Category: Pandemic

  • MIL-OSI Europe: Written question – Possible withdrawal from the World Health Organization – E-000607/2025

    Source: European Parliament

    Question for written answer  E-000607/2025/rev.1
    to the Commission
    Rule 144
    Gerald Hauser (PfE)

    There is a close strategic partnership between the EU and the World Health Organization (WHO). In 2022-2023 alone, the Commission paid the WHO USD 468 million, not including the Member States’ contributions. The Commission also negotiated – on behalf of all the Member States – the amendments to the International Health Regulations and the planned WHO pandemic treaty. In addition, health data on all EU citizens collected within the European Health Data Space is to be passed on to the WHO. The influence that the private financial interests of multi-billionaires wield over the WHO is also a source of criticism. On 20 January 2025, the US left the WHO. The reason given for this was the WHO’s poor management of the COVID-19 pandemic and lack of independence. The US stopped all payments, withdrew its government staff, terminated cooperation and cancelled the amendments to the Health Regulations and the WHO pandemic treaty.

    • 1.Is the Commission also intending to end cooperation with the WHO?
    • 2.With regard to the pandemic treaty, will the Comission negotiations on behalf of the Member States be stopped?
    • 3.Is the Commission intending to accept the offer of future cooperation with the US as the world’s leading medical and scientific power?

    Submitted: 11.2.2025

    Last updated: 28 February 2025

    MIL OSI Europe News

  • MIL-OSI United Kingdom: Publication of Wildlife Crime in Scotland 2023

    Source: Scottish Government

    An Official Statistics in Development publication for Scotland

    The latest statistics on wildlife crime in Scotland were published today by the Chief Statistician for Scotland. Recorded wildlife crime offences were down by 23%, from 286 offences in 2021-22 to 220 offences in 2022-23, bringing recorded wildlife crime back close to pre-pandemic levels.

    These statistics also contain data on Crown Office and Procurator Fiscal Service cases, criminal proceedings and scientific evidence and intelligence. Key results from the report include:

    • Over half of all recorded wildlife crimes were categorised as either offences involving birds (31%) or fish poaching (25%).
    • The Police Scotland divisions with the highest recorded wildlife offences in 2022-23 were the Highlands and Islands (35), the Lothians and Scottish Borders (32) and the North East (31).
    • The Crown Office and Procurator Fiscal Service received 63 cases in 2022-23 relating to wildlife crime (which may include more than 1 offence per case), with fish poaching being the most common category (30 cases). Of these 63 cases, 37 (59%) received an alternative to prosecution (e.g. fine), 15 (24%) were prosecuted, and 11 (17%) resulted in no action.
    • Criminal proceedings statistics for 2022-23 show that 36 people were proceeded against for wildlife crimes – a substantial increase from 2021-22 (20 people) and 2020-21 (2 people) which had been impacted by court closures and reduced capacities.

    Background

    When a wildlife crime is suspected, the first step is for it to be reported to the police (or detected by the police), and then recorded. Further steps may include investigation to assess whether the recorded crime should be part of a case submitted to the Crown Office and Procurator Fiscal Service (COPFS) and then a decision on whether there is sufficient evidence for the case to be prosecuted. Ultimately a court case may result in a conviction or acquittal. All these stages may be supported by relevant scientific evidence and intelligence.

    This report presents statistics relating to 2022-23 for the various stages described above. Although these sets of statistics are related, direct comparisons between them cannot be made due to differences in data sources, timing and the bases on which statistics were collated. For example, several recorded crimes may be included in one COPFS case (involving multiple sources of scientific evidence), and subsequent criminal proceedings may occur in a different year.

    Official statistics are produced in accordance with the Code of Practice for Statistics

    MIL OSI United Kingdom

  • MIL-OSI Africa: African Development Bank, Pandemic Fund sign agreement to leverage resources for pandemic preparedness

    Source: Africa Press Organisation – English (2) – Report:

    ABIDJAN, Ivory Coast, February 28, 2025/APO Group/ —

    The African Development Bank (www.AfDB.org) Group has signed an agreement to become an implementing entity of the Pandemic Fund (https://apo-opa.co/4h0TQu3). This enables the Bank to coordinate financing of the Fund’s approved projects in Africa, as well as to participate in a call for proposals for financing investments scheduled to launch next month.

    The financial procedures agreement, signed in January with the World Bank Group (the International Bank for Reconstruction and Development acted as a trustee for the Pandemic Fund), qualifies the African Development Bank to participate in a share of $500 million in Fund Secretariat financing for proposals for pandemic-related programs, projects and policies, with a focus on low and middle-income countries.

