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  • MIL-OSI United Kingdom: PM launches new era for NHS with easier care in neighbourhoods

    Source: United Kingdom – Executive Government & Departments

    Press release

    PM launches new era for NHS with easier care in neighbourhoods

    The Prime Minister launches a new era for the NHS, bringing more easily accessible care closer to home.

    • Prime Minister launches government’s 10 Year Health Plan to bring the NHS closer to home
    • Neighbourhood Health Services to be rolled out across the country, bringing diagnostics, mental health, post-op, rehab, and nursing to people’s doorsteps
    • Neighbourhood health centres will house services under one roof, open at evenings and weekends
    • Plan for Change will rebuild the NHS to train thousands more family doctors, transform hospital outpatient appointments, and provide personalised care plans for complex needs

    Millions of patients will be treated and cared for closer to their home by new teams of health professionals, Prime Minister Keir Starmer will set out today, as the Government’s Plan for Change delivers a brand-new era for the NHS and delivers one of the most seismic shifts in care in the history of the health service.

    The launch of a Neighbourhood Health Service will see pioneering teams, some based entirely under one roof, set up in local communities across the country, to dramatically improve access to the NHS. As part of the Government’s aim to shift care out of hospitals and into the community, they will free up overstrained hospitals from perpetual firefighting so they can focus on delivering only the best, most cutting-edge, and personalised care.

    These neighbourhood health centres will provide easier, more convenient access to a full range of healthcare services right on people’s doorsteps – stopping them from having to make lengthy trip to hospitals. Neighbourhood teams will include staff like nurses, doctors, social care workers, pharmacists, health visitors, palliative care staff, and paramedics. Community health workers and volunteers will play a pivotal role in these teams, and local areas will be encouraged to trial innovative schemes like community outreach door-to-door – to detect early signs of illness and reduce pressure on GPs and A&E.

    Launching the government’s 10 Year Health Plan today, the Prime Minister will set out how moving care from hospitals to the community is one of the three key shifts required to tackle the inherited challenges and neglect of the NHS, make sure it is equipped to look after a modern society, and ensure people feel the change and improvements in healthcare that they voted for.

    Prime Minister Keir Starmer said:

    The NHS should be there for everyone, whenever they need it.

    But we inherited a health system in crisis, addicted to a sticking plaster approach, and unable to face up to the challenges we face now, let alone in the future.

    That ends now. Because it’s reform or die. Our 10 Year Health Plan will fundamentally rewire and future-proof our NHS so that it puts care on people’s doorsteps, harnesses game-changing tech and prevents illness in the first place.

    That means giving everyone access to GPs, nurses, and wider support all under one roof in their neighbourhood – rebalancing our health system so that it fits around patients’ lives, not the other way round.

    This is not an overnight fix, but our Plan for Change is already turning the tide on years of decline with over four million extra appointments, 1,900 more GPs and waiting lists at their lowest level for two years.

    But there’s more to come. This government is giving patients easier, quicker and more convenient care, wherever they live.

    The plan follows Lord Darzi’s diagnosis of the challenges facing the NHS last year where he assessed it was in a ‘critical condition’ as a result of deep rooted issues including low productivity, poor staff morale, a failure to keep up with new technology, rising waiting times, and a deterioration in the health of the nation.

    The PM will set out how the plan will deliver three key shifts to get the NHS back on its feet: hospital to community; analogue to digital; and sickness to prevention. Built around these three principles, the reforms within the plan will deliver the government’s promise to stop rising waiting lists, deliver more convenient care, and tackle inequalities across the country.

    New health centres will house the neighbourhood teams, which will eventually be open 12 hours a day, six days a week within local communities. They will not only bring historically hospital-based services into the community – diagnostics, post-operative care, and rehab – but will also offer services like debt advice, employment support and stop smoking or weight management, all of which will help tackle issues which we know affect people’s health.

    Health and Social Care Secretary Wes Streeting said:

    Our 10 Year Health Plan will turn the NHS on its head, delivering one of the most fundamental changes in the way we receive our healthcare in history.

    By shifting from hospital to community, we will finally bring down devastating hospital waiting lists and stop patients going from pillar to post to get treated.

    This Government’s Plan for Change is creating an NHS truly fit for the future, keeping patients healthy and out of hospital, with care closer to home and in the home.

    The status quo of ‘hospital by default’ will end, with a new preventative principle that care should happen as locally as it can: digital-by-default, in a patient’s home where possible, in a neighbourhood health centre when needed, in a hospital if necessary. This approach will make access to healthcare more convenient for patients and easier to fit around their day to day lives, rather than disrupting people’s work and personal lives.

    Thousands more GPs will be trained under the 10 Year Health Plan, as the Government lays the groundwork to bring back the family doctor, end the 8am scramble and make it easier to see your GP when you need to instead of having to turn to A&E.

    The government inherited an analogue NHS, reliant on paper and fax machines and out of step with modern technology. The government’s plan will bring it into the digital age, making sure staff benefit from the advantages and efficiencies available from new technology. This includes rolling out groundbreaking new tools over the next two years to support GPs. AI scribes will end the need for clinical notetaking, letter drafting, and manual data entry to free up clinicians’ time to focus on treating patients. Saving just 90 seconds on each GP appointment can save the same time as adding 2,000 more doctors into general practice.

    The Government will also use digital telephony so all phone calls to GP practices are answered quickly. For those who need it, they will get a digital or telephone consultation the same day they request it.

    As it stands, some practices are struggling to keep up with an ageing population and 21st century health needs. New contracts will be introduced which encourage and allow practices to cover a wider geographical area. It means smaller practices in the catchment area will get more support to ensure the right access is in place so that everyone can access their GP when they need to.

    Sir James Mackey, Chief Executive, NHS England said:

    The Neighbourhood Health Service is a huge opportunity for us to transform how we deliver care over the next decade – starting right on people’s doorsteps.

    By bringing together a full range of clinicians as one team, we can deliver care that’s more accessible, convenient and better for patients, as well as reducing pressures on hospitals.

    The plan will also deliver on the government’s promise to tackle the current lottery of access to dentists. Dental care professionals will work as part of neighbourhood teams, where Dental therapists could undertake check-ups, treatment, and referrals, while dental nurses could give education and advice to parents or work with schools and community groups. The work therapists cannot do would be safely directed to dentists.

    Under the plan, it will also be a requirement for newly qualified dentists to practice in the NHS for a minimum period, intended to be 3 years.

    Following the government’s work already to roll out supervised toothbrushing for kids, the plan will also improve access to dental care for children, making better use of the wider dental workforce, especially dental therapists, including through a new approach to upskilling professionals to work at the top of their clinical potential beginning in 2026 to 2027. This includes proposals to allow dental nurses to administer fluoride varnish for children in between check-ups, and the greater use of fissure sealants for children – covering back teeth with thin plastic coating to keep germs and food particles out the grooves.

    Matthew Taylor, Chief Executive of the NHS Confederation, said:

    This is a vital step towards a more preventative, community-based NHS. Bringing care closer to people’s homes through blended neighbourhood health teams recognises the complex and interconnected challenges many patients face, and it is the right direction for both improving outcomes and alleviating pressure on hospitals.   

    In many areas of the country, general practices working at scale through primary care networks and GP Federations, are already partnering alongside other organisations to deliver joined up care. It will be important to build on these positive successes.  

    Delivering on this ambition will require sustained investment in digital and estates, support for the NHS’s workforce, and a commitment to decentralise national control by empowering local leaders to do what is best for their populations. On behalf of our members, we are eager to work with the government to help turn this bold vision into lasting change.

    With the 10 Year Health plan the majority of outpatient care will happen outside of hospitals by 2035, by transforming care in the community. New digital tools will allow GPs to refer patients quicker, and a wider range of services available on people’s doorsteps will mean less need to attend appointments in hospital for ophthalmology, cardiology, respiratory medicine, and mental health.

    As a result of this shift to community, hospitals will be able to focus on patients who need hospital care, and get them seen on time again.

    The government’s Plan for Change is already delivering action to cut waiting lists and fix the foundations of the NHS. Waiting lists are at their lowest level in two years, including the first drop in April for 17 years. An extra 4.2million appointments have been delivered since July – over double the government’s target. 10 new surgical hubs have opened since January, and 1,900 more GPs have been recruited since October.

    ENDS

    Further details:

    • Where neighbourhood health teams have been trialled in England, they have significantly reduced hospital use. In Derby, integrated teams led to 2,300 fewer Category 3 ambulance callouts and 1,400 fewer short hospital stays among the over 65 population within a year.
    • The Institute For Public Policy Research has already called for a neighbourhood NHS – arguing a strong primary care sector has been shown to deliver better health outcomes, fewer hospital and emergency department trips, and more efficient healthcare spending.
    • As well as improving access to care for patients, The move to more care in the community will put the NHS back on the path to long-term financial sustainability. A recent study found that £100 spent on community care could achieve, on average, £131 in hospital savings.
    • Care plans are vital to seamless care within the community, but only 20% of people with a long-term condition have one. Through the 10 Year Health Plan, the Government will set a new standard that, by 2027, 95% of people with complex needs have an agreed personal care plan. All care plans should be co-created with patients. This means neighbourhood teams can tailor care for specific patients, working with them and their loved ones to proactively manage their conditions instead of simply reacting and treating emerging issues as is the case under the current system. This is especially important for people with complex needs who are likely to be managing multiple conditions.
    • Unpaid carers will be actively involved in care planning, with family, friends and carers agreeing decisions about care together where appropriate.

    STAKEHOLDER REACTION

    Caroline Abrahams, Charity Director at Age UK said.  

    A Neighbourhood Health Service is at the heart of the NHS 10 Year Plan and it could be a game-changer for our older population if we get it right.

    For far too long healthcare in the community has been fragmented and hard to access and navigate for older people, so crucial opportunities to nip their emerging health problems in the bud get missed.

    At Age UK we aspire to an NHS that proactively supports older people to stay as well as is possible for as long as possible, and if delivered well the Neighbourhood Health Service really could help achieve it.

    Daniel Elkeles, Chief Executive of NHS Providers, said: 

    This plan brings together three key ingredients for success. It provides a renewed focus on what good care will look like for people who depend on the NHS most by investing in GP and new neighbourhood services. 

    It’s a win for patients who will be better informed and empowered to direct their care as never before. 

    And it makes the NHS simpler, ensuring quicker decisions and innovations get to frontline services faster. 

    This is a recipe that offers the prospect of progress where previous plans have faltered. 

    That is a great starting point and all NHS providers will be keen to seize this opportunity to build a better health service that staff, patients and the public are once again proud of.

    Jacob Lant, Chief Executive of National Voices said: 

    The message in today’s plan is clear, for the NHS to thrive services must start to organise themselves around how people and communities actually live their lives.   

    Whether it be through shifting services out of hospitals, making innovative and inclusive use of tech or simply doubling down on getting the basics right, like communicating better with patients, this drive towards user-centred care offers hope for a more efficient and sustainable health service that focuses on patient need and outcomes.   > To ensure no communities are left behind, it is vital that Neighbourhood Health Services look to develop this new offer in partnership with the voluntary sector and the full diversity of citizens that make up the communities they serve.

    Gemma Peters, Chief Executive at Macmillan Cancer Support, said:

    This vision to bring care closer to home is what both the public and the NHS need. 

    3.5 million people are living with cancer today, rising to 4 million by 2030. Without radical change, the NHS cannot meet this growing demand, or ensure that – whoever you are, wherever you live – you can access the care, support and treatment you need when you need it.

    We welcome the Government’s recognition that we now need to mobilise every part of the NHS, communities and the voluntary sector to make sure this Plan succeeds.

    Macmillan is ready to play our part in delivering this vision and the forthcoming National Cancer Plan to ensure everyone has the world class healthcare they deserve.

    Rachel Power, Chief Executive, the Patients Association said:

    We welcome this ambitious transformation set out in the 10 Year Health Plan that delivers on what we called for: integrated, accessible care that is centred on patients’ real lives. Having new neighbourhood health centres open 12 hours a day, six days a week with multidisciplinary teams and clinical and support services under one roof addresses the reality that health challenges don’t exist in isolation.  

    We’re pleased to see the commitment to training thousands more GPs and look forward to a sustainable workforce strategy to support the delivery of these expanded services, along with clarity on how quickly these centres will be rolled out. We remain committed to ensuring genuine patient partnership underpins the design and delivery of these services, so they truly reflect what patients need in their local communities.

    Dr Jeanette Dickson, Chair of the Academy of Medical Royal Colleges said:

    The ambition, scale and innovative approaches set out in the 10 Year Health Plan can only be applauded. It promises a lot and properly implemented, offers an opportunity to revolutionise healthcare.

    It’s clearly not just about getting the NHS back on track, but designing a new healthcare system that’s fit for the challenges of today and tomorrow and one that can work for patients, staff and taxpayers alike. The sheer breadth and scale of what’s been set out will take time to fully digest, but the medical royal colleges are keen and ready to help implement the necessary changes to make this bold vision a reality.

    Katharine Jenner, Director, Obesity Health Alliance said:

    This is a positive step towards the healthier future people want. Obesity is a chronic, relapsing condition that needs long-term support. Crucially, as the Government now rightly recognises, we must also shift to preventing ill health before it starts.

    After years of broken promises, delays and weak voluntary measures, this government must implement their Plan for Change in full this Parliament. Only then we can start to transform our food system – from one that fuels poor health to one that supports good health.

    Real progress means taking mandatory action to tackle the relentless marketing and promotion of unhealthy food, improving access to nutritious options, and making healthy food affordable for everyone, right from the start of life.

    Ravi Gurumurthy, CEO of Nesta, said:

    Nye Bevan’s original vision for the NHS placed prevention at its heart. This plan takes important steps toward realising that ambition. The introduction of a new healthy food standard, alongside ending the sale of cigarettes, are serious interventions that could substantially reduce cases of cancer, heart disease, diabetes and other diseases and narrow health inequalities.

    The shift to a neighbourhood health service has the potential to deliver better care within communities and reduce avoidable hospital admissions.

     Matthew Reed, Chief Executive of Marie Curie, said: 

    We are pleased to see the Government place the needs of patients at the centre of their Plan to reform the NHS, make clear commitments that will help fix the current crisis in palliative and end of life care for local communities, and set out a clear roadmap for creating an NHS that is fit for the future. 

    We look forward to working with them to ensure that additional NHS funding announced in the Spending Review transforms care in the community for people with a terminal illness.

    Dr Charmaine Griffiths, Chief Executive at the British Heart Foundation (BHF), said:

    You can’t upgrade the nation’s health without tackling cardiovascular disease, one of the UK’s biggest killers.

    Today’s ambitious plan lays the foundation for how we can stop more lives lost too soon to heart disease, prevent more heart attacks and strokes, and help more people live with healthier hearts for longer.

    Henry Gregg, Chief Executive of the National Pharmacy Association said:

    The 10,000 NHS pharmacies in England are right in the heart of their communities on high streets, in health centres, close to people’s doorsteps, providing health care and advice to millions every week.

    Pharmacies want to be able to offer better, more joined up care for their communities so they share the Government’s ambition to bring care closer to people.

    It’s important that pharmacies, who already do this work day in day out, are placed at the heart of these plans.

    Investing in pharmacies can create a future where people can drop in for treatment, check ups, medicine reviews, and advice.

    Pharmacies want to work with GPs, social workers and colleagues across the health service to provide better health care, nearer to people’s homes and take pressure off the NHS.

    Janet Morrison, Chief Executive of Community Pharmacy England, said:

    The Government’s plan aligns well with the value that pharmacies can bring and will begin to harness the sector’s potential for the benefit of patients, communities and the wider NHS. Research shows that the public already supports playing community pharmacies playing a bigger role in healthcare services, and the sector has a unique ability to break down barriers to care coupled with an astonishingly strong record on efficiency. 

    But before this plan can become a reality, first the Government must deliver on its commitment to build the sustainable funding model that community pharmacy so desperately needs. The millions of people relying on them every day don’t want to lose their local pharmacies to financial collapse, which is something the Government should carefully consider as it seeks to implement its plan.

    This plan is not the end of the road; it’s just the beginning.

    Updates to this page

    Published 2 July 2025

    MIL OSI United Kingdom –

  • MIL-OSI Russia: Kingdom of the Netherlands – Curaçao: Staff Concluding Statement of the 2025 Article IV Mission

    Source: IMF – News in Russian

    July 2, 2025

    A Concluding Statement describes the preliminary findings of IMF staff at the end of an official staff visit (or ‘mission’), in most cases to a member country. Missions are undertaken as part of regular (usually annual) consultations under Article IV of the IMF’s Articles of Agreement, in the context of a request to use IMF resources (borrow from the IMF), as part of discussions of staff monitored programs, or as part of other staff monitoring of economic developments.

    The authorities have consented to the publication of this statement. The views expressed in this statement are those of the IMF staff and do not necessarily represent the views of the IMF’s Executive Board. Based on the preliminary findings of this mission, staff will prepare a report that, subject to management approval, will be presented to the IMF Executive Board for discussion and decision.

    Washington, DC.

    Curaçao’s economic activity expanded by 5 percent in 2024, as strong tourism performance trickled into the wider economy. Stayover arrivals, growing at double digits, continued to outperform Caribbean peers and carried over to other sectors, including whole trade, real estate, and construction. Mostly related to holiday homes and hotels, construction was further fueled by strong mortgage growth and complemented by a resumption of public investments under the Road Maintenance Plan. Average headline inflation declined to 2.6 percent in 2024 from 3.5 percent in 2023, in line with global oil prices and lower US inflation. Real wages increased for the first time in five years but job creation continued to be dominated by informal construction and tourism-related sectors while formal employment declined. The primary surplus continued its upward trajectory on the back of increased tax collection on goods and services. The current account deficit widened due to higher merchandise imports, mainly related to construction activity.

    The government is pursuing an ambitious agenda to steer a now tourism-led economy, amidst heightened global uncertainty. Mindful of tourism saturation and a decoupling of local living standards, the authorities strive to improve social conditions while generating sustainable and green growth amid safeguarding solid public finances. The near doubling of the tourism footprint within five years brought profound structural shifts to Curaçao’s economy, including the decline in manufacturing and rise in services, lower overall wages, higher informality, and greater reliance on – more regressive – indirect taxation. Policy responses need to shift accordingly. Priorities are rightly focused on upgrading tourist experiences and diversification, improving skills and labor market conditions, and reforming the tax system in an equitable way while addressing social spending pressures. The administration has delivered on a first round of targeted, one-off pension increases this year, continued reforms to contain health costs, expanded investment in education infrastructure, and came closer to its renewables target with the opening of the latest wind park in 2024. The landspakket, a structural reform package agreed with the Netherlands in 2020, continues to guide structural reforms.

    Outlook and Risks

    Growth is projected to moderate to 4 percent in 2025, balancing domestic impulses and heightened global uncertainty, before gradually converging to 2 percent over the medium term. Further expansion of stayover tourism and construction activity will continue to support growth in 2025, along with fiscal expansion driven by higher public investments. Potential negative effects of slowing global demand and heightened uncertainty would dampen tourism flows towards the end of 2025 and 2026. Growth is expected to moderate to 2 percent over the medium term, given saturation in tourism and slower global demand, while public capital spending would be carried forward, including in road infrastructure and the energy value chain. Headline inflation is projected to stabilize at 2.5 percent in 2025, subject to oil price-related uncertainty. Fiscal accounts would remain in surplus, fully compliant with the fiscal rule, allowing the government to partially settle a large bullet loan in 2025 with own liquid reserves, thereby accelerating the impressive downward trajectory of debt. The current account deficit would decline in the medium term but remain elevated.

    Risks to the outlook are tilted to the downside. External risks include trade policy and investment shocks, which could induce higher inflation and lower external demand, adversely impacting tourism arrivals. Domestic upside risks include faster-than-expected advances in the green hydrogen value chain project and development of other energy sources. On the downside, lower-than-expected disbursements in public investments and delays in infrastructure improvements could set back the expected increase in potential growth from the expansion of hotel capacities. Continued high growth in mortgage credit fueling rising house prices could lead to financial sector as well as household balance sheet vulnerabilities. Buffers include access to favorable refinancing conditions on the Dutch capital market, subject to compliance with the fiscal rule, which grants the island substantial fiscal space, notably for capital and emergency spending.

    Tailoring Fiscal and Structural Policies to a Tourism-led Economy

    Safeguarding Medium-term Fiscal Sustainability

    Reaching the medium-term debt target and further sustaining growth will require weighing the need to boost investments and address social spending pressures while reforming the tax system in an equitable manner.  

    Advancing healthcare reforms is an urgent priority to restore the sector’s financial sustainability and limit medium-term fiscal risks. Annual deficits of the SVB healthcare fund amounted to around 5 percent of GDP over the past years, excluding central government transfers, with an additional 1 percent of GDP annual deficit by the Curaçao Medical Center. Transfers to the latter were recently increased to better cover operating costs and invest in new medical equipment, but the health system’s overall finances remain unsustainable. Curaçao’s health expenses, around 13 percent of GDP, stand out relative to regional peers and surpass the OECD average. Possible efficiency gains on the spending side would include additional volume and price measures for pharmaceuticals, re-evaluation of laboratory service tariffs, further expansion of primary care to contain hospital visits, and improvements in preventive care, with the latter likely to materialize over the longer horizon. Revenue reform options would include a broadening of the contributor base, e.g., via the inclusion of migrant workers, increasing co-payments for higher-income households, allowing for price differentiation for the privately insured, exploring options to charge for add-on services, with a possible secondary, private insurance market for these services, and expanding the potential in medical tourism. 

    The authorities’ plans to adjust pension benefits for lower-income households in a fiscally responsible manner are welcome and should be accompanied by widening the contribution base. Staff welcomes the intention to reassess benefit levels, given the pausing of indexation and a decline in real per capita benefits by 23 percent between 2016 and 2024. Applying inflation indexation to residents’ pensions only would allow for a broadly balanced budget of the old-age pension scheme (before central government transfers). Considerations to providing a supplement for low-income pensioners, which could cost around ½ percent of GDP per year, should be partially financed by broadening the contributor base. Legalizing predominantly young migrant workers and providing incentives for them and their employers to formalize (see below) would increase revenues by about 0.3 percent of GDP. Ensuring longer-term sustainability of social insurances would likely imply tapping general budget resources, which could be expanded with selected measures while avoiding earmarking (see below). Meanwhile, the current draft law to make second-pillar occupational pension plans mandatory would reduce reliance on old-age pensions and increase private savings, which would also help alleviate the sizable current account deficit.

    The authorities envisage the introduction of a VAT while continuing the modernization of the tax authority and improving revenue collection. Given Curaçao’s already significant tax burden and the recent expansion of direct taxation from a pre-pandemic average of 11 percent of GDP to 14 percent of GDP in 2024, plans to design the envisaged VAT reform in a revenue-neutral and equity-enhancing way are welcome. Expanding property taxation on second homes should be prioritized, as well as the purchase and implementation of digital infrastructure to modernize Curaçao’s tax system. Further considerations to introduce a tourism fee (by 2026), end tax holidays on import duties, and adjust permitting fees would lift revenues and contribute to compensating for potential pension increases.

    Further efforts are needed to boost investments and improve government service delivery. While capacity constraints were successfully addressed in the ramp-up of investments in 2024, including by hiring external project managers, capacity in planning and execution must be strengthened further to administer the needed investment increase of 2-3 percent of GDP in the coming years, including via a centralized investment planning unit. Implementing multi-year project budgeting and establishing a transparent procurement system will be critical to improve execution, ensure the efficient allocation of financing resources, and grant space to a gradual inclusion of adaptation investments against damage from sea level rise. Efforts to render health and pension spending as well as goods and services taxation more equitable hinge on improving means-testing and maintaining a state-of-the-art registry for lower-income households.  

    Labor Market Policies to Address Informality and Improve Education

    Informality could be addressed by strengthening incentives for formal work, improving enforcement and monitoring, and tightening eligibility criteria for receiving benefits. Decomposing changes in the formal workforce over the past decade, the strong decline in formal employment was mostly driven by a drop in registered jobs among men, especially in prime working age. Half of this decline cannot be explained by demographics, migration, or unemployment, and is likely attributed to the transition to informality. Tourism and construction sectors offer relatively more opportunities for informal work, making it harder to design the right incentives for formalization. Incentivizing formality, however, is crucial to maintaining government revenues and ensuring social protection for workers, and could be fostered by: facilitating access to education, increasing formal sector productivity, introducing more in-work benefits for workers with incomes between minimum and median wage, and stricter eligibility criteria for monthly assistance, along with strengthening enforcement and monitoring.

    Skill deterioration compounded by population aging is a key drag on long-term potential growth. The 2023 census showed that education levels of new entrants to the labor force are below the level of the pre-retirement cohort, and young employees tend to work in more precarious positions. Ongoing investments in education, in line with landspakket recommendations, including in schools’ physical as well as digital infrastructure, are very welcome. Recent initiatives to attract graduates back to the island, including with tax incentives, and an expedited labor permitting process for high-skill workers are important steps in the right direction. These could be complemented by vocational training to lift the overall skill level and reduce skill mismatches, in line with government’s proposed stimulation package with incentives for employer-led vocational education. Integrating migrants into the workforce would grant them perspectives to grow and invest in their skills.

    Fostering Competitiveness and Diversification

    Bracing for slower growth and mindful of market saturation and the global context, the authorities’ focus is rightly on tourism value added and diversification of source markets. Roads and transportation are among the key bottlenecks of the island, and more public investments are needed to improve the connectivity within the island for tourists to venture out. Public and private investments should also be directed to maritime infrastructure to attract more yacht tourists and move up the tourism value chain. Increasing the number of taxi licenses is welcome and will improve tourist experiences through better mobility. Efforts to tap markets in South America have proven successful, and new flight routes opened from Brazil, Argentina, and Colombia, countries with a large consumer base and rising purchasing power.

    Fostering non-tourism sectors in areas of competitive advantage would help build resilience against global shocks and attract additional investments. Building on recent successful reforms to expedite business permits and promote digitalization, more progress is needed to achieve the authorities’ goals as outlined in the National Export Strategy. Curaçao’s connection to a new submarine cable throughout the Caribbean and Miami from 2027 onwards could help expand the island’s data center industry – conditional on sufficient absorption capacity of the electricity grid and a moderation in electricity prices, which remain among the highest in the region. Planned investments in the grid by Aqualectra would be supported by funding from the Netherlands and provide the basis for lifting renewables electricity production to 70 percent by 2027 from around 50 percent currently. The envisaged floating offshore wind park of 3-10 GW would help cover Curaçao’s entire electricity demand and create new export opportunities, in addition to exploratory investments in other energy sources.

    In the presence of global uncertainty, diversification of trade as well as regional integration are key for mitigating Curaçao’s exposure to external shocks. Curaçao’s imports remain concentrated on advanced markets, providing ample room to expand goods imports from neighboring countries, such as Brazil and Colombia. As a new associate CARICOM member and acknowledging limitation of independent trade policy given Kingdom laws, Curaçao should continue strengthening regional cooperation and trade integration with neighboring states.

    The authorities’ commitment to lower corruption vulnerabilities are welcome. The online gaming law has been approved by parliament in end-2024, an important step towards meeting the landspakket’s rule of law target. Curaçao’s recent accession to the UN Convention Against Corruption and delisting from the EU grey list of non-cooperative jurisdictions, following key legal updates in 2024, is another step in the right direction and opens doors for further international cooperation and bilateral tax treaties, as pursued by the authorities. The mutual evaluations of the AML/CFT frameworks for both Curaçao and Sint Maarten are underway, with results expected to be published in mid-July 2025.

    The Monetary Union of Curaçao and Sint Maarten

    The external balance of the Union is expected to improve, following a mild deterioration in 2024. The Union’s current account deficit widened to around 17 percent of GDP in 2024 driven by higher imports, mainly related to construction on Curaçao, and despite strong growth in tourism receipts. Going forward, stronger travel receipts, moderation in construction-related imports, and an increase in renewables would support a contraction of the Union’s current account deficit towards 10 percent of GDP in the medium term. The deficit will continue to be financed by private investment inflows and decumulation of assets abroad. The stock of international reserves would remain broadly stable and adequate over the medium term. Given still sizable deficits and a sustained real effective exchange rate appreciation, staff’s preliminary assessment suggests that the external position in 2024 was weaker than the level implied by fundamentals and desirable policies in Curaçao and broadly in line in Sint Maarten, albeit subject to high uncertainty given persistent measurement biases. The assessment for the Union is the same as for Curaçao due to its larger size and current account deficits.

    The monetary policy stance is appropriate and continues to support the peg. Following developments in the US, the CBCS cut its benchmark pledging rate by a cumulative 100 basis points in September and November 2024 to 4.75 percent, and has kept it unchanged since then, in line with the pegged exchange rate regime. Transmission to banking sector interest rates continues to be weak, as deposit rates stayed broadly constant throughout the recent tightening and easing cycles, with a mild uptick in late 2023 driven by time deposits, and Union lending rates declined between 2018 and end 2024. Excess liquidity is the key impediment to the transmission, further exacerbated by the absence of interbank and government securities markets.

    With lending rates declining, credit growth has accelerated, entirely driven by mortgages in Curaçao. Mortgage credit in the union, the second highest in the Caribbean, has been growing by double digits in real terms post pandemic, while real overall credit growth has been negative. Driven by Curaçao, mortgages are expected to remain on an upward trajectory, including financing for the construction of second homes and vacation rental apartments. In Sint Maarten, on the contrary, mortgage credit growth turned negative in 2024, possibly reflecting delays in construction projects and cross-border financing on the French side. With the islands’ financial sectors predominantly financing tourism-related activities, credit to non-tourism sectors is declining in real terms.

    The financial sector is broadly sound and systemic risks are contained, but mortgage growth needs to be monitored closely while a macroprudential toolkit is further developed. Banks are well capitalized, among the highest in the region, but both NPLs and provisioning remain weaker than the CBCS early warning signal – and with respect to peers. Liquidity is abundant and has further increased, but the Union’s banks are somewhat less profitable than the Caribbean median and concentration remains high. Closely monitoring mortgage growth to detect overheating in the real estate sector and possible vulnerabilities in household balance sheets should become a priority, in particular given continued data gaps. Overcoming these gaps and further developing a macroprudential toolkit towards the introduction of CCyBs, and thresholds for the loan-to-value and debt-service-to-income ratios are warranted to detect vulnerabilities and ensure timely response to potential shocks. Caps on mortgage credit growth or mortgage loan exposure could be applied should the positive mortgage credit gap widen further.

    The IMF mission would like to thank the authorities for their cooperation and the candid and constructive discussions that took place during June 18-25.

    IMF Communications Department
    MEDIA RELATIONS

    PRESS OFFICER: Reah Sy

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

    https://www.imf.org/en/News/Articles/2025/07/02/07022025-curacao-staff-concluding-statement-of-the-2025-article-iv

    MIL OSI

    MIL OSI Russia News –

  • MIL-OSI USA: Governor Kehoe Signs Five Bills into Law

    Source: US State of Missouri

    JULY 2, 2025

    Jefferson City — Today, Governor Mike Kehoe signed five pieces of legislation into law: Senate Bills (SB) 28 and 396, and House Bills (HB) 105, 169, and 974.

    “Today, we were proud to sign five bills that will benefit businesses and local governments across our state,” said Governor Kehoe. “Thank you to the men and women of the General Assembly for sending many pieces of quality legislation to my desk this session. We look forward to signing even more legislation that improves the lives of Missourians next week.”

    SB 28, sponsored by Senator Jason Bean and Representative Donnie Brown, modifies provisions relating to transportation.

    • Adds retired law enforcement and judicial members to the confidential motor vehicle and drivers licensing records statute.
    • Requires motor vehicle sales taxes to be paid before a temporary tag can be issued. This now includes transactions between individuals and through out-of-state dealers.
      • The effective date of this is delayed until the Missouri Department of Revenue’s (DOR) Motor Vehicle and Driver License System is completed.
    • Modifies specialty license plate provisions, including creating a new United States Space Force military specialty license plate.
    • Places vehicle, boat, and powersports dealers on a level playing field in regards to the fees they are required to remit to DOR.

    SB 396, sponsored by Senator Ben Brown and Representative Brad Banderman, authorizes the board of trustees of a consolidated public library district to change the dates of the fiscal year.

