkönnyíti a polgárok és cégek életét. Ne központosítsunk ott, ahol a kisebbek vagy fejletlenebbek rosszul állnak. Több összeköttetés tehát, de például az energia- vagy telekommunikációs szektor centralizáltásával bánjunk csínján, ne tűnjenek el a helyi szereplők, ne dráguljon a szolgáltatás. A pénzügyi piacok közötti átjárhatóság jó irány, de legyünk óvatosak a nemzeti felügyeletek egységesítésével, ne fojtsuk meg a kisebb nemzeti tőkepiacokat, amelyek nélkül nincs helyi ökoszisztéma.

Elnök úr említette az ötödik szabadságot, a tudás mozgását. Ez nagyon klassz. Csak kérdezem, hogy az Európai Bizottság miért blokkolja a magyar kutatók részvételét a Horizont programban, vagy a magyar diákok mozgását az Erasmus program keretein belül? Regionális különbségek kiegyenlítése nélkül nincs versenyképesség. Az agyelszívás ellen tenni kell. Ösztönözni kell a helyben boldogulást. Tartsuk meg a kohéziós politikát, hiszen ezt az egységes piac ellensúlyozására találták ki, hol nehézségeket okozott. Ezt fenn kell tartani kondicionalitás nélkül, mert az durva politikai eszközzé vált a Bizottság kezében.

Denis Nesci (ECR). – Signora Presidente, onorevoli colleghi, Presidente Letta, la relazione che discutiamo oggi mette in luce una delle sfide cruciali: il rafforzamento del mercato unico è senza dubbio un obiettivo fondamentale per il futuro dell’Unione europea.

Tuttavia, non possiamo ignorare le criticità evidenti. Le eccessive regolamentazioni burocratiche rappresentano un ostacolo reale che rischia di soffocare l’innovazione e la crescita delle PMI. Se poi ci troviamo di fronte a perfidie come quella della direttiva ETS, giusto per citarne una, che mette a rischio la competitività delle infrastrutture portuali del Mediterraneo – come il porto di Gioia Tauro – con forti ricadute anche sul livello occupazionale, non parliamo di mercato unico, bensì di un distorto mercato unico.

Per rilanciare la nostra competitività nell’ambito del mercato unico abbiamo bisogno di una politica economica adeguata e solidale, accompagnata da regole che vadano incontro alle esigenze di tutti gli Stati membri. Per questo è essenziale che il mercato unico non diventi un vantaggio riservato solo ad alcune aree: serve un mercato unico realmente inclusivo, che possa offrire opportunità anche alle regioni meno sviluppate, mettendo al centro l’uomo e non le “eco-follie”, e che sia a favore di famiglie, consumatori e imprese.

Sandro Gozi (Renew). – Madame la Présidente, chers collègues, caro Enrico, le plus grand succès de l’Union, le marché unique, doit être renouvelé et complété. «Rico» Letta l’affirme avec force, et il a raison.

Renouvelé, car il est impossible de réussir la transition écologique et numérique sans rendre le marché unique plus durable et plus simplifié pour les producteurs et pour les consommateurs. Complété, car il faut éliminer tous les obstacles qui empêchent les PME d’en profiter pleinement et qui nous empêchent d’avoir une union de l’énergie, des télécoms, des capitaux et des investissements. Le coût de la «non-Europe» est trop grand pour ne pas agir. L’approfondissement du marché européen pourrait générer jusqu’à 1,1 trillion d’euros de production économique supplémentaire par an.

Il est aussi urgent – le rapport le dit très bien – de dégager les ressources sociales et économiques nécessaires à l’accompagnement du pacte vert et de la transition numérique.

Enfin, nous devons développer une dimension extérieure du marché unique en lien avec notre politique commerciale. Dans ce cadre, nous devons également réformer les marchés publics, qui doivent aussi nous aider à réduire notre dépendance vis-à-vis des pays tiers. Cela doit être notre grande mission pour l’innovation et la compétitivité.

Marcin Sypniewski (ESN). – Pani Przewodnicząca, Szanowni Państwo, jestem posłem od kilku miesięcy i jestem szczerze zdumiony, że w tym krótkim czasie po raz kolejny debatujemy nad nowym sprawozdaniem, które ma nam wskazać, jak mamy stać się bardziej konkurencyjni, bogatsi, silniejsi czy piękniejsi. Najwyraźniej oprócz biegunki legislacyjnej mamy również do czynienia z biegunką ekspertyz, analiz i sprawozdań. Zamiast tego polecam poczytać Rothbarda, Misesa czy Hayeka, których dzieła przetrwały próbę czasu we wskazywaniu, co jest dobre dla rozwoju gospodarczego i wolności jednostki.

Noblista Fryderyk von Hayek wskazuje, że wiedza w swojej naturze jest rozproszona. To rynek za pośrednictwem cen przesyła informacje do przedsiębiorców i konsumentów. Dzięki temu rynek samodzielnie się stabilizuje i dostosowuje się do zmieniających się warunków i potrzeb. Politycy i urzędnicy nie są do tego w ogóle potrzebni. Alternatywą dla takiego spontanicznego i rozproszonego działania jest centralne planowanie, które wielokrotnie wprowadzane zawsze zawodziło, ponieważ politycy nigdy nie posiądą całości rozproszonej wiedzy.

Rynek nie jest tabelką w Excelu, ale żywym, dynamicznie zmieniającym się organizmem, a prawdziwymi przywódcami na rynku są konsumenci. To ich wymagania starają się spełnić przedsiębiorcy. Rozwiązaniem, które ewentualnie pobudziłoby rynek, jest porzucenie praw własności intelektualnej w postaci chociażby patentów. Informacja może przecież znajdować się w kilku miejscach jednocześnie, bez wzajemnej szkody. Nie jest to dobro rzadkie, dlatego nie powinno być chronione jak własność prywatna. Własność intelektualna to sztuczny twór, a jej ochrona jest fikcją prawną. Chcecie bogactwa i dobrej przyszłości? Postawcie na rynek, a nie na biurokrację i na sprawozdania.

Mohammed Chahim (S&D). – Voorzitter, de heer Letta is vrij helder in zijn analyse, net zoals de heer Draghi kort daarna. Het gaat echt ergens over, namelijk hoe kunnen we onze interne markt versterken? Hoe kunnen we de eenheid van Europa versterken? Hoe zorgen we ervoor dat we een sterke concurrentie krijgen binnen Europa, maar vooral ook met de rest van de wereld? En dit gebaseerd op een gelijk speelveld, op innovatie en op vergroening?

Simpel gezegd zijn er twee stromingen in Europa: enerzijds conservatief rechts, dat de ontwikkelingen buiten de EU negeert, blind is voor de massale groene investeringen in de VS en wegkijkt van de modernisering van de Chinese economie; anderzijds een stroming die deze ontwikkelingen wil inhalen door meer – en niet minder – op Europese schaal samen te werken, te investeren in groene technologieën en ons niet te blijven blindstaren, zoals Draghi zei, op onze deels verouderde industrie.

De keuze is simpel. Kiezen we voor modernisering en vergroening en dus voor vooruitgang? Of kiezen we voor nostalgie en stilstand?

(De spreker stemt ermee in om te antwoorden op een “blauwe kaart”-vraag)

Roman Haider (PfE). – Frau Präsidentin! Der Letta-Bericht benennt viele Probleme des Binnenmarkts richtig: steigende Energiepreise, mangelhafte Infrastruktur, vor allem bei den Hochleistungsbahnstrecken, Rückstand bei den Zukunftstechnologien, Überbürokratisierung vor allem. Das ist alles richtig; es ist nicht neu, aber es stimmt. So richtig aber die Analyse und die Diagnose im Letta-Bericht ist, so falsch sind leider die Vorschläge zur Verbesserung. Das war beim Draghi-Bericht so, und das ist auch beim Letta-Bericht so.

Den beiden fällt zur Lösung der Probleme der EU nur eines ein: noch mehr EU, noch mehr Kompetenzen für Brüssel, noch mehr EU-Institutionen, eine neue Fiskalkapazität, die Kapitalunion, und dabei ist aber genau das das Problem. Noch mehr Kompetenzen für Brüssel bedeuten noch mehr Bürokratie, noch mehr unnütze Vorschriften, noch weniger Flexibilität für die Mitgliedstaaten.

Es ist höchst an der Zeit für neue Wege, für weniger Zentralismus, für weniger EU, für mehr Flexibilität für die Mitgliedstaaten, mehr Subsidiarität und mehr Freiheit.

Kosma Złotowski (ECR). – Pani Przewodnicząca! Panie Premierze! Od sukcesu jednolitego rynku zależy przyszłość Unii Europejskiej. Ten bardzo dobry projekt gospodarczy wciąż jest jednak daleki od ideału, gdyż ogranicza potencjał rozwojowy wszystkich państw członkowskich. Wreszcie możemy o tym głośno mówić.

Istnieje wiele barier dla firm, zwłaszcza małych i średnich, które chcą prowadzić działalność ponad granicami w sektorze usług, transporcie, budownictwie czy handlu internetowym. Już zidentyfikowane problemy, takie jak geoblocking, gold-plating czy nadmierne i uciążliwe kontrole, skutecznie należy zwalczać. Europejski Zielony Ład jest wyłącznie kolejną taką barierą dla wzrostu gospodarczego.

Nierealistyczne cele klimatyczne w takich obszarach jak rolnictwo, motoryzacja, transport czy budownictwo muszą zostać w tej kadencji Parlamentu zmienione. Zacznijmy w końcu deregulować, umożliwiać małym i średnim przedsiębiorstwom dostęp do rynków zagranicznych, wspierać innowacje i cyfryzację. To przełoży się na wzrost zatrudnienia oraz niższe ceny towarów i usług dla Europejczyków.

Billy Kelleher (Renew). – Madam President, the Letta report and the Draghi report are a wake-up call for the European Union in terms of digitisation, the Green Deal, our knowledge economy, investing in innovation, research and development, ensuring that we have growth and competitiveness. The single market, the internal market, is a cornerstone on which all of this is built, and we have to protect it and ensure that it prospers and flourishes.

The fact of the matter is, at the moment we are very short on capital in the European Union to invest in all of the above. So we have to advance the Capital Markets Union and the Banking Union to ensure that we have the capital to invest in the knowledge economy, in the Green Deal and other areas of research and development.

The free movement of people, goods and services and capital is the cornerstone. Of course, we do have some in this Chamber who are even trying to undermine the basic principle of free movement of people. We have to be very conscious that we can’t cherry‑pick the Single Market – free movement of capital, goods, services and people is the cornerstone and we must all defend it to the last.

More broadly, over the next number of months, we have to ensure that we respond to the Letta report and the Draghi report in what they observe are the challenges ahead for our competitiveness.

Fulvio Martusciello (PPE). – Signora Presidente, onorevoli colleghi, come sottolineato nella sua relazione e in quella di Mario Draghi, un solido mercato unico europeo è essenziale per la competitività delle imprese, perché può stimolare la crescita economica e l’innovazione, garantendo accesso al mercato ed eliminando la burocrazia inutile.

L’Europa però ha bisogno di una forte strategia industriale per le tecnologie e le catene del valore, che promuova competitività, sostenibilità e innovazione. Questa strategia deve sviluppare una visione coerente, che dia priorità ad un quadro normativo, con politiche basate su dati scientifici e valutazioni di impatto approfondite, fornendo alle imprese la stabilità di cui hanno bisogno. Da questo punto di vista riteniamo molto positive le lettere di missione sulla creazione di una vera e propria economia circolare competitiva.

Negli ultimi decenni le aziende europee hanno infatti investito miliardi di euro in tecnologie all’avanguardia, hanno generato enormi progressi nell’eco-design di prodotti, nella sicurezza dei consumatori e nell’industria del riciclo, dove l’Italia e l’Europa detengono posizioni di leadership mondiale, sia in termini di innovazione industriale che di sostenibilità ambientale.

Purtroppo, l’eccesso di regolamentazione degli ultimi anni ha generato un’enorme incertezza, spingendo interi settori industriali a posticipare i propri investimenti, compromettendo gli obiettivi di crescita complessivi, con spreco di tempo e di risorse.

In questo mandato sarà dunque necessario evitare a tutti i costi di produrre ulteriori iniziative legislative motivate da logiche falsamente ambientaliste e non basate su evidenze scientifiche, che rischiano di penalizzare le imprese europee. Sarà imperativo garantire la conformità con le norme europee da parte dei Paesi terzi, garantendo standard che riducano la dipendenza dai fornitori esteri e rafforzino la competitività dell’industria e delle economie europee per affrontare le sfide delle concorrenze globali di Cina e Stati Uniti.

Laura Ballarín Cereza (S&D). – Señora presidenta, señor Letta, señorías, treinta años después de su creación, el informe Letta nos brinda una oportunidad única para avanzar hacia el futuro del mercado único en tres aspectos clave:

En primer lugar, inspirados por Jacques Delors, apoyamos su idea de añadir una nueva libertad a la libertad de movimiento, que es la libertad de permanecer en el rincón de la Unión Europea que queramos. No queremos solo una Unión donde podamos movernos libremente en busca de una vida mejor: también queremos cohesión, oportunidades y desarrollo en todas las regiones de la Unión Europea, y acceso a la vivienda para proteger las zonas rurales y las más pobladas.

En segundo lugar, necesitamos profundizar en la integración del mercado de capitales y el de las telecomunicaciones porque, como bien dice el señor Letta, no es coherente que compartamos una moneda única, pero tengamos aún fronteras digitales y prefijos nacionales.

Y, en tercer lugar, la quinta libertad, la del conocimiento y la innovación. Nos quedan cinco años para profundizar en el mercado único y hacer que más europeos se enamoren de esta idea, tal como quería Jacques Delors, en contra de la extrema derecha que está aquí en esta Cámara sentada.

Roberts Zīle (ECR). – Priekšsēdētājas kundze! Godātais Lettes kungs, es pilnīgi piekrītu jūsu ziņojumam, ka vienotais tirgus ir kaut kas vairāk kā tirgus, un arī jūsu norādītām nepilnībām gan sektoru ziņā: finanses, enerģētika, telekomunikācijas un it īpaši privātā kapitāla izvietošana.

Ja kopumā Eiropā ir 33 triljonu eiro uzkrātā kapitāla un katru gadu 300 miljardi eiro tiek investēti ārpus Eiropas Savienības, Amerikā un citās vietās, tad kaut kas nav kārtībā ar šo. Un ar publisko naudu vien mēs nespēsim izdarīt tos uzdevumus, kas ir nepieciešami Eiropas Savienībai gan militārās industrijas jomā, gan zaļā kursa, gan paplašināšanās, gan citās jomās.

Jūsu ieteiktās zāles arī ļoti vērā ņemamas par piekto pamatbrīvību, par Uzkrājumu un investīciju savienību. Bet dažas zāles, kā, teiksim, radīt siltumnīcas apstākļos Eiropas čempionus, kas var kļūt par globāliem čempioniem, es ļoti baidos, ka tas to nesasniegs. Vēl jo vairāk tas var noplicināt no perifērijas gan naudas resursus, gan arī cilvēku – gudrāko cilvēku – resursus uz dažiem centriem Eiropā, kas varbūt nebūs Eiropas Savienības veiksmes stāsts.

Regina Doherty (PPE). – Madam President, Mr Letta, you’re absolutely right when you say that the single market is the best tool that we have to increase opportunities, improve our well-being and the living standards for all of the citizens across the European Union. And we absolutely can’t take it for granted, because if we do, it’s going to fail. Your report, which is really welcome, helps to illuminate many of the current problems that we are seeing and that the single market is facing.

Europe’s economy is not growing strongly enough. Our small businesses are not given the opportunity to grow and to scale up. Approximately 30 % of the high-value companies founded in the EU between 2008 and 2021 relocated their headquarters out of the EU, and mostly to the US. Some 60 % of the issues that we identified by businesses in 2002 still exist in the European market today, because progress on removing the barriers has been so slow, and it’s particularly true in the case of our service industry.

We see the distorting effects of current rules around the EU state aid rules, which allow larger countries to subsidise businesses at the expense of smaller ones, like my own, Ireland. In 2023, almost 80 % of EU state aid came from just two Member States, and 85 % from three Member States.

Europe will not be able to spend its way out to growth. Instead, we must reduce the unnecessary red tape and bureaucracy that everybody has been speaking about daily since I arrived here in June. But it’s also vital to avoid EU protectionism in the form of high external tariffs, a hostility towards investment from third countries and an over-reliance on those subsidies.

Estelle Ceulemans (S&D). – Madame la Présidente, Monsieur Letta, Mesdames et Messieurs les Commissaires, chers collègues, il est aussi bon de rappeler que le rapport de M. Letta sera – Mme von der Leyen l’a elle-même dit – l’un des fils rouges de la prochaine Commission. Il était donc vraiment important que vous veniez nous le présenter et que nous puissions en débattre aujourd’hui.

Merci, Monsieur Letta, de reprendre les mots de Jacques Delors, artisan du marché unique, qui nous dit que le marché n’est pas une fin en soi: il est là pour améliorer la vie des citoyens, qui ne sont pas que des consommateurs. Le marché unique a en effet permis de développer la prospérité et la compétitivité, mais il a aussi creusé les disparités et la pauvreté – comme cela a été dit dans le débat précédent, qui nous rappelle que, malheureusement, 1 Européen sur 5 fait face à un risque de pauvreté.

Merci, donc, Monsieur Letta, de rappeler que le marché ne peut fonctionner que sur la base de politiques sociales fortes, et de rappeler aussi qu’il faut, sous cette législature, investir dans les deux transitions, pour qu’elles soient justes. Je voudrais rappeler aussi que nous attendons de la prochaine Commission qu’elle s’engage, tout comme l’a fait M. Nicolas Schmit, sur des matières sociales importantes.

Adrian-George Axinia (ECR). – Doamnă președintă, piața unică europeană este o idee foarte bună, care, din păcate, în anumite domenii de activitate nu funcționează așa cum trebuie. Vă dau trei exemple: piața de energie, acolo unde România, care produce mai multă electricitate decât consumă, plătește cele mai mari facturi din Uniunea Europeană. A doua disfuncționalitate, care este încă nerezolvată, ține de agricultură. În continuare, cerealele și anumite produse alimentare exportate din Ucraina ajung pe piața românească, bulgărească sau poloneză și creează o concurență neloială producătorilor agricoli autohtoni.

Merită subliniat și refuzul implementării procesului de convergență externă, care ar trebui să ducă la egalizarea subvențiilor pentru fermieri în toate țările Uniunii Europene. Nu în ultimul rând, recent, Curtea de Justiție a Uniunii Europene a declarat nelegale mai multe prevederi din pachetul de mobilitate orientate împotriva transportatorilor din România, ceea ce confirmă raportul Draghi. Există în continuare o suprareglementare a pieței unice și aceasta afectează competiția liberă. Aș mai puncta și faptul că uciderea spațiului Schengen de către țările care introduc controale generale la frontieră și statele care țin încă România și Bulgaria pe margine afectează în continuare buna funcționare a pieței unice.

Ľudovít Ódor (Renew). – Vážená pani predsedajúca, tak ako vidíme aj z tejto diskusie, skutočný jednotný trh je niečo, na čom vieme stavať aj v tomto Parlamente, a musíme v najbližších rokoch urobiť maximum pre to, aby sme tento koncept rozšírili aj na ďalšie sektory. Rád by som upozornil na tri veci, ktoré sú pre mňa prioritné. Po prvé, svet sa zmenšil a trhy sa trošku zmenili. V digitálnom svete dominujú tí najlepší. Víťaz berie takmer všetko, dosť dobre už nestačí. Potrebujeme naozaj silných európskych globálnych hráčov, a nie desiatky trpaslíkov. Po druhé, svet inovácií je aj o riziku. Bohužiaľ, náš bankami dominovaný finančný systém, a ako aj občania preferujú menej rizika, a preto bez Únie, úspor a investícií, ako aj lepšej finančnej gramotnosti to tak aj zostane. Peniaze máme, no nevieme ich dostať k inovatívnym firmám. A po tretie, pri dobrých nápadoch a podnikaní nemôžeme tolerovať bariéry pri prechode každej vnútornej hranice.

Marc Angel (S&D). – Madam President, the single market is the crown jewel of the European construction, and in my eyes gives the EU a competitive advantage. A stronger single market means a more competitive Europe.

Mr Letta, as your excellent report shows, we can improve a lot and we must perfect it. We need better implementation of the existing rules. We need to ensure that it contributes to a more sustainable and a more social Europe, and we need to consider strengthening integration in crucial sectors, as a stronger single energy market, for example, driven notably by better interconnectivity, can lead to more secure and affordable energy and cheaper electricity bills for companies and our citizens.

Furthermore, for the S&D Group, more integration means more competitiveness for our companies, better consumer protection and more prosperity for Europeans – while adopting national solutions will lead to more fragmentation and ultimately a weaker Europe.

Further harmonisation of rules also means less bureaucracy and a reduced administrative burden for our companies, especially for SMEs, which will no longer have to navigate through a jungle of 27 different sets of national rules.

So let us leverage the power of integration to tap into the full potential of the single market.

Ivars Ijabs (Renew). – Madam President, thank you, Mr Letta, for your excellent report. Well, of course, the single market is a strength of the EU: it’s the main instrument. This is how we achieve our goals. But what are actually our goals today? Let me remind you that the Russian aggression in Ukraine is still going on. And the Russian attack on an EU country is possibly, still, a question of the nearest future.

And that’s why I really like the part in your report which deals with a common market for security and defence industries. This is a real necessity for the EU right now. Some 80 % of the military help to Ukraine is right now spent on non-European materials.

But how to achieve that common market? European investment in defence is lagging. It is very seriously hindered by red tape, by excessive regulatory requirements, by fragmentation. There is an immense potential of a single market in defence industry, but one must have a political will to implement it – and quickly. Time is running out.

Salvatore De Meo (PPE). – Signora Presidente, onorevoli colleghi, la relazione Letta, unitamente a quella del Presidente Draghi, arrivano all’inizio di questa legislatura, che io vorrei diventasse riformatrice, ambiziosa, coraggiosa ma responsabile, perché l’Unione europea non sia più spettatrice in una scena globale ma diventi protagonista.

E abbiamo gli strumenti per farlo: un mercato unico che in questi anni non solo è stato strumento di integrazione ma ha consentito la nostra crescita economica e la prosperità, uno strumento che va semplificato da un punto di vista burocratico, ma soprattutto rafforzato, per esprimere ulteriormente le sue potenzialità e affrontare le nuove opportunità.

Così come è necessario arrivare a un mercato unico dell’energia, un mercato finanziario che permetta ovviamente di garantire condizioni di competitività. E allora noi abbiamo davanti a noi sfide importanti, per le quali solo un mercato unico forte potrà garantirci un futuro all’altezza delle nostre ambizioni climatiche, sociali e produttive.

Jonás Fernández (S&D). – Señora presidenta, señor comisario, señor Letta, es un placer tenerle aquí en un momento en el que estamos empezando a definir las prioridades de este mandato y, sin duda, acelerar la integración del mercado único —especialmente en el ámbito de los servicios, donde aún tenemos relevantes problemas, como ha expuesto en su informe— es absolutamente necesario.

Pero me va a permitir decirle que lo que más me ha llamado la atención del informe es la exigencia de evitar la huida de ahorro europeo a otras jurisdicciones. Porque algunos llevamos años en esta Cámara pidiendo reducir los superávits por cuenta corriente de algunos países —superávits por cuenta corriente que, en algunos casos, llegan a dos dígitos en relación con el PIB de esos países— y, ciertamente, en los debates que teníamos aquí en estos años, nadie o muy pocos me seguían.

Y yo creo que es importante que, ahora que pedimos que el ahorro se invierta en Europa, seamos capaces de explicar a la Cámara que lo que estamos pidiendo es más demanda interna y reducir los superávits por cuenta corriente que ahogan el crecimiento de la Unión Europea.

Biljana Borzan (S&D). – Poštovana predsjedavajuća, zajedničko tržište jedno je od najvećih europskih postignuća.

Svaka kriza produbljuje nejednakosti na tržištu, bogati se još više bogate, siromašni postaju još siromašniji. Troškovi života najveći su problem u cijeloj Europskoj uniji, a nejednakosti između i unutar država članica u cijenama, plaćama, mirovinama i stopi siromaštva se samo povećavaju.

Izvješće ističe zaštitu potrošača kao jedan od uvjeta za pošteno tržište, ali geoblocking, teritorijalne barijere, viši rast cijena hrane u istočnoj Europi samo su neki od gorućih problema. Izvješće hvali Zakon o osnaživanju potrošača u zelenoj tranziciji na koju sam i sama ponosna, ali rješenje je provedba naših pravila u svakom dijelu Europske unije. Više od 80 posto građana moje zemlje smatra da su potrošači nezaštićeni protiv tržišnih igrača.

Moramo ojačati europske alate, potrošačke udruge, inspekcijski nadzor i svijest građana o vlastitim pravima. Ne smijemo biti oni tamo negdje u Bruxellesu. Mi moramo raditi za ljude.

Zgłoszenia z sali

Davor Ivo Stier (PPE). – Poštovana predsjedavajuća, gospodin Letta ispravno govori o tome što ubrzanje integracije unutarnjeg tržišta ima jednu geopolitičku važnost u današnjim uvjetima.

Ja bih to nadopunio time što unutarnje tržište moramo isto tako i povezati s procesom proširenja. Pogledajmo, na primjer, situaciju na zapadnom Balkanu, ima puno političkih problema. Ne smijemo čekati da se oni riješe, da te zemlje postanu punopravne članice, nego bismo ih već prije mogli, doduše možda na jedan postupni način, ali već prije mogli integrirati u naše jedinstveno tržište. Kao što, na primjer, činimo kada je u pitanju roaming. Mislim da je to jedan dobar primjer, ali moramo to proširiti i na druge slobode.

Na taj način će i ljudi u toj regiji imati svoje pravo na ostanak, a Europska unija će imati veći utjecaj i više će pridonijeti stabilnosti tog dijela europskog kontinenta.

Maria Grapini (S&D). – Doamnă președintă, domnule comisar, domnule Letta, vă salut și în această săptămână. Aș spune multe. În primul rând vă felicit: este o radiografie corectă, dar nu numai o radiografie, sunt și măsuri concrete. V-aș întreba, estimați dumneavoastră oare cât din acest raport se va aplica? Pentru că, iată, noua comisie nu are un comisar, nu există un portofoliu pentru piața internă. Cine se ocupă atunci de piața internă? Cum să ne ducem la măsurile concrete pe care le-ați spus dumneavoastră? Ați spus că piața unică ne unește; este oare o piață unică acum?

Sunt de acord să avem cea de a cincea libertate de mișcare, dar cel puțin o libertate de mișcare ne lipsește acum, domnule Letta. Știți oare cât a pierdut o țară care de 17 ani nu este în spațiul Schengen și are costuri la transport? Cât a pierdut economia țării mele? Apoi, avem acum, când vorbim, îngrădirea în interiorul spațiului Schengen a granițelor. Deci trebuie – toată piața unică, e adevărat, ați spus că ne unește – dar trebuie să luăm cu pragmatism măsuri care să ducă la rezultate și la o viață mai bună a oamenilor.

Silvia Sardone (PfE). – Signora Presidente, onorevoli colleghi, le istituzioni europee hanno deciso di affidare ad Enrico Letta l’incarico di scrivere una relazione sul futuro dell’Europa. Eh, niente, fa già ridere così.

Letta è l’ex leader del Partito democratico, ex premier della sinistra in Italia, volto di punta dei socialisti europei: rappresenta praticamente tutti i responsabili del disastro dell’Unione europea degli ultimi anni, tra l’altro sonoramente sconfitti in Italia.

Per Letta la transizione verde è indispensabile e bisogna accompagnare agricoltori, imprese, industria dell’auto: esattamente ciò che però la sua maggioranza non ha fatto. Anzi, grazie a voi questi settori sono in crisi. Letta ci ricorda che l’Europa non deve cedere sul ruolo di leader nel settore manifatturiero: ma è proprio grazie ai vincoli, tasse e burocrazia volute dall’Europa che ci troviamo in questa condizione.

Enrico Letta: uno che ha uno strano concetto di democrazia e ci ha tenuto a dire che i cordoni sanitari sono fondamentali per fermare le destre. Lui, proprio lui, che ha ribadito che servono più migranti regolari per lo sviluppo, andando contro diversi Paesi, anche socialisti, che finalmente dicono che bisogna fermare l’immigrazione.

Insomma, veramente vogliamo farci dare lezioni da Letta, colui che dice che l’ex ministro Fornero è stato un ministro ottimo quando invece ha solo distrutto il nostro Paese?

João Oliveira (The Left). – Senhora Presidente, visto a partir do conselho de administração de uma multinacional, o aprofundamento do mercado único pode parecer um filão; visto a partir da realidade dos trabalhadores e dos povos, das micro, pequenas e médias empresas, das possibilidades de desenvolvimento de um país como Portugal, o aprofundamento do mercado único é um pesado fardo que nos arrasta para o fundo.

Há algumas décadas atrás, o militante do PCP e ex‑deputado deste Parlamento, Sérgio Ribeiro, antecipava que a transferência de instrumentos de política para a esfera supranacional, nomeadamente através da transferência da política monetária e financeira para o BCE, conduziria a uma política tendencialmente única. Por meio do mercado único e das políticas que lhe estão associadas, que o senhor Letta hoje adjetiva de motor de mudança da União Europeia, retirou‑se capacidade de decisão aos governos nacionais, abriu‑se mais espaço à concentração e centralização do capital, colocaram‑se sob ataque os direitos sociais e laborais.

O aprofundamento do mercado único serve às multinacionais, mas não serve ao desenvolvimento económico nem à justiça social.

Lukas Sieper (NI). – Madam President, dear honourable House, dear people of Europe, Mr Letta, before I came here to this Parliament, I finished my law studies at the University of Cologne. During this time, I put a lot of effort into learning the four European freedoms: the freedom to move people, services, goods and capital. And I can tell you, learning all the law-related details – especially the court rulings – that was a pain in the ass, indeed. Names like Dassonville or Cassis de Dijon, who will tell you here nothing, send a shiver down the spine of every law student.

But at the same time, whenever I opened my books, I felt love for Europe. Because what is Europe if not the idea of freedom? And that’s why, Mr Letta, I would like to take the time to give you my deepest support for one of the main ideas of your report: the implementation of a fifth freedom – the freedom of research, innovation, knowledge and education. Because as Europe is an idea, ideas should roam free on this continent.

(Koniec zgłoszeń z sali)

Giuseppe Lupo (S&D), per iscritto. – Penso che il Parlamento europeo debba condividere e sostenere la strategia della relazione Letta per modernizzare il mercato unico dell’UE.

Condivido in particolare che, se vogliamo che il mercato unico migliori davvero la vita della gente, deve avere un’anima che è il dialogo sociale, che deve fare partecipare e coinvolgere le persone, la società, i corpi sociali intermedi, i sindacati dei lavoratori e delle imprese, rilanciando il dialogo sociale come lo ha voluto e praticato con successo Jacques Delors, anche grazie alla collaborazione dell’allora segretario della CES, Emilio Gabaglio.

La grande sfida da affrontare, credo, sia adesso la promozione di una politica fiscale comune, per sostenere con condizioni fiscali di vantaggio le aree territoriali più deboli, superando le differenze dei sistemi fiscali nazionali che ostacolano la leale concorrenza.

14. Implementation of the Single European Sky (debate)

Jens Gieseke, Berichterstatter. – Sehr geehrte Frau Präsidentin, sehr geehrter Herr Kommissar Hoekstra, liebe Kolleginnen und Kollegen! 30 000 Flüge täglich, 600 Mio. Passagiere jährlich, über 500 000 Arbeitsplätze bei Fluggesellschaften, weniger als 17 000 Arbeitsplätze in der nationalen Verkehrskontrolle, überlastete Flughäfen, ein Flickenteppich an Strecken aufgrund der Flugsicherung entlang nationaler Grenzen – das ist das Bild des letzten europäischen Monopols: die Flugsicherungsdienste.

Ich bin heute hier, um Sie zu bitten: Sagen Sie Ja zu kürzeren Strecken, zu mehr Effizienz, zu mehr Leistungen, zu mehr Zusammenarbeit, und Ja zu einem wirklich europäischen einheitlichen Luftraum. Warum gibt es kein Leistungsüberprüfungsgremium? Warum gibt es nicht ein gemeinsames Leistungssystem? Warum gibt es nicht einen europäischen Netzwerkmanager? Das sind alles wichtige Elemente, um die Leistungen der Flugsicherung zu verbessern und den Schaden für die Passagiere zu begrenzen. Fluglotsen behalten ihren Arbeitsplatz, sie werden weniger gestresst arbeiten, sie werden besser arbeiten, weil sie mit ihren Nachbarn zusammenarbeiten. Ich bin hier, um Ihnen zu sagen: Ja, wir können Flüge sicherer, kürzer, umweltfreundlicher und erschwinglicher für den Durchschnittsbürger der Europäischen Union machen.

Wir haben hier ein riesiges Potenzial. Milliarden Euro wurden sowohl von der Europäischen Union als auch von privaten Interessenträgern im Rahmen des SESAR-Projektes investiert. SESAR liefert den digitalen europäischen Luftraum. Es liegt nun in unserer Hand, aber wir können uns nicht nur auf Investitionen in Technologien verlassen. Während der technologische Fortschritt durch das SESAR-Programm fortgeschritten ist, sind die Strukturreformen, die hier erforderlich sind, um sowohl die Kapazitäts- als auch die Umweltperformance zu erreichen, seit mehr als einem Jahrzehnt ins Stocken geraten und halten uns in der Vergangenheit fest. Hier haben die Mitgliedstaaten auch nicht mitgemacht, die standen auf der Bremse.

Sehen Sie sich nun allein diesen Sommer an: Von Juni bis August haben die Flugsicherungen in Europa 16,9 Millionen – ich wiederhole: 16,9 Millionen – Minuten an Verspätungen im europäischen Netzwerk angehäuft. Das waren 41 % mehr als im gesamten Sommer 2023. Zum Vergleich: Im Jahr 2017 – im ganzen Jahr – gab es 15,9 Millionen Minuten. Wenn man die wetterbedingten Verspätungen herausnimmt, dann haben sich die Verspätungen im Vergleich zum Sommer 2023 um 82 % erhöht, und nur sieben nationale Flugsicherungen haben 85 % dieser Verspätungen verursacht.

Das zeigt, dass die Situation von Jahr zu Jahr schlechter wird – leider –, insbesondere jetzt, da der Flugverkehr wieder das Niveau von vor der Pandemie erreicht hat. Diese Reform, die wir nun hier haben, die wird gebraucht, sie wird dringend gebraucht! Die Schaffung eines wirklich einheitlichen europäischen Luftraums wurde viel zu lange von den Mitgliedstaaten blockiert, die nicht bereit waren, sich auf eine Restrukturierung der Flugsicherung zum Wohle der Allgemeinheit, zum Wohle der Passagiere einzulassen.

Dank der unermüdlichen Arbeit von Herrn Marian-Jean Marinescu, unserem Berichterstatter der EVP, für den einheitlichen europäischen Luftraum und für EASA in den letzten 16 Jahren werden wir nun in der Lage sein, diese neue Luftraumverordnung umzusetzen. Hier möchte ich aber auch an die großartige Arbeit von Herrn David Maria Sassoli, unserem verstorbenen Parlamentspräsidenten, erinnern, mit dem Herr Marinescu zusammen an der EASA-Grundverordnung gearbeitet hat. Ich möchte aber auch meinen sozialistischen Kollegen Bogusław Liberadzki nicht vergessen, der mit Herrn Marinescu stark zusammengearbeitet hat, so wie es jetzt Johan Danielsson mit mir tut.

Gestatten Sie mir, Frau Präsidentin, die Mitgliedstaaten nun aufzufordern, die Fehler, die wir noch haben, nun zügig bei der Umsetzung umzuarbeiten. Es besteht ein riesiges Potenzial zum Wohle der Bürgerinnen und Bürger und um am Ende auch die Klimaziele einzuhalten. Also, wir müssen weiterarbeiten.

Johan Danielsson, Föredragande. – Fru talman! Varje år genomförs omkring en miljard resor med flyg inom EU. Över tid har flyget blivit en allt viktigare del av vår vardag och vår ekonomi. För ett land som Sverige är en välfungerande flygtrafik avgörande. Vi har stora avstånd och är glest befolkade. Flyget knyter samman vårt land, vår kontinent och kopplar oss till omvärlden.

Men sektorn står inför stora utmaningar. Under 2023 var nästan tre av tio flyg mer än 15 minuter försenade. Den genomsnittliga förseningen per flygning i Europa är cirka 18 minuter. Samtidigt står flyget globalt för omkring 2 till 3 % av våra totala koldioxidutsläpp.

I dag liknar Europas luftrum ett stort pussel där varje land har sin egen bit, och tyvärr passar inte alla bitar ihop. Det leder till omvägar, till väntetider och till onödiga kostnader. Singel European Sky ska lösa delar av detta pussel. Efter mer än ett decennium av förhandlingar har vi äntligen nått fram till en överenskommelse.

Lagstiftningen handlar om att göra flyget säkrare, punktligare och klimatvänligare. Det gynnar resenärer, det kommer att gynna industrin och det kommer att gynna klimatet. Och det är ett viktigt steg för att modernisera Europas luftrum.

Jag vill tacka alla som arbetat med det här förslaget. Ett särskilt tack till tidigare föredragande Bogusław Liberadzki och Marian-Jean Marinescu, som jobbade med detta oförtröttligt under den föregående mandatperioden. Och så ett tack till Jens Gieseke, min medföredragande den här gången. Det visar vad vi kan åstadkomma om vi arbetar tillsammans över partigränserna i det här huset.

Men låt mig vara tydlig: Singel European Sky är ingen revolution – det är en evolution. Det är en kompromiss som tar oss i rätt riktning. Vi kommer att se förbättringar och effektivitet och samordning. Men även om förändringarna kanske inte blev så stora som vi hade tänkt oss, innehåller det viktiga steg framåt.

Vi stärker till exempel övervakningen på EU-nivå, vilket kommer att vara avgörande för att säkerställa att våra europeiska regler efterföljs. Förändringarna ger oss en god plattform att bygga vidare på mot ett enhetligt, effektivt och hållbart europeiskt luftrum.

Enligt beräkningarna kan Singel European Sky bidra till att minska koldioxidutsläppen med upp till 10 % per flygning. Det här är ett viktigt steg och en del av lösningen för att också göra flyget mer hållbart.

Men vi måste fortsätta arbetet på flera fronter. Vi kommer att behöva säkerställa en marknad för hållbara flygbränslen. Vi kommer att behöva fortsätta arbeta med ökad effektivitet i bränsleförbrukningen i flyget. Vi kommer också att se till att de fantastiska innovationer som är på väg fram, inte minst för att elektrifiera regionalflyget, kan få en praktisk omsättning på vår europeiska flygmarknad. Jag ser fram emot en bra debatt i dag och ett bra beslut senare i veckan. Och jag är hoppfull om att resultatet kommer att bli ett bättre europeiskt luftrum.

Wopke Hoekstra, Member of the Commission. – Madam President, honourable Members, let me start by wholeheartedly thanking Mr Gieseke, Mr Danielsson and the TRAN Committee for all the great work that they have been doing. But let me also thank the former rapporteurs, Mr Marinescu and Mr Liberadzki, who might be with us virtually, for successfully concluding the interinstitutional negotiations with the Council on the regulation on the implementation of the Single European Sky.

Ladies and gentlemen, our skies – and the two rapporteurs have said that – need fixing for the good of passengers, airlines and the environment. And to illustrate what is really at stake here, let me just recall this summer, when every second flight was delayed. Every second flight was delayed. And we all know how that feels and what it is like.

Now some of those delays were unavoidable, for example because of bad weather conditions. But if you then go into the details, you will find that many of those delayed and cancelled flights could actually simply have been reduced by improving the way we manage air traffic today. And that is, of course, the ultimate aim. That is the ultimate aim of this new regulation.

This agreement will update rules which are 15 years old. Let me be clear – and it was said here before – it is not as ambitious as the Commission, and I feel many in this room, would have wanted. And some would consider it far away from our original plan. But what is also true is that it does represent a clear step forward, and it improves the performance of the European airspace and the provision of air navigation services in the years to come.

The new rules will strengthen the European network, tackling the fragmentation of European airspace, and they will reduce congestion and suboptimal flight routes, which today create delays for our passengers, extra fuel consumption and unnecessary CO2 emissions.

Ladies and gentlemen, the agreement will also stimulate innovation and facilitate new services for air traffic management. It will create incentives to reduce the environmental footprint of aviation. For example, air navigation service providers will now have to introduce environment and climate performance targets on a wider range of services. The charges that airlines will need to pay for flying over our skies will be more favourable for those carriers emitting fewer CO2 emissions and with less impact on the environment.

Finally, more know-how will be introduced when we regulate the performance of monopoly air navigation service providers. A new performance review board will be created to support the Commission, bringing independent expertise and improving the temporary solutions that we have today.

Madam President, honourable Members, please allow me to conclude. More than 10 years have passed since the Commission presented what was then its original proposal. Believe me, it was not an easy task. In order to reap the benefits that the agreement brings, in my view it is now urgent that the Parliament finalises the adoption of the regulation by supporting the Council’s first reading position this week. Implementation work can then start as soon as possible.

Thank you very much, once again, in particular to the TRAN Committee and the rapporteurs, and I’m very much looking forward to the continuation of our interaction today.

Sophia Kircher, im Namen der PPE-Fraktion. – Sehr geehrte Frau Präsidentin, Herr Kommissar, liebe Kolleginnen und Kollegen! Wir reisen heute fast grenzenlos durch Europa. Doch über den Wolken, wo die Freiheit wohl grenzenlos scheint, stoßen wir im EU-Luftraum immer noch auf viele unsichtbare Grenzbalken – dadurch wird der europäische Luftverkehr stark eingeschränkt. Flugzeuge fliegen oft unnötige Umwege, weil veraltete nationale Vorschriften das erzwingen. Das führt zu Verspätungen, zu Kosten und 10 % mehr CO2-Ausstoß pro Jahr.

Der Grund dafür: Der europäische Luftraum gleicht aktuell einem komplizierten Fleckerlteppich aus vielen nationalen Vorschriften. Statt eines gemeinsamen europäischen Systems mit einheitlichen Bestimmungen überwacht derzeit jeder Mitgliedstaat seinen Luftraum eigenständig, ohne eine ausreichende Zusammenarbeit mit anderen EU-Staaten.

Mit diesem Gesetzespaket schaffen wir nun die Grundlage für mehr Zusammenarbeit mit anderen EU-Staaten, die wir so dringend brauchen, und somit werden wir in Zukunft günstiger, schneller und nachhaltiger fliegen können. Das ist eine Win-win-Situation für uns alle. Trotz dessen bleibt noch viel zu tun. Mit diesem Gesetzespaket gelingt uns ein wichtiger Schritt, aber es liegen noch viele Meilen vor uns.

Matteo Ricci, a nome del gruppo S&D. – Signora Presidente, onorevoli colleghi, dopo oltre dieci anni di trattative, siamo finalmente giunti a un accordo sul cielo unico europeo, un tema che incide direttamente sulla vita quotidiana di milioni di cittadini.

Tuttavia, dobbiamo essere chiari: il testo che adotteremo domani non è all’altezza delle aspettative. L’Europa ha bisogno di uno spazio aereo unificato con una gestione integrata e rotte dirette per ridurre ritardi, costi e soprattutto l’impatto ambientale.

Oggi la frammentazione del nostro spazio aereo genera inefficienze gravi, costando ai passeggeri tempo e denaro. Ogni ritardo si traduce in maggiori emissioni e questo è un prezzo che il nostro pianeta non può più permettersi di pagare.

Il regolamento che ci apprestiamo a votare promuove una maggiore cooperazione tra le autorità nazionali ma non impone regole vincolanti per una vera integrazione dello spazio aereo europeo. È un compromesso necessario, ma non sufficiente.

Personalmente lo considero solo un primo passo. Non dobbiamo fermarci: l’Europa ha bisogno di un cielo unico europeo per essere più competitiva.

Julien Leonardelli, au nom du groupe PfE. – Madame la Présidente, nous nous défions de tout projet qui penche vers le fédéralisme, à plus forte raison lorsqu’il est placé sous l’égide de la Commission européenne. Cela ne nous empêche pas d’être pragmatiques et responsables. Le projet de ciel unique européen vise, nous dit-on, à faciliter les trajets aériens à l’intérieur de l’Union européenne et à faire économiser 5 milliards d’euros par an de kérosène pour les compagnies aériennes.

La Commission européenne ne pouvait que briller sur ce sujet technique, qui bénéficie d’un véritable consensus européen. Cette initiative, soutenue par une large majorité, ne devait être qu’une formalité. Mais la Commission, trop occupée à outrepasser ses compétences, en oublie ses objectifs premiers. Ce texte ne verra pas l’instauration d’un ciel unique européen, malgré des années de tractations. La montagne a accouché d’une souris. C’est en tout cas ce qui ressort des positions des professionnels du transport aérien, qui ne cachent pas leur déception à l’égard de ce texte.

Le maintien d’un millefeuille à la fois administratif et technocratique ne plaît à personne. Pendant que l’Europe brasse du vent et se penche sur un texte ridicule, qui ne change rien tant ces changements sont insignifiants, les Etats-Unis, eux, produisent déjà en très grande partie la nouvelle génération de carburants par des subventions massives dans la recherche et l’industrie. En matière d’industrie comme d’énergie, les pays européens restent à la traîne, et la Commission européenne n’y est pas pour rien. Madame von der Leyen, sur la souveraineté faites preuve de plus de retenue, et sur le ciel unique montrez plus d’ambition.

PREȘEDINȚIA: VICTOR NEGRESCU
Vicepreședinte

Jan-Christoph Oetjen, im Namen der Renew-Fraktion. – Herr Präsident, Herr Kommissar, verehrte Kolleginnen und Kollegen! Zehn Jahre hat es gedauert, dass wir dieses Gesetz, diesen einheitlichen europäischen Luftraum, auf den Weg gebracht haben. Nicht etwa, weil wir hier im Parlament lange gebraucht hätten, sondern es hat an den Mitgliedstaaten gelegen, die sich sehr lange hinter nationalen Kompetenzen versteckt haben. Diese nationalen Kompetenzen haben dazu gedient, zu kaschieren, dass es in den Mitgliedstaaten staatliche Monopole in der Flugsicherung gibt, die sie nicht angetastet sehen wollen. Und zur Wahrheit gehört: So richtig antasten tun wir sie jetzt auch nicht. Das, was wir machen, ist keine Reform, sondern ein Reförmchen, aber sie adressiert wichtige Themen.

Wir kriegen endlich dieses performance review, das heißt endlich ein Benchmark für die Flugsicherung – ob sie gut funktionieren, ob sie genügend Leute haben, wie es klappt mit den Verspätungen, an denen – nicht immer, aber sehr häufig – eben auch die Flugsicherung mit Schuld ist.

Wir haben eine Kapazitätsfrage, die sich dadurch adressieren lässt, und von daher können wir am Ende dieser Reform zustimmen. Aber sie ist weit von dem entfernt, was wir uns eigentlich erhoffen und was wir bräuchten, damit wir die Verspätungen in Europa endlich in den Griff bekommen.

Merja Kyllönen, The Left-ryhmän puolesta. – Arvoisa puhemies, yhtenäisellä eurooppalaisella ilmatilalla on pitkä historia. Tavoitteena on vähentää viivytyksiä, lisätä turvallisuutta, lieventää ympäristövaikutuksia ja alentaa palvelujen tarjoamiseen liittyviä kustannuksia ilmailualalla. Euroopan ilmatilan pirstoutumisen vähentäminen tehokkaammalla ilmaliikenteen hallintajärjestelmällä on enemmän kuin tarpeellista. Vaikka politiikka on edennyt, niin SES ei ole onnistunut saavuttamaan täysin siltä odotettua edistystä. Tämän seurauksena Euroopan ilmatila on edelleen valitettavan pirstoutunut, kallis, tehoton ja kapasiteettiongelmat jatkuvat nopeasti kasvavan lentoliikenteen vuoksi. Työn on siis jatkuttava, paikoilleen emme voi jämähtää.

Nykyinen sääntelykehys on pitkän aikavälin työ. Siinä on ollut mukana monenlaisia toimijoita. Siinä on ollut mukana monenlaista vääntöä sellaisia historian paloja, taisteluita, joita muun muassa Yhdistynyt kuningaskunta ja Espanja kävivät aikanaan, esimerkiksi Gibraltarin osalta. Kun Brexit poisti tämän esteen, komissio on muuttanut alkuperäistä ehdotustaan, ja hyvä niin.

Jäsenvaltiot tarvitsevat laajaa yhteistyötä ja koordinointia toiminnallisissa ilmatilan lohkoissa, myös yhtenäisen eurooppalaisen ilmatilan sääntelykehyksen luomisen jälkeen. Tässä säädöksessä tunnustetaan olemassa olevien yhteistyöjärjestelyjen arvo ilmatilan hallinnan tehostamisessa ja lentoliikennevirtojen optimoinnissa tietyillä maantieteellisillä alueilla.

Liikenteessä yleisesti, mutta lentoliikenteessä erityisesti, turvallisuusnäkökulma korostuu ja siksi kaikissa muutoksissa on mentävä ehdottomasti turvallisuusnäkökulma edellä. Safety first! Ja ihan pakko on sanoa rakkaat terveiset aina upealle taisteluparilleni Marinesculle. Ja rakkaat terveiset myös britti Jodie Fosterille, jota ei voi kyllä tämä talo unohtaa. Olisinpa videoinut parhaat palat uusille päättäjille. Piccolino, magnifico, amato David Sassoli.

Siegbert Frank Droese, im Namen der ESN-Fraktion. – Herr Präsident! Seit 20 Jahren plant die EU einen einheitlichen Luftraum, aber wenig ist passiert. Wir teilen die Kritik der Airlines an dem Vorschlag der Kommission zum einheitlichen europäischen Luftraum. Es wird zu höheren Steuern führen, mehr Bürokratie, mehr Berichtspflichten – all das wollen wir nicht. Europa ist bisher schon ein sehr sicherer Luftraum. Warum also auf Biegen und Brechen die Kompetenzen der nationalen Flugsicherungsdienste beschneiden und alles in den EU-Topf werfen?

Es muss nicht alles harmonisiert oder einheitlich zertifiziert werden. Wichtig dagegen wäre für uns die Abschaffung von Sanktionen, z. B. gegenüber Russland. Dann könnten Flugzeuge schneller und vor allem umweltschonender nach Asien fliegen und so CO2 reduzieren. Aber immer neue Steuern und Vorschriften vertreiben Fluggesellschaften aus Europa und verteuern das Fliegen unnötig. Wir wollen, dass auch in Zukunft sich der Arbeiter noch seinen wohlverdienten Urlaubsflug leisten kann und nicht nur die Eurokraten.

Die Kommission könnte sich unserer Meinung nach mal mit wichtigen Dingen beschäftigen, beispielsweise mit der Migration, oder vielleicht gibt es in Zukunft auch Tausende von Abschiebeflügen zu organisieren – da würden wir gern mal einen schönen Vorschlag hören. Diesem Vorschlag, der hier vorliegt, können wir nicht zustimmen.

Lukas Sieper (NI). – Herr Präsident, verehrte Damen und Herren! Der berühmte deutsche Lyriker Reinhard Mey sang einst „Über den Wolken, da muss die Freiheit wohl grenzenlos sein“, und in diesen Worten steckt aus europapolitischer Sicht endlos viel Wahrheit. Denn über den Wolken gibt es keine Grenzen, da ist man einfach irgendwo über Europa. Deswegen unterstütze ich die Aktualisierung des Einheitlichen Europäischen Luftraums, auch wenn sie halb so lange gedauert hat, wie ich auf dieser Welt bin.

Gleichzeitig sollten wir aber nicht aufhören, wo wir jetzt angefangen haben, und über weitere Dinge nachdenken. Ich möchte Ihnen da zwei Sachen vorschlagen.

Zum einen braucht es eine Gebührenanpassung für klimafreundliche Flüge. Wir haben in der Vergangenheit gemerkt, dass wir vor allen Dingen über so etwas die Entwicklung in der Gesellschaft steuern können, und der Klimawandel kennt nun mal keine Grenzen.

Zum anderen benötigen wir einen einheitlichen europäischen Luft-Datenraum. Wir müssen also den Datenaustausch zwischen den Mitgliedstaaten im Luftverkehr optimieren und damit effizienter machen, denn auch Daten kennen keine Grenzen. Die Arbeit am Einheitlichen Europäischen Luftraum ist wertvoll – sie ist noch nicht vorbei.

Alvise Pérez (NI). – Señor presidente, ¿de verdad este Parlamento no entiende lo que se pretende hoy aquí, imponiendo el Cielo Único Europeo?

No se trata de fomentar la competencia, no se trata de mejorar ninguna descentralización ni de ahorrarnos un 10 % más de CO2. Esa es la gran farsa: ¿qué poder en Europa está más centralizado que la propia Comisión Europea? ¿Qué entidad ha centralizado más poder que la Comisión? Ninguna. ¿Y siguen de verdad creyéndose estas iniciativas en pro del supuesto medio ambiente?

Lo que busca con esto la Comisión es que hasta nuestros cielos dependan de una nueva entidad europea bajo el control férreo de Von der Leyen con la excusa del CO2. El Cielo Único Europeo no es más que un instrumento para expandir la supervisión y la regulación comunitaria imponiendo aún más objetivos ambientales, aún más cargas y aún más tarifas contra los usuarios de este continente. La señora Von der Leyen demuestra un desprecio absoluto por la soberanía de los países, y esta Cámara, también.

Y aquí, un orgulloso español les responde que el desprecio, evidentemente, es mutuo. Solo que hay una diferencia esencial: quien parasita y esclaviza a nuestro país es ella, mientras que nosotros solo anhelamos libertad.

Si queremos preocuparnos por el cielo europeo, defendámonos de las intrusiones y las amenazas militares por cielo, mar y aire con las que Marruecos y todas las falsas ONG del sur de Europa están atentando contra nuestro país.

Esta no era la Europa que nos prometieron. Esta es una Europa mesiánica en la que no nos reconocemos.

Intervenții la cerere

Maria Grapini (S&D). – Domnule președinte, domnule comisar, stimați colegi, zece ani am fost în Comisia pentru transport și am tot dezbătut nevoia de îmbunătățire a Cerului unic european. Transportul prin aviație este extrem de important. Vorbeam mai devreme la raportul domnului Letta despre conectivitate, despre libera circulație. Domnule comisar, am patru zboruri pe săptămână – nu numai datorită condițiilor meteorologice sunt întârzieri. Întârzierile, așa cum ați spus și dumneavoastră, sunt frecvente și din alte cauze: lipsa de organizare, să stai pe pistă să aștepți că nu ai culoar de zbor.

Asta înseamnă că este nevoie să aplicăm acest regulament și îl susțin, pentru că s-a lucrat la el, îmbunătățește Cerul unic european și cred că avem nevoie de un transport reformat și pe aviație pentru, sigur, eficiență economică în piața internă și, de ce nu, pentru protejarea drepturilor pasagerilor. Prețurile nu se schimbă când ai întârziere, dar ajungi foarte târziu la destinație și câteodată îți pierzi practic întâlnirile pe care ți le-ai programat.

Γεάδης Γεάδη (ECR). – Κύριε Πρόεδρε, η εισήγηση για δημιουργία ενιαίου ευρωπαϊκού ουρανού αποτελεί μια προσπάθεια για βελτίωση της ασφάλειας, της αποδοτικότητας και της περιβαλλοντικής βιωσιμότητας των αεροπορικών υπηρεσιών, όπως έχει αναφερθεί.

Όμως, πώς μπορούμε να μιλάμε για ασφάλεια όταν κλείνουμε τα μάτια στις παρανομίες; Θα γίνω πιο συγκεκριμένος. Η λειτουργία του παράνομου αεροδρομίου της κατεχόμενης Τύμπου στην Κύπρο θέτει σε κίνδυνο τις πτήσεις και χιλιάδες πολίτες καθημερινώς, αφού ελλοχεύει τεράστιος κίνδυνος για αεροπορικά ατυχήματα.

Διερωτώμαι: δεν θα αντιδρούσατε αν λίγα μέτρα από το αεροδρόμιο της Φρανκφούρτης, δίπλα από το αεροδρόμιο στο Παρίσι, πλησίον του αεροδρομίου της Ρώμης, των Βρυξελλών, της Μαδρίτης, του Βερολίνου, λειτουργούσε ένα παράνομο αεροδρόμιο με δικούς του κανόνες; Φυσικά.

Επομένως, ας αφήσουμε τα λόγια και ας περάσουμε στις πράξεις, που δεν είναι ο συντονισμός και η επικοινωνία με κατοχικές αρχές —κάτι που θα οδηγούσε στην κανονικοποίηση της παρανομίας— αλλά η απαγόρευση της λειτουργίας του, που θα συνοδεύεται με αυστηρότατες κυρώσεις σε αεροπορικές εταιρείες που χρησιμοποιούν το παράνομο αεροδρόμιο.

João Oliveira (The Left). – Senhor Presidente, é certo que esta nova versão do Regulamento Céu Único Europeu não vai tão longe como a posição que o Parlamento Europeu havia aprovado, com tudo o que ela representava de ataque sem equívocos à soberania nacional, numa abordagem abertamente mercantilista e de liberalização ainda maior do setor aéreo, visando a sua concentração e centralização. Mas, esses não deixam de ser traços que persistem no documento final, mesmo que de forma matizada, traços que rejeitamos.

Em nome do que esta proposta não é, não faltará certamente quem procure ir além dela, nomeadamente em Portugal, dando continuidade e consequência às ameaças que têm recaído sobre a NAV, com vista ao desmembramento da sua atividade, com prejuízo para a soberania nacional e para a economia.

Pela nossa parte, daqui reafirmamos que continuaremos a intervir, rejeitando o caminho de liberalização do controlo aéreo e em defesa da NAV, empresa pública estratégica para o desenvolvimento nacional.

(Încheierea intervențiilor la cerere)

Wopke Hoekstra, Member of the Commission. – Mr President, ladies and gentlemen, dear Members, let me mention two quick points in response. The first one is on sovereignty. For those who are concerned about the impacts on the sovereignty of Member States over their airspace, let me be clear, and let me underline that all the provisions aim to foster better coordination within Europe. Member States will continue to decide whether and which parts of their airspace they open or they close. Full stop. It’s that simple. So I feel sovereignty will continue to be fully in place.

Secondly, in response to the Members who have been speaking, let me reiterate what I said in the first term, and that is that more is needed. More needs to be done, and more today would have been better. But politics is also quite often the art of the possible. We are where we are today. Let’s seal this now and then let’s move forward from there.

Jens Gieseke, Berichterstatter. – Herr Präsident, Herr Kommissar Hoekstra, liebe Kolleginnen und Kollegen! Ich danke für diesen konstruktiven Austausch. Obwohl das natürlich ganz rechts und ganz links schwerfällt, bei so einem sachlichen Thema konstruktiv mitzuarbeiten, glaube ich, dass wir insgesamt eine gute Debatte hatten.

Der einheitliche europäische Luftraum zeigt einmal mehr unser europäisches und auch unser EVP-Engagement für die kontinuierliche Unterstützung der Fluggäste, der Luftfahrtindustrie, der Forschung und Entwicklung, auch im Luftfahrt- und im Raumfahrtsektor, sowie auch die Einhaltung der Umweltversprechen. Wir streben ganz sicher nach effizienteren Flugsicherungsdiensten, weniger Verspätungen, einem geringeren ökologischen Fußabdruck und auch geringeren Kosten für Passagiere und Fluggesellschaften.

Der einheitliche europäische Luftraum ist ein erster Schritt vorwärts, um die Engpässe im Luftraum zu beseitigen, um endlich einen wirklich einheitlichen EU-Raum zu schaffen, ohne die nationale Souveränität zu beeinträchtigen. Das wird dann auch zu weniger Kosten und zu einer besseren Umweltleistung führen.

Ich glaube, morgen kann wirklich ein guter Tag werden für Europa. Von daher mein klarer Appell an alle Kolleginnen und Kollegen, morgen pünktlich zur Abstimmung zu kommen und für diese Neufassung zu stimmen. Ich stimme mit dem Kommissarsanwärter, aktuellen Kommissar und demnächst hoffentlich wiedergewählten Kommissar Hoekstra überein: Das ist ein erster Schritt heute, es werden weitere in den nächsten fünf Jahren folgen müssen. Aber für die EVP kann ich sagen: Wir sind bereit, diese Arbeit fortzusetzen. Unsere Bürger werden es sicherlich danken.

Johan Danielsson, Föredragande. – Herr talman! Jag blir glad över det engagemang som visats under debatten. Avslutningsvis vill jag betona att vårt arbete inom flygsektorn inte slutar här. Vi har, som många konstaterat, fortfarande mycket att göra för att säkerställa en rättvis och hållbar flygsektor i Europa.

Smidiga gränsöverskridande transporter är viktiga men får aldrig ske på bekostnad av arbetstagares rättigheter. Under denna mandatperiod hoppas jag därför att vi kan ta itu också med andra viktiga frågor som berör sektorn.

En revidering av EU:s förordning om luftfartstjänster står högt på agendan. För det första måste vi stärka reglerna kring så kallad wet leasing, där flygbolag hyr in plan med besättning. Wet leasing ska naturligtvis kunna användas för att möta oförutsedda händelser, men inte för att konkurrera med löner och arbetsvillkor.

Utvecklingen – där på ytan seriösa flygbolag skapar dotterbolag med enda syftet att pressa tillbaka personalens arbetsvillkor – är inte värdig och måste få ett slut. För det andra behöver vi tydligare definitioner kring personalens hemmabas. Vi har sett hur bolag i dag utnyttjar skillnader i nationell lagstiftning för att pressa ner lönekostnaderna. Också detta måste få ett slut.

Med det sagt återstår nu att genomföra Single European Sky. Det kommer att kräva fortsatt hårt arbete från EU-kommissionen i övervakningen av de regler som vi nu ändå får på plats, för att säkerställa att det verkligen blir ett steg framåt och inte ett slag i luften. Jag hoppas att alla är här och röstar för förslaget i morgon.