    The Pandemic Fund is a partnership among donor countries, co-investors, foundations and civil society organizations hosted by the World Bank. The World Health Organization acts as the technical lead. The Fund assists countries and regions to strengthen their health systems and increase their investments, enabling them to boost pandemic prevention, preparedness and response capacities. 

    “There is growing demand from African countries for support to overcome gaps in national health infrastructure exposed by the Covid-19 pandemic and other health crises. As a Pandemic Fund implementing entity, the African Development Bank is capitalizing on our experience combining infrastructure financing with complementary support to improve the quality of life for the people of Africa,” said Dr. Beth Dunford, Bank Vice President for Agriculture, Human and Social Development.

    The Fund’s call for proposals will be in phases: the first phase will be open to single and multi-country proposals in March 2025; the second phase launches in June 2025 for regional proposals. 

    To date, the Pandemic Fund has financed two calls for proposals and approved 47 projects impacting 75 countries in six regions across the globe. On average, 43 percent of its resources have been allocated for countries in sub-Saharan Africa, the region with the highest demand for Pandemic Fund grants. Under the second call for proposals, more than half of the funds awarded went to sub-Saharan Africa.

    As an implementing entity, the African Development Bank will also play an oversight role, providing implementation support to beneficiary implementing organisations, as well as providing financial and progress reports to the Fund’s Governing Board.

    The Bank’s collaboration with the Pandemic Fund aligns with its Strategy for Quality Health Infrastructure in Africa that seeks to enhance healthcare infrastructure and improve health outcomes in Africa.

    In June 2023, the Bank approved approximately $124 million in financing for healthcare access expansion in Morocco. The country’s “Program to Support Inclusive Access to Healthcare Infrastructure” inboosts the country’s specialized healthcare services in women and children’s centers, supports building and equipping hospitals, and equips remote sites with telemedicine and teleconsultation facilities.

    Dunford says continued collaborating with the Pandemic Fund can help more Africans experience the benefits of strengthened healthcare systems.

    “As Africa’s premier financial institution, we are ready to provide relevant support to beneficiary implementing organisations, the Bank’s regional member countries, and regional economic communities in the Pandemic Fund’s third call for proposals. The Bank will leverage resources from the Fund, alongside our funding instruments, for bigger and better results,” she added.

    The Pandemic Fund was established in September 2022 with the Bank participating as an observer and formally announced two months later at the Group of 20 (G20) meetings in Bali, Indonesia.

    MIL OSI Africa

  • MIL-OSI United Kingdom: Devon taxi driver jailed after overstating annual income by more than £350,000 to fraudulently secure two Covid loans

    Source: United Kingdom – Executive Government & Departments

    Press release

    Devon taxi driver jailed after overstating annual income by more than £350,000 to fraudulently secure two Covid loans

    Bounce Back Loan fraudster transferred the funds to an offshore bank account and a family member

    • Taxi driver Murat Dogantekin secured two £50,000 Bounce Back Loans in 2020 which he was not entitled to 

    • Dogantekin overstated his turnover by hundreds of thousands of pounds, fraudulently applied for two loans when businesses were only allowed one, used the funds for personal expenses and failed to make any repayments 

    • The 50-year-old was jailed for two years and seven months 

    A Devon taxi driver who fraudulently claimed two maximum-value Covid loans by overstating his annual turnover by more than £350,000 has been jailed. 

    Murat Dogantekin secured the Bounce Back Loans worth a combined £100,000 from two separate banks just months into the pandemic, when he was only actually entitled to just over £4,000 under the scheme. 

    He then transferred the funds to a close family member and offshore bank account. 

    The 50-year-old, of Mulligan Drive, Exeter, was sentenced to two years and seven months in prison when he appeared at Exeter Crown Court on Thursday 27 February. 

    Mark Stephens, Chief Investigator at the Insolvency Service, said: 

    Bounce Back Loans were created to support small and medium-sized businesses through the pandemic. They were not designed to be accessed by fraudsters and used as additional personal income paid for at the expense of taxpayers. 

    Murat Dogantekin completely disregarded almost all the rules of the scheme. He significantly overstated his turnover, subsequently receiving far more support than he should have done. He fraudulently obtained two loans when businesses were only entitled to a single loan. 

    To make matters worse, Dogantekin failed to use the money for the benefit of his business, concealing the true nature of his bank transactions with false references. He also did not pay a single penny back before he was declared bankrupt and failed to engage with our investigations. 