    • Allows the board of trustees of a consolidated library district to select a different fiscal year structure than the state fiscal year calendar.

    HB 105, sponsored Representative Jeff Vernetti and Senator Mike Bernskoetter, authorizes the conveyance of certain state property.

    • Outlines the deed property language for the conveyance of the Lee C. Fine Memorial Airport from the Missouri Department of Natural Resources to the city of Osage Beach, giving Osage Beach more freedom and flexibility to make improvements without grant funding.
    • Conveys two tracts of land from the site of the former Missouri State Highway Patrol Troop A Headquarters located in Lee’s Summit. The land will be conveyed from the State of Missouri to the Missouri Highways and Transportation Commission for the purpose of a new intersection, allowing the outer roads and city streets to be received by Lee’s Summit once the new bridge and intersection is completed.
    • Outlines the deed property language for conveying a tract of land in Webster County from the State of Missouri to the Missouri Highways and Transportation Commission, allowing for improvements to increase road safety by reducing conflict points, decreasing congestion, and replacing aging infrastructure.

    HB 169, sponsored by Representative Donnie Brown and Senator Jason Bean, modifies provisions relating to cotton trailers.

    • Redefines “cotton trailers,” increasing the allowed maximum speed to 70 MPH from 40 MPH.
    • Updates specific hauling requirements for cotton trailers to align with modern technological advancements.

    HB 974, sponsored by Representative Jim Murphy and Senator Sandy Crawford, establishes provisions relating to insurance for certain uses of motor vehicles.

    • Implements the National Association of Insurance Commissioners (NAIC) model language related to cyber security standards on insurance companies, aimed at protecting consumer data.
    • Implements the National Council of Insurance Legislators model language related to peer-to-peer driving rental services.

    For more information on the legislation and additional provisions signed into law, visit house.mo.gov and senate.mo.gov. Photos from the bill signing will be uploaded to Governor Kehoe’s Flickr page.

    ###

    MIL OSI USA News –

  • MIL-OSI USA: Washington state files amicus brief in support of legal challenge to unlawful termination of Job Corps

    Source: Washington State News

    SEATTLE — Attorney General Nick Brown today filed an amicus brief with the attorneys general from 21 other states in support of a proposed class of plaintiffs challenging the unlawful termination of Job Corps, a national program that offers career training and housing to young Americans from low-income backgrounds. 

    Last week, the U.S. District Court for the Southern District of New York issued a preliminary injunction in favor of the plaintiffs challenging in National Job Corps Association et al. v. Department of Labor et al., noting in its opinion that the coalition of states led by Washington had opposed the termination of the program. Today’s filing urges the court, weighing a motion brought by enrollees in the program, to affirm that an injunction should remain in place.      

    Job Corps has nearly 100 residential campuses across the country, and the Trump Administration’s effort to illegally terminate the program threatens to leave thousands of vulnerable young Americans homeless. The brief explains that “in the sixty years since Congress created Job Corps, millions of young Americans from low-income backgrounds have been served by the program’s unique combination of education, training, housing, healthcare and community.” 

    Unlawful termination of the program would impact tens of thousands of young Americans who are currently enrolled and housed at campuses in all fifty states, including the Cascades Job Corps Center in Sedro-Woolley, Washington and the Tongue Point Job Corps Center in Astoria, Oregon. Thousands of these program participants were unhoused or in foster care when they enrolled and have no alternative housing if they lose their residence through the program.

    Today’s brief was filed in Cabrera et al. v. Department of Labor et al. in the United States District Court for the District of Columbia, with Attorney General Brown and Nevada Attorney General Aaron Ford leading a coalition including Arizona, California, Colorado, Connecticut, Delaware, the District of Columbia, Hawai’i, Illinois, Maine, Maryland, Massachusetts, Michigan, Minnesota, New Jersey, New Mexico, New York, Oregon, Rhode Island, Vermont and Wisconsin.

    Today’s amicus filing reaffirms that keeping an injunction in place is necessary to protect vulnerable state residents and promote state goals in education and workforce development. It further reinforces the point that the Trump administration cannot violate federal law and the Constitution by terminating congressionally mandated programs it opposes.

    A copy of the amicus brief is available here.

    -30-

    Washington’s Attorney General serves the people and the state of Washington. As the state’s largest law firm, the Attorney General’s Office provides legal representation to every state agency, board, and commission in Washington. Additionally, the Office serves the people directly by enforcing consumer protection, civil rights, and environmental protection laws. The Office also prosecutes elder abuse, Medicaid fraud, and handles sexually violent predator cases in 38 of Washington’s 39 counties. Visit www.atg.wa.gov to learn more.

    Media Contact:

    Email: press@atg.wa.gov

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    MIL OSI USA News –

  • MIL-OSI Australia: Rate cuts bring relief as stress levels drop

    Source: Premier of Victoria

    • NAB Consumer Stress Index eased to a two-year low
    • Small cutbacks putting $4860 a year back in Aussies’ pockets

    Australians are starting to breathe a little easier, with consumer stress dropping to its lowest point in two years, thanks to easing cost-of-living pressures and growing hope around interest rates.

    NAB’s latest Consumer Sentiment Survey shows the stress index has dropped to 56.6, down from 59.6 in March, below the long-term average.

    NAB Executive Lucia La Bella says recent rate cuts are already making a difference in how people are feeling about their finances.

    And fewer Australians are seeing big jumps in mortgages, rent and transport.

    “We’re seeing a sense of optimism about the future and more confidence that there’s light at the end of the tunnel,” Ms La Bella said.

    “We’re seeing some relief already among mortgage holders with almost half saying they’re feeling the benefits of recent rate cuts.

    “With another RBA meeting just days away, many households are watching closely and planning their budgets.”

    Cost-of-living is still the main concern among Australians although it has now eased to its lowest level in three years.

    Households are continuing to tighten their belts, cutting back on things like eating out, entertainment and travel – saving an average of $4860 a year. But it’s not just about cutting back, people are shopping smarter too.

    One in three are switching to cheaper brands, one in four are doing their homework before buying, and one in ten are snapping up deals when they see them.

    “They’re showing resilience, making smart choices, and setting themselves up for a stronger financial future,” Ms La Bella said.

    With a new financial year here, it’s a good opportunity to start fresh with a new budget. Free tools like the NAB Budget Planner are a good place to start.

    Notes to editor:  

    • NAB’s measure of consumer stress is based on household stresses arising from their job security, health, ability to fund retirement, cost of living and the impact of Government policies.
    • NAB Economics forecasts three further 25bp cuts in 2025 taking the cash rate back to a broadly neutral rate of 3.1%.
    • The NAB Consumer Sentiment Survey uses data from 2,000 people

    ENDS 

    For further information:
    NAB Media: +61 (0) 3 7035 5015

    Customers, banking & finance

    SEE ALL TOPICS

    Media Enquiries

    For all media enquiries, please contact the NAB Media Line on 03 7035 5015

    MIL OSI News –

  • MIL-OSI USA News: 160th Anniversary of the United States Secret Service, 2025

    Source: US Whitehouse

    class=”has-text-align-center”>By the President of the United States of America

    A Proclamation

    On April 14, 1865, President Abraham Lincoln signed legislation authorizing the creation of the United States Secret Service, the very same day an assassin’s bullet tragically took his life.  Ironically, the agency he established likely could not have saved him.  Its original purpose was not protection, but preservation, tasked with ending the widespread counterfeiting that threatened to destabilize the post-Civil War economy.  Less than 3 months later, on July 5, 1865, the Secret Service officially began operations within the Department of the Treasury. 

    Over time, the agency’s mission began to expand.  Following the assassination attempt of William McKinley in 1901, the Congress entrusted the Secret Service with the solemn duty of protecting the President of the United States.  What began as an effort to defend America’s currency became a lasting commitment to defend its highest office.  Today, the Secret Service stands among the Nation’s most elite and storied law enforcement agencies, defined by honor, vigilance, and its enduring motto:  “Worthy of Trust and Confidence.”

    More than 8,000 men and women serve in the Secret Service, united by a mission that demands excellence, resilience, and steadfast loyalty.  They protect the President and Vice President, their families, former presidents, major presidential candidates, and visiting foreign dignitaries.  Their watch extends to the White House, the Vice President’s residence, National Special Security Events, and critical sites around the world.  Agents undergo intense and rigorous training to earn their post, ensuring that only the most disciplined and determined are entrusted with this sacred duty.  Even in moments of grave danger, these warriors stand firm, confronting threats with unshakable resolve, unmatched skill, and the quiet strength that defines the very best of American law enforcement.  

    The United States Secret Service has stood as an unflinching shield against violence and mayhem, answering the call whenever danger arises to protect our national leadership.  Agents have placed themselves in harm’s way to protect against the attempted assassinations of President-elect Franklin Roosevelt in 1933, President Harry Truman in 1950, President Gerald Ford in 1975, President Ronald Reagan in 1981, and two attempts against my own life in 2024.  In each of these moments, they acted with split-second courage and absolute devotion to duty.  I witnessed their bravery firsthand — calm under pressure, fearless in the face of danger, and wholly committed to the mission.  Behind these historical incidents stand countless additional threats, lives protected without fanfare, and sacrifices made without recognition.  To risk laying down one’s life for another is the most selfless act of patriotism and humanity, and I am forever indebted to the agents who risk everything to guard me from harm.

    As we commemorate the 160th anniversary of the United States Secret Service, our Nation proudly honors the heroism, discipline, and unwavering commitment of every agent who have placed their lives in the line of fire so that our Republic, our freedom, and our glorious constitutional order may endure.  Their bravery stands as a powerful testament to the spirit of America, undaunted in the face of danger and resolute in the defense of liberty.

    NOW, THEREFORE, I, DONALD J. TRUMP, President of the United States of America, by virtue of the authority vested in me by the Constitution and the laws of the United States, do hereby proclaim July 5, 2025, as the 160th Anniversary of the United States Secret Service.  I call upon all Americans to offer our unending gratitude and respect to the 8,000 employees of the United States Secret Service in more than 150 offices across the country and abroad that serve on the edge of danger to defend the safety and security of our communities and uphold the sovereignty and strength of our Republic.

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

                                   DONALD J. TRUMP

    MIL OSI USA News –

  • MIL-OSI USA News: 160th Anniversary of the United States Secret Service, 2025

    Source: US Whitehouse

    class=”has-text-align-center”>By the President of the United States of America

    A Proclamation

    On April 14, 1865, President Abraham Lincoln signed legislation authorizing the creation of the United States Secret Service, the very same day an assassin’s bullet tragically took his life.  Ironically, the agency he established likely could not have saved him.  Its original purpose was not protection, but preservation, tasked with ending the widespread counterfeiting that threatened to destabilize the post-Civil War economy.  Less than 3 months later, on July 5, 1865, the Secret Service officially began operations within the Department of the Treasury. 

    Over time, the agency’s mission began to expand.  Following the assassination attempt of William McKinley in 1901, the Congress entrusted the Secret Service with the solemn duty of protecting the President of the United States.  What began as an effort to defend America’s currency became a lasting commitment to defend its highest office.  Today, the Secret Service stands among the Nation’s most elite and storied law enforcement agencies, defined by honor, vigilance, and its enduring motto:  “Worthy of Trust and Confidence.”

    More than 8,000 men and women serve in the Secret Service, united by a mission that demands excellence, resilience, and steadfast loyalty.  They protect the President and Vice President, their families, former presidents, major presidential candidates, and visiting foreign dignitaries.  Their watch extends to the White House, the Vice President’s residence, National Special Security Events, and critical sites around the world.  Agents undergo intense and rigorous training to earn their post, ensuring that only the most disciplined and determined are entrusted with this sacred duty.  Even in moments of grave danger, these warriors stand firm, confronting threats with unshakable resolve, unmatched skill, and the quiet strength that defines the very best of American law enforcement.  

    The United States Secret Service has stood as an unflinching shield against violence and mayhem, answering the call whenever danger arises to protect our national leadership.  Agents have placed themselves in harm’s way to protect against the attempted assassinations of President-elect Franklin Roosevelt in 1933, President Harry Truman in 1950, President Gerald Ford in 1975, President Ronald Reagan in 1981, and two attempts against my own life in 2024.  In each of these moments, they acted with split-second courage and absolute devotion to duty.  I witnessed their bravery firsthand — calm under pressure, fearless in the face of danger, and wholly committed to the mission.  Behind these historical incidents stand countless additional threats, lives protected without fanfare, and sacrifices made without recognition.  To risk laying down one’s life for another is the most selfless act of patriotism and humanity, and I am forever indebted to the agents who risk everything to guard me from harm.

    As we commemorate the 160th anniversary of the United States Secret Service, our Nation proudly honors the heroism, discipline, and unwavering commitment of every agent who have placed their lives in the line of fire so that our Republic, our freedom, and our glorious constitutional order may endure.  Their bravery stands as a powerful testament to the spirit of America, undaunted in the face of danger and resolute in the defense of liberty.

    NOW, THEREFORE, I, DONALD J. TRUMP, President of the United States of America, by virtue of the authority vested in me by the Constitution and the laws of the United States, do hereby proclaim July 5, 2025, as the 160th Anniversary of the United States Secret Service.  I call upon all Americans to offer our unending gratitude and respect to the 8,000 employees of the United States Secret Service in more than 150 offices across the country and abroad that serve on the edge of danger to defend the safety and security of our communities and uphold the sovereignty and strength of our Republic.

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

                                   DONALD J. TRUMP

    MIL OSI USA News –

  • MIL-OSI Canada: The Government of Canada funds energy projects in Alberta and the Northwest Territories to build a strong, sustainable economy

    Source: Government of Canada News (2)

    July 2, 2025 – Yellowknife, Northwest Territories

    Today, the Honourable Julie Dabrusin, Minister of Environment and Climate Change, visited Denendeh Manor, a four-storey Indigenous-owned apartment building in Yellowknife, to announce over $13.3 million in support of five projects in Alberta and the Northwest Territories.

    These projects are being funded under the Low Carbon Economy Fund (LCEF), which invests in projects that reduce greenhouse gas emissions, generate clean growth, build resilient communities, and create jobs for Canadians through four distinct funding streams. They are essential to building a clean economy and keeping Canadian innovation climate competitive.

    Three of the projects being announced are receiving funding from the LCEF Challenge stream, which supports a variety of organizations in adopting proven, low-carbon technologies to reduce their carbon footprint and stay climate competitive. The other two are receiving funding from the LCEF Indigenous Leadership stream, which supports Indigenous-owned and Indigenous-led renewable energy, energy efficiency, and low-carbon heating projects across Canada.

    • The Sherritt International Corporation is receiving approximately $1.6 million from the Challenge stream to increase the efficiency of the natural gas-fired boilers it uses to generate steam for its fertilizer plant in Fort Saskatchewan, Alberta.
    • Cavendish Farms Corporation is receiving nearly $1.4 million from the Challenge stream to install a heat recovery system and reduce reliance on natural gas at its Lethbridge, Alberta facility.
    • The Taurus Canada Renewable Natural Gas Corporation is receiving approximately $3.4 million from the Challenge stream to construct the world’s first small-scale biogenic carbon capture and storage project, using manure anaerobic digestion on the Kasko Cattle Co. Ltd. feedlot site.
    • Denendeh Manor GP Ltd. is receiving approximately $2.3 million from the Indigenous Leadership stream to improve energy efficiency and low carbon heating at Denendeh Manor in Yellowknife, Northwest Territories.
    • The Inuvialuit Regional Corporation is receiving approximately $4.6 million from the Indigenous Leadership stream to supply ground-mounted solar installation kits to Inuvialuit-owned cabins in the Inuvialuit Settlement Region of the Northwest Territories.

    These investments reaffirm the Government of Canada’s strong commitment to building a clean, sustainable economy for all; achieving its greenhouse gas emission reduction targets; and protecting our environment.

    MIL OSI Canada News –

  • MIL-OSI Canada: The Government of Canada funds energy projects in Alberta and the Northwest Territories to build a strong, sustainable economy

    Source: Government of Canada News (2)

    July 2, 2025 – Yellowknife, Northwest Territories

    Today, the Honourable Julie Dabrusin, Minister of Environment and Climate Change, visited Denendeh Manor, a four-storey Indigenous-owned apartment building in Yellowknife, to announce over $13.3 million in support of five projects in Alberta and the Northwest Territories.

    These projects are being funded under the Low Carbon Economy Fund (LCEF), which invests in projects that reduce greenhouse gas emissions, generate clean growth, build resilient communities, and create jobs for Canadians through four distinct funding streams. They are essential to building a clean economy and keeping Canadian innovation climate competitive.

    Three of the projects being announced are receiving funding from the LCEF Challenge stream, which supports a variety of organizations in adopting proven, low-carbon technologies to reduce their carbon footprint and stay climate competitive. The other two are receiving funding from the LCEF Indigenous Leadership stream, which supports Indigenous-owned and Indigenous-led renewable energy, energy efficiency, and low-carbon heating projects across Canada.

    • The Sherritt International Corporation is receiving approximately $1.6 million from the Challenge stream to increase the efficiency of the natural gas-fired boilers it uses to generate steam for its fertilizer plant in Fort Saskatchewan, Alberta.
    • Cavendish Farms Corporation is receiving nearly $1.4 million from the Challenge stream to install a heat recovery system and reduce reliance on natural gas at its Lethbridge, Alberta facility.
    • The Taurus Canada Renewable Natural Gas Corporation is receiving approximately $3.4 million from the Challenge stream to construct the world’s first small-scale biogenic carbon capture and storage project, using manure anaerobic digestion on the Kasko Cattle Co. Ltd. feedlot site.
    • Denendeh Manor GP Ltd. is receiving approximately $2.3 million from the Indigenous Leadership stream to improve energy efficiency and low carbon heating at Denendeh Manor in Yellowknife, Northwest Territories.
    • The Inuvialuit Regional Corporation is receiving approximately $4.6 million from the Indigenous Leadership stream to supply ground-mounted solar installation kits to Inuvialuit-owned cabins in the Inuvialuit Settlement Region of the Northwest Territories.

    These investments reaffirm the Government of Canada’s strong commitment to building a clean, sustainable economy for all; achieving its greenhouse gas emission reduction targets; and protecting our environment.

    MIL OSI Canada News –

  • MIL-OSI Canada: The Government of Canada funds projects in Alberta and the Northwest Territories to build a strong, sustainable economy

    Source: Government of Canada News

    The Government of Canada announced five projects receiving funding under the Low Carbon Economy Fund.

    The Low Carbon Economy Fund is an important part of Canada’s clean growth and climate action plans. It invests in projects that reduce greenhouse gas emissions, generate clean growth, build resilient communities, and create jobs for Canadians.

    The Low Carbon Economy Fund consists of four funding streams: the Leadership Fund, the Challenge Fund, the Indigenous Leadership Fund, and the Implementation Readiness Fund. Three of the projects announced are being funded by the Challenge Fund, which aims to help organizations adopt proven, low-carbon technologies to cut greenhouse gas emissions. The other two projects are being funded under the Indigenous Leadership Fund, which supports Indigenous-owned and Indigenous-led renewable energy, energy efficiency, and low-carbon heating projects across Canada.

    List of projects

    Recipient: Sherritt International Corporation
    Project title: Boiler Economizer
    Project description: Sherritt operates a production facility in Fort Saskatchewan, Alberta, which refines nickel and cobalt and produces ammonia and ammonium sulphate fertilizer. Sherritt currently uses two natural gas-fired steam boilers to provide steam for process use and heating throughout the facility. This project adds economizers to both boilers to preheat the boiler feedwater using waste heat from the boiler stack exhaust. The boiler economizers will increase boiler efficiency, reduce natural gas use, and reduce greenhouse gas emissions from combustion of natural gas.
    Province/Territory: Alberta
    Funding amount: $1,600,000
    Funding stream: Challenge 2023

    Recipient: Cavendish Farms Corporation
    Project title: Line 1 Fryer Heat Recovery – Lethbridge
    Project description: This project will recover heat energy from fryer exhaust and deposit it in various facility processes requiring heat. By using recovered heat energy, this project will reduce greenhouse gas emissions from combustion of natural gas.
    Province/Territory: Alberta
    Funding amount: $1,375,000
    Funding stream: Challenge 2023

    Recipient: Taurus Canada Renewable Natural Gas Corp.
    Project title: Small-Scale Carbon Capture and Storage from Feedlot Manure Anaerobic Digestion
    Project description: This project involves the design and construction of a small-scale, remote carbon capture system connected to a 100% feedlot manure-based anerobic digestion facility on a feedlot site owned by the Kasko Cattle Co. This project aims to reduce greenhouse gas emissions and contribute to investment and job creation in rural Alberta.
    Province/Territory: Alberta
    Funding amount: $3,405,000
    Funding stream: Challenge 2023

    Recipient: Denendeh Manor GP Ltd.
    Project title: Denendeh Manor Energy Efficiency Retrofit Project
    Project description: The project aims to improve energy efficiency and low carbon heating at Denendeh Manor, a four-storey, Indigenous-owned apartment building in Yellowknife, Northwest Territories. The upgrades will include a wood pellet biomass heating system, energy-efficient windows and doors, fire-smart siding, enhanced insulation, air sealing, better ventilation, LED lighting, and a rooftop solar hot water preheat array with a sewage heat recovery system. The goal is to increase the energy efficiency of the building and eliminate oil-fired heating, while also reducing greenhouse gas emissions, lowering utility costs, and creating jobs.
    Province/Territory: Northwest Territories
    Funding amount: $2,330,000
    Funding stream: Indigenous Leadership Fund

    Recipient: Inuvialuit Regional Corporation
    Project title: ISR Renewable Energy Cabin Retrofit
    Project description: The ISR Renewable Energy Cabin Retrofit project is to be delivered by the Inuvialuit Regional Corporation. The project aims to supply ground-mounted solar installation kits to Inuvialuit-owned cabins in the Inuvialuit Settlement Region (ISR), located in the Northwest Territories. To improve the accessibility, usability, and longevity of the solar photovoltaic (PV) systems, the project would support solar panel installation and maintenance workshops in six Inuvialuit Settlement Region communities. The project would also include a call for project proposals for Inuvialuit Settlement Region communities with the intention of providing funding to one or more selected projects that would support greenhouse gas emission reductions, generate clean growth, and build capacity in the Inuvialuit Settlement Region communities. The primary object of the project is to increase accessibility to clean energy sources for Inuvialuit in the Inuvialuit Settlement Region.
    Province: Northwest Territories
    Funding amount/Territory: $4,650,000
    Funding stream: Indigenous Leadership Fund

    MIL OSI Canada News –

  • MIL-OSI Canada: The Government of Canada funds projects in Alberta and the Northwest Territories to build a strong, sustainable economy

    Source: Government of Canada News

    The Government of Canada announced five projects receiving funding under the Low Carbon Economy Fund.

    The Low Carbon Economy Fund is an important part of Canada’s clean growth and climate action plans. It invests in projects that reduce greenhouse gas emissions, generate clean growth, build resilient communities, and create jobs for Canadians.

    The Low Carbon Economy Fund consists of four funding streams: the Leadership Fund, the Challenge Fund, the Indigenous Leadership Fund, and the Implementation Readiness Fund. Three of the projects announced are being funded by the Challenge Fund, which aims to help organizations adopt proven, low-carbon technologies to cut greenhouse gas emissions. The other two projects are being funded under the Indigenous Leadership Fund, which supports Indigenous-owned and Indigenous-led renewable energy, energy efficiency, and low-carbon heating projects across Canada.

    List of projects

    Recipient: Sherritt International Corporation
    Project title: Boiler Economizer
    Project description: Sherritt operates a production facility in Fort Saskatchewan, Alberta, which refines nickel and cobalt and produces ammonia and ammonium sulphate fertilizer. Sherritt currently uses two natural gas-fired steam boilers to provide steam for process use and heating throughout the facility. This project adds economizers to both boilers to preheat the boiler feedwater using waste heat from the boiler stack exhaust. The boiler economizers will increase boiler efficiency, reduce natural gas use, and reduce greenhouse gas emissions from combustion of natural gas.
    Province/Territory: Alberta
    Funding amount: $1,600,000
    Funding stream: Challenge 2023

    Recipient: Cavendish Farms Corporation
    Project title: Line 1 Fryer Heat Recovery – Lethbridge
    Project description: This project will recover heat energy from fryer exhaust and deposit it in various facility processes requiring heat. By using recovered heat energy, this project will reduce greenhouse gas emissions from combustion of natural gas.
    Province/Territory: Alberta
    Funding amount: $1,375,000
    Funding stream: Challenge 2023

    Recipient: Taurus Canada Renewable Natural Gas Corp.
    Project title: Small-Scale Carbon Capture and Storage from Feedlot Manure Anaerobic Digestion
    Project description: This project involves the design and construction of a small-scale, remote carbon capture system connected to a 100% feedlot manure-based anerobic digestion facility on a feedlot site owned by the Kasko Cattle Co. This project aims to reduce greenhouse gas emissions and contribute to investment and job creation in rural Alberta.
    Province/Territory: Alberta
    Funding amount: $3,405,000
    Funding stream: Challenge 2023

    Recipient: Denendeh Manor GP Ltd.
    Project title: Denendeh Manor Energy Efficiency Retrofit Project
    Project description: The project aims to improve energy efficiency and low carbon heating at Denendeh Manor, a four-storey, Indigenous-owned apartment building in Yellowknife, Northwest Territories. The upgrades will include a wood pellet biomass heating system, energy-efficient windows and doors, fire-smart siding, enhanced insulation, air sealing, better ventilation, LED lighting, and a rooftop solar hot water preheat array with a sewage heat recovery system. The goal is to increase the energy efficiency of the building and eliminate oil-fired heating, while also reducing greenhouse gas emissions, lowering utility costs, and creating jobs.
    Province/Territory: Northwest Territories
    Funding amount: $2,330,000
    Funding stream: Indigenous Leadership Fund

    Recipient: Inuvialuit Regional Corporation
    Project title: ISR Renewable Energy Cabin Retrofit
    Project description: The ISR Renewable Energy Cabin Retrofit project is to be delivered by the Inuvialuit Regional Corporation. The project aims to supply ground-mounted solar installation kits to Inuvialuit-owned cabins in the Inuvialuit Settlement Region (ISR), located in the Northwest Territories. To improve the accessibility, usability, and longevity of the solar photovoltaic (PV) systems, the project would support solar panel installation and maintenance workshops in six Inuvialuit Settlement Region communities. The project would also include a call for project proposals for Inuvialuit Settlement Region communities with the intention of providing funding to one or more selected projects that would support greenhouse gas emission reductions, generate clean growth, and build capacity in the Inuvialuit Settlement Region communities. The primary object of the project is to increase accessibility to clean energy sources for Inuvialuit in the Inuvialuit Settlement Region.
    Province: Northwest Territories
    Funding amount/Territory: $4,650,000
    Funding stream: Indigenous Leadership Fund

    MIL OSI Canada News –

  • MIL-OSI Security: Brothers Sentenced for Violent Assault and Firearm Confrontation on Navajo Nation

    Source: US FBI

    ALBUQUERQUE – Two brothers from Fruitland, New Mexico were sentenced for their roles in a violent assault and subsequent confrontation with law enforcement on the Navajo Nation.

    There is no parole in the federal system.

    According to court records, on March 23, 2024, Justin Tso, 38, and his brother Walliford Tso, 37, enrolled members of the Navajo Nation, went to the residence of John Doe, where Doe lived with his girlfriend and her son. As the brothers were departing the home, Justin took a machete without permission and walked away. John Doe armed himself with an axe and demanded the return of the machete. In response, Justin and Walliford charged at John Doe, leading to a violent altercation.

    The brothers pursued John Doe back into the residence, where they assaulted him in front of his family, punching him and throwing objects, including a tire rim, pipe, and large rock. John Doe was able to escape and call police. During the incident, the brothers caused significant property damage, including smashing car windows and damaging vehicles.

    Navajo Nation Police responded to the scene. During the attempt to apprehend the suspects, Walliford pointed a rifle at officers before surrendering. Walliford and Justin were both found to be intoxicated at the time of the incident.

    Walliford and Justin each pled guilty to one count of assault with a dangerous weapon and were sentenced to 24 months in prison followed by two years of supervised release.

    U.S. Attorney Ryan Ellison and Philip Russell, Acting Special Agent in Charge of the Federal Bureau of Investigation’s Albuquerque Field Office, made the announcement today.

    The Farmington Resident Agency of the Federal Bureau of Investigation’s Albuquerque Field Office investigated this case with assistance from the Navajo Police Department and Navajo Department of Criminal Investigations. Assistant United States Attorney Meg Tomlinson is prosecuting the case.

    MIL Security OSI –

  • MIL-OSI Canada: Task Team Focuses on Community Recovery

    Source: Government of Canada regional news

    Released on July 2, 2025

    The Saskatchewan Public Safety Agency’s (SPSA) Recovery Task Team is working with communities and their residents impacted by the challenging start to the 2025 wildfire season, supporting communities as they begin to rebuild.

    Steps for Individuals Impacted by Wildfires

    Impacted residents of lost or damaged property due to wildfires may be eligible for support and assistance during the recovery process:

    1. Insurable Losses
    Residents are encouraged to reach out to their private insurance to determine what coverage and additional support is available.   

    2. Long-term Displacement Assistance
    Residents that are displaced beyond 30 days may be eligible for assistance through Provincial Disaster Assistance Program (PDAP). Once a community has been established as an eligible community, long-term displaced residents can reach out to their home community for an application form. Find more information here: Provincial Disaster Assistance Program | SPSA.

    About the Recovery Task Team

    The Recovery Task Team has been formed to identify areas of need to ensure communities devastated by wildfires are provided assistance and post-disaster supports in the rebuilding process.

    The team includes representatives from the SPSA and other provincial ministries, including representatives from the ministries of Environment, Social Services, Government Relations and others as needed. This team will focus on the most severely impacted communities and those whose permanent residences were lost due to wildfire. 

    The current focus of the Recovery Task Team is working with communities to support debris management, living accommodations and mental health supports. The team will continue to share what resources are available to community leadership and work together to determine what gaps can be filled.  

    Additional recovery supports will be announced in the coming days.

    -30-

    For more information, contact:

    MIL OSI Canada News –

  • MIL-OSI: Mercury Selected to Improve U.S. Defense Supply Chain Resilience for Priority Domestic Microelectronics Technology

    Source: GlobeNewswire (MIL-OSI)

    ANDOVER, Mass., July 02, 2025 (GLOBE NEWSWIRE) — Mercury Systems, Inc. (NASDAQ: MRCY, www.mrcy.com), a technology company that delivers mission-critical processing to the edge, today announced it has been selected by the U.S. Department of Defense (DoD) for funding through its Industrial Base Analysis and Sustainment (IBAS) Program to develop a next-generation RF signal conditioning multi-chip package (MCP). The IBAS Program aims to improve the readiness and competitiveness of the defense industrial base through investments in high-priority domestic technologies and supply chains.

    Under a two-year, $8.5 million contract with commercial partner Systems Innovation Engineering, Mercury will develop and demonstrate a new solution designed to enhance the performance and cost of X-band Active Electronically Steered Array (AESA) radars used in air, sea, and ground-based applications. This ultra-compact signal conditioning package will leverage Mercury expertise and innovation in microwave and mixed signal technologies to reduce the size, weight, and power requirements of these integrated assemblies by more than 80% compared to existing hardware. By leveraging state-of-the-art processes, this capability will be more producible, affordability will be improved, and high-volume missions will be enabled.

    “This award demonstrates DoD’s confidence in Mercury’s ability to rapidly develop innovative RF solutions that utilize a broad set of our in-house capabilities, spanning engineering design, advanced packaging, and high-volume manufacturing production,” said Ken Hermanny, Mercury’s Senior Vice President of Signal Technologies. “We’re building a first-of-its-kind signal conditioning module optimized for performance and scalable to meet future demands for a wide range of radar programs and customers.”

    “This effort exemplifies the power of our processing platform to bring together silicon-to-system innovation from across Mercury,” said Tony Trinh, Senior Director of Advanced Packaging within Mercury’s recently formed Advanced Concepts Group. “By drawing on capabilities from across our enterprise to build an integrated yet configurable, high-performance solution, we are accelerating technology insertion and supporting our customer’s mission with trusted, leading-edge technology.”