President. – The debate is closed.

The vote will take place tomorrow.

15. A stronger Europe for safer products to better protect consumers and tackle unfair competition: boosting EU oversight in e-commerce and imports (debate)

Didier Reynders, membre de la Commission. – Monsieur le Président, Mesdames et Messieurs les députés, je suis ravi d’être parmi vous aujourd’hui pour débattre des défis que pose le commerce électronique, tant en matière de protection des consommateurs que de concurrence loyale ou de durabilité. Ces dernières années, des milliards de colis individuels ont été expédiés directement aux consommateurs de l’Union, notamment par voie aérienne, et de nouveaux acteurs du commerce électronique, principalement installés en dehors de l’Union, dominent désormais le marché. Quatre milliards de colis devraient être livrés en 2024.

La Commission est consciente que cet afflux de marchandises achetées en ligne pose des défis en matière de conformité au cadre juridique applicable et de sécurité, de concurrence déloyale et de durabilité. En effet, bon nombre de ces produits s’avèrent dangereux, non conformes ou contrefaits.

En raison de l’urgence de la situation, nous devons identifier une réponse européenne collective pour garantir la sécurité et la conformité des produits vendus sur ces plateformes de commerce électronique situées dans des pays tiers, pour préserver les consommateurs de pratiques commerciales déloyales et pour assurer des conditions de concurrence justes et équitables aux entreprises européennes.

The Commission is ready to act in cooperation with the market surveillance authorities, the consumer protection and customs authorities, as well as with the digital services coordinators under the DSA to effectively enforce Union legislation and increase the controls on those platforms and products. We have instruments at our disposal that we are already using.

First, the Digital Services Act is a powerful tool and it is a priority to enforce this regulation. The Commission is fully committed to ensuring strong and effective enforcement against very large online platforms, notably marketplaces not complying with all rules, which risk fines up to 6% of their global turnover. The DSA gives the Commission unprecedented enforcement powers that are already available. The recent enforcement action by the Commission, which resulted in TikTok’s commitment to withdraw its ‘lite rewards’ system from the EU market, as it raised concerns of addictiveness, is a good example of what the DSA can deliver for the whole European Union.

More specifically, regarding e-commerce, the Commission has already launched an investigation in relation to AliExpress’ practices, including on suspicions related to the risk of dissemination of illegal products and the possible negative impact to consumer protection. We have also recently designated Temu and Shein as very large online platforms under the DSA, and already launched investigative actions in relation to these two online marketplaces. Consumer protection and compliance by online marketplaces is and will remain one of our enforcement priorities. We take this responsibility seriously and will not refrain to act decisively. The Commission will also coordinate closely with the digital services coordinators, which are responsible for the smaller online marketplaces, to ensure that smaller online marketplaces also follow the rules, and that these rules are consistently applied in the European Union. The European Board for Digital Services is crucial in this respect.

Second, customs authorities are the first line of defence when it comes to products imported from third countries. They are also key actors in the supply chain to identify and suspend the release of non-compliant and dangerous goods. The customs reform, proposed by the Commission in 2023, is currently being discussed by the European Parliament and the Council. Under this proposed reform, the implementation of an EU customs data hub would enable risk management at EU level, making the enforcement of compliance with product requirements more targeted and effective. Additionally, the proposal includes an abolition of the current threshold that exempts goods valued at less than EUR 150 from customs duties. These measures would be important tools for combating fraud and abuse. However, customs authorities cannot act alone. It is crucial for them to collaborate with market surveillance authorities and digital services coordinators to combine their tools, capacity and expertise.

Third, the Consumer Protection Cooperation Network, under the coordination of the Commission, has carried out several enforcement actions in recent years against key market players, such as Amazon and AliExpress, to bring them into line with EU consumer protection legislation. In May, the consumer organisation BEUC informed the Commission about practices of the e-commerce platform Temu and its alleged non-compliance with, among others, EU consumer laws. The Commission has immediately informed the CPC Network about this complaint, and discussions under that format are ongoing. Compliance by major e-commerce players, including those targeting European consumers from third countries, is a top priority for the Commission and national authorities. The Commission will continue to fully support and coordinate the enforcement work of the network.

Looking ahead, it will be essential to further tackle challenges with e-commerce platforms and strengthen measures to prevent non-EU compliant products from entering the EU market. This would include ensuring an optimal articulation between the General Product Safety Regulation, the Market Surveillance Regulation and the Digital Services Act. To further improve online product safety and compliance with relevant rules, it will be our priority to fully use the enforcement toolbox provided for under these regulations, for example, by organising product safety control to check and improve compliance of the e-commerce sector with EU product safety requirements, organising joint product sampling and testing activities involving online mystery shopping, and facilitating further the cooperation between market surveillance and customs authorities to give an unified response to the challenges of e-commerce.

To ensure that manufacturers outside the EU comply with all rules, the new GPSR also introduces a new obligation to appoint a responsible person for their products. This will guarantee traceability and responsibility for any goods sold on the open market. To address the issue at its source, it is also paramount to continue cooperating with manufacturing third countries. We are, for example, committed to continue the awareness-raising and training activities on EU product safety rules with Chinese companies. Apart from legal obligations, it is also important to explore voluntary cooperation mechanisms, such as the product safety pledge, which has enabled the removal of close to 60 000 unsafe products listings in the past six months.

It will also be crucial to further improve the current enforcement framework for cross-border infringement of EU consumer law, in order to preserve the level playing field in the Union and the competitiveness of EU businesses. To achieve this aim, we will continue to explore possible approaches to strengthen the Commission’s role in specific circumstances that affect consumers throughout the Union and to further improve the enforcement cooperation among national authorities. Moreover, the Commission encouraged the swift adoption of some proposed legislative initiatives, namely the ‘VAT in the digital age’ package and the customs reform, that aim to structurally improve the transparency and control on the flow of goods entering and leaving the union, starting by e-commerce goods.

I thank you for your attention. Of course, I am now looking forward to our debate and to try to collect your proposals, remarks, or maybe some criticism.

Andreas Schwab, im Namen der PPE-Fraktion. – Herr Präsident, Herr Kommissar, liebe Kolleginnen und Kollegen! Onlineplattformen haben die Art und Weise, wie Verbraucher einkaufen, grundlegend geändert. Verbraucherinnen und Verbraucher sind nicht mehr auf lokale Anbieter beschränkt, sondern können Waren bei internationalen Händlern einkaufen, wodurch ihre Auswahl erweitert wird und sie oft bessere Preise finden. Sie haben ja gerade angesprochen, Herr Kommissar: 4 Milliarden Pakete allein in diesem Jahr zeigen, dass die europäischen Verbraucherinnen und Verbraucher an internationalen Produkten interessiert sind und auf den besten Preis achten. Aber viele Drittstaatenplattformen stehen in der Kritik wegen mangelhafter Produktqualität, unzureichender Kontrollen und damit unfairer Wettbewerbsbedingungen.

Deswegen ist es gut, Herr Kommissar, dass Sie den Dreiklang aus Maßnahmen, die greifen können, dargestellt haben. Zoll: Wir haben nach wie vor 27 unterschiedliche Zollsysteme, obwohl das einheitliche europäische Zollrecht angewendet werden muss, und es wird leider unterschiedlich angewendet. Wir haben zum Zweiten die Marktaufsichtsbehörden, die alle in nationaler Hand sind und unterschiedlich stark ausgestattet sind, und wir haben das Gesetz über digitale Dienste. Und hier, Herr Kommissar, hätte ich mir etwas mehr erwartet, denn das Gesetz über digitale Dienste wird jetzt schon zum zweiten Mal gegenüber Temu in Anwendung gebracht – aber immer mit der Bitte um Auskunftserteilung und nicht mit Entscheidungen.

Hier müssen wir schneller vorankommen, denn mit dem Gesetz über digitale Dienste und dem Gesetz über digitale Märkte hat das Europäische Parlament hier – dieses Haus – in den vergangenen Jahren wichtige Schritte unternommen, um das Vertrauen der Bürger in die Sicherheit des Internets zu stärken und um europäischen Unternehmen fairen Wettbewerb anzubieten. Daran wollen wir festhalten, und deshalb ist die Europäische Kommission gefordert, hier Schritte folgen zu lassen.

Laura Ballarín Cereza, en nombre del Grupo S&D. – Señor presidente, señor comisario, un 71 % de la población europea compra bienes y servicios en línea. El comercio en línea es cómodo, es barato, pero tiene muchos riesgos. Por ello, regularlo bien es ya inaplazable.

Sabemos que plataformas de comercio electrónico, como Amazon, Aliexpress, Temu o Shein, están afectando a nuestro comercio en tres aspectos clave.

En primer lugar, en la seguridad de productos que consumimos: juguetes, ropa, etc. Todos conocemos esos productos que nos llegan a casa y que no cumplen las condiciones mínimas.

En segundo lugar, en el enorme impacto que tienen sobre el comercio local de nuestros municipios, que está siendo asfixiado por la competencia desleal de estas plataformas a nuestras pymes europeas.

Y, en tercer lugar, en el medio ambiente, porque sabemos que estas empresas abandonan a su suerte toneladas de paquetes devueltos por clientes en Europa y en otros continentes, lo que pone en riesgo la salud de todo el planeta.

Para eso tenemos leyes, apliquémoslas: más controles en las aduanas, y comercio y consumo responsable para proteger nuestro medio ambiente, a nuestros consumidores y nuestro comercio local.

Virginie Joron, au nom du groupe PfE. – Monsieur le Président, chers collègues, Monsieur le Commissaire, nous voici en marche vers cinq ans de teutonneries supplémentaires. On avait espéré en 2019 que le premier mandat von der Leyen ferait état d’une gestion saine et honnête. Mais on a eu le matraquage des automobilistes, un dérapage budgétaire et les fourberies de Pfizer.

Ce soir, nous parlons donc de la surveillance européenne des marchés du commerce en ligne, pendant que nos commerces de proximité ferment les uns après les autres. La vente de produits dangereux, illicites, contrefaits ou volés est encore légion sur les grandes plateformes. Cette lutte, c’était pourtant ce que vous aviez promis lors de l’adoption de toutes les législations précédentes sur la question. Votre slogan? «Le règlement sur les services numériques protégera vos enfants.» Aujourd’hui, ce n’est plus un règlement sur les services numériques, mais un règlement sur la surveillance numérique qui a été mis en place, sous l’impulsion du démissionnaire Thierry Breton. Les associations de consommateurs ont signalé en avril dernier le géant chinois Temu, parce qu’il n’assurait pas l’identification des vendeurs. C’est l’article 30 du règlement sur les services numériques. Ces mêmes associations ont fait état de cas où le consommateur est manipulé par des prix qui changent ou qui ne correspondent pas au produit choisi. C’est l’article 25 du règlement sur les services numériques. On a eu la directive de 1998 sur les indications de prix, la directive de 2005 sur les pratiques commerciales prohibées, les nouvelles règles de sécurité des jouets ou encore la réforme du code des douanes.

Mais la réalité, c’est une jungle de normes qui empêchent nos entreprises françaises ou européennes de se développer, et des pays tiers, comme la Chine, leader mondial du commerce électronique, qui contournent sans problème nos règles – dixit un inspecteur de l’OLAF – ou, pis, qui bénéficient d’exemptions des frais de douane pour les achats dont la valeur ne dépasse pas 150 euros. Une jungle où, finalement, c’est Bruxelles qui tire une balle dans le pied du commerce électronique européen.

Piotr Müller, w imieniu grupy ECR. – Panie Przewodniczący! Panie Komisarzu! Szanowni Państwo! Regulacje dotyczące bezpieczeństwa produktów w Europie są niezwykle ważne. One powodują, że z jednej strony konsumenci są bezpieczni, a z drugiej strony, że standaryzujemy pewnego rodzaju rozwiązania produkcyjne w Europie, co oczywiście też przynosi wymierne korzyści i bezpieczeństwo dla konsumentów. Jednak widzimy tę rosnącą konkurencję ze strony w szczególności rynków azjatyckich i moją obawą jest to, że te przepisy w praktyce nie będą obowiązywały właśnie wobec tych krajów, które dostają się na rynek europejski w sposób inny niż produkcja na naszym rodzimym rynku.

W związku z tym mam pytanie do Pana Komisarza, jakie działania tutaj można byłoby podjąć (chociażby być może zapisując w nowej perspektywie budżetowej, nad którą będziemy pracować, dodatkowe środki dla urzędów, dla instytucji krajowych i unijnych, ale przede wszystkim krajowych, bo one najczęściej kontrolują jakość produktów), aby właśnie rzeczywista kontrola tych produktów, które pochodzą w szczególności z Azji, miała miejsce.

Svenja Hahn, im Namen der Renew-Fraktion. – Herr Präsident! Wenn Spielzeuge für Babys so leicht auseinanderfallen, dass sie daran ersticken können, dann haben Eltern zu Recht Angst. Vor allem, wenn Untersuchungen zeigen, dass mehr als die Hälfte von Spielzeugen aus Drittländern wie China gefährlich ist.

Wenn Designs von kleinen europäischen Designern kopiert werden und die Klamotten aus fragwürdiger Produktion mit giftigen Chemikalien belastet sind und dann auch noch über Plattformen wie Temu und Shein zu Billigpreisen verschleudert werden, dann leiden wir Verbraucher, unsere Umwelt und unsere Unternehmen, die sich an Recht und Gesetz halten.

Illegale und unsichere Produkte dürfen nicht in unseren Binnenmarkt kommen, am besten, weil sie bereits vor Verkauf gestoppt werden. Die Kommission und die Mitgliedstaaten müssen geltendes Recht rigoros durchsetzen: das Gesetz über digitale Dienste und die neuen Regeln zu Produktsicherheit. Wir müssen gemeinsam unsere Marktüberwachung und unseren Zoll stärken. Vor allem die Digitalisierung des Zolls muss schneller vorangehen, damit wir die digitale Voranmeldung und auch den Wegfall der Freigrenze für illegale Produkte haben können, damit wir illegale Produkte aus unserem Markt fernhalten können.

Ich baue darauf, dass die Kommission zügig einen Aktionsplan mit den Mitgliedstaaten umsetzen wird, damit unsere Kleinsten sicher sind, damit Shopping weder zur Ausbeutung von Umwelt noch von Menschen führt und Wettbewerb fair ist.

Saskia Bricmont, au nom du groupe Verts/ALE. – Monsieur le Président, Monsieur le Commissaire, vous l’avez dit: Temu, Shein, AliExpress, Amazon et de plus petites plateformes inondent le marché européen de produits à faible coût. Mais, derrière ces bas prix, il y a des coûts énormes, notamment des techniques de manipulation en ligne incitant à l’hyperconsommation ou des produits de mauvaise qualité pouvant s’avérer dangereux pour la santé et la sécurité.

Une enquête a même révélé que 80 % des jouets testés ayant été importés par le biais de ces plateformes ne respectaient pas les normes de sécurité européennes. Cela induit aussi une concurrence déloyale pour les entreprises européennes qui respectent les normes sociales, environnementales, de produits, de sécurité. Ces normes existent au niveau européen pour de bonnes raisons: la protection des consommateurs, des travailleurs, de l’environnement. Elles doivent donc être respectées par tout le monde, y compris par les entreprises importatrices et par les plateformes de pays tiers.

Des centaines de milliers de colis arrivent chez nous tous les jours, en un clic et sans avoir fait l’objet de contrôles. Autant de produits potentiellement dangereux, qui ne respectent pas les normes européennes. Cette concurrence déloyale touche tous les secteurs et constitue souvent un frein au développement de filières locales durables et sociétalement responsables. C’est le cas notamment du secteur textile, où la concurrence déloyale de l’«ultrafast fashion» venant des plateformes chinoises menace l’émergence d’un secteur textile durable en Europe.

L’Union européenne est bien là pour protéger les consommateurs et nos entrepreneurs: il faut donc assurer effectivement le respect des règles, la transparence et l’information des consommateurs, mais aussi des contrôles douaniers renforcés et les moyens nécessaires à de tels contrôles, des droits de douane même pour les achats de moins de 150 euros, et un renforcement des sanctions à l’égard des plateformes qui ne respectent pas les règles.

Hanna Gedin, för The Left gruppen. – Herr talman! Jag ska börja med att säga att jag är glad att vi har den här diskussionen, för situationen är ohållbar.

Från Vänstern har vi länge krävt ett stramare regelverk för e-handelsplattformar. Ett test som nyligen gjordes av leksaksbranschen visar att åtta av tio leksaker som importeras till EU och kan köpas på olika internetsajter riskerar att kväva eller förgifta barn – kväva och förgifta våra barn.

De uppfyller inte EU:s säkerhetskrav. Vår uppgift som lagstiftare är att se till att minska risken för olyckor, att se till att medborgarna är trygga och säkra. Det gör vi genom att premiera miljövänliga och säkra produkter, samtidigt som vi ser till att arbetsvillkoren för dem som producerar de här sakerna är bra.

Det är inte bara barn och andra konsumenter i Europa som riskerar att skadas. Det finns återkommande indikationer på att många av de här produkterna, förutom att de är skadliga, dessutom är tillverkade genom tvångsarbete.

Kommissionen måste agera – inte bara för att den här slapphäntheten mot utländska internetsajter konkurrerar med lägre standarder och sämre arbetsvillkor än varor som produceras i enlighet med EU-lagstiftning. Dagens regelverk leder faktiskt till stora risker för alla medborgare – inte minst för våra barn. Lösningen måste vara att även utländska sajter får samma skyldigheter som inhemska aktörer, att tullen får större resurser och att varor som importeras, till exempel från Kina, inte längre ska subventioneras när det kommer till exempelvis fraktkostnader.

Zsuzsanna Borvendég, a ESN képviselőcsoport nevében. – Tisztelt Elnök Úr! A helyi termelők által helyben előállított termékek védik a környezetet és a nemzetgazdaságot is erősítik, vagyis minden szempontból a társadalom jólétét szolgálják. Emiatt kezdett pártom, a Mi Hazánk Mozgalom hazai termelői vásárokat szervezni Magyarországon, ezzel is népszerűsítve a jó minőségű helyi termékek fogyasztását. Az élelmiszeripar különösen veszélyeztetett ezen a területen. Vissza kell szorítani a globális élelmiszerláncok sokszor gyenge minőségű, földrészeken át utaztatott, agyonvegyszerezett termékeinek dömpingjét.

A multik gazdasági érdekei nem írhatják felül az emberek egészséges élethez való jogát, de meg kell akadályozni azt is, hogy politikai elfogultság alapján olyan mezőgazdasági termékeknek nyissunk szabad utat, amelyek nem felelnek meg az EU-s előírásoknak, ahogy az számos ukrán termék esetében megtörténik. Azonnali hatállyal meg kell tiltani a harmadik országokból érkező hamisított méz importját is. Ennek érdekében egy előterjesztést is készítettem, amelyet az ESN frakció benyújtott, de az AGRI bizottság napirendre sem volt hajlandó ezt tűzni. Kérem, gondolják ezt át újra!

Christel Schaldemose (S&D). – Hr. Formand, kommissær. Flere og flere handler på nettet. Legetøj, tøj, gaver. Det er nemt, det er bekvemt, og det er praktisk. Men hvis man handler på platforme som Temu, så kan det altså skade både din sundhed, vores miljø og den europæiske konkurrenceevne, og alt for mange af f.eks. Temu’s produkter de lever simpelthen ikke op til de europæiske regler. De er sundhedsskadelige, miljøskadelige, og så er de også ødelæggende for vores konkurrencesituation for vores europæiske virksomheder. Derfor er der brug for, at der sker noget. Vi har fået mange nye regler, men vi har brug for, at de bliver håndhævet. Derfor vil jeg gerne opfordre EU-Kommissionen til at komme i gang med at håndhæve reglerne og gøre det lidt hurtigere, end det, der sker i dag. Vi har fået nogle gode regler i det, jeg sagde. Spørgsmålet er, om de er gode nok, spørgsmålet er, om der skal mere til. Noget af det, som jeg tror, vi skal kigge på, er, om vi egentlig ikke burde give disse handelsplatforme et importøransvar, så de fik et meget konkret og direkte ansvar for at sikre, at de produkter, de sælger, overholder de europæiske regler. Så hurtigere og bedre, og hvis ikke det er nok, så tror jeg, at vi skal se på, om der skal endnu flere strammere regler til.

Ernő Schaller-Baross (PfE). – Tisztelt Elnök Úr! A termékbiztonság egyre sürgetőbb kérdés Európában, különösen az e-kereskedelem gyors ütemű terjedése révén. Mondjuk ki őszintén, a piacfelügyelet rendszere ma nem elég hatékony, hogy lépést tartson a digitális világ kihívásaival. A fellépés hiánya komoly kockázatot jelent polgáraink biztonságára nézve, és hosszú távon veszélyezteti Európa versenyképességét is. Az e-kereskedelem gyors üteme és a határokon átnyúló eladások miatt a tagállami hatóságoknak nehéz feladatuk van, hogy minden egyes terméket ellenőrizzenek.

Így a fogyasztók biztonsága gyakran veszélybe kerül, és a szabályozás átláthatóságának fenntartására s kihívásokkal szembesül. Az Európai Parlament nem blokkolhatja tovább a háromoldalú tárgyalásokat, kezdje el a munkát. Kezdje el a termékbiztonságot érintő javaslatok, többek között a játékbiztonságról szóló szabályok tárgyalását is. Ne hagyjuk, hogy a késlekedés ára az európai polgárok vagy gyermekeink biztonsága legyen! Tegyük meg a szükséges lépéseket közösen, hogy Európa továbbra is az innováció és a biztonságos termékek kontinense lehessen. A jelenlévő vagy nem jelenlévő TISZA párti képviselőknek pedig azt üzenem, hogy ne féljenek, ha kérdést tesznek föl ebben a Házban, ebben a teremben válaszolni is lehet.

Denis Nesci (ECR). – Signor Presidente, onorevoli colleghi, la protezione dei consumatori e la lotta alla concorrenza sleale, soprattutto nel commercio online, sono una questione prioritaria per l’Europa.

Troppi prodotti non conformi agli standard europei continuano a entrare nel nostro mercato attraverso l’e-commerce, mettendo a rischio la sicurezza dei consumatori e penalizzando le nostre aziende, in particolare le piccole e medie imprese italiane ed europee.

Non possiamo più accettare che le nostre imprese siano costrette a competere ad armi impari con prodotti di bassa qualità provenienti da paesi che non rispettano le nostre regole. Le aziende che rispettano rigorosamente la normativa europea su sicurezza e qualità sono penalizzate da una concorrenza sleale.

Dobbiamo rafforzare i controlli alle frontiere, garantire che i prodotti importati rispettino gli stessi standard che le nostre imprese sono tenute a seguire. Chiediamo che l’Unione europea intervenga con decisione: è fondamentale che le piattaforme di e-commerce non diventino un canale privilegiato per la vendita di prodotti non conformi. Questo è un punto essenziale per difendere la sovranità economica italiana e quella europea, proteggendo il nostro tessuto produttivo.

Come abbiamo spesso sottolineato, la nostra economia non può continuare a subire le conseguenze di politiche commerciali che favoriscono attori esterni a scapito delle nostre eccellenze.

Majdouline Sbai (Verts/ALE). – Monsieur le Président, chers collègues, en dix ans, le chiffre d’affaires du commerce électronique a été multiplié par trois. Rien qu’en France, le chiffre d’affaires du site Shein se monte à 1,63 milliard d’euros. C’est un tsunami économique.

Alors oui, oui à la protection des consommateurs, oui à la fin de l’exonération des droits de douane en dessous de 150 euros d’achats, oui à une enquête précise sur les soupçons de subventions chinoises et de concurrence déloyale, oui à la fin de la publicité mensongère, oui, encore oui au contrôle sur la toxicité, la propriété intellectuelle et la sécurité des données personnelles.

Oui, mais quand? Combien d’enseignes et de marques européennes auront fermé entre-temps? Combien de chaussures pour enfants intoxiquées au plomb aurons-nous achetées? Combien de jeunes auront adopté des comportements de consommation détestables pour notre avenir?

Alors, oui à tout cela, mais quand? Je vous le dis: agissons maintenant!

Leila Chaibi (The Left). – Monsieur le Président, chers collègues, des ballons de baudruche à gonfler soi-même bourrés de substances cancérigènes, des jouets comprenant des pièces qui peuvent être avalées, des casques de moto pour enfants qui, en fait ne protègent pas du tout, des détecteurs de fumée qui ne détectent pas la fumée… Ces produits dangereux ne sont pas des exceptions: ils pullulent sur des plateformes de vente en ligne comme Amazon, Temu ou Wish. Les associations de consommateurs les ont testées, et le constat est alarmant.

Comment est-il possible que ces objets puissent envahir le marché européen? La réponse est simple. Pour les géants du commerce électronique, la priorité c’est: les profits, et le marché européen, c’est le jackpot.

C’est un triple jackpot, en réalité. D’abord, un jackpot sur les normes de sécurité, car ces plateformes ignorent les normes de sécurité en vigueur chez nous. Elles inondent l’Union européenne de produits qui ne respectent pas les réglementations en matière de sécurité, et mettent donc les Européens en danger.

C’est un jackpot sur les conditions de travail, car ces produits sont fabriqués dans des conditions inacceptables, en exploitant les travailleurs et en détruisant la planète.

C’est un jackpot sur les obligations fiscales, car, pour couronner le tout, ces plateformes trouvent le moyen d’échapper à leurs obligations fiscales. Et tout cela permet à ces plateformes de commerce électronique de casser les prix et d’écraser nos entreprises européennes, qui ne peuvent pas rivaliser face à cette concurrence déloyale.

Chers collègues, il est temps de sonner la fin de la récré pour Amazon, pour Temu, pour Alibaba et compagnie. L’Union européenne passe beaucoup de temps à discuter, à légiférer sur le poids des pommes ou sur la pulpe des poires. Je ne dis pas que ce n’est pas intéressant, que ce n’est pas important, mais je crois qu’il y a plus important et plus urgent en matière de normalisation au sein du marché unique.

Les plateformes de commerce électronique doivent assumer leurs responsabilités et se soumettre à nos règles communes. Elles doivent être tenues pour responsables des produits qu’elles vendent, comme n’importe quel commerçant en réalité. Si elles veulent jouer dans notre cour, alors elles doivent se conformer à nos règles. Pas de passe-droit. La santé et la sécurité des Européennes et des Européens passent avant leurs profits.

Kateřina Konečná (NI). – Pane předsedající, kolegyně a kolegové, hračky pro batolata, které se snadno rozbijí na malé kousky, u nichž hrozí vdechnutí, nefungující plynové alarmy či hračky a kosmetika obsahující nebezpečné chemikálie – zkrátka produkty, které ohrožují spotřebitele a které jsou v Evropské unii zakázány vyrábět i prodávat.

Jenže e-shopy až do této chvíle dokáží naše pravidla zdatně obcházet a společně s nimi je obchází i výrobci ze zemí mimo Evropskou unii. Tyto zdraví i život ohrožující výrobky, jež často cílí na děti, nadále zaplavují evropský trh díky e-shopům a nízkým nákladům na jejich výrobu. Budu ráda, pokud konečně tuto skulinu, jednou provždy, odstraníme. On-line platformy musí také nést odpovědnost za produkty, které na svých stránkách nabízejí. Jejich stahování musí mít jasná pravidla. Informační systémy musí být lépe připraveny a pokuty za jejich prodávání musí být značně vyšší, než byly dosud. Jsem ráda, že alespoň zde se věci mají s novými pravidly ubírat správným směrem.

Kamila Gasiuk-Pihowicz (PPE). – Panie Komisarzu! Koledzy, koleżanki! Unia Europejska jest liderem we wprowadzaniu regulacji chroniących konsumentów na rynku cyfrowym, a jednocześnie miliony Europejczyków korzystają z niespełniających standardów Unii Europejskiej produktów. Dlaczego? Po pierwsze dlatego, że europejski rynek jest zalewany przez chińskie subsydiowane towary sprzedawane po bezkonkurencyjnie niskich cenach. 2023 rok 2 miliardy paczek, 2024 rok dwa razy tyle paczek – 4 miliardy.

Po drugie wjeżdżają niebezpieczne produkty. W liście, który otrzymałam od 100 producentów zabawek z Polski, wskazano na sprawozdanie Toy Industries of Europe, z którego dowiadujemy się, że 18 z 19 zabawek kupionych na platformie Temu stanowi rzeczywiste zagrożenie dla bezpieczeństwa dzieci. Po trzecie chińskie platformy sprzedażowe stosują agresywny marketing i manipulują klientami. Często informacje o tym, kto sprzedaje i za ile sprzedaje wymagają dziesiątki kliknięć, a i tak na koniec są podawane po chińsku.

Co możemy zrobić, żeby przywrócić uczciwą konkurencję? Po pierwsze wprowadzić poza nielicznymi wyjątkami cła na paczki o wartości do 150 euro. Po drugie Komisja musi skutecznie i szybko egzekwować istniejące prawo. Po trzecie działania organów nadzoru krajowych i unijnych muszą być skoordynowane. Musimy to zatrzymać, zanim będzie za późno, zanim miliony produktów niespełniających standardów bezpieczeństwa trafią do naszych domów, do rąk naszych dzieci, zanim setki tysięcy miejsc w Europie znikną. Musimy to zrobić teraz.

Maria Grapini (S&D). – Domnule președinte, stimați colegi, discutăm de protecția consumatorului și concurența loială în piață, domnule comisar. Sigur, am dezbătut astăzi și dezbatem comerțul online. Avem foarte multe reglementări, le-ați enumerat și dumneavoastră. Întreb: poate un cetățean, un consumator care a achiziționat online un produs să se apere dacă produsul e defect, dacă se îmbolnăvește, dacă produsul nu este conform? Avem reglementare de la etichetare până la dreptul la repararea produselor.

Totuși, în piața internă sunt extrem de multe produse neconforme din țări terțe și – sigur nu vă dau, cred, o noutate – și în comerțul online avem produse din țări terțe pentru că acordurile nu sunt bine comercial făcute. Nu este subliniată respectarea standardelor de produs, cele europene, și atunci întrebarea este: cum le aplicăm? Reformarea vămilor – pentru prima dată vom avea o autoritate europeană pentru vămi. Problema este de aplicare, nu de reglementare. Am rămas în urmă cu implementarea și cred că aici trebuie să punem accent împreună cu statele membre, evident, ca să protejăm cu adevărat consumatorii.

Gilles Pennelle (PfE). – Monsieur le Président, nous ne pouvons bien évidemment, au groupe des Patriotes pour l’Europe, que saluer l’intention de protéger les consommateurs européens. Cependant, le rapport Letta nous démontre que nous assistons à une augmentation des fraudes, à une augmentation de la concurrence déloyale et à ces fameuses importations de produits dangereux.

Alors certes, on a beaucoup parlé des jouets. Je voudrais aussi parler des médicaments, par exemple, qui sont extrêmement dangereux pour la santé lorsqu’ils sont achetés sur des sites que personne ne contrôle. Dans la réalité, vous récoltez, à la Commission et dans cette Union européenne, les fruits de votre politique. C’est le résultat du dogme suprême du libre-échange qui nous amène là où nous en sommes.

En effet, comment contrôler cette jungle qu’est devenu aujourd’hui le commerce électronique, où les géants du numérique règnent en maîtres. Je pense que les solutions ne sont, comme d’habitude, pas celles que vous proposez. Les solutions sont nationales. Il faut renforcer les douanes nationales pour contrôler ces importations de produits dangereux.

Je voudrais, puisqu’il me reste quelques secondes, rappeler que, dans la plus grande opacité, dans le plus grand secret, la Commission européenne négocie actuellement le traité de libre-échange avec le Mercosur. Mais, là aussi, nous allons probablement importer des produits dangereux, des viandes de très mauvaise qualité, nourries par des produits interdits dans l’Union européenne.

Finalement, vous êtes face à vos contradictions. Il est temps de changer de politique.

Francesco Torselli (ECR). – Signor Presidente, onorevoli colleghi, oggi l’Unione europea sta subendo un vero e proprio attacco da parte di certe nazioni straniere a colpi di prodotti non conformi, di bassissima qualità, spesso anche pericolosi per il consumatore finale.

Un attacco che sfrutta due falle esistenti nel nostro sistema di difesa: la prima, la possibilità di aggirare facilmente le regole da parte di certe piattaforme online; e la seconda, il fatto che l’Europa negli ultimi anni ha promulgato una serie di regolamenti autolesionisti, che spesso sembravano più favorire chi stava fuori dall’Europa piuttosto che le nostre imprese.

È essenziale che oggi l’Unione europea intensifichi i controlli alle frontiere, protegga i consumatori, contrasti la concorrenza sleale. Dobbiamo migliorare la cooperazione, responsabilizzare le piattaforme online. Cooperazione e responsabilità: queste sono le ricette per un’Europa più forte che contrasti il commercio illegale.

Nikola Minchev (Renew). – Mr President, the European Union is a global leader in setting high standards with the aim of ensuring quality and protecting our consumers. ‘Made in the EU’ is not just a label; it’s an unmatched guarantee of quality and safety. Yet we allow unreasonably cheap, low-quality, sometimes even dangerous, products to flood our markets, undercutting our industries. This must change.

We need stronger enforcement of anti-dumping measures to defend the integrity of our single market. The European Commission has made recent strides, improving trade defence instruments by over 40 % to allow faster investigations and duties on unfair imports. But more action and especially enforcement of the existing rules is needed.

Take my own country, Bulgaria. As the EU’s sixth largest exporter of electric bikes, our manufacturers face competition from cheap, lower quality imports from non-EU countries. These imports threaten to destabilise the growing sector. Robust enforcement, like recent EU actions against Chinese e-bikes, is essential to protect jobs, innovation and fair competition across Europe.

Anna Cavazzini (Verts/ALE). – Herr Präsident, liebe Kolleginnen und Kollegen! Der Teddybär auf der Onlineplattform Temu, der sieht süß und flauschig aus und kostet auch nur zwölf Euro. Aber wenn die Verbraucherinnen und Verbraucher diesen Teddy bestellen, besteht die 95-prozentige Wahrscheinlichkeit, dass er den europäischen Vorgaben für Produktsicherheit nicht entspricht. In anderen Worten: Das Kuscheltier ist gefährlich: Seine Augen können verschluckt werden, oder das Fell ist vielleicht giftig.

Dem immer schneller wachsenden Anteil des Onlinehandels, besonders mit Billigprodukten aus China, stehen Zoll und Marktüberwachung hier in Europa hilflos gegenüber. Dieses Jahr gehen Schätzungen zufolge vier Milliarden Pakete in die Europäische Union ein, die unter der Zollgrenze von 150 Euro liegen, und sie landen direkt bei den Verbraucherinnen und Verbrauchern.

Es ist allerhöchste Zeit, unseren hohen europäischen Verbraucherschutz auch im Onlinehandel durchzusetzen. Die Kommission muss das Gesetz über digitale Dienste konsequent umsetzen und Online-Marktplätze mehr in die Verantwortung nehmen. Die EU-Zollreform ist der Schlüssel, um Kontrollen an unseren Grenzen zu verbessern. Das Parlament hat seine Hausaufgaben gemacht; der Rat schleicht und blockiert, und wir verlieren kostbare Zeit.

Wir brauchen endlich mehr rechtliche und finanzielle Verantwortung für die Onlineplattformen. Den großen Wurf hat leider die konservative Seite dieses Parlaments in der letzten Legislatur blockiert; jetzt erkennen alle, glaube ich, dass es ein Fehler war.

Christian Doleschal (PPE). – Herr Präsident, Herr Kommissar, liebe Kolleginnen und Kollegen! Ein T-Shirt für drei Euro, eine Jacke für sieben oder ein Kinder-Plüschtier für wenige Cents: E-Commerce-Händler wie Temu oder Shein überfluten mit aggressiven Vermarktungsstrategien und Dumpingpreisen unsere Märkte. Allein 2023 exportierten Shein und Temu zusammen täglich 9000 Tonnen Fracht nach Europa. Mit ihren unlauteren Praktiken setzen sie unsere Onlinehändler, aber auch unsere Geschäfte in unseren schönen Innenstädten unter enormen Druck. Während diese sich an strenge europäische Vorschriften halten, verstoßen Temu und Shein gegen Vorgaben zur Produktsicherheit, Arbeitsbedingungen, Nachhaltigkeit, Urheberrecht und Datenschutz – ohne spürbare Konsequenzen.

Doch eigentlich mangelt es nicht an Regeln, sondern an deren konsequenter Durchsetzung. E-Commerce-Plattformen wie Temu oder Shein nutzen geschickt Lücken in der Marktüberwachung und bei der Wareneinfuhr zu ihrem Vorteil. Fehlende innereuropäische Vernetzung beim Datenaustausch, unzureichende Zollkontrollen und die aktuell noch gültigen Zollbestimmungen begünstigen die oftmals ungeprüfte Einfuhr von Waren aus dem Ausland in massenhaften Paketen mit geringem Warenwert.

Ja, es ist wichtig, die Aufhebung der Zollbefreiung von Waren unter 150 Euro im Rahmen der EU-Zollreform anzuregen, und dafür danke ich der Kommission. Wir müssen sehen, dass diese neuen Regeln so schnell wie möglich in Kraft treten und durchgesetzt werden. Es geht nicht darum, Protektionismus zu fördern, vielmehr geht es um fairen Wettbewerb – wenn unsere Innenstädte leer gefegt und unsere europäischen Onlinehändler zerstört sind, ist es zu spät.

Bernd Lange (S&D). – Herr Präsident, Herr Kommissar, liebe Kolleginnen und Kollegen! Die Temu-Schlagzeile „Shoppen wie ein Millionär“ müsste man wahrscheinlich umdichten in „Verkaufen wie ein Milliardär“. Wir haben gehört, vier Milliarden Päckchen kommen dieses Jahr von den Onlineplattformen Temu, Shein und AliExpress, und da frage ich mich schon, Herr Kommissar: Warum haben wir da nicht eine Gleichbehandlung mit Verkäufen innerhalb der Europäischen Union?

Ich möchte ja nicht den Markt zumachen, überhaupt nicht. Aber es kann doch nicht sein, wenn wir innerhalb der Europäischen Union RAPEX haben, andere Möglichkeiten haben und wenn da ein Laden Produkte verkauft, die nicht akzeptabel sind, wird der Laden zugemacht, und hier fragen wir immer nur nach Informationen und machen im Grunde nicht klar, wenn ein Produkt auf der Plattform ist, und das ist mehrmals passiert, dass diese Plattform eben nicht mehr liefern kann.

Oder auch – Sie sagen, die 150 Euro müssen fallen. Fallen die 2028, wie die Kommission vorschlägt, oder eben früher? Und was ist mit dem Rat und der Zollreform? Auch hier passiert zu wenig. Nicht nur klagen, sondern auch handeln für einen fairen Wettbewerb.

Valérie Deloge (PfE). – Monsieur le Président, quand on entend parler de contrefaçons, on ne pense pas tout de suite à la nourriture. Pourtant, rien qu’en 2023, ce sont 1 150 000 produits alimentaires contrefaits qui ont été saisis en France. Yaourts, pâtes, fromages, mais aussi vin, cognac, huîtres et petits pots pour bébé: tout y passe. Ces produits sont faits pour ressembler à s’y méprendre aux originaux, mais ils ne répondent pas à nos normes et peuvent causer des risques pour notre santé. Pis: ces contrefaçons sont souvent 20 % à 70 % moins chères que les originaux. Nombreux sont les consommateurs qui les achètent, pensant profiter d’offres attrayantes sur des lots de déstockage.

Cette situation est aussi dangereuse qu’intolérable. Elle signifie que nos agriculteurs et nos transformateurs ne sont pas seulement en concurrence avec les pays étrangers qui inondent notre marché à cause d’accords de libre-échange irresponsables, ils sont aussi en concurrence avec ces fraudes, qui ternissent l’image des filières et véhiculent une image négative des produits.

Après les manifestations de l’an dernier, vous avez dit entendre la colère du monde agricole. Vous prétendez vouloir rétablir la réputation des agriculteurs et défendre les filières européennes: voici une bonne occasion de le faire. Traquez ces produits, contrôlez l’entrée des marchandises de mauvaise qualité ou qui ne répondent pas à nos normes et rendez au consommateur l’assurance qu’en achetant des produits européens ils achèteront de la qualité. La colère des agriculteurs, elle, est toujours là. À vous maintenant de prouver que vous pouvez vraiment agir.

Nicolas Bay (ECR). – Monsieur le Président, à quoi bon avoir les normes les plus strictes et les plus exigeantes du monde si c’est pour laisser notre marché être inondé par des importations qui ne les respectent pas? À quoi bon étouffer nos producteurs par la paperasse, les taxes, les règles, si c’est pour laisser leurs concurrents tricher?

Face à la concurrence déloyale, l’Union doit autant protéger ses consommateurs que défendre ses entreprises et ses producteurs. La réciprocité et des conditions équitables de concurrence sont nécessaires pour que le commerce soit bénéfique à tous. Il est impératif de multiplier les contrôles sur les importations et il est surtout impératif de ne pas nouer des accords commerciaux déséquilibrés. Le traité avec le Mercosur, en particulier, que la Commission cherche à conclure dans la précipitation, sacrifiera comme toujours nos agriculteurs. C’est une telle certitude, d’ailleurs, qu’un fonds est déjà prévu pour les indemniser.

Nos producteurs sont les plus respectueux à la fois des consommateurs, de leurs animaux et de l’environnement. Leurs produits sont les meilleurs au monde. Ils ne veulent pas vivre de la charité. Ils veulent vivre du plus vieux et du plus noble des métiers: le travail de la terre, le travail de nos pères. Libérons-les et laissons-les se battre à armes égales en cessant d’organiser la concurrence déloyale, qui les condamne à la disparition.

Anna Stürgkh (Renew). – Herr Präsident! Ja, bei fast jeder Diskussion zur EU fällt ein Wort wie das Amen im Gebet: Regulierung. Die EU als Regulierungsweltmeister und die Regulierung als quasi Endgegner der Innovation, ganz nach dem Motto „Du, glückliches Europa, reguliere“. Dabei steckt ja hinter den Regulierungen eigentlich ein wichtiges Ziel: nämlich Menschen und Unternehmen zu schützen und sie zu unterstützen, sicherzugehen, dass sie nicht Produzentinnen und Produzenten ausgeliefert werden, die Gesetze mit Füßen treten und Profit am Ende sogar noch mit dem Leben ihrer Konsumentinnen und Konsumenten machen.

Dafür müssen wir aber die richtige Regulierung machen, und dafür müssen wir uns auch trauen, manchmal hinderliche Regulierungen wegzulassen. Wir müssen Menschen die Sicherheit geben, dass die Produkte, die sie in Europa auch online kaufen, nicht ihre Gesundheit oder ihr Leben gefährden. Wir müssen dafür sorgen, dass die Regeln, die für europäische Produzentinnen und Produzenten gelten, auch für Produkte gelten, die in unserem Land aus Drittstaaten in unsere Haushalte kommen. Wir müssen sichergehen, dass europäische Regeln auch europäisch gelten und nicht 27-mal unterschiedlich ausgelegt werden.

Die Ziele sind richtig, der Weg noch holprig. Aber ja, „Du glückliches Europa – reguliere“.

Δημήτρης Τσιόδρας (PPE). – Κύριε Πρόεδρε, αγαπητοί συνάδελφοι, οι Ευρωπαίοι πολίτες σε πολλές περιπτώσεις νιώθουν απροστάτευτοι από αθέμιτες πρακτικές, αλλά και από τον τρόπο με τον οποίο γίνονται πολλές συναλλαγές, ιδιαίτερα στο νέο ψηφιακό περιβάλλον.

Στο ηλεκτρονικό εμπόριο πολλές φορές οι καταναλωτές δεν αισθάνονται ότι έχουν τον πλήρη έλεγχο των συναλλαγών τους λόγω των πολύπλοκων κανόνων και των ρητρών που περιλαμβάνονται στα περιβόητα ψιλά γράμματα. Σε πολλές περιπτώσεις υπάρχουν συγκαλυμμένες χρεώσεις, ενώ ο σχεδιασμός πολλών ψηφιακών υπηρεσιών δημιουργεί εθισμό στα παιδιά και οδηγεί σε πρόσθετες χρεώσεις μέσω βιντεοπαιχνιδιών. Παράλληλα, κάθε χρόνο, καταναλωτές στην Ευρωπαϊκή Ένωση αγοράζουν, χωρίς να το γνωρίζουν, προϊόντα τα οποία δεν πληρούν τα ευρωπαϊκά πρότυπα ποιότητας και ασφάλειας.

Ένα άλλο σημαντικό θέμα είναι ότι μεγάλες πολυεθνικές εταιρείες εκμεταλλεύονται τη δεσπόζουσα θέση τους στην αγορά για να επιβάλουν γεωγραφικούς εφοδιαστικούς περιορισμούς, επιβάλλοντας αδικαιολόγητα υψηλές τιμές. Ο πρωθυπουργός Κυριάκος Μητσοτάκης έχει στείλει στην Επιτροπή μια σχετική επιστολή και πιστεύω ότι θα πρέπει να επιληφθεί του θέματος. Είναι αναγκαία η αυστηρή τήρηση των κανόνων και, όπου χρειάζεται, περαιτέρω αυστηροποίηση της νομοθεσίας και συνεργασία των αρχών, προκειμένου οι Ευρωπαίοι καταναλωτές να αισθάνονται ότι προστατεύονται.

Biljana Borzan (S&D). – Gospodine predsjedavajući, potrošačke organizacije čak 17 država prijavile se Europskoj komisiji najnoviji kineski div Temu. Propituje se sigurnost proizvoda, štetnost za zdravlje, pa čak i prodajni lanac u smislu prodaje ilegalnih proizvoda. Temu i dalje prodaje, ljudi i dalje kupuju.

Prije nekoliko godina 18 potrošačkih organizacija prijavilo je Tik Tok europskim tijelima radi štetnog utjecaja na maloljetnike, koji čine 30 posto njihovih korisnika. Narušavanje mentalnog zdravlja, izazivanje ovisnosti, poticanje nezdravih navika i ponašanja kod djece gorući su problemi koji traže hitnu reakciju. Unatoč tome, promjene na platformi su minimalne.

Kako prisiliti internetske divove da poštuju europska pravila? Treba dati veće ovlasti Europskoj komisiji u slučaju povrede potrošačkih prava. Pokažimo građanima da nisu sami, da je udar na naše ljude, udar i na naše institucije i da će one brzo i efikasno odgovoriti ondje gdje ih najviše boli. One koji rade greške – udarimo ih po džepu.

Philippe Olivier (PfE). – Monsieur le Président, la question de la sécurité des produits n’est pas toujours affaire de développement juridique ou de normes, mais de contrôles. Elle pose la question des portes d’entrée de l’Europe, et les portes d’entrée de l’Europe, ce sont les ports. Sur Le Havre, sur 6 000 conteneurs, seuls 5 sont contrôlés. D’une manière générale, tous les ports européens tendent à être pris en main par les mafias, soit par la peur et par la menace, soit par la corruption. Personne ne s’en préoccupe.

Comment croire que le libre-échange puisse être vertueux quand même les règles les plus élémentaires de surveillance sont en pratique bafouées aux endroits où les contrôles devraient être implacables? Que dire des matières premières qui sont vendues en Europe par des pays qui ne les possèdent pas, mais qui les volent? La République démocratique du Congo est ainsi pillée par son voisin, le Rwanda, et l’Europe commet des actes de recel en achetant à Kigali de telles matières premières.

Si vous souhaitez ramener un peu d’éthique dans le commerce sans limites et sans règles, rétablissez les contrôles nécessaires.

Henrik Dahl (PPE). – Hr. Formand. Tak for ordet. Kinesiske online platforme som Temu og Sheen presser det europæiske marked med produkter, der for det første er lodret ulovlige og for det andet er farlige. Disse produkter er for det første en risiko for forbrugerne, men de er også en direkte trussel imod det indre marked. Temu undergraver systematisk de regler, vi har bygget op for at beskytte de europæiske borgere. De regler overholder de europæiske virksomheder i modsætning til Temu. Når Temu udnytter huller i lovgivningen, så får de en unfair konkurrencefordel, som de bruger til at udkonkurrere europæiske virksomheder. EU har skabt et robust regelsæt for forbrugersikkerhed, men uden en effektiv håndhævelse er de regler ikke noget værd. Vi skal ikke tolerere, at kinesiske platforme systematisk bryder reglerne og underminerer europæiske virksomheder. Derfor er det på tide at tage kampen op mod de aktører, der misbruger systemet, skader forbrugerne og fører en form for økonomisk krig imod Europa. Europa skal være stærkt, og derfor skal Europa sanktionere de kinesiske virksomheder, som bevidst bryder reglerne.

Pierre Jouvet (S&D). – Monsieur le Président, chers collègues, pour éviter un anniversaire ou un Noël sans cadeaux, des parents achètent à bas prix des jouets sur des sites chinois. Comment leur en vouloir, quand les fins de mois sont devenues si difficiles? C’est pourtant un cadeau empoisonné, parce que ces jouets sont certes peu chers, mais très probablement toxiques. D’après des tests menés en laboratoire, près de 80 % d’entre eux sont dangereux.

En plus de ces jouets toxiques, combien de parfums irritants, de lunettes de soleil inefficaces, de jeans de contrefaçon seront vendus par ces plateformes chinoises qui inondent le marché? Temu, Shein, AliExpress importeront près de 4 milliards d’articles en Europe cette année. Ce chiffre a triplé en trois ans. Ces plateformes profitent du seuil douanier de 150 euros sur les colis internationaux pour échapper à tout contrôle. Ces entreprises violent les droits des consommateurs et nuisent aux fabricants européens, qui, eux, respectent les normes sociales et environnementales.

L’Europe doit se réveiller et faire respecter un principe simple: «Notre marché, nos règles.»

Zala Tomašič (PPE). – Gospod predsednik. V skladu s Temujevo politiko zasebnosti se osebni podatki, kot so ime, priimek, naslov, zgodovina nakupov in lokacija, lahko delijo s tretjimi oglaševalci, ponudniki storitev in poslovnimi partnerji. Temu včasih ponuja storitve, Temu včasih ponuja izdelke celo brezplačno. Ampak potrebno se je zavedati, da nič ni brezplačno.

V zameno platforma pridobiva osebne podatke in spremlja obnašanje potrošnikov na spletu. Obstajajo pa tudi skrbi, da se ti podatki potem prodajajo tudi naprej. Le malokateri potrošnik pa se tega tudi zaveda.

Poleg tega je kvaliteta teh izdelkov vprašljiva. Slišali smo že, kako otroške igrače takoj razpadejo na majhne dele, kako detektorji dima dima ne zaznajo. Ampak problem so tudi kozmetični izdelki, ki lahko pustijo nepopravljive poškodbe sluznice in kože.

Močno podpiram prosti trg in konkurenčnost na trgu, vendar pa moramo zaščititi tako potrošnike pred zlorabo osebnih podatkov in škodljivimi izdelki kot tudi naše podjetnike pred nelojalno konkurenco.

Maria Guzenina (S&D). – Arvoisa puhemies, komission edustajat, EU:n pitäisi olla maailman turvallisin alue ostaa tavaraa. Meillä on tiukat standardit sille, millaisia tuotteita täällä saa myydä, joten miten ihmeessä on mahdollista, että tuoreissa testeissä jopa 80 prosenttia leluista, joita myydään muun muassa kiinalaisissa verkkokaupoissa, eivät täyttäneet lelujen turvallisuusvaatimuksia. Kyse on kuluttajien, erityisesti lasten terveydestä. Kyse on ympäristömme suojelemisesta. Kyse on turvallisuudesta ja kyse on eurooppalaisten yritysten mahdollisuudesta pärjätä.

Kiinalaiset säännöistä piittaamattomat jättimäiset verkkokaupat toimittavat kiihtyvällä vauhdilla tavaroita Eurooppaan. Suomen tullin mukaan kiinalaisten pakettien valtava määrä vaarantaa jo tullinkin toimintakyvyn.

Tuoteturvallisuusdirektiivi, se on hyvä alku, mutta on tärkeää, että me emme lisää vastuullisten eurooppalaisten yritysten sääntelyä, vaan meidän pitää varmistaa, että kiinalaiset kaupat noudattavat eurooppalaisia sääntöjä.

Tämän asian ratkaisemisella on kiire. Komission on tehtävä tässä tehtävänsä. Euroopan on oltava yhtenäinen tässä asiassa. Kyse on eurooppalaisten terveydestä.

Niels Flemming Hansen (PPE). – Mr President, dear Commissioner, honourable colleagues, e-commerce has rapidly expanded, offering consumers access to products from around the globe. A recent study found that 30 out of 38 products from the Temu platform failed to meet European safety standards, posing a serious risk to consumers. Some 30 out of 38, my dear friends: that’s 78 %.

This is not about protectionism. It’s about ensuring fairness and safety. Non-compliance puts the consumers at risk and creates an uneven playing field, especially for European SMEs that follow EU rules. SMEs, which are the backbone of our economy, will suffer the most.

The scale of e-commerce makes it impossible for national customs to manage alone. In Germany, it’s estimated that there are around 400 000 packages a day from China; 78 % of that is 320 000 packages.

Finally, this is a test of the EU’s ability to address the challenges of a globalised marketplace. We must be decisive, not only to protect our consumers, but to prove that Europe can enforce its own rules and uphold fairness in the single market.

Pierfrancesco Maran (S&D). – Signor Presidente, onorevoli colleghi, caro Commissario, come ha ben sottolineato, è necessario sistemare alcuni aspetti del mercato online e questo va fatto rapidamente.

Oggi il 70% dei cittadini europei compra beni e servizi online. Eppure esistono due mercati: uno per chi rispetta le regole e uno per chi non le rispetta e le aggira. In molti abbiamo sottolineato come alcuni soggetti sono certamente protagonisti delle violazioni.

Operatori come Temu, Shein, AliExpress – che insieme contano 300 milioni di utenti in Europa – immettono sul mercato migliaia di prodotti non sicuri a prezzi stracciati. Loro lo sanno bene e sanno che possono farlo, perché non mettiamo ancora in campo azioni strutturali che li rendano corresponsabili.

Questo è il punto di lavoro principale, perché non possiamo pensare di andare ad inseguire ogni consegna alle dogane. È necessario agire alla fonte nei loro confronti, perché si adoperino per una svolta nei loro comportamenti commerciali.

Lo dobbiamo ai cittadini europei, che devono sapere che i prodotti che comprano sono sempre sicuri e non essere tentati dalla convenienza del low cost senza regole. E lo dobbiamo alle aziende che invece rispettano le regole e che meritano di non avere questa concorrenza.

Elisabeth Grossmann (S&D). – Herr Präsident, Herr Kommissar, meine sehr geehrten Damen und Herren! Die Digitalisierung und der wachsende E-Commerce haben unsere Märkte grundlegend verändert, und es ist unerlässlich, dass wir als EU entschlossen handeln, um Sicherheit und Fairness zu gewährleisten. Der europäische Handel gerät durch das Onlineangebot aus dem EU-Ausland zunehmend unter Druck, und große Plattformen, vorwiegend aus China, überschwemmen gerade den europäischen Markt mit Billigangeboten und nutzen die bestehenden Schlupflöcher aus, was den Wettbewerb verzerrt und europäische Unternehmen stark benachteiligt und auch europäische Arbeitsplätze kostet und natürlich auch europäische Wertschöpfung.

Und ich sage Ihnen: Es ist nicht fünf vor zwölf, es ist fünf nach zwölf, weil es hat sich bereits das Kaufverhalten der Menschen erheblich verändert, und es sind bereits zahlreiche Unternehmen im Produktionsbereich und auch im Handelsbereich insolvent. Und hier haben wir in Zukunft mitunter auch ein Problem mit der Versorgungssicherheit.

Deshalb ist dringendes Handeln, rasches Handeln geboten. Es ist mit dem Gesetz über digitale Dienste und dem Gesetz über digitale Märkte einiges gelungen – aber diese Gesetze gehören auch konsequent umgesetzt, und zwar sofort.

IN THE CHAIR: ESTEBAN GONZÁLEZ PONS
Vice-President

Regina Doherty (PPE). – Mr President, Commissioner, EU consumer rights are worth absolutely nothing unless they are effectively enforced. We have made some progress with the General Product Safety Regulation, which is going to come into effect later on this year, and we are working on ambitious reforms, but it’s not just about laws.

The EU’s many market surveillance authorities have to work together in order to take risk-based market surveillance seriously, because when it comes to illegal products coming into EU countries, we should be really, really vigilant. According to the Commission, last year, 2.3 billion items worth less than EUR 150 entered the EU last year. And we’re facing what could only be described as a flood of cheap products. Member State authorities are frequently overwhelmed and sometimes just to verify whether something meets a product safety standard is next to impossible. So we need to support these authorities and make sure that they have the resources they need to do their work online markets such as China’s Temu must meet the standards that we uphold every single European company to in order to have the right to operate in the EU market.

We don’t want protectionism, we don’t want to reduce global trade. We just want to make sure that the level playing field is level and that the people who are consuming the goods are safe from them.

Salvatore De Meo (PPE). – Signor Presidente, onorevoli colleghi, in questi mesi ricorre insistentemente il tema della competitività, soprattutto in quest’Aula. Però leggiamo dalla recente relazione Letta che il 75% dei prodotti pericolosi in circolazione in Europa deriva da Paesi terzi ed è un dato in crescita preoccupante.

Potete ben capire che questo non solo mette a rischio la competitività delle nostre imprese ma anche la salute dei nostri consumatori, ai quali invece dobbiamo garantire prodotti sicuri con controlli rigorosi, in particolare quelli acquistati sull’e-commerce, piattaforme esplose durante il periodo del COVID.

Dobbiamo intervenire con urgenza per contrastare l’eccessiva presenza di prodotti dei Paesi terzi, che attraverso le piattaforme riescono a raggiungere con comodità milioni di utenti in tempi rapidissimi. Questa situazione crea una concorrenza sleale che penalizza le nostre imprese, che invece sono obbligate a rispettare norme sempre più stringenti, mentre molti prodotti sono importati senza i dovuti controlli.

E allora particolare attenzione va rivolta soprattutto ai giocattoli, oppure ai farmaci, perché rivolti ai bambini e alle persone che hanno bisogno di cure. Dobbiamo garantire standard di sicurezza.

In questo contesto, l’unione doganale può fare ovviamente molto di più e auspichiamo che, ovviamente, la riforma che è stata avviata possa essere portata a termine per garantire una vigilanza più stringente sulle importazioni, proteggendo il nostro mercato e soprattutto i nostri cittadini.

Solo così potremo assicurare una concorrenza equa e un futuro di crescita e sicurezza per tutti.

Catch-the-eye procedure

Lukas Sieper (NI). – Herr Präsident, sehr geehrte Menschen Europas, Hohes Haus! Wir haben heute bereits über die Wichtigkeit des europäischen Binnenmarkts gesprochen. Umso glücklicher bin ich über diese Debatte, denn wir müssen unseren Binnenmarkt auch schützen. Wir können es nicht akzeptieren, wenn Produkte den Markt fluten, die unter Missachtung der Menschenrechte, teilweise sogar von uigurischen Zwangsarbeitern in Konzentrationslagern hergestellt werden. Wir können es nicht hinnehmen, wenn Produkte den Markt fluten, die unseren Sicherheitsstandards nicht gerecht werden. Wir können es nicht tatenlos geschehen lassen, wenn diese Produkte von autoritären Staaten gezielt subventioniert werden.

Wir können es uns nicht leisten, wenn diese Produkte von internationalen Großkonzernen unter bewusstem Ausnutzen verschiedener Steuersysteme innerhalb der EU vertrieben werden. Schließlich: Wir können es uns nicht leisten, wenn der Binnenmarkt zerstört wird, indem er von ausländischer Konkurrenz ausgespielt wird.

Die Menschen wollen einen starken Binnenmarkt, nicht einen auf Wish bestellt; und das fängt, wie viele meiner Kollegen zu Recht betont haben, beim Zollsystem an.

(End of catch-the-eye procedure)

Didier Reynders, membre de la Commission. – Monsieur le Président, Mesdames et Messieurs les députés, je voudrais d’abord vous remercier pour ce débat sur le marché intérieur et la manière dont des produits arrivent sur ce marché intérieur. Les plateformes jouent un rôle de plus en plus important en la matière. J’entends bien l’ensemble des remarques sur les règles – qui, pour une grande part, existent, même s’il y a encore du travail à faire – et sur le besoin d’un contrôle renforcé.

Je dirais tout d’abord que nous devons mieux utiliser les outils qui arrivent et qui sont parfois déjà à notre disposition. Je voudrais féliciter les autorités chargées de la protection des consommateurs dans les États membres, que nous avons organisées en réseau. Ce réseau d’acteurs, le réseau CPC, fait déjà aujourd’hui, en relation avec les associations de consommateurs, un travail sur le terrain remarquable pour détecter et retirer des produits régulièrement, non seulement des magasins, mais aussi des plateformes en ligne. Nous avons d’ailleurs développé au sein de la Commission un outil numérique qui permet de vérifier que ces produits ne reviennent pas sur les plateformes.

Je ne dis pas que nous détectons l’ensemble des produits ou que nous retirons l’ensemble des produits dangereux, que ce soit pour la sécurité proprement dite ou pour la santé des consommateurs, mais je voudrais saluer ce travail, sur lequel il faudra d’ailleurs à nouveau se pencher. Beaucoup ont évoqué le rôle particulier des douanes. Je voudrais confirmer que la Commission souhaite avancer en la matière. Le dossier est entre les mains des colégislateurs pour l’instant. Plusieurs ont évoqué la limite des 150 euros: nous souhaitons l’abolir. J’espère que nous pourrons aboutir prochainement à un accord entre les colégislateurs sur ce sujet. Le travail des douanes est un travail important dans le cadre de la protection des consommateurs.