    “This capability will play a pivotal role in advancing RF sensor performance and readiness to counter the evolving threat landscape we will face in the years ahead,” said John Schofield, who supports the IBAS Program as a Chief Scientist assigned to the U.S. Naval Surface Warfare Center’s Crane Division. “It supports the warfighter by enabling faster, more reliable threat detection, delivered through trusted, U.S.-sourced innovation.”

    Mercury Systems – Innovation that matters®
    Mercury Systems is a technology company that delivers mission-critical processing to the edge, making advanced technologies profoundly more accessible for today’s most challenging aerospace and defense missions. The Mercury Processing Platform allows customers to tap into innovative capabilities from silicon to system scale, turning data into decisions on timelines that matter. Mercury’s products and solutions are deployed in more than 300 programs and across 35 countries, enabling a broad range of applications in mission computing, sensor processing, command and control, and communications. Mercury is headquartered in Andover, Massachusetts, and has more than 20 locations worldwide. To learn more, visit mrcy.com. (Nasdaq: MRCY)

    Forward-Looking Safe Harbor Statement
    This press release contains certain forward-looking statements, as that term is defined in the Private Securities Litigation Reform Act of 1995, including those relating to the Company’s focus on enhanced execution of the Company’s strategic plan. You can identify these statements by the words “may,” “will,” “could,” “should,” “would,” “plans,” “expects,” “anticipates,” “continue,” “estimate,” “project,” “intend,” “likely,” “forecast,” “probable,” “potential,” and similar expressions. These forward-looking statements involve risks and uncertainties that could cause actual results to differ materially from those projected or anticipated. Such risks and uncertainties include, but are not limited to, continued funding of defense programs, the timing and amounts of such funding, general economic and business conditions, including unforeseen weakness in the Company’s markets, effects of any U.S. federal government shutdown or extended continuing resolution, effects of geopolitical unrest and regional conflicts, competition, changes in technology and methods of marketing, delays in or cost increases related to completing development, engineering and manufacturing programs, changes in customer order patterns, changes in product mix, continued success in technological advances and delivering technological innovations, changes in, or in the U.S. government’s interpretation of, federal export control or procurement rules and regulations, including tariffs, changes in, or in the interpretation or enforcement of, environmental rules and regulations, market acceptance of the Company’s products, shortages in or delays in receiving components, supply chain delays or volatility for critical components, production delays or unanticipated expenses including due to quality issues or manufacturing execution issues, adherence to required manufacturing standards, capacity underutilization, increases in scrap or inventory write-offs, failure to achieve or maintain manufacturing quality certifications, such as AS9100, the impact of supply chain disruption, inflation and labor shortages, among other things, on program execution and the resulting effect on customer satisfaction, inability to fully realize the expected benefits from acquisitions, restructurings, and operational efficiency initiatives or delays in realizing such benefits, challenges in integrating acquired businesses and achieving anticipated synergies, effects of shareholder activism, increases in interest rates, changes to industrial security and cyber-security regulations and requirements and impacts from any cyber or insider threat events, changes in tax rates or tax regulations, such as the deductibility of internal research and development, changes to interest rate swaps or other cash flow hedging arrangements, changes to generally accepted accounting principles, difficulties in retaining key employees and customers, litigation, including the dispute arising with the former CEO over his resignation, unanticipated costs under fixed-price service and system integration engagements, and various other factors beyond our control. These risks and uncertainties also include such additional risk factors as are discussed in the Company’s filings with the U.S. Securities and Exchange Commission, including its Annual Report on Form 10-K for the fiscal year ended June 28, 2024 and subsequent Quarterly Reports on Form 10-Q and Current Reports on Form 8-K. The Company cautions readers not to place undue reliance upon any such forward-looking statements, which speak only as of the date made. The Company undertakes no obligation to update any forward-looking statement to reflect events or circumstances after the date on which such statement is made.

    INVESTOR CONTACT
    Tyler Hojo
    Vice President, Investor Relations
    Tyler.Hojo@mrcy.com

    MEDIA CONTACT
    Turner Brinton
    Senior Director, Corporate Communications
    Turner.Brinton@mrcy.com

    The MIL Network –

  • MIL-OSI: Mercury Selected to Improve U.S. Defense Supply Chain Resilience for Priority Domestic Microelectronics Technology

    Source: GlobeNewswire (MIL-OSI)

    ANDOVER, Mass., July 02, 2025 (GLOBE NEWSWIRE) — Mercury Systems, Inc. (NASDAQ: MRCY, www.mrcy.com), a technology company that delivers mission-critical processing to the edge, today announced it has been selected by the U.S. Department of Defense (DoD) for funding through its Industrial Base Analysis and Sustainment (IBAS) Program to develop a next-generation RF signal conditioning multi-chip package (MCP). The IBAS Program aims to improve the readiness and competitiveness of the defense industrial base through investments in high-priority domestic technologies and supply chains.

    Under a two-year, $8.5 million contract with commercial partner Systems Innovation Engineering, Mercury will develop and demonstrate a new solution designed to enhance the performance and cost of X-band Active Electronically Steered Array (AESA) radars used in air, sea, and ground-based applications. This ultra-compact signal conditioning package will leverage Mercury expertise and innovation in microwave and mixed signal technologies to reduce the size, weight, and power requirements of these integrated assemblies by more than 80% compared to existing hardware. By leveraging state-of-the-art processes, this capability will be more producible, affordability will be improved, and high-volume missions will be enabled.

    “This award demonstrates DoD’s confidence in Mercury’s ability to rapidly develop innovative RF solutions that utilize a broad set of our in-house capabilities, spanning engineering design, advanced packaging, and high-volume manufacturing production,” said Ken Hermanny, Mercury’s Senior Vice President of Signal Technologies. “We’re building a first-of-its-kind signal conditioning module optimized for performance and scalable to meet future demands for a wide range of radar programs and customers.”

    “This effort exemplifies the power of our processing platform to bring together silicon-to-system innovation from across Mercury,” said Tony Trinh, Senior Director of Advanced Packaging within Mercury’s recently formed Advanced Concepts Group. “By drawing on capabilities from across our enterprise to build an integrated yet configurable, high-performance solution, we are accelerating technology insertion and supporting our customer’s mission with trusted, leading-edge technology.”

    “This capability will play a pivotal role in advancing RF sensor performance and readiness to counter the evolving threat landscape we will face in the years ahead,” said John Schofield, who supports the IBAS Program as a Chief Scientist assigned to the U.S. Naval Surface Warfare Center’s Crane Division. “It supports the warfighter by enabling faster, more reliable threat detection, delivered through trusted, U.S.-sourced innovation.”

    Mercury Systems – Innovation that matters®
    Mercury Systems is a technology company that delivers mission-critical processing to the edge, making advanced technologies profoundly more accessible for today’s most challenging aerospace and defense missions. The Mercury Processing Platform allows customers to tap into innovative capabilities from silicon to system scale, turning data into decisions on timelines that matter. Mercury’s products and solutions are deployed in more than 300 programs and across 35 countries, enabling a broad range of applications in mission computing, sensor processing, command and control, and communications. Mercury is headquartered in Andover, Massachusetts, and has more than 20 locations worldwide. To learn more, visit mrcy.com. (Nasdaq: MRCY)

    Forward-Looking Safe Harbor Statement
    This press release contains certain forward-looking statements, as that term is defined in the Private Securities Litigation Reform Act of 1995, including those relating to the Company’s focus on enhanced execution of the Company’s strategic plan. You can identify these statements by the words “may,” “will,” “could,” “should,” “would,” “plans,” “expects,” “anticipates,” “continue,” “estimate,” “project,” “intend,” “likely,” “forecast,” “probable,” “potential,” and similar expressions. These forward-looking statements involve risks and uncertainties that could cause actual results to differ materially from those projected or anticipated. Such risks and uncertainties include, but are not limited to, continued funding of defense programs, the timing and amounts of such funding, general economic and business conditions, including unforeseen weakness in the Company’s markets, effects of any U.S. federal government shutdown or extended continuing resolution, effects of geopolitical unrest and regional conflicts, competition, changes in technology and methods of marketing, delays in or cost increases related to completing development, engineering and manufacturing programs, changes in customer order patterns, changes in product mix, continued success in technological advances and delivering technological innovations, changes in, or in the U.S. government’s interpretation of, federal export control or procurement rules and regulations, including tariffs, changes in, or in the interpretation or enforcement of, environmental rules and regulations, market acceptance of the Company’s products, shortages in or delays in receiving components, supply chain delays or volatility for critical components, production delays or unanticipated expenses including due to quality issues or manufacturing execution issues, adherence to required manufacturing standards, capacity underutilization, increases in scrap or inventory write-offs, failure to achieve or maintain manufacturing quality certifications, such as AS9100, the impact of supply chain disruption, inflation and labor shortages, among other things, on program execution and the resulting effect on customer satisfaction, inability to fully realize the expected benefits from acquisitions, restructurings, and operational efficiency initiatives or delays in realizing such benefits, challenges in integrating acquired businesses and achieving anticipated synergies, effects of shareholder activism, increases in interest rates, changes to industrial security and cyber-security regulations and requirements and impacts from any cyber or insider threat events, changes in tax rates or tax regulations, such as the deductibility of internal research and development, changes to interest rate swaps or other cash flow hedging arrangements, changes to generally accepted accounting principles, difficulties in retaining key employees and customers, litigation, including the dispute arising with the former CEO over his resignation, unanticipated costs under fixed-price service and system integration engagements, and various other factors beyond our control. These risks and uncertainties also include such additional risk factors as are discussed in the Company’s filings with the U.S. Securities and Exchange Commission, including its Annual Report on Form 10-K for the fiscal year ended June 28, 2024 and subsequent Quarterly Reports on Form 10-Q and Current Reports on Form 8-K. The Company cautions readers not to place undue reliance upon any such forward-looking statements, which speak only as of the date made. The Company undertakes no obligation to update any forward-looking statement to reflect events or circumstances after the date on which such statement is made.

    INVESTOR CONTACT
    Tyler Hojo
    Vice President, Investor Relations
    Tyler.Hojo@mrcy.com

    MEDIA CONTACT
    Turner Brinton
    Senior Director, Corporate Communications
    Turner.Brinton@mrcy.com

    The MIL Network –

  • MIL-Evening Report: Australia’s superannuation regulator is worried about your fund’s spending. Should you be?

    Source: The Conversation (Au and NZ) – By Mark Melatos, Associate Professor of Economics, University of Sydney

    GettyImages skynesher/Getty

    Australia’s superannuation regulator has written to Australian superannuation funds raising concerns their spending might not be benefiting members.

    The Australian Prudential Regulation Authority is not just concerned with the type of expenses, but with the corporate governance around their approval, evaluation and reporting.

    The letter refers to a “lack of robust governance and oversight of fund expenditure” and funds making “decisions not supported by an expenditure management framework”.

    Concern about funds’ spending and governance has grown since construction industry super fund, CBUS, last year admitted it spent A$387,000 of members’ retirement savings on a 40th birthday bash attended by 750 guests.

    At the same time the fund was being criticised for its links with the Construction, Forestry, Maritime Employees Union as three of its board members were members. The union was alleged to have been infiltrated by criminal elements.

    Protecting members

    Since July 1 2021, legislation requires regulated superannuation funds – industry and retail funds, but not self-managed funds – to act in the best financial interests of their members. This is referred to as their “best financial interest duty”.

    In the superannuation industry, what economists call the principal-agent problem – in this case, ensuring super fund trustees (agents) protect the financial interests of members (principals) whose retirement savings they manage – is particularly acute.

    Compared to public company shareholders, for example, super fund members have little opportunity to monitor and challenge management decisions. This includes spending decisions that affect their super balance. There is no annual general meeting at which members can vote or question their fund’s trustees.

    Fund members also cannot rely to the same extent as shareholders on the market to optimise the performance of management. The threat of takeover and replacement of executives tends to be lower than for publicly listed companies. Apart from switching funds, the regulator’s oversight and enforcement are the main protection for members against trustee maladministration or malfeasance.

    There is also a significant public interest in ensuring each super fund meets its financial duty obligations. The squandering of a member’s retirement savings increases the likelihood they will need to rely on the public pension, a cost for all taxpayers.

    Can super fund expenses be justified?

    It has been reported that spending under the regulator’s microscope includes “sports sponsorships, travel, conferences and other payments to affiliated unions or employer groups”.

    Whether or not such expenses are compatible with members’ best financial interests is often difficult to judge. That is why funds are being asked to report and justify expenses more transparently.

    For example, a fund’s spending on marketing and travel might be consistent with best financial interest duty if there is scope associated with increased membership and funds under management.

    There are significant fixed administration and regulatory costs associated with running a super fund.

    Core customer service functions, such as processing death benefit claims, require sensitive (and expensive) handling.

    Spreading such costs over more members likely helps reduce fees charged to members and can encourage investment in improved customer service.

    Large super funds are increasingly investing in alternative assets such as private equity and taking direct stakes in bespoke projects (such as airport ownership and apartment construction). While such investments can enhance returns, they usually require access to significant financial firepower.

    Bigger may not always be better

    In short, if size matters, and if, for example, sports sponsorship allows super funds to grow cost-effectively, then marketing and travel expenses may be compatible with best financial interest requirements. That might even include an executive’s travel to the AFL Grand Final to network with potential co-investors.

    Neverthless, there may also be disadvantages associated with increased fund size. Larger funds are likely to find it harder to outperform the market and their peers, at least when investing in listed equities. So spending to grow membership may not always be in members’ interests.

    Whether super fund payments to affiliated unions or employer groups are justifiable is complicated by legislative requirements. While a fund cannot give benefits to an employer or union, it can give benefits to a firm’s employees or a union’s members. This might include preferential death benefits or financial literacy seminars.

    Questionable expenses

    Some fund expenses might reflect the pursuit of “private benefits” by super fund executives or trustees. They might, for example, approve questionable investments that burnish their CVs for their next corporate gig. Or they might approve sponsorship of a football team so they can network with potential future employers or business partners at a game.

    More innocently, but no less perniciously, the executive remuneration consultants super funds hire may define key performance indicators that are inappropriate for super fund executives (for example, membership growth at all costs).

    What can the regulator do?

    The superannuation regulator has broad powers to license and supervise superannuation funds to ensure they “keep the financial promises” made to their members.

    Ultimately, a fund’s trustees are responsible for ensuring the fund is meeting its financial interests obligations.

    One tool at the regulator’s disposal is to seek a court enforceable undertaking from an offending fund. This is a legal promise to address governance and legislative breaches. Failure to deliver can jeopardise a fund’s licence to operate.

    Ultimately, the legal burden of proof in any civil legal action to show they have met their best financial interests responsibilities, now lies with the trustees.

    Now the Prudential Regulation Authority has put super funds on notice to lift their game.

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

    – ref. Australia’s superannuation regulator is worried about your fund’s spending. Should you be? – https://theconversation.com/australias-superannuation-regulator-is-worried-about-your-funds-spending-should-you-be-259881

    MIL OSI Analysis – EveningReport.nz –

  • MIL-OSI USA: Chairman Aguilar: The GOP’s One Big Ugly Bill is fundamentally un-American

    Source: US House of Representatives – Democratic Caucus

    The following text contains opinion that is not, or not necessarily, that of MIL-OSI – July 02, 2025

    WASHINGTON, D.C. — Today, House Democratic Caucus Chair Pete Aguilar joined Democratic Leader Hakeem Jeffries, Democratic Whip Katherine Clark, Budget Committee Ranking Member Brendan Boyle, Agriculture Committee Ranking Member Angie Craig, Ways and Means Committee Ranking Member Richard Neal, Energy and Commerce Committee Ranking Member Frank Pallone and House Democrats for a press conference on Trump’s One Big Ugly Bill. 

    CHAIRMAN AGUILAR: Donald Trump promised the American people that he would cut costs on day one. Republicans in Congress swore up and down that their policies would fight inflation and make life easier for everyday Americans. More lies. But we’ve all seen under this President, and this Republican majority, the prices continue to rise and the American Dream slipping further from reach. 

    Today marks the culmination of Donald Trump’s betrayal of working people across this country. Because of this bill, your health care is going to go up. Your electric bill is going to be more expensive. The clothes and groceries that you buy are already rising due to his reckless tariffs. The only people who make out in this bill are people who can already afford to pay a little bit more at the checkout line. But that’s not the reality for most people in this country. This bill isn’t for the American people—it’s a reward to the mega-rich campaign donors that bankroll Republican campaigns. 

    Why would Gabe Evans in Colorado vote for this bill? 29,000 people will lose access to health care in his district. 30,000 households will lose access to food nutrition programs, and almost 1,000 energy jobs will be lost. No one asked 17 million people to lose their health insurance. No one asked for hospitals to close or nursing homes to be shuttered because billionaires want more tax breaks. Where I’m from, that’s not big or beautiful. That’s small and ugly. No one asked for food assistance to be taken away from children to give handouts to the same corporations gouging the American people. 

    House Democrats believe that this bill is fundamentally un-American. We are going to fight to make sure billionaires and wealthy corporations pay their fair share, so that we can build an economy that works for everyone. We are going to fight to make America less expensive. And we’re going to fight to give working class people more breathing room and opportunities to get ahead.

    I want to thank my House colleagues for standing with us in this time, against this bill. I want to thank the community members who have joined us as well. And members of the faith-based community as well.

    We’re not here in a partisan exercise. We’re here because the American people don’t deserve this suffering. Now we did take a little bit of liberty when we said, “Hell no.” We didn’t ask them, members of the clergy, but we stand in unison against this dangerous bill. And today, however long it takes, we will continue to vote against this bill. We will do it together, and we will do it with the American people in mind. Thank you so much. 

    Video of the full press conference can be viewed here.

    ###

    MIL OSI USA News –

  • MIL-OSI USA: Governor Newsom marks historic expansion of California’s Film and Television Tax Credit Program, announces 16 new projects to film in the Golden State

    Source: US State of California Governor

    Jul 2, 2025

    What you need to know: Governor Newsom is more than doubling the state’s Film and Television Tax Credit Program, and adding 16 new television projects that will generate $1.1 billion in new economic activity.

    BURBANK – Today, Governor Gavin Newsom joined labor representatives, entertainment leaders and state officials to mark the official expansion of California’s Film and Television Tax Credit Program—solidifying the Golden State’s status as the global epicenter of film and television production. The move more than doubles the program’s annual funding—from $330 million to $750 million—and introduces key updates to keep production, below-the-line jobs, and investments rooted in California.

    The Governor is also awarding 16 new television shows through the program which, taken together, are collectively anticipated to bring in $1.1 billion in total spending and nearly 6,700 cast and crew jobs across the Golden State.

    California is where filmed entertainment was born, and with this expansion, we’re making sure it stays here. We’re not just investing in productions and soundstages—we’re investing in middle-class careers, small businesses, and the communities that power this iconic industry.

    Governor Gavin Newsom

    Doubling down on California’s creative economy

    Since 2009, the tax credit has generated over $27 billion in economic activity and supported more than 209,000 well-paying jobs with health and pension benefits by awarding nearly  850 projects. In years past, for every dollar of tax credit awarded, California has seen massive returns – $24.40 in economic output, $16.14 in GDP and $8.60 in wages.

    The expanded program – now one of the largest capped film incentives in the nation – maintains California’s competitive edge in the creative economy while continuing to prioritize workforce diversity provisions, more funding for the Career Pathways Training Program, and the nation’s first Safety on Production Pilot Program.

    “This expansion is about California’s long game—supporting a dynamic industry that fuels our creative economy and reflects who we are,” said Dee Dee Myers, Senior Advisor to the Governor & Director of GO-Biz. “By doubling down on this commitment, we’re ensuring California remains the premier place to work, create, and tell stories that reach across the world.”

    Why this expansion matters

    Critically, this historic investment in the entertainment industry is projected to increase the number of film jobs supported by the program by approximately fifty percent.

    This program has been oversubscribed year after year, with more productions applying than can be accommodated under the current cap. And in recent years, projects that were unable to secure California’s tax credits and were forced to move to other locations contributed to significant economic losses for California, with an estimated 69% of rejected projects subsequently filming out-of-state.

    Through the expansion of this program, local economies will now be able to keep these creative jobs and livelihoods here in California, all while investing in the future of the industry.

    “This expansion is a powerful investment in California’s future, strengthening the state’s position as the global leader in content creation, fueling job growth and supporting thousands of small businesses that rely on a thriving production industry,” said Colleen Bell, Director of the California Film Commission. “This program isn’t just about keeping cameras rolling — it’s about sustaining careers, building opportunity and ensuring that the economic and cultural benefits of filmmaking stay right here in the Golden State.”

    16 new projects to film in California

    These new projects, which have been approved across the program’s last three television application windows, include nine renewals, two pilots, four new shows and one relocating show.

    Altogether, these 16 projects are expected to hire 6,664 cast and crew members, as well as 59,000 background performers (measured in days worked), across 1,308 total California filming days. Highlights from the projects include:

    • Nine returning TV series, including HBO Max’s “The Pitt,” Hulu’s hit “Paradise,” and CBS’s “NCIS: Origins”

    • Two shows that will film outside of the Los Angeles area for a total of 23 filming days

    • One relocating series – Prime Video’s “Mr. & Mrs. Smith”

    “We are thrilled that we are going to be able to continue shooting our second season of Paradise in Los Angeles, thanks in no small part to California’s film and TV tax credit,” said “Paradise” Creator/Executive Producer/Showrunner Dan Fogelman and Star/Executive Sterling K. Brown. “We’ve been lucky enough to shoot in Los Angeles for the majority of our careers – it is home to the best crews in the world and allowing series to shoot (and remain) in L.A. provides consistent work for countless craftspeople, allowing us all to remain in town with our families and loved ones.”

    See the full list of productions that are part of the Film and Television Tax Credit Program here.

    What comes next

    While last week’s state budget bill delivered the $750 million expansion, the Governor is expected to soon sign additional legislation to modernize and further improve the program.

    In the meantime, these tax credits have become refundable for all projects for the first time since the program’s inception in 2009, beginning with Program 4.0 which officially commenced yesterday, July 1.

    The California Film Commission will integrate the expanded funding and refundable credit mechanism into its immediately upcoming application cycles, which are scheduled for July 7–9, 2025 (television) and August 25–27, 2025 (film). Updated guidelines and resources will be provided by the Film Commission in the coming days. 

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  • MIL-OSI USA: Tennessee Man Sentenced to Life in Prison for Conspiring to Murder Law Enforcement and Attack FBI Office

    Source: US State of California

    Edward Kelley, 36, of Maryville, Tennessee, was sentenced to life in prison today in the Eastern District of Tennessee at Knoxville.

    On Nov. 20, 2024, following a three-day jury trial, Kelley was convicted of conspiracy to murder federal employees; solicitation to commit a crime of violence; and influencing a federal official by threat.

    According to court documents and evidence presented at trial, Kelley developed a plan to murder law enforcement, including agents, officers, and employees of the FBI, Tennessee Bureau of Investigation, Tennessee Highway Patrol, Maryville Police Department, Blount County Sheriff’s Office, and Clinton Police Department. The evidence showed that Kelley developed a “kill list” of law enforcement and distributed the list – along with videos containing images of his targets – to a co-conspirator as part of his “mission.”

    A cooperating defendant, who previously pleaded guilty for his role in the conspiracy, testified that he and Kelley planned attacks on the Knoxville FBI office using car bombs and incendiary devices appended to drones. He also testified that the conspirators strategized about assassinating FBI employees in their homes and in public places such as movie theaters.

    At trial, the United States introduced recordings of the defendant calling for the development of a “course of action” related to his plan. In one such recording, the defendant gave the instructions to, among other things, “start it,” “attack,” and “take out their office” in the event of his arrest. Kelley was recorded stating, “You don’t have time to train or coordinate, but every hit has to hurt,” and “Every hit has to hurt.”

    Assistant Attorney General John A. Eisenberg of the Justice Department’s National Security Division, U.S. Attorney Francis M. Hamilton III for the Eastern District of Tennessee, and Special Agent in Charge Joe Carrico of the FBI Nashville Field Office made the announcement.

    The FBI’s Knoxville Joint Terrorism Task Force, which is comprised of federal, state, and local law enforcement agencies, investigated the case.

    Assistant U.S. Attorneys Casey T. Arrowood and Kyle J. Wilson for the Eastern District of Tennessee and Trial Attorneys Tanya Senanayake and Jacob Warren of the National Security Division’s Counterterrorism Section prosecuted the case.

    MIL OSI USA News –

  • MIL-OSI Security: Tennessee Man Sentenced to Life in Prison for Conspiring to Murder Law Enforcement and Attack FBI Office

    Source: United States Attorneys General

    Edward Kelley, 36, of Maryville, Tennessee, was sentenced to life in prison today in the Eastern District of Tennessee at Knoxville.

    On Nov. 20, 2024, following a three-day jury trial, Kelley was convicted of conspiracy to murder federal employees; solicitation to commit a crime of violence; and influencing a federal official by threat.

    According to court documents and evidence presented at trial, Kelley developed a plan to murder law enforcement, including agents, officers, and employees of the FBI, Tennessee Bureau of Investigation, Tennessee Highway Patrol, Maryville Police Department, Blount County Sheriff’s Office, and Clinton Police Department. The evidence showed that Kelley developed a “kill list” of law enforcement and distributed the list – along with videos containing images of his targets – to a co-conspirator as part of his “mission.”

    A cooperating defendant, who previously pleaded guilty for his role in the conspiracy, testified that he and Kelley planned attacks on the Knoxville FBI office using car bombs and incendiary devices appended to drones. He also testified that the conspirators strategized about assassinating FBI employees in their homes and in public places such as movie theaters.

    At trial, the United States introduced recordings of the defendant calling for the development of a “course of action” related to his plan. In one such recording, the defendant gave the instructions to, among other things, “start it,” “attack,” and “take out their office” in the event of his arrest. Kelley was recorded stating, “You don’t have time to train or coordinate, but every hit has to hurt,” and “Every hit has to hurt.”

    Assistant Attorney General John A. Eisenberg of the Justice Department’s National Security Division, U.S. Attorney Francis M. Hamilton III for the Eastern District of Tennessee, and Special Agent in Charge Joe Carrico of the FBI Nashville Field Office made the announcement.

    The FBI’s Knoxville Joint Terrorism Task Force, which is comprised of federal, state, and local law enforcement agencies, investigated the case.

    Assistant U.S. Attorneys Casey T. Arrowood and Kyle J. Wilson for the Eastern District of Tennessee and Trial Attorneys Tanya Senanayake and Jacob Warren of the National Security Division’s Counterterrorism Section prosecuted the case.

    MIL Security OSI –

  • MIL-OSI Security: Hertford County Man Sentenced to Over Seven Years After Armed Robbery in Winton

    Source: US FBI

    WILMINGTON, N.C. – Trevon Montez Freeman, of Hertford County, was sentenced today to 90 months in prison for interference with commerce by robbery and brandishing a firearm during the robbery.  Freeman, 21, pled guilty to the charges on February 11, 2025.

    “Commercial armed robbery not only endangers the lives of victims and bystanders but tears at the fabric of our communities,” said Acting U.S. Attorney Daniel P. Bubar. “This result reflects our commitment to holding violent offenders accountable and providing some justice to the victim in this case.”

    According to court documents and other information presented in court, on November 26, 2023, just before 10 p.m., Hertford County Sheriff’s Deputies responded to a report of an armed robbery at the Winton Deli on S. Main Street in Winton.  The clerk, who was shaking and in tears, explained that she and her nephew had been closing the store when a black male ran into the store and aimed a tan handgun at them.  The robber, who was wearing a black ski mask, Air Force 1 shoes, and a black hoodie, ordered the clerk to the register at gunpoint.  He took bills and change, later determined to be $257, from the register and left the store.  Deputies attempted a K-9 track, which led to a parking lot where fresh tire marks indicate a car had sped away.

    “The professionalism, dedication, and commitment shown by our team reflect our ongoing mission to protect the citizens and businesses of Hertford County,” said Hertford County Sheriff Dexter Hayes. “We remain steadfast in our pledge that anyone who chooses to commit a crime in our county will be held accountable. We will not tolerate those who threaten the safety of our community.”

    Surveillance video confirmed that the robber brandished a tan handgun with a light attached under the barrel.  He could be heard speaking on the video, and a deputy recognized the voice as belonging to the defendant Trevon Freeman.  Deputies began to patrol around Freeman’s house and just after midnight made a traffic stop on Freeman’s car for a speeding violation.  Freeman was wearing a black jacket and Air Force 1 shoes, and a black ski mask sat beside him in the passenger seat.  Deputies found a roll of bills and hundreds of coins in pocket, totaling nearly $200.

    Daniel P. Bubar, Acting U.S. Attorney for the Eastern District of North Carolina made the announcement after sentencing by Chief U.S. District Judge Richard E. Myers II.  The Hertford County Sheriff’s Office and Federal Bureau of Investigation investigated this case.  Assistant U.S. Attorneys Jake D. Pugh and Phil Aubart prosecuted.

    Related court documents and information can be found on the website of the U.S. District Court for the Eastern District of North Carolina or on PACER by searching for Case No. 2:24-cr-0018-M.

    MIL Security OSI –

  • MIL-OSI Security: Dozens of Violent Offenders Arrested in Operation Mongolian Beef

    Source: US FBI

    Twenty-eight members of the Mongols motorcycle gang were taken into custody today in a joint operation between the FBI Jacksonville Division, Volusia Sheriff’s Office, and the Seventh Judicial Circuit State Attorney’s Office. In addition, arrest warrants have been issued for three additional Mongols gang members and their arrests are pending.

    The following individuals have been charged with aggravated rioting related to the gas station shooting that occurred in New Smyrna Beach during Bike Week on March 8, 2025:

    • Tyler Maxamillian Araya
    • Max Martin Bastuardo
    • Gary Robert Bedsaul (arrest still pending)
    • John Paul Bertrand
    • Christopher Allen Boyd
    • Peri John Butler
    • Pablo Jorge Cardoza Baptista
    • Jarrad Bryce Cawley
    • Francis G. Gomez
    • Daniel Hernandez
    • Sean Jeffery Hoholik
    • Trevor Frank Kopp (arrest still pending)
    • Kevin Koul
    • Matthew David Limperatos
    • Daniel William Macumber
    • Robert Brandon Maness
    • Shawn Anthony Marshall
    • Steve Patino-Rangel
    • Justin Ballard Perry
    • Chadwick Lee Price
    • Michael Angel Rodriguez
    • Mario Silvestri (arrest still pending)
    • Spencer Ryan Skipworth
    • Timothy Adam Stephens
    • Joseph Harry James Summerhill
    • Anthony Christopher Trimboli
    • Jacob Rolando Velez
    • Clinton Neal Walker (previously arrested and charged related to this shooting)
    • Douglas Ray White
    • Kash Williams
    • Gaige Alexander Wilson

    Aggravated rioting (Florida Statute 870.01 3) is when a person participates in a riot of 25 or more other people. It is a second-degree felony and punishable by up to 15 years in prison.

    The FBI and partners also executed 14 search warrants, including at the Mongols Clubhouse in Edgewater, Florida; four homes in Volusia County; three homes in Brevard County; two homes in Miami-Dade County; one home in Chesterfield County, Virginia; one home in Palm Beach County; and two homes in Polk County.

    “The FBI has made a commitment to all Americans that we will crush violent crime across the country. I’m proud to share that the FBI is delivering our commitment to you here in Florida. Operation Mongolian Beef is just one example of how the FBI brings our full force of investigative capabilities to assist our law enforcement partners and protect our communities. There is no doubt Volusia County and, in fact, the entire state of Florida is safer today with these violent offenders off the street,” said FBI Jacksonville Special Agent in Charge Jason Carley.

    This joint operation was carried out by the Volusia County Sheriff’s Office, FBI Jacksonville, FBI Tampa, FBI Miami, FBI Richmond, FBI Newark, FBI Columbia, and FBI Charlotte, with assistance from the State Attorney’s Office for the Seventh Judicial Circuit, U.S. Attorney’s Office for the Middle District of Florida, Homeland Security Investigations, U.S Marshals, FBI Safe Streets Task Force, the sheriff’s offices of Brevard, Broward, Collier, Escambia, Hillsborough, Miami-Dade, Orange, Osceola, Palm Beach, Polk, and the police departments of Boca Raton, DeLand, Lakeland, New Smyrna Beach, Palm Bay, Orange City, Orlando, Rockledge, and Titusville.