Le règlement sur les services numériques est en vigueur. Des pouvoirs ont été octroyés à la Commission, des pouvoirs que nous avons commencé à utiliser, y compris dans les domaines que vous avez évoqués et en particulier dans le cadre de plateformes qui inondent l’Union européenne de produits à bas prix. Le règlement général sur la sécurité des produits, que j’ai évoqué tout à l’heure, entrera en vigueur le 13 décembre. À travers ce règlement, comme plusieurs d’entre vous l’ont évoqué, la responsabilité personnelle des plateformes pourra être mise en cause, non seulement celle des grandes plateformes, mais aussi celle des plus petites, puisque nous avons prévu qu’une personne responsable devait être désignée dans l’Union européenne lorsque des produits sont effectivement importés sur le marché. Mais, je le répète, ce règlement général, que nous avons souhaité mettre en place pour remplacer une directive, entre en vigueur le 13 décembre prochain. Je vous invite donc à utiliser, pour le moment, les outils à disposition ou dont disposeront bientôt les différents acteurs chargés de la protection des consommateurs.

Pour ce qui est de la poursuite du dialogue avec nos partenaires, j’ai mis en place au cours de la législature écoulée un dialogue avec les autorités américaines, notamment en matière de protection des produits. En ce qui concerne la politique des consommateurs, il y a aux États-Unis trois agences différentes, et la commission américaine chargée de la sécurité des produits est en dialogue constant avec la Commission européenne. Nous développons un dialogue similaire avec le Royaume-Uni, le Canada, le Japon, ou la Corée du Sud.

Pour la première fois, nous avons tenu, à Paris, au sein de l’OCDE, une réunion ministérielle concernant la politique des consommateurs. Et l’OCDE, pour une fois, s’est penchée non plus seulement sur la production, mais aussi sur la consommation, et donc, réellement, sur la sécurité des produits pour les consommateurs. On voit que ce thème progresse. Nous avons d’ailleurs tenu à Bruxelles, très récemment, une semaine consacrée à la sécurité des produits, avec l’ensemble des acteurs internationaux.

Il est vrai que nous devons aussi poursuivre le travail entamé avec la Chine. Nous le faisons par un dialogue direct, nous le faisons aussi, parfois, en collaboration avec des partenaires internationaux – nous avons mené une action trilatérale avec nos collègues américains. Je ne suis pas naïf, mais on doit continuer à tenter de convaincre nos partenaires chinois qu’il s’agit aussi d’un enjeu de réputation pour leurs produits et pour leurs entreprises, et probablement pour un nombre croissant de consommateurs chinois, qui souhaitent eux-mêmes une plus grande sécurité de leurs produits. C’est un travail qui a aussi été entamé au cours de ces dernières années.

Enfin, vous avez évoqué des cas concrets de sécurité des produits sur des plateformes, mais aussi de produits à bas prix – je pense à Temu ou à Shein. Je l’ai dit, des actions sont en cours. Nous avons saisi le réseau des agences chargées de la protection des consommateurs sur ce sujet. Le réseau CPC y travaille. Le règlement sur les services numériques est lui aussi à l’œuvre dans le cadre de procédures visant ces plateformes, lesquelles ne posent pas seulement un problème de sécurité de produits ou de santé des consommateurs, mais aussi, vous l’avez rappelé, de concurrence déloyale, en raison de prix très faibles, de prix particulièrement bas. Elles ne sont pas seulement en concurrence avec la production de nouveaux produits en Europe, elles le sont aussi avec le marché de seconde main.

Nous avons, avec certains d’entre vous, beaucoup travaillé au développement du droit à la réparation, qui concerne chaque consommateur et qui permet par ailleurs de renforcer le marché de seconde main. Il est clair que nous devons la protéger contre l’évolution de la concurrence déloyale, tout en demandant bien entendu au secteur de la seconde main de garantir la sécurité de ses produits au même titre que le respect d’un certain nombre de règles européennes.

Alors, bien entendu, je ne voudrais pas conclure sans évoquer un ou deux aspects, notamment une remarque plus personnelle. La Commission a vu ses compétences directes renforcées: aussi bien celles qu’elle détient, depuis longtemps, dans le domaine de la concurrence que celles acquises plus récemment dans celui des plateformes – à travers le règlement sur les services numériques.

Pour ce qui est des consommateurs, il est peut-être temps aussi de se poser la question, au-delà du réseau des acteurs nationaux, d’une action possible et plus directe de la Commission pour des cas qui le méritent – des cas manifestement transfrontaliers et qui concernent l’ensemble des consommateurs européens. Cela nécessite des moyens, bien entendu. C’est donc un débat qui reviendra, je l’espère, dans les prochaines années: le travail en la matière ne doit plus se limiter aux agences nationales, il doit aussi advenir à l’échelon de la Commission.

Je terminerai en vous disant que plusieurs ont évoqué la nécessité d’agir vite. J’ai notamment entendu des remarques sur la manière dont on produit un certain nombre de biens vendus sur le marché européen, parfois en violation des règles environnementales ou des droits de l’homme. Nous avons mis cinq ans à faire adopter une directive sur le devoir de vigilance. Maintenant, il faut en entamer la mise en œuvre.

J’espère donc que la détermination de l’ensemble des acteurs – des colégislateurs comme des États membres – sera très grande pour agir: pas uniquement quand un produit arrive sur le marché européen, mais aussi sur les chaînes d’approvisionnement, en réfléchissant à la manière de faire respecter les règles environnementales aussi bien que celles en matière de droits de l’homme, tant par les entreprises européennes que par les entreprises de pays tiers qui viennent sur le marché intérieur – y compris à travers des plateformes.

Beaucoup reste à faire, mais je crois que des règles sont en place. Il faut maintenant les rendre effectives et, surtout, renforcer le contrôle, pour une part à l’échelon européen – lorsque c’est nécessaire.

President. – The debate is closed.

16. One-minute speeches on matters of political importance

Φρέντης Μπελέρης (PPE). – Κύριε Πρόεδρε, αγαπητοί συνάδελφοι, θα ήθελα να μοιραστώ μαζί σας μια όμορφη πρωτοβουλία στην Ελλάδα και συγκεκριμένα στη Φουρνά Ευρυτανίας, ένα ελληνικό χωριό όπου Δήμος, Περιφέρεια και Εκκλησία συνεργάζονται αρμονικά, προσφέροντας μια καλύτερη ζωή σε μέλη νέων οικογενειών με στόχο να τους πείσουν να εγκατασταθούν στον τόπο τους. Θέλω να σας πω ότι αυτές ακριβώς τις μικρές νίκες πρέπει να αναζητούμε απέναντι στη δημογραφική κρίση· τις μάχες, δηλαδή, που δίνονται μεμονωμένα, ώστε η ευρωπαϊκή ύπαιθρος να μη «σβήσει».

Ας δούμε όμως και τη μεγάλη εικόνα. Είναι αναγκαία η άμεση επανεκκίνηση της ευρωπαϊκής περιφέρειας. Αυτό θα το πετύχουμε με την αξιοποίηση επιτυχημένων πολιτικών και σωστή αναδιάρθρωση του ευρωπαϊκού προϋπολογισμού. Η Ευρώπη δεν πρέπει να επανέλθει στις διαφορετικές ταχύτητες με τις οποίες εξαπλώνεται το δημογραφικό πρόβλημα στα 27 κράτη μέλη, αλλά να χρηματοδοτήσει δράσεις με την ίδια ένταση και να δώσει ουσιαστικά κίνητρα.

Κλείνοντας, κύριοι συνάδελφοι, οφείλουμε να φροντίσουμε ώστε να μη νιώθουν οι περιφέρειες και τα νησιά μας απομονωμένα. Κάθε κουκκίδα στον ευρωπαϊκό χάρτη που διασυνδέουμε με μια άλλη, είναι αυτομάτως μια μεγάλη κατάκτηση προς τον κοινό μας στόχο: να δώσουμε ξανά πνοή στην ήπειρό μας.

Gabriela Firea (S&D). – Domnule președinte, vinerea trecută, tocmai a trecut, a marcat Ziua Europeană de Luptă împotriva Traficului de Persoane, o zi care ne amintește cât de fragilă este siguranța pentru multe femei și mulți copii din Europa. Din păcate, traficul de persoane, care este strâns legat de violența domestică, continuă să fie o problemă gravă. Observăm la nivelul Uniunii Europene că se fac pași importanți. A fost adoptată o versiune revizuită a directivei antitrafic, cu măsuri mai stricte pentru combaterea noilor forme de exploatare, inclusiv a celor din mediul online. Programe precum Fondul pentru azil, migrație și integrare și Programul „Cetățeni, egalitate, drepturi și valori” sprijină victimele și încearcă să prevină traficul de persoane.

Totuși, nu este suficient și este clar că avem nevoie de o mai bună coordonare între statele membre și de o utilizare mai eficientă a fondurilor, inclusiv prin Mecanismul de redresare și reziliență. Este vital să investim mai mult în educație, în prevenție și mai ales în protecția reală a victimelor, iar cei care comit aceste crime să fie aduși în fața justiției, pentru că asta înseamnă să facem dreptate: să-i protejăm pe cei vulnerabili și să nu lăsăm nicio victimă fără voce.

Julien Sanchez (PfE). – Monsieur le Président, mes chers collègues, le récent rapport de la Cour des comptes européenne sur le fonds fiduciaire d’urgence en faveur de la stabilité et de la lutte contre les causes profondes de la migration irrégulière et du phénomène des personnes déplacées en Afrique, fonds doté rappelons-le de 5 milliards d’euros d’argent public de nos concitoyens, est édifiant et accablant.

Si les besoins sont réels et la situation préoccupante, les exemples de gaspillage sans aucun contrôle sont hélas innombrables et choquants. Oui, la Commission européenne gère notre argent avec amateurisme et légèreté. Ainsi, en Gambie, des bénéficiaires ont reçu deux fois la même aide pour des projets agricoles qui, en plus, sont des projets fictifs. En Afrique subsaharienne, des mixeurs ont été distribués dans des écoles qui n’ont même pas accès à l’électricité. Il y a des dizaines d’exemples dans ce rapport, que j’invite chacun à lire.

J’ai trois questions. Ce programme existe-t-il juste pour se donner bonne conscience? Comment peut-on balancer des milliards et se désintéresser à ce point de l’utilisation réelle et concrète de ces fonds? Enfin: n’avez-vous pas honte de voir l’argent des contribuables ainsi dilapidé? Comment tout cela est-il possible, et pourquoi les gens qui laissent faire cela ne sont-ils pas limogés?

Barry Andrews (Renew). – Mr President, Commissioner and colleagues, we are broadly agreed across this House that nothing we do or say would reward Russia for its aggression and its contempt for human rights. Equally, we are broadly agreed that we would not do or say anything that would reward Iran for its aggression. Yet we are now slowly embarking on a policy to do just that, under the banner of so-called normalisation of relations with Assad’s Syria. This will send a clear message to Russia and Iran.

Having stood by those who sought freedom, having passed countless resolutions condemning Assad’s prisons and gulags and executions, and his use of chemical warfare, and looking for an end to impunity, now we quietly return to restore normal relations at a time that can only send one clear message: the EU will stand by those who seek freedom, but if autocrats have the patience and seek the protection of Iran and Russia, they might just succeed.

Vicent Marzà Ibáñez (Verts/ALE). – Señor presidente, mientras en este Parlamento, hace unos años, y en el Consejo, justo este mes, se ha aprobado una normativa, la nueva Directiva de calidad del aire ambiente, mucho más restrictiva de acuerdo con los criterios científicos, en la ciudad de Elx, en nuestra tercera ciudad valenciana, el Gobierno da rienda suelta a la contaminación y lo que hace es destruir carriles bici, pervertir la zona de bajas emisiones promoviendo el uso del coche y, además, poner en peligro doce millones de euros de fondos europeos que no va a ejecutar con el fin para el que fueron asignados.

Por eso, desde aquí queremos lanzar esta denuncia, en relación con todas las denuncias ciudadanas que están luchando contra esta situación en Elx, en la tercera ciudad valenciana, y pedimos a la Comisión Europea que tome cartas en el asunto. Le queremos preguntar si va a seguir permitiendo que se destinen fondos europeos contra la salud de los ilicitanos y las ilicitanas.

Katarína Roth Neveďalová (NI). – Vážený pán predsedajúci, v týchto dňoch si pripomíname osemdesiate výročie Slovenského národného povstania, ktoré vypuklo 29. augusta 1944, a osemdesiate výročie karpatsko-duklianskej operácie, ktorá bola najväčšou horskou bitkou druhej svetovej vojny a najväčšou bitkou v Československu. Bohužiaľ, dnes nás opustil jeden z posledných žijúcich partizánov na Slovensku, pán Karol Kuna, ktorý sa dožil 96 rokov, a tých pamätníkov Slovenského národného povstania máme stále menej a menej. Rada by som citovala pána Kunu, ktorý povedal: Keby nebolo toľkých, ktorí pretrhli putá zotročenia, dnes by sme nežili v slobodnej krajine. Slovenskí partizáni bojovali za hodnoty odboja proti fašizmu, ako bola sloboda, spravodlivosť a rovnosť, a len vďaka nim bolo nakoniec Československo a Slovenská republika slobodnou krajinou, ktorá stála na strane víťazov. Rada by som dnes vzdala česť týmto ľuďom, ktorí padli za našu slobodu. V Slovenskom národnom povstaní padlo približne desaťtisíc ľudí, ktorí boli nielen vojaci, nielen partizáni, ale takisto civilisti, ktorí pomáhali týmto ľuďom prežiť v horách. A takisto pri duklianskej operácii padlo asi 150 tisíc ľudí. Buď stratili svoj život, svoje zdravie, alebo boli zajatí. Česť ich pamiatke.

Michele Picaro (ECR). – Signor Presidente, onorevoli colleghi, il turismo dentale nei paesi extra-UE è un fenomeno in crescita che solleva importanti preoccupazioni per la salute pubblica.

Negli ultimi anni molti pazienti europei, in particolare italiani, si sono rivolti a destinazioni come Albania e Turchia per trattamenti odontoiatrici a prezzi competitivi. Tuttavia, un’indagine della British Dental Association ha evidenziato che il 70% dei pazienti che hanno cercato cure all’estero ha sperimentato eventi avversi gravi, come infezioni e ascessi o difficoltà masticatoria, condizioni che hanno compromesso non solo la loro salute, ma anche la durata di protesi e impianti, vanificando così il vantaggio economico iniziale.

Le norme sanitarie in questi Paesi spesso mancano di una regolamentazione rigorosa. Per questo è necessario promuovere campagne informative che forniscano ai cittadini dati chiari e affidabili sui rischi e i benefici delle cure odontoiatriche all’estero. Informare i pazienti riguardo alle normative sanitarie dei Paesi di destinazione, alla formazione del personale medico, agli standard di qualità delle strutture è cruciale per consentire scelte consapevoli.

Per tale ragione è imperativo che il Parlamento europeo consideri queste problematiche e promuova iniziative per garantire la sicurezza e la qualità delle cure odontoiatriche. Al contrario, si tratta di garantire ad ogni paziente scelte informate, sicure e supportate da normative adeguate. Solo così potremo garantire e proteggere la salute dei cittadini e mantenere la fiducia nel sistema sanitario.

Ciaran Mullooly (Renew). – Mr President, reports along the corridors of this building say a trade deal with the Mercosur countries has all but been agreed by our Commission, and talk of compensation for Irish farmers and others is widespread. But I come here this evening to give you one message, and a message back to those who send those briefs. No way! No way will we accept this.

A study by the Irish Government Department of Enterprise in 2021 indicated that Ireland’s beef sector would lose between EUR 44 million and EUR 55 million if the EU-Mercosur deal goes ahead.

We are the fifth largest beef exporter in the world and the biggest EU exporter, with more than 90 % traded internationally on an annual basis.

It is not acceptable that Ireland and key other European Member States incur high environmental food-safety traceability charges, while third countries just sail in here and are simply allowed to avoid such costs and undercut our beef in prime EU markets.

This Parliament has and must insist on one rule for everyone equally applied to the Mercosur countries, and until this equality rule applies, Ireland says no deal and no sell-out!

Christophe Clergeau (S&D). – Monsieur le Président, chers collègues, jeudi matin, j’étais dans ma ville de Nantes, aux côtés des salariés de General Electric, qui s’apprête à supprimer près de 400 emplois dans son usine et son centre de recherche-développement consacrés à la production d’éoliennes maritimes.

Il y a plus de dix ans, alors que j’étais vice-président de ma région, j’avais œuvré à la naissance de cette filière et montré aux citoyens que l’écologie pouvait créer des centaines d’emplois: d’ouvriers, de techniciens et d’ingénieurs. Aujourd’hui, je vois ces emplois disparaître parce que l’Europe et la France sont incapables de développer des projets éoliens en mer à un tarif qui permettrait de rémunérer une chaîne de valeur et des emplois européens, incapables d’imposer un contenu européen là où il y a pourtant un soutien public important.

Nos usines risquent de fermer alors que nous en aurons besoin pour équiper les nouveaux parcs éoliens en mer. Pendant ce temps, les Chinois construisent des usines en Écosse et en Italie pour assembler des éoliennes essentiellement fabriquées en Chine. Nous parlons de politique industrielle et de compétitivité, mais, dans la vie réelle, nous laissons s’effondrer les filières des industries vertes et nous sacrifions les emplois.

L’Europe va-t-elle enfin se réveiller, ou va-t-elle s’enferrer dans ce lent suicide collectif? Il est temps de réagir et de lutter.

Mélanie Disdier (PfE). – Monsieur le Président, mes chers collègues, si je m’adresse à vous aujourd’hui, c’est pour vous parler d’une filière en danger: celle du bois.

En 2020, toutes les grandes centrales syndicales et patronales du secteur de l’industrie de transformation du bois ont pris l’initiative d’une déclaration commune pour dire stop à l’exportation massive de grumes en Asie, et particulièrement en Chine. L’exportation du bois non transformé prend des proportions inquiétantes, et pas uniquement pour le chêne – comme c’est le cas dans la forêt de Mormal, qui m’est chère. Toutes les essences sont concernées ou le seront à court terme. Les menuisiers, artisans, constructeurs, fabricants de parquets sont très nombreux à s’alarmer, car ils sont inquiets pour leur avenir. Si les scieries sont privées d’approvisionnement, c’est toute la filière qui va être touchée à court terme.

Dans un contexte de pénurie de matériaux, il est donc suicidaire de laisser perdurer la situation sans réagir. Le bois est devenu une ressource stratégique, qui fait partie intégrante de notre souveraineté, et une clé de la neutralité carbone. Il est grand temps que l’Union européenne s’empare de ce dossier. Des milliers d’emplois sont en jeu en France et en Europe.

Dick Erixon (ECR). – Herr talman! Efter polisrazzior i Öst- och Sydeuropa tidigare i år beslagtogs Rolexklockor, guld, diamanter, smycken, lägenheter, villor, kryptovaluta, Lamborghini, Porsche och en Audi Q8.

Ett enda kriminellt gäng misstänks ha stulit över sex miljarder kronor från coronafonden Next Generation, med hjälp av experter på bidragsansökningar, AI-verktyg och bluffbolag. När socialdemokrater och moderater släppte igenom coronafonden lovades rigorösa kontroller. Så blev det inte. Den överdimensionerade EU-budgeten göder korruption och slöseri, men hjälper även kriminella som hittat en ny kassako att mjölka genom ekobrottslighet.

Bidragen är så stora och mottagarna så många att rigorösa kontroller inte är möjliga. Detta måste få ett slut.

João Oliveira (The Left). – Senhor Presidente, o inquérito pós‑eleitoral feito pelo Parlamento Europeu mostrou que a principal preocupação dos povos é o custo de vida. Este Parlamento deveria estar a discutir as soluções para esse problema, mas nenhum outro grupo político aceitou fazer esse debate. Nenhum outro grupo político quis discutir as opções para combater o aumento do custo de vida, as medidas de controlo e fixação dos preços dos bens essenciais, medidas de combate aos preços especulativos que garantem lucros milionários dos grupos da distribuição da energia e dos combustíveis, das telecomunicações ou da banca.

Deveríamos também estar a discutir as consequências das novas regras da governação económica. Em Portugal, o Governo acabou de apresentar uma proposta de Orçamento do Estado que mostra bem os impactos dessas novas regras, que mostra os condicionamentos e restrições orçamentais, as limitações nos serviços públicos e nas funções sociais do Estado, as restrições ao investimento; tudo isso em contraste com as políticas de privilégio aos grupos económicos e às multinacionais. Também este debate foi travado, porque, para grande parte deste Parlamento, verdadeiramente as condições de vida dos povos pouco interessam.

Juan Fernando López Aguilar (S&D). – Señor presidente, señor comisario, la solidaridad y la cohesión son el modelo social europeo y si hay una amenaza que pende sobre ese modelo es la dificultad de acceso a la vivienda que recorre toda Europa.

Este último fin de semana en Canarias, de nuevo, miles de personas han vuelto a salir a la calle para protestar contra lo que consideran que es un exceso de presión turística, porque en Canarias se ha producido un incremento de población de un 30 % en los últimos veinte años y porque, además, se han declarado en los últimos años 60 000 ofertas alojativas extrahoteleras, lo que equivale a doce hoteles con 250 camas cada uno. Pero no se han realizado las inversiones correspondientes ni en hospitales, ni en residencias, ni en redes eléctricas, ni en aeropuertos, ni en conexiones marítimas, ni tampoco en el ciclo del agua y en relación con los vertidos al mar.

Y tenemos puestas nuestras esperanzas en la próxima Comisión Von der Leyen, en la que va a haber por fin un comisario encargado de vivienda, el danés Dan Jørgensen, que podrá movilizar fondos europeos contra los fondos de inversión, contra los fondos buitre, para generar, por fin, oferta de vivienda en alquiler o en venta que permita la emancipación de la gente joven y el acceso a la vivienda de la clase trabajadora. Eso significará una oportunidad de restaurar el modelo social europeo con una política de vivienda europea.

Csaba Dömötör (PfE). – Tisztelt Elnök Úr! A legutóbbi uniós csúcson a felek arra jutottak, hogy fokozni kell az erőfeszítéseket az uniós versenyképesség növelésére. Ezzel egyet is értünk, de azt is szomorúan állapíthatjuk meg, hogy hiányzik a szókimondó párbeszéd arról, hogy mi is okozza Európa egyre nagyobb leszakadását a versenyképességi versenyben. Sok okot azonosíthatunk, de a legfontosabb mégiscsak az, hogy elszálltak az energiaárak.

Azért szálltak el, mert Európa a brüsszeli intézmények nyomására ideológiai okokból hátat fordított a vezetékes gáznak. A helyette beszerzett cseppfolyós gáz jóval drágább. A zöld energia a legtöbb esetben sajnos szintén drágább, és ez drasztikus terhet ró az európai vállalatokra, kicsikre és nagyokra is. Nem véletlen, hogy egyre több vállalat helyezi át a termelését máshová. A Draghi-jelentés szerint Európában ma kétszer-háromszor magasabbak az áramárak az Egyesült Államokhoz képest, a gázárak pedig négyszer-ötször. Ha ez tartósan így marad, akkor Európa maradék versenyképessége is megy a levesbe. Nem kell beletörődnünk, hogy ez így legyen, újratervezésre van szükség.

Thierry Mariani (PfE). – Monsieur le Président, le Liban est en danger de mort. Ni l’Union européenne ni la France ne sont à la hauteur du drame humain qui s’y joue. Face à cette guerre impitoyable, l’Union européenne s’entête dans ses certitudes et refuse de venir en aide à Damas, qui est pourtant en première ligne pour gérer l’accueil des réfugiés dans cette crise.

Chaque jour, des milliers de personnes traversent la frontière pour chercher refuge et protection en Syrie. Aujourd’hui, ce sont déjà près de 240 000 personnes qui ont fait le choix de passer en Syrie, considérant que ce pays est un territoire sûr. Mais l’Europe et la France restent immobiles, tandis que l’Italie, elle, plaide pour renouer le dialogue avec la République arabe syrienne. La situation au Liban ne fait qu’empirer, et avec elle, si rien n’est fait, plane la menace d’une nouvelle vague migratoire de réfugiés vers l’Europe.

Les Syriens, derrière Bachar el-Assad, ont résisté vaillamment aux islamistes qu’une partie d’entre vous, dans cet hémicycle, avait soutenus. Il est urgent de renouer les liens avec la Syrie. C’est l’intérêt des réfugiés qu’elle accueille, mais également des pays de la région, et c’est aussi l’intérêt de l’Europe.

Marko Vešligaj (S&D). – Poštovani predsjedavajući, uvažene kolege, ruralna područja čine 83 posto teritorija Europske unije, a u njima živi 137 milijuna ljudi.

Ova područja su ključna za proizvodnju temeljnih resursa poput hrane i energije. Ipak, unatoč njihovoj važnosti, ruralne zajednice sustavno se marginaliziraju konkretnim politikama i programima financiranja. Da, postoje dokumenti poput Ruralnog pakta i dugoročne vizije za ruralna područja, koje su dobre smjernice, ali njihova implementacija je spora, a problemi se gomilaju.

Iseljavanje, manjak javnih usluga, neadekvatna infrastruktura svakodnevica su lokalnih zajednica u ruralnim prostorima, a nedostatak podrške viših razina vlasti stvara neodrživu situaciju. Danas je dodatno ruralna Europa uslijed klimatskih promjena suočena i s prirodnim katastrofama, od klizanja tla, suša, poplava do potresa i požara.

I za takve situacije trebamo brže i jednostavnije financijske mehanizme. Zato je nužno osigurati izravna i lako dostupna europska sredstva kao garanciju razvoja i održivosti ruralnih područja i ostanka ljudi u njima.

Angéline Furet (PfE). – Monsieur le Président, sous couvert d’un humanisme totalement dévoyé et de faux bons sentiments, des politiciens traîtres aux peuples européens promeuvent une idéologie fanatique qu’ils ont érigée en dogme: l’immigrationnisme.

Malheureusement, cette volonté de suicide altruiste imposée aux Européens a des conséquences concrètes au quotidien. La ville du Mans, en France, en est un triste exemple. L’immigration y a plus que doublé en quinze ans et, avec elle, les délits et les crimes. Augmentation des vols de plus de 300 %, augmentation des viols de plus de 500 % et augmentation des attaques au couteau, elle, de 1 000 %, carrément. Oui, dix fois plus qu’avant l’arrivée sur notre sol de ces étrangers délinquants, de ces criminels importés aux frais des Européens que vous appelez les «migrants».

Le sang des victimes de cette abomination est sur les mains des membres de la Commission européenne qui ont ordonné cette submersion et sur les mains des députés qui l’ont votée.

President. – That concludes this item.

17. Agenda of the next sitting

President. – The next sitting is tomorrow, Tuesday, 22 October 2024 at 09:00. The agenda has been published and is available on the European Parliament website.

18. Approval of the minutes of the sitting

President. – The minutes of the sitting will be submitted to Parliament for its approval tomorrow, at the beginning of the afternoon.

19. Closure of the sitting

(The sitting closed at 22:02)

MIL OSI Europe News –

January 24, 2025

MIL-OSI: Enphase Energy Reports Financial Results for the Third Quarter of 2024

Source: GlobeNewswire (MIL-OSI)

FREMONT, Calif., Oct. 22, 2024 (GLOBE NEWSWIRE) — Enphase Energy, Inc. (NASDAQ: ENPH), a global energy technology company and the world’s leading supplier of microinverter-based solar and battery systems, announced today financial results for the third quarter of 2024, which included the summary below from its President and CEO, Badri Kothandaraman.

We reported quarterly revenue of $380.9 million in the third quarter of 2024, along with 48.1% for non-GAAP gross margin. We shipped 1,731,768 microinverters, or approximately 730.0 megawatts DC, and 172.9 megawatt hours of IQ^® Batteries.

Financial highlights for the third quarter of 2024 are listed below:

Quarterly revenue of $380.9 million
GAAP gross margin of 46.8%; non-GAAP gross margin of 48.1% with net IRA benefit
Non-GAAP gross margin of 38.9%, excluding net IRA benefit of 9.2%
GAAP operating income of $49.8 million; non-GAAP operating income of $101.4 million
GAAP net income of $45.8 million; non-GAAP net income of $88.4 million
GAAP diluted earnings per share of $0.33, non-GAAP diluted earnings per share of $0.65
Free cash flow of $161.6 million; ending cash, cash equivalents, and marketable securities of $1.77 billion

Our revenue and earnings for the third quarter of 2024 are provided below, compared with the prior quarter:

(In thousands, except per share and percentage data)

	GAAP									Non-GAAP
	Q3 2024			Q2 2024			Q3 2023			Q3 2024			Q2 2024			Q3 2023
Revenue	$	380,873		$	303,458		$	551,082		$	380,873		$	303,458		$	551,082
Gross margin		46.8	%		45.2	%		47.5	%		48.1	%		47.1	%		48.4	%
Operating expenses	$	128,383		$	135,367		$	144,024		$	81,612		$	81,706		$	99,027
Operating income	$	49,788		$	1,799		$	117,989		$	101,411		$	61,080		$	167,593
Net income	$	45,762		$	10,833		$	113,953		$	88,402		$	58,824		$	141,849
Basic EPS	$	0.34		$	0.08		$	0.84		$	0.65		$	0.43		$	1.04
Diluted EPS	$	0.33		$	0.08		$	0.80		$	0.65		$	0.43		$	1.02

Total revenue for the third quarter of 2024 was $380.9 million, compared to $303.5 million in the second quarter of 2024. Our revenue in the United States for the third quarter of 2024 increased approximately 43%, compared to the second quarter of 2024. The increase was due to higher shipments to distributors as inventory returned to normal levels. Our revenue in Europe decreased approximately 15% for the third quarter of 2024, compared to the second quarter of 2024. The decline in revenue was the result of a further softening in European demand.

Our non-GAAP gross margin was 48.1% in the third quarter of 2024, compared to 47.1% in the second quarter of 2024. Our non-GAAP gross margin, excluding net IRA benefit, was 38.9% in the third quarter of 2024, compared to 41.0% in the second quarter of 2024.

Our non-GAAP operating expenses were $81.6 million in the third quarter of 2024, compared to $81.7 million in the second quarter of 2024. Our non-GAAP operating income was $101.4 million in the third quarter of 2024, compared to $61.1 million in the second quarter of 2024.

We exited the third quarter of 2024 with $1.77 billion in cash, cash equivalents, and marketable securities and generated $170.1 million in cash flow from operations in the third quarter of 2024. Our capital expenditures were $8.5 million in the third quarter of 2024, compared to $9.6 million in the second quarter of 2024.

In the third quarter of 2024, we repurchased 434,947 shares of our common stock at an average price of $114.48 per share for a total of approximately $49.8 million. We also spent approximately $6.3 million dollars by withholding shares to cover taxes for employee stock vesting that reduced the diluted shares by 59,607 shares.

We shipped 172.9 megawatt hours of IQ Batteries in the third quarter of 2024, compared to 120.2 megawatt hours in the second quarter of 2024. We are now shipping our third generation of IQ Batteries, the IQ^® Battery 5P™, to the United States, Puerto Rico, Mexico, Canada, Australia, the United Kingdom, Italy, France, the Netherlands, Luxembourg, and Belgium. More than 9,000 installers worldwide are certified to install our IQ Batteries, compared to more than 7,400 installers worldwide in the second quarter of 2024.

During the third quarter of 2024, we shipped approximately 1,176,000 microinverters from our contract manufacturing facilities in the United States that we booked for 45X production tax credits. We began shipping IQ8HC™ Microinverters with higher domestic content, produced at our contract manufacturing facilities in the United States. We expect to begin shipping our commercial microinverters, and batteries with higher domestic content, produced at our United States contract manufacturing facilities in the fourth quarter of 2024.

During the third quarter of 2024, we launched AI-based software that is designed to optimize energy use by integrating solar and consumption forecasting with electricity tariff. This is intended to help consumers maximize savings as energy markets become increasingly complex, such as with dynamic electricity rates in parts of Europe and NEM 3.0 in California. We are gearing up to launch our second-generation IQ^® EV charger, the 3-Phase IQ Battery with backup, and the IQ^® Balcony Solar Kit all for the European market – pushing the boundaries of innovation. Finally, our fourth-generation energy system, featuring the IQ^® Meter Collar, 10 kWh IQ Battery, and enhanced IQ^® Combiner, is expected to debut in the United States in early 2025, targeting a substantial reduction in installation costs.

BUSINESS HIGHLIGHTS

On Oct. 16, 2024, Enphase Energy announced that it started shipping IQ8™ Microinverters to support newer, high-powered solar panels in select countries and territories, including the Netherlands, Austria, New Caledonia, and Malta.

On Oct. 9, 2024, Enphase Energy announced that it is expanding its support for grid services programs – or virtual power plants (VPPs) – in New Hampshire, North Carolina, and California, powered by the new IQ Battery 5P.

On Oct. 3, 2024, Enphase Energy announced the launch of its IQ8X™ Microinverters in Australia, and that all IQ8 Microinverters activated starting Oct. 1, 2024 in Australia come with an industry-leading 25-year limited warranty, currently the longest standard residential warranty in the Australian market.

On Sept. 24, 2024, Enphase Energy announced the launch of its most powerful Enphase^® Energy System™ to-date, featuring the new IQ Battery 5P and IQ8 Microinverters, for customers in India.

On Sept. 16, 2024, Enphase Energy announced that it started shipping the IQ Battery 5P in Belgium. Enphase also introduced IQ^® Energy Management, its new AI-based energy management software to enable support for dynamic electricity rates and the integration of third-party EV chargers and heat pumps in Belgium.

On Sept. 10, 2024, Enphase Energy announced initial shipments of IQ8HC Microinverters supplied from contract manufacturing facilities in the United States with higher domestic content than previous models. The microinverters have SKUs with a “DOM” suffix, indicating the increased amount of domestic content.

On Sept. 4, 2024, Enphase Energy announced a solution for expanding legacy net energy metering (NEM) solar energy systems in California without penalty using new Enphase Energy Systems configurations with IQ^® Microinverters, IQ Batteries, and Enphase Power Control.

On Aug. 27, 2024, Enphase Energy announced the availability of pre-orders for IQ Battery 5Ps produced in the United States. Pre-orders are also available for IQ8HC Microinverters, IQ8P-3P™ Microinverters, and IQ8X Microinverters produced in the United States with higher domestic content.

On Aug. 19, 2024, Enphase Energy announced that it started shipping the IQ Battery 5P in the Netherlands. Enphase also introduced IQ Energy Management, its new energy management software to enable support for dynamic electricity rates and the integration of third-party EV chargers and heat pumps in the Netherlands.

On Aug. 8, 2024, Enphase Energy announced the launch of its new North American Charging Standard (NACS) connectors for its entire line of IQ EV Chargers. NACS connectors and charger ports have recently become the industry standard embraced by several major automakers for electric vehicles (EVs).

On Aug. 5, 2024, Enphase Energy announced that it started shipping IQ8P™ and IQ8HC Microinverters to support newer, high-powered solar panels in select countries throughout the Caribbean.

On Aug. 1, 2024, Enphase Energy announced that it started shipping IQ8 Microinverters to support newer, high-powered solar modules in select countries throughout Europe, including France, Germany, Spain, Bulgaria, Estonia, Slovakia, and Croatia.

FOURTH QUARTER 2024 FINANCIAL OUTLOOK

For the fourth quarter of 2024, Enphase Energy estimates both GAAP and non-GAAP financial results as follows:

Revenue to be within a range of $360.0 million to $400.0 million, which includes shipments of 140 to 160 megawatt hours of IQ Batteries
GAAP gross margin to be within a range of 47.0% to 50.0% with net IRA benefit
Non-GAAP gross margin to be within a range of 49.0% to 52.0% with net IRA benefit and 39.0% to 42.0% excluding net IRA benefit. Non-GAAP gross margin excludes stock-based compensation expense and acquisition related amortization
Net IRA benefit to be within a range of $38.0 million to $41.0 million based on estimated shipments of 1,300,000 units of U.S. manufactured microinverters
GAAP operating expenses to be within a range of $135.0 million to $139.0 million
Non-GAAP operating expenses to be within a range of $81.0 million to $85.0 million, excluding $54.0 million estimated for stock-based compensation expense, acquisition related expenses and amortization

For 2024, GAAP and non-GAAP annualized effective tax rate with IRA benefit, excluding discrete items, is expected to be within a range of 17.0% to 19.0%.

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Use of non-GAAP Financial Measures

Enphase Energy has presented certain non-GAAP financial measures in this press release. Generally, a non-GAAP financial measure is a numerical measure of a company’s performance, financial position, or cash flows that either exclude or include amounts that are not normally excluded or included in the most directly comparable measure calculated and presented in accordance with generally accepted accounting principles in the United States (GAAP). Reconciliation of each non-GAAP financial measure to the most directly comparable GAAP financial measure can be found in the accompanying tables to this press release. Non-GAAP financial measures presented by Enphase Energy include non-GAAP gross profit, gross margin, operating expenses, income from operations, net income, net income per share (basic and diluted), net IRA benefit, and free cash flow.

These non-GAAP financial measures do not reflect a comprehensive system of accounting, differ from GAAP measures with the same captions and may differ from non-GAAP financial measures with the same or similar captions that are used by other companies. In addition, these non-GAAP measures have limitations in that they do not reflect all of the amounts associated with Enphase Energy’s results of operations as determined in accordance with GAAP. As such, these non-GAAP measures should be considered as a supplement to, and not as a substitute for, or superior to, financial measures calculated in accordance with GAAP. Enphase Energy uses these non-GAAP financial measures to analyze its operating performance and future prospects, develop internal budgets and financial goals, and to facilitate period-to-period comparisons. Enphase Energy believes that these non-GAAP financial measures reflect an additional way of viewing aspects of its operations that, when viewed with its GAAP results, provide a more complete understanding of factors and trends affecting its business.

As presented in the “Reconciliation of Non-GAAP Financial Measures” tables below, each of the non-GAAP financial measures excludes one or more of the following items for purposes of calculating non-GAAP financial measures to facilitate an evaluation of Enphase Energy’s current operating performance and a comparison to its past operating performance:

Stock-based compensation expense. Enphase Energy excludes stock-based compensation expense from its non-GAAP measures primarily because they are non-cash in nature. Moreover, the impact of this expense is significantly affected by Enphase Energy’s stock price at the time of an award over which management has limited to no control.

Acquisition related expenses and amortization. This item represents expenses incurred related to Enphase Energy’s business acquisitions, which are non-recurring in nature, and amortization of acquired intangible assets, which is a non-cash expense. Acquisition related expenses and amortization of acquired intangible assets are not reflective of Enphase Energy’s ongoing financial performance.

Restructuring and asset impairment charges. Enphase Energy excludes restructuring and asset impairment charges due to the nature of the expenses being unusual and arising outside the ordinary course of continuing operations. These costs primarily consist of fees paid for cash-based severance costs and asset write-downs of property and equipment and acquired intangible assets, and other contract termination costs resulting from restructuring initiatives.

Non-cash interest expense. This item consists primarily of amortization of debt issuance costs and accretion of debt discount because these expenses do not represent a cash outflow for Enphase Energy except in the period the financing was secured and such amortization expense is not reflective of Enphase Energy’s ongoing financial performance.

Non-GAAP income tax adjustment. This item represents the amount adjusted to Enphase Energy’s GAAP tax provision or benefit to exclude the income tax effects of GAAP adjustments such as stock-based compensation, amortization of purchased intangibles, and other non-recurring items that are not reflective of Enphase Energy ongoing financial performance.

Non-GAAP net income per share, diluted. Enphase Energy excludes the dilutive effect of in-the-money portion of convertible senior notes as they are covered by convertible note hedge transactions that reduce potential dilution to our common stock upon conversion of the Notes due 2025, Notes due 2026, and Notes due 2028, and includes the dilutive effect of employee’s stock-based awards and the dilutive effect of warrants. Enphase Energy believes these adjustments provide useful supplemental information to the ongoing financial performance.

Net IRA benefit. This item represents the advanced manufacturing production tax credit (AMPTC) from the IRA for manufacturing microinverters in the United States, partially offset by the incremental manufacturing cost incurred in the United States relative to manufacturing in Mexico, India, and China. The AMPTC is accounted for by Enphase Energy as an income-based government grants that reduces cost of revenues in the condensed consolidated statements of operations.

Free cash flow. This item represents net cash flows from operating activities less purchases of property and equipment.

Conference Call Information

Enphase Energy will host a conference call for analysts and investors to discuss its third quarter 2024 results and fourth quarter 2024 business outlook today at 4:30 p.m. Eastern Time (1:30 p.m. Pacific Time). The call is open to the public by dialing (833) 634-5018. A live webcast of the conference call will also be accessible from the “Investor Relations” section of Enphase Energy’s website at https://investor.enphase.com. Following the webcast, an archived version will be available on the website for approximately one year. In addition, an audio replay of the conference call will be available by calling (877) 344-7529; replay access code 2677879, beginning approximately one hour after the call.

Forward-Looking Statements

This press release contains forward-looking statements, including statements related to Enphase Energy’s expectations as to its fourth quarter of 2024 financial outlook, including revenue, shipments of IQ Batteries by megawatt hours, gross margin with net IRA benefit and excluding net IRA benefit, estimated shipments of U.S. manufactured microinverters, operating expenses, and annualized effective tax rate with IRA benefit; its expectations regarding the expected net IRA benefit; its expectations on the timing and introduction of new products and updates to existing products; its expectations for global capacity of microinverters; its ability to support grid services in new locations; the ability of its AI-based software to help consumers maximize savings as energy markets become increasingly complex; and the capabilities, advantages, features, and performance of its technology and products. These forward-looking statements are based on Enphase Energy’s current expectations and inherently involve significant risks and uncertainties. Enphase Energy’s actual results and the timing of events could differ materially from those anticipated in such forward-looking statements as a result of certain risks and uncertainties including those risks described in more detail in its most recently filed Annual Report on Form 10-K, Quarterly Report on Form 10-Q, and other documents on file with the SEC from time to time and available on the SEC’s website at http://www.sec.gov. Enphase Energy undertakes no duty or obligation to update any forward-looking statements contained in this release as a result of new information, future events or changes in its expectations, except as required by law.

A copy of this press release can be found on the investor relations page of Enphase Energy’s website at https://investor.enphase.com.

About Enphase Energy, Inc.

Enphase Energy, a global energy technology company based in Fremont, CA, is the world’s leading supplier of microinverter-based solar and battery systems that enable people to harness the sun to make, use, save, and sell their own power—and control it all with a smart mobile app. The company revolutionized the solar industry with its microinverter-based technology and builds all-in-one solar, battery, and software solutions. Enphase has shipped approximately 78.0 million microinverters, and over 4.5 million Enphase-based systems have been deployed in more than 160 countries. For more information, visit https://enphase.com/.

© 2024 Enphase Energy, Inc. All rights reserved. Enphase Energy, Enphase, the “e” logo, IQ, IQ8, and certain other marks listed at https://enphase.com/trademark-usage-guidelines are trademarks or service marks of Enphase Energy, Inc. Other names are for informational purposes and may be trademarks of their respective owners.

Contact:

Zach Freedman
Enphase Energy, Inc.
Investor Relations
ir@enphaseenergy.com

ENPHASE ENERGY, INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands, except per share data)
(Unaudited)

	Three Months Ended									Nine Months Ended
	September 30, 2024			June 30, 2024			September 30, 2023			September 30, 2024			September 30, 2023
Net revenues	$	380,873		$	303,458		$	551,082		$	947,670		$	1,988,216
Cost of revenues		202,702			166,292			289,069			516,825			1,076,490
Gross profit		178,171			137,166			262,013			430,845			911,726
Operating expenses:
Research and development		47,843			48,871			54,873			150,925			172,045
Sales and marketing		49,671			51,775			55,357			154,753			178,383
General and administrative		30,192			33,550			33,794			98,924			104,456
Restructuring and asset impairment charges		677			1,171			—			3,755			870
Total operating expenses		128,383			135,367			144,024			408,357			455,754
Income from operations		49,788			1,799			117,989			22,488			455,972
Other income, net
Interest income		19,977			19,203			19,669			58,889			49,235
Interest expense		(2,237	)		(2,220	)		(2,196	)		(6,653	)		(6,571	)
Other income (expense), net		(16,785	)		(7,566	)		1,883			(24,264	)		2,276
Total other income, net		955			9,417			19,356			27,972			44,940
Income before income taxes		50,743			11,216			137,345			50,460			500,912
Income tax provision		(4,981	)		(383	)		(23,392	)		(9,962	)		(82,895	)
Net income	$	45,762		$	10,833		$	113,953		$	40,498		$	418,017
Net income per share:
Basic	$	0.34		$	0.08		$	0.84		$	0.30		$	3.06
Diluted	$	0.33		$	0.08		$	0.80		$	0.30		$	2.92
Shares used in per share calculation:
Basic		135,329			135,646			136,165			135,621			136,491
Diluted		139,914			136,123			143,863			136,236			145,081

ENPHASE ENERGY, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(In thousands)
(Unaudited)

	September 30, 2024		December 31, 2023
ASSETS
Current assets:
Cash and cash equivalents	$	256,325	$	288,748
Marketable securities		1,510,299		1,406,286
Accounts receivable, net		232,225		445,959
Inventory		158,837		213,595
Prepaid expenses and other assets		203,195		88,930
Total current assets		2,360,881		2,443,518
Property and equipment, net		148,444		168,244
Operating lease, right of use asset, net		28,120		19,887
Intangible assets, net		51,152		68,536
Goodwill		214,292		214,562
Other assets		185,448		215,895
Deferred tax assets, net		275,854		252,370
Total assets	$	3,264,191	$	3,383,012
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities:
Accounts payable	$	112,417	$	116,164
Accrued liabilities		189,819		261,919
Deferred revenues, current		129,556		118,300
Warranty obligations, current		35,755		36,066
Debt, current		99,931		—
Total current liabilities		567,478		532,449
Long-term liabilities:
Deferred revenues, non-current		354,210		369,172
Warranty obligations, non-current		148,477		153,021
Other liabilities		62,392		51,008
Debt, non-current		1,200,261		1,293,738
Total liabilities		2,332,818		2,399,388
Total stockholders’ equity		931,373		983,624
Total liabilities and stockholders’ equity	$	3,264,191	$	3,383,012

ENPHASE ENERGY, INC.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(In thousands)
(Unaudited)

	Three Months Ended									Nine Months Ended
	September 30, 2024			June 30, 2024			September 30, 2023			September 30, 2024			September 30, 2023
Cash flows from operating activities:
Net income	$	45,762		$	10,833		$	113,953		$	40,498		$	418,017
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization		20,103			20,484			19,448			60,724			53,867
Net amortization (accretion) of premium (discount) on marketable securities		(2,904	)		(1,030	)		5,094			(1,109	)		(12,611	)
Provision for doubtful accounts		2,704			1,897			653			4,471			1,282
Asset impairment		17,568			6,241			903			24,141			903
Non-cash interest expense		2,173			2,157			2,114			6,462			6,254
Net loss (gain) from change in fair value of debt securities		741			1,931			(1,910	)		1,730			(5,408	)
Stock-based compensation		45,940			52,757			43,814			159,530			157,635
Deferred income taxes		(5,276	)		(14,076	)		(11,499	)		(27,644	)		(38,295	)
Changes in operating assets and liabilities:
Accounts receivable		49,414			82,183			(34,752	)		208,956			(118,249	)
Inventory		17,231			31,825			(8,003	)		54,758			(24,406	)
Prepaid expenses and other assets		(64,149	)		(42,810	)		(15,383	)		(117,856	)		(57,376	)
Accounts payable, accrued and other liabilities		32,088			(23,944	)		9,903			(58,140	)		117,128
Warranty obligations		7,053			15			8,151			(4,855	)		57,420
Deferred revenues		1,690			(1,401	)		13,369			(5,265	)		105,169
Net cash provided by operating activities		170,138			127,062			145,855			346,401			661,330
Cash flows from investing activities:
Purchases of property and equipment		(8,533	)		(9,636	)		(23,848	)		(25,540	)		(90,326	)
Purchases of marketable securities		(319,190	)		(300,053	)		(470,766	)		(1,091,511	)		(1,743,674	)
Maturities and sale of marketable securities		215,241			282,063			494,804			994,677			1,406,608
Investments in private companies		—			—			(15,000	)		—			(15,000	)
Net cash used in investing activities		(112,482	)		(27,626	)		(14,810	)		(122,374	)		(442,392	)
Cash flows from financing activities:
Partial settlement of convertible notes		(5	)		—			—			(7	)		—
Repurchase of common stock		(49,794	)		(99,908	)		(110,000	)		(191,698	)		(310,000	)
Proceeds from issuance of common stock under employee equity plans		14			6,769			719			7,969			1,315
Payment of withholding taxes related to net share settlement of equity awards		(6,286	)		(7,473	)		(8,465	)		(73,801	)		(93,100	)
Net cash used in financing activities		(56,071	)		(100,612	)		(117,746	)		(257,537	)		(401,785	)
Effect of exchange rate changes on cash and cash equivalents		2,638			(374	)		(1,900	)		1,087			(322	)
Net increase (decrease) in cash and cash equivalents		4,223			(1,550	)		11,399			(32,423	)		(183,169	)
Cash and cash equivalents—Beginning of period		252,102			253,652			278,676			288,748			473,244
Cash and cash equivalents —End of period	$	256,325		$	252,102		$	290,075		$	256,325		$	290,075

ENPHASE ENERGY, INC.
RECONCILIATION OF NON-GAAP FINANCIAL MEASURES
(In thousands, except per share data and percentages)
(Unaudited)

	Three Months Ended									Nine Months Ended
	September 30, 2024			June 30, 2024			September 30, 2023			September 30, 2024			September 30, 2023
Gross profit (GAAP)	$	178,171		$	137,166		$	262,013		$	430,845		$	911,726
Stock-based compensation		2,948			3,730			2,708			10,860			9,775
Acquisition related amortization		1,904			1,890			1,899			5,685			5,686
Gross profit (Non-GAAP)	$	183,023		$	142,786		$	266,620		$	447,390		$	927,187

Gross margin (GAAP)		46.8	%		45.2	%		47.5	%		45.5	%		45.9	%
Stock-based compensation		0.8			1.3			0.6			1.1			0.5
Acquisition related amortization		0.5			0.6			0.3			0.6			0.2
Gross margin (Non-GAAP)		48.1	%		47.1	%		48.4	%		47.2	%		46.6	%

Operating expenses (GAAP)	$	128,383		$	135,367		$	144,024		$	408,357		$	455,754
Stock-based compensation⁽¹⁾		(42,992	)		(49,027	)		(41,106	)		(148,670	)		(147,860	)
Acquisition related expenses and amortization		(3,102	)		(3,463	)		(3,891	)		(10,027	)		(11,429	)
Restructuring and asset impairment charges		(677	)		(1,171	)		—			(3,755	)		(901	)
Operating expenses (Non-GAAP)	$	81,612		$	81,706		$	99,027		$	245,905		$	295,564

⁽¹⁾Includes stock-based compensation as follows:
Research and development	$	19,790		$	20,210		$	19,285		$	64,550		$	64,528
Sales and marketing		14,237			16,784			13,297			49,199			49,231
General and administrative		8,965			12,033			8,524			34,921			34,101
Total	$	42,992		$	49,027		$	41,106		$	148,670		$	147,860

Income from operations (GAAP)	$	49,788		$	1,799		$	117,989		$	22,488		$	455,972
Stock-based compensation		45,940			52,757			43,814			159,530			157,635
Acquisition related expenses and amortization		5,006			5,353			5,790			15,712			17,115
Restructuring and asset impairment charges		677			1,171			—			3,755			901
Income from operations (Non-GAAP)	$	101,411		$	61,080		$	167,593		$	201,485		$	631,623

Net income (GAAP)	$	45,762		$	10,833		$	113,953		$	40,498		$	418,017
Stock-based compensation		45,940			52,757			43,814			159,530			157,635
Acquisition related expenses and amortization		5,006			5,353			5,790			15,712			17,115
Restructuring and asset impairment charges		677			1,171			—			3,755			901
Non-cash interest expense		2,173			2,157			2,114			6,462			6,254
Non-GAAP income tax adjustment		(11,156	)		(13,447	)		(23,822	)		(30,775	)		(61,413	)
Net income (Non-GAAP)	$	88,402		$	58,824		$	141,849		$	195,182		$	538,509

Net income per share, basic (GAAP)	$	0.34		$	0.08		$	0.84		$	0.30		$	3.06
Stock-based compensation		0.34			0.39			0.32			1.17			1.15
Acquisition related expenses and amortization		0.04			0.04			0.04			0.12			0.13
Restructuring and asset impairment charges		0.01			0.01			—			0.03			0.01
Non-cash interest expense		0.02			0.02			0.02			0.05			0.04
Non-GAAP income tax adjustment		(0.10	)		(0.11	)		(0.18	)		(0.23	)		(0.44	)
Net income per share, basic (Non-GAAP)	$	0.65		$	0.43		$	1.04		$	1.44		$	3.95

Shares used in basic per share calculation GAAP and Non-GAAP		135,329			135,646			136,165			135,621			136,491

Net income per share, diluted (GAAP)	$	0.33		$	0.08		$	0.80		$	0.30		$	2.92
Stock-based compensation		0.33			0.38			0.32			1.17			1.17
Acquisition related expenses and amortization		0.04			0.04			0.04			0.12			0.12
Restructuring and asset impairment charges		0.01			0.01			—			0.03			0.01
Non-cash interest expense		0.02			0.02			0.02			0.05			0.04
Non-GAAP income tax adjustment		(0.08	)		(0.10	)		(0.16	)		(0.24	)		(0.40	)
Net income per share, diluted (Non-GAAP)⁽²⁾	$	0.65		$	0.43		$	1.02		$	1.43		$	3.86

Shares used in diluted per share calculation GAAP		139,914			136,123			143,863			136,236			145,081
Shares used in diluted per share calculation Non-GAAP		135,839			136,123			138,535			136,236			139,753

Income-based government grants (GAAP)	$	46,552		$	24,329		$	18,532		$	89,498		$	20,583
Incremental cost for manufacturing in U.S.		(11,396	)		(5,950	)		(4,085	)		(22,228	)		(4,491	)
Net IRA benefit (Non-GAAP)	$	35,156		$	18,379		$	14,447		$	67,270		$	16,092

Net cash provided by operating activities (GAAP)	$	170,138		$	127,062		$	145,855		$	346,401		$	661,330
Purchases of property and equipment		(8,533	)		(9,636	)		(23,848	)		(25,540	)		(90,326	)
Free cash flow (Non-GAAP)	$	161,605		$	117,426		$	122,007		$	320,861		$	571,004

(2) Calculation of non-GAAP diluted net income per share for the three and nine months ended September 30, 2023 excludes convertible Notes due 2023 interest expense, net of tax of less than $0.1 million from non-GAAP net income.

This press release was published by a CLEAR® Verified individual.

The MIL Network –

January 24, 2025

MIL-OSI: Hanmi Reports 2024 Third Quarter Results

Source: GlobeNewswire (MIL-OSI)

LOS ANGELES, Oct. 22, 2024 (GLOBE NEWSWIRE) — Hanmi Financial Corporation (NASDAQ: HAFC, or “Hanmi”), the parent company of Hanmi Bank (the “Bank”), today reported financial results for the third quarter of 2024.

Net income for the third quarter of 2024 was $14.9 million, or $0.49 per diluted share, compared with $14.5 million, or $0.48 per diluted share, for the second quarter of 2024. The return on average assets for the third quarter of 2024 was 0.79% and the return on average equity was 7.55%, compared with a return on average assets of 0.77% and the return on average equity of 7.50% for the second quarter of 2024.

CEO Commentary
“Our third quarter results were strong, with solid performance across all key operating metrics in the third quarter,” said Bonnie Lee, President and Chief Executive Officer of Hanmi. “Net interest margin increased five basis points to 2.74% driven by higher yields on interest-earning assets and lower funding costs. Loans grew by 2% driven by a 27% increase in loan production and total deposits were up led by 5% growth in noninterest-bearing demand deposits. These results reflect the continued success of our relationship banking model and our portfolio diversification strategy.”

“During the quarter, we remained focused on our disciplined credit administration practices and are pleased to report that we resolved several criticized and nonaccrual loans and recognized a recovery on a previously charged-off loan. We also proactively moved three loans to the special mention category to monitor them more closely. These loans are current, and we are confident they are well protected.”

“Hanmi is well-positioned for a strong close to 2024 with a robust balance sheet, ample liquidity, healthy capital ratios, and a solid loan pipeline. Our team remains committed to delivering the solutions our customers need and results our shareholders expect,” concluded Lee.

Third Quarter 2024 Highlights:

Third quarter net income was $14.9 million, or $0.49 per diluted share, compared with $14.5 million, or $0.48 per diluted share for the second quarter of 2024. The increase reflects a $2.0 million, or 9.4%, increase in pretax, preprovision income, propelled by a 2.9% increase in net interest income.
Loans receivable were $6.26 billion at September 30, 2024, up 1.3% from the end of the second quarter of 2024, driven by a 27% increase in loan production to $347.8 million with a weighted average interest rate of 7.92%.
Deposits were $6.40 billion at September 30, 2024, up 1.2% from the end of the second quarter of 2024; noninterest-bearing demand deposits were 32.0% of total deposits. During the quarter, noninterest bearing demand deposits grew 4.7%, while time deposits declined 3.2% from the prior quarter.
Net interest income for the third quarter was $50.1 million, up 2.9% from the second quarter of 2024, driven by strong operational performance. Net interest margin (taxable equivalent) expanded five basis points to 2.74%, as the average yield on loans increased to 6.00%, while the cost of interest-bearing deposits remained unchanged at 4.27%.

Noninterest expense was $35.1 million for the third quarter, down 0.6% from the second quarter of 2024, primarily reflecting the absence of the second quarter $0.3 million branch consolidation charge.

Credit loss expense for the third quarter was $2.3 million, compared with $1.0 million for the prior quarter. The allowance for credit losses increased $1.4 million to $69.2 million at September 30, 2024, or 1.11% of loans. For the third quarter, net loan charge-offs of $0.9 million included a $1.1 million charge-off on a nonaccrual loan transferred to held-for-sale and a $1.7 million recovery of a nonaccrual loan.
Asset quality included several notable actions: nonaccrual loans fell 18.8% to $15.2 million and included pay-offs of $6.8 million while criticized assets increased, with downgrades to special mention of three loans totaling $129.8 million, offset by the move to the held-for-sale nonaccrual loan category of the previously identified $28.3 million completed construction loan, upgrades of $6.1 million, and additional loan pay-offs of $1.3 million. Subsequent to the end of the third quarter, the Bank completed the sale of the nonaccrual loan.

For more information about Hanmi, please see the Q3 2024 Investor Update (and Supplemental Financial Information), which is available on the Bank’s website at http://www.hanmi.com and via a current report on Form 8-K on the website of the Securities and Exchange Commission at http://www.sec.gov. Also, please refer to “Non-GAAP Financial Measures” herein for further details of the presentation of certain non-GAAP financial measures.

Quarterly Highlights
(Dollars in thousands, except per share data)

	As of or for the Three Months Ended															Amount Change
	September 30,			June 30,			March 31,			December 31,			September 30,			Q3-24		Q3-24
	2024			2024			2024			2023			2023			vs. Q2-24		vs. Q3-23

Net income	$	14,892		$	14,451		$	15,164		$	18,633		$	18,796		$	441	$	(3,904	)
Net income per diluted common share	$	0.49		$	0.48		$	0.50		$	0.61		$	0.62		$	0.01	$	(0.13	)

Assets	$	7,712,299		$	7,586,347		$	7,512,046		$	7,570,341		$	7,350,140		$	125,952	$	362,159
Loans receivable	$	6,257,744		$	6,176,359		$	6,177,840		$	6,182,434		$	6,020,785		$	81,385	$	236,959
Deposits	$	6,403,221		$	6,329,340		$	6,376,060		$	6,280,574		$	6,260,072		$	73,881	$	143,149

Return on average assets		0.79	%		0.77	%		0.81	%		0.99	%		1.00	%		0.02		-0.21
Return on average stockholders’ equity		7.55	%		7.50	%		7.90	%		9.70	%		9.88	%		0.06		-2.33

Net interest margin		2.74	%		2.69	%		2.78	%		2.92	%		3.03	%		0.05		-0.29
Efficiency ratio ⁽¹⁾		59.98	%		62.24	%		62.42	%		58.86	%		51.82	%		-2.26		8.16

Tangible common equity to tangible assets ⁽²⁾		9.42	%		9.19	%		9.23	%		9.14	%		8.89	%		0.23		0.53
Tangible common equity per common share ⁽²⁾	$	24.03		$	22.99		$	22.86		$	22.75		$	21.45			1.04		2.58

⁽¹⁾Noninterest expense divided by net interest income plus noninterest income.
⁽²⁾Refer to “Non-GAAP Financial Measures” for further details.

Results of Operations
Net interest income for the third quarter was $50.1 million, up 2.9% from $48.6 million for the second quarter of 2024. The increase was primarily due to an increase in loan interest income. The increase in loan interest income was a result of increases in loan yields and average balances. The yield on average loans for the third quarter increased slightly to 6.00% from 5.99% for the second quarter of 2024. Average loans were $6.11 billion for the third quarter of 2024, up 0.4% from $6.09 billion for the second quarter. The cost of interest-bearing deposits was 4.27% for the third quarter of 2024, unchanged from the prior quarter. Average interest-bearing deposits were $4.40 billion for the third quarter, up 0.3%, from $4.38 billion for the prior quarter. Net interest margin (taxable equivalent) for the third quarter was 2.74%, compared with 2.69% for the second quarter of 2024.

	For the Three Months Ended (in thousands)										Percentage Change
	Sep 30,		Jun 30,		Mar 31,		Dec 31,		Sep 30,		Q3-24			Q3-24
Net Interest Income	2024		2024		2024		2023		2023		vs. Q2-24			vs. Q3-23

Interest and fees on loans receivable⁽¹⁾	$	92,182	$	90,752	$	91,674	$	89,922	$	85,398		1.6	%		7.9	%
Interest on securities		5,523		5,238		4,955		4,583		4,204		5.4	%		31.4	%
Dividends on FHLB stock		356		357		361		341		317		-0.3	%		12.3	%
Interest on deposits in other banks		2,356		2,313		2,604		2,337		4,153		1.9	%		-43.3	%
Total interest and dividend income	$	100,417	$	98,660	$	99,594	$	97,183	$	94,072		1.8	%		6.7	%

Interest on deposits		47,153		46,495		45,638		40,277		36,818		1.4	%		28.1	%
Interest on borrowings		1,561		1,896		1,655		2,112		753		-17.7	%		107.3	%
Interest on subordinated debentures		1,652		1,649		1,646		1,654		1,646		0.2	%		0.4	%
Total interest expense		50,366		50,040		48,939		44,043		39,217		0.7	%		28.4	%
Net interest income	$	50,051	$	48,620	$	50,655	$	53,140	$	54,855		2.9	%		-8.8	%

⁽¹⁾Includes loans held for sale.