    MIL Security OSI –

  • MIL-OSI Europe: REPORT on product safety and regulatory compliance in e-commerce and non-EU imports – A10-0133/2025

    Source: European Parliament

    MOTION FOR A EUROPEAN PARLIAMENT RESOLUTION

    on product safety and regulatory compliance in e-commerce and non-EU imports

    (2025/2037(INI))

    The European Parliament,

    – having regard to the report of 31 March 2022 by the Wise Persons Group on the Reform of the EU Customs Union entitled ‘Putting More Union in the European Customs: Ten proposals to make the EU Customs Union fit for a Geopolitical Europe’,

    – having regard to its position of 13 March 2024 on the proposal for a regulation of the European Parliament and of the Council establishing the Union Customs Code and the European Union Customs Authority, and repealing Regulation (EU) No 952/2013[1],

    – having regard to the Commission communication of 5 February 2025 entitled ‘A comprehensive EU toolbox for safe and sustainable e-commerce’ (COM(2025(0037),

    – having regard to Regulation (EU) 2024/3015 of the European Parliament and of the Council of 27 November 2024 on prohibiting products made with forced labour on the Union market and amending Directive (EU) 2019/1937[2],

    – having regard to Directive (EU) 2024/1760 of the European Parliament and of the Council of 13 June 2024 on corporate sustainability due diligence and amending Directive (EU) 2019/1937 and Regulation (EU) 2023/2859[3],

    – having regard to the report of April 2024 by Enrico Letta entitled ‘Much more than a market: Speed, Security, Solidarity – Empowering the Single Market to deliver a sustainable future and prosperity for all EU Citizens’[4],

    – having regard to Rule 55 of its Rules of Procedure,

    – having regard to the opinion of the Committee on International Trade,

    – having regard to the report of the Committee on the Internal Market and Consumer Protection (A10-0133/2025),

    A. whereas e-commerce has transformed how consumers purchase and engage with businesses worldwide, unlocking unprecedented opportunities; whereas e-commerce presents significant challenges to the EU’s competitiveness and raises concerns over consumer rights and health and safety, particularly as certain product categories raise urgent concerns regarding their impact on vulnerable consumer groups; whereas it has an environmental impact, particularly through increased waste generation and carbon emissions resulting from transportation and logistics; whereas e-commerce has an impact on retailers’ attractiveness and therefore contributes to the hollowing out of city centres; whereas e-commerce also has social implications, particularly concerning working conditions in the warehousing and delivery sector;

    B. whereas over 75 % of EU consumers shop online; whereas the continued growth of e-commerce enhances consumer access, quality and price competition; whereas e-commerce lowers market entry barriers for small and medium-sized enterprises (SMEs) and entrepreneurs, fosters digital inclusion, supports underserved communities, and contributes to innovation, productivity and economic growth across the single market;

    C. whereas, with the surge in e-commerce imports, mainly coming from China, non-compliant sellers evading regulatory costs and undermining law-abiding businesses through means such as counterfeiting, have intensified unfair competition; whereas there is an urgent need to re-establish a level playing field for all businesses, especially SMEs; whereas it is crucial to ensure that enforcement efforts are adequately funded and equipped at both national and EU level, while avoiding excessive delegation of enforcement responsibilities to private actors;

    D. whereas European companies, namely SMEs, must comply with strict regulations and compete on an unlevel playing field with non-EU e-commerce platforms that avoid these obligations; whereas European companies dedicate material and human resources to ensure regulatory compliance, assuming significant administrative and financial burdens;

    E. whereas certain non-EU companies fail to comply with European data protection regulations, which guarantee a high level of privacy for consumers, by engaging in consumer profiling practices using personal data; whereas enhanced enforcement and cooperation is required to ensure consistent privacy protections for all consumers;

    F. whereas Commission President Ursula von der Leyen, in her 2024-2029 political guidelines, referred to the need to tackle challenges with online platforms to ensure that consumers and businesses alike benefit from a level playing field based on effective customs, tax and safety controls and sustainability standards, and tasked several Executive Vice-Presidents and Commissioners with fulfilling that mission;

    G. whereas the process of adapting the EU acquis to the online environment began several years ago, and numerous laws on products, consumer protection and product safety now include provisions to ensure robust safeguards in the digital landscape; whereas, notwithstanding these efforts, critical shortcomings persist in empowering authorities to hold the full supply chain accountable and ensure consumer protection, which need to be urgently addressed;

    H. whereas the Digital Services Act[5] (DSA), the General Product Safety Regulation[6] (GPSR), the Market Surveillance Regulation[7] (MSR) and the Consumer Protection Cooperation Regulation (CPC)[8] contribute to a safer and fair e-commerce environment, if well implemented and enforced; whereas, despite these laws, consumer and other organisations, as well as national authorities, have raised concerns over the large number of unsafe products detected in the EU that fail to comply with EU legislation on product safety and environmental and chemical standards; whereas better funding of and coordination among Member States’ enforcement authorities are essential to address these risks effectively;

    I. whereas e-commerce may significantly impact consumers by providing them with unparalleled convenience, access to diverse products and competitive pricing; whereas e-commerce also exposes consumers to risks such as unsafe products, a lack of transparency and manipulative practices that exploit their vulnerabilities;

    J. whereas the protection of consumers is essential to the functioning of the EU’s internal market, as it ensures trust and fairness in commercial practices, thereby enabling sustainable economic growth and innovation; whereas addressing these concerns is important in promoting transparency, fairness and the responsible development of digital services and e-commerce;

    K. whereas people from more disadvantaged socio-economic backgrounds, including low-income families and children, are more exposed to the risks posed by unsafe products due to their lower prices, aggressive marketing and widespread distribution;

    L. whereas concerns over the suitability of customs procedures under the current Union Customs Code[9] for e-commerce were a significant driver of the Commission’s customs reform package, including the legislative proposals on the revision of the Union Customs Code and establishing an EU Customs Authority (UCC reform), and the removal of the EUR 150 exemption threshold (de minimis) for the payment of customs duties and VAT on imported products;

    M. whereas customs authorities are in need of substantial investments, particularly to ensure a sufficient number of properly trained staff to guarantee the functioning of EU customs systems, which are facing an exponential increase in demand for customs checks; whereas without the necessary investments in staff, digital solutions cannot achieve benefits in terms of efficiency and harmonisation;

    N. whereas advanced screening technologies, such as artificial intelligence and blockchain, could significantly enhance the capacity of customs and market surveillance authorities to flag high-risk shipments and automate compliance checks at scale; whereas investment in such technologies remains fragmented and uneven across Member States; whereas increased EU-level funding, coordination and efforts to ensure interoperability are essential to accelerate their deployment and improve the overall efficiency and effectiveness of enforcement mechanisms;

    O. whereas digital tools, such as artificial intelligence and the internet of things, can help track non-compliant products, but must respect consumer privacy and must not lead to the general monitoring of users;

    P. whereas the Commission communication of 5 February 2025 on a comprehensive EU toolbox for safe and sustainable e-commerce, highlights that the volume of e-commerce goods bought by EU consumers on non-EU online platforms is expected to continue growing rapidly, benefiting from the current customs duty exemption for low-value consignments (up to EUR 150);

    The surge in non-compliant goods in e-commerce

    1. Highlights the increasingly high number of purchases being made by EU consumers on non-EU online platforms in business-to-consumer environments and in emerging manufacturer-to-consumer and direct-to-consumer environments; emphasises, as described in the Letta report on the future of the single market[10], that the circulation of harmful products in the single market is escalating and that EU consumers are wasting EUR 19.3 billion per year buying dangerous products that can lead to injuries and that are detrimental to our economies;

    2. Notes that 4.6 billion e-commerce items under the EUR 150 exemption threshold were imported into the EU in 2024, 91 % of which originated from China, amounting to up to 12 million small e-commerce items per day and amounting to almost twice the number recorded in 2023 (2.4 billion) and more than triple the number in 2022 (1.4 billion); notes that this surge has exacerbated compliance challenges, especially in product safety, and that market surveillance authorities and independent investigations have reported alarming non-compliance rates;

    3. Stresses that most unsafe and illegal products are shipped to the EU in large volumes of individual, and often small, parcels sold to EU consumers via online platforms from non-EU countries, in particular China; stresses that such products are difficult to control, in particular for customs authorities at the entry points, which are mostly located at major ports and logistical airports for e-commerce; emphasises that this makes it almost impossible to stop such products from entering the EU and makes it increasingly difficult for market surveillance authorities to detect and remove such products from the internal market and for consumer authorities to do so once the products reach EU consumers;

    4. Stresses that the rapid growth of e-commerce has significant environmental implications due to issues such as a rise in packaging waste, the larger carbon footprint from low-quality and short life cycle products and their shipment, and problems with waste management and non-recyclable materials; underlines, in this respect, the need to ensure compliance with environmental legislation and to encourage sustainable ways of consuming;

    5. Stresses that some non-EU online marketplaces are facing allegations regarding the use of forced labour; underlines, in this respect, that Regulation (EU) 2024/3015 prohibits products made with forced labour from entering the EU market, and that it must be effectively enforced after its application, including for online sales;

    6. Notes that, on 1 December 2025, Regulation No 2023/2411[11] on the protection of geographical indications for craft and industrial products will come into force; notes that, if not accompanied by adequate promotion and protection, especially with respect to the markets of non-EU countries, geographical indications risk remaining ineffective; calls, therefore, on the Commission, together with the customs authorities of the Member States, to strengthen checks aimed at intercepting products that violate the rules on geographical indications;

    7. Is concerned that the prevailing business model of certain major non-EU online platforms is based on the rapid, large-scale production and distribution of fast fashion and ultra-fast fashion products, prioritising speed and low cost over sustainability, safety and quality; regrets that many such products do not comply with EU legislation, yet non-compliant sellers frequently evade meaningful enforcement or sanctions; stresses that such practices constitute a form of social and environmental dumping, resulting in a persistent and unfair competitive advantage for these non-EU platforms, exerting disproportionate pressure on European undertakings, in particular SMEs and micro-enterprises; emphasises that this hampers the development of the EU’s textile and clothing sector;

    E-commerce crossroads: navigating compliance challenges

    8. Recognises that the EU has established a robust compliance framework, which also applies to products sold online, but that greater efforts are still needed for the full enforcement of the compliance framework; underlines, in this respect, the importance of the DSA, the DMA, the MSR, the GPSR, consumer protection rules and various product and environmental laws; emphasises that market surveillance authorities face challenges in applying these frameworks to online platforms as evidenced by the Commission’s recently published evaluation report on the implementation of Article 4 of Regulation (EU) 2019/1020 and, in particular, in cases where large quantities of a product are sold in small consignments; considers that the thorough implementation of the DSA and other regulatory acquis is necessary to combat unsafe, non-compliant and counterfeit products;

    9. Stresses the need to implement the existing compliance framework and evaluate these measures when considering new legislation, including new obligations for online marketplaces;

    10. Notes that conducting physical tests is particularly impractical for small parcels sent directly to the final consumer and that customs authorities will therefore continue to rely primarily on checking the documentation, rather than inspecting the products themselves;

    11. Highlights the significant enforcement gaps caused by the limited resources and insufficient level of digitalisation of customs and market surveillance authorities, the lack of human resources and harmonised and interoperable technological tools across Member States, and the insufficient data sharing and overall lack of cooperation and coordination between customs authorities, platforms and market surveillance entities; acknowledges that physical inspections are unavoidably and inherently limited given the volume of e-commerce parcels entering the EU;

    12. Considers that mystery shopping exercises by market surveillance authorities, as put forward in the Commission communication on e-commerce, are an important tool to verify compliance for products sold through online platforms; stresses, however, that if sellers are based outside the EU or are not traceable and if fake addresses are used for responsible persons, there is no liable legal entity and it is impossible for market surveillance authorities to take enforcement actions;

    13. Considers that EU manufacturers and retailers, particularly SMEs, face unfair competition due to non-EU platforms enabling non-EU manufacturers and their non-compliant products to easily enter the EU market, bypassing applicable regulations and standards; highlights that, while EU manufacturers must comply with strict safety, environmental and quality rules, many low-value products sold through these platforms evade customs and market surveillance checks due to the way they are shipped to the EU; raises concerns that some of these platforms and non-EU traders deliberately exploit this loophole, allowing non-compliant imports to enter the EU single market unchecked, putting European manufacturers, wholesalers and retailers at a disadvantage, weakening their competitiveness and hindering their ability to innovate, which could lead to the closure of many micro-enterprises and small enterprises;

    14. Stresses that EU manufacturers are de facto subject to significantly stricter market surveillance compared to non-EU manufactures that reach EU consumers via e-commerce platforms; deeply regrets the loss of market share and jobs caused by the influx of cheaper products that do not comply with European standards, particularly on safety and quality, as well as other illegal products, shipped from non-EU countries, directly affecting EU SMEs and the strength of EU companies and their capacity to invest and maintain profitability;

    15. Highlights the difference between online platforms acting as intermediaries and those acting as importers; notes, in particular, that the EU e-commerce platforms that act as importers face compliance costs that increase their retail prices up to 40 %, which has an impact on final consumers; underlines that EU-based importers face stricter obligations and higher costs, while intermediary platforms allow non-EU sellers to ship directly to EU consumers without ensuring compliance;

    16. Recognises that e-commerce platforms are subject to various obligations under the DSA and the GPSR and may be held liable under the Product Liability Directive[12] (PLD) in specific circumstances; recalls, in this respect, that online platforms are liable if they do not respect their specific obligations as intermediaries; believes, however, that consumer redress must be ensured in all cases; underlines, in this respect, that where the manufacturer is established outside the EU and no importer, authorised representative, or fulfilment service provider can be identified, online marketplaces should provide adequate and proportionate remedies to consumers where they fail to comply with the DSA, particularly with Articles 30 and 31 or with Article 22 of the GPSR;

    17. Emphasises that online marketplaces are requested to trace their traders (‘know your business customer’) under the DSA, which should discourage traders from selling unsafe or counterfeit goods, and are obliged to comply with the ‘compliance by design’ rules to increase overall traceability; highlights the lack of accountability of online platforms in case of untraceable sellers or sellers based outside the jurisdiction of the EU; notes the considerable level of non-compliance with the ‘know your business customer’ principle and the rise in new selling practices via social media platforms, where this obligation is not effectively applied, allowing non-EU sellers to offer non-compliant goods to EU users directly; stresses, therefore, the need for online platforms to make best efforts to ensure full traceability of sellers and products, preventing listings from appearing without verified product compliance details;

    18. Highlights the fact that the information of a responsible economic operator in the EU under the GPSR, acting on behalf of a non-EU trader or platform, is often wrong or missing; notes that even when this information is available, the responsible person in the EU may not be accountable, particularly when the responsible person is an authorised representative; is concerned that market surveillance authorities report significant difficulties in contacting these non-EU traders and enforcing EU law, and that even when contact is established, enforcing penalties against them is often unfeasible;

    19. Considers that creating a database of the responsible persons in the EU to enable real-time cross-checking for verification, along with establishing an accreditation procedure for them, could enhance transparency and reinforce accountability throughout the e-commerce import supply chain;

    20. Supports research and enforcement actions by consumer organisations and the opening of investigations initiated by consumer authorities in the EU, as part of the CPC network, as well as under the DSA, against non-EU online platforms for potential violations of EU product safety and consumer laws; expresses concern over the slow progress of these investigations and calls for their swift conclusion; underlines the need for enforcement to be a deterrent that includes adequate sanctions to ensure compliance; underlines, in this respect, that particular attention is necessary at national and EU level to address recurrent non-compliance that may have been identified in previous controls of similar products, including via the application of interim measures; stresses that the enforcement and effectiveness of commitments received from online platforms should be closely monitored;

    21. Urges the Commission and CPC authorities to initiate a structured enforcement dialogue with consumer representatives, traders and other stakeholders to identify systemic infringements requiring stronger enforcement;

    22. Notes the complexity for EU authorities to enforce EU laws when the economic operators are established outside the EU; highlights the need for enhanced international cooperation agreements, particularly with major e-commerce exporters;

    Strong enforcement policies to combat non-compliant e-commerce products

    Urgent need for short-term measures

    23. Urges the Member States to increase funding and resources for market surveillance, customs, consumer protection and digital services authorities so that they can better address the challenges posed by unsafe and illicit products; asks the Commission to support stronger cooperation, information sharing and data exchange between competent authorities, including market surveillance and customs authorities, and stresses that cooperation across different sectors should be improved; urges the Member States to ensure effective coordination among different market surveillance authorities in their territories, and to strengthen the powers of the single liaison offices; highlights that the Member States and the EU have the responsibility to ensure that market surveillance and customs authorities are properly resourced, trained and equipped to have the capacity to fulfil their mission, including proper investigative powers;

    24. Calls on market surveillance authorities to invest more resources in joint or coordinated activities with other Member States or relevant authorities and, in particular, to increase the number and the frequency of coordinated enforcement actions such as sweeps, mystery-shopping exercises and peer-reviews; urges relevant authorities to actively participate in these activities and the Commission to make full use of its coordination powers;

    25. Welcomes the Commission’s intention to coordinate the control of customs and market surveillance authorities under priority control areas focused on products from non-EU countries that pose significant safety hazards and a risk of non-compliance; emphasises that this initiative should generate valuable risk profile data, which could be used in further enforcement activities and penalties to non-compliant actors; calls on the Commission to strengthen cooperation within the EU Product Compliance Network and to increase EU funding for customs cooperation under the customs programme and for market surveillance operations under the single market programme; stresses that the lack of adequate resources has hindered the effective deployment of tools, such as the widespread use of mystery shopping activities by market surveillance authorities or the use of trusted flaggers under the DSA; points out to the Commission that, in addition to existing testing facilities for toys and radio equipment, more testing facilities for e-commerce goods are urgently needed, such as for batteries, textiles, cosmetics, electrical appliances and other products; asks the Member States to deploy sufficient resources to guarantee an increased capacity of testing facilities and to increase investments in equipment for the detection of unsafe and illegal goods;

    26. Emphasises that for data and security reasons, Member States should restrict high-risk vendors from operating in their critical infrastructure and border security systems, including for the procurement of security screening and cargo scanning equipment used at airports and ports;

    27. Highlights the fact that, under the GPSR, online marketplaces are obliged to establish a single point of contact, register with the Safety Gate Portal and indicate the information concerning their single contact point on the portal; asks the Commission to effectively enforce this and other obligations of online marketplaces and to support the Member States’ market surveillance authorities in implementing the GPSR and the MSR; notes that the GPSR introduced direct data exchanges between enforcement authorities and e-commerce platforms; believes, however, that in order for the system to work effectively, a direct link with customs authorities should be provided;

    28. Notes that the current system is more reactive than preventive, as authorities intervene only after dangerous products have already been sold to consumers, rather than preventing their distribution; recalls that, under the GPSR, online marketplace providers are encouraged to check products against the Safety Gate Portal before listing them on their interfaces; underlines that random sampling testing can only be efficient if it is conducted regularly;

    29. Emphasises that the swift implementation of the Digital Product Passport (DPP) for several critical products sold online is essential to strengthen the enforcement of existing legislation; urges the Commission to present the necessary secondary legislation on the DPP as soon as possible, in particular for textiles, toys, cosmetics, electronics and other products with high non-compliance rates and associated risks; calls on the Commission to continuously assess the requirements, technical design and operation of the DPP under the Ecodesign for Sustainable Products Regulation[13] (ESPR) as a priority; calls on the Commission to support businesses, in particular micro-enterprises and SMEs, in the implementation of the DPP;

    30. Proposes a mandatory DPP with early compliance verification for all products imported via e-commerce, including detailed quality and compliance data, to be integrated directly into the EU customs data hub, allowing authorities to pre-screen information on products before they are placed on the single market;

    31. Urges the Member States to make substantial efforts to increase customs controls and improve risk analysis, as the detection and removal of non-compliant goods can reduce the harm to EU consumers and protect the economic interests of EU businesses; underlines that the introduction in the customs risk analysis of a presumption of non-compliance for goods identical to those already found non-compliant could facilitate controls by customs authorities and improve cost efficiency; stresses the importance of reinforcing customs centres so they are better equipped to handle the large volume of small parcels that are difficult to control using traditional methods, including advanced screening technologies to identify suspicious packages at entry points; asks for more rigorous compliance checks, as well as random checks by the authorities on high-tonnage transport; urges the Member States, furthermore, to significantly increase the level of digitalisation of import procedures in customs authorities in order to implement existing legislation and accelerate customs procedures, especially in view of the high numbers of parcels;

    32. Underlines that businesses, particularly SMEs, urgently require clear guidelines from the Commission for the effective implementation of the GPSR, including clarification on its interplay with overlapping legislation, such as the DSA, the MSR, the PLD, and sector-specific laws on toys, cosmetics and detergents; calls on the Commission to issue these guidelines before the end of the first half of 2025 to facilitate businesses’ compliance; considers that the evaluation report on the interaction of the DSA with other legal acts, which is due on 17 November 2025, should take into account different legislation, in particular on product compliance, the obligations of online marketplaces, enforcement rules and possible future improvements on simplification and implementation; calls on the Commission to assess all possible further actions, including the evaluation of sectoral legislation, which is necessary to ensure legal predictability and that no legal loopholes or enforcement gaps are left when it comes to direct imports from non-EU countries via online marketplaces;

    33. Calls on the relevant national authorities to make full use of the existing and recently adopted enforcement toolbox, especially in relation to provisions on e-commerce set out in the MSR, GPSR and DSA, such as takedown orders, prohibition, restriction on the making available of a product on the market or its removal, recalls and sanctions as measures to counter the rise of illegal and non-compliant imports from non-EU countries;

    34. Underlines that regulatory enforcement measures taken against non-compliant actors should not put disproportionate burdens on compliant actors or cause unintentional harm to the second-hand market;

    35. Stresses the need to ensure the protection of intellectual property rights in the light of the increase in non-European counterfeit goods on e-commerce platforms; notes that these practices harm the competitiveness of European companies and pose risks to innovation and the incentives for research and development; calls for stronger measures against the sale of counterfeit goods online; urges the Commission to issue clear guidelines on trusted flaggers and stresses that rights holders should be recognised as eligible trusted flaggers when they meet the criteria outlined in Article 22 of the DSA;

    36. Points out that the Member States should make better use of the available sets of penalties and sanctions against economic operators, as well as other available tools including interim measures, in order to create a deterrent effect to dissuade economic operators from infringing upon the applicable legislation;

    37. Urges the Commission to take effective measures, including legislative measures where legal loopholes are clearly identified, without delay to ensure legal certainty and a level playing field for European companies, placing particular emphasis on SMEs;

    The need for regulatory reforms

    38. Calls for the removal of barriers to enforcing consumer rights, such as legal warranty claims and the right to return items; calls on the Commission to review the CPC Regulation without delay as this will be fundamental for a more effective cross-border enforcement of EU consumer law and the fight against unsafe products; asks the Commission, in this context, to provide for clear measures to further strengthen enforcement powers over non-EU traders and platforms and ensure better coordination of EU and national actions and the exchange of information among authorities, as well as with authorities in non-EU countries; highlights that the structure of the European Competition Network could be used as an example to follow for enforcement and information exchange in the case of suspected violations impacting multiple Member States, especially to combat non-compliant products effectively; stresses the importance of granting the Commission direct powers to investigate and sanction certain high impact breaches of consumer law, thus ensuring more effective, simultaneous and uniform enforcement and sanctions under EU consumer law;

    39. Notes that the CPC Regulation already empowers enforcement authorities to act against non-compliant traders and even gives the possibility for Member States to impose penalties and interim measures such as restricting access to the website; acknowledges, however, that the limitation is that this action must be taken on a country-by-country basis rather than at EU level, with each country applying its own penalties, making the consequences of violations uneven;

    40. Notes that enforcement in the Member States is fragmented, which leads to inefficiencies; calls for better coordination of enforcement and compliance oversight effective information exchange between Member States and for a more uniform application of the EU acquis; calls on the Commission to assess the MSR, particularly the need for an EU Market Surveillance Authority that would ensure consistency and provide operational support to the activities conducted by the relevant national market surveillance authorities and foster cooperation with the new EU Customs Authority (EUCA), as well as the implementation of Article 4 of the MSR, defining the responsible economic operators in the EU for product compliance; stresses that, to date, the designated responsible economic operator often lacks the capacity to provide redress or compensation to consumers, in particular when being an authorised representative;

    41. Supports the Commission’s ambition to swiftly advance the upcoming interinstitutional negotiations with Parliament and the Council on the UCC reform and the two proposals for Council acts on removing the exemption threshold on customs duties for goods valued under EUR 150; urges, therefore, the Member States to accelerate the negotiation procedure in the Council, recognising the urgency of the customs reform for EU competitiveness and the protection of EU consumers; underlines, however, that removing the threshold is a necessary step but not a stand-alone solution, as customs authorities will still only be able to inspect a limited percentage of parcels; stresses that immediate removal of the customs duty exemption is necessary for high-risk imports from product and consumer safety perspectives; emphasises the need for the customs reform to ensure coherence across regulatory frameworks, particularly avoiding duplication or conflicts with the DSA, and highlights the essential role customs authorities play in detecting non-compliant and unsafe products;

    42. Stresses that the UCC reform will provide the necessary tools for customs authorities to better supervise and control the goods entering the EU, help to strengthen the single market and customs union, improve the detection of unsafe and illicit products, and contribute to a level playing field among economic operators; welcomes, in this respect, the proposal under the UCC Regulation to establish the cooperation mechanism with market surveillance authorities that will improve the effectiveness of product controls; emphasises the importance of enhancing customs infrastructure and staffing to manage e-commerce effectively; highlights the need for simplified compliance processes tailored specifically to SMEs; calls on the Member States to introduce automated, forward-looking customs clearing systems, for instance by obliging platforms to enrol and clear customs automatically at the point of sales;

    43. Is concerned that some non-EU traders are circumventing EU customs checks by clearing goods by customs at the point of origin; stresses that those non-EU trading companies often prefer to pay penalties rather than open packages upon arrival at EU customs, aiming to unload shipments and depart immediately; is deeply concerned that customs authorities find that many packages are either undeclared or incorrectly declared and are sometimes fraudulently labelled; highlights that the UCC reform should also address these aspects;

    44. Takes note of the concern expressed by the ECC network regarding the drop-shipping business model, which raises challenges in consumer protection, product safety and regulatory compliance; regrets that consumers often face misleading practices, difficulties in returning products, and unexpected import duties, while a significant share of drop-shipped products fail to comply with EU safety standards; stresses that drop-shipping complicates enforcement due to untraceable businesses and cross-border complexities, while VAT and data protection compliance remain key concerns; notes that when combined with influencer marketing, drop-shipping may exacerbate transparency issues, reputational risks and inconsistent outcomes; calls on the Commission to assess how to address drop-shipping-related issues;

    45. Highlights the fact that the concept of a ‘deemed importer’ aims to ensure a level playing field for both EU and non-EU online platforms; notes that, in the context of an online sale from outside the EU, this measure would relieve customers of non-EU online platforms from being considered importers, as they are under the current UCC, while a non-EU platform or trader would instead be considered the ‘deemed importer’; believes that ‘deemed importer’ responsibilities should be clearly defined and consistent with the provisions of the DSA; emphasises that platforms being responsible for ensuring that VAT and customs duties are collected at the point of sale, rather than upon entry into the EU, will reduce fraud and tax evasion;

    46. Expresses concern about the optional nature of the Import One-Stop Shop (IOSS) scheme for all online operators, which deviates from the original objectives of the VAT in the digital age (ViDA) initiative; underlines the necessity of additional actions to strengthen the system’s robustness and curb potential misuse; urges the Commission to engage closely with stakeholders to establish safeguards for the IOSS against fraudulent practices; recommends that such safeguards be both comprehensive and streamlined to effectively deter fraud while avoiding excessive administrative burdens; stresses the necessity of extending the IOSS applicability to goods beyond the customs duty exemption threshold of EUR 150 to prevent undervaluation and ensure fair competition;

    47. Calls for the establishment of a new EUCA in 2026 to provide expert support to the Member States’ customs authorities; underlines that the EUCA should in its coordination role also map testing and control capabilities of customs and market surveillance authorities in and across the Member States and be mandated to execute unannounced inspections to detect possible unsafe or non-compliant products and issue sanctions in case of non-compliance; notes that the new EU customs data hub will allow for enhanced cooperation between the EUCA and customs and other authorities through data exchange and the interoperability of national IT systems, and thus facilitate coordinated controls and the detection of non-compliant products; considers that it is essential to fully integrate the functionalities of the Customs Single Window into the EU customs data hub; notes in the context of the proposed EUCA, the importance of regularly consulting representatives of various stakeholders to provide early warning to the EUCA;

    48. Stresses that, given the urgency, the entry into force of different obligations planned in the UCC revision should be accelerated, such as the establishment of the EU customs data hub; calls on the Commission to immediately start the preparatory work necessary for the establishment of the EU customs data hub, so as to speed up the preparation of its e-commerce functions in 2026;

    49. Urges the Commission to carry out an impact assessment regarding the idea of e-commerce items being shipped to the EU in bulk and, in turn, the establishment of warehouses in the EU by non-EU traders for such goods before they are put into parcels for delivery to customers; recognises that such shipments of e-commerce items in bulk and their storage in warehouses in the EU might increase the oversight of customs and market surveillance authorities and improve their controls and detection of non-compliant goods compared to single parcel shipments; calls on the Commission and the Member States to consider all possible options to incentivise such practices, including a simplified status for trust and check traders and cost-benefit assessments for incentive schemes; further notes that bulk shipping may not be feasible for all non-EU traders, particularly those operating consumer-to-consumer (C2C) or second-hand models; emphasises that this approach should strike a balance between the compliance advantages and the practical requirements of e-commerce operators, ensuring that it avoids creating logistical bottlenecks or placing an undue burden on varying business models;

    50. Acknowledges that the Commission has released a non-paper outlining the introduction of a non-discriminatory handling fee on e-commerce items, to be charged by customs authorities for goods sold in distance sales with the aim of covering the increased supervisory costs of custom authorities, namely the checking of the data, carrying out risk analysis, performing documentary and physical controls and specifically the financing of the EUCA and the data hub; insists that Member States should avoid unilateral fees to avoid a fragmentation of the customs union; underlines that the proposal suggests a flat EUR 2 rate per item delivered directly to the customer or a smaller 50 cent fee for Trust and Check Traders operating a business model of a customs warehouse for distance sales within the EU; calls on the Commission to conduct a proper evaluation of whether the proposed amount complies with World Trade Organization (WTO) rules, and whether it is sufficient and proportionate to reach the objectives; insists that this handling fee not be incurred by the consumer;

    51. Notes the enormous waste management and product destruction cost arising from the huge amount of non-compliant and unsafe products imported via non-EU country e-commerce; underlines that a large share of these products is non-recyclable, environmentally harmful or non-compliant with applicable chemicals legislation, further driving up environmental costs for public authorities; calls therefore on the Commission to evaluate the necessary measures to mitigate the environmental impact of non-EU countries’ e-commerce activities including the feasibility of a waste management fee on all products sold via non-EU countries’ online marketplaces to ensure that environmental costs are not supported by EU taxpayers;

    52. Stresses that inconsistent penalties and different enforcement strategies for non-compliance in different Member States lead to ‘border shopping’ or ‘customs shopping’; supports the minimum harmonisation of infringements and non-criminal sanctions for non-compliance across the Member States and through the EUCA as this would avoid creating weak entry points in the EU customs territory; stresses that this should entail a common framework for minimum harmonisation to close existing loopholes and thus tackle e-commerce challenges; underlines that Member States can impose additional sanctions tailored to national contexts;

    53. Notes that the Commission is scrutinising certain non-EU online marketplaces for employing manipulative practices, including dark patterns, addictive design features, deceptive influencer marketing, and the dissemination of fake or misleading online reviews; recognises that, according to the Digital Fairness Fitness Check report, unfair commercial practices cost consumers nearly EUR 8 billion annually, and that the use of unfair techniques to pressure consumers, especially vulnerable ones and children, into impulse purchases leads to overconsumption and overspending; calls on the Commission to address these issues in the upcoming Digital Fairness Act, unless they are already covered by existing legislation, with a view to effectively tackling unfair practices and closing existing legal loopholes, while staying consistent with existing legal frameworks and avoiding unnecessary regulatory burdens;