	For the Three Months Ended (in thousands)										Percentage Change
Average Earning Assets and	Sep 30,		Jun 30,		Mar 31,		Dec 31,		Sep 30,		Q3-24			Q3-24
Interest-bearing Liabilities	2024		2024		2024		2023		2023		vs. Q2-24			vs. Q3-23
Loans receivable ⁽¹⁾	$	6,112,324	$	6,089,440	$	6,137,888	$	6,071,644	$	5,915,423		0.4	%		3.3	%
Securities		986,041		979,671		969,520		961,551		955,473		0.7	%		3.2	%
FHLB stock		16,385		16,385		16,385		16,385		16,385		0.0	%		0.0	%
Interest-bearing deposits in other banks		183,027		180,177		201,724		181,140		317,498		1.6	%		-42.4	%
Average interest-earning assets	$	7,297,777	$	7,265,673	$	7,325,517	$	7,230,720	$	7,204,779		0.4	%		1.3	%

Demand: interest-bearing	$	83,647	$	85,443	$	86,401	$	86,679	$	94,703		-2.1	%		-11.7	%
Money market and savings		1,885,799		1,845,870		1,815,085		1,669,973		1,601,826		2.2	%		17.7	%
Time deposits		2,427,737		2,453,154		2,507,830		2,417,803		2,438,112		-1.0	%		-0.4	%
Average interest-bearing deposits		4,397,183		4,384,467		4,409,316		4,174,455		4,134,641		0.3	%		6.3	%
Borrowings		143,479		169,525		162,418		205,951		120,381		-15.4	%		19.2	%
Subordinated debentures		130,403		130,239		130,088		129,933		129,780		0.1	%		0.5	%
Average interest-bearing liabilities	$	4,671,065	$	4,684,231	$	4,701,822	$	4,510,339	$	4,384,802		-0.3	%		6.5	%

Average Noninterest Bearing Deposits
Demand deposits – noninterest bearing	$	1,908,833	$	1,883,765	$	1,921,189	$	2,025,212	$	2,136,156		1.3	%		-10.6	%

⁽¹⁾Includes loans held for sale.

	For the Three Months Ended															Yield/Rate Change
	Sep 30,			Jun 30,			Mar 31,			Dec 31,			Sep 30,			Q3-24		Q3-24
Average Yields and Rates	2024			2024			2024			2023			2023			vs. Q2-24		vs. Q3-23
Loans receivable⁽¹⁾		6.00	%		5.99	%		6.00	%		5.88	%		5.73	%		0.01		0.27
Securities ⁽²⁾		2.27	%		2.17	%		2.07	%		1.93	%		1.79	%		0.10		0.48
FHLB stock		8.65	%		8.77	%		8.87	%		8.25	%		7.67	%		-0.12		0.98
Interest-bearing deposits in other banks		5.12	%		5.16	%		5.19	%		5.12	%		5.19	%		-0.04		-0.07
Interest-earning assets		5.48	%		5.46	%		5.47	%		5.34	%		5.19	%		0.02		0.29

Interest-bearing deposits		4.27	%		4.27	%		4.16	%		3.83	%		3.53	%		0.00		0.74
Borrowings		4.33	%		4.50	%		4.10	%		4.07	%		2.48	%		-0.17		1.85
Subordinated debentures		5.07	%		5.07	%		5.06	%		5.09	%		5.07	%		0.00		0.00
Interest-bearing liabilities		4.29	%		4.30	%		4.19	%		3.88	%		3.55	%		-0.01		0.74

Net interest margin (taxable equivalent basis)		2.74	%		2.69	%		2.78	%		2.92	%		3.03	%		0.05		-0.29

Cost of deposits		2.97	%		2.98	%		2.90	%		2.58	%		2.33	%		-0.01		0.64

⁽¹⁾Includes loans held for sale.
⁽²⁾Amounts calculated on a fully taxable equivalent basis using the federal tax rate in effect for the periods presented.

Credit loss expense for the third quarter was $2.3 million, compared with $1.0 million for the second quarter of 2024. Third quarter credit loss expense included a $2.3 million credit loss expense for loan losses. Third quarter net loan charge-offs were $0.9 million, compared with second quarter net loan charge-offs of $1.8 million. Third quarter net loan charge-offs included a $1.1 million charge-off on a nonaccrual loan transferred to held-for-sale and a $1.7 million recovery on a nonaccrual loan.

Noninterest income for the third quarter increased $0.3 million to $8.4 million, or 4.7%, from $8.1 million for the second quarter of 2024. Third quarter noninterest income included a $0.9 million gain from the sale and leaseback of a branch property, while second quarter noninterest income included a $0.3 million death benefit on bank-owned life insurance. Gains on sales of SBA loans were $1.5 million for the third quarter of 2024, compared with $1.6 million for the second quarter of 2024. The volume of SBA loans sold in the third quarter decreased to $23.0 million, from $23.5 million for the second quarter of 2024, while trade premiums were 8.54% for the third quarter of 2024, unchanged from the second quarter. Mortgage loans sold in the third quarter were $20.9 million, with a premium of 2.32%, compared with $19.5 million and 2.00% for the second quarter, resulting in income of $0.3 million for the third quarter, compared with $0.4 million for the prior quarter.

	For the Three Months Ended (in thousands)											Percentage Change
	Sep 30,		Jun 30,		Mar 31,		Dec 31,			Sep 30,		Q3-24			Q3-24
Noninterest Income	2024		2024		2024		2023			2023		vs. Q2-24			vs. Q3-23
Service charges on deposit accounts	$	2,311	$	2,429	$	2,450	$	2,391		$	2,605		-4.9	%		-11.3	%
Trade finance and other service charges and fees		1,254		1,277		1,414		1,245			1,155		-1.8	%		8.6	%
Servicing income		817		796		712		772			838		2.6	%		-2.5	%
Bank-owned life insurance income (expense)		320		638		304		(29	)		280		-49.8	%		14.3	%
All other operating income		1,008		908		928		853			1,178		11.0	%		-14.4	%
Service charges, fees & other		5,710		6,048		5,808		5,232			6,056		-5.6	%		-5.7	%

Gain on sale of SBA loans		1,544		1,644		1,482		1,448			1,172		-6.1	%		31.7	%
Gain on sale of mortgage loans		324		365		443		–			–		-11.2	%		100.0	%
Gain on sale of bank premises		860		–		–		–			4,000		100.0	%		-78.5	%
Total noninterest income	$	8,438	$	8,057	$	7,733	$	6,680		$	11,228		4.7	%		-24.8	%

Noninterest expense for the third quarter decreased by $0.2 million to $35.1 million from $35.3 million for the second quarter of 2024. The decrease reflects primarily the absence of the $0.3 million branch consolidation expense recognized in the second quarter of 2024. The efficiency ratio for the third quarter was 60.0%, compared with 62.2% for the second quarter of 2024.

	For the Three Months Ended (in thousands)										Percentage Change
	Sep 30,		Jun 30,		Mar 31,		Dec 31,		Sep 30,		Q3-24			Q3-24
	2024		2024		2024		2023		2023		vs. Q2-24			vs. Q3-23
Noninterest Expense
Salaries and employee benefits	$	20,851	$	20,434	$	21,585	$	20,062	$	20,361		2.0	%		2.4	%
Occupancy and equipment		4,499		4,348		4,537		4,604		4,825		3.5	%		-6.8	%
Data processing		3,839		3,686		3,551		3,487		3,490		4.2	%		10.0	%
Professional fees		1,492		1,749		1,893		1,977		1,568		-14.7	%		-4.8	%
Supplies and communication		538		570		601		613		552		-5.6	%		-2.5	%
Advertising and promotion		631		669		907		990		534		-5.7	%		18.2	%
All other operating expenses		2,875		3,251		3,160		3,252		2,852		-11.6	%		0.8	%
Subtotal		34,725		34,707		36,234		34,985		34,182		0.1	%		1.6	%

Branch consolidation expense		–		301		–		–		–		-100.0	%		0.0	%
Other real estate owned expense		77		6		22		15		16		1183.3	%		381.3	%
Repossessed personal property expense		278		262		189		211		47		6.1	%		491.5	%
Total noninterest expense	$	35,080	$	35,276	$	36,445	$	35,211	$	34,245		-0.6	%		2.4	%

Hanmi recorded a provision for income taxes of $6.2 million for the third quarter of 2024, compared with $6.0 million for the second quarter of 2024, representing an effective tax rate of 29.5% and 29.3%, respectively.

Financial Position
Total assets at September 30, 2024 increased 1.7%, or $126.0 million, to $7.71 billion from $7.59 billion at June 30, 2024. The sequential quarter increase was due to a $125.3 million increase in loans and loans held-for-sale, and a $31.3 million increase in securities, offset partially by a $25.3 million decrease in cash and due from banks.

Loans receivable, before allowance for credit losses, were $6.26 billion at September 30, 2024, up from $6.18 billion at June 30, 2024.

Loans held-for-sale were $54.3 million at September 30, 2024, up from $10.5 million at June 30, 2024. At the end of the third quarter, loans held-for-sale consisted of $8.8 million of the guaranteed portion of SBA 7(a) loans, $18.3 million of residential mortgage loans and the $27.2 million nonaccrual loan. Subsequent to the end of the third quarter, the Bank completed the sale of this nonaccrual loan.

	As of (in thousands)										Percentage Change
	Sep 30,		Jun 30,		Mar 31,		Dec 31,		Sep 30,		Q3-24			Q3-24
	2024		2024		2024		2023		2023		vs. Q2-24			vs. Q3-23
Loan Portfolio
Commercial real estate loans	$	3,932,088	$	3,888,505	$	3,878,677	$	3,889,739	$	3,773,015		1.1	%		4.2	%
Residential/consumer loans		939,285		954,209		970,362		962,661		926,326		-1.6	%		1.4	%
Commercial and industrial loans		879,092		802,372		774,851		747,819		728,792		9.6	%		20.6	%
Equipment finance		507,279		531,273		553,950		582,215		592,652		-4.5	%		-14.4	%
Loans receivable		6,257,744		6,176,359		6,177,840		6,182,434		6,020,785		1.3	%		3.9	%
Loans held for sale		54,336		10,467		3,999		12,013		11,767		419.1	%		361.8	%
Total	$	6,312,080	$	6,186,826	$	6,181,839	$	6,194,447	$	6,032,552		2.0	%		4.6	%

	As of
	Sep 30,			Jun 30,			Mar 31,			Dec 31,			Sep 30,
	2024			2024			2024			2023			2023
Composition of Loan Portfolio
Commercial real estate loans		62.3	%		62.9	%		62.7	%		62.8	%		62.5	%
Residential/consumer loans		14.9	%		15.4	%		15.7	%		15.5	%		15.4	%
Commercial and industrial loans		13.9	%		13.0	%		12.5	%		12.1	%		12.1	%
Equipment finance		8.0	%		8.5	%		9.0	%		9.4	%		9.8	%
Loans receivable		99.1	%		99.8	%		99.9	%		99.8	%		99.8	%
Loans held for sale		0.9	%		0.2	%		0.1	%		0.2	%		0.2	%
Total		100.0	%		100.0	%		100.0	%		100.0	%		100.0	%

New loan production was $347.8 million for the third quarter of 2024 at an average rate of 7.92%, while payoffs were $77.6 million during the quarter at an average rate of 6.63%.

Commercial real estate loan production for the third quarter of 2024 was $110.2 million. Commercial and industrial loan production was $105.1 million, SBA loan production was $51.6 million, equipment finance production was $40.1 million, and residential mortgage loan production was $40.8 million.

	For the Three Months Ended (in thousands)
	Sep 30,			Jun 30,			Mar 31,			Dec 31,			Sep 30,
	2024			2024			2024			2023			2023
New Loan Production
Commercial real estate loans	$	110,246		$	87,632		$	60,085		$	178,157		$	106,151
Commercial and industrial loans		105,086			59,007			50,789			52,079			67,907
SBA loans		51,616			54,486			30,817			48,432			36,109
Equipment finance		40,066			42,594			39,155			57,334			71,075
Residential/consumer loans		40,758			30,194			53,115			53,465			55,026
Subtotal		347,772			273,913			233,961			389,467			336,268


Payoffs		(77,603	)		(148,400	)		(86,250	)		(77,961	)		(62,140	)
Amortization		(151,674	)		(83,640	)		(90,711	)		(106,610	)		(116,411	)
Loan sales		(43,868	)		(42,945	)		(55,321	)		(29,861	)		(22,496	)
Net line utilization		9,426			1,929			(4,150	)		(11,609	)		(70,238	)
Charge-offs & OREO		(2,668	)		(2,338	)		(2,123	)		(1,777	)		(9,369	)

Loans receivable-beginning balance		6,176,359			6,177,840			6,182,434			6,020,785			5,965,171
Loans receivable-ending balance	$	6,257,744		$	6,176,359		$	6,177,840		$	6,182,434		$	6,020,785

Deposits were $6.40 billion at the end of the third quarter of 2024, up $73.9 million, or 1.2%, from $6.33 billion at the end of the prior quarter. Driving the change was a $91.8 million increase in noninterest-bearing demand deposits and a $64.0 million increase in money market and savings deposits, partially offset by a $78.3 million decrease in time deposits. Noninterest-bearing demand deposits represented 32.0% of total deposits at September 30, 2024 and the loan-to-deposit ratio was 97.7%.

	As of (in thousands)										Percentage Change
	Sep 30,		Jun 30,		Mar 31,		Dec 31,		Sep 30,		Q3-24			Q3-24
	2024		2024		2024		2023		2023		vs. Q2-24			vs. Q3-23
Deposit Portfolio
Demand: noninterest-bearing	$	2,051,790	$	1,959,963	$	1,933,060	$	2,003,596	$	2,161,238		4.7	%		-5.1	%
Demand: interest-bearing		79,287		82,981		87,374		87,452		88,133		-4.5	%		-10.0	%
Money market and savings		1,898,834		1,834,797		1,859,865		1,734,658		1,576,006		3.5	%		20.5	%
Time deposits		2,373,310		2,451,599		2,495,761		2,454,868		2,434,695		-3.2	%		-2.5	%
Total deposits	$	6,403,221	$	6,329,340	$	6,376,060	$	6,280,574	$	6,260,072		1.2	%		2.3	%

	As of
	Sep 30,			Jun 30,			Mar 31,			Dec 31,			Sep 30,
	2024			2024			2024			2023			2023
Composition of Deposit Portfolio
Demand: noninterest-bearing		32.0	%		31.0	%		30.3	%		31.9	%		34.5	%
Demand: interest-bearing		1.2	%		1.3	%		1.4	%		1.4	%		1.4	%
Money market and savings		29.7	%		29.0	%		29.2	%		27.6	%		25.2	%
Time deposits		37.1	%		38.7	%		39.1	%		39.1	%		38.9	%
Total deposits		100.0	%		100.0	%		100.0	%		100.0	%		100.0	%

Stockholders’ equity at September 30, 2024 was $736.7 million, up $29.6 million from $707.1 million at June 30, 2024. The increase was due to third quarter net income, net of dividends paid, adding $7.3 million to stockholders’ equity for the period. Additionally, there was a $20.7 million decrease in unrealized after-tax losses on securities available for sale and a $2.2 million decrease in unrealized after-tax losses on cash flow hedges, all due to changes in interest rates during the third quarter of 2024. Hanmi also repurchased 75,000 shares of common stock, or $1.4 million, during the quarter at an average share price of $19.10. At September 30, 2024, 1,255,000 shares remain under Hanmi’s share repurchase program. Tangible common stockholders’ equity was $725.7 million, or 9.42% of tangible assets, at September 30, 2024, compared with $696.0 million, or 9.19% of tangible assets at the end of the prior quarter. Please refer to the Non-GAAP Financial Measures section below for more information.

Hanmi and the Bank exceeded minimum regulatory capital requirements, and the Bank continues to exceed the minimum for the “well capitalized” category. At September 30, 2024, Hanmi’s preliminary common equity tier 1 capital ratio was 11.95% and its total risk-based capital ratio was 15.04%, compared with 12.11% and 15.24%, respectively, at the end of the prior quarter.

	As of															Ratio Change
	Sep 30,			Jun 30,			Mar 31,			Dec 31,			Sep 30,			Q3-24		Q3-24
	2024			2024			2024			2023			2023			vs. Q2-24		vs. Q3-23
Regulatory Capital ratios ⁽¹⁾
Hanmi Financial
Total risk-based capital		15.04	%		15.24	%		15.20	%		14.95	%		15.07	%		-0.20		-0.03
Tier 1 risk-based capital		12.29	%		12.46	%		12.40	%		12.20	%		12.30	%		-0.17		-0.01
Common equity tier 1 capital		11.95	%		12.11	%		12.05	%		11.86	%		11.95	%		-0.16		0.00
Tier 1 leverage capital ratio		10.56	%		10.51	%		10.36	%		10.37	%		10.27	%		0.05		0.29
Hanmi Bank
Total risk-based capital		14.28	%		14.51	%		14.50	%		14.27	%		14.42	%		-0.23		-0.14
Tier 1 risk-based capital		13.24	%		13.47	%		13.44	%		13.26	%		13.42	%		-0.23		-0.18
Common equity tier 1 capital		13.24	%		13.47	%		13.44	%		13.26	%		13.42	%		-0.23		-0.18
Tier 1 leverage capital ratio		11.43	%		11.41	%		11.29	%		11.32	%		11.25	%		0.02		0.18

⁽¹⁾Preliminary ratios for September 30, 2024

Asset Quality
Loans 30 to 89 days past due and still accruing were 0.24% of loans at the end of the third quarter of 2024, compared with 0.22% at the end of the prior quarter.

Criticized loans totaled $160.0 million at September 30, 2024, up from $70.9 million at the end of the second quarter of 2024.

During the third quarter, the Bank moved the previously identified $28.3 million completed construction loan for a memory-care and assisted-living facility from the special mention category to the held-for-sale nonaccrual category. In addition, the Bank recognized a $1.1 million charge-off on this loan. Subsequent to the end of the third quarter, the Bank completed the sale of this nonaccrual loan.

Also, during the third quarter, the Bank downgraded to special mention two commercial real estate loans in the hospitality industry for $109.7 million and a commercial and industrial loan in the health care industry for $20.1 million. Pay-offs of $8.1 million decreased criticized loans (and classified loans), while upgrades of $6.1 million also decreased criticized loans (and special mention loans). Offsetting the decrease in classified loans were additions of $2.5 million.

Nonperforming loans were $15.5 million at September 30, 2024, down from $19.2 million at the end of the prior quarter. The decrease primarily reflects pay-offs of $6.8 million, where the pay-off of a previously identified $3.9 million nonperforming loan resulted in a $1.7 million recovery. Offsetting the decrease were additions of $3.1 million.

Nonperforming assets were $16.3 million at the end of the third quarter of 2024, down from $20.0 million at the end of the prior quarter. As a percentage of total assets, nonperforming assets were 0.21% at September 30, 2024, and 0.26% at the end of the prior quarter.

Gross charge-offs for the third quarter of 2024 were $3.8 million, compared with $2.3 million for the preceding quarter. Charge-offs included $1.1 million on the previously identified $28.3 million completed construction loan. Recoveries of previously charged-off loans were $2.9 million in the third quarter of 2024, and included a $1.7 million recovery on a previously identified $3.9 million commercial loan in the health care industry. As a result, net charge-offs were $0.9 million for the third quarter of 2024, compared with net charge-offs of $1.8 million for the prior quarter.

The allowance for credit losses was $69.2 million at September 30, 2024, compared with $67.7 million at June 30, 2024. Specific allowances for loans decreased $1.6 million, while the allowance for quantitative and qualitative considerations increased $3.1 million. The ratio of the allowance for credit losses to loans was 1.11% at September 30, 2024 and 1.10% at June 30, 2024.

	As of or for the Three Months Ended (in thousands)															Amount Change
	Sep 30,			Jun 30,			Mar 31,			Dec 31,			Sep 30,			Q3-24			Q3-24
	2024			2024			2024			2023			2023			vs. Q2-24			vs. Q3-23
Asset Quality Data and Ratios

Delinquent loans:
Loans, 30 to 89 days past due and still accruing	$	15,027		$	13,844		$	15,839		$	10,263		$	9,545		$	1,183		$	5,482
Delinquent loans to total loans		0.24	%		0.22	%		0.26	%		0.17	%		0.16	%		0.02			0.08

Criticized loans:
Special mention	$	131,575		$	36,921		$	62,317		$	65,314		$	76,473		$	94,654		$	55,102
Classified		28,377			33,945			23,670			31,367			33,134			(5,568	)		(4,757	)
Total criticized loans	$	159,952		$	70,866		$	85,987		$	96,681		$	109,607		$	89,086		$	50,345

Nonperforming assets:
Nonaccrual loans	$	15,248		$	19,245		$	14,025		$	15,474		$	15,783		$	(3,997	)	$	(535	)
Loans 90 days or more past due and still accruing		242			–			–			–			–			242			242
Nonperforming loans*		15,490			19,245			14,025			15,474			15,783			(3,755	)		(293	)
Other real estate owned, net		772			772			117			117			117			–			655
Nonperforming assets**	$	16,262		$	20,017		$	14,142		$	15,591		$	15,900		$	(3,755	)	$	362

Nonperforming assets to assets*		0.21	%		0.26	%		0.19	%		0.21	%		0.22	%		-0.05			-0.01
Nonperforming loans to total loans		0.25	%		0.31	%		0.23	%		0.25	%		0.26	%		-0.06			-0.01

* Excludes a $27.2 million nonperforming loan held-for-sale.
** Excludes repossessed personal property of $1.2 million, $1.2 million, $1.3 million, $1.3 million, and $1.3 million as of Q3-24, Q2-24, Q1-24, Q4-23, and Q3-23, respectively

	As of or for the Three Months Ended (in thousands)
	Sep 30,			Jun 30,			Mar 31,			Dec 31,			Sep 30,
	2024			2024			2024			2023			2023
Allowance for credit losses related to loans:
Balance at beginning of period	$	67,729		$	68,270		$	69,462		$	67,313		$	71,024
Credit loss expense (recovery) on loans		2,312			1,248			404			(2,880	)		5,167
Net loan (charge-offs) recoveries		(878	)		(1,789	)		(1,596	)		5,029			(8,878	)
Balance at end of period	$	69,163		$	67,729		$	68,270		$	69,462		$	67,313

Net loan charge-offs (recoveries) to average loans ⁽¹⁾		0.06	%		0.12	%		0.10	%		-0.33	%		0.60	%
Allowance for credit losses to loans		1.11	%		1.10	%		1.11	%		1.12	%		1.12	%

Allowance for credit losses related to off-balance sheet items:
Balance at beginning of period	$	2,010		$	2,297		$	2,474		$	2,463		$	2,476
Credit loss expense (recovery) on off-balance sheet items		(26	)		(287	)		(177	)		11			(13	)
Balance at end of period	$	1,984		$	2,010		$	2,297		$	2,474		$	2,463

Unused commitments to extend credit	$	739,975		$	795,391		$	792,769		$	813,960		$	848,886

⁽¹⁾Annualized

Corporate Developments
On July 25, 2024, Hanmi’s Board of Directors declared a cash dividend on its common stock for the 2024 third quarter of $0.25 per share. Hanmi paid the dividend on August 21, 2024, to stockholders of record as of the close of business on August 5, 2024.

Earnings Conference Call
Hanmi Bank will host its third quarter 2024 earnings conference call today, October 22, 2024, at 2:00 p.m. PT (5:00 p.m. ET) to discuss these results. This call will also be webcast. To access the call, please dial 1-877-407-9039 before 2:00 p.m. PT, using access code Hanmi Bank. To listen to the call online, either live or archived, please visit Hanmi’s Investor Relations website at https://investors.hanmi.com/ where it will also be available for replay approximately one hour following the call.

About Hanmi Financial Corporation
Headquartered in Los Angeles, California, Hanmi Financial Corporation owns Hanmi Bank, which serves multi-ethnic communities through its network of 32 full-service branches and eight loan production offices in California, Texas, Illinois, Virginia, New Jersey, New York, Colorado, Washington and Georgia. Hanmi Bank specializes in real estate, commercial, SBA and trade finance lending to small and middle market businesses. Additional information is available at http://www.hanmi.com.

Forward-Looking Statements
This press release contains forward-looking statements, which are included in accordance with the “safe harbor” provisions of the Private Securities Litigation Reform Act of 1995. All statements other than statements of historical fact are “forward-looking statements” for purposes of federal and state securities laws, including, but not limited to, statements about our anticipated future operating and financial performance, financial position and liquidity, business strategies, regulatory and competitive outlook, investment and expenditure plans, capital and financing needs and availability, plans and objectives of management for future operations, developments regarding our capital and strategic plans, and other similar forecasts and statements of expectation and statements of assumption underlying any of the foregoing. In some cases, you can identify forward-looking statements by terminology such as “may,” “will,” “should,” “could,” “expects,” “plans,” “intends,” “anticipates,” “believes,” “estimates,” “predicts,” “potential,” or “continue,” or the negative of such terms and other comparable terminology. Although we believe that our forward-looking statements to be reasonable, we cannot guarantee future results, levels of activity, performance or achievements.

Forward-looking statements involve known and unknown risks, uncertainties and other factors that may cause our actual results, levels of activity, performance or achievements to differ from those expressed or implied by the forward-looking statements. These factors include the following:

a failure to maintain adequate levels of capital and liquidity to support our operations;
general economic and business conditions internationally, nationally and in those areas in which we operate, including any potential recessionary conditions;
volatility and deterioration in the credit and equity markets;
changes in consumer spending, borrowing and savings habits;
availability of capital from private and government sources;
demographic changes;
competition for loans and deposits and failure to attract or retain loans and deposits;
inflation and fluctuations in interest rates that reduce our margins and yields, the fair value of financial instruments, the level of loan originations or prepayments on loans we have made and make, the level of loan sales and the cost we pay to retain and attract deposits and secure other types of funding;
our ability to enter new markets successfully and capitalize on growth opportunities;
the current or anticipated impact of military conflict, terrorism or other geopolitical events;
the effect of potential future supervisory action against us or Hanmi Bank and our ability to address any issues raised in our regulatory exams;
risks of natural disasters;
legal proceedings and litigation brought against us;
a failure in or breach of our operational or security systems or infrastructure, including cyberattacks;
the failure to maintain current technologies;
risks associated with Small Business Administration loans;
failure to attract or retain key employees;
our ability to access cost-effective funding;
changes in liquidity, including the size and composition of our deposit portfolio and the percentage of uninsured deposits in the portfolio;
fluctuations in real estate values;
changes in accounting policies and practices;
changes in governmental regulation, including, but not limited to, any increase in FDIC insurance premiums and changes in the monetary policies of the U.S. Treasury and the Board of Governors of the Federal Reserve System;
the ability of Hanmi Bank to make distributions to Hanmi Financial Corporation, which is restricted by certain factors, including Hanmi Bank’s retained earnings, net income, prior distributions made, and certain other financial tests;
strategic transactions we may enter into;
the adequacy of and changes in the methodology for computing our allowance for credit losses;
our credit quality and the effect of credit quality on our credit losses expense and allowance for credit losses;
changes in the financial performance and/or condition of our borrowers and the ability of our borrowers to perform under the terms of their loans and other terms of credit agreements;
our ability to control expenses; and
cyber security and fraud risks against our information technology and those of our third-party providers and vendors.

In addition, we set forth certain risks in our reports filed with the U.S. Securities and Exchange Commission, including, Item 1A of our Annual Report on Form 10-K for the year ended December 31, 2023, our Quarterly Reports on Form 10-Q, and Current Reports on Form 8-K that we will file hereafter, which could cause actual results to differ from those projected. We undertake no obligation to update such forward-looking statements except as required by law.

Investor Contacts:
Romolo (Ron) Santarosa
Senior Executive Vice President & Chief Financial Officer
213-427-5636

Lisa Fortuna
Investor Relations
Financial Profiles, Inc.
lfortuna@finprofiles.com
310-622-8251

Hanmi Financial Corporation and Subsidiaries
Consolidated Balance Sheets (Unaudited)
(Dollars in thousands)

	September 30,			June 30,			Percentage			September 30,			Percentage
	2024			2024			Change			2023			Change
Assets
Cash and due from banks	$	287,767		$	313,079			-8.1	%	$	289,006			-0.4	%
Securities available for sale, at fair value		908,921			877,638			3.6	%		817,242			11.2	%
Loans held for sale, at the lower of cost or fair value		54,336			10,467			419.1	%		11,767			361.8	%
Loans receivable, net of allowance for credit losses		6,188,581			6,108,630			1.3	%		5,953,472			3.9	%
Accrued interest receivable		21,955			23,958			-8.4	%		20,715			6.0	%
Premises and equipment, net		21,371			21,955			-2.7	%		20,707			3.2	%
Customers’ liability on acceptances		67			551			-87.8	%		1,386			-95.2	%
Servicing assets		6,683			6,836			-2.2	%		7,156			-6.6	%
Goodwill and other intangible assets, net		11,031			11,048			-0.2	%		11,131			-0.9	%
Federal Home Loan Bank (“FHLB”) stock, at cost		16,385			16,385			0.0	%		16,385			0.0	%
Bank-owned life insurance		56,851			56,534			0.6	%		56,364			0.9	%
Prepaid expenses and other assets		138,351			139,266			-0.7	%		144,809			-4.5	%
Total assets	$	7,712,299		$	7,586,347			1.7	%	$	7,350,140			4.9	%

Liabilities and Stockholders’ Equity
Liabilities:
Deposits:
Noninterest-bearing	$	2,051,790		$	1,959,963			4.7	%	$	2,161,238			-5.1	%
Interest-bearing		4,351,431			4,369,377			-0.4	%		4,098,834			6.2	%
Total deposits		6,403,221			6,329,340			1.2	%		6,260,072			2.3	%
Accrued interest payable		52,613			47,699			10.3	%		50,286			4.6	%
Bank’s liability on acceptances		67			551			-87.8	%		1,386			-95.2	%
Borrowings		300,000			292,500			2.6	%		162,500			84.6	%
Subordinated debentures		130,478			130,318			0.1	%		129,860			0.5	%
Accrued expenses and other liabilities		89,211			78,880			13.1	%		82,677			7.9	%
Total liabilities		6,975,590			6,879,288			1.4	%		6,686,781			4.3	%

Stockholders’ equity:
Common stock		34			34			0.0	%		34			0.0	%
Additional paid-in capital		589,567			588,647			0.2	%		586,169			0.6	%
Accumulated other comprehensive income		(55,140	)		(78,000	)		29.3	%		(99,422	)		44.5	%
Retained earnings		340,718			333,392			2.2	%		308,007			10.6	%
Less treasury stock		(138,470	)		(137,014	)		-1.1	%		(131,429	)		-5.4	%
Total stockholders’ equity		736,709			707,059			4.2	%		663,359			11.1	%
Total liabilities and stockholders’ equity	$	7,712,299		$	7,586,347			1.7	%	$	7,350,140			4.9	%

Hanmi Financial Corporation and Subsidiaries
Consolidated Statements of Income (Unaudited)
(Dollars in thousands, except share and per share data)

	Three Months Ended
	September 30,		June 30,		Percentage			September 30,		Percentage
	2024		2024		Change			2023		Change
Interest and dividend income:
Interest and fees on loans receivable	$	92,182	$	90,752		1.6	%	$	85,398		7.9	%
Interest on securities		5,523		5,238		5.4	%		4,204		31.4	%
Dividends on FHLB stock		356		357		-0.3	%		317		12.3	%
Interest on deposits in other banks		2,356		2,313		1.9	%		4,153		-43.3	%
Total interest and dividend income		100,417		98,660		1.8	%		94,072		6.7	%
Interest expense:
Interest on deposits		47,153		46,495		1.4	%		36,818		28.1	%
Interest on borrowings		1,561		1,896		-17.7	%		753		107.3	%
Interest on subordinated debentures		1,652		1,649		0.2	%		1,646		0.4	%
Total interest expense		50,366		50,040		0.7	%		39,217		28.4	%
Net interest income before credit loss expense		50,051		48,620		2.9	%		54,855		-8.8	%
Credit loss expense		2,286		961		137.9	%		5,154		-55.6	%
Net interest income after credit loss expense		47,765		47,659		0.2	%		49,701		-3.9	%
Noninterest income:
Service charges on deposit accounts		2,311		2,429		-4.9	%		2,605		-11.3	%
Trade finance and other service charges and fees		1,254		1,277		-1.8	%		1,155		8.6	%
Gain on sale of Small Business Administration (“SBA”) loans		1,544		1,644		-6.1	%		1,172		31.7	%
Other operating income		3,329		2,707		23.0	%		6,296		-47.1	%
Total noninterest income		8,438		8,057		4.7	%		11,228		-24.8	%
Noninterest expense:
Salaries and employee benefits		20,851		20,434		2.0	%		20,361		2.4	%
Occupancy and equipment		4,499		4,607		-2.3	%		4,825		-6.8	%
Data processing		3,839		3,686		4.2	%		3,490		10.0	%
Professional fees		1,492		1,749		-14.7	%		1,568		-4.8	%
Supplies and communications		538		570		-5.6	%		552		-2.5	%
Advertising and promotion		631		669		-5.7	%		534		18.2	%
Other operating expenses		3,230		3,561		-9.3	%		2,915		10.8	%
Total noninterest expense		35,080		35,276		-0.6	%		34,245		2.4	%
Income before tax		21,123		20,440		3.3	%		26,684		-20.8	%
Income tax expense		6,231		5,989		4.0	%		7,888		-21.0	%
Net income	$	14,892	$	14,451		3.1	%	$	18,796		-20.8	%

Basic earnings per share:	$	0.49	$	0.48				$	0.62
Diluted earnings per share:	$	0.49	$	0.48				$	0.62

Weighted-average shares outstanding:
Basic		29,968,004		30,055,913					30,251,961
Diluted		30,033,679		30,133,646					30,292,872
Common shares outstanding		30,196,755		30,272,110					30,410,582

Hanmi Financial Corporation and Subsidiaries
Consolidated Statements of Income (Unaudited)
(Dollars in thousands, except share and per share data)

	Nine Months Ended
	September 30,		September 30,		Percentage
	2024		2023		Change
Interest and dividend income:
Interest and fees on loans receivable	$	274,608	$	249,888		9.9	%
Interest on securities		15,717		12,356		27.2	%
Dividends on FHLB stock		1,075		888		21.1	%
Interest on deposits in other banks		7,270		9,012		-19.3	%
Total interest and dividend income		298,670		272,144		9.7	%
Interest expense:
Interest on deposits		139,286		94,431		47.5	%
Interest on borrowings		5,112		4,755		7.5	%
Interest on subordinated debentures		4,948		4,828		2.5	%
Total interest expense		149,346		104,014		43.6	%
Net interest income before credit loss expense		149,324		168,130		-11.2	%
Credit loss expense		3,474		7,210		-51.8	%
Net interest income after credit loss expense		145,850		160,920		-9.4	%
Noninterest income:
Service charges on deposit accounts		7,189		7,756		-7.3	%
Trade finance and other service charges and fees		3,945		3,586		10.0	%
Gain on sale of Small Business Administration (“SBA”) loans		4,669		4,253		9.8	%
Other operating income		8,425		11,904		-29.2	%
Total noninterest income		24,228		27,499		-11.9	%
Noninterest expense:
Salaries and employee benefits		62,870		61,336		2.5	%
Occupancy and equipment		13,643		13,737		-0.7	%
Data processing		11,076		10,208		8.5	%
Professional fees		5,134		4,278		20.0	%
Supplies and communications		1,710		1,866		-8.4	%
Advertising and promotion		2,207		2,114		4.4	%
Other operating expenses		10,160		7,777		30.6	%
Total noninterest expense		106,800		101,316		5.4	%
Income before tax		63,278		87,103		-27.4	%
Income tax expense		18,772		25,695		-26.9	%
Net income	$	44,506	$	61,408		-27.5	%

Basic earnings per share:	$	1.47	$	2.01
Diluted earnings per share:	$	1.47	$	2.01

Weighted-average shares outstanding:
Basic		30,048,748		30,296,991
Diluted		30,117,269		30,338,678
Common shares outstanding		30,196,755		30,410,582

Hanmi Financial Corporation and Subsidiaries
Average Balance, Average Yield Earned, and Average Rate Paid (Unaudited)
(Dollars in thousands)

	Three Months Ended
	September 30, 2024								June 30, 2024								September 30, 2023
				Interest		Average						Interest		Average						Interest		Average
	Average			Income /		Yield /			Average			Income /		Yield /			Average			Income /		Yield /
	Balance			Expense		Rate			Balance			Expense		Rate			Balance			Expense		Rate
Assets
Interest-earning assets:
Loans receivable ⁽¹⁾	$	6,112,324		$	92,182		6.00	%	$	6,089,440		$	90,752		5.99	%	$	5,915,423		$	85,398		5.73	%
Securities ⁽²⁾		986,041			5,523		2.27	%		979,671			5,238		2.17	%		955,473			4,204		1.79	%
FHLB stock		16,385			356		8.65	%		16,385			357		8.77	%		16,385			317		7.67	%
Interest-bearing deposits in other banks		183,027			2,356		5.12	%		180,177			2,313		5.16	%		317,498			4,153		5.19	%
Total interest-earning assets		7,297,777			100,417		5.48	%		7,265,673			98,660		5.46	%		7,204,779			94,072		5.19	%

Noninterest-earning assets:
Cash and due from banks		54,843								55,442								59,994
Allowance for credit losses		(67,906	)							(67,908	)							(70,173	)
Other assets		251,421								252,410								240,145

Total assets	$	7,536,135							$	7,505,617							$	7,434,745

Liabilities and Stockholders’ Equity
Interest-bearing liabilities:
Deposits:
Demand: interest-bearing	$	83,647		$	31		0.15	%	$	85,443		$	32		0.15	%	$	94,703		$	32		0.13	%
Money market and savings		1,885,799			17,863		3.77	%		1,845,870			17,324		3.77	%		1,601,826			12,485		3.09	%
Time deposits		2,427,737			29,259		4.79	%		2,453,154			29,139		4.78	%		2,438,112			24,301		3.95	%
Total interest-bearing deposits		4,397,183			47,153		4.27	%		4,384,467			46,495		4.27	%		4,134,641			36,818		3.53	%
Borrowings		143,479			1,561		4.33	%		169,525			1,896		4.50	%		120,381			753		2.48	%
Subordinated debentures		130,403			1,652		5.07	%		130,239			1,649		5.07	%		129,780			1,646		5.07	%
Total interest-bearing liabilities		4,671,065			50,366		4.29	%		4,684,231			50,040		4.30	%		4,384,802			39,217		3.55	%

Noninterest-bearing liabilities and equity:
Demand deposits: noninterest-bearing		1,908,833								1,883,765								2,136,156
Other liabilities		171,987								162,543								159,127
Stockholders’ equity		784,250								775,078								754,660

Total liabilities and stockholders’ equity	$	7,536,135							$	7,505,617							$	7,434,745

Net interest income				$	50,051							$	48,620							$	54,855

Cost of deposits							2.97	%							2.98	%							2.33	%
Net interest spread (taxable equivalent basis)							1.19	%							1.16	%							1.64	%
Net interest margin (taxable equivalent basis)							2.74	%							2.69	%							3.03	%

⁽¹⁾ Includes average loans held for sale
⁽²⁾ Income calculated on a fully taxable equivalent basis using the federal tax rate in effect for the periods presented.

Hanmi Financial Corporation and Subsidiaries
Average Balance, Average Yield Earned, and Average Rate Paid (Unaudited)
(Dollars in thousands)

	Nine Months Ended
	September 30, 2024								September 30, 2023
				Interest		Average						Interest		Average
	Average			Income /		Yield /			Average			Income /		Yield /
	Balance			Expense		Rate			Balance			Expense		Rate
Assets
Interest-earning assets:
Loans receivable ⁽¹⁾	$	6,113,214		$	274,608		6.00	%	$	5,933,525		$	249,888		5.63	%
Securities ⁽²⁾		978,439			15,717		2.17	%		969,146			12,356		1.73	%
FHLB stock		16,385			1,076		8.77	%		16,385			888		7.25	%
Interest-bearing deposits in other banks		188,290			7,269		5.16	%		247,581			9,012		4.87	%
Total interest-earning assets		7,296,328			298,670		5.47	%		7,166,637			272,144		5.08	%

Noninterest-earning assets:
Cash and due from banks		56,217								62,354
Allowance for credit losses		(68,305	)							(71,236	)
Other assets		249,517								237,111

Total assets	$	7,533,757							$	7,394,866

Liabilities and Stockholders’ Equity
Interest-bearing liabilities:
Deposits:
Demand: interest-bearing	$	85,158		$	92		0.14	%	$	100,997		$	88		0.12	%
Money market and savings		1,849,053			51,740		3.74	%		1,506,776			29,687		2.63	%
Time deposits		2,462,779			87,454		4.74	%		2,355,923			64,656		3.67	%
Total interest-bearing deposits		4,396,990			139,286		4.23	%		3,963,696			94,431		3.19	%
Borrowings		158,419			5,112		4.31	%		194,530			4,755		3.27	%
Subordinated debentures		130,244			4,948		5.06	%		129,632			4,828		4.97	%
Total interest-bearing liabilities		4,685,653			149,346		4.26	%		4,287,858			104,014		3.24	%

Noninterest-bearing liabilities and equity:
Demand deposits: noninterest-bearing		1,904,611								2,223,891
Other liabilities		166,372								140,070
Stockholders’ equity		777,121								743,047

Total liabilities and stockholders’ equity	$	7,533,757							$	7,394,866

Net interest income				$	149,324							$	168,130

Cost of deposits							2.95	%							2.04	%
Net interest spread (taxable equivalent basis)							1.21	%							1.84	%
Net interest margin (taxable equivalent basis)							2.74	%							3.14	%

⁽¹⁾ Includes average loans held for sale
⁽²⁾ Amounts calculated on a fully taxable equivalent basis using the federal tax rate in effect for the periods presented.

Non-GAAP Financial Measures

Tangible Common Equity to Tangible Assets Ratio

Tangible common equity to tangible assets ratio is supplemental financial information determined by a method other than in accordance with U.S. generally accepted accounting principles (“GAAP”). This non-GAAP measure is used by management in the analysis of Hanmi’s capital strength. Tangible common equity is calculated by subtracting goodwill and other intangible assets from stockholders’ equity. Banking and financial institution regulators also exclude goodwill and other intangible assets from stockholders’ equity when assessing the capital adequacy of a financial institution. Management believes the presentation of this financial measure excluding the impact of these items provides useful supplemental information that is essential to a proper understanding of the capital strength of Hanmi. This disclosure should not be viewed as a substitute for results determined in accordance with GAAP, nor is it necessarily comparable to non-GAAP performance measures that may be presented by other companies.

The following table reconciles this non-GAAP performance measure to the GAAP performance measure for the periods indicated:

Tangible Common Equity to Tangible Assets Ratio (Unaudited)
(In thousands, except share, per share data and ratios)

	September 30,			June 30,			March 31,			December 31,			September 30,
Hanmi Financial Corporation	2024			2024			2024			2023			2023
Assets	$	7,712,299		$	7,586,347		$	7,512,046		$	7,570,341		$	7,350,140
Less goodwill and other intangible assets		(11,031	)		(11,048	)		(11,074	)		(11,099	)		(11,131	)
Tangible assets	$	7,701,268		$	7,575,299		$	7,500,972		$	7,559,242		$	7,339,009

Stockholders’ equity ⁽¹⁾	$	736,709		$	707,059		$	703,100		$	701,891		$	663,359
Less goodwill and other intangible assets		(11,031	)		(11,048	)		(11,074	)		(11,099	)		(11,131	)
Tangible stockholders’ equity ⁽¹⁾	$	725,678		$	696,011		$	692,026		$	690,792		$	652,228

Stockholders’ equity to assets		9.55	%		9.32	%		9.36	%		9.27	%		9.03	%
Tangible common equity to tangible assets ⁽¹⁾		9.42	%		9.19	%		9.23	%		9.14	%		8.89	%

Common shares outstanding		30,196,755			30,272,110			30,276,358			30,368,655			30,410,582
Tangible common equity per common share	$	24.03		$	22.99		$	22.86		$	22.75		$	21.45

⁽¹⁾There were no preferred shares outstanding at the periods indicated.

The MIL Network –

January 24, 2025

MIL-OSI: National Bank Holdings Corporation Announces Third Quarter 2024 Financial Results and Increase to Quarterly Dividend

Source: GlobeNewswire (MIL-OSI)

DENVER, Oct. 22, 2024 (GLOBE NEWSWIRE) — National Bank Holdings Corporation (NYSE: NBHC) reported:


	For the quarter⁽¹⁾									For the year⁽¹⁾
	3Q24			2Q24			3Q23			2024			2023
Net income ($000’s)	$	33,105		$	26,135		$	36,087		$	90,631		$	108,927
Earnings per share – diluted	$	0.86		$	0.68		$	0.94		$	2.36		$	2.85
Return on average assets		1.32	%		1.06	%		1.46	%		1.22	%		1.50	%
Return on average tangible assets⁽²⁾		1.43	%		1.17	%		1.58	%		1.33	%		1.61	%
Return on average equity		10.33	%		8.46	%		12.26	%		9.70	%		12.71	%
Return on average tangible common equity⁽²⁾		14.84	%		12.44	%		18.38	%		14.14	%		18.81	%

(1	)	Ratios are annualized.
(2	)	See non-GAAP reconciliations below.

In announcing these results, Chief Executive Officer Tim Laney shared, “We delivered quarterly earnings of $0.86 per diluted share and a return on average tangible common equity of 14.84%. On the strength of our balance sheet, capital position and earnings, we are pleased to announce a 3.6% increase in our quarterly dividend to $0.29 per share. During the quarter, our disciplined approach to loan and deposit pricing drove 11 basis points of net interest margin expansion to 3.87%. Our teams delivered solid quarterly growth in our core banking fees, and we continued to leverage our diverse revenue streams across our franchise resulting in meaningful year-to-date fee income growth.”

Mr. Laney added, “We continue to remain vigilant in monitoring our loan portfolio, delivering the lowest non-performing loan ratio since early 2023. Our teams adhere to prudent, disciplined approaches that limit concentrations in our loan book and our depositor base, and we regularly perform robust stress testing on our loan portfolio. We enter the fourth quarter from a position of strength and stability and expect to finish the year strong. We believe our Common Equity Tier 1 capital ratio of 12.88%, ample liquidity position, and diversified funding sources provide optionality for future growth.”

Third Quarter 2024 Results
(All comparisons refer to the second quarter of 2024, except as noted)

Net income increased $7.0 million or 26.7% to $33.1 million or $0.86 per diluted share, compared to $26.1 million or $0.68 per diluted share. The quarter’s increase was driven by net interest income and fee income growth. Included in the prior quarter was $3.9 million of impairment related to venture capital investments. Fully taxable equivalent pre-provision net revenue increased $7.5 million or 20.6% to $43.7 million. The return on average tangible assets increased 26 basis points to 1.43%, and the return on average tangible common equity increased 240 basis points to 14.84%.

Net Interest Income
Fully taxable equivalent net interest income increased $4.2 million to $89.5 million, driven by a $74.7 million increase in average interest earning assets, a 12 basis point increase in average loan yields and one extra day in the quarter. The fully taxable equivalent net interest margin widened 11 basis points to 3.87%, driven by a 13 basis point increase in earning asset yields which was partially offset by a two basis point increase in the cost of funds.

Loans
Loans totaled $7.7 billion at September 30, 2024, consistent with the prior quarter. We generated quarterly loan fundings totaling $359.3 million, led by commercial loan fundings of $219.1 million. The average interest rate on the third quarter’s loan originations was 8.5%.

Asset Quality and Provision for Credit Losses
The Company recorded $2.0 million of provision expense for credit losses, compared to $2.8 million in the prior quarter. The current quarter’s provision expense was primarily driven by higher reserve requirements from changes in the CECL model’s underlying economic forecast. Annualized net charge-offs decreased four basis points to 0.18% of average total loans and included the resolution of one previously reserved credit during the quarter. Non-performing loans decreased three basis points to 0.31% of total loans at September 30, 2024, and non-performing assets decreased four basis points to 0.32% of total loans and OREO at September 30, 2024. The allowance for credit losses as a percentage of loans totaled 1.23% at September 30, 2024, compared to 1.25% in the prior quarter.

Deposits
Average total deposits increased $21.3 million to $8.4 billion during the third quarter 2024. The loan to deposit ratio totaled 90.8% at September 30, 2024. Average transaction deposits (defined as total deposits less time deposits) totaled $7.4 billion, consistent with the prior quarter. The mix of transaction deposits to total deposits was 88% at September 30, 2024, consistent with June 30, 2024.

Non-Interest Income
Non-interest income increased $4.4 million to $18.4 million driven by increases in our diversified sources of fee revenue. Service charges increased $0.6 million, swap fee income increased $0.3 million and trust fee income increased $0.1 million. These increases were partially offset by a $0.3 million decrease in mortgage banking income. Included in the prior quarter was $3.9 million of impairment related to venture capital investments.

Non-Interest Expense
Non-interest expense totaled $64.2 million during the third quarter, compared to $63.1 million in the prior quarter. Salaries and benefits increased $0.4 million driven by one additional payroll day in the quarter. Professional fees increased $0.4 million and data processing increased $0.3 million driven by our continued investments in technology. These increases were partially offset by a decrease in occupancy and equipment of $0.4 million. The fully taxable equivalent efficiency ratio, excluding other intangible assets amortization, improved 387 basis points to 57.7% for the third quarter.

Income tax expense increased $1.2 million to $6.8 million, compared to $5.6 million in the prior quarter, due to the third quarter’s higher pre-tax income. The effective tax rate was 17.0%, compared to 17.7% for the second quarter.

Capital
Capital ratios continue to be strong and in excess of federal bank regulatory agency “well capitalized” thresholds. The tier 1 leverage ratio totaled 10.44%, and the common equity tier 1 capital ratio totaled 12.88% at September 30, 2024. Shareholders’ equity totaled $1.3 billion at September 30, 2024, increasing $44.4 million. The third quarter’s net income drove $22.2 million of growth in retained earnings, and changes in the interest rate environment led to a $17.9 million improvement in accumulated other comprehensive loss.

Common book value per share increased $1.09 to $34.01 at September 30, 2024. Tangible common book value per share increased $1.17 to $24.91 as this quarter’s earnings and a decrease in accumulated other comprehensive loss outpaced the quarterly dividend.

Dividend Announcement
The quarterly cash dividend will increase 3.6% from $0.28 per share to $0.29 per share. The dividend will be payable on December 13, 2024 to shareholders of record at the close of business on November 29, 2024. This is the eighth consecutive semiannual increase to the quarterly dividend since early 2021.

Year-Over-Year Review
(All comparisons refer to the first nine months of 2023, except as noted)

Net income totaled $90.6 million, or $2.36 per diluted share, compared to net income of $108.9 million, or $2.85 per diluted share, for the first nine months of 2023. The decrease over the same period prior year was largely driven by lower net interest income, due to an increase in cost of funds outpacing the increase in interest income. Partially offsetting this decrease was a 4.7% increase in non-interest income driven by our diversified sources of fee revenue. Fully taxable equivalent pre-provision net revenue totaled $120.5 million, compared to $144.9 million. The return on average tangible assets totaled 1.33%, compared to 1.61%, and the return on average tangible common equity was 14.14%, compared to 18.81%.

Fully taxable equivalent net interest income totaled $260.5 million, compared to $276.9 million. Average earning assets increased $165.0 million, including average loan growth of $296.4 million, which was partially offset by a decrease in average investment securities of $70.2 million. The fully taxable equivalent net interest margin narrowed 32 basis points to 3.80%, as the increase in earning asset yields was more than offset by an increase in the cost of funds. Average interest bearing liabilities increased $555.3 million due to higher deposit balances, and the cost of funds totaled 2.31%, compared to 1.40% in the same period prior year.

Loans outstanding totaled $7.7 billion, increasing $236.1 million or 3.2%. New loan fundings over the trailing twelve months totaled $1.5 billion, led by commercial loan fundings of $1.0 billion.

The Company recorded $4.8 million of provision expense for credit losses for the first nine months of 2024, compared to provision expense of $3.7 million in the same period prior year. Annualized net charge-offs totaled 0.13% of average total loans during the first nine months of 2024, compared to 0.02% of average total loans during the first nine months of 2023. Non-performing loans decreased 13 basis points to 0.31% of total loans at September 30, 2024, and non-performing assets decreased 17 basis points to 0.32% of total loans and OREO at September 30, 2024. The allowance for credit losses as a percentage of loans totaled 1.23% at September 30, 2024, compared to 1.25% at September 30, 2023.

Average total deposits increased $418.6 million or 5.3% to $8.3 billion, and average transaction deposits increased $369.2 million or 5.3%. The mix of transaction deposits to total deposits was 88%, consistent with September 30, 2023.

Non-interest income totaled $50.1 million, an increase of $2.3 million or 4.7%, driven by increases in our diversified sources of fee revenue. Other non-interest income increased $5.2 million, or 63.6%, and included increases in SBA loan income, trust income, Cambr income and swap fee income. Mortgage banking income decreased $2.7 million as the sustained higher-interest rate environment has lowered mortgage volume.

Non-interest expense totaled $190.1 million, an increase of $10.2 million or 5.7%, largely due to ongoing investments in technology. Salaries and benefits increased $7.6 million, occupancy and equipment increased $2.4 million and data processing increased $2.3 million. Other intangible assets amortization increased $0.6 million due to our Cambr acquisition in April of 2023. These increases were partially offset by a decrease of $2.5 million in professional fees.

Income tax expense totaled $19.9 million, a decrease of $7.9 million from the same period prior year, driven by lower pre-tax income. The effective tax rate was 18.0% for the first nine months of 2024, compared to 20.3%.

Conference Call
Management will host a conference call to review the results at 11:00 a.m. Eastern Time on Wednesday, October 23, 2024. Interested parties may listen to this call by dialing (888) 204-4368 using the participant passcode of 3279876 and asking for the NBHC Q3 2024 Earnings Call. The earnings release and a link to the replay of the call will be available on the Company’s website at http://www.nationalbankholdings.com by visiting the investor relations area.

About National Bank Holdings Corporation
National Bank Holdings Corporation is a bank holding company created to build a leading community bank franchise, delivering high quality client service and committed to stakeholder results. Through its bank subsidiaries, NBH Bank and Bank of Jackson Hole Trust, National Bank Holdings Corporation operates a network of over 90 banking centers, serving individual consumers, small, medium and large businesses, and government and non-profit entities. Its banking centers are located in its core footprint of Colorado, the greater Kansas City region, Utah, Wyoming, Texas, New Mexico and Idaho. Its comprehensive residential mortgage banking group primarily serves the bank’s core footprint. Its trust and wealth management business is operated in its core footprint under the Bank of Jackson Hole Trust charter. NBH Bank operates under a single state charter through the following brand names as divisions of NBH Bank: in Colorado, Community Banks of Colorado and Community Banks Mortgage; in Kansas and Missouri, Bank Midwest and Bank Midwest Mortgage; in Texas, Utah, New Mexico and Idaho, Hillcrest Bank and Hillcrest Bank Mortgage; and in Wyoming, Bank of Jackson Hole and Bank of Jackson Hole Mortgage. Additional information about National Bank Holdings Corporation can be found at http://www.nationalbankholdings.com.

For more information visit: cobnks.com, bankmw.com, hillcrestbank.com, bankofjacksonhole.com, or nbhbank.com, or connect with any of our brands on LinkedIn.

About Non-GAAP Financial Measures
Certain of the financial measures and ratios we present, including “tangible assets,” “return on average tangible assets,” “tangible common equity,” “return on average tangible common equity,” “tangible common book value per share,” “tangible common book value, excluding accumulated other comprehensive loss, net of tax,” “tangible common book value per share, excluding accumulated other comprehensive loss, net of tax,” “tangible common equity to tangible assets,” “non-interest expense excluding other intangible assets amortization,” “efficiency ratio excluding other intangible assets amortization,” “net income excluding the impact of other intangible assets amortization expense, after tax,” “pre-provision net revenue,” and “fully taxable equivalent” metrics, are supplemental measures that are not required by, or are not presented in accordance with, U.S. generally accepted accounting principles (GAAP). We refer to these financial measures and ratios as “non-GAAP financial measures.” We consider the use of select non-GAAP financial measures and ratios to be useful for financial and operational decision making and useful in evaluating period-to-period comparisons. We believe that these non-GAAP financial measures provide meaningful supplemental information regarding our performance by excluding certain expenditures or assets that we believe are not indicative of our primary business operating results or by presenting certain metrics on a fully taxable equivalent basis. We believe that management and investors benefit from referring to these non-GAAP financial measures in assessing our performance and when planning, forecasting, analyzing and comparing past, present and future periods.

These non-GAAP financial measures should not be considered a substitute for financial information presented in accordance with GAAP and you should not rely on non-GAAP financial measures alone as measures of our performance. The non-GAAP financial measures we present may differ from non-GAAP financial measures used by our peers or other companies. We compensate for these limitations by providing the equivalent GAAP measures whenever we present the non-GAAP financial measures and by including a reconciliation of the impact of the components adjusted for in the non-GAAP financial measure so that both measures and the individual components may be considered when analyzing our performance. A reconciliation of non-GAAP financial measures to the comparable GAAP financial measures is included at the end of the financial statement tables.

Forward-Looking Statements
This press release contains “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements contain words such as “anticipate,” “believe,” “can,” “would,” “should,” “could,” “may,” “predict,” “seek,” “potential,” “will,” “estimate,” “target,” “plan,” “project,” “continuing,” “ongoing,” “expect,” “intend” or similar expressions that relate to the Company’s strategy, plans or intentions. Forward-looking statements involve certain important risks, uncertainties and other factors, any of which could cause actual results to differ materially from those in such statements. Such factors include, without limitation, the “Risk Factors” referenced in our most recent Form 10-K filed with the Securities and Exchange Commission (SEC), other risks and uncertainties listed from time to time in our reports and documents filed with the SEC, and the following factors: the impact of potential regulatory changes to capital requirements, treatment of investment securities and FDIC deposit insurance levels and costs; our ability to execute our business strategy, including our digital strategy, as well as changes in our business strategy or development plans; business and economic conditions; effects of any potential government shutdowns; economic, market, operational, liquidity, credit and interest rate risks associated with the Company’s business, including increased competition for deposits due to prevailing market interest rates and banking sector volatility; effects of any changes in trade, monetary and fiscal policies and laws, including the interest rate policies of the Federal Reserve Board; changes imposed by regulatory agencies to increase capital standards; effects of inflation, as well as interest rate, securities market and monetary supply fluctuations; changes in the economy or supply-demand imbalances affecting local real estate values; changes in consumer spending, borrowings and savings habits; changes in the fair value of our investment securities due to market conditions outside of our control; financial or reputational impacts associated with the increased prevalence of fraud or other financial crimes; with respect to our mortgage business, the inability to negotiate fees with investors for the purchase of our loans or our obligation to indemnify purchasers or repurchase related loans if the loans fail to meet certain criteria, or higher rate of delinquencies and defaults as a result of the geographic concentration of our servicing portfolio; the Company’s ability to identify potential candidates for, obtain regulatory approval for, and consummate, integrate and realize operating efficiencies from, acquisitions, consolidations and other expansion opportunities; our ability to integrate acquisitions or consolidations and to achieve synergies, operating efficiencies and/or other expected benefits within expected timeframes, or at all, or within expected cost projections, and to preserve the goodwill of acquired financial institutions; the Company’s ability to realize anticipated benefits from enhancements or updates to its core operating systems from time to time without significant change in client service or risk to the Company’s control environment; the Company’s dependence on information technology and telecommunications systems of third-party service providers and the risk of systems failures, interruptions or breaches of security, including those that could result in disclosure or misuse of confidential or proprietary client or other information; the Company’s ability to achieve organic loan and deposit growth and the competition for, and composition of, such growth; changes in sources and uses of funds; increased competition in the financial services industry; regulatory and financial impacts associated with the Company growing to over $10 billion in consolidated assets; increases in claims and litigation related to our fiduciary responsibilities in connection with our trust and wealth management business; the effect of changes in accounting policies and practices as may be adopted by the regulatory agencies, as well as the Public Company Accounting Oversight Board, the Financial Accounting Standards Board (“FASB”) and other accounting standard setters; the share price of the Company’s stock; the Company’s ability to realize deferred tax assets or the need for a valuation allowance, or the effects of changes in tax laws on our deferred tax assets; the effects of tax legislation, including the potential of future increases to prevailing tax rules, or challenges to our positions; continued consolidation in the financial services industry; ability to maintain or increase market share and control expenses; costs and effects of changes in laws and regulations and of other legal and regulatory developments, including, but not limited to, changes in regulation that affect the fees that we charge, the resolution of legal proceedings or regulatory or other government inquiries, and the results of regulatory examinations, reviews or other inquiries, and changes in regulations that apply to us as a Colorado state-chartered bank and a Wyoming state-chartered bank; technological changes, including with respect to the advancement of artificial intelligence; the timely development and acceptance of new products and services, including in the digital technology space our digital solution 2UniFi; changes in our management personnel and the Company’s continued ability to attract, hire and maintain qualified personnel; ability to implement and/or improve operational management and other internal risk controls and processes and reporting system and procedures; regulatory limitations on dividends from our bank subsidiaries; changes in estimates of future credit reserve requirements based upon the periodic review thereof under relevant regulatory and accounting requirements; financial, reputational, or strategic risks associated with our investments in financial technology companies and initiatives; widespread natural and other disasters, pandemics, dislocations, political instability, acts of war or terrorist activities, cyberattacks or international hostilities through impacts on the economy and financial markets generally or on us or our counterparties specifically; a cybersecurity incident, data breach or a failure of a key information technology system; impact of reputational risk; other risks and uncertainties listed from time to time in the Company’s reports and documents filed with the Securities and Exchange Commission; and success at managing the risks involved in the foregoing items. The Company can give no assurance that any goal or plan or expectation set forth in forward-looking statements can be achieved and readers are cautioned not to place undue reliance on such statements. The forward-looking statements are made as of the date of this press release, and the Company does not intend, and assumes no obligation, to update any forward-looking statement to reflect events or circumstances after the date on which the statement is made or to reflect the occurrence of unanticipated events or circumstances, except as required by applicable law.

Contacts:
Analysts/Institutional Investors:
Emily Gooden, Chief Accounting Officer and Investor Relations Director, (720) 554-6640, ir@nationalbankholdings.com
Nicole Van Denabeele, Chief Financial Officer, (720) 529-3370, ir@nationalbankholdings.com

Media:
Jody Soper, Chief Marketing Officer, (303) 784-5925, Jody.Soper@nbhbank.com

NATIONAL BANK HOLDINGS CORPORATION
FINANCIAL SUMMARY
Consolidated Statements of Operations (Unaudited)
(Dollars in thousands, except share and per share data)


	For the three months ended						For the nine months ended
	September 30,		June 30,		September 30,		September 30,		September 30,
	2024		2024		2023		2024		2023
Total interest and dividend income	$	138,003	$	132,447	$	126,110	$	402,182	$	360,712
Total interest expense		50,350		48,873		38,333		146,925		88,262
Net interest income		87,653		83,574		87,777		255,257		272,450
Taxable equivalent adjustment		1,816		1,711		1,575		5,220		4,432
Net interest income FTE⁽¹⁾		89,469		85,285		89,352		260,477		276,882
Provision expense for credit losses		2,000		2,776		1,125		4,776		3,725
Net interest income after provision for credit losses FTE⁽¹⁾		87,469		82,509		88,227		255,701		273,157
Non-interest income:
Service charges		4,912		4,295		4,849		13,598		13,394
Bank card fees		4,832		4,882		4,993		14,292		14,721
Mortgage banking income		2,981		3,296		4,688		8,932		11,614
Other non-interest income		5,664		1,556		4,835		13,290		8,124
Total non-interest income		18,389		14,029		19,365		50,112		47,853
Non-interest expense:
Salaries and benefits		37,331		36,933		35,027		110,784		103,231
Occupancy and equipment		9,697		10,120		9,167		29,758		27,366
Professional fees		2,111		1,706		2,215		5,463		7,951
Data processing		4,398		4,117		3,546		12,581		10,257
Other non-interest expense		8,648		8,222		8,640		25,523		25,693
Other intangible assets amortization		1,977		1,977		2,008		5,962		5,378
Total non-interest expense		64,162		63,075		60,603		190,071		179,876

Income before income taxes FTE⁽¹⁾		41,696		33,463		46,989		115,742		141,134
Taxable equivalent adjustment		1,816		1,711		1,575		5,220		4,432
Income before income taxes		39,880		31,752		45,414		110,522		136,702
Income tax expense		6,775		5,617		9,327		19,891		27,775
Net income	$	33,105	$	26,135	$	36,087	$	90,631	$	108,927
Earnings per share – basic	$	0.86	$	0.68	$	0.95	$	2.37	$	2.87
Earnings per share – diluted		0.86		0.68		0.94		2.36		2.85

(1	)		Net interest income is presented on a GAAP basis and fully taxable equivalent (FTE) basis, as the Company believes this non-GAAP measure is the preferred industry measurement for this item. The FTE adjustment is for the tax benefit on certain tax exempt loans using the federal tax rate of 21% for each period presented.

NATIONAL BANK HOLDINGS CORPORATION
Consolidated Statements of Financial Condition (Unaudited)
(Dollars in thousands, except share and per share data)


	September 30, 2024			June 30, 2024			December 31, 2023			September 30, 2023
ASSETS
Cash and cash equivalents	$	180,796		$	144,993		$	190,826		$	291,291
Investment securities available-for-sale		708,987			691,076			628,829			620,445
Investment securities held-to-maturity		538,157			554,686			585,052			600,501
Non-marketable securities		72,353			72,987			90,477			87,817
Loans		7,714,495			7,722,153			7,698,758			7,478,438
Allowance for credit losses		(95,047	)		(96,457	)		(97,947	)		(93,446	)
Loans, net		7,619,448			7,625,696			7,600,811			7,384,992
Loans held for sale		16,765			18,787			18,854			19,048
Other real estate owned		1,432			1,526			4,088			3,416
Premises and equipment, net		191,889			177,456			162,733			153,553
Goodwill		306,043			306,043			306,043			306,043
Intangible assets, net		60,390			62,356			66,025			68,283
Other assets		297,023			315,245			297,326			330,894
Total assets	$	9,993,283		$	9,970,851		$	9,951,064		$	9,866,283
LIABILITIES AND SHAREHOLDERS’ EQUITY
Liabilities:
Non-interest bearing demand deposits	$	2,268,801		$	2,229,432		$	2,361,367		$	2,483,174
Interest bearing demand deposits		1,407,667			1,420,942			1,480,042			1,358,445
Savings and money market		3,768,211			3,703,810			3,367,012			3,314,895
Total transaction deposits		7,444,679			7,354,184			7,208,421			7,156,514
Time deposits		1,052,449			1,022,741			981,970			992,494
Total deposits		8,497,128			8,376,925			8,190,391			8,149,008
Securities sold under agreements to repurchase		19,517			19,465			19,627			20,273
Long-term debt		54,433			54,356			54,200			54,123
Federal Home Loan Bank advances		—			35,000			340,000			316,770
Other liabilities		130,208			237,461			134,039			162,524
Total liabilities		8,701,286			8,723,207			8,738,257			8,702,698
Shareholders’ equity:
Common stock		515			515			515			515
Additional paid in capital		1,164,395			1,161,804			1,162,269			1,160,706
Retained earnings		491,849			469,630			433,126			410,243
Treasury stock		(302,277	)		(303,880	)		(306,702	)		(307,026	)
Accumulated other comprehensive loss, net of tax		(62,485	)		(80,425	)		(76,401	)		(100,853	)
Total shareholders’ equity		1,291,997			1,247,644			1,212,807			1,163,585
Total liabilities and shareholders’ equity	$	9,993,283		$	9,970,851		$	9,951,064		$	9,866,283
SHARE DATA
Average basic shares outstanding		38,277,042			38,210,869			38,013,791			37,990,659
Average diluted shares outstanding		38,495,091			38,372,777			38,162,538			38,134,338
Ending shares outstanding		37,988,364			37,899,453			37,784,851			37,739,776
Common book value per share	$	34.01		$	32.92		$	32.10		$	30.83
Tangible common book value per share⁽¹⁾ (non-GAAP)		24.91			23.74			22.77			21.43
Tangible common book value per share, excluding accumulated other comprehensive loss⁽¹⁾ (non-GAAP)		26.56			25.86			24.79			24.10
CAPITAL RATIOS
Average equity to average assets		12.80	%		12.57	%		11.97	%		11.93	%
Tangible common equity to tangible assets⁽¹⁾		9.81	%		9.35	%		8.96	%		8.50	%
Tier 1 leverage ratio		10.44	%		10.20	%		9.74	%		9.56	%
Common equity tier 1 risk-based capital ratio		12.88	%		12.41	%		11.89	%		11.61	%
Tier 1 risk-based capital ratio		12.88	%		12.41	%		11.89	%		11.61	%
Total risk-based capital ratio		14.79	%		14.32	%		13.80	%		13.49	%

(1	)		Represents a non-GAAP financial measure. See non-GAAP reconciliations below.

NATIONAL BANK HOLDINGS CORPORATION
Loan Portfolio
(Dollars in thousands)

Period End Loan Balances by Type


					September 30, 2024				September 30, 2024
					vs. June 30, 2024				vs. September 30, 2023
	September 30, 2024		June 30, 2024		% Change		September 30, 2023		% Change
Originated:
Commercial:
Commercial and industrial	$	1,894,830	$	1,906,095	(0.6	)%	$	1,784,188	6.2	%
Municipal and non-profit		1,096,843		1,063,706	3.1	%		1,012,967	8.3	%
Owner-occupied commercial real estate		949,330		921,122	3.1	%		827,679	14.7	%
Food and agribusiness		257,743		248,401	3.8	%		258,609	(0.3	)%
Total commercial		4,198,746		4,139,324	1.4	%		3,883,443	8.1	%
Commercial real estate non-owner occupied		1,113,796		1,116,424	(0.2	)%		1,026,133	8.5	%
Residential real estate		933,644		923,313	1.1	%		897,804	4.0	%
Consumer		13,600		14,385	(5.5	)%		16,700	(18.6	)%
Total originated		6,259,786		6,193,446	1.1	%		5,824,080	7.5	%

Acquired:
Commercial:
Commercial and industrial		116,683		124,104	(6.0	)%		156,012	(25.2	)%
Municipal and non-profit		282		288	(2.1	)%		305	(7.5	)%
Owner-occupied commercial real estate		221,928		232,890	(4.7	)%		247,701	(10.4	)%
Food and agribusiness		43,733		48,061	(9.0	)%		61,551	(28.9	)%
Total commercial		382,626		405,343	(5.6	)%		465,569	(17.8	)%
Commercial real estate non-owner occupied		720,384		752,040	(4.2	)%		787,926	(8.6	)%
Residential real estate		349,916		369,003	(5.2	)%		398,187	(12.1	)%
Consumer		1,783		2,321	(23.2	)%		2,676	(33.4	)%
Total acquired		1,454,709		1,528,707	(4.8	)%		1,654,358	(12.1	)%
Total loans	$	7,714,495	$	7,722,153	(0.1	)%	$	7,478,438	3.2	%

Loan Fundings⁽¹⁾


	Third quarter		Second quarter		First quarter			Fourth quarter		Third quarter
	2024		2024		2024			2023		2023
Commercial:
Commercial and industrial	$	93,711	$	241,910	$	53,978		$	135,954	$	89,297
Municipal and non-profit		35,677		28,785		14,564			79,650		18,657
Owner occupied commercial real estate		70,517		102,615		35,128			75,631		67,322
Food and agribusiness		19,205		11,040		(7,204	)		10,646		16,191
Total commercial		219,110		384,350		96,466			301,881		191,467
Commercial real estate non-owner occupied		91,809		83,184		73,789			107,738		88,434
Residential real estate		47,322		36,124		29,468			48,925		42,514
Consumer		1,010		1,547		234			1,849		1,689
Total	$	359,251	$	505,205	$	199,957		$	460,393	$	324,104

(1	)		Loan fundings are defined as closed end funded loans and net fundings under revolving lines of credit. Net fundings (paydowns) under revolving lines of credit were $16,302, $19,281, ($59,523), $16,954 and ($12,877) for the periods noted in the table above, respectively.

NATIONAL BANK HOLDINGS CORPORATION
Summary of Net Interest Margin
(Dollars in thousands)


	For the three months ended								For the three months ended								For the three months ended
	September 30, 2024								June 30, 2024								September 30, 2023
	Average					Average			Average					Average			Average					Average
	balance			Interest		rate			balance			Interest		rate			balance			Interest		rate
Interest earning assets:
Originated loans FTE⁽¹⁾⁽²⁾	$	6,251,827		$	108,403		6.90	%	$	6,074,199		$	101,794		6.74	%	$	5,803,157		$	92,813		6.35	%
Acquired loans		1,487,002			22,660		6.06	%		1,541,576			23,464		6.12	%		1,671,595			26,115		6.20	%
Loans held for sale		18,078			319		7.02	%		16,862			318		7.59	%		22,154			383		6.86	%
Investment securities available-for-sale		790,268			5,132		2.60	%		802,830			5,101		2.54	%		761,892			3,783		1.99	%
Investment securities held-to-maturity		548,120			2,344		1.71	%		564,818			2,419		1.71	%		611,712			2,685		1.76	%
Other securities		26,213			405		6.18	%		25,093			377		6.01	%		39,115			701		7.17	%
Interest earning deposits		70,946			556		3.12	%		92,388			685		2.98	%		130,239			1,205		3.67	%
Total interest earning assets FTE⁽²⁾	$	9,192,454		$	139,819		6.05	%	$	9,117,766		$	134,158		5.92	%	$	9,039,864		$	127,685		5.60	%
Cash and due from banks	$	86,887							$	100,165							$	104,308
Other assets		777,758								771,475								737,568
Allowance for credit losses		(96,369	)							(97,741	)							(92,831	)
Total assets	$	9,960,730							$	9,891,665							$	9,788,909
Interest bearing liabilities:
Interest bearing demand, savings and money market deposits	$	5,134,650		$	40,146		3.11	%	$	5,109,924		$	39,681		3.12	%	$	4,535,183		$	27,211		2.38	%
Time deposits		1,039,563			9,220		3.53	%		1,015,371			8,536		3.38	%		992,755			6,212		2.48	%
Securities sold under agreements to repurchase		17,146			5		0.12	%		17,449			5		0.12	%		19,288			6		0.12	%
Long-term debt		54,383			519		3.80	%		54,307			518		3.84	%		54,074			519		3.81	%
Federal Home Loan Bank advances		32,641			460		5.61	%		9,505			133		5.63	%		316,723			4,385		5.49	%
Total interest bearing liabilities	$	6,278,383		$	50,350		3.19	%	$	6,206,556		$	48,873		3.17	%	$	5,918,023		$	38,333		2.57	%
Demand deposits	$	2,226,807							$	2,254,454							$	2,553,619
Other liabilities		180,667								187,499								149,068
Total liabilities		8,685,857								8,648,509								8,620,710
Shareholders’ equity		1,274,873								1,243,156								1,168,199
Total liabilities and shareholders’ equity	$	9,960,730							$	9,891,665							$	9,788,909
Net interest income FTE⁽²⁾				$	89,469							$	85,285							$	89,352
Interest rate spread FTE⁽²⁾							2.86	%							2.75	%							3.03	%
Net interest earning assets	$	2,914,071							$	2,911,210							$	3,121,841
Net interest margin FTE⁽²⁾							3.87	%							3.76	%							3.92	%
Average transaction deposits	$	7,361,457							$	7,364,378							$	7,088,802
Average total deposits		8,401,020								8,379,749								8,081,557
Ratio of average interest earning assets to average interest bearing liabilities		146.41	%							146.91	%							152.75	%

(1	)	Originated loans are net of deferred loan fees, less costs, which are included in interest income over the life of the loan.
(2	)	Presented on a fully taxable equivalent basis using the statutory tax rate of 21%. The tax equivalent adjustments included above are $1,816, $1,711 and $1,575 for the three months ended September 30, 2024, June 30, 2024 and September 30, 2023, respectively.

NATIONAL BANK HOLDINGS CORPORATION
Summary of Net Interest Margin
(Dollars in thousands)


	For the nine months ended September 30, 2024							For the nine months ended September 30, 2023
	Average					Average		Average					Average
	balance			Interest		rate		balance			Interest		rate
Interest earning assets:
Originated loans FTE⁽¹⁾⁽²⁾	$	6,124,757		$	311,112	6.79	%	$	5,656,309		$	258,528	6.11	%
Acquired loans		1,546,482			70,413	6.08	%		1,718,523			79,526	6.19	%
Loans held for sale		15,661			862	7.35	%		23,494			1,189	6.77	%
Investment securities available-for-sale		781,454			14,336	2.45	%		786,087			11,655	1.98	%
Investment securities held-to-maturity		563,975			7,277	1.72	%		629,507			8,364	1.77	%
Other securities		28,771			1,398	6.48	%		46,480			2,513	7.21	%
Interest earning deposits		84,920			2,004	3.15	%		120,633			3,369	3.73	%
Total interest earning assets FTE⁽²⁾	$	9,146,020		$	407,402	5.95	%	$	8,981,033		$	365,144	5.44	%
Cash and due from banks	$	96,510						$	110,902
Other assets		768,521							724,305
Allowance for credit losses		(97,327	)						(91,110	)
Total assets	$	9,913,724						$	9,725,130
Interest bearing liabilities:
Interest bearing demand, savings and money market deposits	$	5,064,386		$	116,240	3.07	%	$	4,197,603		$	55,070	1.75	%
Time deposits		1,015,081			25,340	3.33	%		965,750			14,545	2.01	%
Securities sold under agreements to repurchase		17,839			16	0.12	%		19,863			17	0.11	%
Long-term debt		54,307			1,555	3.82	%		53,997			1,555	3.85	%
Federal Home Loan Bank advances		89,918			3,774	5.61	%		449,060			17,075	5.08	%
Total interest bearing liabilities	$	6,241,531		$	146,925	3.14	%	$	5,686,273		$	88,262	2.08	%
Demand deposits	$	2,253,986						$	2,751,537
Other liabilities		170,005							141,110
Total liabilities		8,665,522							8,578,920
Shareholders’ equity		1,248,202							1,146,210
Total liabilities and shareholders’ equity	$	9,913,724						$	9,725,130
Net interest income FTE⁽²⁾				$	260,477						$	276,882
Interest rate spread FTE⁽²⁾						2.81	%						3.36	%
Net interest earning assets	$	2,904,489						$	3,294,760
Net interest margin FTE⁽²⁾						3.80	%						4.12	%
Average transaction deposits	$	7,318,372						$	6,949,140
Average total deposits		8,333,453							7,914,890
Ratio of average interest earning assets to average interest bearing liabilities		146.53	%						157.94	%

(1	)	Originated loans are net of deferred loan fees, less costs, which are included in interest income over the life of the loan.
(2	)	Presented on a fully taxable equivalent basis using the statutory tax rate of 21%. The tax equivalent adjustments included above are $5,220 and $4,432 for the nine months ended September 30, 2024 and September 30, 2023, respectively.

NATIONAL BANK HOLDINGS CORPORATION
Allowance for Credit Losses and Asset Quality
(Dollars in thousands)

Allowance for Credit Losses Analysis


	As of and for the three months ended
	September 30, 2024			June 30, 2024			September 30, 2023
Beginning allowance for credit losses	$	96,457		$	97,607		$	92,581
Charge-offs		(3,505	)		(4,605	)		(540	)
Recoveries		95			499			280
Provision expense for credit losses		2,000			2,956			1,125
Ending allowance for credit losses (“ACL”)	$	95,047		$	96,457		$	93,446
Ratio of annualized net charge-offs to average total loans during the period		0.18	%		0.22	%		0.01	%
Ratio of ACL to total loans outstanding at period end		1.23	%		1.25	%		1.25	%
Ratio of ACL to total non-performing loans at period end		403.68	%		370.18	%		281.36	%
Total loans	$	7,714,495		$	7,722,153		$	7,478,438
Average total loans during the period		7,714,765			7,582,506			7,443,869
Total non-performing loans		23,545			26,057			33,212

Past Due and Non-accrual Loans


	September 30, 2024			June 30, 2024			September 30, 2023
Loans 30-89 days past due and still accruing interest	$	31,253		$	27,159		$	8,144
Loans 90 days past due and still accruing interest		9,509			3,498			154
Non-accrual loans		23,545			26,057			33,212
Total past due and non-accrual loans	$	64,307		$	56,714		$	41,510
Total 90 days past due and still accruing interest and non-accrual loans to total loans		0.43	%		0.38	%		0.45	%

Asset Quality Data


	September 30, 2024			June 30, 2024			September 30, 2023
Non-performing loans	$	23,545		$	26,057		$	33,212
OREO		1,432			1,526			3,416
Total non-performing assets	$	24,977		$	27,583		$	36,628
Total non-performing loans to total loans		0.31	%		0.34	%		0.44	%
Total non-performing assets to total loans and OREO		0.32	%		0.36	%		0.49	%

NATIONAL BANK HOLDINGS CORPORATION
Key Metrics⁽¹⁾


	As of and for the three months ended									As of and for the nine months ended
	September 30,			June 30,			September 30,			September 30,			September 30,
	2024			2024			2023			2024			2023
Return on average assets		1.32	%		1.06	%		1.46	%		1.22	%		1.50	%
Return on average tangible assets⁽²⁾		1.43	%		1.17	%		1.58	%		1.33	%		1.61	%
Return on average equity		10.33	%		8.46	%		12.26	%		9.70	%		12.71	%
Return on average tangible common equity⁽²⁾		14.84	%		12.44	%		18.38	%		14.14	%		18.81	%
Loan to deposit ratio (end of period)		90.79	%		92.18	%		91.77	%		90.79	%		91.77	%
Non-interest bearing deposits to total deposits (end of period)		26.70	%		26.61	%		30.47	%		26.70	%		30.47	%
Net interest margin⁽³⁾		3.79	%		3.69	%		3.85	%		3.73	%		4.06	%
Net interest margin FTE⁽²⁾⁽³⁾		3.87	%		3.76	%		3.92	%		3.80	%		4.12	%
Interest rate spread FTE⁽⁴⁾		2.86	%		2.75	%		3.03	%		2.81	%		3.36	%
Yield on earning assets⁽⁵⁾		5.97	%		5.84	%		5.53	%		5.87	%		5.37	%
Yield on earning assets FTE⁽²⁾⁽⁵⁾		6.05	%		5.92	%		5.60	%		5.95	%		5.44	%
Cost of interest bearing liabilities		3.19	%		3.17	%		2.57	%		3.14	%		2.08	%
Cost of deposits		2.34	%		2.31	%		1.64	%		2.27	%		1.18	%
Non-interest income to total revenue FTE⁽⁹⁾		17.05	%		14.13	%		17.81	%		16.13	%		14.74	%
Non-interest expense to average assets		2.56	%		2.56	%		2.46	%		2.56	%		2.47	%
Efficiency ratio		60.51	%		64.62	%		56.56	%		62.24	%		56.16	%
Efficiency ratio excluding other intangible assets amortization FTE⁽²⁾		57.65	%		61.52	%		53.90	%		59.28	%		53.74	%
Pre-provision net revenue	$	41,880		$	34,528		$	46,539		$	115,298		$	140,427
Pre-provision net revenue FTE⁽²⁾		43,696			36,239			48,114			120,518			144,859

Total Loans Asset Quality Data^(6)(7)(8)
Non-performing loans to total loans		0.31	%		0.34	%		0.44	%		0.31	%		0.44	%
Non-performing assets to total loans and OREO		0.32	%		0.36	%		0.49	%		0.32	%		0.49	%
Allowance for credit losses to total loans		1.23	%		1.25	%		1.25	%		1.23	%		1.33	%
Allowance for credit losses to non-performing loans		403.68	%		370.18	%		281.36	%		403.68	%		281.36	%
Net charge-offs to average loans		0.18	%		0.22	%		0.01	%		0.13	%		0.02	%

(1	)	Ratios are annualized.
(2	)	Ratio represents non-GAAP financial measure. See non-GAAP reconciliations below.
(3	)	Net interest margin represents net interest income, including accretion income on interest earning assets, as a percentage of average interest earning assets.
(4	)	Interest rate spread represents the difference between the weighted average yield on interest earning assets, including FTE income, and the weighted average cost of interest bearing liabilities. Ratio represents a non-GAAP financial measure.
(5	)	Interest earning assets include assets that earn interest/accretion or dividends. Any market value adjustments on investment securities or loans are excluded from interest earning assets.
(6	)	Non-performing loans consist of non-accruing loans and modified loans on non-accrual.
(7	)	Non-performing assets include non-performing loans and other real estate owned.
(8	)	Total loans are net of unearned discounts and fees.
(9	)	Non-interest income to total revenue represents non-interest income divided by the sum of net interest income FTE and non-interest income. Ratio represents a non-GAAP financial measure.

NATIONAL BANK HOLDINGS CORPORATION
NON-GAAP FINANCIAL MEASURES AND RECONCILIATIONS
(Dollars in thousands, except share and per share data)

Tangible Common Book Value Ratios


	September 30, 2024			June 30, 2024			December 31, 2023			September 30, 2023
Total shareholders’ equity	$	1,291,997		$	1,247,644		$	1,212,807		$	1,163,585
Less: goodwill and other intangible assets, net		(358,754	)		(360,732	)		(364,716	)		(366,724	)
Add: deferred tax liability related to goodwill		13,203			12,871			12,208			11,876
Tangible common equity (non-GAAP)	$	946,446		$	899,783		$	860,299		$	808,737

Total assets	$	9,993,283		$	9,970,851		$	9,951,064		$	9,866,283
Less: goodwill and other intangible assets, net		(358,754	)		(360,732	)		(364,716	)		(366,724	)
Add: deferred tax liability related to goodwill		13,203			12,871			12,208			11,876
Tangible assets (non-GAAP)	$	9,647,732		$	9,622,990		$	9,598,556		$	9,511,435

Tangible common equity to tangible assets calculations:
Total shareholders’ equity to total assets		12.93	%		12.51	%		12.19	%		11.79	%
Less: impact of goodwill and other intangible assets, net		(3.12	)%		(3.16	)%		(3.23	)%		(3.29	)%
Tangible common equity to tangible assets (non-GAAP)		9.81	%		9.35	%		8.96	%		8.50	%

Tangible common book value per share calculations:
Tangible common equity (non-GAAP)	$	946,446		$	899,783		$	860,299		$	808,737
Divided by: ending shares outstanding		37,988,364			37,899,453			37,784,851			37,739,776
Tangible common book value per share (non-GAAP)	$	24.91		$	23.74		$	22.77		$	21.43

Tangible common book value per share, excluding accumulated other comprehensive loss calculations:
Tangible common equity (non-GAAP)	$	946,446		$	899,783		$	860,299		$	808,737
Accumulated other comprehensive loss, net of tax		62,485			80,425			76,401			100,853
Tangible common book value, excluding accumulated other comprehensive loss, net of tax (non-GAAP)		1,008,931			980,208			936,700			909,590
Divided by: ending shares outstanding		37,988,364			37,899,453			37,784,851			37,739,776
Tangible common book value per share, excluding accumulated other comprehensive loss, net of tax (non-GAAP)	$	26.56		$	25.86		$	24.79		$	24.10

NATIONAL BANK HOLDINGS CORPORATION
(Dollars in thousands, except share and per share data)
Return on Average Tangible Assets and Return on Average Tangible Equity


	As of and for the three months ended									As of and for the nine months ended
	September 30,			June 30,			September 30,			September 30,			September 30,
	2024			2024			2023			2024			2023
Net income	$	33,105		$	26,135		$	36,087		$	90,631		$	108,927
Add: impact of other intangible assets amortization expense, after tax		1,517			1,516			1,541			4,575			4,128
Net income excluding the impact of other intangible assets amortization expense, after tax (non-GAAP)	$	34,622		$	27,651		$	37,628		$	95,206		$	113,055

Average assets	$	9,960,730		$	9,891,665		$	9,788,909		$	9,913,724		$	9,725,130
Less: average goodwill and other intangible assets, net of deferred tax liability related to goodwill		(346,757	)		(349,030	)		(356,083	)		(348,717	)		(342,826	)
Average tangible assets (non-GAAP)	$	9,613,973		$	9,542,635		$	9,432,826		$	9,565,007		$	9,382,304

Average shareholders’ equity	$	1,274,873		$	1,243,156		$	1,168,199		$	1,248,202		$	1,146,210
Less: average goodwill and other intangible assets, net of deferred tax liability related to goodwill		(346,757	)		(349,030	)		(356,083	)		(348,717	)		(342,826	)
Average tangible common equity (non-GAAP)	$	928,116		$	894,126		$	812,116		$	899,485		$	803,384

Return on average assets		1.32	%		1.06	%		1.46	%		1.22	%		1.50	%
Return on average tangible assets (non-GAAP)		1.43	%		1.17	%		1.58	%		1.33	%		1.61	%
Return on average equity		10.33	%		8.46	%		12.26	%		9.70	%		12.71	%
Return on average tangible common equity (non-GAAP)		14.84	%		12.44	%		18.38	%		14.14	%		18.81	%

Fully Taxable Equivalent Yield on Earning Assets and Net Interest Margin


	As of and for the three months ended									As of and for the nine months ended
	September 30,			June 30,			September 30,			September 30,			September 30,
	2024			2024			2023			2024			2023
Interest income	$	138,003		$	132,447		$	126,110		$	402,182		$	360,712
Add: impact of taxable equivalent adjustment		1,816			1,711			1,575			5,220			4,432
Interest income FTE (non-GAAP)	$	139,819		$	134,158		$	127,685		$	407,402		$	365,144

Net interest income	$	87,653		$	83,574		$	87,777		$	255,257		$	272,450
Add: impact of taxable equivalent adjustment		1,816			1,711			1,575			5,220			4,432
Net interest income FTE (non-GAAP)	$	89,469		$	85,285		$	89,352		$	260,477		$	276,882

Average earning assets	$	9,192,454		$	9,117,766		$	9,039,864		$	9,146,020		$	8,981,033
Yield on earning assets		5.97	%		5.84	%		5.53	%		5.87	%		5.37	%
Yield on earning assets FTE (non-GAAP)		6.05	%		5.92	%		5.60	%		5.95	%		5.44	%
Net interest margin		3.79	%		3.69	%		3.85	%		3.73	%		4.06	%
Net interest margin FTE (non-GAAP)		3.87	%		3.76	%		3.92	%		3.80	%		4.12	%

Efficiency Ratio and Pre-Provision Net Revenue


	As of and for the three months ended									As of and for the nine months ended
	September 30,			June 30,			September 30,			September 30,			September 30,
	2024			2024			2023			2024			2023
Net interest income	$	87,653		$	83,574		$	87,777		$	255,257		$	272,450
Add: impact of taxable equivalent adjustment		1,816			1,711			1,575			5,220			4,432
Net interest income FTE (non-GAAP)	$	89,469		$	85,285		$	89,352		$	260,477		$	276,882

Non-interest income	$	18,389		$	14,029		$	19,365		$	50,112		$	47,853

Non-interest expense	$	64,162		$	63,075		$	60,603		$	190,071		$	179,876
Less: other intangible assets amortization		(1,977	)		(1,977	)		(2,008	)		(5,962	)		(5,378	)
Non-interest expense excluding other intangible assets amortization (non-GAAP)	$	62,185		$	61,098		$	58,595		$	184,109		$	174,498

Efficiency ratio		60.51	%		64.62	%		56.56	%		62.24	%		56.16	%
Efficiency ratio excluding other intangible assets amortization FTE (non-GAAP)		57.65	%		61.52	%		53.90	%		59.28	%		53.74	%
Pre-provision net revenue (non-GAAP)	$	41,880		$	34,528		$	46,539		$	115,298		$	140,427
Pre-provision net revenue, FTE (non-GAAP)		43,696			36,239			48,114			120,518			144,859

The MIL Network –

January 24, 2025

MIL-OSI: Chemung Financial Corporation Reports Third Quarter 2024 Net Income of $5.7 million, or $1.19 per share

Source: GlobeNewswire (MIL-OSI)

ELMIRA, N.Y., Oct. 22, 2024 (GLOBE NEWSWIRE) — Chemung Financial Corporation (the “Corporation”) (Nasdaq: CHMG), the parent company of Chemung Canal Trust Company (the “Bank”), today reported net income of $5.7 million, or $1.19 per share, for the third quarter of 2024, compared to $5.0 million, or $1.05 per share, for the second quarter of 2024, and $7.6 million, or $1.61 per share, for the third quarter of 2023.

“Our balance sheet is well positioned as we enter into this rate cutting cycle. We are seeing the benefit of higher yielding loans driving interest income, while funding costs continue to moderate,” said Anders M. Tomson, President and CEO of Chemung Financial Corporation. “Strong non-interest income production and a stable credit environment were a welcome addition to an already strong quarter,” Tomson added.

“As we begin operations in our new Williamsville, New York location, we are eager to continue fostering an environment committed to our mission of community-oriented banking, both in Western New York and throughout the Bank’s footprint,” concluded Tomson.

Third Quarter Highlights:

The Corporation opened a full-service branch and regional banking center at 5529 Main Street in Williamsville, New York under the Canal Bank, a division of Chemung Canal Trust Company, name on October 11, 2024.
Tangible equity to tangible assets improved by 66 basis points to 7.22% as of September 30, 2024, compared to prior quarter-end, and 77 basis points compared to December 31, 2023.¹
Cost of interest-bearing liabilities increased by three basis points during the third quarter of 2024, compared to a nine basis points increase during the second quarter of 2024.
Dividends declared during the third quarter 2024 were $0.31 per share.

¹ See the GAAP to Non-GAAP reconciliations.

3rd Quarter 2024 vs 2nd Quarter 2024

Net Interest Income:

Net interest income for the third quarter of 2024 totaled $18.4 million compared to $17.8 million for the prior quarter, an increase of $0.6 million, or 3.4%, driven primarily by increases of $1.1 million in interest income on loans, including fees and $0.1 million in interest income on interest-earning deposits, offset primarily by increases of $0.3 million in interest expense on deposits and $0.1 million in interest expense on borrowed funds, and a decrease of $0.2 million in interest income on taxable securities.

Interest income on loans, including fees, increased primarily due to an increase of 11 basis points in the average yield on commercial loans, compared to the prior quarter. The increase in the average yield on commercial loans was primarily attributable to higher yielding commercial real estate originations during 2024, and the recognition of $0.2 million in interest income on the payoff of a nonaccrual commercial real estate loan. Average balances of commercial loans increased $14.3 million, compared to the prior quarter. Average yields on residential mortgages and consumer loans increased 21 and 15 basis points, respectively, compared to the prior quarter, while average balances of residential mortgages and consumer loans decreased by $0.1 million and $3.8 million, respectively. The increase in interest income on interest-earning deposits was due to an increase of $5.7 million in the average balances of interest- earning deposits, compared to the prior quarter.

Interest expense on deposits increased primarily due to growth in the average balances of customer time deposits of $25.5 million and an increase of five basis points in the average interest rate paid on customer time deposits, compared to the prior quarter. Customer time deposits comprised 23.0% of average total deposits for the three months ended September 30, 2024, compared to 21.9% for the three months ended June 30, 2024. Average balances of brokered deposits decreased $35.3 million, compared to the prior quarter, while the average interest rate paid on brokered deposits was flat quarter over quarter. Average balances of savings and money market deposits increased $10.1 million and average interest rates paid on savings and money market deposits increased nine basis points, compared to the prior quarter. Average balances of total interest-bearing deposits increased $6.1 million and the average interest rate paid on total interest-bearing deposits increased two basis points, compared to the prior quarter. The increase in the average balances and average cost of customer time deposits was primarily due to the continuation of CD campaigns in the current quarter. The increase in the average balances and average cost of savings and money market deposits was primarily due to a shift in the composition of deposits towards higher rate money market accounts and additional seasonal municipal deposits.

The increase in interest expense on borrowed funds was due primarily to an increase in the average cost of total borrowings of four basis points, and an increase in the average balances of borrowed funds of $3.2 million in the current quarter, compared to the prior quarter. The average cost of total borrowings for the current quarter was 5.08%, compared to 5.04% in the prior quarter. Included in average balances of borrowed funds was $30.0 million in FHLB term advances that matured in September 2024. The decrease in interest income on taxable securities was primarily due to lower average balances of SBA pooled loan securities and additional amortization expense on SBA pooled loan securities, both due to paydown activity.

Fully taxable equivalent net interest margin was 2.72% in the current quarter, compared to 2.66% in the prior quarter. Expansion of net interest margin in the current quarter was primarily attributable to an increase of nine basis points in the average yield of total interest-earning assets to 4.78%, offset by an increase of three basis points in the average cost of interest-bearing liabilities to 2.97%, compared to the prior quarter.

Provision for Credit Losses:

Provision for credit losses decreased $0.3 million in the current quarter, compared to the prior quarter. Provisioning in the current quarter was primarily attributable to unfavorable changes in economic forecasts and lower modeled prepayment speeds used in the Bank’s CECL model, as well as lower growth-related provisioning in the current quarter, compared to the prior quarter. Provisioning in the prior quarter included a $0.2 million specific allocation on a commercial and industrial loan.

Non-Interest Income:

Non-interest income for the third quarter of 2024 was $5.9 million, compared to $5.6 million for the prior quarter, an increase of $0.3 million, or 5.4%. The increase was driven primarily by increases of $0.1 million in each of wealth management group fee income, service charges on deposit accounts, change in fair value of equity investments, and gains on sales of loans held for sale.

The increase in wealth management group fee income was primarily attributable to increases in fee rates effective July 1, 2024. The increase in service charges on deposit accounts was primarily attributable to an increase in overdraft transaction volume, compared to the prior quarter. The increase in the change in fair value of equity investments was primarily attributable to an increase in the market value of assets held for the Corporation’s deferred compensation plan, and the increase in gains on sales of loans held for sale was primarily attributable to an increase in the volume of loans sold to the secondary market during the current period, due to an increase in total residential loan originations in the current period.

Non-Interest Expense:

Non-interest expense for the third quarter of 2024 was $16.5 million, compared to $16.2 million for the prior quarter, an increase of $0.3 million, or 1.9%. The increase was driven primarily by increases of $0.3 million each in salaries and wages and data processing expenses, and $0.2 million in other non-interest expense, partially offset by a decrease of $0.5 million in pension and other employee benefits.

The increase in salaries and wages compared to the prior quarter was primarily attributable to additional staffing for the Corporation’s newly established Western New York regional banking center, and expense related to an increase in the market value of assets held for the Corporation’s deferred compensation plan. The increase in data processing expense was primarily attributable to the timing of various vendor credits and rebates, and an increase in card procurement expense. The increase in other non-interest expense was primarily attributable to an increase supplies and postage expense, and an increase in charitable contributions. The decrease in pension and other employee benefits was primarily attributable to lower healthcare related expenses in the current quarter, compared to the prior quarter.

Income Tax Expense:

Income tax expense for the third quarter of 2024 was $1.5 million, compared to $1.3 million for the prior quarter, an increase of $0.2 million. The effective tax rate for the current quarter increased to 20.9% from 20.3% in the prior quarter. The increase in income tax expense was primarily attributable to an increase in pretax income.

3rd Quarter 2024 vs 3rd Quarter 2023

Net Interest Income:

Net interest income for the third quarter of 2024 totaled $18.4 million compared to $18.0 million for the same period in the prior year, an increase of $0.4 million, or 2.2%, driven primarily by increases of $3.6 million in interest income on loans, including fees and $0.3 million in interest income on interest-earning deposits, partially offset by increases of $2.3 million in interest expense on deposits and $0.7 million in interest expense on borrowed funds, and a decrease of $0.5 million in interest income on taxable securities.

Interest income on loans, including fees, increased primarily due to a $134.3 million increase in the average balances of commercial loans and an increase of 36 basis points in the average yield on commercial loans, compared to the same period in the prior year. The increase in average balances of commercial loans consisted of year over year growth in both commercial and industrial and commercial real estate balances, while the increase in the average yield was primarily due to higher origination yields in 2024. Average balances of residential mortgage loans decreased $9.2 million compared to the same period in the prior year due to an increase in sales of new originations to the secondary market, while the average yield on residential mortgage loans increased 36 basis points compared to the same period in the prior year. Average consumer loan balances decreased $13.9 million compared to the same period in the prior year, primarily due to lower indirect auto loan origination activity during the third quarter of 2024 compared to the prior year period, while the average yield on consumer loans increased 60 basis points, primarily due to runoff of older vintage indirect auto loans, replaced by higher yielding new originations. Interest income on interest-earning deposits increased primarily due to a $21.2 million increase in the average balances of interest-earning deposits, compared to the same period in the prior year.

Interest expense on deposits increased primarily due to a 44 basis points increase in the average interest rate paid on total interest-bearing deposits, which included brokered deposits, and an increase of $175.6 million in the average balance of customer interest-bearing deposits. Both the increase in the average interest rate paid and the average balances of customer interest-bearing deposits were primarily attributable to CD campaigns throughout 2024, as well as a general shift in the deposit mix towards higher cost accounts. The average balances of brokered deposits decreased $123.7 million, while the average interest rate paid on brokered deposits increased nine basis points, compared to the same period in the prior year. Average balances of brokered deposits decreased primarily due to the utilization of the Bank Term Funding Program (BTFP) and FHLBNY term advances in the current quarter, which were not utilized in the same period in the prior year, as well as lower growth in loan balances during the current quarter, compared to the same period in the prior year.

The increase in interest expense on borrowed funds was primarily attributable to a $54.8 million increase in the average balances of borrowed funds, partially offset by a decrease of 17 basis points in the average interest rate paid on borrowed funds. Changes in the composition of borrowed funds reflected the Corporation’s shift to the lower cost BTFP, as well as FHLBNY term advances, partially replacing FHLBNY overnight advances in the current quarter, compared to the same period in the prior year. The average balances of FHLBNY overnight advances decreased $17.3 million, while the average interest rate paid on FHLBNY overnight advances decreased 47 basis points, compared to the same period in the prior year. The decrease in interest income on taxable securities was primarily attributable to net paydowns and maturities of available for sale securities between the third quarter of 2023 and the third quarter of 2024 of $54.8 million, and an increase in amortization expense on SBA pooled loan securities, due to paydown activity.

Fully taxable equivalent net interest margin was 2.72% for the third quarter of 2024, compared to 2.73% for the same period in the prior year. The average cost of interest-bearing liabilities increased 50 basis points to 2.97%, and the average balances of interest-bearing liabilities increased $106.7 million, compared to the same period in the prior year. The average yield on interest-earning assets increased 38 basis points to 4.78%, and the average balances of interest- earning assets increased $73.0 million, compared to the same period in the prior year.

Provision for Credit Losses:

Provision for credit losses increased $0.1 million for the third quarter of 2024, compared to the same period in the prior year. The increase was primarily attributable to unfavorable changes in FOMC forecasts in the third quarter of 2024, compared to favorable changes to forecasts in the third quarter of 2023, as well as a decline in modeled prepayment speeds. This increase was partially offset by a decrease of $0.3 million in net charge offs in the third quarter of 2024, compared to the third quarter of 2023.

Non-Interest Income:

Non-interest income for the third quarter of 2024 was $5.9 million compared to $7.8 million for the same period in the prior year, a decrease of $1.9 million, or 24.4%. The decrease was primarily driven by a decrease of $2.5 million in other non-interest income, partially offset by increases of $0.5 million in wealth management group fee income and $0.2 million in the change in fair value of equity investments. The decrease in other non-interest income was primarily attributable to the recognition of the employee retention tax credit (ERTC) in the third quarter of 2023. The increase in wealth management group fee income was primarily attributable to an increase in the market value of total assets under management or administration and fee rate increases effective in the third quarter of 2024, while the increase in the change in fair value of equity investments was primarily attributable to an increase in the value of assets held for the Corporation’s deferred compensation plan.

Non-Interest Expense:

Non-interest expense for the third quarter of 2024 was $16.5 million compared to $15.7 million for the same period in the prior year, an increase of $0.8 million, or 5.1%. The increase was primarily driven by increases of $0.6 million in salaries and wages and $0.3 million in other non-interest expense, partially offset by a decrease of $0.4 million in pension and other employee benefits.

The increase in salaries and wages was primarily attributable to an increase in salaries, including additional staffing for the Corporation’s newly opened Western New York regional banking center, as well as an increase in the market value of the assets held for the Corporation’s deferred compensation plan. The increase in other non-interest expense was primarily attributable to increases in supplies and postage expense, and losses recognized on the sale of repossessed vehicles in the current quarter, compared to the same period in the prior year. The decrease in pension and other employee benefits was primarily attributable to a decrease in healthcare related expenses in the current quarter, compared to the same period in the prior year.

Income Tax Expense:

Income tax expense for the third quarter of 2024 was $1.5 million compared to $2.1 million for the third quarter of 2023, a decrease of $0.5 million. The effective tax rate for the current quarter was 20.9%, compared to 21.2% for the same period in the prior year. The decrease in income tax expense was primarily attributable to additional income tax expense recognized in the third quarter of 2023 due to filing amended tax returns in relation to the ERTC.

Asset Quality

Non-performing loans totaled $10.5 million as of September 30, 2024, or 0.52% of total loans, compared to $10.4 million, or 0.53% of total loans as of December 31, 2023. The slight increase in non-performing loans was primarily attributable to $3.9 million in commercial loan balances added to nonaccrual during the year, offset by $3.8 million in paydowns and payoffs of existing nonaccrual commercial loan balances during the year. Non-performing assets, which are comprised of non-performing loans, other real estate owned, and repossessed vehicles, were $11.1 million, or 0.40% of total assets as of September 30, 2024, compared to $10.7 million, or 0.40% of total assets as of December 31, 2023. Other real estate owned was $0.5 million and repossessed vehicles was $0.1 million as of September 30, 2024.

Total loan delinquencies as of September 30, 2024 increased compared to December 31, 2023, primarily attributable to increases in residential mortgage and consumer loan delinquency rates during the period. The majority of past due residential mortgage balances were past due between 30-59 days. Commercial loan delinquency rates declined as of September 30, 2024, compared to December 31, 2023. Annualized net charge-offs to total average loans for the third quarter of 2024 were 0.02%, compared to 0.06% for the second quarter of 2024, and 0.04% for the nine months ended September 30, 2024, compared to 0.05% for the nine months ended September 30, 2023. Annualized consumer net charge-offs for the nine months ended September 30, 2024 were 0.31% of average consumer loan balances and 0.18% of average consumer loan balances for the third quarter of 2024, primarily concentrated in indirect auto loans, while commercial loans and residential mortgage loans each had net recovery rates for the nine months ended September 30, 2024 and the third quarter of 2024.

The allowance for credit losses was $21.4 million as of September 30, 2024 and $22.5 million as of December 31, 2023. The allowance for credit losses on unfunded commitments, a component of other liabilities, was $0.8 million as of September 30, 2024 and $0.9 million as of December 31, 2023. The decrease in the allowance for credit losses was primarily attributable to the annual review and update to the loss drivers which the Bank’s CECL model is based upon. Recalibration of loss drivers resulted in a decline in the baseline loss rates which the model utilizes, and were applied beginning in the first quarter of 2024. Partially offsetting these declines were comparatively weaker FOMC projections for economic variables used in the model as of September 30, 2024 compared to as of December 31, 2023, in addition to declines in prepayment speeds between December 31, 2023 and September 30, 2024, and loan growth during 2024.

The allowance for credit losses was 203.33% of non-performing loans as of September 30, 2024 and 216.28% as of December 31, 2023. The allowance for credit losses to total loans was 1.06% as of September 30, 2024 and 1.14% as of December 31, 2023. Provision for credit losses as a percentage of period-end loan balances was 0.03% for the third quarter of 2024.

Balance Sheet Activity

Total assets were $2.774 billion as of September 30, 2024 compared to $2.711 billion as of December 31, 2023, an increase of $63.7 million, or 2.3%. The increase was primarily attributable to increases of $56.3 million in loans, net of deferred origination fees and costs, and $43.6 million in cash and cash equivalents, partially offset by decreases of $30.9 million in total investment securities and $6.9 million in accrued interest receivable and other assets.

The increase in loans, net of deferred origination fees and costs, was concentrated in the commercial loan portfolio, which increased by $76.9 million, or 5.5%, compared to prior year-end. Growth in commercial loans during the current period consisted of growth in both commercial and industrial and commercial real estate balances. Consumer loans decreased by $16.7 million, or 5.4%, primarily driven by lower indirect auto loan origination activity during the current period, and a relatively fast turnover rate in the portfolio. Residential mortgages decreased by $3.9 million, or 1.4%, as the Corporation continued to elect to sell a portion of originations into the secondary market.

The increase in cash and cash equivalents was primarily due to $50.0 million in advances from the Federal Reserve’s BTFP, $41.8 million in paydowns and maturities of available for sale securities, and an increase of $21.7 million in total deposits, primarily offset by an increase of $56.3 million in loans, net of deferred origination fees and costs, and a decrease of $31.9 million in FHLB overnight advances, compared to prior year-end.

Total investment securities decreased primarily due to a decrease of $29.4 million in securities available for sale, compared to prior year-end. Net paydowns and maturities on securities available for sale for the current period totaled $41.8 million, primarily attributable to paydowns on mortgage-backed securities and SBA pooled-loan securities. The market value of securities available for sale increased by $14.7 million, due to favorable changes in interest rates during the current period. The decrease in accrued interest receivable and other assets was primarily due to decreases in interest rate swap assets of $4.2 million, due to a decrease in the market value of swaps, and $3.9 million in deferred tax assets, due to improvements in the market value of the available for sale securities portfolio.

Total liabilities were $2.554 billion as of September 30, 2024 compared to $2.515 billion as of December 31, 2023, an increase of $38.3 million, or 1.5%. The increase in total liabilities was primarily attributable to increases of $18.8 million in advances and other debt and of $21.7 million in deposits, partially offset by a decrease of $2.2 million in accrued interest payable and other liabilities.

Total deposits increased by $21.7 million or 0.9%, compared to prior year-end, primarily driven by increases of $102.8 million in customer time deposits, or 21.9%, and $58.2 million in interest bearing demand deposits, or 20.0%. Partially offsetting these increases were decreases of $103.3 million in brokered deposits, or 72.3%, and $37.0 million in non- interest bearing demand deposits, or 5.7%. Additionally, money market deposits increased by $7.2 million, or 1.1% and savings deposits decreased by $6.2 million, or 2.5%. Non-interest bearing deposits comprised 25.1% and 26.9% of total deposits as of September 30, 2024 and December 31, 2023, respectively.

The increase in advances and other debt was primarily attributable to a $50.0 million advance from the Federal Reserve’s BTFP, and an increase of $0.7 million in finance lease obligations, offset by a decrease of $31.9 million in FHLBNY overnight advances. The decrease in accrued interest payable and other liabilities was primarily due to a decrease in interest rate swap liabilities of $4.8 million, primarily due to a decrease in the market value of swaps, partially offset by increases in interest payable on borrowed funds of $1.7 million and interest payable on deposits of $1.2 million.

Total shareholders’ equity was $220.7 million as of September 30, 2024, compared to $195.2 million as of December 31, 2023, an increase of $25.4 million, or 13.0%, primarily driven by an increase of $13.3 million in retained earnings and a decrease of $10.9 million in accumulated other comprehensive loss. The increase in retained earnings was primarily due to net income of $17.8 million, offset by dividends declared of $4.4 million during the nine months ended September 30, 2024. The decrease in accumulated other comprehensive loss was primarily attributable to the favorable impact of interest rates on available for sale securities during the current period.

The total equity to total assets ratio was 7.95% as of September 30, 2024, compared to 7.20% as of December 31, 2023, and the tangible equity to tangible assets ratio was 7.22% as of September 30, 2024, compared to 6.45% as of December 31, 2023.¹ Book value per share increased to $46.22 as of September 30, 2024 from $41.07 as of December 31, 2023. As of September 30, 2024, the Bank’s capital ratios were in excess of those required to be considered well- capitalized under the regulatory framework for prompt corrective action.

¹ See the GAAP to Non-GAAP reconciliations

Liquidity

The Corporation uses a variety of resources to manage its liquidity, and management believes it has the necessary liquidity to allow for flexibility in meeting its various operational and strategic needs. These include short-term investments, cash flow from lending and investing activities, core-deposit growth and non-core funding sources, such as time deposits of $250,000 or greater, brokered deposits, FHLBNY advances, and Federal Reserve Bank Term Funding Program (BTFP) advances. No new borrowings could be made under the BTFP after March 11, 2024. Borrowings may be used on a short-term basis for liquidity purposes or on a long-term basis to fund asset growth. As of September 30, 2024, the Corporation’s cash and cash equivalents balance was $80.4 million. The Corporation also maintains an investment portfolio of securities available for sale, comprised primarily of US Government treasury securities, SBA loan pools, mortgage-backed securities, and municipal bonds. Although this portfolio generates interest income for the Corporation, it also serves as an available source of liquidity and capital if the need should arise. As of September 30, 2024, the Corporation’s investment in securities available for sale was $554.6 million, $256.1 million of which was not pledged as collateral. Additionally, the Bank’s total advance line capacity at the Federal Home Loan Bank of New York was $224.2 million as of September 30, 2024, all of which was available as of September 30, 2024. In January 2024, the Corporation utilized the BTFP with an advance of $50.0 million, which the Corporation paid off in October 2024, without prepayment penalty.

As of September 30, 2024, uninsured deposits totaled $708.9 million, or 28.9% of total deposits, including $216.2 million of municipal deposits that were collateralized by pledged assets, when appropriate. As of December 31, 2023, uninsured deposits totaled $655.7 million, or 27.0% of total deposits, including $153.2 million of municipal deposits that were collateralized by pledged assets. Due to their fluidity, the Corporation closely monitors uninsured deposit levels when considering liquidity management strategies.

The Corporation considers brokered deposits to be an element of its deposit strategy, and anticipates it may continue utilizing brokered deposits as a secondary source of funding in support of growth. As of September 30, 2024, the Corporation had entered into brokered deposit arrangements with multiple brokers. As of September 30, 2024, brokered deposits carried terms between 2 and 48 months, totaling $39.5 million. Excluding brokered deposits, total deposits increased $125.0 million compared to December 31, 2023, due primarily to ongoing CD campaigns and seasonal inflows associated with municipal deposits.

Other Items

The market value of total assets under management or administration in our Wealth Management Group was $2.316 billion as of September 30, 2024, including $367.8 million of assets under management or administration for the Corporation, compared to $2.242 billion as of December 31, 2023, including $381.3 million of assets under management or administration for the Corporation, an increase of $73.2 million, or 3.3%, due primarily to market improvements during 2024.

As previously announced on January 8, 2021, the Corporation’s Board of Directors approved a stock repurchase program. Under the repurchase program, the Corporation may repurchase up to 250,000 shares of its common stock, or approximately 5% of its then outstanding shares. The repurchase program permits shares to be repurchased in open market or privately negotiated transactions, through block trades, and pursuant to any trading plan that may be adopted in accordance with Rule 10b5-1 of the Securities Exchange Act of 1934. As of September 30, 2024, a total of 49,184 shares of common stock at a total cost of $2.0 million were repurchased by the Corporation under its share repurchase program. No shares were repurchased in the third quarter of 2024. The weighted average cost was $40.42 per share repurchased. Remaining buyback authority under the share repurchase program was 200,816 shares as of September 30, 2024.

The Bank opened a full-service branch and regional banking center at 5529 Main Street in Williamsville, New York on October 11, 2024 under the Canal Bank, a division of Chemung Canal Trust Company, name. The Bank has received regulatory approval to convert its previous branch location in Clarence, New York into an administrative office in support of the Bank’s Western New York operations.

About Chemung Financial Corporation

Chemung Financial Corporation is a $2.8 billion financial services holding company headquartered in Elmira, New York and operates 31 retail offices through its principal subsidiary, Chemung Canal Trust Company, a full service community bank with trust powers. Established in 1833, Chemung Canal Trust Company is the oldest locally-owned and managed community bank in New York State. Chemung Financial Corporation is also the parent of CFS Group, Inc., a financial services subsidiary offering non-traditional services including mutual funds, annuities, brokerage services, tax preparation services, and insurance.

This press release may be found at: http://www.chemungcanal.com under Investor Relations.

Forward-Looking Statements

This press release may contain forward-looking statements within the meaning of Section 27A of the Securities Act and Section 21E of the Securities Exchange Act, and the Private Securities Litigation Reform Act of 1995. The Corporation intends its forward-looking statements to be covered by the safe harbor provisions for forward-looking statements in this press release. All statements regarding the Corporation’s expected financial position and operating results, the Corporation’s business strategy, the Corporation’s financial plans, forecasted demographic and economic trends relating to the Corporation’s industry and similar matters are forward-looking statements. These statements can sometimes be identified by the Corporation’s use of forward-looking words such as “may,” “will,” “anticipate,” “estimate,” “expect,” or “intend.” The Corporation cannot promise that its expectations in such forward-looking statements will turn out to be correct. The Corporation’s actual results could be materially different from expectations because of various factors, including changes in economic conditions or interest rates, credit risk, inflation, cyber security risks, difficulties in managing the Corporation’s growth, competition, changes in law or the regulatory environment, and changes in general business and economic trends.

Information concerning these and other factors, including Risk Factors, can be found in the Corporation’s periodic filings with the Securities and Exchange Commission (“SEC”), including the 2023 Annual Report on Form 10-K. These filings are available publicly on the SEC’s website at http://www.sec.gov, on the Corporation’s website at http://www.chemungcanal.com or upon request from the Corporate Secretary at (607) 737-3746. Except as otherwise required by law, the Corporation undertakes no obligation to publicly update or revise its forward-looking statements, whether as a result of new information, future events, or otherwise.