    54. Emphasises the need to ensure that any new initiatives proposed by the Commission in the area of customs enforcement or compliance do not result in additional administrative burdens for European businesses, particularly SMEs;

    55. Stresses the importance of the role of the European Public Prosecutor’s Office (EPPO) in the field of cross-border investigations of customs offences, which notably include fraud, for example the illicit undervaluing of the price of products in order to avoid paying the import taxes; emphasises that the large-scale circumvention of customs duties, including fraudulent e-commerce declarations and undervaluation, as well as the avoidance of controls and ‘forum shopping,’ must be effectively combated through criminal law investigations conducted by the EPPO, with the support of customs authorities; stresses that the EPPO’s robust legal framework for cross-border investigations should be leveraged to dismantle the criminal networks behind such operations;

    Additional enforcement actions

    56. Calls on the Commission and the national competent authorities to strongly enforce the DSA with regard to the responsibility of online marketplaces, in particular their obligations in terms of recommender systems, interface design, right to information, the compliance by design rules to increase the overall traceability, and their ‘know your business customer’ obligation; highlights that compliance with these obligations should dissuade non-compliant traders from offering their products in the EU through marketplaces or shopping services of social media falling in this category, and calls on the Commission to provide practical support in tracing traders that do not abide by EU rules; stresses the need for a DSA-based network of trusted flaggers for illegal products and e-commerce to ensure that platforms fulfil their obligations effectively;

    57. Stresses that the enhancement of cooperation and coordination with national competent authorities is crucial; asks for more cooperation among all relevant authorities, such as Member State authorities, customs authorities, and consumer protection authorities, and for stronger coordination among all established expert groups; stresses that, under the DSA, the investigative actions against non-compliant online marketplaces need to yield results and lead to deterrent sanctions in order to prevent the offer of non-compliant products; emphasises the importance of these investigations in addressing systemic risks, compliance failures, illegal content dissemination, addictive design features, dark patterns and the use of influencers for manipulative advertising;

    58. Calls on enforcement authorities to strengthen monitoring and enforcement actions targeting new sales channels; recommends that competent authorities be equipped with adequate resources, technological tools, and cross-border cooperation mechanisms to effectively identify and take action against non-compliant traders operating via social media and other emerging platforms;

    59. Suggests that online marketplace sellers must provide a reshipping address and contact point within the EU to allow consumers to easily return non-compliant goods without undue costs and to allow authorities to inspect goods; believes that online marketplaces should be responsible for checking this and should be held accountable for enforcement;

    60. Calls for an urgent in-depth evaluation of the effectiveness of the provision of the ‘responsible person for products placed on the Union market’, particularly those of non-EU traders, building on the results of the evaluation report on Article 4 of the MSR; calls on the Commission to consider among its future actions the introduction of a mandatory requirement for non-EU traders to appoint a responsible person in the EU with increased legal and financial liability;

    61. Notes that postal and other delivery services are undergoing significant transformations due to the rapid growth of e-commerce; raises concerns that the Universal Postal Union’s terminal dues system in practice does not apply to e-commerce flows; notes that, as a result, Chinese e-commerce businesses, due to shipment volumes, enter into commercial agreements directly with the EU postal operators for exceptionally attractive delivery rates that are lower than those for goods manufactured within the EU, leading to deeper fragmentation of the single market for postal services; urges the Commission to evaluate the impact of e-commerce on postal services and the internal market, and to consider how postal services can contribute to strengthening the single market and benefiting consumers, and to the overall competitiveness of the EU;

    62. Welcomes the approval of the ViDA reforms, which represent a significant step towards modernising VAT collection in the e-commerce sector; emphasises the importance of the Single VAT ID for online marketplaces and for European manufacturers, enabling them to compete on a level playing field by simplifying VAT compliance across the Member States; highlights that this measure can also facilitate in-bulk importation and the warehousing of goods within the EU, reducing reliance on fragmented cross-border shipments and ensuring that value-added services, such as fulfilment and logistics, take place within the single market; stresses that these reforms will enhance tax compliance, reduce administrative burdens, and improve enforcement while supporting fair competition and strengthening EU supply chains; calls on the Commission and the Member States to ensure the effective implementation of these measures to maximise their benefits for European businesses and consumers;

    63. Calls on the Commission to consider measures aimed at reducing the unnecessary regulatory and administrative compliance burden for EU manufacturers, in particular for SMEs, in order to level the playing field and enable them to better compete with global competitors operating under more efficient compliance standards;

    64. Calls on the Commission to enhance international cooperation with other like-minded countries to exchange best practices, identify common challenges and risks and develop joint actions on e-commerce;

    65. Welcomes, in this regard, the WTO Joint Statement Initiative on Electronic Commerce; notes that the agreement will benefit consumers and businesses by facilitating cross-border electronic transactions, reducing barriers to digital trade and promoting innovation in e-commerce; underlines, however, that the agreement is only a foundation and encourages the Commission to pursue ambitious trade agreements in negotiations with partners to ensure binding provisions on e-commerce;

    Increased use of IT tools

    66. Welcomes the fact that the Commission is preparing a project to streamline existing databases, including the Information and Communication System on Market Surveillance, the EU Safety Gate and the Customs Risk Management System, into a common interoperable system gathering all information on the safety of products, counterfeit product tracking and notifications of accidents and to ensure interoperability with the DPP and the future EU customs data hub; calls on the Commission to publish information regarding the implementation timeline and the resource requirements of this initiative;

    67. Supports the Commission’s aim to provide market surveillance authorities with the e-Surveillance WebCrawler tool to flag reappearing dangerous products; asks the Commission to make available another web crawler for detecting new listings as soon as possible, in order to flag non-compliant products before they reach consumers;

    68. Supports the responsible use of artificial intelligence, blockchain and the internet of things for scanning and analysing product listings on e-commerce platforms, automating customs and market surveillance inspections and risk identification and integrating product compliance databases for real-time checks between market surveillance and customs authorities, in line with EU and national laws; notes, however, that the high implementation costs of these technologies remain a barrier; underlines that the full uptake of these technologies will make handling more efficient, especially for low-value goods, and that the high volume of parcels containing many different items faces limited inspection capabilities;

    69. Demands that the Commission and the Member States exchange best practices and find incentives to provide the necessary funding and support for national authorities in order to increase the responsible use of technological solutions; suggests that artificial intelligence, blockchain and the internet of things could be used to scan and analyse product listings on e-commerce platforms, automate inspections and risk profiling, and integrate product compliance databases for real-time checks by several authorities;

    70. Underlines that Member States should reinforce customs checks in particular with low-value shipments by implementing risk-based assessment systems and digital tracking to prevent non-compliant products from bypassing customs controls; calls on the Member States to increase the level of automated processes, such as automated scans of labels when processing parcels at customs;

    71. Recognises that some online marketplaces also use a number of IT tools to detect and remove unsafe and illicit products that are found on their platforms; highlights, however, the fact that online marketplaces need to further invest in and increase their use of these IT tools to effectively avoid the offer and sale of unsafe and illicit products; calls on the Commission to further incentivise the use of IT tools by online marketplaces in this regard, while ensuring full compliance with Article 8 of the DSA, which provides that there is no general obligation to monitor the information that providers of intermediary services transmit or store;

    72. Suggests that, without prejudice to the principle enshrined in the DSA that providers of intermediary services online should not be subject to a monitoring obligation with respect to obligations of general nature, online intermediaries engaged in the sale, promotion or distribution of products within the EU market should consider on their own the use of risk-based digital monitoring systems to identify and prevent the presence of illegal content (presentation, description or offering for sale of illegal or dangerous products); stresses the importance of implementing swift response mechanisms to ensure the permanent removal of specific illegal content as soon as providers of intermediary services online have actual knowledge of such illegal content being presented on their interfaces, as well as the necessity for hosting service providers to take all necessary measures to prevent the reappearance of the same or equivalent illegal content on their platform;

    Improvement of consumer awareness and information

    73. Emphasises that EU consumers and European SMEs engaged in importing activities often lack sufficient information on the possible dangers of potentially unsafe products and the harm they can cause; stresses that consumers are increasingly targeted by traders who, despite their legal obligations, often do not inform consumers that their products are made and shipped from outside of the EU; acknowledges that there is demand among EU consumers for cheaper products, which are purchased on non-EU online marketplaces due to their much lower production costs and uncompetitive conditions for EU businesses and online platforms; stresses that online marketplaces may use manipulative design techniques (dark patterns) to influence purchasing decisions; warns against the risks associated with compulsive purchasing behaviours, financial difficulties and the accumulation of unnecessary goods; calls on the Commission and the Member States to organise information and awareness-raising campaigns on the purchase of unsafe products online and their possible health, privacy, environmental and competitiveness consequences, with a special focus on vulnerable consumers and at peak consumption times;

    74. Recommends fostering second-hand consumption as a sustainable approach to addressing EU consumers’ need for affordable goods; stresses the importance of promoting and incentivising the reuse of second-hand products as an important driver for unlocking the potential of the circular economy;

    75. Asks the Commission and the Member States to strictly enforce the ecodesign requirements for textiles and other products under the ESPR, as well as the provisions of the Directive on Empowering Consumers for the Green Transition[14] in order to make sure that consumers are better informed about sustainability aspects, such as environmental impacts, energy use, reparability and durability of products purchased on online marketplaces;

    76. Considers that consumer authorities, organisations, industry associations and chambers of commerce should be encouraged to conduct large, coordinated awareness-raising campaigns on consumer rights, potential risks, including the possibilities for collective redress, and redress mechanisms when purchasing online, in particular on non-EU online platforms; stresses the need to also raise awareness about the environmental, health and social impacts of unsustainable business practices and to alert consumers about the role of new advertising techniques, such as influencers and digital opinion leaders, in shaping perceptions of product safety and reliability; calls on the Commission to take a coordinating role as mentioned in the Commission communication of 5 February 2025 on e-commerce and to explore possibilities to finance cross-border information campaigns developed in cooperation with researchers, civil society and other relevant stakeholders;

    Trade and development considerations

    77. Calls on the Commission to implement its level of ambition in agreements with international partners at the multilateral level, as unsafe products constitute not only a European, but also a global challenge; reiterates that, as set out in Parliament’s position on the UCC revision, the EUCA should establish working arrangements with the authorities of non-EU countries and international organisations; stresses that such arrangements should enable the EUCA to exchange information, including best practices, with non-EU authorities and international organisations, and to carry out joint activities; supports continued engagement in the UN Trade and Development working group on consumer product safety, which plays a crucial role in developing best practices for cross-border enforcement;

    78. Calls on the Commission to step up cooperation with international partners, within forums such as the WTO, the World Customs Organization (WCO) and the G7, to counterbalance China’s influence and ensure reciprocity and rules-based trade; calls on the Commission to explicitly incorporate robust and enforceable obligations addressing forced labour when reviewing and renegotiating current trade and investment agreements; underscores the need for stronger EU-China cooperation mechanisms and transparent certification requirements to ensure compliance;

    79. Highlights the need to consider service and product safety and regulatory compliance provisions when negotiating future EU trade agreements; stresses the importance of specific regulatory dialogues and cooperation through administrative arrangements, improved customs enforcement cooperation, the traceability of shipments to the highest standards and enhanced data-sharing arrangements between customs authorities to effectively tackle non-compliant imports;

    80. Urges the Commission to be proactive and swiftly deploy targeted trade defence instruments, including anti-subsidy investigations, to address the adverse impacts on European businesses; emphasises that such actions must be coordinated closely with key international partners, to ensure effective global enforcement and reciprocal market fairness;

    81. Encourages the Commission to enhance diplomatic efforts and cooperation within international forums, particularly the WTO, the WCO and the G7, to counterbalance China’s strategic expansion into digital governance frameworks, including its Digital Silk Road initiative; stresses the need for open, more transparent and responsible digital trade rules in international standard-setting bodies to prevent internet fragmentation and mitigate the risks posed by restrictive digital governance models;

    82. Welcomes the WTO Joint Statement Initiative on Electronic Commerce as a vital step towards global digital trade rules; stresses, however, its current limitations, especially regarding customs transparency; urges the Commission to advocate stronger binding provisions to ensure its effective implementation and integration into the WTO legal framework, and to ensure enhanced global compliance standards;

    83. Emphasises the need for international capacity-building initiatives to support the sustainable and compliant participation of developing countries in digital trade; calls on the Commission to collaborate closely with international organisations, especially the WTO, to enhance regulatory frameworks and technical assistance for e-commerce in developing countries;

    °

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    84. Instructs its President to forward this resolution to the Council and the Commission.

    MIL OSI Europe News –

  • MIL-OSI Europe: REPORT on product safety and regulatory compliance in e-commerce and non-EU imports – A10-0133/2025

    Source: European Parliament

    MOTION FOR A EUROPEAN PARLIAMENT RESOLUTION

    on product safety and regulatory compliance in e-commerce and non-EU imports

    (2025/2037(INI))

    The European Parliament,

    – having regard to the report of 31 March 2022 by the Wise Persons Group on the Reform of the EU Customs Union entitled ‘Putting More Union in the European Customs: Ten proposals to make the EU Customs Union fit for a Geopolitical Europe’,

    – having regard to its position of 13 March 2024 on the proposal for a regulation of the European Parliament and of the Council establishing the Union Customs Code and the European Union Customs Authority, and repealing Regulation (EU) No 952/2013[1],

    – having regard to the Commission communication of 5 February 2025 entitled ‘A comprehensive EU toolbox for safe and sustainable e-commerce’ (COM(2025(0037),

    – having regard to Regulation (EU) 2024/3015 of the European Parliament and of the Council of 27 November 2024 on prohibiting products made with forced labour on the Union market and amending Directive (EU) 2019/1937[2],

    – having regard to Directive (EU) 2024/1760 of the European Parliament and of the Council of 13 June 2024 on corporate sustainability due diligence and amending Directive (EU) 2019/1937 and Regulation (EU) 2023/2859[3],

    – having regard to the report of April 2024 by Enrico Letta entitled ‘Much more than a market: Speed, Security, Solidarity – Empowering the Single Market to deliver a sustainable future and prosperity for all EU Citizens’[4],

    – having regard to Rule 55 of its Rules of Procedure,

    – having regard to the opinion of the Committee on International Trade,

    – having regard to the report of the Committee on the Internal Market and Consumer Protection (A10-0133/2025),

    A. whereas e-commerce has transformed how consumers purchase and engage with businesses worldwide, unlocking unprecedented opportunities; whereas e-commerce presents significant challenges to the EU’s competitiveness and raises concerns over consumer rights and health and safety, particularly as certain product categories raise urgent concerns regarding their impact on vulnerable consumer groups; whereas it has an environmental impact, particularly through increased waste generation and carbon emissions resulting from transportation and logistics; whereas e-commerce has an impact on retailers’ attractiveness and therefore contributes to the hollowing out of city centres; whereas e-commerce also has social implications, particularly concerning working conditions in the warehousing and delivery sector;

    B. whereas over 75 % of EU consumers shop online; whereas the continued growth of e-commerce enhances consumer access, quality and price competition; whereas e-commerce lowers market entry barriers for small and medium-sized enterprises (SMEs) and entrepreneurs, fosters digital inclusion, supports underserved communities, and contributes to innovation, productivity and economic growth across the single market;

    C. whereas, with the surge in e-commerce imports, mainly coming from China, non-compliant sellers evading regulatory costs and undermining law-abiding businesses through means such as counterfeiting, have intensified unfair competition; whereas there is an urgent need to re-establish a level playing field for all businesses, especially SMEs; whereas it is crucial to ensure that enforcement efforts are adequately funded and equipped at both national and EU level, while avoiding excessive delegation of enforcement responsibilities to private actors;

    D. whereas European companies, namely SMEs, must comply with strict regulations and compete on an unlevel playing field with non-EU e-commerce platforms that avoid these obligations; whereas European companies dedicate material and human resources to ensure regulatory compliance, assuming significant administrative and financial burdens;

    E. whereas certain non-EU companies fail to comply with European data protection regulations, which guarantee a high level of privacy for consumers, by engaging in consumer profiling practices using personal data; whereas enhanced enforcement and cooperation is required to ensure consistent privacy protections for all consumers;

    F. whereas Commission President Ursula von der Leyen, in her 2024-2029 political guidelines, referred to the need to tackle challenges with online platforms to ensure that consumers and businesses alike benefit from a level playing field based on effective customs, tax and safety controls and sustainability standards, and tasked several Executive Vice-Presidents and Commissioners with fulfilling that mission;

    G. whereas the process of adapting the EU acquis to the online environment began several years ago, and numerous laws on products, consumer protection and product safety now include provisions to ensure robust safeguards in the digital landscape; whereas, notwithstanding these efforts, critical shortcomings persist in empowering authorities to hold the full supply chain accountable and ensure consumer protection, which need to be urgently addressed;

    H. whereas the Digital Services Act[5] (DSA), the General Product Safety Regulation[6] (GPSR), the Market Surveillance Regulation[7] (MSR) and the Consumer Protection Cooperation Regulation (CPC)[8] contribute to a safer and fair e-commerce environment, if well implemented and enforced; whereas, despite these laws, consumer and other organisations, as well as national authorities, have raised concerns over the large number of unsafe products detected in the EU that fail to comply with EU legislation on product safety and environmental and chemical standards; whereas better funding of and coordination among Member States’ enforcement authorities are essential to address these risks effectively;

    I. whereas e-commerce may significantly impact consumers by providing them with unparalleled convenience, access to diverse products and competitive pricing; whereas e-commerce also exposes consumers to risks such as unsafe products, a lack of transparency and manipulative practices that exploit their vulnerabilities;

    J. whereas the protection of consumers is essential to the functioning of the EU’s internal market, as it ensures trust and fairness in commercial practices, thereby enabling sustainable economic growth and innovation; whereas addressing these concerns is important in promoting transparency, fairness and the responsible development of digital services and e-commerce;

    K. whereas people from more disadvantaged socio-economic backgrounds, including low-income families and children, are more exposed to the risks posed by unsafe products due to their lower prices, aggressive marketing and widespread distribution;

    L. whereas concerns over the suitability of customs procedures under the current Union Customs Code[9] for e-commerce were a significant driver of the Commission’s customs reform package, including the legislative proposals on the revision of the Union Customs Code and establishing an EU Customs Authority (UCC reform), and the removal of the EUR 150 exemption threshold (de minimis) for the payment of customs duties and VAT on imported products;

    M. whereas customs authorities are in need of substantial investments, particularly to ensure a sufficient number of properly trained staff to guarantee the functioning of EU customs systems, which are facing an exponential increase in demand for customs checks; whereas without the necessary investments in staff, digital solutions cannot achieve benefits in terms of efficiency and harmonisation;

    N. whereas advanced screening technologies, such as artificial intelligence and blockchain, could significantly enhance the capacity of customs and market surveillance authorities to flag high-risk shipments and automate compliance checks at scale; whereas investment in such technologies remains fragmented and uneven across Member States; whereas increased EU-level funding, coordination and efforts to ensure interoperability are essential to accelerate their deployment and improve the overall efficiency and effectiveness of enforcement mechanisms;

    O. whereas digital tools, such as artificial intelligence and the internet of things, can help track non-compliant products, but must respect consumer privacy and must not lead to the general monitoring of users;

    P. whereas the Commission communication of 5 February 2025 on a comprehensive EU toolbox for safe and sustainable e-commerce, highlights that the volume of e-commerce goods bought by EU consumers on non-EU online platforms is expected to continue growing rapidly, benefiting from the current customs duty exemption for low-value consignments (up to EUR 150);

    The surge in non-compliant goods in e-commerce

    1. Highlights the increasingly high number of purchases being made by EU consumers on non-EU online platforms in business-to-consumer environments and in emerging manufacturer-to-consumer and direct-to-consumer environments; emphasises, as described in the Letta report on the future of the single market[10], that the circulation of harmful products in the single market is escalating and that EU consumers are wasting EUR 19.3 billion per year buying dangerous products that can lead to injuries and that are detrimental to our economies;

    2. Notes that 4.6 billion e-commerce items under the EUR 150 exemption threshold were imported into the EU in 2024, 91 % of which originated from China, amounting to up to 12 million small e-commerce items per day and amounting to almost twice the number recorded in 2023 (2.4 billion) and more than triple the number in 2022 (1.4 billion); notes that this surge has exacerbated compliance challenges, especially in product safety, and that market surveillance authorities and independent investigations have reported alarming non-compliance rates;

    3. Stresses that most unsafe and illegal products are shipped to the EU in large volumes of individual, and often small, parcels sold to EU consumers via online platforms from non-EU countries, in particular China; stresses that such products are difficult to control, in particular for customs authorities at the entry points, which are mostly located at major ports and logistical airports for e-commerce; emphasises that this makes it almost impossible to stop such products from entering the EU and makes it increasingly difficult for market surveillance authorities to detect and remove such products from the internal market and for consumer authorities to do so once the products reach EU consumers;

    4. Stresses that the rapid growth of e-commerce has significant environmental implications due to issues such as a rise in packaging waste, the larger carbon footprint from low-quality and short life cycle products and their shipment, and problems with waste management and non-recyclable materials; underlines, in this respect, the need to ensure compliance with environmental legislation and to encourage sustainable ways of consuming;

    5. Stresses that some non-EU online marketplaces are facing allegations regarding the use of forced labour; underlines, in this respect, that Regulation (EU) 2024/3015 prohibits products made with forced labour from entering the EU market, and that it must be effectively enforced after its application, including for online sales;

    6. Notes that, on 1 December 2025, Regulation No 2023/2411[11] on the protection of geographical indications for craft and industrial products will come into force; notes that, if not accompanied by adequate promotion and protection, especially with respect to the markets of non-EU countries, geographical indications risk remaining ineffective; calls, therefore, on the Commission, together with the customs authorities of the Member States, to strengthen checks aimed at intercepting products that violate the rules on geographical indications;

    7. Is concerned that the prevailing business model of certain major non-EU online platforms is based on the rapid, large-scale production and distribution of fast fashion and ultra-fast fashion products, prioritising speed and low cost over sustainability, safety and quality; regrets that many such products do not comply with EU legislation, yet non-compliant sellers frequently evade meaningful enforcement or sanctions; stresses that such practices constitute a form of social and environmental dumping, resulting in a persistent and unfair competitive advantage for these non-EU platforms, exerting disproportionate pressure on European undertakings, in particular SMEs and micro-enterprises; emphasises that this hampers the development of the EU’s textile and clothing sector;

    E-commerce crossroads: navigating compliance challenges

    8. Recognises that the EU has established a robust compliance framework, which also applies to products sold online, but that greater efforts are still needed for the full enforcement of the compliance framework; underlines, in this respect, the importance of the DSA, the DMA, the MSR, the GPSR, consumer protection rules and various product and environmental laws; emphasises that market surveillance authorities face challenges in applying these frameworks to online platforms as evidenced by the Commission’s recently published evaluation report on the implementation of Article 4 of Regulation (EU) 2019/1020 and, in particular, in cases where large quantities of a product are sold in small consignments; considers that the thorough implementation of the DSA and other regulatory acquis is necessary to combat unsafe, non-compliant and counterfeit products;

    9. Stresses the need to implement the existing compliance framework and evaluate these measures when considering new legislation, including new obligations for online marketplaces;

    10. Notes that conducting physical tests is particularly impractical for small parcels sent directly to the final consumer and that customs authorities will therefore continue to rely primarily on checking the documentation, rather than inspecting the products themselves;

    11. Highlights the significant enforcement gaps caused by the limited resources and insufficient level of digitalisation of customs and market surveillance authorities, the lack of human resources and harmonised and interoperable technological tools across Member States, and the insufficient data sharing and overall lack of cooperation and coordination between customs authorities, platforms and market surveillance entities; acknowledges that physical inspections are unavoidably and inherently limited given the volume of e-commerce parcels entering the EU;

    12. Considers that mystery shopping exercises by market surveillance authorities, as put forward in the Commission communication on e-commerce, are an important tool to verify compliance for products sold through online platforms; stresses, however, that if sellers are based outside the EU or are not traceable and if fake addresses are used for responsible persons, there is no liable legal entity and it is impossible for market surveillance authorities to take enforcement actions;

    13. Considers that EU manufacturers and retailers, particularly SMEs, face unfair competition due to non-EU platforms enabling non-EU manufacturers and their non-compliant products to easily enter the EU market, bypassing applicable regulations and standards; highlights that, while EU manufacturers must comply with strict safety, environmental and quality rules, many low-value products sold through these platforms evade customs and market surveillance checks due to the way they are shipped to the EU; raises concerns that some of these platforms and non-EU traders deliberately exploit this loophole, allowing non-compliant imports to enter the EU single market unchecked, putting European manufacturers, wholesalers and retailers at a disadvantage, weakening their competitiveness and hindering their ability to innovate, which could lead to the closure of many micro-enterprises and small enterprises;

    14. Stresses that EU manufacturers are de facto subject to significantly stricter market surveillance compared to non-EU manufactures that reach EU consumers via e-commerce platforms; deeply regrets the loss of market share and jobs caused by the influx of cheaper products that do not comply with European standards, particularly on safety and quality, as well as other illegal products, shipped from non-EU countries, directly affecting EU SMEs and the strength of EU companies and their capacity to invest and maintain profitability;

    15. Highlights the difference between online platforms acting as intermediaries and those acting as importers; notes, in particular, that the EU e-commerce platforms that act as importers face compliance costs that increase their retail prices up to 40 %, which has an impact on final consumers; underlines that EU-based importers face stricter obligations and higher costs, while intermediary platforms allow non-EU sellers to ship directly to EU consumers without ensuring compliance;

    16. Recognises that e-commerce platforms are subject to various obligations under the DSA and the GPSR and may be held liable under the Product Liability Directive[12] (PLD) in specific circumstances; recalls, in this respect, that online platforms are liable if they do not respect their specific obligations as intermediaries; believes, however, that consumer redress must be ensured in all cases; underlines, in this respect, that where the manufacturer is established outside the EU and no importer, authorised representative, or fulfilment service provider can be identified, online marketplaces should provide adequate and proportionate remedies to consumers where they fail to comply with the DSA, particularly with Articles 30 and 31 or with Article 22 of the GPSR;

    17. Emphasises that online marketplaces are requested to trace their traders (‘know your business customer’) under the DSA, which should discourage traders from selling unsafe or counterfeit goods, and are obliged to comply with the ‘compliance by design’ rules to increase overall traceability; highlights the lack of accountability of online platforms in case of untraceable sellers or sellers based outside the jurisdiction of the EU; notes the considerable level of non-compliance with the ‘know your business customer’ principle and the rise in new selling practices via social media platforms, where this obligation is not effectively applied, allowing non-EU sellers to offer non-compliant goods to EU users directly; stresses, therefore, the need for online platforms to make best efforts to ensure full traceability of sellers and products, preventing listings from appearing without verified product compliance details;

    18. Highlights the fact that the information of a responsible economic operator in the EU under the GPSR, acting on behalf of a non-EU trader or platform, is often wrong or missing; notes that even when this information is available, the responsible person in the EU may not be accountable, particularly when the responsible person is an authorised representative; is concerned that market surveillance authorities report significant difficulties in contacting these non-EU traders and enforcing EU law, and that even when contact is established, enforcing penalties against them is often unfeasible;

    19. Considers that creating a database of the responsible persons in the EU to enable real-time cross-checking for verification, along with establishing an accreditation procedure for them, could enhance transparency and reinforce accountability throughout the e-commerce import supply chain;

    20. Supports research and enforcement actions by consumer organisations and the opening of investigations initiated by consumer authorities in the EU, as part of the CPC network, as well as under the DSA, against non-EU online platforms for potential violations of EU product safety and consumer laws; expresses concern over the slow progress of these investigations and calls for their swift conclusion; underlines the need for enforcement to be a deterrent that includes adequate sanctions to ensure compliance; underlines, in this respect, that particular attention is necessary at national and EU level to address recurrent non-compliance that may have been identified in previous controls of similar products, including via the application of interim measures; stresses that the enforcement and effectiveness of commitments received from online platforms should be closely monitored;

    21. Urges the Commission and CPC authorities to initiate a structured enforcement dialogue with consumer representatives, traders and other stakeholders to identify systemic infringements requiring stronger enforcement;

    22. Notes the complexity for EU authorities to enforce EU laws when the economic operators are established outside the EU; highlights the need for enhanced international cooperation agreements, particularly with major e-commerce exporters;

    Strong enforcement policies to combat non-compliant e-commerce products

    Urgent need for short-term measures

    23. Urges the Member States to increase funding and resources for market surveillance, customs, consumer protection and digital services authorities so that they can better address the challenges posed by unsafe and illicit products; asks the Commission to support stronger cooperation, information sharing and data exchange between competent authorities, including market surveillance and customs authorities, and stresses that cooperation across different sectors should be improved; urges the Member States to ensure effective coordination among different market surveillance authorities in their territories, and to strengthen the powers of the single liaison offices; highlights that the Member States and the EU have the responsibility to ensure that market surveillance and customs authorities are properly resourced, trained and equipped to have the capacity to fulfil their mission, including proper investigative powers;

    24. Calls on market surveillance authorities to invest more resources in joint or coordinated activities with other Member States or relevant authorities and, in particular, to increase the number and the frequency of coordinated enforcement actions such as sweeps, mystery-shopping exercises and peer-reviews; urges relevant authorities to actively participate in these activities and the Commission to make full use of its coordination powers;

    25. Welcomes the Commission’s intention to coordinate the control of customs and market surveillance authorities under priority control areas focused on products from non-EU countries that pose significant safety hazards and a risk of non-compliance; emphasises that this initiative should generate valuable risk profile data, which could be used in further enforcement activities and penalties to non-compliant actors; calls on the Commission to strengthen cooperation within the EU Product Compliance Network and to increase EU funding for customs cooperation under the customs programme and for market surveillance operations under the single market programme; stresses that the lack of adequate resources has hindered the effective deployment of tools, such as the widespread use of mystery shopping activities by market surveillance authorities or the use of trusted flaggers under the DSA; points out to the Commission that, in addition to existing testing facilities for toys and radio equipment, more testing facilities for e-commerce goods are urgently needed, such as for batteries, textiles, cosmetics, electrical appliances and other products; asks the Member States to deploy sufficient resources to guarantee an increased capacity of testing facilities and to increase investments in equipment for the detection of unsafe and illegal goods;

    26. Emphasises that for data and security reasons, Member States should restrict high-risk vendors from operating in their critical infrastructure and border security systems, including for the procurement of security screening and cargo scanning equipment used at airports and ports;

    27. Highlights the fact that, under the GPSR, online marketplaces are obliged to establish a single point of contact, register with the Safety Gate Portal and indicate the information concerning their single contact point on the portal; asks the Commission to effectively enforce this and other obligations of online marketplaces and to support the Member States’ market surveillance authorities in implementing the GPSR and the MSR; notes that the GPSR introduced direct data exchanges between enforcement authorities and e-commerce platforms; believes, however, that in order for the system to work effectively, a direct link with customs authorities should be provided;

    28. Notes that the current system is more reactive than preventive, as authorities intervene only after dangerous products have already been sold to consumers, rather than preventing their distribution; recalls that, under the GPSR, online marketplace providers are encouraged to check products against the Safety Gate Portal before listing them on their interfaces; underlines that random sampling testing can only be efficient if it is conducted regularly;

    29. Emphasises that the swift implementation of the Digital Product Passport (DPP) for several critical products sold online is essential to strengthen the enforcement of existing legislation; urges the Commission to present the necessary secondary legislation on the DPP as soon as possible, in particular for textiles, toys, cosmetics, electronics and other products with high non-compliance rates and associated risks; calls on the Commission to continuously assess the requirements, technical design and operation of the DPP under the Ecodesign for Sustainable Products Regulation[13] (ESPR) as a priority; calls on the Commission to support businesses, in particular micro-enterprises and SMEs, in the implementation of the DPP;

    30. Proposes a mandatory DPP with early compliance verification for all products imported via e-commerce, including detailed quality and compliance data, to be integrated directly into the EU customs data hub, allowing authorities to pre-screen information on products before they are placed on the single market;