Chemung Financial Corporation
Consolidated Balance Sheets (Unaudited)
		Sept. 30,				June 30,				March 31,				Dec. 31,				Sept. 30,
(in thousands)		2024				2024				2024				2023				2023
ASSETS
Cash and due from financial institutions		$	36,247			$	23,184			$	22,984			$	22,247			$	52,563
Interest-earning deposits in other financial institutions			44,193				47,033				71,878				14,600				23,017
Total cash and cash equivalents			80,440				70,217				94,862				36,847				75,580

Equity investments			3,244				3,090				3,093				3,046				2,811

Securities available for sale			554,575				550,927				566,028				583,993				569,004
Securities held to maturity			657				657				785				785				1,804
FHLB and FRB stock, at cost			4,189				5,506				4,071				5,498				4,053
Total investment securities			559,421				557,090				570,884				590,276				574,861

Commercial			1,464,205				1,445,258				1,425,437				1,387,321				1,341,017
Mortgage			274,099				271,620				277,246				277,992				281,361
Consumer			290,650				294,594				300,927				307,351				308,310
Loans, net of deferred loan fees			2,028,954				2,011,472				2,003,610				1,972,664				1,930,688
Allowance for credit losses			(21,441	)			(21,031	)			(20,471	)			(22,517	)			(20,252	)
Loans, net			2,007,513				1,990,441				1,983,139				1,950,147				1,910,436

Loans held for sale			—				381				96				—				—
Premises and equipment, net			14,915				14,731				14,183				14,571				15,036
Operating lease right-of-use assets			5,637				5,827				6,018				5,648				5,850
Goodwill			21,824				21,824				21,824				21,824				21,824
Accrued interest receivable and other assets			81,221				92,212				90,791				88,170				101,436
Total assets		$	2,774,215			$	2,755,813			$	2,784,890			$	2,710,529			$	2,707,834

LIABILITIES AND SHAREHOLDERS’ EQUITY
Deposits:
Non-interest-bearing demand deposits		$	616,126			$	619,192			$	656,330			$	653,166			$	683,348
Interest-bearing demand deposits			349,383				328,370				315,154				291,138				310,885
Money market accounts			630,870				613,131				631,350				623,714				626,256
Savings deposits			242,911				248,528				248,578				249,144				261,822
Time deposits			611,831				606,700				629,360				612,265				591,188
Total deposits			2,451,121				2,415,921				2,480,772				2,429,427				2,473,499

Advances and other debt			53,757				83,835				52,979				34,970				3,120
Operating lease liabilities			5,820				6,009				6,197				5,827				6,028
Accrued interest payable and other liabilities			42,863				48,826				47,814				45,064				55,123
Total liabilities			2,553,561				2,554,591				2,587,762				2,515,288				2,537,770

Shareholders’ equity
Common stock			53				53				53				53				53
Additional paid-in capital			48,457				48,102				47,794				47,773				47,974
Retained earnings			243,266				239,021				235,506				229,930				227,596
Treasury stock, at cost			(15,987	)			(16,043	)			(16,147	)			(16,502	)			(16,880	)
Accumulated other comprehensive loss			(55,135	)			(69,911	)			(70,078	)			(66,013	)			(88,679	)
Total shareholders’ equity			220,654				201,222				197,128				195,241				170,064
Total liabilities and shareholders’ equity		$	2,774,215			$	2,755,813			$	2,784,890			$	2,710,529			$	2,707,834

Period-end shares outstanding	4,774				4,772				4,768				4,754				4,738


Chemung Financial Corporation
Consolidated Statements of Income (Unaudited)
	Three Months Ended September 30,						Percent		Nine Months Ended September 30,						Percent
(in thousands, except per share data)		2024			2023		Change			2024			2023		Change
Interest and dividend income:
Loans, including fees	$	28,611		$	25,033		14.3		$	83,323		$	71,113		17.2
Taxable securities		3,060			3,537		(13.5	)		9,868			10,750		(8.2	)
Tax exempt securities		250			258		(3.1	)		762			778		(2.1	)
Interest-earning deposits		441			187		135.8			1,014			400		153.5
Total interest and dividend income		32,362			29,015		11.5			94,967			83,041		14.4

Interest expense:
Deposits		13,005			10,721		21.3			37,861			24,577		54.1
Borrowed funds		969			277		249.8			2,868			1,905		50.6
Total interest expense		13,974			10,998		27.1			40,729			26,482		53.8

Net interest income		18,388			18,017		2.1			54,238			56,559		(4.1	)
Provision (credit) for credit losses		564			449		25.6			(597	)		962		(162.1	)
Net interest income after provision for credit losses		17,824			17,568		1.5			54,835			55,597		(1.4	)

Non-interest income:
Wealth management group fee income		2,991			2,533		18.1			8,554			7,716		10.9
Service charges on deposit accounts		1,016			1,018		(0.2	)		2,929			2,918		0.4
Interchange revenue from debit card transactions		1,123			1,141		(1.6	)		3,327			3,468		(4.1	)
Change in fair value of equity investments		118			(68	)	273.5			233			(99	)	335.4
Net gains on sales of loans held for sale		91			67		35.8			162			90		80.0
Net gains (losses) on sales of other real estate owned		(19	)		—		N/M			(22	)		14		N/M
Income from bank owned life insurance		10			11		(9.1	)		29			32		(9.4	)
Other		589			3,106		(81.0	)		1,962			4,539		(56.8	)
Total non-interest income		5,919			7,808		(24.2	)		17,174			18,678		(8.1	)

Non-interest expense:
Salaries and wages		7,168			6,542		9.6			21,007			20,029		4.9
Pension and other employee benefits		1,627			1,979		(17.8	)		5,787			5,467		5.9
Other components of net periodic pension and postretirement benefits		(227	)		(174	)	(30.5	)		(691	)		(522	)	(32.4	)
Net occupancy		1,422			1,337		6.4			4,360			4,242		2.8
Furniture and equipment		402			353		13.9			1,197			1,232		(2.8	)
Data processing		2,567			2,480		3.5			7,437			7,334		1.4
Professional services		522			554		(5.8	)		1,639			1,596		2.7
Marketing and advertising		210			218		(3.7	)		943			720		31.0
Other real estate owned expense		55			10		N/M			116			49		136.7
FDIC insurance		524			525		(0.2	)		1,617			1,608		0.6
Loan expense		353			249		41.8			808			789		2.4
Other		1,887			1,595		18.3			5,207			4,873		6.9
Total non-interest expense		16,510			15,668		5.4			49,427			47,417		4.2

Income before income tax expense		7,233			9,708		(25.5	)		22,582			26,858		(15.9	)
Income tax expense		1,513			2,060		(26.6	)		4,825			5,660		(14.8	)
Net income	$	5,720		$	7,648		(25.2	)	$	17,757		$	21,198		(16.2	)

Basic and diluted earnings per share	$	1.19		$	1.61				$	3.72		$	4.48
Cash dividends declared per share	$	0.31		$	0.31				$	0.93		$	0.93
Average basic and diluted shares outstanding		4,773			4,736					4,769			4,729


N/M – Not Meaningful

Chemung Financial Corporation	As of or for the Three Months Ended															As of or for the Nine Months Ended
Consolidated Financial Highlights (Unaudited)	Sept. 30,			June 30,			March 31,			Dec. 31,			Sept. 30,			Sept. 30,			Sept. 30,
(in thousands, except per share data)		2024			2024			2024			2023			2023			2024			2023
RESULTS OF OPERATIONS
Interest income	$	32,362		$	31,386		$	31,219		$	30,033		$	29,015		$	94,967		$	83,041
Interest expense		13,974			13,625			13,130			12,135			10,998			40,729			26,482
Net interest income		18,388			17,761			18,089			17,898			18,017			54,238			56,559
Provision (credit) for credit losses		564			879			(2,040	)		2,300			449			(597	)		962
Net interest income after provision for credit losses		17,824			16,882			20,129			15,598			17,568			54,835			55,597
Non-interest income		5,919			5,598			5,657			5,871			7,808			17,174			18,678
Non-interest expense		16,510			16,219			16,698			16,826			15,668			49,427			47,417
Income before income tax expense		7,233			6,261			9,088			4,643			9,708			22,582			26,858
Income tax expense		1,513			1,274			2,038			841			2,060			4,825			5,660
Net income	$	5,720		$	4,987		$	7,050		$	3,802		$	7,648		$	17,757		$	21,198

Basic and diluted earnings per share	$	1.19		$	1.05		$	1.48		$	0.80		$	1.61		$	3.72		$	4.48
Average basic and diluted shares outstanding		4,773			4,770			4,764			4,743			4,736			4,769			4,729

PERFORMANCE RATIOS
Return on average assets		0.83	%		0.73	%		1.04	%		0.56	%		1.14	%		0.87	%		1.07	%
Return on average equity		10.81	%		10.27	%		14.48	%		8.63	%		16.89	%		11.82	%		15.93	%
Return on average tangible equity (a)		12.07	%		11.56	%		16.29	%		9.86	%		19.22	%		13.27	%		18.15	%
Efficiency ratio (unadjusted) (e)		67.92	%		69.43	%		70.32	%		70.79	%		60.67	%		69.21	%		63.02	%
Efficiency ratio (adjusted) (a)		67.69	%		69.19	%		70.07	%		70.42	%		66.55	%		68.97	%		64.83	%
Non-interest expense to average assets		2.39	%		2.38	%		2.47	%		2.48	%		2.33	%		2.41	%		2.39	%
Loans to deposits		82.78	%		83.26	%		80.77	%		81.20	%		78.05	%		82.78	%		78.05	%

YIELDS / RATES – Fully Taxable Equivalent
Yield on loans		5.65	%		5.52	%		5.51	%		5.31	%		5.21	%		5.56	%		5.07	%
Yield on investments		2.21	%		2.27	%		2.35	%		2.24	%		2.22	%		2.28	%		2.21	%
Yield on interest-earning assets		4.78	%		4.69	%		4.70	%		4.50	%		4.40	%		4.72	%		4.27	%
Cost of interest-bearing deposits		2.88	%		2.86	%		2.75	%		2.59	%		2.44	%		2.83	%		1.94	%
Cost of borrowings		5.08	%		5.04	%		5.15	%		5.52	%		5.25	%		5.09	%		5.04	%
Cost of interest-bearing liabilities		2.97	%		2.94	%		2.85	%		2.68	%		2.47	%		2.92	%		2.03	%
Interest rate spread		1.81	%		1.75	%		1.85	%		1.82	%		1.93	%		1.80	%		2.24	%
Net interest margin, fully taxable equivalent		2.72	%		2.66	%		2.73	%		2.69	%		2.73	%		2.70	%		2.91	%

CAPITAL
Total equity to total assets at end of period		7.95	%		7.30	%		7.08	%		7.20	%		6.28	%		7.95	%		6.28	%
Tangible equity to tangible assets at end of period (a)		7.22	%		6.56	%		6.34	%		6.45	%		5.52	%		7.22	%		5.52	%
Book value per share	$	46.22		$	42.17		$	41.34		$	41.07		$	35.90		$	46.22		$	35.90
Tangible book value per share (a)		41.65			37.59			36.77			36.48			31.29			41.65			31.29
Period-end market value per share		48.02			48.00			42.48			49.80			39.61			48.02			39.61
Dividends declared per share		0.31			0.31			0.31			0.31			0.31			0.93			0.93

AVERAGE BALANCES
Loans and loans held for sale (b)	$	2,020,280		$	2,009,823		$	1,989,185		$	1,956,022		$	1,909,100		$	2,006,479		$	1,879,765
Interest-earning assets		2,699,968			2,699,402			2,681,059			2,654,638			2,627,012			2,693,499			2,609,999
Total assets		2,751,392			2,740,967			2,724,391			2,688,536			2,664,570			2,738,962			2,650,908
Deposits		2,410,735			2,419,169			2,402,215			2,397,663			2,410,931			2,410,706			2,371,021
Total equity		210,421			195,375			195,860			174,868			179,700			200,588			177,969
Tangible equity (a)		188,597			173,551			174,036			153,044			157,876			178,764			156,145

ASSET QUALITY
Net charge-offs	$	79		$	306		$	182		$	171		$	356		$	566		$	771
Non-performing loans (c)		10,545			8,195			7,835			10,411			6,826			10,545			6,826
Non-performing assets (d)		11,134			8,872			8,394			10,737			7,055			11,134			7,055
Allowance for credit losses		21,441			21,031			20,471			22,517			20,252			21,441			20,252
Annualized net charge-offs to average loans		0.02	%		0.06	%		0.04	%		0.03	%		0.07	%		0.04	%		0.05	%
Non-performing loans to total loans		0.52	%		0.41	%		0.39	%		0.53	%		0.35	%		0.52	%		0.35	%
Non-performing assets to total assets		0.40	%		0.32	%		0.30	%		0.40	%		0.26	%		0.40	%		0.26	%
Allowance for credit losses to total loans		1.06	%		1.05	%		1.02	%		1.14	%		1.05	%		1.06	%		1.05	%
Allowance for credit losses to non-performing loans		203.33	%		256.63	%		261.28	%		216.28	%		296.69	%		203.33	%		296.69	%

(a) See the GAAP to Non-GAAP reconciliations.
(b) Loans and loans held for sale do not reflect the allowance for credit losses.
(c) Non-performing loans include non-accrual loans only.
(d) Non-performing assets include non-performing loans plus other real estate owned and repossessed vehicles.
(e) Efficiency ratio (unadjusted) is non-interest expense divided by the total of net interest income plus non-interest income.

Chemung Financial Corporation
Average Consolidated Balance Sheets & Net Interest Income Analysis and Rate/Volume Analysis of Net Interest Income (Unaudited)
	Three Months Ended September 30, 2024								Three Months Ended September 30, 2023								Three Months Ended September 30, 2024 vs. 2023
(in thousands)	Average Balance			Interest			Yield / Rate		Average Balance			Interest			Yield / Rate		Total Change			Due to Volume			Due to Rate

Interest-earning assets:
Commercial loans	$	1,453,418		$	21,854		5.98	%	$	1,319,110		$	18,672		5.62	%	$	3,182		$	1,953		$	1,229
Mortgage loans		273,374			2,713		3.97	%		282,578			2,572		3.61	%		141			(92	)		233
Consumer loans		293,488			4,102		5.56	%		307,412			3,843		4.96	%		259			(183	)		442
Taxable securities		605,631			3,063		2.01	%		663,240			3,540		2.12	%		(477	)		(299	)		(178	)
Tax-exempt securities		38,537			272		2.81	%		40,380			288		2.83	%		(16	)		(14	)		(2	)
Interest-earning deposits		35,520			441		4.94	%		14,292			187		5.19	%		254			263			(9	)
Total interest-earning assets		2,699,968			32,445		4.78	%		2,627,012			29,102		4.40	%		3,343			1,628			1,715

Non interest-earning assets:
Cash and due from banks		25,086								26,272
Other assets		47,571								31,496
Allowance for credit losses (3)		(21,233	)							(20,210	)
Total assets	$	2,751,392							$	2,664,570

Interest-bearing liabilities:
Interest-bearing checking	$	311,406		$	1,445		1.85	%	$	281,106		$	963		1.36	%	$	482		$	111		$	371
Savings and money market		864,541			4,607		2.12	%		890,109			3,945		1.76	%		662			(117	)		779
Time deposits		554,605			6,056		4.34	%		383,786			3,269		3.38	%		2,787			1,701			1,086
Brokered deposits		65,913			897		5.41	%		189,628			2,543		5.32	%		(1,646	)		(1,688	)		42
FHLBNY overnight advances		541			7		5.06	%		17,879			249		5.53	%		(242	)		(223	)		(19	)
FRB advances and other debt		75,305			962		5.08	%		3,144			29		3.66	%		933			918			15
Total interest-bearing liabilities		1,872,311			13,974		2.97	%		1,765,652			10,998		2.47	%		2,976			702			2,274

Non interest-bearing liabilities:
Demand deposits		614,270								666,302
Other liabilities		54,390								52,916
Total liabilities		2,540,971								2,484,870
Shareholders’ equity		210,421								179,700
Total liabilities and shareholders’ equity	$	2,751,392							$	2,664,570

Fully taxable equivalent net interest income					18,471								18,104				$	367		$	926		$	(559	)
Net interest rate spread (1)							1.81	%							1.93	%
Net interest margin, fully taxable equivalent (2)							2.72	%							2.73	%
Taxable equivalent adjustment					(83	)							(87	)
Net interest income				$	18,388							$	18,017

(1) Net interest rate spread is the difference in the average yield on interest-earning assets less the average rate on interest-bearing liabilities.
(2) Net interest margin is the ratio of fully taxable equivalent net interest income divided by average interest-earning assets.
(3) The Corporation implemented CECL as of January 1, 2023.

Chemung Financial Corporation
Average Consolidated Balance Sheets & Net Interest Income Analysis and Rate/Volume Analysis of Net Interest Income (Unaudited)
	Nine Months Ended September 30, 2024								Nine Months Ended September 30, 2023								Nine Months Ended September 30, 2024 vs. 2023
(in thousands)	Average Balance			Interest			Yield/ Rate		Average Balance			Interest			Yield / Rate		Total Change			Due to Volume			Due to Rate

Interest earning assets:
Commercial loans	$	1,433,224		$	63,501		5.92	%	$	1,289,638		$	53,047		5.50	%	$	10,454		$	6,201		$	4,253
Mortgage loans		274,834			7,879		3.82	%		284,351			7,553		3.55	%		326			(253	)		579
Consumer loans		298,421			12,114		5.42	%		305,776			10,673		4.67	%		1,441			(261	)		1,702
Taxable securities		619,657			9,877		2.13	%		679,330			10,758		2.12	%		(881	)		(933	)		52
Tax-exempt securities		39,453			830		2.81	%		40,562			887		2.92	%		(57	)		(24	)		(33	)
Interest-earning deposits		27,910			1,014		4.85	%		10,342			400		5.17	%		614			641			(27	)
Total interest-earning assets		2,693,499			95,215		4.72	%		2,609,999			83,318		4.27	%		11,897			5,371			6,526

Non interest-earning assets:
Cash and due from banks		25,131								25,512
Other assets		41,807								35,547
Allowance for credit losses (3)		(21,475	)							(20,150	)
Total assets	$	2,738,962							$	2,650,908

Interest-bearing liabilities:
Interest-bearing checking	$	308,318		$	4,170		1.81	%	$	286,220		$	1,959		0.92	%	$	2,211		$	164		$	2,047
Savings and money market		861,382			13,190		2.05	%		899,871			8,645		1.28	%		4,545			(389	)		4,934
Time deposits		521,997			16,603		4.25	%		350,846			8,041		3.06	%		8,562			4,764			3,798
Brokered deposits		96,056			3,898		5.42	%		153,774			5,932		5.16	%		(2,034	)		(2,322	)		288
FHLBNY overnight advances		15,359			646		5.53	%		47,321			1,819		5.14	%		(1,173	)		(1,304	)		131
FRB advances and other debt		59,584			2,222		4.98	%		3,212			86		3.58	%		2,136			2,089			47
Total interest-bearing liabilities		1,862,696			40,729		2.92	%		1,741,244			26,482		2.03	%		14,247			3,002			11,245

Non interest-bearing liabilities:
Demand deposits		622,953								680,310
Other liabilities		52,725								51,385
Total liabilities		2,538,374								2,472,939
Shareholders’ equity		200,588								177,969
Total liabilities and shareholders’ equity	$	2,738,962							$	2,650,908

Fully taxable equivalent net interest income					54,486								56,836				$	(2,350	)	$	2,369		$	(4,719	)
Net interest rate spread (1)							1.80	%							2.24	%
Net interest margin, fully taxable equivalent (2)							2.70	%							2.91	%
Taxable equivalent adjustment					(248	)							(277	)
Net interest income				$	54,238							$	56,559

(1) Net interest rate spread is the difference in the average yield on interest-earning assets less the average rate on interest-bearing liabilities.
(2) Net interest margin is the ratio of fully taxable equivalent net interest income divided by average interest-earning assets.
(3) The Corporation implemented CECL as of January 1, 2023.

Chemung Financial Corporation

GAAP to Non-GAAP Reconciliations (Unaudited)

The Corporation prepares its Consolidated Financial Statements in accordance with GAAP. See the Corporation’s unaudited consolidated balance sheets and statements of income contained within this press release. That presentation provides the reader with an understanding of the Corporation’s results that can be tracked consistently from period-to-period and enables a comparison of the Corporation’s performance with other companies’ GAAP financial statements.

In addition to analyzing the Corporation’s results on a reported basis, management uses certain non-GAAP financial measures, because it believes these non-GAAP financial measures provide information to investors about the underlying operational performance and trends of the Corporation and, therefore, facilitate a comparison of the Corporation with the performance of other companies. Non- GAAP financial measures used by the Corporation may not be comparable to similarly named non-GAAP financial measures used by other companies.

The SEC has adopted Regulation G, which applies to all public disclosures, including earnings releases, made by registered companies that contain “non-GAAP financial measures.” Under Regulation G, companies making public disclosures containing non- GAAP financial measures must also disclose, along with each non-GAAP financial measure, certain additional information, including a reconciliation of the non-GAAP financial measure to the closest comparable GAAP financial measure and a statement of the Corporation’s reasons for utilizing the non-GAAP financial measure as part of its financial disclosures. The SEC has exempted from the definition of “non-GAAP financial measures” certain commonly used financial measures that are not based on GAAP. When these exempted measures are included in public disclosures, supplemental information is not required. The following measures used in this Report, which are commonly utilized by financial institutions, have not been specifically exempted by the SEC and may constitute “non- GAAP financial measures” within the meaning of the SEC’s rules, although we are unable to state with certainty that the SEC would so regard them.

Fully Taxable Equivalent Net Interest Income and Net Interest Margin

Net interest income is commonly presented on a tax-equivalent basis. That is, to the extent that some component of the institution’s net interest income, which is presented on a before-tax basis, is exempt from taxation (e.g., is received by the institution as a result of its holdings of state or municipal obligations), an amount equal to the tax benefit derived from that component is added to the actual before-tax net interest income total. This adjustment is considered helpful in comparing one financial institution’s net interest income to that of other institutions or in analyzing any institution’s net interest income trend line over time, to correct any analytical distortion that might otherwise arise from the fact that financial institutions vary widely in the proportions of their portfolios that are invested in tax- exempt securities, and that even a single institution may significantly alter over time the proportion of its own portfolio that is invested in tax-exempt obligations. Moreover, net interest income is itself a component of a second financial measure commonly used by financial institutions, net interest margin, which is the ratio of net interest income to average interest-earning assets. For purposes of this measure as well, fully taxable equivalent net interest income is generally used by financial institutions, as opposed to actual net interest income, again to provide a better basis of comparison from institution to institution and to better demonstrate a single institution’s performance over time. The Corporation follows these practices.


																As of or for the
	As of or for the Three Months Ended															Nine Months Ended
	Sept. 30,			June 30,			March 31,			Dec. 31,			Sept. 30,			Sept. 30,			Sept. 30,
(in thousands, except ratio data)		2024			2024			2024			2023			2023			2024			2023
NET INTEREST MARGIN – FULLY TAXABLE EQUIVALENT
Net interest income (GAAP)	$	18,388		$	17,761		$	18,089		$	17,898		$	18,017		$	54,238		$	56,559
Fully taxable equivalent adjustment		83			81			84			87			87			248			277
Fully taxable equivalent net interest income (non-GAAP)	$	18,471		$	17,842		$	18,173		$	17,985		$	18,104		$	54,486		$	56,836

Average interest-earning assets (GAAP)	$	2,699,968		$	2,699,402		$	2,681,059		$	2,654,638		$	2,627,012		$	2,693,499		$	2,609,999

Net interest margin – fully taxable equivalent (non-GAAP)		2.72	%		2.66	%		2.73	%		2.69	%		2.73	%		2.70	%		2.91	%

Efficiency Ratio

The unadjusted efficiency ratio is calculated as non-interest expense divided by total revenue (net interest income and non-interest income). The adjusted efficiency ratio is a non-GAAP financial measure which represents the Corporation’s ability to turn resources into revenue and is calculated as non-interest expense divided by total revenue (fully taxable equivalent net interest income and non- interest income), adjusted for one-time occurrences and amortization. This measure is meaningful to the Corporation, as well as investors and analysts, in assessing the Corporation’s productivity measured by the amount of revenue generated for each dollar spent.


																As of or for the
	As of or for the Three Months Ended															Nine Months Ended
	Sept. 30,			June 30,			March 31,			Dec. 31,			Sept. 30,			Sept. 30,			Sept. 30,
(in thousands, except ratio data)		2024			2024			2024			2023			2023			2024			2023
EFFICIENCY RATIO
Net interest income (GAAP)	$	18,388		$	17,761		$	18,089		$	17,898		$	18,017		$	54,238		$	56,559
Fully taxable equivalent adjustment		83			81			84			87			87			248			277
Fully taxable equivalent net interest income (non-GAAP)	$	18,471		$	17,842		$	18,173		$	17,985		$	18,104		$	54,486		$	56,836

Non-interest income (GAAP)	$	5,919		$	5,598		$	5,657		$	5,871		$	7,808		$	17,174		$	18,678
Less: net (gains) losses on security transactions		—			—			—			39			—			—			—
Less: recognition of employee retention tax credit		—			—			—			—			(2,370	)		—			(2,370	)
Adjusted non-interest income (non-GAAP)	$	5,919		$	5,598		$	5,657		$	5,910		$	5,438		$	17,174		$	16,308

Non-interest expense (GAAP)	$	16,510		$	16,219		$	16,698		$	16,826		$	15,668		$	49,427		$	47,417

Efficiency ratio (unadjusted)		67.92	%		69.43	%		70.32	%		70.79	%		60.67	%		69.21	%		63.02	%
Efficiency ratio (adjusted)		67.69	%		69.19	%		70.07	%		70.42	%		66.55	%		68.97	%		64.83	%

Tangible Equity and Tangible Assets (Period-End)

Tangible equity, tangible assets, and tangible book value per share are each non-GAAP financial measures. Tangible equity represents the Corporation’s stockholders’ equity, less goodwill and intangible assets. Tangible assets represents the Corporation’s total assets, less goodwill and other intangible assets. Tangible book value per share represents the Corporation’s tangible equity divided by common shares at period-end. These measures are meaningful to the Corporation, as well as investors and analysts, in assessing the Corporation’s use of equity.


																As of or for the
	As of or for the Three Months Ended															Nine Months Ended
	Sept. 30,			June 30,			March 31,			Dec. 31,			Sept. 30,			Sept. 30,			Sept. 30,
(in thousands, except per share and ratio data)		2024			2024			2024			2023			2023			2024			2023
TANGIBLE EQUITY AND TANGIBLE ASSETS
(PERIOD END)
Total shareholders’ equity (GAAP)	$	220,654		$	201,222		$	197,128		$	195,241		$	170,064		$	220,654		$	170,064
Less: intangible assets		(21,824	)		(21,824	)		(21,824	)		(21,824	)		(21,824	)		(21,824	)		(21,824	)
Tangible equity (non-GAAP)	$	198,830		$	179,398		$	175,304		$	173,417		$	148,240		$	198,830		$	148,240

Total assets (GAAP)	$	2,774,215		$	2,755,813		$	2,784,890		$	2,710,529		$	2,707,834		$	2,774,215		$	2,707,834
Less: intangible assets		(21,824	)		(21,824	)		(21,824	)		(21,824	)		(21,824	)		(21,824	)		(21,824	)
Tangible assets (non-GAAP)	$	2,752,391		$	2,733,989		$	2,763,066		$	2,688,705		$	2,686,010		$	2,752,391		$	2,686,010

Total equity to total assets at end of period (GAAP)		7.95	%		7.30	%		7.08	%		7.20	%		6.28	%		7.95	%		6.28	%
Book value per share (GAAP)	$	46.22		$	42.17		$	41.34		$	41.07		$	35.90		$	46.22		$	35.90

Tangible equity to tangible assets at end of period (non-GAAP)		7.22	%		6.56	%		6.34	%		6.45	%		5.52	%		7.22	%		5.52	%
Tangible book value per share (non-GAAP)	$	41.65		$	37.59		$	36.77		$	36.48		$	31.29		$	41.65		$	31.29

Tangible Equity (Average)

Average tangible equity and return on average tangible equity are each non-GAAP financial measures. Average tangible equity represents the Corporation’s average stockholders’ equity, less average goodwill and intangible assets for the period. Return on average tangible equity measures the Corporation’s earnings as a percentage of average tangible equity. These measures are meaningful to the Corporation, as well as investors and analysts, in assessing the Corporation’s use of equity.


																As of or for the
	As of or for the Three Months Ended															Nine Months Ended
	Sept. 30,			June 30,			March 31,			Dec. 31,			Sept. 30,			Sept. 30,			Sept. 30,
(in thousands, except ratio data)		2024			2024			2024			2023			2023			2024			2023
TANGIBLE EQUITY (AVERAGE)
Total average shareholders’ equity (GAAP)	$	210,421		$	195,375		$	195,860		$	174,868		$	179,700		$	200,588		$	177,969
Less: average intangible assets		(21,824	)		(21,824	)		(21,824	)		(21,824	)		(21,824	)		(21,824	)		(21,824	)
Average tangible equity (non-GAAP)	$	188,597		$	173,551		$	174,036		$	153,044		$	157,876		$	178,764		$	156,145

Return on average equity (GAAP)		10.81	%		10.27	%		14.48	%		8.63	%		16.89	%		11.82	%		15.93	%
Return on average tangible equity (non-GAAP)		12.07	%		11.56	%		16.29	%		9.86	%		19.22	%		13.27	%		18.15	%

In addition to disclosures of certain GAAP financial measures, including net income, EPS, ROA, and ROE, we may also provide comparative disclosures that adjust these GAAP financial measures for a particular period by removing from the calculation thereof the impact of certain transactions or other material items of income or expense occurring during the period, including certain nonrecurring items. The Corporation believes that the resulting non-GAAP financial measures may improve an understanding of its results of operations by separating out any such transactions or items that may have had a disproportionate positive or negative impact on the Corporation’s financial results during the particular period in question. In the Corporation’s presentation of any such non-GAAP (adjusted) financial measures not specifically discussed in the preceding paragraphs, the Corporation supplies the supplemental financial information and explanations required under Regulation G.


																As of or for the
	As of or for the Three Months Ended															Nine Months Ended
	Sept. 30,			June 30,			March 31,			Dec. 31,			Sept. 30,			Sept. 30,			Sept. 30,
(in thousands, except per share and ratio data)		2024			2024			2024			2023			2023			2024			2023
NON-GAAP NET INCOME
Reported net income (GAAP)	$	5,720		$	4,987		$	7,050		$	3,802		$	7,648		$	17,757		$	21,198
Net (gains) losses on security transactions (net of tax)		—			—			—			29			—			—			—
Recognition of employee retention tax credit (net of tax)		—			—			—			—			(1,873	)		—			(1,873	)
Net income (non-GAAP)	$	5,720		$	4,987		$	7,050		$	3,831		$	5,775		$	17,757		$	19,325

Average basic and diluted shares outstanding		4,773			4,770			4,764			4,743			4,736			4,769			4,729

Reported basic and diluted earnings per share (GAAP)	$	1.19		$	1.05		$	1.48		$	0.80		$	1.61		$	3.72		$	4.48
Reported return on average assets (GAAP)		0.83	%		0.73	%		1.04	%		0.56	%		1.14	%		0.87	%		1.07	%
Reported return on average equity (GAAP)		10.81	%		10.27	%		14.48	%		8.63	%		16.89	%		11.82	%		15.93	%

Basic and diluted earnings per share (non-GAAP)	$	1.19		$	1.05		$	1.48		$	0.81		$	1.21		$	3.72		$	4.08
Return on average assets (non-GAAP)		0.83	%		0.73	%		1.04	%		0.57	%		0.86	%		0.87	%		0.97	%
Return on average equity (non-GAAP)		10.81	%		10.27	%		14.48	%		8.69	%		12.75	%		11.82	%		14.52	%

Category: Financial

Source: Chemung Financial Corp

For further information contact:
Dale M. McKim, III, EVP and CFO
dmckim@chemungcanal.com
Phone: 607-737-3714

The MIL Network –

January 24, 2025

MIL-OSI: Orrstown Financial Services, Inc. Reports Third Quarter 2024 Results

Source: GlobeNewswire (MIL-OSI)

Orrstown Financial Services, Inc. (“Orrstown” or the “Company”) closed the merger of equals transaction with Codorus Valley Bancorp, Inc. (“Codorus”) on July 1, 2024, creating a premier Pennsylvania and Maryland community bank; as a result, the Company’s results for the three months ended September 30, 2024 reflect the combined operating results of the combined companies;
Codorus contributed, after fair value purchase accounting adjustments, approximately $2.2 billion in total assets, $1.6 billion in loans, and $1.9 billion in deposits at July 1, 2024;
Net loss of $7.9 million, or $0.41 per diluted share, for the three months ended September 30, 2024 compared to net income of $7.7 million, or $0.73 per diluted share, for the three months ended June 30, 2024, reflecting the impact of $17.0 million in expenses related to the merger, $15.5 million of provision for credit losses on non-purchase credit deteriorated (“PCD”) loans and $4.8 million for the previously announced executive retirement, net of taxes, collectively the “non-recurring charges”;
Excluding the impact of the non-recurring charges, net income and diluted earnings per share, respectively, were $21.4 million⁽¹⁾ and $1.11⁽¹⁾ for the third quarter of 2024 compared to net income and diluted earnings per share of $8.7 million⁽¹⁾ and $0.83⁽¹⁾, respectively, as adjusted for the impact of $1.1 million in merger-related expenses, net of taxes, recorded for the second quarter of 2024;
Net interest margin, on a tax equivalent basis, was 4.14% in the third quarter of 2024 compared to 3.54% in the second quarter of 2024; the net accretion impact of purchase accounting marks on loans, deposits and borrowings was $5.8 million of net interest income, which represents 52 basis points of net interest margin;
Noninterest income increased by $5.1 million to $12.4 million in the three months ended September 30, 2024 compared to $7.2 million in the three months ended June 30, 2024; continued strength in wealth management and swap fee generation by commercial teams are driving fee income growth;
Return on average assets for the three months ended September 30, 2024 was (0.57)% compared to 0.97% for the three months ended June 30, 2024; excluding the non-recurring charges, return on average assets was 1.55%⁽¹⁾ for the three months ended September 30, 2024 compared to 1.09%⁽¹⁾ for the three months ended June 30, 2024, excluding merger-related expenses;
Return on average equity for the three months ended September 30, 2024 was (5.85)% compared to 11.41% for the three months ended June 30, 2024; excluding the non-recurring charges, return on average equity was 15.85%⁽¹⁾ for the three months ended September 30, 2024 compared to 12.88%⁽¹⁾ for the three months ended June 30, 2024, excluding merger related expenses;
The provision for credit losses was $13.7 million for the three months ended September 30, 2024 compared to $812 thousand for the three months ended June 30, 2024; the provision for credit losses on non-PCD loans for the three months ended September 30, 2024 was $15.5 million; excluding the impact of the merger, the provision for credit losses for the three months ended September 30, 2024 was a reversal of $1.8 million;
At September 30, 2024, nonaccrual loans totaled $26.9 million, an increase of $18.5 million from $8.4 million at June 30, 2024; non-accrual loans acquired from Codorus totaled $12.8 million;
Tangible book value per common share⁽¹⁾ decreased to $21.12 per share at September 30, 2024 compared to $24.08 per share at June 30, 2024; this decrease was primarily due to the impact of loan marks associated with the merger and the net loss incurred for the third quarter of 2024;
The Board of Directors declared a cash dividend of $0.23 per common share, payable November 12, 2024, to shareholders of record as of November 5, 2024.

⁽¹⁾ Non-GAAP measure. See Appendix A for additional information.

HARRISBURG, Pa., Oct. 22, 2024 (GLOBE NEWSWIRE) — Orrstown Financial Services, Inc. (NASDAQ: ORRF), the parent company of Orrstown Bank (the “Bank”), announced earnings for the three months ended September 30, 2024. Net loss totaled $7.9 million for the three months ended September 30, 2024, compared to net income of $7.7 million for the three months ended June 30, 2024 and $9.0 million for the three months ended September 30, 2023. Diluted loss per share was $0.41 for the three months ended September 30, 2024, compared to diluted earnings per share of $0.73 for the three months ended June 30, 2024 and $0.87 for the three months ended September 30, 2023. For the third quarter of 2024, excluding the impact from the non-recurring charges, net of taxes, net income and diluted earnings per share were $21.4 million⁽¹⁾ and $1.11⁽¹⁾, respectively. For the second quarter of 2024, excluding the impact of the merger-related expenses, net of taxes, net income and diluted earnings per share were $8.7 million⁽¹⁾ and $0.83⁽¹⁾, respectively.

“While the results for the quarter reflected the impact of certain non-recurring charges, the core income generated by the business demonstrates the significant opportunities afforded by the additional scale and synergies created by the merger. Our core earnings were strong. We already have taken significant steps to achieve the cost savings announced in December, which we are on target to achieve in full in the defined timeline. Our system conversion in scheduled for completion in November 2024, at which time we expect further expense savings to be realized. We believe we are well on our way to improving our client experience, expanding and deepening our community presence, and enhancing shareholder value,” commented Thomas R. Quinn, Jr., President and Chief Executive Officer.

DISCUSSION OF RESULTS

Merger Update

The Company acquired Codorus and its wholly-owned bank subsidiary PeoplesBank, A Codorus Valley Company on July 1, 2024. The merger and acquisition method of accounting was used to account for the transaction with the Company as the acquirer. The Company recorded the assets and liabilities of Codorus at their respective fair values as of July 1, 2024. The transaction was valued at approximately $234 million and expanded the Bank’s footprint into the York, Pennsylvania market while increasing its market penetration in its existing markets.

At the time of the merger, Codorus contributed, after fair value purchase accounting adjustments, approximately $2.2 billion in assets, $1.6 billion in loans, $326.7 million in investment securities and $1.9 billion in deposits. The excess of the merger consideration over the fair value of net Codorus assets resulted in goodwill of $51.9 million. The merger led to a 12% dilution in our tangible book value per share which was $21.12 at September 30, 2024 compared to $24.08 at June 30, 2024. The principal cause of the dilution was the impact of the associated purchase accounting marks on loans. The Company’s tangible common equity ratio at September 30, 2024 was 7.5%. The loan fair value adjustments are expected to accrete back through income and capital as the loans mature and should lead to earnings per share and capital accretion moving forward. The fair value of assets and liabilities are subject to refinement for up to one year after the acquisition date as allowable under U.S. Generally Accepted Accounting Principles.

The Company incurred expenses of $32.5 million and $34.3 million for the three and nine months ended September 30, 2023, respectively, related to merger costs and an increased allowance for credit losses on non-PCD portion of the loans assumed from Codorus.

The Company’s financial results for any periods ended prior to July 1, 2024 reflect Orrstown’s results only on a standalone basis. As a result of this factor and the below listed adjustments related to the merger, the Company’s financial results for the third quarter of 2024 may not be directly comparable to prior reported periods.

Balance Sheet

Loans

Loans held for investment increased by $1.7 billion from June 30, 2024 to September 30, 2024 as $1.6 billion of loans, net of purchase accounting marks, were assumed in the merger with Codorus.

Investment Securities

Investment securities, all of which are classified as available-for-sale, increased by $297.7 million to $826.8 million at September 30, 2024 from $529.1 million at June 30, 2024. Investments with a fair value of $326.7 million were assumed in the merger with Codorus. During the third quarter of 2024, investment securities totaling $162.7 million were sold from the portfolio acquired from Codorus. The portfolio was restructured to align the interest rate risk and credit profile for the combined balance sheet. Most of these proceeds were reinvested in investment securities as purchases of $140.4 million were made in the three months ended September 30, 2024. These purchases were partially offset by paydowns of investment securities of $20.6 million and two calls totaling $5.0 million. The overall duration of the Company’s investment securities portfolio was 4.6 years at September 30, 2024 compared to 4.2 years at June 30, 2024. See Appendix B for a summary of the Bank’s investment securities at September 30, 2024, highlighting their concentrations, credit ratings and credit enhancement levels.

Deposits

During the third quarter of 2024, deposits increased by $2.0 billion to approximately $4.7 billion at September 30, 2024 compared to $2.7 billion at June 30, 2024. Deposits of $1.9 billion were assumed in the merger. At September 30, 2024, deposits that are uninsured and not collateralized totaled $692.6 million, or 15% of total deposits compared to $422.3 million, or 16% of total deposits at June 30, 2024. The Bank’s loan-to-deposit ratio decreased slightly to 86% at September 30, 2024 from 87% at June 30, 2024.

Borrowings

The Bank actively manages its liquidity position through its various sources of funding to meet the needs of its clients. FHLB advances and other borrowings were $115.4 million at September 30, 2024 and $115.0 million at June 30, 2024. The Bank seeks to maintain sufficient liquidity to ensure client needs can be addressed on a timely basis. The Bank had available alternative funding sources, such as FHLB advances and other wholesale options, of approximately $1.0 billion at September 30, 2024. The Bank’s FHLB borrowing capacity at September 30, 2024 was not inclusive of Codorus, which will be reflected in the fourth quarter.

The Company assumed $31.0 million aggregate principal amount of subordinated debentures and $10.3 million aggregate amount of trust preferred securities from Codorus in the merger. Fair value adjustments of $5.1 million were recorded on July 1, 2024 which reduced the amounts recorded on the balance sheet.

Income Statement

Net Interest Income and Margin

Net interest income was $51.7 million for the three months ended September 30, 2024 compared to $26.1 million for the three months ended June 30, 2024. The net interest margin, on a tax equivalent basis, increased to 4.14% in the third quarter of 2024 from 3.54% in the second quarter of 2024. The net interest margin was positively impacted by the net accretion impact of purchase accounting marks on loans, deposits and borrowings of $5.8 million, which represents 52 basis points of net interest margin. Funding costs show signs of stabilizing.

Several components of the net interest margin increased primarily as the result of the assets and liabilities assumed in the merger with Codorus.

Interest income on loans, on a tax equivalent basis, increased by $35.2 million to $70.8 million for the three months ended September 30, 2024 compared to $35.7 million for the three months ended June 30, 2024.

Interest income on investment securities, on a tax equivalent basis, was $10.1 million for the third quarter of 2024 compared to $6.1 million in the second quarter of 2024.

Interest expense, on a tax equivalent basis, increased by $14.1 million to $31.3 million for the three months ended September 30, 2024 compared to $17.2 million for the three months ended June 30, 2024. Average interest-bearing deposits increased by $1.6 billion during the three months ended September 30, 2024 compared to the three months ended June 30, 2024. Average borrowings increased by $35.8 million during the three months ended September 30, 2024 compared to the three months ended June 30, 2024. Interest expense includes $0.4 million and $0 of amortization of purchase accounting marks for the three months ended September 30, 2024 and June 30, 2024, respectively.

Provision for Credit Losses

The Company recorded a provision for credit losses of $13.7 million for the three months ended September 30, 2024 compared to $0.8 million for the three months ended June 30, 2024. The allowance for credit losses (“ACL”) on loans increased to $49.6 million at September 30, 2024 from $29.9 million at June 30, 2024. The increase in the ACL was primarily due to the addition of $21.4 million of reserves as a result of the merger. This increase was made up of $15.5 million for non-PCD loans, which was recognized through the provision for credit losses, and $5.9 million for PCD loans which was recognized through retained earnings. The provision for credit losses for the three months ended September 30, 2024 included a provision reversal of $1.8 million due to changes in qualitative factors, a change in the peer group utilized for the calculation and a reduction in the required reserve for unfunded commitments. The ACL to total loans was 1.25% at September 30, 2024 compared to 1.27% at June 30, 2024. Net charge-offs were $0.3 million for the three months ended September 30, 2024 compared to net charge-offs of $0.1 million for the three months ended June 30, 2024.

As a result of the merger, classified loans increased by $56.8 million to $105.5 million at September 30, 2024 from $48.7 million at June 30, 2024. Non-accrual loans increased by $18.5 million to $26.9 million at September 30, 2024 from $8.4 million at June 30, 2024 due primarily to the assumption of $12.8 million of non-accrual loans from Codorus. Nonaccrual loans to total loans increased to 0.68% at September 30, 2024 compared to 0.36% at June 30, 2024 and decreased from 1.11% at December 31, 2023. Management believes the ACL to be adequate based on current asset quality metrics and economic conditions.

Noninterest Income

Noninterest income increased by $5.1 million to $12.4 million in the three months ended September 30, 2024 compared to $7.2 million in the three months ended June 30, 2024 primarily due to the merger.

Wealth management income increased to $5.0 million in the three months ended September 30, 2024 compared to $3.3 million for the three months ended June 30, 2024. The strong sales efforts, organic growth and stock market performance have collectively driven exceptional wealth results throughout the year. As a result of the merger, assets under management increased to approximately $3.2 billion at September 30, 2024 from $2.1 billion at June 30, 2024.

During the third quarter of 2024, the Company recorded swap fee income of $0.5 million compared to $0.4 million in the three months ended June 30, 2024. Swap fee generation has been strong, but fluctuates based on market conditions and client demand.

Noninterest Expenses

Noninterest expenses increased by $37.7 million to $60.3 million in the three months ended September 30, 2024 from $22.6 million in the three months ended June 30, 2024 primarily due to the merger.

For the three months ended September 30, 2024, merger-related expenses totaled $17.0 million, an increase of $15.9 million, compared to $1.1 million for the three months ended June 30, 2024. The increase is due to primarily to employee separation costs, vendor contract terminations, and professional fees incurred during the third quarter of 2024. The Company will incur additional merger-related expenses from the operational and technology processes to combine systems and services of both companies, which is expected to be completed in November 2024.

Salaries and benefits expense increased by $14.0 million to $27.2 million for the three months ended September 30, 2024 compared to $13.2 million for the three months ended June 30, 2024. The three months ended September 30, 2024 includes $4.8 million of expenses associated with the retirement of an executive.

Intangible asset amortization increased to $2.5 million for the three months ended September 30, 2024 compared to $0.2 million for the three months ended June 30, 2024. This increase is due to the amortization expense recognized on the core deposit intangible of $35.9 million and wealth customer relationship intangible of $10.4 million established on July 1, 2024 from the merger.

Taxes other than income increased to $0.5 million in the three months ended September 30, 2024 compared to less than $0.1 million in the three months ended June 30, 2024. This increase reflects the tax credits recognized on the contributions during the second quarter of 2024.

There was $257 thousand of restructuring expenses recognized in the three months ended September 30, 2024 associated with previously announced branch closures.

Income Taxes

The Company’s effective tax rate for the third quarter of 2024 was 20.1% compared to 21.2% for the second quarter of 2024. The Company’s effective tax rate for the three months ended September 30, 2024 is less than the 21% federal statutory rate primarily due to tax-exempt income, including interest earned on tax-exempt loans and securities and income from life insurance policies and tax credits partially offset by the disallowed portion of interest expense against earnings in association with the Bank’s tax-exempt investments under the Tax Equity and Fiscal Responsibility Act of 1982 (“TEFRA”) and the impact of nondeductible merger-related costs. The Company regularly analyzes its projected taxable income and makes adjustments to the provision for income taxes accordingly.

Capital

Shareholders’ equity totaled $516.2 million at September 30, 2024, an increase of $237.8 million from $278.4 million at June 30, 2024. The increase was primarily attributable to the equity assumed in the merger, net of purchase accounting adjustments, partially offset by a net loss of $7.9 million and dividends paid of $4.4 million.

Tangible book value per share⁽¹⁾ decreased to $21.12 per share at September 30, 2024 from $24.08 per share at June 30, 2024 due to the purchase accounting adjustments associated with the merger.

The Company’s tangible common equity ratio decreased to 7.5% at September 30, 2024 from 8.1% at June 30, 2024 due to purchase accounting marks and a net loss recorded during the third quarter of 2024. The Company’s total risk-based capital ratio was 12.5% at September 30, 2024 compared to 13.3% at June 30, 2024. The Company’s Tier 1 leverage ratio was 8.0% at September 30, 2024 compared to 8.9% at June 30, 2024. The loan fair value adjustments are expected to accrete back through income and capital as the loans mature and should lead to earnings per share and capital accretion moving forward.

At September 30, 2024, all four capital ratios applicable to the Company were above regulatory minimum levels to be deemed “well capitalized” under current bank regulatory guidelines. The Company continues to believe that capital is adequate to support the risks inherent in the balance sheet, as well as growth requirements.

⁽¹⁾ Non-GAAP measure. See Appendix A for additional information.

Investor Relations Contact:

Neelesh Kalani

Executive Vice President, Chief Financial Officer

Phone (717) 510-7097

FINANCIAL HIGHLIGHTS (Unaudited)


	Three Months Ended						Nine Months Ended
	September 30,			September 30,			September 30,			September 30,
(In thousands)		2024			2023			2024			2023

Profitability for the period:
Net interest income	$	51,697		$	26,219		$	104,681		$	78,888
Provision for credit losses		13,681			136			14,791			1,264
Noninterest income		12,386			5,925			26,188			19,161
Noninterest expenses		60,299			20,447			105,407			61,451
(Loss) income before income tax (benefit) expense		(9,897	)		11,561			10,671			35,334
Income tax (benefit) expense		(1,994	)		2,535			2,305			7,314
Net (loss) income available to common shareholders	$	(7,903	)	$	9,026		$	8,366		$	28,020

Financial ratios:
Return on average assets ⁽¹⁾	(0.57)%				1.18	%		0.28	%		1.25	%
Return on average assets, adjusted ^{(1) (2) (3)}		1.55	%		1.18	%		1.33	%		1.25	%
Return on average equity ⁽¹⁾	(5.85)%				14.42	%		3.10	%		15.51	%
Return on average equity, adjusted ^{(1) (2) (3)}		15.85	%		14.42	%		14.59	%		15.51	%
Net interest margin ⁽¹⁾		4.14	%		3.73	%		3.88	%		3.83	%
Efficiency ratio		94.1	%		63.6	%		80.5	%		62.7	%
Efficiency ratio, adjusted ^{(2) (3)}		60.2	%		63.6	%		62.6	%		62.7	%
(Loss) income per common share:
Basic	$	(0.41	)	$	0.87		$	0.63		$	2.71
Basic, adjusted ^{(2) (3)}	$	1.12		$	0.87		$	2.96		$	2.71
Diluted	$	(0.41	)	$	0.87		$	0.62		$	2.68
Diluted, adjusted ^{(2) (3)}	$	1.11		$	0.87		$	2.93		$	2.68

Average equity to average assets		9.75	%		8.18	%		9.13	%		8.09	%

⁽¹⁾ Annualized for the three and nine months ended September 30, 2024 and 2023.
⁽²⁾ Ratio for the three and nine months ended September 30, 2024 has been adjusted for the non-recurring charges.
⁽³⁾ Non-GAAP based financial measure. Please refer to Appendix A – Supplemental Reporting of Non-GAAP Measures and GAAP to Non-GAAP Reconciliations for a discussion of our use of non-GAAP based financial measures, including tables reconciling GAAP and non-GAAP financial measures appearing herein.

FINANCIAL HIGHLIGHTS (Unaudited)
(continued)
	September 30,			December 31,
(Dollars in thousands, except per share amounts)		2024			2023
At period-end:
Total assets	$	5,470,589		$	3,064,240
Loans, net of allowance for credit losses		3,931,807			2,269,611
Loans held-for-sale, at fair value		3,561			5,816
Securities available for sale, at fair value		826,828			513,519
Total deposits		4,650,853			2,558,814
FHLB advances and other borrowings and Securities sold under agreements to repurchase		137,310			147,285
Subordinated notes and trust preferred debt		68,510			32,093
Shareholders’ equity		516,206			265,056

Credit quality and capital ratios ⁽¹⁾:
Allowance for credit losses to total loans		1.25	%		1.25	%
Total nonaccrual loans to total loans		0.68	%		1.11	%
Nonperforming assets to total assets		0.49	%		0.83	%
Allowance for credit losses to nonaccrual loans		184	%		112	%
Total risk-based capital:
Orrstown Financial Services, Inc.		12.5	%		13.0	%
Orrstown Bank		12.3	%		12.8	%
Tier 1 risk-based capital:
Orrstown Financial Services, Inc.		10.0	%		10.8	%
Orrstown Bank		11.1	%		11.6	%
Tier 1 common equity risk-based capital:
Orrstown Financial Services, Inc.		9.8	%		10.8	%
Orrstown Bank		11.1	%		11.6	%
Tier 1 leverage capital:
Orrstown Financial Services, Inc.		8.0	%		8.9	%
Orrstown Bank		8.8	%		9.5	%

Book value per common share	$	26.65		$	24.98

⁽¹⁾ Capital ratios are estimated for the current period, subject to regulatory filings. The Company elected the three-year phase in option for the day-one impact of ASU 2016-13 for current expected credit losses (“CECL”) to regulatory capital. Beginning in 2023, the Company adjusted retained earnings, allowance for credit losses includable in tier 2 capital and the deferred tax assets from temporary differences in risk weighted assets by the permitted percentage of the day-one impact from adopting the CECL standard.

CONSOLIDATED BALANCE SHEETS (Unaudited)

(Dollars in thousands, except per share amounts)	September 30, 2024			December 31, 2023
Assets
Cash and due from banks	$	65,064		$	32,586
Interest-bearing deposits with banks		171,716			32,575
Cash and cash equivalents		236,780			65,161
Restricted investments in bank stocks		20,247			11,992
Securities available for sale (amortized cost of $845,869 and $549,089 at September 30, 2024 and December 31, 2023, respectively)		826,828			513,519
Loans held for sale, at fair value		3,561			5,816
Loans		3,981,437			2,298,313
Less: Allowance for credit losses		(49,630	)		(28,702	)
Net loans		3,931,807			2,269,611
Premises and equipment, net		49,839			29,393
Cash surrender value of life insurance		142,895			73,204
Goodwill		70,655			18,724
Other intangible assets, net		46,144			2,414
Accrued interest receivable		20,562			13,630
Deferred tax assets, net		38,517			22,017
Other assets		82,754			38,759
Total assets	$	5,470,589		$	3,064,240

Liabilities
Deposits:
Noninterest-bearing	$	815,404		$	430,959
Interest-bearing		3,835,449			2,127,855
Total deposits		4,650,853			2,558,814
Securities sold under agreements to repurchase and federal funds purchased		21,932			9,785
FHLB advances and other borrowings		115,378			137,500
Subordinated notes and trust preferred debt		68,510			32,093
Other liabilities		97,710			60,992
Total liabilities		4,954,383			2,799,184

Shareholders’ Equity
Preferred stock, $1.25 par value per share; 500,000 shares authorized; no shares issued or outstanding		—			—
Common stock, no par value—$0.05205 stated value per share; 50,000,000 shares authorized; 19,723,217 shares issued and 19,373,354 outstanding at September 30, 2024; 11,204,599 shares issued and 10,612,390 outstanding at December 31, 2023		1,027			583
Additional paid—in capital		422,177			189,027
Retained earnings		117,311			117,667
Accumulated other comprehensive loss		(15,888	)		(28,476	)
Treasury stock— 349,863 and 592,209 shares, at cost at September 30, 2024 and December 31, 2023, respectively		(8,421	)		(13,745	)
Total shareholders’ equity		516,206			265,056
Total liabilities and shareholders’ equity	$	5,470,589		$	3,064,240

CONDENSED CONSOLIDATED STATEMENTS OF INCOME (Unaudited)

	Three Months Ended						Nine Months Ended
	September 30,			September 30,			September 30,		September 30,
(Dollars in thousands, except per share amounts)		2024			2023			2024		2023
Interest income
Loans	$	70,647		$	32,738		$	142,417	$	92,685
Investment securities – taxable		9,005			4,459			18,588		13,244
Investment securities – tax-exempt		883			861			2,641		2,591
Short-term investments		2,452			633			5,272		1,349
Total interest income		82,987			38,691			168,918		109,869
Interest expense
Deposits		28,603			10,582			57,384		25,392
Securities sold under agreements to repurchase and federal funds purchased		96			31			148		84
FHLB advances and other borrowings		1,154			1,354			3,780		3,992
Subordinated notes and trust preferred debt		1,437			505			2,925		1,513
Total interest expense		31,290			12,472			64,237		30,981
Net interest income		51,697			26,219			104,681		78,888
Provision for credit losses		13,681			136			14,791		1,264
Net interest income after provision for credit losses		38,016			26,083			89,890		77,624
Noninterest income
Service charges		2,360			1,260			4,843		3,668
Interchange income		1,779			963			3,651		2,921
Swap fee income		505			255			1,079		451
Wealth management income		5,037			2,826			11,451		8,395
Mortgage banking activities		491			(142	)		1,318		448
Investment securities gains (losses)		271			2			254		(8	)
Other income		1,943			761			3,592		3,286
Total noninterest income		12,386			5,925			26,188		19,161
Noninterest expenses
Salaries and employee benefits		27,190			12,885			54,137		38,135
Occupancy, furniture and equipment		4,333			2,460			9,677		7,059
Data processing		2,046			1,248			4,548		3,666
Advertising and bank promotions		537			332			1,709		1,656
FDIC insurance		862			477			1,722		1,500
Professional services		1,119			965			2,551		2,203
Taxes other than income		503			387			1,046		847
Intangible asset amortization		2,464			228			2,904		717
Merger-related expenses		16,977			—			18,784		—
Restructuring expenses		257			—			257		—
Other operating expenses		4,011			1,465			8,072		5,668
Total noninterest expenses		60,299			20,447			105,407		61,451
(Loss) income before income tax (benefit) expense		(9,897	)		11,561			10,671		35,334
Income tax (benefit) expense		(1,994	)		2,535			2,305		7,314
Net (loss) income	$	(7,903	)	$	9,026		$	8,366	$	28,020
continued

	Three Months Ended						Nine Months Ended
	September 30,			September 30,			September 30,		September 30,
		2024			2023			2024		2023
Share information:
Basic (loss) earnings per share	$	(0.41	)	$	0.87		$	0.63	$	2.71
Diluted (loss) earnings per share	$	(0.41	)	$	0.87		$	0.62	$	2.68
Dividends paid per share	$	0.23		$	0.20		$	0.63	$	0.60
Weighted average shares – basic		19,088			10,319			13,298		10,346
Weighted average shares – diluted		19,226			10,405			13,441		10,440

ANALYSIS OF NET INTEREST INCOME
Average Balances and Interest Rates, Taxable-Equivalent Basis (Unaudited)
	Three Months Ended
	9/30/2024							6/30/2024							3/31/2024							12/31/2023							9/30/2023
			Taxable-			Taxable-				Taxable-			Taxable-				Taxable-			Taxable-				Taxable-			Taxable-				Taxable-			Taxable-
(In	Average		Equivalent			Equivalent		Average		Equivalent			Equivalent		Average		Equivalent			Equivalent		Average		Equivalent			Equivalent		Average		Equivalent			Equivalent
thousands)	Balance		Interest			Rate		Balance		Interest			Rate		Balance		Interest			Rate		Balance		Interest			Rate		Balance		Interest			Rate
Assets
Federal funds sold & interest-bearing bank balances	$	184,465	$	2,452		5.29	%	$	142,868	$	1,864		5.25	%	$	74,523	$	956		5.16	%	$	37,873	$	460		4.82	%	$	57,778	$	633		4.35	%
Investment securities ⁽¹⁾⁽²⁾		849,700		10,123		4.77			538,451		6,114		4.54			519,851		5,694		4.39			508,891		5,890		4.63			521,234		5,548		4.26
Loans ^(1)(3)(4)(5)		3,989,259		70,849		7.07			2,324,942		35,690		6.17			2,308,103		36,382		6.34			2,286,678		34,055		5.91			2,256,727		32,878		5.78
Total interest-earning assets		5,023,424		83,424		6.61			3,006,261		43,668		5.84			2,902,477		43,032		5.96			2,833,442		40,405		5.67			2,835,739		39,059		5.47
Other assets		491,719							204,863							196,295							204,382							200,447
Total assets	$	5,515,143						$	3,211,124						$	3,098,772						$	3,037,824						$	3,036,186
Liabilities and Shareholders’ Equity
Interest-bearing demand deposits	$	2,554,743		16,165		2.52		$	1,649,753		10,118		2.47		$	1,570,622		9,192		2.35		$	1,543,575		8,333		2.14		$	1,541,728		7,476		1.92
Savings deposits		283,337		148		0.21			165,467		140		0.34			170,005		144		0.34			178,351		153		0.34			190,817		164		0.34
Time deposits		1,014,628		12,290		4.82			481,721		5,007		4.18			428,443		4,180		3.92			392,085		3,632		3.67			357,194		2,942		3.27
Total interest-bearing deposits		3,852,708		28,603		2.95			2,296,941		15,265		2.67			2,169,070		13,516		2.51			2,114,011		12,118		2.27			2,089,739		10,582		2.01
Securities sold under agreements to repurchase and federal funds purchased		23,075		96		1.66			13,412		27		0.81			12,010		25		0.85			13,874		30		0.85			15,006		31		0.83
FHLB advances and other borrowings		115,388		1,154		3.98			115,000		1,152		4.03			137,505		1,474		4.31			127,843		1,358		4.21			128,131		1,354		4.19
Subordinated notes and trust preferred debt		68,399		1,437		8.36			32,118		734		9.19			32,100		754		9.45			32,083		504		6.29			32,066		505		6.29
Total interest-bearing liabilities		4,059,570		31,290		3.07			2,457,471		17,178		2.81			2,350,685		15,769		2.70			2,287,811		14,010		2.43			2,264,942		12,472		2.19
Noninterest-bearing demand deposits		807,886							423,037							417,469							441,695							468,628
Other liabilities		110,017							57,828							62,329							59,876							54,353
Total liabilities		4,977,473							2,938,336							2,830,483							2,789,382							2,787,923
Shareholders’ equity		537,670							272,788							268,289							248,442							248,263
Total	$	5,515,143						$	3,211,124						$	3,098,772						$	3,037,824						$	3,036,186
Taxable-equivalent net interest income / net interest spread				52,134		3.55	%				26,490		3.02	%				27,263		3.26	%				26,395		3.24	%				26,587		3.29	%
Taxable-equivalent net interest margin						4.14	%						3.54	%						3.77	%						3.71	%						3.73	%
Taxable-equivalent adjustment				(437	)						(387	)						(382	)						(377	)						(368	)
Net interest income			$	51,697						$	26,103						$	26,881						$	26,018						$	26,219
Ratio of average interest-earning assets to average interest-bearing liabilities						124	%						122	%						123	%						124	%						125	%

NOTES:
⁽¹⁾ Yields and interest income on tax-exempt assets have been computed on a taxable-equivalent basis assuming a 21% tax rate.
⁽²⁾ Average balance of investment securities is computed at fair value.
⁽³⁾ Average balances include nonaccrual loans.
⁽⁴⁾ Interest income on loans includes prepayment and late fees, where applicable.
⁽⁵⁾ Interest income on loans includes interest recovered of $1.6 million from the payoff of a commercial real estate loan on nonaccrual status in the three months ended March 31, 2024.

ANALYSIS OF NET INTEREST INCOME
Average Balances and Interest Rates, Taxable-Equivalent Basis (Unaudited)
(continued)
	Nine Months Ended
	September 30, 2024							September 30, 2023
			Taxable-			Taxable-				Taxable-			Taxable-
	Average		Equivalent			Equivalent		Average		Equivalent			Equivalent
(In thousands)	Balance		Interest			Rate		Balance		Interest			Rate
Assets
Federal funds sold & interest-bearing bank balances	$	134,136	$	5,272		5.25	%	$	41,861	$	1,349		4.31	%
Investment securities ⁽¹⁾⁽²⁾		636,781		21,931		4.60			524,365		16,523		4.21
Loans ^(1)(3)(4)(5)		2,878,171		142,921		6.63			2,223,701		93,051		5.59
Total interest-earning assets		3,649,088		170,124		6.23			2,789,927		110,923		5.31
Other assets		298,334							196,694
Total assets	$	3,947,422						$	2,986,621
Liabilities and Shareholders’ Equity
Interest-bearing demand deposits	$	1,927,337		35,475		2.46		$	1,519,013		18,611		1.64
Savings deposits		206,552		432		0.28			204,832		431		0.28
Time deposits		642,959		21,477		4.46			320,000		6,350		2.65
Total interest-bearing deposits		2,776,848		57,384		2.76			2,043,845		25,392		1.66
Securities sold under agreements to repurchase and federal funds purchased		16,191		148		1.22			14,190		84		0.79
FHLB advances and other borrowings		122,604		3,780		4.12			122,300		3,992		4.36
Subordinated notes and trust preferred debt		44,294		2,925		8.82			32,049		1,513		6.29
Total interest-bearing liabilities		2,959,937		64,237		2.90			2,212,384		30,981		1.87
Noninterest-bearing demand deposits		550,407							480,006
Other liabilities		76,846							52,618
Total liabilities		3,587,190							2,745,008
Shareholders’ equity		360,232							241,613
Total liabilities and shareholders’ equity	$	3,947,422						$	2,986,621
Taxable-equivalent net interest income / net interest spread				105,887		3.33	%				79,942		3.44	%
Taxable-equivalent net interest margin						3.88	%						3.83	%
Taxable-equivalent adjustment				(1,206	)						(1,054	)
Net interest income			$	104,681						$	78,888
Ratio of average interest-earning assets to average interest-bearing liabilities						123	%						126	%

NOTES TO ANALYSIS OF NET INTEREST INCOME:
⁽¹⁾ Yields and interest income on tax-exempt assets have been computed on a taxable-equivalent basis assuming a 21% tax rate.
⁽²⁾ Average balance of investment securities is computed at fair value.
⁽³⁾ Average balances include nonaccrual loans.
⁽⁴⁾ Interest income on loans includes prepayment and late fees, where applicable.
⁽⁵⁾ Interest income on loans includes interest recovered of $1.6 million from the payoff of a commercial real estate loan on nonaccrual status for the nine months ended September 30, 2024.

HISTORICAL TRENDS IN QUARTERLY FINANCIAL DATA (Unaudited)

(In thousands)	September 30, 2024			June 30, 2024			March 31, 2024			December 31, 2023			September 30, 2023
Profitability for the quarter:
Net interest income	$	51,697		$	26,103		$	26,881		$	26,018		$	26,219
Provision for credit losses		13,681			812			298			418			136
Noninterest income		12,386			7,172			6,630			6,491			5,925
Noninterest expenses		60,299			22,639			22,469			22,392			20,447
(Loss) income before income taxes		(9,897	)		9,824			10,744			9,699			11,561
Income tax (benefit) expense		(1,994	)		2,086			2,213			2,056			2,535
Net (loss) income	$	(7,903	)	$	7,738		$	8,531		$	7,643		$	9,026

Financial ratios:
Return on average assets ⁽¹⁾	(0.57)%				0.97	%		1.11	%		1.00	%		1.18	%
Return on average assets, adjusted ^(1)(2)(3)		1.55	%		1.09	%		1.19	%		1.13	%		1.18	%
Return on average equity ⁽¹⁾	(5.85)%				11.41	%		12.79	%		12.21	%		14.42	%
Return on average equity, adjusted ^(1)(2)(3)		15.85	%		12.88	%		13.79	%		13.77	%		14.42	%
Net interest margin ⁽¹⁾		4.14	%		3.54	%		3.77	%		3.71	%		3.73	%
Efficiency ratio		94.1	%		68.0	%		67.0	%		68.9	%		63.6	%
Efficiency ratio, adjusted ⁽²⁾⁽³⁾		60.2	%		64.6	%		65.0	%		65.6	%		63.6	%

Per share information:
(Loss) income per common share:
Basic	$	(0.41	)	$	0.74		$	0.82		$	0.74		$	0.87
Basic, adjusted ⁽²⁾⁽³⁾		1.12			0.84			0.89			0.84			0.87
Diluted		(0.41	)		0.73			0.81			0.73			0.87
Diluted, adjusted ⁽²⁾⁽³⁾		1.11			0.83			0.88			0.83			0.87
Book value		26.65			25.97			25.38			24.98			22.90
Tangible book value⁽³⁾		21.12			24.08			23.47			23.03			20.94
Cash dividends paid		0.23			0.20			0.20			0.20			0.20

Average basic shares		19,088			10,393			10,349			10,321			10,319
Average diluted shares		19,226			10,553			10,482			10,419			10,405
⁽¹⁾ Annualized.
⁽²⁾ Ratio has been adjusted for non-recurring expenses for the three months ended September 30, 2024, June 30, 2024, March 31, 2024 and December 31, 2023.
⁽³⁾ Non-GAAP based financial measure. Please refer to Appendix A – Supplemental Reporting of Non-GAAP Measures and GAAP to Non-GAAP Reconciliations for a discussion of our use of non-GAAP based financial measures, including tables reconciling GAAP and non-GAAP financial measures appearing herein.

HISTORICAL TRENDS IN QUARTERLY FINANCIAL DATA (Unaudited)
(continued)
(In thousands)	September 30, 2024		June 30, 2024			March 31, 2024			December 31, 2023			September 30, 2023
Noninterest income:
Service charges	$	2,360	$	1,283		$	1,200		$	1,198		$	1,260
Interchange income		1,779		961			911			952			963
Swap fee income		505		375			199			588			255
Wealth management income		5,037		3,312			3,102			2,945			2,826
Mortgage banking activities		491		369			458			143			(142	)
Other income		1,943		884			765			704			761
Investment securities gains (losses)		271		(12	)		(5	)		(39	)		2
Total noninterest income	$	12,386	$	7,172		$	6,630		$	6,491		$	5,925

Noninterest expenses:
Salaries and employee benefits	$	27,190	$	13,195		$	13,752		$	12,848		$	12,885
Occupancy, furniture and equipment		4,333		2,705			2,639			2,534			2,460
Data processing		2,046		1,237			1,265			1,247			1,248
Advertising and bank promotions		537		774			398			501			332
FDIC insurance		862		419			441			460			477
Professional services		1,119		801			631			702			965
Taxes other than income		503		49			494			203			387
Intangible asset amortization		2,464		215			225			236			228
Merger-related expenses		16,977		1,135			672			1,059			—
Restructuring expenses		257		—			—			—			—
Other operating expenses		4,011		2,109			1,952			2,602			1,465
Total noninterest expenses	$	60,299	$	22,639		$	22,469		$	22,392		$	20,447

HISTORICAL TRENDS IN QUARTERLY FINANCIAL DATA (Unaudited)
(continued)
(In thousands)	September 30, 2024			June 30, 2024			March 31, 2024			December 31, 2023			September 30, 2023
Balance Sheet at quarter end:
Cash and cash equivalents	$	236,780		$	132,509		$	182,722		$	65,161		$	94,939
Restricted investments in bank stocks		20,247			11,147			11,453			11,992			12,987
Securities available for sale		826,828			529,082			514,909			513,519			495,162
Loans held for sale, at fair value		3,561			1,562			535			5,816			6,448
Loans:
Commercial real estate:
Owner occupied		622,726			371,301			364,280			373,757			376,350
Non-owner occupied		1,164,501			710,477			707,871			694,638			630,514
Multi-family		276,296			151,542			147,773			150,675			143,437
Non-owner occupied residential		190,786			89,156			91,858			95,040			100,391
Commercial and industrial		601,469			374,976			365,524			367,085			374,190
Acquisition and development:
1-4 family residential construction		56,383			32,439			22,277			24,516			25,642
Commercial and land development		262,317			129,883			118,010			115,249			153,279
Municipal		27,960			10,594			10,925			9,812			10,334
Total commercial loans		3,202,438			1,870,368			1,828,518			1,830,772			1,814,137
Residential mortgage:
First lien		451,195			271,153			270,748			266,239			248,335
Home equity – term		6,508			4,633			4,966			5,078			5,223
Home equity – lines of credit		303,165			192,736			189,966			186,450			188,736
Installment and other loans		18,131			8,713			8,875			9,774			10,405
Total loans		3,981,437			2,347,603			2,303,073			2,298,313			2,266,836
Allowance for credit losses		(49,630	)		(29,864	)		(29,165	)		(28,702	)		(28,278	)
Net loans held for investment		3,931,807			2,317,739			2,273,908			2,269,611			2,238,558
Goodwill		70,655			18,724			18,724			18,724			18,724
Other intangible assets, net		46,144			1,974			2,189			2,414			2,650
Total assets		5,470,589			3,198,782			3,183,331			3,064,240			3,054,435
Total deposits		4,650,853			2,702,884			2,695,951			2,558,814			2,546,435
FHLB advances and other borrowings and and Securities sold under agreements to repurchase		137,310			129,625			127,099			147,285			175,241
Subordinated notes and trust preferred debt		68,510			32,128			32,111			32,093			32,076
Total shareholders’ equity		516,206			278,376			271,682			265,056			243,080

HISTORICAL TRENDS IN QUARTERLY FINANCIAL DATA (Unaudited)
(continued)
	September 30, 2024			June 30, 2024			March 31, 2024			December 31, 2023			September 30, 2023
Capital and credit quality measures⁽¹⁾:
Total risk-based capital:
Orrstown Financial Services, Inc.		12.5	%		13.3	%		13.4	%		13.0	%		13.0	%
Orrstown Bank		12.3	%		13.1	%		13.1	%		12.8	%		12.5	%
Tier 1 risk-based capital:
Orrstown Financial Services, Inc.		10.0	%		11.1	%		11.2	%		10.8	%		10.6	%
Orrstown Bank		11.1	%		12.0	%		11.9	%		11.6	%		11.4	%
Tier 1 common equity risk-based capital:
Orrstown Financial Services, Inc.		9.8	%		11.1	%		11.2	%		10.8	%		10.6	%
Orrstown Bank		11.1	%		12.0	%		11.9	%		11.6	%		11.4	%
Tier 1 leverage capital:
Orrstown Financial Services, Inc.		8.0	%		8.9	%		9.0	%		8.9	%		8.7	%
Orrstown Bank		8.8	%		9.5	%		9.6	%		9.5	%		9.3	%

Average equity to average assets		9.75	%		8.50	%		8.66	%		8.18	%		8.18	%
Allowance for credit losses to total loans		1.25	%		1.27	%		1.27	%		1.25	%		1.25	%
Total nonaccrual loans to total loans		0.68	%		0.36	%		0.56	%		1.11	%		0.98	%
Nonperforming assets to total assets		0.49	%		0.26	%		0.40	%		0.83	%		0.73	%
Allowance for credit losses to nonaccrual loans		184	%		357	%		226	%		112	%		127	%

Other information:
Net charge-offs (recoveries)	$	269		$	113		$	(42	)	$	(6	)	$	241
Classified loans		105,465			48,722			48,997			55,030			33,593
Nonperforming and other risk assets:
Nonaccrual loans		26,927			8,363			12,886			25,527			22,324
Other real estate owned		138			—			—			—			—
Total nonperforming assets		27,065			8,363			12,886			25,527			22,324
Financial difficulty modifications still accruing		9,497			—			—			9			—
Loans past due 90 days or more and still accruing		337			187			99			66			277
Total nonperforming and other risk assets	$	36,899		$	8,550		$	12,985		$	25,602		$	22,601
(1) Capital ratios are estimated for the current period, subject to regulatory filings. The Company elected the three-year phase in option for the day-one impact of ASU 2016-13 for current expected credit losses (“CECL”) to regulatory capital. Beginning in 2023, the Company adjusted retained earnings, allowance for credit losses includable in tier 2 capital and the deferred tax assets from temporary differences in risk weighted assets by the permitted percentage of the day-one impact from adopting the new CECL standard.

Appendix A- Supplemental Reporting of Non-GAAP Measures and GAAP to Non-GAAP Reconciliations

Management believes providing certain other “non-GAAP” financial information will assist investors in their understanding of the effect on recent financial results from non-recurring charges.

As a result of acquisitions, the Company has intangible assets consisting of goodwill, core deposit and other intangible assets, which totaled $116.8 million and $21.1 million at September 30, 2024 and December 31, 2023, respectively. In addition, during the three months ended September 30, 2024, June 30, 2024, March 31, 2024 and December 31, 2023, the Company incurred $17.0 million, $1.1 million, $0.7 million and $1.1 million in merger-related expenses, respectively. During the three months ended September 30, 2024, the Company incurred other non-recurring charges totaling $20.2 million.

Tangible book value per common share and the impact of the non-recurring expenses on net income and associated ratios, as used by the Company in this earnings release, are determined by methods other than in accordance with U.S. Generally Accepted Accounting Principles (“GAAP”). While we believe this information is a useful supplement to GAAP based measures presented in this earnings release, readers are cautioned that this non-GAAP disclosure has limitations as an analytical tool, should not be viewed as a substitute for financial measures determined in accordance with GAAP, and should not be considered in isolation or as a substitute for analysis of our results and financial condition as reported under GAAP, nor are such measures necessarily comparable to non-GAAP performance measures that may be presented by other companies. This supplemental presentation should not be construed as an inference that our future results will be unaffected by similar adjustments to be determined in accordance with GAAP.

The following tables present the computation of each non-GAAP based measure:

(In thousands)

Tangible Book Value per Common Share	September 30, 2024			June 30, 2024			March 31, 2024			December 31, 2023			September 30, 2023
Shareholders’ equity (most directly comparable GAAP-based measure)	$	516,206		$	278,376		$	271,682		$	265,056		$	243,080
Less: Goodwill		70,655			18,724			18,724			18,724			18,724
Other intangible assets		46,144			1,974			2,189			2,414			2,650
Related tax effect		(9,690	)		(415	)		(460	)		(507	)		(557	)
Tangible common equity (non-GAAP)	$	409,097		$	258,093		$	251,229		$	244,425		$	222,263

Common shares outstanding		19,373			10,720			10,705			10,612			10,613

Book value per share (most directly comparable GAAP-based measure)	$	26.65		$	25.97		$	25.38		$	24.98		$	22.90
Intangible assets per share		5.53			1.89			1.91			1.95			1.96
Tangible book value per share (non-GAAP)	$	21.12		$	24.08		$	23.47		$	23.03		$	20.94

(In thousands)	Three Months Ended															Nine Months Ended
Adjusted Ratios for Non-recurring Charges	September 30, 2024			June 30, 2024			March 31, 2024			December 31, 2023			September 30, 2023			September 30, 2024			September 30, 2023
Net (loss) income (A) – most directly comparable GAAP-based measure	$	(7,903	)	$	7,738		$	8,531		$	8,531		$	9,026		$	8,366		$	28,020
Plus: Merger-related expenses (B)		16,977			1,135			672			672			—			18,784			—
Plus: Executive retirement expenses (B)		4,758			—			—			—			—			4,758			—
Plus: Provision for credit losses on non-PCD loans (B)		15,504			—			—			—			—			15,504			—
Less: Related tax effect (C)		(7,915	)		(139	)		(1	)		(1	)		—			(8,056	)		—
Adjusted net (loss) income (D=A+B-C) – Non-GAAP	$	21,421		$	8,734		$	9,202		$	9,202		$	9,026		$	39,356		$	28,020

Average assets (E)	$	5,515,143		$	3,211,124		$	3,098,772		$	3,098,772		$	3,036,186		$	3,947,422		$	2,986,621
Return on average assets (= A / E) – most directly comparable GAAP-based measure ⁽¹⁾	(0.57)%				0.97	%		1.11	%		1.11	%		1.18	%		0.28	%		1.25	%
Return on average assets, adjusted (= D / E) – Non-GAAP ⁽¹⁾		1.55	%		1.09	%		1.19	%		1.19	%		1.18	%		1.33	%		1.25	%

Average equity (F)	$	537,670		$	272,788		$	268,289		$	268,289		$	248,263		$	360,232		$	241,613
Return on average equity (= A / F) – most directly comparable GAAP-based measure ⁽¹⁾	(5.85)%				11.41	%		12.79	%		12.79	%		14.42	%		3.10	%		15.51	%
Return on average equity, adjusted (= D / F) – Non-GAAP ⁽¹⁾		15.85	%		12.88	%		13.79	%		13.79	%		14.42	%		14.59	%		15.51	%

Weighted average shares – basic (G) – most directly comparable GAAP-based measure		19,088			10,393			10,349			10,349			10,319			13,298			10,346
Basic (loss) earnings per share (= A / G) – most directly comparable GAAP-based measure	$	(0.41	)	$	0.74		$	0.82		$	0.82		$	0.87		$	0.63		$	2.71
Basic earnings per share, adjusted (= D / G) – Non-GAAP	$	1.12		$	0.84		$	0.89		$	0.89		$	0.87		$	2.96		$	2.71

Weighted average shares – diluted (H) – most directly comparable GAAP-based measure		19,226			10,553			10,482			10,482			10,405			13,441			10,440
Diluted (loss) earnings per share (= A / H) – most directly comparable GAAP-based measure	$	(0.41	)	$	0.73		$	0.81		$	0.81		$	0.87		$	0.62		$	2.68
Diluted earnings per share, adjusted (= D / H) – Non-GAAP	$	1.11		$	0.83		$	0.88		$	0.88		$	0.87		$	2.93		$	2.68

continued
(1) Annualized

	Three Months Ended															Nine Months Ended
	September 30, 2024			June 30, 2024			March 31, 2024			December 31, 2023			September 30, 2023			September 30, 2024			September 30, 2023
Noninterest expense (I) – most directly comparable GAAP-based measure	$	60,299		$	22,639		$	22,469		$	22,469		$	20,447		$	105,407		$	61,451
Less: Merger-related expenses (B)		(16,977	)		(1,135	)		(672	)		(672	)		—			(18,784	)		—
Less: Executive retirement expenses (B)		(4,758	)		—			—			—			—			(4,758	)		—
Adjusted noninterest expense (J = I – B) – Non-GAAP	$	38,564		$	21,504		$	21,797		$	21,797		$	20,447		$	81,865		$	61,451

Net interest income (K)	$	51,697		$	26,103		$	26,881		$	26,881		$	26,219		$	104,681		$	78,888
Noninterest income (L)		12,386			7,172			6,630			6,630			5,925			26,188			19,161
Total operating income (M = K + L)	$	64,083		$	33,275		$	33,511		$	33,511		$	32,144		$	130,869		$	98,049

Efficiency ratio (= I / M) – most directly comparable GAAP-based measure		94.1	%		68.0	%		67.0	%		67.0	%		63.6	%		80.5	%		62.7	%
Efficiency ratio, adjusted (= J / M) – Non-GAAP		60.2	%		64.6	%		65.0	%		65.0	%		63.6	%		62.6	%		62.7	%



(1) Annualized

Appendix B- Investment Portfolio Concentrations

The following table summarizes the credit ratings and collateral associated with the Company’s investment security portfolio, excluding equity securities, at September 30, 2024:

(In thousands)

Sector	Portfolio Mix		Amortized Book		Fair Value		Credit Enhancement		AAA		AA		A		BBB		NR		Collateral / Guarantee Type
Unsecured ABS	—	%	$	3,199	$	2,975	27	%	—	%	—	%	—	%	—	%	100	%	Unsecured Consumer Debt
Student Loan ABS	1			4,348		4,283	27		—		—		—		—		100		Seasoned Student Loans
Federal Family Education Loan ABS	10			83,199		82,962	11		7		80		—		13		—		Federal Family Education Loan ⁽¹⁾
PACE Loan ABS	—			2,034		1,813	7		100		—		—		—		—		PACE Loans ⁽²⁾
Non-Agency CMBS	2			13,750		14,045	26		—		—		—		—		100
Non-Agency RMBS	2			16,749		14,212	16		100		—		—		—		—		Reverse Mortgages ⁽³⁾
Municipal – General Obligation	12			99,779		93,395			11		82		7		—		—
Municipal – Revenue	14			121,130		112,705			—		82		12		—		6
SBA ReRemic ⁽⁵⁾	—			2,427		2,409			—		100		—		—		—		SBA Guarantee ⁽⁴⁾
Small Business Administration	1			6,632		7,042			—		100		—		—		—		SBA Guarantee ⁽⁴⁾
Agency MBS	18			154,058		154,762			—		100		—		—		—		Residential Mortgages ⁽⁴⁾
Agency CMO	38			316,385		315,677			—		100		—		—		—
U.S. Treasury securities	2			20,047		18,373			—		100		—		—		—		U.S. Government Guarantee ⁽⁴⁾
Corporate bonds	—			1,932		1,975			—		—		52		48		—
	100	%	$	845,669	$	826,628			4	%	89	%	3	%	1	%	3	%

⁽¹⁾ 97% guaranteed by U.S. government
⁽²⁾ PACE acronym represents Property Assessed Clean Energy loans
⁽³⁾ Non-agency reverse mortgages with current structural credit enhancements
⁽⁴⁾ Guaranteed by U.S. government or U.S. government agencies
⁽⁵⁾ SBA ReRemic acronym represents Re-Securitization of Real Estate Mortgage Investment Conduits

Note: Ratings in table are the lowest of the six rating agencies (Standard & Poor’s, Moody’s, Fitch, Morningstar, DBRS and Kroll Bond Rating Agency). Standard & Poor’s rates U.S. government obligations at AA+.

About the Company

With $5.5 billion in assets, Orrstown Financial Services, Inc. and its wholly-owned subsidiary, Orrstown Bank, provide a wide range of consumer and business financial services in Berks, Cumberland, Dauphin, Franklin, Lancaster, Perry, and York Counties, Pennsylvania and Anne Arundel, Baltimore, Harford, Howard, and Washington Counties, Maryland, as well as Baltimore City, Maryland. The Company’s lending area also includes adjacent counties in Pennsylvania and Maryland, as well as Loudon County, Virginia and Berkeley, Jefferson and Morgan Counties, West Virginia. Orrstown Bank is an Equal Housing Lender and its deposits are insured up to the legal maximum by the FDIC. Orrstown Financial Services, Inc.’s common stock is traded on Nasdaq (ORRF). For more information about Orrstown Financial Services, Inc. and Orrstown Bank, visit http://www.orrstown.com.

Cautionary Note Regarding Forward-Looking Statements

This press release contains “forward-looking statements” within the meaning of Section 27A of the Securities Act and Section 21E of the Exchange Act. Forward-looking statements reflect the current views of the Company’s management with respect to, among other things, future events and the Company’s financial performance. These statements are often, but not always, made through the use of words or phrases such as “may,” “should,” “could,” “predict,” “potential,” “believe,” “will likely result,” “expect,” “continue,” “will,” “anticipate,” “seek,” “estimate,” “intend,” “plan,” “project,” “forecast,” “goal,” “target,” “would” and “outlook,” or the negative variations of those words or other comparable words of a future or forward-looking nature. These forward-looking statements are not historical facts, and are based on current expectations, estimates, predictions or projections about events or the Company’s industry, management’s beliefs and certain assumptions made by management, many of which, by their nature, are inherently uncertain and beyond the Company’s control. Accordingly, the Company cautions you that any such forward-looking statements are not guarantees of future performance and are subject to risks, assumptions and uncertainties that are difficult to predict. Although the Company believes that the expectations reflected in these forward-looking statements are reasonable as of the date made, actual results may prove to be materially different from the results expressed or implied by the forward-looking statements and there can be no assurances that the Company will achieve the desired level of new business development and new loans, growth in the balance sheet and fee-based revenue lines of business, cost savings initiatives and continued reductions in risk assets or mitigation of losses in the future. Factors which could cause the actual results of the Company’s operations to differ materially from expectations include, but are not limited to: general economic conditions (including inflation and concerns about liquidity) on a national basis or in the local markets in which the Company operates; ineffectiveness of the Company’s strategic growth plan due to changes in current or future market conditions; changes in interest rates; the diversion of management’s attention from ongoing business operations and opportunities; the effects of competition and how it may impact our community banking model, including industry consolidation and development of competing financial products and services; changes in consumer behavior due to changing political, business and economic conditions, or legislative or regulatory initiatives; changes in laws and regulations; changes in credit quality; inability to raise capital, if necessary, under favorable conditions; volatility in the securities markets; the demand for our products and services; deteriorating economic conditions; geopolitical tensions; operational risks including, but not limited to, cybersecurity incidents, fraud, natural disasters and future pandemics; expenses associated with litigation and legal proceedings; the possibility that the anticipated benefits of the merger with Codorus (the “Merger”) are not realized when expected or at all; the possibility that the Merger may be more expensive to complete than anticipated; the possibility that revenues following the Merger may be lower than expected; potential adverse reactions or changes to business or employee relationships, including those resulting from the completion of the Merger; the ability to complete the integration of the two companies successfully; the dilution caused by the Company’s issuance of additional shares of its capital stock in connection with the Merger; and other risks and uncertainties, including those detailed in our Annual Report on Form 10-K for the year ended December 31, 2023 under the sections titled “Risk Factors” and “Management’s Discussion and Analysis of Financial Condition and Results of Operations” and in subsequent filings made with the Securities and Exchange Commission.

The foregoing list of factors is not exhaustive. If one or more events related to these or other risks or uncertainties materializes, or if the Company’s underlying assumptions prove to be incorrect, actual results may differ materially from what the Company anticipates. Accordingly, you should not place undue reliance on any such forward-looking statements. Any forward-looking statement speaks only as of the date on which it is made, and the Company disclaims any obligation to publicly update or review any forward-looking statement, whether as a result of new information, future developments or otherwise. New risks and uncertainties arise from time to time, and it is not possible for the Company to predict those events or how they may affect it. In addition, the Company cannot assess the impact of each factor on its business or the extent to which any factor, or combination of factors, may cause actual results to differ materially from those contained in any forward-looking statements. All forward-looking statements, expressed or implied, included in this press release are expressly qualified in their entirety by this cautionary statement. This cautionary statement should also be considered in connection with any subsequent written or oral forward-looking statements that the Company or persons acting on the Company’s behalf may issue.

The review period for subsequent events extends up to and includes the filing date of a public company’s financial statements, when filed with the Securities and Exchange Commission. Accordingly, the consolidated financial information presented in this announcement is subject to change. Annualized, pro forma, projected and estimated numbers in this document are used for illustrative purposes only and are not forecasts and may not reflect actual results.

The MIL Network –

January 24, 2025

MIL-OSI Economics: Verizon updates broadband strategy to bring more choice, flexibility and value to millions

Source: Verizon

Headline: Verizon updates broadband strategy to bring more choice, flexibility and value to millions

Key Takeaways:

Verizon reaches fixed wireless access subscriber target 15 months ahead of schedule
Customer demand for broadband solutions accelerates fixed wireless and fiber rollout
Fixed wireless subscribers on path to double to 8-9 million by 2028
Fiber network expected to expand to 35-40 million passings over time

NEW YORK, N.Y. – Verizon Communications Inc. (NYSE, Nasdaq: VZ) today announced an update to its broadband strategy, with new fixed wireless subscriber goals, household targets and broadband offerings to accelerate its premium broadband and mobility services to millions more customers nationwide. Verizon has more than 11.9 million total broadband connections as of the end of third-quarter 2024, up nearly 16 percent year over year. The update was given today at a sell side analyst event following the release of the company’s third-quarter 2024 results.

“This is a game changing moment for Verizon and for connectivity across the country,” said Hans Vestberg, Verizon Chairman and CEO. “Our ambitious targets for fixed wireless access, combined with our fiber expansion including the planned Frontier acquisition, will bring unmatched broadband coverage to millions more homes and businesses nationwide. We are creating an integrated connectivity experience that gives customers freedom in how they connect and use our services. This is about delivering the network of the future, and setting a new bar for the entire industry.”

Fixed Wireless subscribers on path to double by 2028

At the end of third-quarter 2024, the company had nearly 4.2 million fixed wireless subscribers, representing an increase of nearly 57 percent year over year. The company hit its previous goal of 4-5 million subscribers 15 months earlier than expected due to the demand from consumer and business customers as they continue to trust the reliability of the product and speed and ease of deployment.
Verizon is expecting 8-9 million fixed wireless subscribers, doubling its current base, by 2028 and accelerating coverage to 90 million households in the same time period.
Verizon will commercially launch its advanced mmWave solution for apartment and office buildings to address high population areas. The technology leverages existing infrastructure making it less expensive to build and faster to deploy. Continued deployment of C-band and mmWave will provide the performance and capacity needed to meet these goals and deliver the best-in-class experience that customers expect from Verizon.

Fiber network expected to grow to 35-40 million passings

Verizon will continue to look for opportunities to accelerate its ongoing Fios builds within the current footprint in nine states and Washington, D.C., giving more customers access to the industry-leading product. Verizon’s recent agreement to acquire Frontier, the largest pure-play fiber internet provider in the U.S., is expected to expand Verizon’s share of the nationwide broadband market, building upon Verizon’s two decades of leadership at the forefront of fiber.
Upon closing, Frontier is expected to bring in approximately 9-10 million fiber passings.
In 2025 Verizon is targeting an expansion of Fios builds to up to 650,000 passings annually. Following the closing of the Frontier acquisition, Verizon expects the combined build to be up to 1 million or more passings annually.
Verizon is expecting more than 30 million fiber passings in the combined Verizon/Frontier footprint by 2028. Over time, Verizon is expecting 35-40 million fiber passings. This will significantly expand Verizon’s fiber footprint, accelerating the company’s delivery of premium mobility and broadband services to current and new customers.
Frontier’s consumer fiber network can be immediately and seamlessly integrated upon closing directly into Verizon’s award-winning Fios network, meeting existing Fios standards.

Outlook and Guidance: Priorities remain unchanged

The company will maintain its capital allocation priorities, characterized by prudent investment in the business, a commitment to maintaining an industry-leading dividend, continued debt reduction, and efficient return of cash to shareholders, with buybacks to be considered when net unsecured debt to adjusted EBITDA ratio* is at 2.25x.
For 2025, the company expects capital expenditures of $17.5-$18.5 billion, consistent with historical levels of capital intensity.
Revised net unsecured debt to adjusted EBITDA ratio* target of 2.0 to 2.25x.

*Non-GAAP financial measure. See http://www.verizon.com/about/investors for additional information about non-GAAP financial measures.

Forward-Looking Statements

In this communication we have made forward-looking statements. These statements are based on our estimates and assumptions and are subject to risks and uncertainties. Forward-looking statements include the information concerning our possible or assumed future results of operations. Forward-looking statements also include those preceded or followed by the words “anticipates,” “assumes,” “believes,” “estimates,” “expects,” “forecasts,” “hopes,” “intends,” “plans,” “targets” or similar expressions. For those statements, we claim the protection of the safe harbor for forward-looking statements contained in the Private Securities Litigation Reform Act of 1995. We undertake no obligation to revise or publicly release the results of any revision to these forward-looking statements, except as required by law. Given these risks and uncertainties, readers are cautioned not to place undue reliance on such forward-looking statements. The following important factors, along with those discussed in our filings with the Securities and Exchange Commission (the “SEC”), could affect future results and could cause those results to differ materially from those expressed in the forward-looking statements: the effects of competition in the markets in which we operate, including the inability to successfully respond to competitive factors such as prices, promotional incentives and evolving consumer preferences; failure to take advantage of, or respond to competitors’ use of, developments in technology and address changes in consumer demand; performance issues or delays in the deployment of our 5G network resulting in significant costs or a reduction in the anticipated benefits of the enhancement to our networks; the inability to implement our business strategy; adverse conditions in the U.S. and international economies, including inflation and changing interest rates in the markets in which we operate; cyber attacks impacting our networks or systems and any resulting financial or reputational impact; damage to our infrastructure or disruption of our operations from natural disasters, extreme weather conditions, acts of war, terrorist attacks or other hostile acts and any resulting financial or reputational impact; disruption of our key suppliers’ or vendors’ provisioning of products or services, including as a result of geopolitical factors or the potential impacts of global climate change; material adverse changes in labor matters and any resulting financial or operational impact; damage to our reputation or brands; the impact of public health crises on our operations, our employees and the ways in which our customers use our networks and other products and services; changes in the regulatory environment in which we operate, including any increase in restrictions on our ability to operate our networks or businesses; allegations regarding the release of hazardous materials or pollutants into the environment from our, or our predecessors’, network assets and any related government investigations, regulatory developments, litigation, penalties and other liability, remediation and compliance costs, operational impacts or reputational damage; our high level of indebtedness; significant litigation and any resulting material expenses incurred in defending against lawsuits or paying awards or settlements; an adverse change in the ratings afforded our debt securities by nationally accredited ratings organizations or adverse conditions in the credit markets affecting the cost, including interest rates, and/or availability of further financing; significant increases in benefit plan costs or lower investment returns on plan assets; changes in tax laws or regulations, or in their interpretation, or challenges to our tax positions, resulting in additional tax expense or liabilities; changes in accounting assumptions that regulatory agencies, including the SEC, may require or that result from changes in the accounting rules or their application, which could result in an impact on earnings; and risks associated with mergers, acquisitions and other strategic transactions, including our ability to consummate the proposed acquisition of Frontier Communications Parent, Inc. and obtain cost savings, synergies and other anticipated benefits within the expected time period or at all.

MIL OSI Economics –

January 24, 2025

MIL-OSI Economics: Dot plots for the Eurosystem? | Speech at Harvard University

Source: Bundesbank

Check against delivery.

1 Introduction

Ladies and gentlemen,

it is a great pleasure to be at Harvard again, to meet long time companions like Hans-Helmut Kotz and to exchange ideas with top scientists such as Benjamin Friedman. When I was in this round two years ago, we were dealing with an unprecedented global inflation spike.[1] Fortunately, the worst is behind us, and inflation in the euro area is heading back to the Eurosystem’s target. We have not brought the inflation ship safely back into the 2% harbour, but the port is in sight. Thus, I can focus on another question today.

Before I do that, let me share an analogy to set the stage for my discussion. Back in the 1970s and 1980s, the field of economics was split into two seemingly incompatible schools of thought: New Keynesian and New Classical. Their proponents were not too polite in their language, calling assumptions “foolishly restrictive” or comparing an opponent to someone attempting to pass himself off as Napoleon Bonaparte.[2] But, over time, ideas from both camps ultimately merged to form a consensus called the New Neoclassical Synthesis, the very foundation of modern macroeconomics.[3] Gregory Mankiw neatly described this story in his essay “The Macroeconomist as Scientist and Engineer”.[4]

The takeaway from this analogy is that complex issues are rarely black or white. With this in mind, I want to explore whether the conduct of monetary policy in the euro area could be enhanced by offering more detailed and nuanced information regarding its future outlook. More specifically, today I will address the following question: Should the Eurosystem introduce dot plots?

To explore this, I will first examine current experience with dot plots and other forms of forward guidance in both the United States and the euro area. I will then evaluate the advantages and disadvantages of incorporating dot plots into the Eurosystem’s communication strategy. In this analysis, I will concentrate on the implications for policymakers’ independence, the effectiveness of monetary policy and the management of uncertainty.

2 The dot plot and other forms of forward guidance

Let me begin with some basics. Most central banks in advanced economies have a clear mandate to keep prices stable. They do this mainly by setting the policy rate and communicating their decisions in order to manage the expectations of economic agents, including market participants, households and firms. When central banks provide explicit signals about the future path of the policy rate, we call it forward guidance.

We can classify forward guidance into two ideal types: “Odyssean” and “Delphic”.[5] Odyssean forward guidance means the central bank makes a firm commitment to a future course of action, like promising to keep interest rates at a certain level for a certain time. Like Odysseus, who famously tied himself to the mast of his ship to resist the call of the sirens, central banks are committing to staying on course – whatever the future brings.

In contrast, Delphic forward guidance is conditional and involves sharing information about the central bank’s economic outlook and policy intentions without making firm commitments. This term comes from the Oracle of Delphi, famous for its prophecies and predictions, which were so ambiguous and open to interpretation that they always seemed to be borne out in hindsight. A prime example of Delphic forward guidance is the policy rate forecasts published by central banks such as Norges Bank and Sweden’s Riksbank.

A more subtle way of monetary policy communication is through the central bank’s reaction function. A reaction function indicates how the central bank adjusts its policy rate in response to key macroeconomic variables like the inflation rate or economic growth. When economic agents have a clear understanding of this reaction function, communication about the expected development of these macroeconomic variables can also help shape their expectations regarding the future trajectory of the policy rate.

2.1 The Fed’s dot plot

To consider if the Eurosystem should introduce dot plots, let me briefly recall what the Fed dot plots are and how market observers view them. Twelve years ago, the Fed began publishing the federal funds rate projections of the Federal Open Market Committee (FOMC) participants. Its intention was to boost transparency and communication with financial markets and the general public. On the other side of the Atlantic, the Eurosystem has, from its inception, held public press conferences and published monetary policy statements, the minutes of its meetings, and the results of its quarterly macroeconomic projections.

As you are well aware, before the FOMC meeting, FOMC participants share their individual assessment of the appropriate level of the fed funds rate for the end of the current year, the end of the coming two to three years and over the longer run. The longer run projection refers to “each participant’s assessment of the value to which each variable would be expected to converge, over time, under appropriate monetary policy and in the absence of further shocks to the economy.”[6]

Due to its visual representation in the Summary of Economic Projections (SEP), the combined projections of all FOMC members are known as the dot plot. These dots complement the FOMC participants’ projections for GDP growth, unemployment and inflation. While each FOMC participant submits their funds rate projection together with corresponding projections for macroeconomic variables, these correspondences are not revealed by the SEP. Accordingly, market observers cannot directly link the interest rate projections to the projections of the other macro variables.

The dot plot was meant to complement the Fed’s communication, not to replace the forward guidance it provided in the monetary policy statement at that time during the press conference. For example, in January 2012, the FOMC statement provided explicit forward guidance on rates, saying that the Committee “[…] anticipates that economic conditions […] are likely to warrant exceptionally low levels for the federal funds rate at least through late 2014.”[7] During the accompanying press conference, Chairman Ben Bernanke introduced the dot plot, observing that “[…] eleven participants expect that the appropriate federal funds rate at the end of 2014 will be at or below 1 percent, while six participants anticipate higher rates at that time.”[8]

Although the Federal Reserve did not introduce the dot plots as an explicit tool for forward guidance, many market analysts began to interpret them as such. When the forward guidance in the statement and the dot plot sent mixed signals, FOMC chairs often downplayed the dot plot’s importance.

In 2014, Janet Yellen famously stated: “[…] one should not look to the dot plot, so to speak, as the primary way in which the Committee wants to or is speaking about policy […].”[9] Similarly, in 2019, Jerome Powell noted that “[…] the dot plot has, on occasion, been a source of confusion. Until now, forward guidance in the statement has been a main tool for communicating committee intentions and minimizing that confusion.”[10]

And this is also how Fed watchers now see the dot plot, ranking it as the Fed’s fifth most important communication tool.[11] The top communication tools are the press conference, the Summary of Economic Projections (excluding the dots), the FOMC statement, and speeches by the chair.

Numerous studies show that the Fed has successfully used monetary policy communication to influence long-term interest rates and other asset prices.[12] And some research suggests that the dot plots significantly and independently influence market interest rates. [13] But there is a fundamental issue about these results: it is very challenging to determine how much each communication channel contributes to the overall effect.

To identify the causal effect of monetary policy, scholars often define a so-called event window around central banks’ monetary policy meetings. Changes in market interest rates during this event window are then attributed to monetary policy.

But there is a problem: when the dot plot is released, it is published together with the monetary policy statement. That makes it hard to determine which one caused the interest rate changes observed during the event. And because of this, it is unclear whether those channels actually provide complementary information or are just substitutes.

2.2 Monetary policy communication at the Eurosystem

So, what does the Eurosystem’s monetary policy communication look like? The Eurosystem began using explicit forward guidance in the introductory statement to its July 2013 meeting. At that time, inflation in the euro area was low, and the Eurosystem expected underlying price pressures to stay subdued in the medium term. Interest rates were already at the effective zero lower bound.

To provide further accommodation, the ECB’s Governing Council, which is the counterpart of the FOMC, announced in its July 2013 meeting that it “expects the key ECB interest rates to remain at present or lower levels for an extended period of time.”[14] The Governing Council continued to use variations of this statement for almost a decade. And there is now also ample evidence that the Eurosystem has been successful in implementing its forward guidance.[15]

With the resurgence of inflation in 2021 and high uncertainty caused by major shocks and structural changes, the Eurosystem shifted to a data-dependent, meeting-by-meeting approach, largely stepping away from explicit forward guidance.

More specifically, we now base our interest rate decisions on three elements: first, our assessment of the inflation outlook in light of the incoming economic and financial data, second, the dynamics of underlying inflation, and third, the strength of monetary policy transmission. These three elements can be seen as a further specification of our reaction function. However, the Governing Council does not pre-commit to any specific rate path.

Taken together, apart from the publication of the dot plot, the approaches to monetary policy communication taken by the Federal Reserve System and the Eurosystem are largely comparable. Both institutions regard the monetary policy statement and the press conference as their primary communication tools. And both central banks have recently shifted from explicit forward guidance towards a data-dependent meeting-by-meeting approach.

But the Eurosystem also continues to provide signals about future policy rates. It simply does it more implicitly. For example, the wording of the monetary policy statement and the answers of the ECB President during press conferences provide insights into future policy rates. As do speeches and interviews given by Governing Council members. Additionally, the Eurosystem influences market expectations through its quarterly staff projections.[16]

Unlike some other central banks, the Eurosystem uses the interest rate implied by financial market prices on a specific cut-off day as a conditioning assumption for its macroeconomic projections. Specifically, this means that our medium-term inflation forecast aligns with market expectations for a particular policy rate path. Market participants can subsequently compare the exogenous path for the policy rate, as embedded in our macroeconomic projections, with our actual monetary policy decisions, in order to gain insights into our reaction function.

You could say that the Eurosystem provides Athenian communication. Athena was known as the Goddess of wisdom and as a protector and guide to many Greek heroes. Rather than communicating directly with those she protected, Athena often used indirect guidance. And through her subtle guidance, Athena empowered the heroes she protected to take decisive action and make wise choices.

3 A dot plot for the Eurosystem?

Now, let us get to the heart of the matter. Should the Eurosystem introduce dot plots? Although this question can only be answered “yes” or “no”, complex issues are rarely black and white, as mentioned earlier.

In the following, rather than simply listing the pros and cons of introducing dot plots in the Eurosystem, I will structure my discussion around three themes: First, the impact dot plots could have on the independence of the Eurosystem. Second, the potential for dot plots to improve the effectiveness of our monetary policy communication. And third, the role dot plots could play in capturing projection uncertainty around our baseline forecasts.

Throughout, I will only consider adding projections for the policy rates to the existing macroeconomic projections by Eurosystem staff. For simplicity, I will not consider whether to also complement our current consensus projections for macroeconomic variables with individual macroeconomic projections.

3.1 Independence

Let me begin with the theme of independence. The ECB’s Governing Council consists of the six ECB Executive Board members and the 20 governors of the euro area’s national central banks. Although this setting may resemble that of the Federal Open Market Committee, which includes Federal Reserve Bank Presidents, there is a significant difference.

The euro area is not composed of regions within a single country but of individual countries within a larger union, each with its own fiscal authority and national laws, as well as considerable differences in economic size and performance. Therefore, within the Governing Council we have a strong interest in finding and communicating a consensus perspective. This is, for example, enshrined in our statute, which states that the proceedings of the meetings of the Governing Council are confidential.

When we discussed introducing ECB accounts from our Governing Council meetings – comparable to the published minutes of FOMC meetings – about a decade ago, we aimed to balance two things: On the one hand, to clearly articulate the consensus perspective. Yet on the other hand to represent the full spectrum of views in order to help market participants better understand the ECB Governing Council’s decision-making process.[17]

In the end, the Eurosystem decided to represent the full spectrum of the discussion without naming individuals. Nevertheless, despite the anonymity of the arguments presented, markets and the media alike continue to attempt to discern the identities of the individuals behind them. Given that numerous members of the Governing Council express their views on monetary policy through speeches and interviews, identifying their positions is not a particular challenge.

If there were anonymous dot plots of Governing Council members, media and the markets alike would probably attempt to match individual members to each dot as well. The primary distinction between speeches and dot plots is that Governing Council members deliver speeches voluntarily. In contrast, dot plots would force all Governing Council members to regularly articulate their perspectives on the future trajectory of interest rates. And this could potentially influence the Governing Council’s independence.

Once national stakeholders become aware of “their” representative’s views on future interest rates, they may exert pressure on the representative to align with national interests. I am confident that, even if we were to publish dot plots, every member of the Governing Council would continue to act independently and in the best interests of the entire euro area. However, I believe we are well advised not to put ourselves in a situation that might increase pressure on us to act in ways others want us to.

3.2 Effectiveness of monetary policy communication

My second theme is whether a dot plot could significantly enhance the Eurosystem’s effectiveness of monetary policy communication. And here I am sceptical. To begin with, there is the previously discussed issue: the dot plot may conflict with the consensus message conveyed in the monetary policy statement. But the main reason for my scepticism is that comparative studies on different methods of monetary policy communication are inconclusive.

A BIS working paper shows that interest rate projections provide additional information to macroeconomic projections, meaning that they are not redundant.[18] That could be seen as an argument for introducing dot plots. However, while market participants in countries that publish both interest rate projections and macroeconomic projections prefer the former, they might still be able to obtain sufficient information from macroeconomic projections alone.

Furthermore, research on central bank communication in Norway and Sweden shows that publishing interest rate projections has not improved market understanding of what new macroeconomic information implies for future interest rate.[19] In other words, the publication of interest rate paths did not help market participants better understand the central banks’ reaction functions.

This finding aligns with research published by the Reserve Bank of New Zealand that shows that announcements with interest rate forecasts and those with only written statements lead to similar market reactions across the yield curve.[20] The authors pointedly conclude that, while central bank communication is important, the exact form it takes is less relevant.

This result echoes a seminal study by Blinder and co-authors, who concluded back in 2008 that there was no consensus on what constitutes an optimal communication strategy.[21]

All things considered, I see no compelling evidence that the Eurosystem’s monetary policy communication would be significantly enhanced by the introduction of a dot plot.

3.3 Projection uncertainty

Now to the third and final theme – uncertainty. I am quite sure that the Eurosystem has room to improve how we handle projection uncertainty. Currently, the ECB’s Governing Council summarises its view on the uncertainty surrounding economic growth and inflation in the risk assessment section of its monetary policy statement. More specifically, the Eurosystem addresses the uncertainty around its baseline inflation forecast in two ways.[22]

First, it produces fan charts with symmetric ranges around the point forecast, based on past projection errors. In this setup, past projection errors act as a catch-all proxy for uncertainty. Second, it occasionally publishes risk scenarios, conditional on assumptions different from those in the baseline projection. For instance, during the pandemic, the Eurosystem began using alternative assumptions about the future path of infections and contact restrictions to illustrate macroeconomic uncertainty.

Could the use of dot plots enhance the communication of inflation forecast uncertainty within the Eurosystem? Given that dot plots offer only an indirect method for conveying uncertainty about the inflation outlook, there may be more effective alternatives.

One might be to enhance the communication of our existing measures of uncertainty. Another might be to develop new measures, such as scenario and sensitivity analyses, as well as improved fan charts. We must carefully evaluate the pros and cons of each approach.

Hence, it is quite fitting that the Eurosystem is currently performing an interim strategic review, which includes an analysis of how risk and uncertainty should inform both policy decisions and policy communication. I’m already looking forward to the results.

4 Conclusion

Ladies and gentlemen, let me conclude. I began my talk by discussing different schools of thought – New Keynesian and New Classical – and argued that complex issues are rarely black or white. When it comes to central bank communication about the future, there are certainly many promising approaches. And, undoubtedly, dot plots are an intriguing instrument for central bank communication.

However, given the prevailing evidence, I do not see a compelling case for introducing dot plots for the Eurosystem.

On the other hand, I firmly believe that we can and should enhance how we account for uncertainty in our macroeconomic projections. I have outlined a few options which the Eurosystem will address in the ongoing strategy review.

Footnotes:

Nagel, J. (2022), The ECB’s mandate: maintaining price stability in the euro area, speech at the Minda de Gunzburg Center for European Studies, Harvard University.
Mankiw, G. (2006), The Macroeconomist as Scientist and Engineer, Journal of Economic Perspectives, Vol. 20(4), pp. 29-46.
Goodfriend, M. and R. King (1997), The New Neoclassical Synthesis and the Role of Monetary Policy, in: NBER Macroeconomics Annual, Bernanke, B. and J. Rotemberg (eds.), MIT Press, pp. 231-283.
Mankiw, G. (2006), op. cit.
Campbell, J. et al. (2012), Macroeconomic Effects of Federal Reserve Forward Guidance, Brookings Papers on Economic Activity, Vol. 43(1), pp. 1-80. Another distinction is between time-dependent (or calendar-dependent) and state-dependent forward guidance. The former ties monetary policy to a specific time frame, whereas the latter ties future policy actions to specific economic conditions or thresholds. The concepts can overlap and be used in combination.
SEP: Compilation and Summary of Individual Economic Projections, 24-25 January 2012.
FOMC Statement, 25 January 2012.
Bernanke, B. (2012), Transcript of Chairman Bernanke’s Press Conference, 25 January 2012,
Yellen, J. (2014), Transcript of Chair Yellen’s Press Conference, 19 March 2014.
Powell, J. (2019), Monetary Policy: Normalization and the Road Ahead, speech at the SIEPR Economic Summit, Stanford Institute of Economic Policy Research, Stanford, California.
Wessel, D. and S. Boocker (2024), Federal Reserve communication – survey results, Hutchins Center on Fiscal and Monetary Policy at Brookings.
See, for example, Gürkaynak, R. et al. (2005), Do Actions Speak Louder Than Words? The Response of Asset Prices to Monetary Policy Actions and Statements, International Journal of Central Banking, International Journal of Central Banking, Vol. 1(1), pp. 55-93; Wright, J. (2012), What Does Monetary Policy Do to Long‐term Interest Rates at the Zero Lower Bound?, Economic Journal, Vol. 122(564), pp. 447-466; and Swanson, E. (2021), Measuring the effects of federal reserve forward guidance and asset purchases on financial markets, Journal of Monetary Economics, Vol. 118(C), pp. 32-53.
See, for example, Couture, C. (2021), Financial market effects of FOMC projections, Journal of Macroeconomics, Vol. 67 and Hillenbrand, S. (2023), The Fed and the Secular Decline in Interest Rates, Accepted, Review of Financial Studies.
Draghi, M. and V. Constâncio (2013), Introductory statement to the press conference (with Q&A), Frankfurt am Main, 4 July 2013.
See, for example, Altavilla, C. et al. (2021), Assessing the efficacy, efficiency and potential side effects of the ECB’s monetary policy instruments since 2014, ECB Occasional Paper, No. 278; Andrade, P. and F. Ferroni (2021), Delphic and Odyssean monetary policy shocks: Evidence from the euro area, Journal of Monetary Economics, Vol. (117), pp. 816-832; Kerssenfischer, M. (2022), Information effects of euro area monetary policy, Economics Letters, Vol. 216(C); and Monetary Policy Committee, Taskforce on Rate Forward Guidance and Reinvestment (2022), Rate forward guidance in an environment of large central bank balance sheets: A Eurosystem stock-taking assessment, ECB Occasional Paper No. 290.
The Eurosystem produces macroeconomic projections four times a year. ECB staff produces them in March and September. In June and December, they are co-produced by ECB and national central bank staff.
See Morris, S. and H. Shin (2005): Central Bank Transparency and the Signal Value of Prices, Brookings Papers on Economic Activity, Vol.36(2), pp. 1-66 for a general treatment of the role of transparency.
Hofmann, B. and D. Xia (2022), Quantitative forward guidance through interest rate projections, BIS Working Paper No. 1009.
Natvik, G. et al. (2020), Does publication of interest rate paths provide guidance?, Journal of International Money and Finance, Vol. 103.
Detmers, G.-A (2021), Quantitative or Qualitative Forward Guidance: Does it Matter?, Economic Record, Vol. 97(319), pp. 491-503.
Blinder, A. et al. (2008), Central Bank Communication and Monetary Policy: A Survey of Theory and Evidence, Journal of Economic Literature, Vol. 46(4), pp. 910-945.
See ECB (2024), ECB staff macroeconomic projections for the euro area, March 2023, box 6 for a rundown.

MIL OSI Economics –

January 24, 2025

MIL-OSI Economics: Breaking the vicious circle between banks and sovereigns for good | Joint guest contribution by Joachim Nagel and Nicolas Véron, op-ed for Politicoby Politico

Source: Bundesbank

Twelve years after its initiation, it is time to complete the banking union

In the early hours of 29 June 2012, boldness and clarity came together. After a long night of negotiations, European leaders laid the foundations for the banking union project. They found strong and clear words on its purpose, stating it is imperative to break the vicious circle between banks and sovereigns.

The decision was taken in the aftermath of a twin crisis that had shaken the euro area – a sovereign debt crisis coupled with a banking crisis. The close links between sovereigns and banks had created a “doom loop”: sovereigns bailed out teetering banks, straining public finances, and rising sovereign yields put pressure on banks’ home-biased sovereign exposures. Such loops emerged as a particular vulnerability of the euro area, with its unique institutional setup as a monetary union of otherwise sovereign states, increasing the pressure on the Eurosystem to save the day. The banking union was conceived as the sword that would sever the doom loop.

Today’s banking union is primarily the result of intensive legislative efforts between 2012 and 2014. They established a complete framework for supervising European banks, and an incomplete one for dealing with banking crises. This helped to mitigate the vicious circle, in particular by creating the Single Supervisory Mechanism under the European Central Bank and the national supervisory authorities. That has proven its effectiveness, but the vicious circle has not yet been broken.

Before the lessons of 2012 are forgotten, the new EU term offers an opportunity to finish the task and break the vicious circle between banks and sovereigns for good. Action must go both ways. First, block the direct contagion channel from banks to sovereigns. Taxpayers should not have to suffer when banks run into problems. Second, close the contagion channel from sovereigns to banks. A sovereign credit event cannot and should not be ruled out in a monetary union with sovereign fiscal policies at the national level. At the same time, it must not be permitted to drag down banks with it and thus further jeopardise financial stability.

The first aim calls for strengthening the crisis intervention framework. Valuable progress has been made with the establishment of the Single Resolution Board and the Single Resolution Fund. The latter reached its target level, currently at €78 billion, after a decade of build-up. However, a more streamlined and predictable framework is needed. Specifically, resolution should be a credible and feasible option to manage more, if not all, failing banks under EU law, instead of the current confusing mix of European and national procedures that leaves too much scope for national state aid and moral hazard.

The reform of the framework for crisis management is closely linked to deposit insurance. A common European deposit insurance mechanism would strengthen confidence in depositor protection and thus reduce the risk of bank runs. It is intended to weaken the link between banks and their national sovereigns and thus to contribute to making the euro area as a whole more resilient. The two of us have different views on how it should be structured, whether fully centralised or a hybrid involving national authorities. However, we share the firm conviction that deposit protection needs a European level. All banks in the euro area should participate in it. Its funding can and should be risk-based, taking into account arrangements such as the institutional protection schemes that play a significant role in Austria and Germany.

Under that mechanism, certain risks would be shouldered jointly within the EU. Conversely, risks that are within the remit of the individual Member States must be appropriately limited. To reduce negative spillovers from sovereigns to banks – the second aim – it is crucial to avoid large and undiversified exposures of bank balance sheets to a single sovereign. Concentration limits and capital charges can serve as effective tools here. With adequate calibration and a transition phase, these tools could incentivise banks to diversify their sovereign exposures, thereby gradually overcoming home bias.

As it turns out, the issues of crisis management, deposit insurance and banks’ sovereign exposures are intertwined. Attempts to make progress have so far failed, not least because they were not comprehensive enough. Part of why the European Commission’s 2015 legislative proposal on deposit insurance was shelved is because banks’ concentrated sovereign exposures were not tackled at the same time. It seems that Member States are unwilling to make concessions if the outcome is merely a halfway house. A comprehensive approach that addresses the interlinked issues holistically is worth considering. It could complete the work that began with a promise twelve years ago – to break the vicious circle between banks and sovereigns.

Nicolas Véron is a French economist. He is a senior fellow at Bruegel in Brussels, which he co-founded in 2002–05, and at the Peterson Institute for International Economics in Washington DC.

MIL OSI Economics –

January 24, 2025

MIL-OSI Asia-Pac: Indian art offers a model of inclusivity in a divided world: Vice-President Shri Jagdeep Dhankhar

Source: Government of India

Indian art offers a model of inclusivity in a divided world: Vice-President Shri Jagdeep Dhankhar

Bharat is a gold mine of fine arts, says Vice-President at the Concluding Ceremony of International Festival on Indian Dance

Under the leadership of Prime Minister Narendra Modi India achieved global acceptance in the area of Dance, Culture, Yoga, Ayush and Indian Music: Shri Gajendra Singh Shekhawat

Posted On: 21 OCT 2024 9:30PM by PIB Delhi

Indian art, particularly dance, offers a model of inclusivity in a world increasingly divided by conflicts and discord, said Vice-President of India Shri Jagdeep Dhankhar. He emphasized the power of India’s rich cultural heritage to unite people across boundaries, stating, “In a world grappling with conflicts, transgressions, and discord, Indian art offers a ray of light. When the tunnel is filled with challenges and divisiveness, it is culture, dance, and music that unite us across barriers. Howsoever divisive the world may be, the unity brought about by our culture is impregnable, soothing, and lasting.”

Addressing the gathering at the International Festival on Indian Dance, organized by the Sangeet Natak Akademi in collaboration with the Ministry of Culture and the Indian Council for Cultural Relations (ICCR), the Vice-President said, “Performing arts have the power to unite, heal, inspire, and motivate. Dance artists are cultural and peace ambassadors, promoting dialogue and laying the groundwork for soothing diplomatic maneuvers. Dance is a great facet of cultural diplomacy, fostering understanding and connection across boundaries.”

Shri Dhankhar hailed India’s cultural richness, noting, “Bharat is a gold mine of fine arts. Our cultural revival integrates ancient wisdom with contemporary practices, further cementing India’s image as a cultural powerhouse. The world witnessed this during our G20 Presidency, where our culture was showcased as a feast for the senses. Culture, dance, and music are the universal languages of mankind, understood and appreciated globally.”

On this occasion, Union Minister of Culture and Tourism Shri Gajendra Singh Shekhawat expressed gratitude to Vice President Shri Jaideep Dhankhar for his esteemed presence, and also

extended a warm welcome to Lok Sabha, MP, Smt. Hema Malini, Padma Vibhushan recipient Ms. Padma Subrahmanyam, the Chairperson of Sangeet Natak Akademi, Dr. Sandhya Purecha and thanked them for their contribution towards India’s dance traditions.

Speaking on the occasion, Union Minister of Culture and Tourism said that this ‘Maha Kumbh’ of our culture that lasted for 6 days is a symbol of India’s cultural diversity and prosperity. The event has paved the way for not only a beautiful display of art, but also narrations, lectures and discussions on various subjects related to art.

Addressing the gathering, the Minister said, “You all have proposed 14 such topics and points of resolution which will serve as a guide for the Ministry of Culture of India in the coming times and will make a big contribution in re-establishing and showcasing India’s cultural importance on the global stage.”

Further, he evoked Acharya Dhananjay and his great work ‘Dasharupakam’, and said, “He had talked about ‘Bhavaasrayam Nrityam’, meaning ‘dance is all about bhaava’. In this great tradition of ours, ‘bhaava’ was indeed the most prominent element in the history of humanity, which deeply embedded the sentiment of public welfare and global brotherhood.”

He also said that under the leadership of Prime Minister Narendra Modi, not only has India achieved global acceptance in the area of dance and culture, but also in the fields of Indian Yoga, our Ayush tradition and medical system, Indian music and Indian knowledge systems. The Minister added that dance, done with utmost sincerity, can definitely establish unity with the universal conscience and at the same time further enrich India’s role as a beacon for the world.

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MIL OSI Asia Pacific News –

January 24, 2025

MIL-OSI United Nations: Experts of the Human Rights Committee Commend Greece on Measures Taken for Unaccompanied Minors, Raise Questions on Domestic Violence and Allegations of Border Pushbacks

Source: United Nations – Geneva

The Human Rights Committee today concluded its consideration of the third periodic report of Greece on how it implements the provisions of the International Covenant on Civil and Political Rights. Committee Experts commended Greece for the measures taken for unaccompanied minors, while raising questions on domestic violence, and allegations of pushbacks at the border.

One Committee Expert said the Committee welcomed measures taken by the State party, including the establishment of the Special Secretariat for the Protection of Unaccompanied Minors, the Emergency Response Mechanism, and law 4960/2022 on the establishment of a National Guardianship System for unaccompanied minors. The Committee also appreciated the national protection strategy (2021–2025) and the mechanism for unaccompanied children living in precarious conditions.

Another Expert asked how the State party addressed the root causes of gender-based violence? Was there a comprehensive strategy to prevent, raise awareness on, and respond to gender-based violence? Was there mandatory and continuous capacity building for judges, prosecutors, and other law enforcement officials about gender-based violence?

A Committee Expert said numerous reports documented instances of pushbacks by the Hellenic police and Hellenic coast guards, including patterns of excessive use of force, cruel, inhuman and degrading treatment, incommunicado detention, and unlawful destruction of personal belongings. How would Greece ensure thorough, systematic, effective, and independent investigations into allegations of pushbacks and hold those responsible accountable? Reports before the Committee indicated that from January 2020 to June 2024, there were 1,452 incidents at the borders affecting approximately 46,649 people. What measures were being taken to ensure that border control operations prioritised the protection of life and that rescue efforts were conducted in compliance with human rights?

The delegation said violence against women had increased significantly during the pandemic. In April 2020, there was a significant increase of more than 200 per cent regarding phone calls to the hotline for reporting violence. Psychosocial support was provided upon request, including both online and in-person. An awareness raising campaign was launched in 2024 and was displayed in the Athens urban rail network. A panic button application was launched, enabling women in immediate danger to call for help in a safe manner by pressing a button on their phone which was linked to the police.

The delegation said pushbacks were not the policy of the Greek Government in any way, shape, or form; the Government policy was clear. Actions taken by Hellenic authorities at the sea borders were carried out in full compliance with international obligations. Allegations on so-called pushbacks were not compatible with the well-established operations of the Hellenic authorities. However, any allegations of pushbacks or mistreatment of third country nationals were thoroughly investigated. From 2015 to the present, the Hellenic coast guards had rescued more than 254,000 people. Several mechanisms allowed complaints against pushbacks to be submitted to the Hellenic authorities, and the coast guards had a robust disciplinary mechanism.

Introducing the report, Katerina Patsogianni, Secretary General for Equality and Human Rights, Ministry of Social Cohesion and Family of Greece and head of the delegation, said in recent years, Greece had confronted the combined effects of the economic crisis, the migration crisis, and the COVID-19 pandemic. The country was now on a path to long-term progress and sustainability, benefiting its human rights framework. Greece had developed one of Europe’s most efficient asylum services and continued to improve its capacities and infrastructure. The fight against human trafficking was a top priority for authorities, who worked closely with non-governmental organizations in a strategic alliance.

In concluding remarks, Ioannis Ghikas, Permanent Representative of Greece to the United Nations Office at Geneva, thanked the Committee for the frank and honest exchange. Greece had worked hard to improve the situation, particularly on migration; the number of deaths in the Aegean Sea had fallen by 40 per cent. Greece had a vibrant society with few resources but was working to do better.

Tania María Abdo Rocholl, Committee Chairperson, thanked the delegation for the dialogue, which had covered a wide range of subjects under the Covenant. The Committee aimed to ensure the highest level of implementation of the Covenant in Greece.

The delegation of Greece was made up of representatives of the Ministry of Foreign Affairs; the Ministry of Social Cohesion and Family; the Ministry of Justice; the Ministry of Citizen Protection; the Ministry of Maritime Affairs and Insular Policy; the Ministry of Migration and Asylum; the Ministry of National Defence; the Ministry of Interior; the Ministry of Education, Religious Affairs and Sports; the Ministry of Health; the Presidency of the Government; and the Permanent Mission of Greece to the United Nations Office at Geneva.

The Human Rights Committee’s one hundred and forty-second session is being held from 14 October to 7 November 2024. All the documents relating to the Committee’s work, including reports submitted by States parties, can be found on the session’s webpage. Meeting summary releases can be found here. The webcast of the Committee’s public meetings can be accessed via the UN Web TV webpage.

The Committee will next meet in public at 3 p.m. on Tuesday, 22 October, to begin its consideration of the sixth periodic report of France (CCPR/C/FRA/6).

Report

The Committee has before it the third periodic report of Greece (CCPR/C/GRC/3).

Presentation of Report

IOANNIS GHIKAS, Permanent Representative of Greece to the United Nations Office at Geneva, said since the last review, Greece had made significant progress in key areas, including the protection of vulnerable groups, ensuring gender equality, and promoting human rights safeguards. Despite unprecedented challenges, Greece had remained committed to protecting and promoting human rights and looked forward to the Committee’s recommendations.

KATERINA PATSOGIANNI, Secretary General for Equality and Human Rights, Ministry of Social Cohesion and Family of Greece and head of the delegation, said in recent years, Greece had confronted the combined effects of the economic crisis, the migration crisis, and the COVID-19 pandemic. The country was now on a path to long-term progress and sustainability, benefiting its human rights framework. Faced with the COVID-19 pandemic, Greece implemented restrictive measures to curb the spread of the disease, which were proportionate, non-discriminatory, and scientifically evaluated. At the same time, the authorities enacted policies to protect public health and mitigate the social and economic effects of the pandemic. The National Vaccination Programme ran smoothly and efficiently, targeting specific and vulnerable groups. Following recommendations to improve policy coordination, Greece launched national human rights action plans with input from independent bodies and civil society.

Significant progress had been made on gender equality, including ratifying the Council of Europe Convention on Violence against Women and the International Labour Organization Convention on Sexual Harassment in the Workplace. The Labour Inspection Body was now an independent authority, and the Greek Ombudsperson’s role in equal treatment had been strengthened. In 2019, Greece introduced a comprehensive legal framework to promote gender equality. The new national action plan 2026-2030 would guide future policies with civil society input.

This year marked a significant milestone for the rights of lesbian, gay, bisexual, transgender and intersex persons, with the enactment of marriage equality for all, without gender discrimination. On the rights of the child, key policy actions were focused on strengthening foster care and adoption, preventing child abuse, and setting rules for child protection units and childcare centres.