    31. Urges the Member States to make substantial efforts to increase customs controls and improve risk analysis, as the detection and removal of non-compliant goods can reduce the harm to EU consumers and protect the economic interests of EU businesses; underlines that the introduction in the customs risk analysis of a presumption of non-compliance for goods identical to those already found non-compliant could facilitate controls by customs authorities and improve cost efficiency; stresses the importance of reinforcing customs centres so they are better equipped to handle the large volume of small parcels that are difficult to control using traditional methods, including advanced screening technologies to identify suspicious packages at entry points; asks for more rigorous compliance checks, as well as random checks by the authorities on high-tonnage transport; urges the Member States, furthermore, to significantly increase the level of digitalisation of import procedures in customs authorities in order to implement existing legislation and accelerate customs procedures, especially in view of the high numbers of parcels;

    32. Underlines that businesses, particularly SMEs, urgently require clear guidelines from the Commission for the effective implementation of the GPSR, including clarification on its interplay with overlapping legislation, such as the DSA, the MSR, the PLD, and sector-specific laws on toys, cosmetics and detergents; calls on the Commission to issue these guidelines before the end of the first half of 2025 to facilitate businesses’ compliance; considers that the evaluation report on the interaction of the DSA with other legal acts, which is due on 17 November 2025, should take into account different legislation, in particular on product compliance, the obligations of online marketplaces, enforcement rules and possible future improvements on simplification and implementation; calls on the Commission to assess all possible further actions, including the evaluation of sectoral legislation, which is necessary to ensure legal predictability and that no legal loopholes or enforcement gaps are left when it comes to direct imports from non-EU countries via online marketplaces;

    33. Calls on the relevant national authorities to make full use of the existing and recently adopted enforcement toolbox, especially in relation to provisions on e-commerce set out in the MSR, GPSR and DSA, such as takedown orders, prohibition, restriction on the making available of a product on the market or its removal, recalls and sanctions as measures to counter the rise of illegal and non-compliant imports from non-EU countries;

    34. Underlines that regulatory enforcement measures taken against non-compliant actors should not put disproportionate burdens on compliant actors or cause unintentional harm to the second-hand market;

    35. Stresses the need to ensure the protection of intellectual property rights in the light of the increase in non-European counterfeit goods on e-commerce platforms; notes that these practices harm the competitiveness of European companies and pose risks to innovation and the incentives for research and development; calls for stronger measures against the sale of counterfeit goods online; urges the Commission to issue clear guidelines on trusted flaggers and stresses that rights holders should be recognised as eligible trusted flaggers when they meet the criteria outlined in Article 22 of the DSA;

    36. Points out that the Member States should make better use of the available sets of penalties and sanctions against economic operators, as well as other available tools including interim measures, in order to create a deterrent effect to dissuade economic operators from infringing upon the applicable legislation;

    37. Urges the Commission to take effective measures, including legislative measures where legal loopholes are clearly identified, without delay to ensure legal certainty and a level playing field for European companies, placing particular emphasis on SMEs;

    The need for regulatory reforms

    38. Calls for the removal of barriers to enforcing consumer rights, such as legal warranty claims and the right to return items; calls on the Commission to review the CPC Regulation without delay as this will be fundamental for a more effective cross-border enforcement of EU consumer law and the fight against unsafe products; asks the Commission, in this context, to provide for clear measures to further strengthen enforcement powers over non-EU traders and platforms and ensure better coordination of EU and national actions and the exchange of information among authorities, as well as with authorities in non-EU countries; highlights that the structure of the European Competition Network could be used as an example to follow for enforcement and information exchange in the case of suspected violations impacting multiple Member States, especially to combat non-compliant products effectively; stresses the importance of granting the Commission direct powers to investigate and sanction certain high impact breaches of consumer law, thus ensuring more effective, simultaneous and uniform enforcement and sanctions under EU consumer law;

    39. Notes that the CPC Regulation already empowers enforcement authorities to act against non-compliant traders and even gives the possibility for Member States to impose penalties and interim measures such as restricting access to the website; acknowledges, however, that the limitation is that this action must be taken on a country-by-country basis rather than at EU level, with each country applying its own penalties, making the consequences of violations uneven;

    40. Notes that enforcement in the Member States is fragmented, which leads to inefficiencies; calls for better coordination of enforcement and compliance oversight effective information exchange between Member States and for a more uniform application of the EU acquis; calls on the Commission to assess the MSR, particularly the need for an EU Market Surveillance Authority that would ensure consistency and provide operational support to the activities conducted by the relevant national market surveillance authorities and foster cooperation with the new EU Customs Authority (EUCA), as well as the implementation of Article 4 of the MSR, defining the responsible economic operators in the EU for product compliance; stresses that, to date, the designated responsible economic operator often lacks the capacity to provide redress or compensation to consumers, in particular when being an authorised representative;

    41. Supports the Commission’s ambition to swiftly advance the upcoming interinstitutional negotiations with Parliament and the Council on the UCC reform and the two proposals for Council acts on removing the exemption threshold on customs duties for goods valued under EUR 150; urges, therefore, the Member States to accelerate the negotiation procedure in the Council, recognising the urgency of the customs reform for EU competitiveness and the protection of EU consumers; underlines, however, that removing the threshold is a necessary step but not a stand-alone solution, as customs authorities will still only be able to inspect a limited percentage of parcels; stresses that immediate removal of the customs duty exemption is necessary for high-risk imports from product and consumer safety perspectives; emphasises the need for the customs reform to ensure coherence across regulatory frameworks, particularly avoiding duplication or conflicts with the DSA, and highlights the essential role customs authorities play in detecting non-compliant and unsafe products;

    42. Stresses that the UCC reform will provide the necessary tools for customs authorities to better supervise and control the goods entering the EU, help to strengthen the single market and customs union, improve the detection of unsafe and illicit products, and contribute to a level playing field among economic operators; welcomes, in this respect, the proposal under the UCC Regulation to establish the cooperation mechanism with market surveillance authorities that will improve the effectiveness of product controls; emphasises the importance of enhancing customs infrastructure and staffing to manage e-commerce effectively; highlights the need for simplified compliance processes tailored specifically to SMEs; calls on the Member States to introduce automated, forward-looking customs clearing systems, for instance by obliging platforms to enrol and clear customs automatically at the point of sales;

    43. Is concerned that some non-EU traders are circumventing EU customs checks by clearing goods by customs at the point of origin; stresses that those non-EU trading companies often prefer to pay penalties rather than open packages upon arrival at EU customs, aiming to unload shipments and depart immediately; is deeply concerned that customs authorities find that many packages are either undeclared or incorrectly declared and are sometimes fraudulently labelled; highlights that the UCC reform should also address these aspects;

    44. Takes note of the concern expressed by the ECC network regarding the drop-shipping business model, which raises challenges in consumer protection, product safety and regulatory compliance; regrets that consumers often face misleading practices, difficulties in returning products, and unexpected import duties, while a significant share of drop-shipped products fail to comply with EU safety standards; stresses that drop-shipping complicates enforcement due to untraceable businesses and cross-border complexities, while VAT and data protection compliance remain key concerns; notes that when combined with influencer marketing, drop-shipping may exacerbate transparency issues, reputational risks and inconsistent outcomes; calls on the Commission to assess how to address drop-shipping-related issues;

    45. Highlights the fact that the concept of a ‘deemed importer’ aims to ensure a level playing field for both EU and non-EU online platforms; notes that, in the context of an online sale from outside the EU, this measure would relieve customers of non-EU online platforms from being considered importers, as they are under the current UCC, while a non-EU platform or trader would instead be considered the ‘deemed importer’; believes that ‘deemed importer’ responsibilities should be clearly defined and consistent with the provisions of the DSA; emphasises that platforms being responsible for ensuring that VAT and customs duties are collected at the point of sale, rather than upon entry into the EU, will reduce fraud and tax evasion;

    46. Expresses concern about the optional nature of the Import One-Stop Shop (IOSS) scheme for all online operators, which deviates from the original objectives of the VAT in the digital age (ViDA) initiative; underlines the necessity of additional actions to strengthen the system’s robustness and curb potential misuse; urges the Commission to engage closely with stakeholders to establish safeguards for the IOSS against fraudulent practices; recommends that such safeguards be both comprehensive and streamlined to effectively deter fraud while avoiding excessive administrative burdens; stresses the necessity of extending the IOSS applicability to goods beyond the customs duty exemption threshold of EUR 150 to prevent undervaluation and ensure fair competition;

    47. Calls for the establishment of a new EUCA in 2026 to provide expert support to the Member States’ customs authorities; underlines that the EUCA should in its coordination role also map testing and control capabilities of customs and market surveillance authorities in and across the Member States and be mandated to execute unannounced inspections to detect possible unsafe or non-compliant products and issue sanctions in case of non-compliance; notes that the new EU customs data hub will allow for enhanced cooperation between the EUCA and customs and other authorities through data exchange and the interoperability of national IT systems, and thus facilitate coordinated controls and the detection of non-compliant products; considers that it is essential to fully integrate the functionalities of the Customs Single Window into the EU customs data hub; notes in the context of the proposed EUCA, the importance of regularly consulting representatives of various stakeholders to provide early warning to the EUCA;

    48. Stresses that, given the urgency, the entry into force of different obligations planned in the UCC revision should be accelerated, such as the establishment of the EU customs data hub; calls on the Commission to immediately start the preparatory work necessary for the establishment of the EU customs data hub, so as to speed up the preparation of its e-commerce functions in 2026;

    49. Urges the Commission to carry out an impact assessment regarding the idea of e-commerce items being shipped to the EU in bulk and, in turn, the establishment of warehouses in the EU by non-EU traders for such goods before they are put into parcels for delivery to customers; recognises that such shipments of e-commerce items in bulk and their storage in warehouses in the EU might increase the oversight of customs and market surveillance authorities and improve their controls and detection of non-compliant goods compared to single parcel shipments; calls on the Commission and the Member States to consider all possible options to incentivise such practices, including a simplified status for trust and check traders and cost-benefit assessments for incentive schemes; further notes that bulk shipping may not be feasible for all non-EU traders, particularly those operating consumer-to-consumer (C2C) or second-hand models; emphasises that this approach should strike a balance between the compliance advantages and the practical requirements of e-commerce operators, ensuring that it avoids creating logistical bottlenecks or placing an undue burden on varying business models;

    50. Acknowledges that the Commission has released a non-paper outlining the introduction of a non-discriminatory handling fee on e-commerce items, to be charged by customs authorities for goods sold in distance sales with the aim of covering the increased supervisory costs of custom authorities, namely the checking of the data, carrying out risk analysis, performing documentary and physical controls and specifically the financing of the EUCA and the data hub; insists that Member States should avoid unilateral fees to avoid a fragmentation of the customs union; underlines that the proposal suggests a flat EUR 2 rate per item delivered directly to the customer or a smaller 50 cent fee for Trust and Check Traders operating a business model of a customs warehouse for distance sales within the EU; calls on the Commission to conduct a proper evaluation of whether the proposed amount complies with World Trade Organization (WTO) rules, and whether it is sufficient and proportionate to reach the objectives; insists that this handling fee not be incurred by the consumer;

    51. Notes the enormous waste management and product destruction cost arising from the huge amount of non-compliant and unsafe products imported via non-EU country e-commerce; underlines that a large share of these products is non-recyclable, environmentally harmful or non-compliant with applicable chemicals legislation, further driving up environmental costs for public authorities; calls therefore on the Commission to evaluate the necessary measures to mitigate the environmental impact of non-EU countries’ e-commerce activities including the feasibility of a waste management fee on all products sold via non-EU countries’ online marketplaces to ensure that environmental costs are not supported by EU taxpayers;

    52. Stresses that inconsistent penalties and different enforcement strategies for non-compliance in different Member States lead to ‘border shopping’ or ‘customs shopping’; supports the minimum harmonisation of infringements and non-criminal sanctions for non-compliance across the Member States and through the EUCA as this would avoid creating weak entry points in the EU customs territory; stresses that this should entail a common framework for minimum harmonisation to close existing loopholes and thus tackle e-commerce challenges; underlines that Member States can impose additional sanctions tailored to national contexts;

    53. Notes that the Commission is scrutinising certain non-EU online marketplaces for employing manipulative practices, including dark patterns, addictive design features, deceptive influencer marketing, and the dissemination of fake or misleading online reviews; recognises that, according to the Digital Fairness Fitness Check report, unfair commercial practices cost consumers nearly EUR 8 billion annually, and that the use of unfair techniques to pressure consumers, especially vulnerable ones and children, into impulse purchases leads to overconsumption and overspending; calls on the Commission to address these issues in the upcoming Digital Fairness Act, unless they are already covered by existing legislation, with a view to effectively tackling unfair practices and closing existing legal loopholes, while staying consistent with existing legal frameworks and avoiding unnecessary regulatory burdens;

    54. Emphasises the need to ensure that any new initiatives proposed by the Commission in the area of customs enforcement or compliance do not result in additional administrative burdens for European businesses, particularly SMEs;

    55. Stresses the importance of the role of the European Public Prosecutor’s Office (EPPO) in the field of cross-border investigations of customs offences, which notably include fraud, for example the illicit undervaluing of the price of products in order to avoid paying the import taxes; emphasises that the large-scale circumvention of customs duties, including fraudulent e-commerce declarations and undervaluation, as well as the avoidance of controls and ‘forum shopping,’ must be effectively combated through criminal law investigations conducted by the EPPO, with the support of customs authorities; stresses that the EPPO’s robust legal framework for cross-border investigations should be leveraged to dismantle the criminal networks behind such operations;

    Additional enforcement actions

    56. Calls on the Commission and the national competent authorities to strongly enforce the DSA with regard to the responsibility of online marketplaces, in particular their obligations in terms of recommender systems, interface design, right to information, the compliance by design rules to increase the overall traceability, and their ‘know your business customer’ obligation; highlights that compliance with these obligations should dissuade non-compliant traders from offering their products in the EU through marketplaces or shopping services of social media falling in this category, and calls on the Commission to provide practical support in tracing traders that do not abide by EU rules; stresses the need for a DSA-based network of trusted flaggers for illegal products and e-commerce to ensure that platforms fulfil their obligations effectively;

    57. Stresses that the enhancement of cooperation and coordination with national competent authorities is crucial; asks for more cooperation among all relevant authorities, such as Member State authorities, customs authorities, and consumer protection authorities, and for stronger coordination among all established expert groups; stresses that, under the DSA, the investigative actions against non-compliant online marketplaces need to yield results and lead to deterrent sanctions in order to prevent the offer of non-compliant products; emphasises the importance of these investigations in addressing systemic risks, compliance failures, illegal content dissemination, addictive design features, dark patterns and the use of influencers for manipulative advertising;

    58. Calls on enforcement authorities to strengthen monitoring and enforcement actions targeting new sales channels; recommends that competent authorities be equipped with adequate resources, technological tools, and cross-border cooperation mechanisms to effectively identify and take action against non-compliant traders operating via social media and other emerging platforms;

    59. Suggests that online marketplace sellers must provide a reshipping address and contact point within the EU to allow consumers to easily return non-compliant goods without undue costs and to allow authorities to inspect goods; believes that online marketplaces should be responsible for checking this and should be held accountable for enforcement;

    60. Calls for an urgent in-depth evaluation of the effectiveness of the provision of the ‘responsible person for products placed on the Union market’, particularly those of non-EU traders, building on the results of the evaluation report on Article 4 of the MSR; calls on the Commission to consider among its future actions the introduction of a mandatory requirement for non-EU traders to appoint a responsible person in the EU with increased legal and financial liability;

    61. Notes that postal and other delivery services are undergoing significant transformations due to the rapid growth of e-commerce; raises concerns that the Universal Postal Union’s terminal dues system in practice does not apply to e-commerce flows; notes that, as a result, Chinese e-commerce businesses, due to shipment volumes, enter into commercial agreements directly with the EU postal operators for exceptionally attractive delivery rates that are lower than those for goods manufactured within the EU, leading to deeper fragmentation of the single market for postal services; urges the Commission to evaluate the impact of e-commerce on postal services and the internal market, and to consider how postal services can contribute to strengthening the single market and benefiting consumers, and to the overall competitiveness of the EU;

    62. Welcomes the approval of the ViDA reforms, which represent a significant step towards modernising VAT collection in the e-commerce sector; emphasises the importance of the Single VAT ID for online marketplaces and for European manufacturers, enabling them to compete on a level playing field by simplifying VAT compliance across the Member States; highlights that this measure can also facilitate in-bulk importation and the warehousing of goods within the EU, reducing reliance on fragmented cross-border shipments and ensuring that value-added services, such as fulfilment and logistics, take place within the single market; stresses that these reforms will enhance tax compliance, reduce administrative burdens, and improve enforcement while supporting fair competition and strengthening EU supply chains; calls on the Commission and the Member States to ensure the effective implementation of these measures to maximise their benefits for European businesses and consumers;

    63. Calls on the Commission to consider measures aimed at reducing the unnecessary regulatory and administrative compliance burden for EU manufacturers, in particular for SMEs, in order to level the playing field and enable them to better compete with global competitors operating under more efficient compliance standards;

    64. Calls on the Commission to enhance international cooperation with other like-minded countries to exchange best practices, identify common challenges and risks and develop joint actions on e-commerce;

    65. Welcomes, in this regard, the WTO Joint Statement Initiative on Electronic Commerce; notes that the agreement will benefit consumers and businesses by facilitating cross-border electronic transactions, reducing barriers to digital trade and promoting innovation in e-commerce; underlines, however, that the agreement is only a foundation and encourages the Commission to pursue ambitious trade agreements in negotiations with partners to ensure binding provisions on e-commerce;

    Increased use of IT tools

    66. Welcomes the fact that the Commission is preparing a project to streamline existing databases, including the Information and Communication System on Market Surveillance, the EU Safety Gate and the Customs Risk Management System, into a common interoperable system gathering all information on the safety of products, counterfeit product tracking and notifications of accidents and to ensure interoperability with the DPP and the future EU customs data hub; calls on the Commission to publish information regarding the implementation timeline and the resource requirements of this initiative;

    67. Supports the Commission’s aim to provide market surveillance authorities with the e-Surveillance WebCrawler tool to flag reappearing dangerous products; asks the Commission to make available another web crawler for detecting new listings as soon as possible, in order to flag non-compliant products before they reach consumers;

    68. Supports the responsible use of artificial intelligence, blockchain and the internet of things for scanning and analysing product listings on e-commerce platforms, automating customs and market surveillance inspections and risk identification and integrating product compliance databases for real-time checks between market surveillance and customs authorities, in line with EU and national laws; notes, however, that the high implementation costs of these technologies remain a barrier; underlines that the full uptake of these technologies will make handling more efficient, especially for low-value goods, and that the high volume of parcels containing many different items faces limited inspection capabilities;

    69. Demands that the Commission and the Member States exchange best practices and find incentives to provide the necessary funding and support for national authorities in order to increase the responsible use of technological solutions; suggests that artificial intelligence, blockchain and the internet of things could be used to scan and analyse product listings on e-commerce platforms, automate inspections and risk profiling, and integrate product compliance databases for real-time checks by several authorities;

    70. Underlines that Member States should reinforce customs checks in particular with low-value shipments by implementing risk-based assessment systems and digital tracking to prevent non-compliant products from bypassing customs controls; calls on the Member States to increase the level of automated processes, such as automated scans of labels when processing parcels at customs;

    71. Recognises that some online marketplaces also use a number of IT tools to detect and remove unsafe and illicit products that are found on their platforms; highlights, however, the fact that online marketplaces need to further invest in and increase their use of these IT tools to effectively avoid the offer and sale of unsafe and illicit products; calls on the Commission to further incentivise the use of IT tools by online marketplaces in this regard, while ensuring full compliance with Article 8 of the DSA, which provides that there is no general obligation to monitor the information that providers of intermediary services transmit or store;

    72. Suggests that, without prejudice to the principle enshrined in the DSA that providers of intermediary services online should not be subject to a monitoring obligation with respect to obligations of general nature, online intermediaries engaged in the sale, promotion or distribution of products within the EU market should consider on their own the use of risk-based digital monitoring systems to identify and prevent the presence of illegal content (presentation, description or offering for sale of illegal or dangerous products); stresses the importance of implementing swift response mechanisms to ensure the permanent removal of specific illegal content as soon as providers of intermediary services online have actual knowledge of such illegal content being presented on their interfaces, as well as the necessity for hosting service providers to take all necessary measures to prevent the reappearance of the same or equivalent illegal content on their platform;

    Improvement of consumer awareness and information

    73. Emphasises that EU consumers and European SMEs engaged in importing activities often lack sufficient information on the possible dangers of potentially unsafe products and the harm they can cause; stresses that consumers are increasingly targeted by traders who, despite their legal obligations, often do not inform consumers that their products are made and shipped from outside of the EU; acknowledges that there is demand among EU consumers for cheaper products, which are purchased on non-EU online marketplaces due to their much lower production costs and uncompetitive conditions for EU businesses and online platforms; stresses that online marketplaces may use manipulative design techniques (dark patterns) to influence purchasing decisions; warns against the risks associated with compulsive purchasing behaviours, financial difficulties and the accumulation of unnecessary goods; calls on the Commission and the Member States to organise information and awareness-raising campaigns on the purchase of unsafe products online and their possible health, privacy, environmental and competitiveness consequences, with a special focus on vulnerable consumers and at peak consumption times;

    74. Recommends fostering second-hand consumption as a sustainable approach to addressing EU consumers’ need for affordable goods; stresses the importance of promoting and incentivising the reuse of second-hand products as an important driver for unlocking the potential of the circular economy;

    75. Asks the Commission and the Member States to strictly enforce the ecodesign requirements for textiles and other products under the ESPR, as well as the provisions of the Directive on Empowering Consumers for the Green Transition[14] in order to make sure that consumers are better informed about sustainability aspects, such as environmental impacts, energy use, reparability and durability of products purchased on online marketplaces;

    76. Considers that consumer authorities, organisations, industry associations and chambers of commerce should be encouraged to conduct large, coordinated awareness-raising campaigns on consumer rights, potential risks, including the possibilities for collective redress, and redress mechanisms when purchasing online, in particular on non-EU online platforms; stresses the need to also raise awareness about the environmental, health and social impacts of unsustainable business practices and to alert consumers about the role of new advertising techniques, such as influencers and digital opinion leaders, in shaping perceptions of product safety and reliability; calls on the Commission to take a coordinating role as mentioned in the Commission communication of 5 February 2025 on e-commerce and to explore possibilities to finance cross-border information campaigns developed in cooperation with researchers, civil society and other relevant stakeholders;

    Trade and development considerations

    77. Calls on the Commission to implement its level of ambition in agreements with international partners at the multilateral level, as unsafe products constitute not only a European, but also a global challenge; reiterates that, as set out in Parliament’s position on the UCC revision, the EUCA should establish working arrangements with the authorities of non-EU countries and international organisations; stresses that such arrangements should enable the EUCA to exchange information, including best practices, with non-EU authorities and international organisations, and to carry out joint activities; supports continued engagement in the UN Trade and Development working group on consumer product safety, which plays a crucial role in developing best practices for cross-border enforcement;

    78. Calls on the Commission to step up cooperation with international partners, within forums such as the WTO, the World Customs Organization (WCO) and the G7, to counterbalance China’s influence and ensure reciprocity and rules-based trade; calls on the Commission to explicitly incorporate robust and enforceable obligations addressing forced labour when reviewing and renegotiating current trade and investment agreements; underscores the need for stronger EU-China cooperation mechanisms and transparent certification requirements to ensure compliance;

    79. Highlights the need to consider service and product safety and regulatory compliance provisions when negotiating future EU trade agreements; stresses the importance of specific regulatory dialogues and cooperation through administrative arrangements, improved customs enforcement cooperation, the traceability of shipments to the highest standards and enhanced data-sharing arrangements between customs authorities to effectively tackle non-compliant imports;

    80. Urges the Commission to be proactive and swiftly deploy targeted trade defence instruments, including anti-subsidy investigations, to address the adverse impacts on European businesses; emphasises that such actions must be coordinated closely with key international partners, to ensure effective global enforcement and reciprocal market fairness;

    81. Encourages the Commission to enhance diplomatic efforts and cooperation within international forums, particularly the WTO, the WCO and the G7, to counterbalance China’s strategic expansion into digital governance frameworks, including its Digital Silk Road initiative; stresses the need for open, more transparent and responsible digital trade rules in international standard-setting bodies to prevent internet fragmentation and mitigate the risks posed by restrictive digital governance models;

    82. Welcomes the WTO Joint Statement Initiative on Electronic Commerce as a vital step towards global digital trade rules; stresses, however, its current limitations, especially regarding customs transparency; urges the Commission to advocate stronger binding provisions to ensure its effective implementation and integration into the WTO legal framework, and to ensure enhanced global compliance standards;

    83. Emphasises the need for international capacity-building initiatives to support the sustainable and compliant participation of developing countries in digital trade; calls on the Commission to collaborate closely with international organisations, especially the WTO, to enhance regulatory frameworks and technical assistance for e-commerce in developing countries;

    °

    ° °

    84. Instructs its President to forward this resolution to the Council and the Commission.

    MIL OSI Europe News –

  • MIL-OSI Europe: REPORT on the proposal for a regulation of the European Parliament and of the Council amending Regulations (EU) 2015/1017, (EU) 2021/523, (EU) 2021/695 and (EU) 2021/1153 as regards increasing the efficiency of the EU guarantee under Regulation (EU) 2021/523 and simplifying reporting requirements – A10-0117/2025

    Source: European Parliament

    DRAFT EUROPEAN PARLIAMENT LEGISLATIVE RESOLUTION

    on the proposal for a regulation of the European Parliament and of the Council amending Regulations (EU) 2015/1017, (EU) 2021/523, (EU) 2021/695 and (EU) 2021/1153 as regards increasing the efficiency of the EU guarantee under Regulation (EU) 2021/523 and simplifying reporting requirements

    (COM(2025)0084 – C10‑0036/2025 – 2025/0040(COD))

    (Ordinary legislative procedure: first reading)

    The European Parliament,

    – having regard to the Commission proposal to Parliament and the Council (COM(2025)0084),

    – having regard to Article 294(2) and Articles 172 and 173, Article 175, third paragraph, Article 182(1), Article 188, second paragraph, and Articles 183 and 194 of the Treaty on the Functioning of the European Union, pursuant to which the Commission submitted the proposal to Parliament (C10‑0036/2025),

    – having regard to Article 294(3) of the Treaty on the Functioning of the European Union,

    – having regard to the opinion of the European Economic and Social Committee of 29 April 2025[1],

    – after consulting the Committee of the Regions,

    – having regard to Rule 60 of its Rules of Procedure,

    – having regard to the joint deliberations of the Committee on Budgets and the Committee on Economic and Monetary Affairs under Rule 59 of the Rules of Procedure,

    – having regard to the opinions of the Committee on Industry, Research and Energy and of the Committee on Transport and Tourism,

    – having regard to the report of the Committee on Budgets and the Committee on Economic and Monetary Affairs (A10-0117/2025),

    1. Adopts its position at first reading hereinafter set out;

    2. Calls on the Commission to refer the matter to Parliament again if it replaces, substantially amends or intends to substantially amend its proposal;

    3. Instructs its President to forward its position to the Council, the Commission and the national parliaments.

     

    Amendment  1

    AMENDMENTS BY THE EUROPEAN PARLIAMENT[*]

    to the Commission proposal

    ———————————————————

     

    2025/0040 (COD)

    Proposal for a

    REGULATION OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL

    amending Regulations (EU) 2015/1017, (EU) 2021/523, (EU) 2021/695 and (EU) 2021/1153 as regards increasing the efficiency of the EU guarantee under Regulation (EU) 2021/523 and simplifying reporting requirements

    THE EUROPEAN PARLIAMENT AND THE COUNCIL OF THE EUROPEAN UNION,

    Having regard to the Treaty on the Functioning of the European Union, and in particular Article 172 and Article 173, Article 175, third paragraph, Article 182(1), Article 188, second paragraph, Article 183 and Article 194 thereof,

    Having regard to the proposal from the European Commission,

    After transmission of the draft legislative act to the national parliaments,

    Having regard to the opinion of the European Economic and Social Committee of 29 April 2025[2],

    After consulting the Committee of the Regions▌,

    Acting in accordance with the ordinary legislative procedure,

    Whereas:

    (1) The Union faces massive financing needs to deliver on its objectives in the areas of innovation, the green and digital transition, and social investment and skills, while a complex backdrop affecting the Union’s competitiveness and industrial base characterised by changing global dynamics, slow economic growth, accelerated climate change and environmental degradation, technological competition and rising geopolitical tensions needs to be addressed. In that context, enhancing the Union’s autonomy, in particular in the area of energy, by supporting investments that strengthen a renewable-based and clean energy system, is essential to reduce dependencies and safeguard economic and political stability.

    (1a) Additionality and the leveraging effect of the EU guarantee are the foundation of both the EFSI and the InvestEU Programme, enabling especially the scaling up of new and innovative technologies and companies as well as de-risking investment for private investors. It is necessary for the European Parliament to have better oversight over the InvestEU Programme to ensure that the EU guarantee is used in accordance with the programme’s objectives, such as fostering sustainable growth and competitiveness, with genuine additionality compared to private investors.

    (2) The Draghi report assesses the combined additional investment needs in Europe at EUR 750-800 billion per year by 2030, with EUR 450 billion needed for the energy transition alone. This includes a substantial amount for the green and digital transition. Ensuring sufficient public and private investment is critical to boost productivity growth and achieve Union’s goals, leverage private investments with the objective to decarbonise industry, accelerate the production, storage and deployment of clean energy and electrification, strengthen interconnections and grids, advance sustainable and circular business models, foster sustainable building renovation, develop clean tech manufacturing as well as digital technologies and their diffusion across economic sectors.

    (2a) Europe is experiencing an acute housing crisis which consists in two market failures: a shortage of affordable and social housing, and a failure to bridge the energy efficiency gap, with 46 million Europeans living in energy poverty. According to an analysis by the EIB Group, an estimated annual investment of EUR 300 to 400 billion is needed for construction and renovation only. In that regard, the Commission is planning to present a first-ever European Affordable Housing Plan and is partnering with the EIB Group, national promotional banks and international financial institutions to develop a European investment platform for affordable and sustainable housing. Increasing the amount available under the social investment and skills policy window would allow greater support from InvestEU for that key priority. In particular, it is necessary for the Commission and implementing partners to enhance the visibility and accessibility of financing instruments in relation to housing. This would contribute to the implementation of the European Pillar of Social Rights.

    (2b) In the light of Russia’s war of aggression against Ukraine, increased national and European spending is required to enhance European defence capabilities and to support the European Defence Technological and Industrial Base (EDTIB). On 19 March 2025, the Commission and the High Representative of the Union for Foreign Affairs and Security Policy presented a White Paper for European Defence –Readiness 2030 containing a plan to significantly step up Europe’s spending on security and defence. InvestEU enables financing and investment operations to develop the Union defence industry and military mobility, including financial support to small and medium-sized enterprises (SMEs) and mid-caps. Increasing the amount available under the relevant windows would allow greater support from InvestEU for this key priority. In particular, it is necessary for the Commission and implementing partners to enhance the visibility and accessibility of financing instruments for SMEs, mid-caps, and start-ups in the defence supply chain.

    (2c) In 2024, the Commission launched, together with the European Investment Fund, an export credit guarantee facility under InvestEU with a view to encouraging Union SMEs to strengthen economic ties with Ukraine and revitalise trade, thereby contributing to Ukraine’s economic recovery and improving the competitiveness of SMEs. It is important that as many European export credit agencies as possible participate in this facility.

    (2d) The Letta and Draghi reports underline the importance of well-functioning transport networks and services to ensure a transition towards a green economy while strengthening the Union’s competitiveness. In that regard, massive strategic investments are needed to complete missing links and to modernise transport infrastructure, where major gaps exist in public and private financing.

    (3) The InvestEU Fund is the main EU-level tool to leverage public and private funding to support a broad range of Union policy priorities. Through its comprehensive network of implementing partners, including the European Investment Bank (EIB), the European Investment Fund (EIF), other international financial institutions and national promotional banks and institutions, the InvestEU Fund is delivering much-needed financing through its risk-sharing capacity. The InvestEU interim evaluation highlighted that budgetary guarantees are inherently efficient for the EU budget and confirmed that the programme is well on track to mobilise investment, with a notable expected impact on the real economy. However, approvals of financing and investment operation under InvestEU were heavily frontloaded, and as a result, if no action is taken to address the issue, new approvals for some financial products may cease after 2025.

    (4) The financial capacity of InvestEU Fund should be increased and used even more efficiently in combination with resources that will become available under the European Fund for Strategic Investments (EFSI) and other legacy instruments (CEF Debt Instrument and InnovFin Debt Facility) implemented by the EIB Group. These combinations potentially reduce the budget revenues from legacy instruments. However, they would also create the possibility for an increased volume of guarantee cover to be provided for strategic investments in key Union priority areas for an additional investment of around EUR 25 billion that can be expected to be mobilised and by leading to an increased diversification of risks and thus not substantially increasing the risks for the Union budget.

    (5) With the EUR 4,5 billion increase of the EU guarantee underpinned by ▌additional reflows of EUR 1,8 billion, and the efficiency measures implemented by combining the capacities of the legacy instruments with the InvestEU Fund, it is expected that around EUR 70 billion in additional investment could be mobilised. The financial contribution of the EIB Group should be proportionally adjusted to the share of the increased EU guarantee allocated to them. The indicative distribution of the EU guarantee between the four policy windows should be increased proportionally to the increase of the EU guarantee.

    (5a) InvestEU advisory services play an important role in the development of a pipeline of projects. Those advisory services are particularly useful in complex areas, such as affordable social housing and defence. It would therefore be appropriate to use EUR 200 million in reflows to increase the amount made available for such services. Furthermore, it is necessary to enhance the interaction between the various components of the InvestEU Programme, in particular between the InvestEU Advisory Hub and the InvestEU Portal.

    (5b) The Commission estimates the amount of provisioning required to cover future life-time losses from the operations supported under the InvestEU Fund with a 95 % confidence level of the value at risk. Taking into account the positive experience with the InvestEU Programme to date and in order to maximise budgetary efficiency while preserving a suitable level of risk management, it would be appropriate for the Commission to assess whether to reduce that level to 90 %, which would be in line with risk-related methodologies in Union external policies and would enable a high volume of financing and investment operations in support of the Union’s strategic priorities.

    (6) In order to enhance the attractiveness of the Member State compartment under the InvestEU Fund, it should be made possible for Member States to contribute also in a fully funded manner through an InvestEU financial instrument in addition to the existing option of contributing to the EU guarantee. The support from InvestEU financial instrument should, to the extent possible, be implemented following the same principles as those of the EU guarantee. Through the InvestEU financial instrument, non-euro Member States could benefit from the InvestEU programme financially more efficiently in their own currency. The InvestEU financial instrument should also provide a further incentive for responsibly increasing the risk appetite of the implementing partners thereby contributing to the crowding-in of private capital.

    (6a) It is possible to combine amounts allocated to the Member State compartment with resources under the EU compartment in a layered structure to achieve a better risk coverage, in particular with a first loss tranche covered by national resources. Member States should further explore that possibility to mobilise more investments in strategic areas. To ensure coherence with the objectives of the InvestEU Programme, such combinations should respect the principles of EU value-added, fair competition, and the integrity of the internal market, and should support cross-border cooperation where relevant.

    (7) In line with an overall objective of simplification so as to alleviate the administrative burden for final recipients, financial intermediaries and implementing partners, reporting requirements, including those relating to key performance and monitoring indicators, should be reduced, where appropriate, in particular those that affect small businesses and small-size operations. Without prejudice to the definition of an SME for the purposes of other Union acts and any future programmes and funds, the application of the definition of an SME for the purposes of the InvestEU Programme should be adjusted to remove complexities to the extent possible, taking account of the possibility for implementing partners to request information on the ownership structure of SMEs for the purpose of calculating the headcount. In that regard, and as noted in Recital 14 of Commission Recommendation 2003/361/EC[3], enterprises should be permitted to use solemn declarations to certify specific characteristics relevant to their SME status, such as the autonomy of their ownership structures. Specific attention should be paid to social economy enterprises and micro finance institutions.

    (7a) It is appropriate for the Commission to take further non-legislative simplification measures in order to complement this amending Regulation, such as reducing the frequency of progress reports to be submitted by implementing partners. However, it is important that such measures do not compromise the effectiveness of auditing and monitoring mechanisms necessary to ensure alignment with the Union’s policy objectives.

    (7b) It is important that State aid procedures applicable to operations supported under the InvestEU Fund be proportionate, predictable, and streamlined. In that context, it is also important that the Commission explore all available means to simplify and accelerate State aid assessments. This could include making greater use of the principle of market conformity. Furthermore, it is necessary that, where appropriate, the Commission provide timely guidance and further clarify and simplify the application of State aid rules to national financial instruments.

    (8) The frequency and scope of reports should also be reduced for the InvestEU programme and its predecessor, the EFSI programme.

    (9) For the Commission’s accounting, implementing partners should provide for combinations audited financial statements in line with Article 212(4) of the Financial Regulation, clearly delineating the amounts related to the different legal basis.

    (10) Regulations (EU) 2015/1017, (EU) 2021/695 and (EU) 2021/1153 should be amended to allow for combinations of support under those Regulations and the EU guarantee under this Regulation.

    (10a) On 18 April 2019, the Commission declared that ‘without prejudice to the prerogatives of the Council in the implementation of the Stability and Growth Pact (SGP), one-off contributions by Member States, either by a Member State or by national promotional banks classified in the general government sector or acting on behalf of a Member State, into thematic or multi-country investment platforms should in principle qualify as one-off measures within the meaning of Articles 5(1) and 9(1) of Council Regulation (EC) No 1466/97 (13) and Article 3(4) of Council Regulation (EC) No 1467/97 (14). In addition, without prejudice to the prerogatives of the Council in the implementation of the SGP, the Commission will consider to what extent the same treatment as for the EFSI in the context of the Commission communication on flexibility can be applied to the InvestEU Programme as the successor instrument to the EFSI with regard to one-off contributions provided by Member States in cash to finance an additional amount of the EU guarantee for the purposes of the Member State compartment’. Since then, the economic governance framework has changed. In light of this, Member State contributions should still be considered as one-off measures.

    (11) Since the objectives of this Regulation, namely to address Union-wide and Member State specific market failures and the investment gap within the Union, to accelerate the Union’s green and digital transition, enhance its competitiveness and strengthen its industrial base cannot be sufficiently achieved by the Member States, but can be better achieved at Union level, the Union may adopt measures in accordance with the principle of subsidiarity as set out in Article 5 of the Treaty on European Union. In accordance with the principle of proportionality as set out in that Article, this Regulation does not go beyond what is necessary to achieve those objectives.

    (11a) In order to support the European Parliament in exercising its institutional role in overseeing Union funds and ensuring alignment with agreed policy objectives, the independent final evaluation report on the InvestEU Programme referred to in Article 29(3) of Regulation (EU) 2021/523 should assess the effectiveness and impact of the derogations introduced by this amending Regulation, in particular their role in facilitating access to finance for target groups such as SMEs. It should also consider the overall functioning of the InvestEU Programme in the light of the principles of transparency, accountability and performance monitoring, including an examination of the relevance of financial thresholds applicable to SMEs in the light of economic developments.

    (11b) With a view to reducing administrative complexity and legal uncertainty, the independent final evaluation report on the InvestEU Programme referred to in Article 29(3) of Regulation (EU) 2021/523 should also take into account any regulatory adjustments arising from the projected legislative proposal on a small mid-cap enterprise category. Due attention should be given to the effectiveness of measures aimed at facilitating enterprise development,

     

    HAVE ADOPTED THIS REGULATION:

    Article 1

    Amendments to Regulation (EU) 2021/523 [InvestEU Regulation]

    Regulation (EU) 2021/523 is amended as follows:

    (1) In Article 1, the first paragraph is replaced by the following:

    ‘This Regulation establishes the InvestEU Fund, which shall provide for an EU guarantee and an InvestEU financial instrument to support financing and investment operations carried out by the implementing partners that contribute to objectives of the Union’s internal policies.’;

    (2) Article 2 is amended as follows:

    (a) points (3), (4) and (5) are replaced by the following:

    ‘(3) ‘policy window’ means a targeted area for support by the EU guarantee or the InvestEU financial instrument as laid down in Article 8(1);’

    (4) ‘compartment’ means a part of the support provided under the InvestEU Fund defined in terms of the origin of the resources backing it;’

    (5) ‘blending operation’ means, under the EU compartment, an operation supported by the Union budget that combines non-repayable forms of support, repayable forms of support, or both, from the Union budget with repayable forms of support from development or other public finance institutions, or from commercial finance institutions and investors; for the purposes of this definition, Union programmes financed from sources other than the Union budget, such as the EU ETS Innovation Fund, may be assimilated to Union programmes financed by the Union budget;’;

    (b) point (8) is replaced by the following:

    ‘(8) ‘contribution agreement’ means a legal instrument whereby the Commission and one or more Member States specify the conditions for the implementation of the contribution under the Member State compartment, as laid down in Articles 10 and 10a, respectively;’;

    (c) points (10) and (11) are replaced by the following:

    ‘(10) ‘financing and investment operations’ or ‘financing or investment operations’ means operations to provide finance directly or indirectly to final recipients through financial products:

    (a) in the context of the EU guarantee, carried out by an implementing partner in its own name, provided by the implementing partner in accordance with its internal rules, policies and procedures and accounted for in the implementing partner’s financial statements or, where applicable, disclosed in the notes to those financial statements;

    (b) in the context of the InvestEU financial instrument, carried out by the implementing partner in its own name or in its own name but on behalf of the Commission, as applicable;

    (11) ‘funds under shared management’ means funds that provide for the possibility of allocating a portion of those funds to the provisioning for a budgetary guarantee or to a financial instrument under the Member State compartment of the InvestEU Fund, namely the European Regional Development Fund (ERDF) and the Cohesion Fund established by Regulation (EU) 2021/1058 of the European Parliament and of the Council[4], the European Social Fund Plus (ESF+) established by Regulation (EU) 2021/1057 of the European Parliament and of the Council[5] (the ‘ESF+ Regulation for 2021-2027’), the European Maritime, Fisheries and Aquaculture Fund (EMFAF) established by Regulation (EU) 2021/1139 of the European Parliament and of the Council[6] and the European Agriculture Fund for Rural Development (EAFRD) established by Regulation (EU) 2021/2115 of the European Parliament and of the Council[7] (the ‘CAP Strategic Plans Regulation’);’;

    (d)  point 12 is replaced by the following:

    ‘(12) ‘guarantee agreement’ means a legal instrument whereby the Commission and an implementing partner specify the conditions for proposing financing and investment operations in order for them to be granted the benefit of the EU guarantee and/or of the InvestEU financial instrument, for providing the EU guarantee or support through the InvestEU financial instrument for those operations and for implementing them in accordance with this Regulation;’;

    (e) point 21 is replaced by the following:

    ‘(21) ‘small and medium-sized enterprise’ (‘SME’) means (a) in case of financial products not conferring advantage in State aid terms, an enterprise which, according to its last annual or consolidated accounts, employs an average number of employees during the financial year of less than 250 and which has an annual turnover not exceeding EUR 50 million and where information relating to the autonomy of its ownership structure for the purpose of calculating those thresholds may be made by way of a solemn declaration by the enterprise, or (b) in case of other types of financial products, a micro, small or medium-sized enterprise within the meaning of the Annex to Commission Recommendation 2003/361/EC[8] or as otherwise defined in the guarantee agreement;’;

    (f) the following point 24 is added:

    ‘(24) ‘InvestEU financial instrument’ means a measure defined in Article 2, point (30), of the Financial Regulation to be implemented under the Member State compartment of the InvestEU Fund.’;

    (3) Article 4 is amended as follows:

    (a) paragraph 1 is amended as follows:

    (i) in the first subparagraph, the first sentence is replaced by the following:

    ‘The EU guarantee for the purposes of the EU compartment referred to in point (a) of Article 9(1) shall be EUR 30 652 310 073 in current prices.’;

    (ii) the second subparagraph is replaced by the following:

    ‘An additional amount of the EU guarantee may be provided for the purposes of the Member State compartment referred to in point (b) of Article 9(1) of this Regulation, subject to the allocation by Member States, pursuant to Article 14 of Regulation (EU) 2021/1060 of the European Parliament and of the Council[9] (the ‘Common Provisions Regulation for 2021-2027’) and Article 81 of the CAP Strategic Plans Regulation, of the corresponding amounts.’;

    (b) in paragraph 2, the second subparagraph is replaced by the following:

    ‘An amount of EUR 15 827 310 073 in current prices of the amount referred to in the first subparagraph of paragraph 1 of this Article shall be allocated for the objectives referred to in Article 3(2).’;

    (ba) paragraph 3 is replaced by the following:

    ‘3.  The financial envelope for the implementation of the measures provided for in Chapters VI and VII shall be EUR 630 000 000 in current prices.’

    (4) in Article 6(1), the first sentence is replaced by the following:

    ‘The EU guarantee and the InvestEU financial instrument shall be implemented in indirect management with the bodies referred to in points (c)(ii), (c)(iii), (c)(v) and (c)(vi) of Article 62(1) of the Financial Regulation.’;

    (5) Article 7 is amended as follows:

    (a) The title is replaced by the following:

    ‘Combinations’

    (b) paragraph 1 is replaced by the following:

    ‘Support from the EU guarantee under this Regulation, Union support provided through the financial instruments established by the programmes in the programming period 2014-2020 and Union support from the EU guarantee established by Regulation (EU) 2015/1017 may be combined to support financial products or portfolios implemented or to be implemented by the EIB or the EIF under this Regulation.’;

    (c) paragraph 4 is replaced by the following:

    ‘Support from the EU guarantee under this Regulation, Union support provided through the guarantee under the financial instruments established by the programmes in the programming period 2014-2020 and released from the operations approved under these instruments and Union support provided through the EU guarantee established by Regulation (EU) 2015/1017 and released from operations approved under that EU guarantee may be combined to support financial products or portfolios containing exclusively financing and investment operations eligible under this Regulation, implemented or to be implemented by the EIB or the EIF under this Regulation.’;

    (d) the following paragraphs 5, 6 and 7 are added:

    ‘5. By derogation from Article 212(3), second subparagraph of the Financial Regulation, the released guarantee under the financial instruments established by the programmes in the programming period 2014-2020 may be used for covering financing and investment operations eligible under this Regulation for the purpose of the combination referred to in paragraph 4.

    6. By derogation from Article 216(4), point (a) of the Financial Regulation, the provisioning corresponding to the released guarantee under the Union support from the EU guarantee established by Regulation (EU) 2015/1017  may not be taken into account for the purpose of operations  referred to in Article 216(4) of the Financial Regulation and may be used for covering financing and investment operations eligible under this Regulation for the purpose of the combination referred to in paragraph 4.

    7. The release of the guarantee under the financial instruments established by the programmes in the programming period 2014-2020, the transfer of corresponding assets from fiduciary accounts to Common Provisioning Fund and the release of the guarantee under the Union support from the EU guarantee established by Regulation (EU) 2015/1017 referred to in paragraph 4 shall take place by an amendment of the relevant agreements signed between the Commission and the EIB or the EIF. 

    The conditions of the use of the released guarantees referred to in the first subparagraph, to cover financing and investment operations eligible under this Regulation, and where relevant, the transfer of corresponding assets from fiduciary accounts to the Common Provisioning Fund, shall be set out in the guarantee agreement referred to in Article 17.

    The terms and conditions of the financial products referred to in paragraphs 1 and 4 of this Article and of the portfolios concerned, including the respective pro rata shares of losses, revenues, repayments and recoveries or the respective non pro rata shares in accordance with the second subparagraph of paragraph 3, shall be set out in the guarantee agreement referred to in Article 17.’;

    (6) In Article 8(8), the second subparagraph is replaced by the following:

    ‘The Commission, together with implementing partners, shall seek to ensure that the part of the EU guarantee under the EU compartment used for the sustainable infrastructure policy window is distributed with the aim of achieving a balance between the different areas referred to in point (a) of paragraph 1.’;

    (7) In Article 9(1), point (b) is replaced by the following:

    ‘(b) the Member State compartment shall address specific market failures or suboptimal investment situations in one or several regions or Member States to deliver the policy objectives of the contributing funds under shared management or of the additional amount provided by a Member State under  Article 4(1), third subparagraph, or under Article 10a(1), second subparagraph, in particular to strengthen economic, social and territorial cohesion in the Union by addressing imbalances between its regions.’;

    (8) Article 10 is amended as follows:

    (a) the title is replaced by the following:

    ‘Specific provisions applicable to the EU Guarantee implemented under the Member State compartment’;

    (b) in paragraph 2, the fourth subparagraph is replaced by the following:

    ‘The Member State and the Commission shall conclude a contribution agreement or an amendment to it following the Commission Decision approving the Partnership Agreement pursuant to the Common Provisions Regulation for 2021-2027 or the CAP Strategic Plan under the CAP Strategic Plans Regulation or simultaneously to the Commission Decision amending a programme in accordance with the  Common Provisions Regulation for 2021-2027 or a CAP Strategic Plan in accordance with the provisions on the amendment to the CAP Strategic Plan laid down in the CAP Strategic Plans Regulation.’;

    (c) in paragraph 3, point (b) is replaced by the following:

    ‘(b) the Member State strategy, consisting of the type of financing, the target leverage, the geographical coverage, including regional coverage if necessary, types of projects, the investment period and, where applicable, the categories of final recipients and of eligible intermediaries;’;

    (9) The following Article 10a is inserted:

    ‘Article 10a

    Specific provisions applicable to the InvestEU financial instrument implemented under the Member State compartment

    1. A Member State may contribute amounts from the funds under shared management to the Member State compartment of the InvestEU Fund in view of deploying them through the InvestEU financial instrument.

    Member States may also provide additional amounts for the purposes of the InvestEU financial instrument. Such amounts shall constitute an external assigned revenue in accordance with Article 21(5), second sentence of the Financial Regulation.

    Amounts allocated by a Member State on a voluntary basis pursuant to the first and second subparagraph shall be used for supporting financing and investment operations in the Member State concerned. Those amounts shall be used to contribute to the achievement of the policy objectives specified in the Partnership Agreement referred to in Article 11(1)(a) of the Common Provisions Regulation for 2021-2027, in the programmes or in the CAP Strategic Plan which contribute to the InvestEU Programme, in order to implement relevant measures set out in the recovery and resilience plans in accordance with Regulation (EU) 2021/241 or, in other cases, for the purposes laid down in the contribution agreement, depending on the origin of the amount contributed.

    2.  Contribution to the InvestEU financial instrument shall be subject to the conclusion of a contribution agreement between a Member State and the Commission, which for the contributions from funds under shared management shall be done in accordance with Article 10(2), fourth subparagraph.

    Two or more Member States may conclude a joint contribution agreement with the Commission.

    3. The contribution agreement shall at least contain the amount of the contribution by the Member State and the currency of the financing and investment operations, provisions on the Union remuneration for the InvestEU financial instrument, the elements set out in points (b) to (e) and (g) of Article 10(3) and the treatment of resources generated by or attributable to the amounts contributed to the InvestEU financial instrument.

    4. The contribution agreements shall be implemented through guarantee agreements concluded in accordance with Article 10(4), first subparagraph.

    Where no guarantee agreement has been concluded within 12 months from the conclusion of the contribution agreement, the contribution agreement shall be terminated or prolonged by mutual agreement. Where the amount of a contribution agreement has not been fully committed under one or more guarantee agreements within 12 months from the conclusion of the contribution agreement, that amount shall be amended accordingly. The unused amount of a contribution from funds under shared management delivered through the InvestEU Programme shall be re-used in accordance with the respective Regulations. The unused amount of a contribution by a Member State under paragraph 1, second subparagraph, of this Article shall be paid back to the Member State.

    Where a guarantee agreement has not been duly implemented within the period specified in Article 14(6) of the Common Provisions Regulation for 2021-2027 or Article 81(6) of the CAP Strategic Plans Regulation, or, in the case of a guarantee agreement related to amounts provided in accordance with paragraph 1, second subparagraph, of this Article, in the relevant contribution agreement, the contribution agreement shall be amended. The unused amounts allocated by Member States pursuant to the provisions on the use of the funds under shared management delivered through the InvestEU Programme shall be re-used in accordance with the respective Regulations. The unused amount of an InvestEU financial instrument attributable to the contribution by a Member State under paragraph 1, second subparagraph, of this Article shall be paid back to the Member State.

    Resources generated by or attributable to the amounts contributed to the InvestEU financial instrument pursuant to the provisions on the use of the funds under shared management delivered through the InvestEU Programme shall be re-used in accordance with the respective Regulations. The resources generated by or attributable to the amounts contributed to the InvestEU financial instrument under paragraph 1, second subparagraph, of this Article shall be paid back to the Member State.

    5. Contracts implementing the InvestEU financial instrument between the implementing partner and the final recipient or the financial intermediary or other entity referred to in Article 16(1), point (a), shall be signed by 31 December 2028.’;

    (9a) In Article 11(1), point (d)(i) is replaced by the following:

    ‘(i) be allocated an amount of up to EUR 450 000 000 from the financial envelope referred to in Article 4(3) for the advisory initiatives referred to in Article 25 and the operational tasks referred to in point (ii) of this point;’;

    (10) the title of Chapter IV is replaced by the following:

    ‘EU guarantee and InvestEU financial instrument’;

    (11) in Article 13(4), the first two sentences are replaced by the following:

    ‘75 % of the EU guarantee under the EU compartment as referred to in the first subparagraph of Article 4(1), amounting to EUR 22 989 232 555, shall be granted to the EIB Group. The EIB Group shall provide an aggregate financial contribution amounting to EUR 5 747 308 139.’;

    (12) Article 16 is amended as follows:

    (a) in paragraph 1, the second subparagraph is replaced by the following:

    ‘The InvestEU financial instrument may be used to provide funding to the implementing partners for the types of financing referred to in point (a) of the first subparagraph provided by the implementing partners.

    In order to be covered by the EU guarantee or the InvestEU financial instrument, the financing referred to in the first and second subparagraph shall be granted, acquired or issued for the benefit of financing and investment operations referred to in Article 14(1), where the financing by the implementing partner was granted in accordance with a financing agreement or transaction signed or entered into by the implementing partner after the signature of the guarantee agreement and that has not expired or been cancelled.’;

    (b) paragraph 2 is replaced by the following:

    ‘Financing and investment operations through funds or other intermediate structures shall be supported by the EU guarantee or the InvestEU financial instrument in accordance with the provisions laid down in the investment guidelines, as applicable, even if such structures invest a minority of their invested amounts outside the Union and in third countries referred to Article 14(2) or invest a minority of their invested amounts into assets other than those eligible under this Regulation.’;

    (13) Article 17 is amended as follows:

    (a) in paragraph 1, the first subparagraph is replaced by the following:

    ‘The Commission shall conclude a guarantee agreement with each implementing partner on the granting of the EU guarantee up to an amount to be determined by the Commission or on providing support under the InvestEU financial instrument.’;

    (b) paragraph 2 is amended as follows:

    (i) point (c) is replaced by the following:

    ‘(c)  detailed rules on the provision of the EU guarantee or support under the InvestEU financial instrument in accordance with Article 19, including on the coverage of financing and investment operations or portfolios of specific types of instruments and the respective events that trigger possible calls on the EU guarantee or the use of the InvestEU financial instrument;’;

    (ii) point (f) is replaced by the following:

    ‘(f) the commitment of the implementing partner to accept the decisions by the Commission and the Investment Committee as regards the use of the EU guarantee or of the InvestEU financial instrument for the benefit of a proposed financing or investment operation, without prejudice to the decision-making of the implementing partner in respect of the proposed financing or investment operation without the EU guarantee or the InvestEU financial instrument;’;

    (iii) points (h) and (i) are replaced by the following:

    ‘(h)  financial and operational reporting and monitoring of the financing and investment operations under the EU guarantee and the InvestEU financial instrument;

    (i) key performance indicators, in particular as regards the use of the EU guarantee and the InvestEU financial instrument, the fulfilment of the objectives and criteria laid down in Articles 3, 8 and 14, and the mobilisation of private capital;’;

    (ba) the following paragraph is added:

    ‘5a. The Commission shall, upon request, provide to the European Parliament and the Council the names of the implementing partners party to the guarantee agreements and the main content of those agreements, having due regard to the legitimate interest of undertakings in the protection of their business secrets.’;

    (14) Article 18 is amended as follows:

    (a) the title is replaced by the following:

    ‘Requirements for the use of the EU guarantee and the InvestEU financial instrument’;

    (b) paragraph 1 is replaced by the following:

    ‘1.  The granting of the EU guarantee and the support from the InvestEU financial instrument shall be subject to the entry into force of the guarantee agreement with the relevant implementing partner.’;

    (c) paragraph 2 is replaced by the following:

    ‘Financing and investment operations shall be covered by the EU guarantee or be supported through the InvestEU financial instrument only where they fulfil the criteria laid down in this Regulation and, if applicable, in the relevant investment guidelines, and where the Investment Committee has concluded that those operations fulfil the requirements for benefiting from the EU guarantee or the InvestEU financial instrument. The implementing partners shall remain responsible for ensuring that the financing and investment operations comply with this Regulation and the relevant investment guidelines.’;

    (d) paragraph 3 is amended as follows:

    (i) the first sentence is replaced by the following:

    ‘No administrative costs or fees related to the implementation of financing and investment operations under the EU guarantee or the InvestEU financial instrument shall be due to the implementing partner by the Commission unless the nature of the policy objectives targeted by the financial product to be implemented and the affordability for the targeted final recipients or the type of financing provided allow the implementing partner to duly justify to the Commission the need for an exception.’

    (ii) the following second subparagraph is added:

    ‘Notwithstanding the first subparagraph, implementing partners are entitled to appropriate fees in relation to the management of fiduciary accounts relating to the InvestEU financial instrument.’

    (e) paragraph 4 is replaced by the following:

    ‘In addition, the implementing partner may use the EU guarantee or the InvestEU financial instrument to meet the relevant share of any recovery costs in accordance with Article 17(4), unless those costs have been deducted from recovery proceeds.’;

    (15) Article 19 is amended as follows:

    (a) the title is replaced by the following:

    ‘Coverage and terms of the EU guarantee and of the InvestEU financial instrument’;

    (b) paragraph 1 is amended as follows:

    (i) the second sentence of the first subparagraph is replaced by the following:

    ‘The remuneration for the EU guarantee or for the InvestEU financial instrument may be reduced in the duly justified cases referred to in Article 13(2).’;

    (ii) the second subparagraph is replaced by the following:

    ‘The implementing partner shall have appropriate exposure at its own risk to financing and investment operations supported by the EU guarantee or by the InvestEU financial instrument, unless exceptionally the policy objectives targeted by the financial product to be implemented are of such nature that the implementing partner could not reasonably contribute its own risk-bearing capacity to it.’;

    (c) in paragraph 2, first subparagraph, point (a), the introductory sentence is replaced by the following:

    ‘for debt products referred to in point (a) of the first subparagraph of Article 16(1):’;

    (d) the following paragraph 2a is inserted:

    ‘2a.  The InvestEU financial instrument shall cover:

    (a)  for debt products consisting of guarantees and counter-guarantees referred to in point (a) of the first subparagraph of Article 16(1):

    (i) the principal and all interest and amounts due to the implementing partner but not received by it in accordance with the terms of the financing operations prior to the event of default;

    (ii) restructuring losses;

    (iii) losses arising from fluctuations of currencies other than the euro in markets where possibilities for long-term hedging are limited;

    (b)  for other eligible types of financing referred to in point (a) of the first subparagraph of Article 16(1): the amounts invested or lent by the implementing partner;

    For the purposes of point (a)(i) of the first subparagraph, for subordinated debt a deferral, reduction or required exit shall be considered to be an event of default.

    The Invest EU financial instrument shall cover the entire exposure of the Union with respect to the relevant financing and investment operations.’;

    (16) in Article 22, paragraph 1 is replaced by the following:

    ‘A scoreboard of indicators (the ‘Scoreboard’) shall be established to ensure that the Investment Committee is able to carry out an independent, transparent and harmonised assessment of requests for the use of the EU guarantee or, as applicable, the InvestEU financial instrument for financing and investment operations proposed by implementing partners.’;

    (17) in Article 23, paragraph 2 is replaced by the following:

    ‘EIB financing and investment operations that fall within the scope of this Regulation shall not be covered by the EU guarantee or benefit from the InvestEU financial instrument where the Commission delivers an unfavourable opinion within the framework of the procedure provided for in Article 19 of the EIB Statute.’;

    (18) Article 24 is amended as follows:

    (a) in paragraph 1, first subparagraph is amended as follows:

    (i) point (a) is replaced by the following:

    ‘(a)  examine the proposals for financing and investment operations submitted by implementing partners for coverage under the EU guarantee or for support from the InvestEU financial instrument that have passed the policy check referred to in Article 23(1) of this Regulation or that have received a favourable opinion within the framework of the procedure provided for in Article 19 of the EIB Statute;’;

    (ii) point (c) is replaced by the following:

    ‘(c)  check whether the financing and investment operations that would benefit from the support under the EU guarantee or the InvestEU financial instrument comply with all relevant requirements.’;

    (b) in paragraph 4, second subparagraph, the last sentence is replaced by the following:

    ‘Any project assessment conducted by an implementing partner shall not be binding on the Investment Committee for the purposes of granting a financing or investment operation coverage by the EU guarantee or support from the InvestEU financial instrument.’;

    (c) paragraph 5 is amended as follows:

    (i) in the second subparagraph, the first sentence is replaced by the following:

    ‘Conclusions of the Investment Committee approving the coverage of the EU guarantee or support from the InvestEU financial instrument for a financing or investment operation shall be publicly accessible and shall include the rationale for the approval and information on the operation, in particular its description, the identity of the promoters or financial intermediaries, and the objectives of the operation.’;

    (ii) in the fifth subparagraph, the second sentence is replaced by the following:

    ‘That submission shall include any decisions rejecting the use of the EU guarantee or support from the InvestEU financial instrument.’;

    (d) in paragraph 6, the first sentence is replaced by the following:

    ‘Where the Investment Committee is requested to approve the use of the EU guarantee or support from the InvestEU financial instrument for a financing or investment operation that is a facility, programme or structure which has underlying sub-projects, that approval shall comprise those underlying sub-projects unless the Investment Committee decides to retain the right to approve them separately.’;

    (19) in Article 25(2), point (c) is replaced by the following:

    ‘(c)  where appropriate, assist project promoters in developing their projects so that they fulfil the objectives set out in Articles 3 and 8 and the eligibility criteria set out in Article 14, and facilitate the development of among others important projects of common European interest and aggregators for small-sized projects, including through investment platforms as referred to in point (f) of this paragraph, provided that such assistance does not prejudge the conclusions of the Investment Committee with respect to the coverage of the EU guarantee or the InvestEU financial instrument with respect to such projects;’;

    (20) Article 28 is amended as follows:

    (a) in paragraph 2, the following second subparagraph is added:

    ‘Implementing partners shall be exempt from reporting on key performance and monitoring indicators laid down in Annex III, except those in points 1, 2, 3.1, 3.2, 4.1, 5.2, 6.3 and 7.2, as far as financing or investments operations benefiting final recipients receiving financing or investment supported by the EU guarantee or by the InvestEU financial instrument from an implementing partner or a financial intermediary not exceeding EUR 300 000 are concerned.’;

    (b) paragraphs 3 and 4 are replaced by the following:

    ‘3. The Commission shall report on the implementation of the InvestEU Programme in accordance with Articles 241 and 250 of the Financial Regulation. In accordance with Article 41(5) of the Financial Regulation, the annual report shall provide information on the level of implementation of the Programme with respect to its objectives and performance indicators. For that purpose, each implementing partner shall provide on an annual basis the information necessary to allow the Commission to comply with its reporting obligations, including information on the operation of the EU guarantee or the InvestEU financial instrument.’