Greece was actively implementing the Roma National Strategy 2021–2030, guided by the principle “for the Roma, with the Roma.” Key committees, including the Roma Forum, were fully operational. All available European Union funding was being used to enhance Roma’s employment, education, healthcare, and housing participation. Harsher penalties now applied to crimes with racist characteristics. The National Council against Racism and Intolerance, an inter-ministerial body with the participation of independent bodies, adopted the first national action plan in December 2020.

For persons with disabilities, Greece established a National Accessibility Authority and was developing a national strategy for 2024-2030. Key policies included deinstitutionalisation and a personal assistant programme for independent living. A 2023 law improved access to justice for persons with disabilities and removed derogatory language from the legislation. Additionally, the Ministry of Health had enacted legislation for psychiatric reform, shifting from institutional to community-based care.

Greece had developed one of Europe’s most efficient asylum services and continued to improve its capacities and infrastructure. Since 2021, the National Emergency Response Mechanism had supported thousands of unaccompanied minors in precarious conditions. This year, Greece launched the new national guardianship system to serve vulnerable asylum applicants better at the first reception stage. In 2023, the General Secretariat of Vulnerable People and Institutional Protection was established in the Ministry of Migration and Asylum to address challenges faced by vulnerable refugees and migrants.

Greek law enforcement authorities fulfilled their border protection responsibilities in compliance with domestic, European and international law. Allegations regarding violations of the principle of non-refoulement at land or sea borders did not correspond to the operational activities of law enforcement agencies. Greece applied a firm policy for the effective monitoring of fundamental rights and the assessment of complaints of ill treatment at the border, comprised of internal disciplinary procedures; prosecutorial supervision under criminal law; and independent monitoring by the Greek Ombudsman and the National Transparency Authority. In addition, a Special Committee for Compliance with Fundamental Rights and the position of the Fundamental Rights Officer were established in the Ministry of Migration and Asylum in 2022.

The fight against human trafficking was a top priority for authorities, who worked closely with non-governmental organizations in a strategic alliance. In 2019, the National Referral Mechanism for trafficking victims was launched, which trained staff on standard operating procedures for victim protection, including in reception and identification centres. A key development in the field of justice was the recent reform of the judicial map for civil and criminal courts, which aimed to reorganise courts geographically, streamline procedures, and speed up case resolution. Greece had also undertaken several key initiatives to further develop a resilient and pluralistic media ecosystem, focusing on protecting, ensuring safety, and empowering journalists. Ms. Patsogianni expressed gratitude for being able to engage in a constructive and frank dialogue with the Committee.

Questions by Committee Experts

A Committee Expert said the Committee noted that awareness raising on the Covenant was part of training activities for judges, lawyers and law enforcement officials. What were the channels used by the State party, the number of beneficiaries of these training courses, and the number of cases in which the provisions of the Covenant were invoked by the national courts? What measures were taken by Greece to ensure the full implementation of the Committee’s views, including by providing victims with an effective remedy for the violation of their rights in several cases in the courts?

According to the information received, the measures taken by the State party during the COVID-19 pandemic had particularly wider implications for the human rights of asylum seekers, refugees and migrants, who were subject to mandatory quarantine, late vaccinations, lack of access to vaccination for certain groups, and policing people’s movements. To what extent and how long were asylum procedures suspended due to restrictions imposed as a result of the COVID-19 pandemic? Could figures be provided on the number criminal investigations opened, and prosecutions and convictions of the perpetrators of domestic violence and femicide committed during the prolonged COVID-19 quarantine? What measures had been taken by the State party to ensure effective reparation for the damage suffered by the victims?

The Committee welcomed the decision taken by the Court of Appeal of Athens in a landmark judgment handed down on 7 October 2020 against the neo-Nazi party “Golden Dawn”, which was described as a criminal organization. The report also provided figures on the number of alleged racist incidents. However, information received indicated that there was not enough prosecution to punish the perpetrators of the wrongdoings. What measures were being taken to encourage victims of discrimination to report the situation to authorities? How was it ensured that victims of hate crimes had access to support services?

Another Expert said the Committee appreciated the adoption of several laws, including amendments to the whistleblower protection law, increasing the fines for foreign bribery offenses, as well as the creation of new anti-corruption institutions, including the National Transparency Authority in 2019. However, the Committee was concerned about the limited practical impact of these reforms. Could statistics on corruption efforts be provided, including the number of investigations, prosecutions and convictions in corruption cases? How did the State party ensure thorough and impartial investigations into all allegations of corruption, regardless of the officials or institutions involved? Could more information on technical initiatives be provided? How were whistleblower protection mechanisms being implemented?

The Committee remained concerned about the use of excessive force during pushbacks of migrants and asylum seekers, including instances of pointing guns, hitting with batons, slapping, and pushing asylum seekers. Could the State party comment on these reports? Could the State party also comment on allegations that no investigations had been conducted into police violence against Roma communities nearly five years after the incidents?

The Committee commended Greece for adopting the 10-year national action plan for mental health in 2023, and for adopting law 5129/2024 for the completion of the psychiatric reform. What steps were being taken to reduce overcrowding and improve the overall quality and supervision of psychiatric care? How was the State party working to improve the capacity of the Committee for the Protection of the Rights of People with Psychosocial Disability and the Health Quality Assurance Body?

While the Committee commended Greece for making the reduction of involuntary hospitalisations a priority, how did the State party ensure that patients being evaluated for involuntary commitment were provided with appropriate legal safeguards. How was the State party working to reduce the total number of involuntary commitments to psychiatric care? The Committee was concerned by the use of physical and chemical restraints in psychiatric care; what was being done to ensure that the use of restraints was properly regulated and minimised.

One Committee Expert said the Committee welcomed measures taken by the State party, including the establishment of the Special Secretariat for the Protection of Unaccompanied Minors, the Emergency Response Mechanism, and law 4960/2022 on the establishment of a National Guardianship System for unaccompanied minors. The Committee also appreciated the national protection strategy (2021–2025) and the mechanism for unaccompanied children living in precarious conditions. It was hoped these measures were robust and effective.

However, the Committee had been informed that unaccompanied minors were still sometimes detained in police stations and subjected to heavy restrictions of movement. How did the State party ensure that short-term detention and restrictions did not amount to a disproportionate limitation of the rights to liberty, security, and freedom of movement of unaccompanied minors? The Committee was aware of the National Guardianship System for unaccompanied minors and of the Hippocrates project on medical and psychosocial services. How would the State party ensure that the system and project had sufficient resources to be effective, that available guardians were appointed, and that services would be provided in practice? How did Greece ensure that the age determination procedure was multidisciplinary, scientifically based, harmonised across the country, and used only in cases of serious doubts about the claimed age?

The Committee understood that law 4800/2021 allowed perpetrators of domestic violence or sexual offences to retain child custody and unrestricted contact with their children until they were convicted by a first instance court. What measures had Greece taken to protect the safety of women and children who were forced into contact with alleged abusers under shared custody arrangements? It was understood that in cases of imminent danger to a child’s mental or physical health, a prosecutor could take immediate protection measures for up to 90 days and renewable. How often was this measure taken? How well-known was this option to prosecutors and lawyers, as well as to women and children involved? Why did Greece decide not to include femicide as a crime within the law? What other measures had it taken to protect women against femicide? What measures had been taken to increase the availability of shelters across the country?

Could the State party inform the Committee on how it addressed the root causes of gender-based violence? Was there a comprehensive strategy to prevent, raise awareness on, and respond to gender-based violence? Was there mandatory and continuous capacity building for judges, prosecutors, and other law enforcement officials about gender-based violence? The Committee had received information that Greek coast guards were involved in incidents where women, including pregnant women, were beaten and sexually assaulted. What concrete measures had the State party taken to protect women from assaults and to prosecute and punish perpetrators?

Another Expert welcomed information from the State party regarding measures taken to improve conditions in reception and detention centres. However, reports indicated that migrants and asylum seekers continued to be held in poor and prison-like conditions of detention, and that their living conditions may be considered as amounting to inhuman and degrading treatment. What measures did Greece plan to take to address inadequate conditions of detention in reception and detention centres? Did the State party have any policies in place to ensure adequate resources were available for migrants and asylum seekers at times of increased arrivals? What steps would Greece take to prevent the detention of third country nationals and asylum seekers and ensure that measures of detention were only used as a last resort?

Would Greece consider abolishing the administrative detention of asylum seekers on the grounds of illegal entry, particularly those belonging to vulnerable groups? Would Greece consider putting in place a proper procedure for individualised risk assessment before imposing a detention order for an asylum seeker or a third party national? What steps would be taken to ensure that all persons deprived of their liberty enjoyed fundamental legal safeguards against ill treatment from the outset of their detention, including the rights to be assisted by a lawyer without delay? How was it ensured that all foreign nationals deprived of their liberty were granted access to a lawyer and doctor?

Another Expert asked what steps were being taken to develop a comprehensive statistical system on trafficking and improve early identification and referral systems? Could disaggregated data be provided on the number of trafficking cases investigated, convictions secured, and sentences imposed? What steps was the State party taking to adopt a new national action plan and ensure sufficient resources for its implementation? The situation on support and redress for victims was concerning, as there was a lack of adequately funded and inclusive shelters for trafficking victims and no victims had successfully obtained compensation. What measures were being taken to increase the capacity of shelters and ensure that they were accessible to all victims? How did Greece ensure the quality of services provided in shelters, and what long-term reintegration programmes were available? What steps were being taken to facilitate access to compensation for victims, ensuring they received legal assistance?

It was reported that in 2023, of the 10,973 asylum appeals submitted to the Appeals Committees, only 5,915 cases, around 53 per cent, received legal aid.

What steps were being taken to streamline the legal aid application process and court fee waivers for vulnerable populations? What measures were being considered to increase the capacity and resources of the legal aid system to ensure timely and effective representation? How was the State party addressing delays in providing legal aid, especially during critical stages such as police investigations and initial detention? How did Greece plan to resolve ongoing delays in compensating legal aid lawyers?

Responses by the Delegation

The delegation said that once ratified, international conventions formed part of domestic law. The national school of the judiciary provided training to judges and prosecutors. Initial training was mandatory since 2022 and covered topics including human rights, gender law, and the treatment of victims. Thirteen seminars were held online and in-person for judges in 2023, while 15 seminars were planned for 2024. Greece did not have specific legislation to receive Views from the Committee.

During the COVID-19 pandemic, Greek authorities resorted to a wide array of restrictive measures to protect public health. All these measures were necessary and applied in a non-discriminatory manner. The Greek Ministry of Justice recently amended the Criminal Code concerning the fight against corruption with a new law in 2024. Greece had an increased number of ongoing corruption investigations and cases and looked forward to final judgments in the immediate future.

In 2021, Greece significantly amended the provisions relating to family law. The law had since triggered widespread concerns regarding its impact on custody in situations of domestic violence. The Greek legal system offered certain possibilities to suspend or regulate the parental rights of parents who had been abusive to their spouses or children.

The National Council against Racism, through strengthened collaboration, would focus on enhancing victims’ access to services, improving the skills of public officials to draft the second national action plan against racism and intolerance, and raising public awareness through a national campaign which reached over 100,000 people.

Violence against women had increased significantly during the pandemic. In April 2020, there was a significant increase of more than 200 per cent regarding phone calls to the hotline for reporting violence. Psychosocial support was provided upon request, including both online and in-person. A social media campaign had succeeded in raising awareness on the gender-based violence issue. Since 2010, a comprehensive strategy had been implemented to combat gender-based violence, comprised of prevention measures. An awareness raising campaign was launched in 2024 and was displayed in the Athens urban rail network. A panic button application was launched, enabling women in immediate danger to call for help in a safe manner by pressing a button on their phone which was linked to the police.

The National Centre for Social Solidarity operated two support centres in Athens for families that faced psychosocial crises, with an emphasis on victims of violence and trafficking. Short-term accommodation was provided.

One thousand and one hundred persons with disabilities had received personal assistance to enhance their independent living. A protection officer was stationed at each institution to report any cases of abuse. The Transparent Authority was the intendent mechanism responsible for conducting inspections in institutions where there were allegations or suspicions of abuse.

From 2019 to 2023, incidents of domestic violence had increased from 5,221 victims to 11,589. There had been 10 homicides of female victims by male perpetrators last year and six so far this year. Five offices for the protection of minors had been established and a special hotline was operational, enabling citizens to call and make complaints.

Foreigners in prison who did not have sufficient knowledge of the Greek language had the right to appear before courts with an interpreter. Alternative detention measures were applied under certain conditions. Detainees were immediately informed of their rights upon arrival at the prisons. Information, lawyer representation, and linguistic assistance were provided to any foreign prisoners. There were plans to recruit interpreters for implementing linguistic projects.

Sixty-eight offices had been established in the country to combat violence which arose due to racist motives. A special hotline was put into operation for reporting hate motivated crimes. The cybercrime division had developed a series of actions aimed at informing the public on hate speech. Police personnel were trained in the use of weapons and carried appropriate weapons when performing their duties. The promotion of ethical standards and the code of conduct of police officers was received through training.

For people who tried to illegally cross the maritime borders of Greece, Hellenic officers undertook all legal and necessary measures. There were clear legal rules that governed the use of force during law enforcement and border control activities. When Hellenic officers used firearms, it was mandatory to inform the local prosecutor. Detailed instructions had been disseminated to coast guard officers, and it was ensured that vulnerable groups were immediately provided with appropriate medical care. It was important to recognise the humanitarian efforts of the coast guard officers; hundreds of thousands of migrants had been rescued by the Hellenic coast guard officers throughout the migrant crisis.

Since 2002, the Hellenic police had been dealing with the issue of human trafficking. There were 12 human trafficking teams and officers had received specialised training in identifying victims and providing support. The fight against trafficking remained a top priority for the Greek authorities. The establishment of the Office of a National Rapporteur on Trafficking was followed by the National Referral Mechanism. The Office of the National Rapporteur was responsible for a national strategy to combat trafficking, and was mandated to cooperate closely with all national authorities. The National Referral Mechanism was in its fifth year of operation; it specialised in victim protection and facilitated training sessions.

The national crisis management plan for refugees had been activated during the COVID-19 pandemic and consisted of allocating specific areas for medical care and a temporary restriction on movement for foreign nationals. This did not constitute a detour from the rights in the Covenant. Regardless of their legal status, migrants and asylum seekers were offered vaccinations free of charge. Free transport was provided to asylum seekers to reach the local markets and health centres. Restriction on freedom of movement procedures for third country nationals was temporary and was done to verify a person’s identity. This did not apply to people who urgently required medical support.

The work of the Special Secretariat for Unaccompanied Minors had been remarkable. The National Guardianship System aimed to ensure that every unaccompanied minor had a guardian. It was a new system that was implemented in January 2024. There was a system for submitting complaints and a national registry for unaccompanied minors. There were 137 guardians active in Greece, with more than 500 minors under the programme. Greece was following an established procedure regarding age assessment.

Current penitentiary legislation provided for the protection of prisoners, including the right to appeal their sentence in an appeals court. A total of 226 appeals had been launched, of which 15 had been awarded a compensation amount, a favourable sentence, or transfer to another penitentiary. A working group had been set up to develop a short, easy to use guide for prisoners, informing them of their rights.

A training programme had been implemented for mental health service professionals, related to the de-escalation of violence and issues of chemical restraints, to ensure the protection of the rights of those with mental disabilities.

Questions by Committee Experts

A Committee Expert said femicide was more than murder; it had specific gender motives and was driven by wider issues. Could the delegation respond to this? How were women made aware of the panic/warning application on the phone? What happened if men checked the phones? Did the police have sufficient capacity to respond? Was it also available in rural areas?

Another Expert asked if all detention centres had good conditions? Previously, the alterative to detention was determined by the asylum office, but now it was done by police officers. Were individual assessments made before detention?

An Expert asked what concrete successes had been achieved in corruption cases, and what had been the challenges? Could information about timely investigations into excessive use of force be provided?

One Expert said domestic violence was a real issue facing Greece. Could information be provided on the sentences handed down and financial types of reparations to victims during the COVID-19 pandemic?

A Committee Expert asked for clarification on services available for trafficking victims.

Responses by the Delegation

The delegation said more medical staff were joining the reception centres every day. Referrals were also made to local public hospitals for serious cases. Two reception centres had been established on the mainland, which accepted many applicants from the islands and helped to decongest the islands’ reception centres. There were centres for women victims of violence and accommodation to child victims was also guaranteed. Access to compensation was provided by Hellenic authorities. There had been a strong campaign for raising awareness of domestic violence, including a campaign on the nightly news. The legal framework would not be changed.

The delegation said that at the borders, persons were obliged to remain within the premises to be registered for a minimum of five days, up to a maximum of 25. Usually, registration was completed before the five days and then the restriction on movement was lifted. Work was done to promote alternative measures to imprisonment, including electronic monitoring and community services.

The root causes of violence against women were identified as persistent gender stereotypes. The national action ban to combat violence against women addressed many areas to combat this scourge. The panic button had specific features to ensure it remained undetectable by the abuser. Only the victim was aware of its presence on the phone.

In Greece, persons with low income could apply for free legal aid. Victims of trafficking and domestic violence could receive free legal aid regardless of their income. The new legislation of the Penal Code made sanctions for violence against women more severe, with a victim-centred approach.

Questions by Committee Experts

A Committee Expert said the Committee was concerned about the system for the appointment of the most senior judges and prosecutors, including the President and Vice-President of the Council of State, the Supreme Court, and the Court of Audit.

Did the State party have any plans to revise the current system for appointing the highest positions of the judiciary and ensure the involvement of the judiciary in the process? Were there any other measures in place to ensure that the highest positions of the judiciary were not subject to a strong influence from the executive and to safeguard the independence of the judiciary?

Greece had yet to establish a statelessness determination procedure; could the State party clarify its plans to finalise and implement a Presidential Decree establishing a statelessness determination procedure? Would the State party consider ratifying the 1961 Convention on the Reduction of Statelessness?

The Committee was concerned about reports that unregistered Roma people faced lengthy and costly judicial procedures to acquire Greek citizenship, and that children born to stateless parents faced substantial barriers to obtaining Greek nationality. Did Greece have any plans to amend the list of documents required to apply for Greek nationality on the basis of birth and non-acquisition of a foreign nationality at birth, especially for children born to stateless parents? What concrete steps were in place to eliminate the barriers that stateless Roma faced to acquiring Greek nationality and to address the risk of statelessness within this community?

Concerns persisted about the application of the “safe third country” concept, particularly with the designation of Türkiye as a safe third country for asylum seekers from Syria, Afghanistan, Pakistan, Bangladesh, and Somalia. Despite the lack of readmissions to Türkiye since March 2020, Greece continued to reject numerous applications as inadmissible under this concept, leaving many individuals in prolonged legal limbo without access to international protection. What measures had been taken to reconsider the extensive use of the safe third country concept given the non-implementation of returns to Türkiye? How was the State party addressing the protracted legal limbo experienced by asylum seekers, and what protections and support were available for their rights? What had been done to

ensure the implementation of law 4939/2022, which mandated an in-merit examination when a third country did not permit entry? What support mechanisms were in place for those whose applications had been deemed inadmissible?

Another Expert said the State party had asserted that pushbacks had never been practiced as a de facto border policy of the State party and that the Hellenic police and Hellenic coast guard consistently followed the established legal and procedural frameworks. Yet numerous reports documented instances of pushbacks, including patterns of excessive use of force, cruel, inhuman and degrading treatment, incommunicado detention, and unlawful destruction of personal belongings. Reports before the Committee indicated that from January 2020 to June 2024, there were 1,452 incidents at the borders affecting approximately 46,649 people. Could the State party comment on such allegations and provide information on measures in place to prevent such practices and to safeguard the principle of non-refoulement?

Could information be provided on the outcome of investigations undertaken by the National Transparency Authority and other monitoring mechanisms on pushback allegations, and whether there was any follow-up or redress measures taken on allegations of pushbacks? How would Greece ensure thorough, systematic, effective, and independent investigations into allegations of pushbacks and hold those responsible accountable? What was the outcome of the 200 documented complaints of pushback cases? What measures were being taken to ensure that border control operations prioritised the protection of life and that rescue efforts were conducted in compliance with human rights?

Another Expert said according to the information received, conscientious objectors who performed civilian service would receive either food and accommodation without any salary, or €223.53, which was well below the legal minimum wage. In addition, the law provided for the possibility for persons over the age of 33 to perform only part of their service and to buy back the rest, at a significantly higher rate than that for military service. Could the State party comment on this information? What measures did the State party intend to take to avoid imposing repeated sanctions on conscientious objectors? What measures did the State party intend to take to ensure non-punitive alternative civilian service?

It was evident that Roma were considered as a vulnerable social group, and could exercise all civil and political rights. What measures were being taken to prevent, combat and eliminate all forms of discrimination against Roma children in the education system? What measures were being taken to limit the use of forced evictions by adopting viable alternatives to eviction, including alternative housing for evicted families?

The Committee was concerned that stricter registration and financial regulations could compromise civil society’s capacity to monitor human rights, particularly those of asylum seekers, refugees and displaced people. How did the State party ensure that registration and financial requirements were necessary and proportionate? How was it guaranteed that these requirements did not indirectly discriminate?

The Committee continued to receive information that human rights defenders, especially those working with migrants, asylum seekers and refugees, and on pushbacks, were regularly subjected to smear campaigns, harassment, threats and criminal prosecution. In one case, a human rights defender faced restrictions, including a travel ban. How were these measures considered proportionate? How were human rights defenders protected in order to ensure that they could carry out their work safely?

The Committee had received reports linking blanket bans on assemblies to political events. Could the State party confirm that authorities limited their discretion to prohibit assemblies to those strictly necessary and not merely due to their political content? Now that the COVID-19 emergency measures had ended, what steps had the State party taken to prevent the imposition of blanket bans on all demonstrations?

One Expert said credible reports indicated that police officers had used excessive force against, and caused serious injuries to, protestors and journalists participating in demonstrations. What measures were being taken to ensure that police officers used the minimum force necessary in response to high-tension demonstrations? Could updates be provided about the installation and use of surveillance systems in public demonstrations, including any efforts to establish clear criteria for identifying the persons and places subjected to surveillance, to limit the time period of data retention, and to make information about the systems publicly accessible?

What specific reform measures had been adopted to strengthen internal oversight and accountability within the Hellenic Police, especially regarding protest management? How was it ensured that all police officers consistently complied with the requirement to wear visible identification during public assemblies?

Greece’s Ethics Committee had the authority to exclude media from state advertising and funds for up to two years, raising concerns that government control could have a chilling effect on press freedom. How was it ensured that the Ethics Committee operated independently from government influence and respected journalistic integrity? Would the State party revise the legal framework to protect journalists against the use of retaliatory lawsuits? How were journalists informed about their rights and responsibilities during public demonstrations?

Responses by the Delegation

The delegation said the Supreme Judicial Council decided on the placements, postings and promotion of judicial officers. The principle of non-refoulment was a cornerstone of the framework for the protection of refugees. Strict adherence to this principle applied, and the Hellenic police had circulated clear guidelines for Hellenic police staff regarding the protection of those arriving in the country, particularly women and children. It was clarified that no third country national who applied for international protection should be returned until their application had been reviewed.

The Hellenic police conducted border surveillance duties with full respect of the human rights of third country nationals. Particular emphasis was given in the provisions of the European Convention of Human Rights. Land border activities conducted by the Hellenic police aimed at detecting all illegal crossings. Greece’s legislative framework did not have a specific framework for protecting human rights defenders. However, an article within the Penal Code set out a special aggravating condition for crimes or misdemeanours committed out of hatred.

Actions taken by Hellenic authorities at the sea borders were carried out in full compliance with international obligations. Allegations of so-called pushbacks were not compatible with the well-established operations of the Hellenic authorities. However, any allegations of pushbacks or mistreatment of third country nationals were thoroughly investigated. Hellenic coast guards demonstrated a high level of professionalism and were trained to respect the rights of all who were crossing the borders. From 2015 to the present, the Hellenic coast guards had rescued more than 254,000 people.

Several mechanisms allowed complaints against pushbacks to be submitted to the Hellenic authorities, and the coast guards had a robust disciplinary mechanism. Upon receiving a complaint on human rights violations, an administration investigation was launched, and depending on findings, disciplinary sanctions were carried out. An independent investigation had been launched by the Greek Ombudsman, the results of which were pending. The law aimed to ensure people in distress at sea and migrants received the highest level of assistance.

Greece enacted a law in 2020, followed by a presidential decree, pertaining to public assembly. This law clearly defined the power of police authorities while ensuring protection, fully protecting the right to freedom of assembly. The Greek police had imposed assembly bans during COVID-19 based on exceptional public health concerns. Greece’s primary aim was to promote the right to assembly, not to restrict it. In 2023, only three rallies had been banned. The Hellenic police prioritised de-escalation and the use of “soft measures”, with force being used as a last resort. Around 34 cases of excessive use of force had been recorded against journalists in 2021, and were sent to the Ombudsman for review.

The use of the surveillance system in the context of public open-air assemblies was limited to the assemblies only, without focusing on particular people and without recording sound. Police officers were obliged to wear a badge of identity on their uniforms during the assemblies.

The Greek asylum service had significantly expanded its operational capacity, now operating in 26 different locations across the country, including islands such as Lesbos; these islands were the frontlines of migratory flows. The number of employees had tripled after 2019 to manage the high volume of cases. By implementing reforms, the Greek asylum service managed to reduce the large number of pending asylum cases to around 18,000 in 2024, down from over 200,000. Asylum seekers whose appeal had been rejected had the right to file for the annulment of the decision within 30 days. During 2023, refugee and protection status had been granted to 873 applicants. This number was around 400 so far in 2024.

Greece had designated Türkiye as a safe third country concerning asylum seekers from certain countries. Based on this information, it could safely be assumed that Türkiye respected the principle of non-refoulment. Since March 2020, Türkiye had not been responding to requests from nationals from countries such as Bangladesh, Pakistan, Syria and other countries and was therefore not implementing its obligations.

Free legal aid was provided to asylum applicants. Appeals committees were instructed to rule that the applicants were stateless if asylum applicants could not prove which country they came from. Acquisition of Greek citizenship did not discriminate, and children born to Greek Roma parents were awarded Greek citizenship from birth. The Greek Citizenship Code aimed to prevent statelessness. Stateless children enjoyed a right to Greek citizenship if they resided permanently in Greece and had between six to nine years of Greek schooling, even if they had not been born in Greece.

Several laws referred to the requirements of registration for non-governmental organizations. The new registration process aimed to set the same rules for all non-governmental organizations and was free of charge. This year, 10 registrations had been accepted and only one was rejected.

In July 2022, the revision of the school curriculum for primary and secondary education was completed, seeking to foster a more equitable educational environment. In this framework, the teaching of religious education in Greece was viewed as an essential component. Like other subjects, religious education was intended to foster critical thinking and respect for diverse beliefs and values. This course would be provided with alternative educational opportunities for students who did not participate in religious education due to their beliefs or backgrounds.

Military service was a universal obligation in Greece. Those who identified as conscientious objectors could fulfil this duty through another service, other than within the armed forces. In the case of the person banned from leaving the country, this ban had been lifted.

The Greek authorities had gone the extra mile regarding the adoption of a law in 2022 to strengthen the transparency of print and electronic media. The conditions which had been set out for print and electronic media enhanced the protection of journalists. Regarding the two-year penalty of exclusion from media, this only occurred following a careful examination. This two-year penalty had been approved by the federal journalistic organizations of Greece.

More than 200 print media and 400 electronic media had been approved in Greece. In July 2022, a taskforce was created to focus on issues including gender-based challenges in the media area. Most recently, a training was conducted in collaboration with the United Nations Educational, Scientific and Cultural Organization for law enforcement operators and media professionals to foster better cooperation between the two groups. From this taskforce, a law was developed to protect journalists covering sports events from violence.

A new programme was being designed to help Roma people with no documents acquire them. There was no specific legislation on minority associations or organizations. Over 200 associations had been formed by members of the Muslim minority.

Questions by Committee Experts

A Committee Expert asked how often demonstrations were completely prohibited? How were associations informed about procedural rights?

Another Expert asked for more information regarding the income of conscientious objectors?

An Expert said there were overwhelming reports that had documented instances of forced returns. How was it possible to follow the principle of non-refoulment in these instances?

Another Expert thanked the delegation for their thorough answers. Could further clarification be provided about the State party’s plan to develop a statelessness determination procedure?

Responses by the Delegation

The delegation said each case of public assembly was evaluated directly, taking into account proportionality and necessity. The police aimed to facilitate the legal rights to assembly without incident. The new Penitentiary Code introduced a remedy, enabling those serving in pretrial detention to lodge complaints about the conditions of their living conditions and medical care.

Pushbacks were not the policy of the Greek Government in any way, shape, or form; the Government policy was clear. Greece had significantly approved the asylum system for migration and was now the fourth most productive in the European Union. The State had made all the progress it could considering the difficult region. Legislation protected everyone, including human rights defenders. Alleged “smear campaigns” needed to be examined by the courts; they could not always be presumed.

Closing Remarks

IOANNIS GHIKAS, Permanent Representative of Greece to the United Nations Office at Geneva, thanked the Committee for the frank and honest exchange. Although progress had been made, there was still work which needed to be done. Greece had worked hard to improve the situation, particularly on migration; the number of deaths in the Aegean Sea had fallen by 40 per cent. Greece had a vibrant society with few resources but was working to do better.

TANIA MARÍA ABDO ROCHOLL, Committee Chairperson, thanked the delegation for the dialogue, which had covered a wide range of subjects under the Covenant. The Committee aimed to ensure the highest level of implementation of the Covenant in Greece.

____

CCPR.24.023E

Produced by the United Nations Information Service in Geneva for use of the information media; not an official record.

English and French versions of our releases are different as they are the product of two separate coverage teams that work independently.

MIL OSI United Nations News –

January 24, 2025

MIL-OSI USA News: Readout of President Joe Biden’s Meeting with Prime Minister Robert Golob of the Republic of Slovenia

Source: The White House

President Joseph R. Biden, Jr. met today with Prime Minister Robert Golob of the Republic of Slovenia at the White House. The leaders had an in-depth discussion on a range of foreign policy issues of mutual interest. President Biden expressed his gratitude for Slovenia’s role in the historic deal that secured the release of three Americans unjustly detained by Russia, as well as an American green card holder who won a Pulitzer Prize while in Russian detention, and 12 other human rights defenders and political dissidents. They discussed U.S.-Slovenian cooperation on clean energy and advanced technologies, and a joint approach to Western Balkans – an area of strategic interest for both the United States and the Republic of Slovenia. They reaffirmed their unwavering support for Ukraine as it continues to defend against Russia’s aggression. They discussed the latest developments in the Middle East, the need to reach a diplomatic resolution to the conflict between Israel and Hezbollah that allows civilians on both sides of the Blue Line to safely return to their homes, to ensure civilians – including humanitarians and journalists – are protected, and to address the humanitarian crisis in Gaza, and to achieve a ceasefire deal that secures the release of the hostages. President Biden underscored the need for increased defense investments to ensure NATO is properly resourced to face tomorrow’s challenges.

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MIL OSI USA News –

January 24, 2025

MIL-OSI USA: US Department of Labor recovers more than $1B in wages, damages for 615,000 workers under Biden-Harris administration

Source: US Department of Labor

WASHINGTON –The Biden-Harris administration today announced that the Department of Labor’s Wage and Hour Division recovered more than $1 billion in back wages and damages for our nation’s workers since the start of the Biden-Harris administration. The recoveries derive from investigations concluded by the division from Jan. 20, 2021, through Sept. 30, 2024.

“As part of the Biden-Harris administration’s efforts to protect and defend America’s working people, the Wage and Hour Division has recovered more than $1 billion in back wages and damages—achieving both justice and economic relief for more than 615,000 workers,” said Acting Secretary of Labor Julie Su. “Thanks to the leadership of President Biden and Vice President Harris, this department has been focused on protecting those workers who need us most—the hotel cleaners, home care aides, meatpackers and hundreds of thousands more. And by ensuring that employers who violate the law are held to account, we are deterring businesses from exploiting workers in the future. I am so proud to say that we are putting money back in workers’ pockets and signaling to bad actors that they won’t get away with wage theft and illegal child labor on our watch.”

The division enforces some of the nation’s most foundational labor laws, including the Fair Labor Standards Act that requires payment of a federal minimum wage and overtime wages, as well as laws that require prevailing wages for federally funded and assisted contracts. The agency prioritizes helping workers in low-wage, high-violation industries, including healthcare, agriculture, construction and many others.

Joely Maniscalco is one of many workers who the division has helped get back their hard-earned wages. A home health aide in Stroudsburg, Pennsylvania, she works to care for people in their homes by providing assistance with bathing, eating and other activities of daily living. In 2024, the Wage and Hour Division found that Maniscalco had been the victim of wage theft from two different employers and recovered more than $1,000 in back wages for her. “I am grateful to the Wage and Hour Division. They helped me understand my rights as a home care worker,” she said. Maniscalco was facing eviction and was able to use the back wages to secure a new apartment.

Housekeeper Demetria Jones is another worker who sought the division’s help after Jones was not paid for all the hours she worked at a motel in Florida, and she struggled to provide for her family. Jones bravely stood up for her rights and contacted the Wage and Hour Division. “I worked hard for my money, and everyone deserves to be paid properly,” she said. As a result of the investigation, Jones received more than $2,000 in minimum wage and overtime compensation.

“We are dedicated to protecting and enhancing the welfare of the nation’s workforce with a focus on underserved and often vulnerable workers,” said Wage and Hour Administrator Jessica Looman. “The money we recover from employers helps workers pay for housing, childcare and other necessities. While we are proud to have recovered $1 billion in workers’ owed wages and damages, we remain concerned by the wage theft we have uncovered and the harm it causes for hard-working people across the nation. We will continue to use all our tools to protect workers across the country.”

In addition to its enforcement efforts, the division provides outreach and education to employers, workers and other stakeholders to raise awareness of workers’ rights and prevent violations of federal labor standards. To assist employers, the division offers many compliance assistance resources to ensure lawful employment practices.

Learn more about the Wage and Hour Division, including a search tool to use if you think you may be owed back wages collected by the division and how to file a complaint. For confidential compliance assistance, workers and employers can call the agency’s toll-free helpline at 866-4US-WAGE (487-9243), regardless of where they are from. The division can speak with callers in more than 200 languages.

Download the division’s Timesheet App for iOS and Android devices – available in English and Spanish – to ensure hours and pay are accurate.

MIL OSI USA News –

January 24, 2025

MIL-OSI USA: 2024-46 NEWS RELEASE – DEPT. OF THE AG PARTNERS WITH DEA AND LAW ENFORCEMENT AGENCIES ON NATIONAL PRESCRIPTION DRUG TAKE BACK DAY

Source: US State of Hawaii

2024-46 NEWS RELEASE – DEPT. OF THE AG PARTNERS WITH DEA AND LAW ENFORCEMENT AGENCIES ON NATIONAL PRESCRIPTION DRUG TAKE BACK DAY

Posted on Oct 22, 2024 in Latest Department News, Newsroom

DEPARTMENT OF THE ATTORNEY GENERAL

KA ʻOIHANA O KA LOIO KUHINA

JOSH GREEN, M.D.
GOVERNOR

ANNE LOPEZ

ATTORNEY GENERAL

News Release 2024-46

THE ATTORNEY GENERAL PARTNERS WITH DEA AND LAW ENFORCEMENT AGENCIES ON NATIONAL PRESCRIPTION DRUG TAKE BACK DAY

FOR IMMEDIATE RELEASE

October 23, 2024

HONOLULU – The Hawaiʻi Department of the Attorney General is partnering with the U.S. Drug Enforcement Administration (DEA); Hawaiʻi Department of Law Enforcement (DLE), Narcotics Enforcement Division; and local law enforcement agencies to participate in the National Prescription Drug Take Back Day.

The department encourages everyone to help keep communities safe from the abuse and misuse of prescription drugs by participating in the National Prescription Take Back Initiative on:

Saturday, October 26, 2024

10:00 a.m. – 2:00 p.m.

Anyone with expired or unused medications is encouraged to bring them to the drive-thru collection sites located on Oʻahu, Maui, Kauaʻi, and Hawaiʻi islands.

The Take Back events are conducted twice a year and are free and anonymous services to the public – no questions asked. Tablets, capsules, liquids and other forms of medication will be accepted. Everything can be kept in its original container. No labels need to be removed. Vaping devices will also be accepted, but batteries must be removed. New or used syringes will not be accepted.

“The National Take Back Initiative is part of DEA’s ongoing commitment to promote the health and safety of all Hawaiʻi residents,” says DEA Honolulu District Assistant Special Agent in Charge Victor Vazquez. “The results of these semi-annual take back events are substantial with thousands of pounds of unneeded, potentially dangerous medications being collected and safely destroyed.”

“The Department of Law Enforcement wants to encourage the public to turn in unused or unwanted medications at any of the community take back locations. By safely disposing of unused or unwanted medications, through the National take Back Initiative, we never have to worry about those medications being misused,” said DLE Deputy Director Jared Redulla.

“This is a great opportunity to rid unused and expired medications from your home. Prescription drugs thrown in the trash can be retrieved by others to abuse. Let’s work together to keep Hawaiʻi safe from prescription drugs entering our land and ocean,” says Valerie Mariano, branch chief, Community and Crime Prevention Branch, Department of the Attorney General.

Medicine should not be thrown in the trash or flushed down the toilet. The following are reasons why it is important to properly dispose of unwanted and unused medication.

Proper disposal reduces the risk of prescription drugs entering the water supply or potentially harming aquatic life.
Having unused or expired medicine in the home increases the risk of accidental

poisoning. Homes where children or the elderly live are especially vulnerable to

this danger.

Children may mistake medicine for candy.
Medicines may lose their effectiveness after the expiration date.

Go to http://ag.hawaii.gov for a list of the October 26 Take Back locations in Hawaiʻi. If unable to participate in the Take Back event, there are also several year-round medication drop-off sites in Hawaiʻi. To find your nearest location visit https://www.dea.gov/takebackday#resources, or http://www.hawaiiopioid.org.

###

Media Contacts:

Dave Day
Special Assistant to the Attorney General
808-586-1284
Email: [email protected]
Web: http://ag.hawaii.gov

Toni Schwartz
Public Information Officer
Hawai‘i Department of the Attorney General
Office: 808-586-1252
Cell: 808-379-9249
Email: [email protected]
Web: http://ag.hawaii.gov

MIL OSI USA News –

January 24, 2025

MIL-OSI USA: Congressional Democrats File Amicus Brief Urging Ninth Circuit Court to Affirm that EMTALA Requires Hospitals to Provide Emergency Stabilizing Care Including Abortion Care, Preempts Idaho’s Draconian Abortion Ban

US Senate News:

Source: United States Senator for New Hampshire Maggie Hassan
After the Supreme Court dismissed the case, returning it to the Ninth Circuit Court, 259 Members of Congress ask the Ninth Circuit to affirm district court decision that under EMTALA, hospitals participating in Medicare must provide emergency stabilizing treatment to patients, including abortion care when necessary
In amicus brief—led by Sens. Schumer, Murray, Wyden, Durbin and Reps. Jeffries, Clark, Pallone, Neal, Nadler, DeGette, and Lee—lawmakers argue that congressional intent, text, and history of EMTALA make clear that covered hospitals must provide abortion care when it is the “necessary stabilizing treatment” for a patient’s “emergency medical condition,” and that EMTALA clearly preempts conflicting state law
Members: “In this case, respecting the supremacy of federal law is about more than just protecting our system of government; it is about protecting people’s lives.”
Washington, D.C. — Today, 259 Members of Congress—led by U.S. Senators Schumer, Murray, Wyden, and Durbin, and Representatives Jeffries, Clark, Pallone, Neal, Nadler, DeGette, and Lee—submitted an amicus brief to the U.S. Court of Appeals for the Ninth Circuit in Moyle v. United States and Idaho v. United States, two consolidated cases concerning the Emergency Medical Treatment and Labor Act (EMTALA) under consideration by the en banc Ninth Circuit. EMTALA is a federal law that requires hospitals that receive Medicare funding to provide necessary “stabilizing treatment” to patients experiencing medical emergencies, which can include abortion care.
After the Dobbs decision in 2022, a draconian anti-abortion law in Idaho went into effect that makes it a felony for a doctor to terminate a patient’s pregnancy unless it is “necessary” to prevent the patient’s death. The United States sued the State of Idaho, arguing that the state’s law is preempted by EMTALA in those circumstances in which abortion may not be necessary to prevent imminent death, but still constitutes the necessary stabilizing treatment for a patient’s emergency medical condition. The district court agreed; it held that in those limited, but critically important situations, EMTALA requires Medicare-participating hospitals to provide abortion as an emergency medical treatment. Idaho Republicans appealed that ruling to the Supreme Court, which lifted the injunction and took the case in January—in March, 258 Members filed an amicus brief, asking the Supreme Court to affirm the district court decision. In June, the Supreme Court dismissed the case but without a ruling on the merits, sending the case back to the Ninth Circuit Court and reinstating the district court’s injunction.
In their brief in support of the Justice Department, the lawmakers ask the Ninth Circuit to uphold the district court’s ruling. They argue that the congressional intent, text, and history of EMTALA make clear that covered hospitals must provide abortion care when it is the necessary stabilizing treatment for a patient’s emergency medical condition, and that EMTALA preempts Idaho’s abortion ban in emergency situations that present a serious threat to a patient’s health.
“[T]he 99th Congress passed EMTALA to ensure that every person who visits a Medicare-funded hospital with an ‘emergency medical condition’ is offered stabilizing treatment,” the Members write in their amicus brief. “Congress chose broad language for that mandate, requiring hospitals that participate in the Medicare program to provide ‘such treatment as may be required to stabilize the medical condition.’… That text—untouched by Congress for the past three decades—makes clear that in situations in which a doctor determines that abortion constitutes the ‘[n]ecessary stabilizing treatment’ for a pregnant patient, federal law requires the hospital to offer it. Yet Idaho has made providing that care a felony, in direct contravention of EMTALA’s mandate.”
Importantly, the Members note that in this case, “respecting the supremacy of federal law is about more than just protecting our system of government; it is about protecting people’s lives. If this Court allows Idaho’s near-total abortion ban to supersede federal law, pregnant patients in Idaho will continue to be denied appropriate medical treatment, placing them at heightened risk for medical complications and severe adverse health outcomes… And health care providers, unwilling to let Idaho’s law override their medical judgment regarding their patients’ best interests, will continue their exile from Idaho, creating maternity-care ‘deserts’ all over the state.” The Members point to numerous reports of OB/GYNs leaving Idaho en masse since the state’s abortion ban went into effect—Idaho has since lost fifty-five percent of its maternal-fetal medicine specialists and three rural hospitals have shut down maternity services altogether.
“These are not hypothetical scenarios. Because Idaho’s abortion ban contains no clear exceptions for the “emergency medical conditions” covered by EMTALA, it forces physicians to wait until their patients are on the verge of death before providing abortion care. The result in other states with similar laws has been ‘significant maternal morbidity,’” write the Members, pointing to harrowing reports of pregnant women with severe health complications being denied necessary abortion care, including an Idaho woman who was flown to Utah for an abortion while hemorrhaging, leaking amniotic fluid, and terrified that she would not survive to care for her two other children. “Federal law does not allow Idaho to endanger the lives of its residents in this way.”
In their brief, the Members also clarify that the references to “unborn child” in EMTALA were intended to expand hospitals’ obligations with respect to providing stabilizing treatment—not contract them or take away the obligation to provide abortion care in certain circumstances.
The Members’ brief also counters an argument from Idaho and its amici that the Supremacy Clause does not apply in this case because EMTALA was passed using Spending Clause authority, and therefore acts only as a condition on Medicare funding. The Members make clear that all laws passed by Congress are entitled to preemption—regardless of their source of constitutional authority—and states cannot pass laws that make it impossible for private parties to accept federal funding, inhibiting the purpose of the federal law.
“EMTALA requires abortion when necessary to stabilize a patient with an emergency medical condition, Idaho’s near-total abortion ban is preempted to the extent that it prevents doctors from providing that care,” the Members write. “This Court should reject Appellants’ novel theory that EMTALA is not entitled to preemptive effect because it was enacted pursuant to Congress’s spending power. Under the Supremacy Clause, all ‘the constitutional laws enacted by congress,’ constitute ‘the supreme Law of the Land,’. As the Supreme Court has repeatedly held, the principle of federal supremacy applies to laws passed pursuant to Congress’s spending authority no less than it does to laws effectuating other enumerated powers.”
“In sum, EMTALA plainly requires hospitals that participate in the Medicare program to provide abortion care when, in a doctor’s medical judgment, it constitutes the ‘[n]ecessary stabilizing treatment’ for a patient’s ‘emergency medical condition.’”
The lawmakers conclude by asking the Ninth Circuit to affirm the district court’s decision that EMTALA requires Medicare-participating hospitals to provide abortion care when it is necessary as emergency medical treatment.
In the Senate, the amicus brief was signed by 48 U.S. Senators: Schumer, Murray, Wyden, Durbin, Baldwin, Bennet, Blumenthal, Booker, Brown, Butler, Cantwell, Cardin, Carper, Casey Jr., Coons, Cortez Masto, Duckworth, Gillibrand, Hassan, Heinrich, Helmy, Hickenlooper, Hirono, Kaine, Kelly, King Jr., Klobuchar, Luján, Markey, Merkley, Murphy, Padilla, Peters, Reed, Rosen, Sanders, Schatz, Shaheen, Sinema, Smith, Stabenow, Tester, Van Hollen, Warner, Warnock, Warren, Welch, Whitehouse.
In the House, the brief was signed by 211 U.S. Representatives.
The lawmakers’ amicus brief to the Supreme Court can be read in full HERE.

MIL OSI USA News –

January 24, 2025

MIL-OSI USA: Capitol Hill Report, 10-22-24

US Senate News:

Source: United States Senator for Iowa Chuck Grassley
Senator Grassley’s weekly Capitol Hill Report can be found HERE.
Topics include: Pure Prairie Poultry’s closure, farm profitability under the Biden-Harris admin, housing affordability, the Juvenile Justice and Delinquency Prevention Act, early voting and priorities for the remainder of the 118th Congress.

MIL OSI USA News –

January 24, 2025

MIL-OSI USA: ERO Boston arrests Brazilian noncitizen charged with violent crimes against Massachusetts child

Source: US Immigration and Customs Enforcement

Marlborough, Mass. — Enforcement and Removal Operations Boston apprehended an unlawfully present 24-year-old Brazilian noncitizen charged locally with assault and battery on a child with an injury, assault and battery against a family or household member, two counts of strangulation or suffocation, and intimidation charges. Officers from ERO Boston arrested Mateus Silva-Kerkovshy Aug. 16 in Marlborough.

“Mateus Silva-Kerkovshy allegedly committed some extremely violent acts against a child with an injury and represents a dire threat to the residents of Massachusetts,” said ERO Boston acting Field Office Director Patricia H. Hyde. “We cannot allow such a threat to remain in our communities. ERO Boston will continue to prioritize the safety of our public by aggressively arresting and removing egregious noncitizen offenders from our New England neighborhoods.”

U.S. Border Patrol arrested Silva Oct. 22, 2021, after he unlawfully entered the United States near San Luis, Arizona. U.S. Border Patrol issued Silva a notice to appear before a Department of Justice immigration judge and took him into custody.

U.S. Border Patrol released Silva from custody after he was granted parole Oct. 29, 2021.

On March 29, 2023, a Department of Justice immigration judge ordered Silva removed from the United States to Brazil.

The Hudson Police Department arrested Silva Aug. 9 and charged him with with assault and battery on a child with an injury, assault and battery against a family or household member, two counts of strangulation or suffocation and intimidation charges. Later that day, the Marlborough District Court arraigned Silva on those charges.

ERO Boston lodged an immigration detainer against Silva Aug. 9 with the Marlborough District Court.

The Marlborough District Court transferred Silva Aug. 16 into the custody ERO Boston at the Marlborough District Court’s detention facility. Silva remains in ERO custody.

ERO conducts removals of individuals without a lawful basis to remain in the United States, including at the order of immigration judges with the Justice Department’s Executive Office for Immigration Review. The Executive Office for Immigration Review is a separate entity from the Department of Homeland Security and U.S. Immigration and Customs Enforcement. Immigration judges in these courts make decisions based on the merits of each individual case, determining if a noncitizen is subject to a final order of removal or eligible for certain forms of relief from removal.

As one of ICE’s three operational directorates, ERO is the principal federal law enforcement authority in charge of domestic immigration enforcement. ERO’s mission is to protect the homeland through the arrest and removal of those who undermine the safety of U.S. communities and the integrity of U.S. immigration laws, and its primary areas of focus are interior enforcement operations, management of the agency’s detained and non-detained populations, and repatriation of noncitizens who have received final orders of removal. ERO’s workforce consists of more than 7,700 law enforcement and non-law enforcement support personnel across 25 domestic field offices and 208 locations nationwide, 30 overseas postings, and multiple temporary duty travel assignments along the border.

Members of the public can report crimes and suspicious activity by dialing 866-DHS-2-ICE (866-347-2423) or completing the online tip form.

Learn more about ICE’s mission to increase public safety in our New England communities on X, formerly known as Twitter, at @EROBoston.

Members of the public can report crimes and suspicious activity by dialing 866-DHS-2-ICE (866-347-2423) or completing the online tip form.

Learn more about ICE’s mission to increase public safety in our New England communities on X, formerly known as Twitter, at @EROBoston.

MIL OSI USA News –

January 24, 2025

MIL-OSI USA: ERO Boston arrests Guatemalan noncitizen charged with sex crimes, witness intimidation against Massachusetts resident

Source: US Immigration and Customs Enforcement

BOSTON — Enforcement and Removal Operations Boston apprehended an unlawfully present Guatemalan noncitizen charged with aggravated rape, witness intimidation and indecent assault and battery of a Massachusetts resident. Officers from ERO Boston arrested 49-year-old Elmer Perez Aug. 15 in North Dartmouth.

“Elmer Perez unlawfully entered the United States before making his way to Massachusetts where he allegedly committed vile and disturbing crimes in our Massachusetts community,” said ERO Boston acting Field Office Director Patricia H. Hyde. “Perez posed a significant threat to our residents that we will not tolerate. ERO Boston will continue to prioritize public safety by apprehending and removing noncitizen offenders from our New England neighborhoods.”

Perez unlawfully entered the United States on an unknown date, at an unknown location, without inspection, admission or parole by a U.S. immigration official.

ERO Boston lodged an immigration detainer against Perez Dec. 20, 2019, with the Bristol County Superior Court

The Bristol County Superior Court arraigned Perez Feb. 21, 2020, on charges of aggravated rape, rape, intimidation of a witness and two counts of indecent assault and battery on a person over 14 years of age.

The Bristol County Superior Court notified ERO Boston that Perez would be released from custody Aug. 15. Authorities at the Bristol Superior Court detention facility honored ERO Boston’s immigration detainer and released Perez Aug. 15 into the custody of ERO Boston deportation officers. Perez remains in ERO custody.

As part of its mission to identify and arrest removable noncitizens, ERO lodges immigration detainers against noncitizens who have been arrested for criminal activity and taken into custody by state or local law enforcement. An immigration detainer is a request from U.S. Immigration and Customs Enforcement to state or local law enforcement agencies to notify ICE as early as possible before a removable noncitizen is released from their custody. Detainers request that state or local law enforcement agencies maintain custody of the noncitizen for a period not to exceed 48 hours beyond the time the individual would otherwise be released, allowing ERO to assume custody for removal purposes in accordance with federal law.

Detainers are critical public safety tools because they focus enforcement resources on removable noncitizens who have been arrested for criminal activity. Detainers increase the safety of all parties involved — ERO personnel, law enforcement officials, the removable noncitizens and the public — by allowing an arrest to be made in a secure and controlled custodial setting as opposed to at-large within the community. Since detainers result in the direct transfer of a noncitizen from state or local custody to ERO custody, they also minimize the potential that an individual will reoffend. Additionally, detainers conserve scarce government resources by allowing ERO to take criminal noncitizens into custody directly rather than expending resources locating these individuals at-large.

ERO conducts removals of individuals without a lawful basis to remain in the United States, including at the order of immigration judges with the Justice Department’s Executive Office for Immigration Review. The Executive Office for Immigration Review is a separate entity from the Department of Homeland Security and ICE. Immigration judges in these courts make decisions based on the merits of each individual case, determining if a noncitizen is subject to a final order of removal or eligible for certain forms of relief from removal.

As one of ICE’s three operational directorates, ERO is the principal federal law enforcement authority in charge of domestic immigration enforcement. ERO’s mission is to protect the homeland through the arrest and removal of those who undermine the safety of U.S. communities and the integrity of U.S. immigration laws, and its primary areas of focus are interior enforcement operations, management of the agency’s detained and non-detained populations, and repatriation of noncitizens who have received final orders of removal. ERO’s workforce consists of more than 7,700 law enforcement and non-law enforcement support personnel across 25 domestic field offices and 208 locations nationwide, 30 overseas postings, and multiple temporary duty travel assignments along the border.

Members of the public can report crimes and suspicious activity by dialing 866-DHS-2-ICE (866-347-2423) or completing the online tip form.

Learn more about ICE’s mission to increase public safety in our New England communities on X, formerly known as Twitter, at @EROBoston.

MIL OSI USA News –

January 24, 2025

MIL-OSI Security: Two South Carolina Men Plead Guilty to Hate Crimes, Conspiracy and Other Charges for Bias-Motivated Armed Robberies Targeting Hispanic Victims

Source: Office of United States Attorneys

Two South Carolina men pleaded guilty in U.S. District Court in Columbia, South Carolina, to federal hate crime and other charges in connection with a string of racially-motivated armed robberies targeting Hispanic victims.

According to court documents, beginning in January 2021 and continuing through February 2021, Charles Antonio Clippard, 27, and Michael Joseph Knox, 29, both of Columbia, conspired to target people the defendants identified as Mexican or Hispanic at places of public accommodation, including gas stations and grocery stores. After identifying these targets, the defendants would rob their victims at gunpoint. The defendants targeted their victims because of their victims’ race and national origin.

Both defendants admitted their involvement in a Jan. 22, 2021, armed robbery in which the defendants followed their victims from a grocery store and restaurant to their home and then robbed the victims at gunpoint, stealing cash and a cellphone. They also admitted their involvement in a Jan. 30, 2021, armed robbery and carjacking targeting a Hispanic victim after following him from a gas station to his home. The defendants admitted their involvement in another Jan. 30, 2021, armed robbery in which they targeted a Hispanic victim, followed him from a gas station to his home and then robbed him and others at gunpoint after following him into his home. In total, the defendants pleaded to three hate crime charges, one count of carjacking, one count of conspiracy and two firearms charges. Two other co-conspirators, Gabriel Brunson, 21, and Sierra Fletcher, 34, both of Columbia, previously pleaded guilty to hate crime, conspiracy and firearm offenses.

“These defendants targeted Hispanic victims for violent acts of armed robbery because of their race, national origin and perceived vulnerability,” said Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division. “Every person, regardless of their race or national origin, is entitled to the full protection of the law, and no person should have to fear for their lives or property because of their race or ethnicity. The Justice Department will continue to protect all Americans and will vigorously prosecute those who commit bias-motivated crimes.”

“While these defendants sparked fear for an entire community by targeting members of our Hispanic community, today’s hearing sends a louder message: we will not tolerate bias-based crimes in South Carolina,” said U.S. Attorney Adair Ford Boroughs for the District of South Carolina. “The Justice Department will continue to relentlessly protect and enforce the civil rights of everyone in South Carolina.”

“These defendants used violent acts of armed robbery to purposely target Hispanic victims simply because of their race,” said Assistant Director Chad Yarbrough of the FBI Criminal Investigative Division. “We hope the guilty plea by these two defendants serves notice that violence borne from hate will never be tolerated in our communities. The FBI remains steadfast in its mission to uphold the Constitution and protect the civil rights of everyone, fairly and equally.”

“Clippard and Knox egregiously sought to exploit and intimidate their victims based on their Hispanic ethnicity,” said Special Agent in Charge Steve Jensen of the FBI Columbia Field Office. “Their violent robberies instilled fear in their victims and innocent working people within the Hispanic community. These criminal acts have no place in our society, and we are committed to ensuring the safety of all individuals, regardless of their background.”

The defendants face a mandatory minimum penalty of 14 years in prison for the firearms offenses, a maximum penalty of 10 years in prison on each hate crime count and a maximum penalty of 15 years in prison on the carjacking count. The plea agreements require both defendants to pay restitution to all victims. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.

The FBI Columbia Field Office investigated the case, with assistance from the Bureau of Alcohol, Tobacco, Firearms and Explosives, Columbia Police Department, Town of Lexington Police Department and Richland County Sheriff’s Department.

Assistant U.S. Attorneys Ben Garner and E. Elizabeth Major for the District of South Carolina and Trial Attorneys Katherine McCallister and Andrew Manns of the Civil Rights Division’s Criminal Section are prosecuting the case.

MIL Security OSI –

January 24, 2025

MIL-OSI Security: Jefferson County Man Admits to Firearms Charge

Source: Office of United States Attorneys

MARTINSBURG, WEST VIRGINIA – Bradley Charles Reckert, Jr., 32, of Harpers Ferry, West Virginia, has admitted to the possession of a firearm by a prohibited person.

According to court documents, Reckert possessed a privately manufactured AR-style pistol in his home. Reckert is prohibited from having firearms because of his use and abuse of drugs.

The Bureau of Alcohol, Tobacco, Firearms and Explosives; the West Virginia State Police; the Berkeley County Sheriff’s Office; and the Loudoun County, Virginia, Sheriff’s Office investigated.

Assistant U.S. Attorney Daniel Salem is prosecuting the case on behalf of the government.

U.S. Magistrate Judge Robert W. Trumble presided.

MIL Security OSI –

January 24, 2025

MIL-OSI Security: Defendants Plead Guilty To Violation of The Big Cat Public Safety Act

Source: Office of United States Attorneys

LITTLE ROCK—Jonathan D. Ross, United States Attorney for the Eastern District of Arkansas, announced today that two men involved with violations of the Big Cat Public Safety Act have pleaded guilty. Keidrick Damond Usifo, 30, of Conway, and Deon Johnson, 28, of Little Rock, entered guilty pleas earlier today before United States District Judge James M. Moody, Jr.

The Big Cat Public Safety Act was enacted December 20, 2022, to protect the public by putting an end to the private ownership of big cats, such as tigers and lions, as pets and by prohibiting exhibitors from allowing public contact with big cats, including tiger cubs. It has placed new restrictions on the commerce, breeding, possession, and use of certain big cat species. In order to legally possess privately owned big cats, the Act required individuals or entities to register any big cats before the date of enactment, that were in their possession with the U.S. Fish and Wildlife Service (USFWS).

Usifo and Johnson were indicted by a federal grand jury on March 5, 2024. That indictment charged Usifo with one count of violation of the Big Cat Public Safety Act and Johnson with misprision of a felony, which related to Johnson’s affirmative concealment of Usifo’s crime. On October 22, 2024, both Usifo and Johnson pled guilty to their counts in the indictment. Judge Moody will sentence Usifo and Johnson at a later date.

Violation of the Big Cat Public Safety Act is punishable by not more than five years’ imprisonment and a fine of not more than $10,000. Misprision of a felony is punishable by not more than three years’ imprisonment and a fine of not more than $250,000.

An investigation revealed that Usifo purchased and transported a tiger cub around March 16-18, 2023, from a tiger broker in Dallas, Texas. On April 7, 2023, the Arkansas Game & Fish Commission (AGFC) notified USFWS that they received a complaint of a tiger cub sighting in a residential neighborhood in Conway. On April 17, 2023, an agent with AGFC was notified that there was a man with a tiger in the backyard of a residence in Conway. There was also an anonymous tip posted on AGFC’s page about a tiger cub for sale in Conway. The Big Cat Public Safety Act makes it illegal to privately possess or breed big cats.

A further investigation revealed that on April 19, 2023, a second complaint was made to AGFC about a tiger at a residence in Conway. On April 21, 2023, a traffic stop was conducted and Usifo was arrested on a felony state warrant. The Conway Police Department executed a search warrant at Usifo’s residence and although they did not locate the tiger, there was evidence in the residence indicating the presence of a tiger, as well as matching rooms from Usifo’s Instagram posts.

While in the Pulaski County Detention Facility (PCDF), Usifo made several calls to Johnson. The investigation revealed that Johnson had knowledge of when Usifo was going to travel to Dallas to get the tiger and of Usifo’s possession of the tiger. Johnson also fed the tiger for Usifo during Usifo’s incarceration at PCDF. Johnson concealed any knowledge of the tiger when questioned by agents.

The case was investigated by the USFWS, with assistance from the AGFC, Conway Police Department, and the Little Rock Police Department. The case is being prosecuted by Assistant United States Attorney Edward Walker.

# # #

Additional information about the office of the

United States Attorney for the Eastern District of Arkansas, is available online at

https://www.justice.gov/edar

X (formerly known as Twitter):

@USAO_EDAR

MIL Security OSI –

January 24, 2025

Category: housing

Cattle and cowboys

Beef replaces bison

Where’s the beef?

The true cost of a burger

Trump’s space policy record

Harris’ space policy record

Stability in major space policy decisions

What is a margin of error?

The group size is important

A concrete example

Comparing support between candidates

2024 will be a close election

Resolving conflicts over public space

Meeting basic needs

Managing mental and behavioral health

A model for other cities

The Kamala Harris factor

The rise and fall of Mark Robinson

Natural disasters

How slavery made the South rich

100 descendants of slaveholders

Privilege with power

The path forward

Updates to this page

Key Takeaways:

Fixed Wireless subscribers on path to double by 2028

Fiber network expected to grow to 35-40 million passings

Outlook and Guidance: Priorities remain unchanged

Forward-Looking Statements

1 Introduction

2 The dot plot and other forms of forward guidance

2.1 The Fed’s dot plot

2.2 Monetary policy communication at the Eurosystem

3 A dot plot for the Eurosystem?

3.1 Independence

3.2 Effectiveness of monetary policy communication

3.3 Projection uncertainty

4 Conclusion

Twelve years after its initiation, it is time to complete the banking union

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