    4. Once a year, each implementing partner shall submit a report to the Commission on the financing and investment operations covered by this Regulation, broken down by EU compartment and Member State compartment, as appropriate. Each implementing partner shall also submit information on the Member State compartment to the Member State whose compartment it implements. The report shall include an assessment of compliance with the requirements on the use of the EU guarantee and the Invest EU financial instrument and with the key performance indicators laid down in Annex III to this Regulation. The report shall also include operational, statistical, financial and accounting data on each financing or investment operation and an estimation of expected cash flows, at the level of compartment, policy window and the InvestEU Fund. The report may also include information on barriers to investment encountered when carrying out financing and investment operations covered by this Regulation. The reports shall contain the information the implementing partners have to provide under point (a) of Article 158(1) of the Financial Regulation.’;

    (21) Article 35 is amended as follows:

    (a) the title is replaced by the following:

    ‘Transitional and other provisions’;

    (b) paragraphs 1 and 2 are replaced by the following:

    ‘1. By way of derogation from Article 212(3), first and fourth subparagraph, of the Financial Regulation, any revenues, repayments and recoveries from financial instruments established by programmes referred to in Annex IV to this Regulation may be used for the provisioning of the EU guarantee or the implementation of the measures provided for in Chapters VI and VII under this Regulation, taking into account the relevant provisions concerning the budget laid down in the Public Sector Loan Facility Regulation for 2021-2027.

    2. By way of derogation from Article 216(4), point (a), of the Financial Regulation, any surplus of provisions for the EU guarantee established by Regulation (EU) 2015/1017 may be used for the provisioning of the EU guarantee or the implementation of the measures provided for in Chapters VI and VII under this Regulation, taking into account the relevant provisions concerning the budget laid down in the Public Sector Loan Facility Regulation for 2021-2027.

    ▌ By way of derogation from Article 214(4)(d) of the Financial Regulation, any revenues from the EU guarantee established by Regulation (EU) 2015/1017 received in 2027 may be used for the provisioning of the EU guarantee or the implementation of the measures provided for in Chapters VI and VII under this Regulation.’;

    (22) Annex I is replaced by the following:

    ‘ANNEX I

    AMOUNTS OF EU GUARANTEE PER SPECIFIC OBJECTIVE

    The indicative distribution referred to in the fourth subparagraph of Article 4(2) towards financial and investment operations shall be as follows:

    (a) up to EUR 11 589 045 902 for objectives referred to in point (a) of Article 3(2);

    (b) up to EUR 7 707 119 112 for objectives referred to in point (b) of Article 3(2);

    (c) up to EUR 8 095 166 498 for objectives referred to in point (c) of Article 3(2);

    (d) up to EUR 3 260 978 561 for objectives referred to in point (d) of Article 3(2).’;

    (23) In Annex III, the following two paragraphs are added in point 1 below point 1.4:

    ‘By way of derogation from Article 2(40) of the Financial Regulation, when determining the leverage and multiplier effect for financing and investment operations providing performance guarantees, the amount of risk coverage shall be assimilated to the amount of reimbursable financing.

    By way of derogation from Article 222(3) of the Financial Regulation, the financing and investment operations providing performance guarantees shall not be required to achieve multiplier effect.’;

    (24) In Annex V, the following paragraph is added:

    ‘This Annex also applies to the InvestEU financial instrument.’

    Article 2

    Amendments to Regulation 2015/1017 [EFSI Regulation]

    Regulation (EU) 2015/1017 is amended as follows:

    (1) Article 11a is amended as follows:

    (a) the title is replaced by the following:

    ‘Combinations’.

    (b) the following second subparagraph is inserted:

    ‘The EU guarantee may be granted to cover financing and investment operations eligible under Regulation (EU) 2021/523 of the European Parliament and of the Council for the purposes of combinations referred to in Article 7(4) of that Regulation and it may cover losses in relation to financing and investment operations covered by the combined support.’;

    (2) Article 16 is amended as follows:

    (a) paragraph 1 is replaced by the following:

    ‘1. The EIB, in cooperation with the EIF where appropriate, shall submit once a year a report to the Commission on EIB financing and investment operations covered by this Regulation. The report shall include an assessment of compliance with the requirements on the use of the EU guarantee and with the key performance indicators referred to in Article 4(2), point (f)(iv). The report shall also include statistical, financial and accounting data on each EIB financing and investment operation and on an aggregated basis.’;

    (b) paragraph 2 is deleted;

    (c) in paragraph 3, the following subparagraph is added:

    ‘In relation to the combinations referred to in Article 11a, the EIB and the EIF, respectively, shall provide the Commission annually with the financial statements in accordance with Article 212(4) of the Financial Regulation. Such financial statements shall include accounting data about the support provided by the EU guarantee under this Regulation clearly delineated from the support provided by the EU guarantee under Regulation (EU) 2021/523 of the European Parliament and of the Council.’;

    (3) in Article 22(1), the fifth subparagraph is deleted.

    Article 3

    Amendments to Regulation (EU) 2021/1153 [CEF]

    In Article 29 of Regulation (EU) 2021/1153, the following paragraph is added:

    ‘5. The guarantee supported by the Union budget and provided by the EIB through the CEF Debt Instrument established under Regulation (EU) 1316/2013 may be granted to cover financing and investment operations eligible under Regulation (EU) 2021/523 of the European Parliament and of the Council(*) for the purpose of combination  referred to in Article 7 of that Regulation and may cover losses in relation to the  financing and investment operations covered by the combined support.’;

     

    (*) Regulation (EU) 2021/523 of the European Parliament and of the Council of 24 March 2021 establishing the InvestEU Programme and amending Regulation (EU) 2015/1017 (OJ L 107, 26.3.2021, p. 30, ELI: http://data.europa.eu/eli/reg/2021/523/oj)’.

    Article 4

    Amendments to Regulation (EU) 2021/695 [Horizon Europe]

    In Article 57 of Regulation (EU) 2021/695, the following paragraph is added:

    ‘3. The  guarantee supported by the Union budget and provided by the EIB  through the InnovFin Debt Facility established under Regulations (EU) 1290/2013 and 1291/2013 may be granted to cover financing and investment operations eligible under Regulation (EU) 2021/523 of the European Parliament and of the Council(*) for the purpose of combination  referred to in Article 7 and may cover losses of the financial product containing the  financing and investment operations and covered by the combined support.’:

     

    (*) Regulation (EU) 2021/523 of the European Parliament and of the Council of 24 March 2021 establishing the InvestEU Programme and amending Regulation (EU) 2015/1017 (OJ L 107, 26.3.2021, p. 30, ELI: http://data.europa.eu/eli/reg/2021/523/oj)’.

    Article 5

    Entry into force

    This Regulation shall enter into force on the day following that of its publication in the Official Journal of the European Union.

    This Regulation shall be binding in its entirety and directly applicable in all Member States.

    Done at Brussels,

    For the European Parliament For the Council

    The President The President

    MIL OSI Europe News –

  • MIL-OSI USA: WATCH: Ahead of Vote, Pressley Implores House to Reject Big, Ugly Bill That Rips Food & Healthcare from Millions

    Source: United States House of Representatives – Congresswoman Ayanna Pressley (MA-07)

    “Let’s be clear: Republicans are ramming this bill through Congress so they can move us closer to their dark, dystopian vision of Donald Trump’s America.”

    “Behind each number and statistic is a family. A parent, a child, an elder, a loved one. And as much as JD Vance may call them ‘immaterial,’ these are people’s lives and livelihoods.”

    WASHINGTON – At a press conference on Capitol Hill today, Congresswoman Ayanna Pressley (MA-07) implored the House of Representatives to reject Trump and Republicans’ Big, Ugly Bill that would rip healthcare and food assistance away from millions of people, including in Massachusetts, and push reproductive healthcare further out of reach nationwide, just to pay for more tax breaks for billionaires.

    The press conference, which was hosted by Congresswoman Delia Ramirez, came as the House debates the bill and ahead of a possible vote on it today.

    The full transcript of her remarks as delivered is available below, and the video is available here.

    Transcript: Ahead of Vote, Pressley Implores House to Reject Big, Ugly Bill That Rips Food & Healthcare from Millions
    U.S. Capitol
    July 2, 2025

    You know, a moment ago there were some hecklers here, and they were cheering on every time we invoked Donald Trump and JD Vance’s name. They were cheering them on and clapping for them. 

    I wish they were still here so that I could tell them “I will pray for you.” And myself and my colleagues are fighting hard to defend you.

    You have been deeply betrayed. The only thing that the occupant of the Oval Office, this fascist dictator, white supremacist-in-chief is doing is equal opportunity harm.

    Nothing will save anyone from the harm that is coming if this bill becomes law. 

    Rural communities, yeah, Meemaw, papaw, jumbug. Urban communities, big momma, all our cousins.

    Everyone will feel this, in urban, rural and suburban communities. And I want them to know that we are fighting hard to defend everyone from this harm, because this will be a tsunami of hurt. 

    Thank you to my sister-in-service Congresswoman Delia Ramirez for convening us today and to our colleagues for speaking out in this somber moment.

    I’m reminded often of the words of Coretta Scott King who said that “starving a child is violence. Neglecting schoolchildren is violence. Ignoring medical need is violence. Contempt for those living in poverty is violence.”

    And let me be clear: Republicans’ big, ugly, betrayal of a bill is violence.

    It is an assault. It is an assault on working families and on every person who calls this nation home.

    It would rip healthcare away from over 17 million people.

    It would deny food to hungry elders and babies. 

    It would destroy Medicaid for babies in the NICU and parents with chronic illnesses, gut services like prenatal care and cancer screenings at Planned Parenthood, and push critical reproductive healthcare even further out of reach.

    And for what?

    To give billionaires even more money they do not need.

    Republicans are so desperate to line the pockets of their ultra-wealthy donors that they are willing to make millions of people, millions of their own constituents, poorer, sicker, hungrier and more vulnerable—and strip them of basic bodily autonomy.

    This is an anti-freedom agenda supposedly wrapped in the flag and so-called faith.

    It is shameful, and they are shameless.

    At this point, I’m running out of words to describe the harm of this bill.

    It is cruel. It is callous. And it is completely clueless.

    Clueless about the lives of everyday people—real people with real struggles and real needs.

    Republicans claim to be the party of God. But I don’t know what God these people serve. It must be god with a lowercase “g.”

    Because as someone who grew up at the knee of my grandfather of a Baptist preacher of a small store-front church, who spent my summers in the south of vacation Bible school, I have yet to find a Psalm that says “Thou shalt make people poorer, hungrier, and sicker.” 

    But that’s exactly what this bill would do if it becomes law.

    And we must do everything in our power to ensure that it does not.

    In addition to slashing resources that help people make ends meet, this bill would also shamefully fund Donald Trump’s unlawful mass deportation agenda—pouring more money into ICE to terrorize our immigrant neighbors.

    The cruelty is the point.

    Let’s be clear: Republicans are ramming this bill through Congress so they can move us closer to their dark, dystopian vision of Donald Trump’s America.

    An America where billionaires thrive and everyone else suffers.

    An America where families are criminalized for needing food or healthcare.

    Where patients are denied the care they need.

    And where the poor are punished simply for being poor.

    I represent the Massachusetts 7th, one of the most vibrant, diverse, and dynamic districts in the country, but also one of the most unequal.

    A district home to one of the highest concentration of community health centers, which provide life-saving care to 1 in 3 of my constituents.

    A district where hospitals have already closed, and where others would be at risk of closure if this bill becomes law.

    Across the Commonwealth, over 320,000 people would lose health insurance. At least 103,000 could lose food assistance.

    Over 11,000 manufacturing & energy jobs would be cut, ACA premiums would skyrocket, and energy bills would go up.

    Behind each number and statistic is a family. A parent, a child, an elder, a loved one. 

    And as much as JD Vance may call them “immaterial” – these are people’s lives and livelihoods.

    Republicans in both chambers rushed this bill through under the cloak of night. They’re hiding, like they always do, because they still have some semblance of shame.

    Enough to run and hide. But they still have time to reverse course.

    God grant me the serenity to accept the things I cannot change, the courage to change the things I can, and the wisdom to know the difference. 

    You can change this.  This legislation is NOT inevitable.

    And we will continue to resist, to obstruct, and to fight with every tool to stop it in its tracks.

    Because as our late movement sibling, the great Cecile Richards once said before she transitioned, “the question will be asked when everything was at stake for the country, what did you do? And the only acceptable answer will be everything that I could.”

    Congresswoman Pressley has been an outspoken critic of this harmful legislation since its inception.

    MIL OSI USA News –

  • MIL-OSI USA: To the Spacemobile!

    Source: NASA

    In this Nov. 1, 1964, image, three members of NASA’s Lewis Research Center’s (now NASA’s Glenn Research Center in Cleveland) Educational Services Office pose with one of the center’s Spacemobile space science demonstration units. Once the NACA (National Advisory Committee for Aeronautics) became NASA, public outreach became one of the agency’s core tenets. Lewis, which had previously been a closed laboratory, began hosting open houses and elaborate space fairs in the early 1960s.
    In addition, the center initiated educational programs that worked with local schools and a robust speaker’s bureau that explained NASA activities to the community. One aspect of these efforts was the Spacemobile Program. These vehicles included a delegated speaker, exhibits, models, and other resources. The Spacemobiles, which made forays across the Midwest, were extremely active throughout the 1960s.
    Image credit: NASA

    MIL OSI USA News –

  • MIL-OSI USA: To the Spacemobile!

    Source: NASA

    In this Nov. 1, 1964, image, three members of NASA’s Lewis Research Center’s (now NASA’s Glenn Research Center in Cleveland) Educational Services Office pose with one of the center’s Spacemobile space science demonstration units. Once the NACA (National Advisory Committee for Aeronautics) became NASA, public outreach became one of the agency’s core tenets. Lewis, which had previously been a closed laboratory, began hosting open houses and elaborate space fairs in the early 1960s.
    In addition, the center initiated educational programs that worked with local schools and a robust speaker’s bureau that explained NASA activities to the community. One aspect of these efforts was the Spacemobile Program. These vehicles included a delegated speaker, exhibits, models, and other resources. The Spacemobiles, which made forays across the Midwest, were extremely active throughout the 1960s.
    Image credit: NASA

    MIL OSI USA News –

  • MIL-OSI USA: 3 Years of Science: 10 Cosmic Surprises from NASA’s Webb Telescope

    Source: NASA

    Since July 2022, NASA’s James Webb Space Telescope has been unwaveringly focused on our universe. With its unprecedented power to detect and analyze otherwise invisible infrared light, Webb is making observations that were once impossible, changing our view of the cosmos from the most distant galaxies to our own solar system.
    Webb was built with the promise of revolutionizing astronomy, of rewriting the textbooks. And by any measure, it has more than lived up to the hype — exceeding expectations to a degree that scientists had not dared imagine. Since science operations began, Webb has completed more than 860 scientific programs, with one-quarter of its time dedicated to imaging and three-quarters to spectroscopy. In just three years, it has collected nearly 550 terabytes of data, yielding more than 1,600 research papers, with intriguing results too numerous to list and a host of new questions to answer.
    Here are just a few noteworthy examples.

    Webb was specifically designed to observe “cosmic dawn,” a time during the first billion years of the universe when the first stars and galaxies were forming. What we expected to see were a few faint galaxies, hints of what would become the galaxies we see nearby.
    Instead, Webb has revealed surprisingly bright galaxies that developed within 300 million years of the big bang; galaxies with black holes that seem far too massive for their age; and an infant Milky Way-type galaxy that existed when the universe was just 600 million years old. Webb has observed galaxies that already “turned off” and stopped forming stars within a billion years of the big bang, as well as those that developed quickly into modern-looking “grand design” spirals within 1.5 billion years.
    Hundreds of millions of years might not seem quick for a growth spurt, but keep in mind that the universe formed in the big bang roughly 13.8 billion years ago. If you were to cram all of cosmic time into one year, the most distant of these galaxies would have matured within the first couple of weeks, rapidly forming multiple generations of stars and enriching the universe with the elements we see today.

    Webb has revealed a new type of galaxy: a distant population of mysteriously compact, bright, red galaxies dubbed Little Red Dots. What makes Little Red Dots so bright and so red? Are they lit up by dense groupings of unusually bright stars or by gas spiraling into a supermassive black hole, or both? And whatever happened to them? Little Red Dots seem to have appeared in the universe around 600 million years after the big bang (13.2 billion years ago), and rapidly declined in number less than a billion years later. Did they evolve into something else? If so, how? Webb is probing Little Red Dots in more detail to answer these questions.

    How fast is the universe expanding? It’s hard to say because different ways of calculating the current expansion rate yield different results — a dilemma known as the Hubble Tension. Are these differences just a result of measurement errors, or is there something weird going on in the universe? So far, Webb data indicates that the Hubble Tension is not caused by measurement errors. Webb was able to distinguish pulsating stars from nearby stars in a crowded field, ensuring that the measurements weren’t contaminated by extra light. Webb also discovered a distant, gravitationally lensed supernova whose image appears in three different locations and at three different times during its explosion. Calculating the expansion rate based on the brightness of the supernova at these three different times provides an independent check on measurements made using other techniques. Until the matter of the Hubble Tension is settled, Webb will continue measuring different objects and exploring new methods.

    While NASA’s Hubble Space Telescope made the first detection of gases in the atmosphere of a gas giant exoplanet (a planet outside our solar system), Webb has taken studies to an entirely new level. Webb has revealed a rich cocktail of chemicals, including hydrogen sulfide, ammonia, carbon dioxide, methane, and sulfur dioxide — none of which had been clearly detected in an atmosphere outside our solar system before. Webb has also been able to examine exotic climates of gas giants as never before, detecting flakes of silica “snow” in the skies of the puffy, searing-hot gas giant WASP-17 b, for example, and measuring differences in temperature and cloud cover between the permanent morning and evening skies of WASP-39 b.

    Detecting, let alone analyzing, a thin layer of gas surrounding a small rocky planet is no easy feat, but Webb’s extraordinary ability to measure extremely subtle changes in the brightness of infrared light makes it possible. So far, Webb has been able to rule out significant atmosphere on a number of rocky planets, and has found tantalizing signs of carbon monoxide or carbon dioxide on 55 Cancri e, a lava world that orbits a Sun-like star. With findings like these, Webb is laying the groundwork for NASA’s future Habitable Worlds Observatory, which will be the first mission purpose-built to directly image and search for life on Earth-like planets around Sun-like stars.

    We already knew that galaxies are collections of stars, planets, dust, gas, dark matter, and black holes: cosmic cities where stars form, live, die, and are recycled into the next generation. But we had never been able to see the structure of a galaxy and the interactions between stars and their environment in such detail. Webb’s infrared vision reveals filaments of dust that trace the spiral arms, old star clusters that make up galactic cores, newly forming stars still encased in dense cocoons of glowing dust and gas, and clusters of hot young stars carving enormous cavities in the dust. It also elucidates how stellar winds and explosions actively reshape their galactic homes.

    Brown dwarfs form like stars, but are not dense or hot enough to fuse hydrogen in their cores like stars do. Rogue planets form like other planets, but have been ejected from their system and no longer orbit a star. Webb has spotted hundreds of brown-dwarf-like objects in the Milky Way, and has even detected some candidates in a neighboring galaxy. But some of these objects are so small — just a few times the mass of Jupiter — that it is hard to figure out how they formed. Are they free-floating gas giant planets instead? What is the least amount of material needed to form a brown dwarf or a star? We’re not sure yet, but thanks to three years of Webb observations, we now know there is a continuum of objects from planets to brown dwarfs to stars.

    When a star like our Sun dies, it swells up to form a red giant large enough to engulf nearby planets. It then sheds its outer layers, leaving behind a super-hot core known as a white dwarf. Is there a safe distance that planets can survive this process? Webb might have found some planets orbiting white dwarfs. If these candidates are confirmed, it would mean that it is possible for planets to survive the death of their star, remaining in orbit around the slowly cooling stellar ember.

    Among the icy “ocean worlds” of our solar system, Saturn’s moon Enceladus might be the most intriguing. NASA’s Cassini mission first detected water plumes coming out of its southern pole. But only Webb could reveal the plume’s true scale as a vast cloud spanning more than 6,000 miles, about 20 times wider than Enceladus itself. This water spreads out into a donut-shaped torus encircling Saturn beyond the rings that are visible in backyard telescopes. While a fraction of the water stays in that ring, the majority of it spreads throughout the Saturnian system, even raining down onto the planet itself. Webb’s unique observations of rings, auroras, clouds, winds, ices, gases, and other materials and phenomena in the solar system are helping us better understand what our cosmic neighborhood is made of and how it has changed over time.

    [embedded content]
    A combination of images and spectra captured by NASA’s James Webb Space Telescope show a giant plume of water jetting out from the south pole of Saturn’s moon Enceladus, creating a donut-shaped ring of water around the planet.Credit: NASA, ESA, CSA, G. Villanueva (NASA’s Goddard Space Flight Center), A. Pagan (STScI), L. Hustak (STScI)

    In 2024 astronomers discovered an asteroid that, based on preliminary calculations, had a chance of hitting Earth. Such potentially hazardous asteroids become an immediate focus of attention, and Webb was uniquely able to measure the object, which turned out to be the size of a 15-story building. While this particular asteroid is no longer considered a threat to Earth, the study demonstrated Webb’s ability to assess the hazard.
    Webb also provided support for NASA’s Double Asteroid Redirection Test (DART) mission, which deliberately smashed into the Didymos binary asteroid system, showing that a planned impact could deflect an asteroid on a collision course with Earth. Both Webb and Hubble observed the impact, serving witness to the resulting spray of material that was ejected. Webb’s spectroscopic observations of the system confirmed that the composition of the asteroids is probably typical of those that could threaten Earth.
    —-
    In just three years of operations, Webb has brought the distant universe into focus, revealing unexpectedly bright and numerous galaxies. It has unveiled new stars in their dusty cocoons, remains of exploded stars, and skeletons of entire galaxies. It has studied weather on gas giants, and hunted for atmospheres on rocky planets. And it has provided new insights into the residents of our own solar system.
    But this is only the beginning. Engineers estimate that Webb has enough fuel to continue observing for at least 20 more years, giving us the opportunity to answer additional questions, pursue new mysteries, and put together more pieces of the cosmic puzzle.
    For example: What were the very first stars like? Did stars form differently in the early universe? Do we even know how galaxies form? How do stars, dust, and supermassive black holes affect each other? What can merging galaxy clusters tell us about the nature of dark matter? How do collisions, bursts of stellar radiation, and migration of icy pebbles affect planet-forming disks? Can atmospheres survive on rocky worlds orbiting active red dwarf stars? Is Uranus’s moon Ariel an ocean world?
    As with any scientific endeavor, every answer raises more questions, and Webb has shown that its investigative power is unmatched. Demand for observing time on Webb is at an all-time high, greater than any other telescope in history, on the ground or in space. What new findings await?
    By Dr. Macarena Garcia Marin and Margaret W. Carruthers, Space Telescope Science Institute, Baltimore, Maryland

    Laura Betz – laura.e.betz@nasa.govNASA’s Goddard Space Flight Center, Greenbelt, Md.
    Christine Pulliam – cpulliam@stsci.eduSpace Telescope Science Institute, Baltimore, Md.

    More Webb News
    More Webb Images
    Webb Science Themes
    Webb Mission Page

    What is the Webb Telescope?
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    MIL OSI USA News –

  • MIL-OSI USA: 3 Years of Science: 10 Cosmic Surprises from NASA’s Webb Telescope

    Source: NASA

    Since July 2022, NASA’s James Webb Space Telescope has been unwaveringly focused on our universe. With its unprecedented power to detect and analyze otherwise invisible infrared light, Webb is making observations that were once impossible, changing our view of the cosmos from the most distant galaxies to our own solar system.
    Webb was built with the promise of revolutionizing astronomy, of rewriting the textbooks. And by any measure, it has more than lived up to the hype — exceeding expectations to a degree that scientists had not dared imagine. Since science operations began, Webb has completed more than 860 scientific programs, with one-quarter of its time dedicated to imaging and three-quarters to spectroscopy. In just three years, it has collected nearly 550 terabytes of data, yielding more than 1,600 research papers, with intriguing results too numerous to list and a host of new questions to answer.
    Here are just a few noteworthy examples.

    Webb was specifically designed to observe “cosmic dawn,” a time during the first billion years of the universe when the first stars and galaxies were forming. What we expected to see were a few faint galaxies, hints of what would become the galaxies we see nearby.
    Instead, Webb has revealed surprisingly bright galaxies that developed within 300 million years of the big bang; galaxies with black holes that seem far too massive for their age; and an infant Milky Way-type galaxy that existed when the universe was just 600 million years old. Webb has observed galaxies that already “turned off” and stopped forming stars within a billion years of the big bang, as well as those that developed quickly into modern-looking “grand design” spirals within 1.5 billion years.
    Hundreds of millions of years might not seem quick for a growth spurt, but keep in mind that the universe formed in the big bang roughly 13.8 billion years ago. If you were to cram all of cosmic time into one year, the most distant of these galaxies would have matured within the first couple of weeks, rapidly forming multiple generations of stars and enriching the universe with the elements we see today.

    Webb has revealed a new type of galaxy: a distant population of mysteriously compact, bright, red galaxies dubbed Little Red Dots. What makes Little Red Dots so bright and so red? Are they lit up by dense groupings of unusually bright stars or by gas spiraling into a supermassive black hole, or both? And whatever happened to them? Little Red Dots seem to have appeared in the universe around 600 million years after the big bang (13.2 billion years ago), and rapidly declined in number less than a billion years later. Did they evolve into something else? If so, how? Webb is probing Little Red Dots in more detail to answer these questions.

    How fast is the universe expanding? It’s hard to say because different ways of calculating the current expansion rate yield different results — a dilemma known as the Hubble Tension. Are these differences just a result of measurement errors, or is there something weird going on in the universe? So far, Webb data indicates that the Hubble Tension is not caused by measurement errors. Webb was able to distinguish pulsating stars from nearby stars in a crowded field, ensuring that the measurements weren’t contaminated by extra light. Webb also discovered a distant, gravitationally lensed supernova whose image appears in three different locations and at three different times during its explosion. Calculating the expansion rate based on the brightness of the supernova at these three different times provides an independent check on measurements made using other techniques. Until the matter of the Hubble Tension is settled, Webb will continue measuring different objects and exploring new methods.

    While NASA’s Hubble Space Telescope made the first detection of gases in the atmosphere of a gas giant exoplanet (a planet outside our solar system), Webb has taken studies to an entirely new level. Webb has revealed a rich cocktail of chemicals, including hydrogen sulfide, ammonia, carbon dioxide, methane, and sulfur dioxide — none of which had been clearly detected in an atmosphere outside our solar system before. Webb has also been able to examine exotic climates of gas giants as never before, detecting flakes of silica “snow” in the skies of the puffy, searing-hot gas giant WASP-17 b, for example, and measuring differences in temperature and cloud cover between the permanent morning and evening skies of WASP-39 b.

    Detecting, let alone analyzing, a thin layer of gas surrounding a small rocky planet is no easy feat, but Webb’s extraordinary ability to measure extremely subtle changes in the brightness of infrared light makes it possible. So far, Webb has been able to rule out significant atmosphere on a number of rocky planets, and has found tantalizing signs of carbon monoxide or carbon dioxide on 55 Cancri e, a lava world that orbits a Sun-like star. With findings like these, Webb is laying the groundwork for NASA’s future Habitable Worlds Observatory, which will be the first mission purpose-built to directly image and search for life on Earth-like planets around Sun-like stars.

    We already knew that galaxies are collections of stars, planets, dust, gas, dark matter, and black holes: cosmic cities where stars form, live, die, and are recycled into the next generation. But we had never been able to see the structure of a galaxy and the interactions between stars and their environment in such detail. Webb’s infrared vision reveals filaments of dust that trace the spiral arms, old star clusters that make up galactic cores, newly forming stars still encased in dense cocoons of glowing dust and gas, and clusters of hot young stars carving enormous cavities in the dust. It also elucidates how stellar winds and explosions actively reshape their galactic homes.

    Brown dwarfs form like stars, but are not dense or hot enough to fuse hydrogen in their cores like stars do. Rogue planets form like other planets, but have been ejected from their system and no longer orbit a star. Webb has spotted hundreds of brown-dwarf-like objects in the Milky Way, and has even detected some candidates in a neighboring galaxy. But some of these objects are so small — just a few times the mass of Jupiter — that it is hard to figure out how they formed. Are they free-floating gas giant planets instead? What is the least amount of material needed to form a brown dwarf or a star? We’re not sure yet, but thanks to three years of Webb observations, we now know there is a continuum of objects from planets to brown dwarfs to stars.

    When a star like our Sun dies, it swells up to form a red giant large enough to engulf nearby planets. It then sheds its outer layers, leaving behind a super-hot core known as a white dwarf. Is there a safe distance that planets can survive this process? Webb might have found some planets orbiting white dwarfs. If these candidates are confirmed, it would mean that it is possible for planets to survive the death of their star, remaining in orbit around the slowly cooling stellar ember.

    Among the icy “ocean worlds” of our solar system, Saturn’s moon Enceladus might be the most intriguing. NASA’s Cassini mission first detected water plumes coming out of its southern pole. But only Webb could reveal the plume’s true scale as a vast cloud spanning more than 6,000 miles, about 20 times wider than Enceladus itself. This water spreads out into a donut-shaped torus encircling Saturn beyond the rings that are visible in backyard telescopes. While a fraction of the water stays in that ring, the majority of it spreads throughout the Saturnian system, even raining down onto the planet itself. Webb’s unique observations of rings, auroras, clouds, winds, ices, gases, and other materials and phenomena in the solar system are helping us better understand what our cosmic neighborhood is made of and how it has changed over time.

    [embedded content]
    A combination of images and spectra captured by NASA’s James Webb Space Telescope show a giant plume of water jetting out from the south pole of Saturn’s moon Enceladus, creating a donut-shaped ring of water around the planet.Credit: NASA, ESA, CSA, G. Villanueva (NASA’s Goddard Space Flight Center), A. Pagan (STScI), L. Hustak (STScI)

    In 2024 astronomers discovered an asteroid that, based on preliminary calculations, had a chance of hitting Earth. Such potentially hazardous asteroids become an immediate focus of attention, and Webb was uniquely able to measure the object, which turned out to be the size of a 15-story building. While this particular asteroid is no longer considered a threat to Earth, the study demonstrated Webb’s ability to assess the hazard.
    Webb also provided support for NASA’s Double Asteroid Redirection Test (DART) mission, which deliberately smashed into the Didymos binary asteroid system, showing that a planned impact could deflect an asteroid on a collision course with Earth. Both Webb and Hubble observed the impact, serving witness to the resulting spray of material that was ejected. Webb’s spectroscopic observations of the system confirmed that the composition of the asteroids is probably typical of those that could threaten Earth.
    —-
    In just three years of operations, Webb has brought the distant universe into focus, revealing unexpectedly bright and numerous galaxies. It has unveiled new stars in their dusty cocoons, remains of exploded stars, and skeletons of entire galaxies. It has studied weather on gas giants, and hunted for atmospheres on rocky planets. And it has provided new insights into the residents of our own solar system.
    But this is only the beginning. Engineers estimate that Webb has enough fuel to continue observing for at least 20 more years, giving us the opportunity to answer additional questions, pursue new mysteries, and put together more pieces of the cosmic puzzle.
    For example: What were the very first stars like? Did stars form differently in the early universe? Do we even know how galaxies form? How do stars, dust, and supermassive black holes affect each other? What can merging galaxy clusters tell us about the nature of dark matter? How do collisions, bursts of stellar radiation, and migration of icy pebbles affect planet-forming disks? Can atmospheres survive on rocky worlds orbiting active red dwarf stars? Is Uranus’s moon Ariel an ocean world?
    As with any scientific endeavor, every answer raises more questions, and Webb has shown that its investigative power is unmatched. Demand for observing time on Webb is at an all-time high, greater than any other telescope in history, on the ground or in space. What new findings await?
    By Dr. Macarena Garcia Marin and Margaret W. Carruthers, Space Telescope Science Institute, Baltimore, Maryland

    Laura Betz – laura.e.betz@nasa.govNASA’s Goddard Space Flight Center, Greenbelt, Md.
    Christine Pulliam – cpulliam@stsci.eduSpace Telescope Science Institute, Baltimore, Md.

    More Webb News
    More Webb Images
    Webb Science Themes
    Webb Mission Page

    What is the Webb Telescope?
    SpacePlace for Kids
    En Español
    Ciencia de la NASA
    NASA en español 
    Space Place para niños

    MIL OSI USA News –