    Such a blatant and deliberate misuse of public funds will not be tolerated by the Insolvency Service and we will continue to take action against those who stole from the taxpayer during a national emergency.

    Dogantekin secured two Bounce Back Loans worth £50,000 each from separate banks in May and June 2020. 

    In his applications, Dogantekin stated that his annual turnover was £200,000 and £205,000 for two separate self-employed taxi businesses, both in his own name, although he said the second traded as Ola Taxis. 

    He provided no evidence to support these claims and Insolvency Service investigators discovered that the second business was actually named after one of his clients. This was done in an attempt to distinguish it from his first business and make it appear that he was eligible for a second loan when he was not. 

    Dogantekin had declared earnings of just £16,500 for the tax year ending in April 2020, meaning he overstated his turnover by £388,500 in the combined applications. 

    Had he been honest about his income, he may have been entitled to one loan of just £4,125. 

    His dishonesty meant he received an additional £95,875 he did not deserve. 

    Within four days of receiving the first loan, Dogantekin transferred £49,500 of the £50,000 to a separate bank account. The transactions were marked as “shop purchase”. 

    The following day, £48,000 of that money was moved to an offshore bank account. 

    Dogantekin’s second loan remained in his business account for more than a month before the funds were paid out to a family member and his own personal account within a six-day period. 

    No repayments to the loans were made before Dogantekin was declared bankrupt in November 2021. 

    Dogantekin was interviewed by the Official Receiver Services at the Insolvency Service later that month and provided some limited documentation. 

    He then ignored 11 attempts to contact him and secure specific records during a six-month period. 

    Dogantekin also failed to attend an interview under caution. 

    The Insolvency Service is seeking to recover the fraudulently obtained funds under the Proceeds of Crime Act 2002. 

    Further information 

    Updates to this page

    Published 28 February 2025

    MIL OSI United Kingdom

  • MIL-OSI United Kingdom: Mayor launches public consultation on biggest transformation of Oxford Street in history

    Source: Mayor of London

      

    • Mayor begins consultation on the potential pedestrianisation of Oxford Street and proposals to create a Mayoral Development Corporation (MDC) to super charge regeneration
    • A revitalised Oxford Street would increase visitor numbers, create new jobs, and boost retail and growth for London and the whole UK economy 
    • The MDC would have specific planning powers to deliver a world-leading scheme that works for residents, visitors and businesses
    • Mayor encourages everyone to have their say on these proposals before 2 May 2025

    The Mayor of London, Sadiq Khan, today launched a public consultation on proposals to breathe new life into Oxford Street.

    Oxford Street is an area of critical national economic importance, with an estimated annual contribution to London’s economy of £25bn in 2022. 

    But the area has suffered in recent years for a variety of reasons including the pandemic, the growth of online shopping and out-of-town shopping centres.

    The Mayor’s proposals – working alongside government, businesses and local councils – could include future plans to pedestrianise Oxford Street and transform it into an exciting, green and thriving destination for Londoners and tourists alike.

    The aim is for the street to become the world-leading urban space for shopping, leisure, and outdoor events.

    The public consultation – which is open from 28 February 2025 to 2 May 2025 – is about gathering Londoners’ views on the Mayor’s proposals to create a new Mayoral Development Corporation, which would have the necessary powers to support the transformation of the area, and on the principle of pedestrianisation.

    Londoners are invited to get involved and have their say on the proposals under consideration, which would pave the way for the transformation of Oxford Street through: 

    • creating a beautiful pedestrian-friendly public space to attract shoppers, for exciting events and activities to make Oxford Street a place for all
    • designing with sustainability in mind, to make the area more resilient to the impact of climate change
    • creating a well-designed, high-quality space that showcases the best of London’s talent, assets and opportunities – a place that Londoners feel proud of and those coming to London want to visit, invest in and return to
    • hosting exciting events to showcase and test the potential of a new and more inviting public realm

    These proposals would help to attract more national and international visitors, bringing the world to London and showcasing the best of London to the world, while also acting as a magnet for new customers, new investment and job-creation, driving growth and economic prosperity for decades to come.  

    Mayor of London, Sadiq Khan, said: “Oxford Street has been known as the nation’s high street but the area has suffered in recent years.

    My proposals are designed to unlock the true potential of Oxford Street and deliver a world-class, accessible, clean, avenue. These proposals would help to restore this famous part of the capital and support good businesses, while creating new jobs and boosting growth.

    I encourage everyone to have their say on these proposals, which would transform Oxford Street into a place Londoners and the whole of the country can be proud of as we continue to build a better London for everyone.”

    Councillor Richard Olszewski, Leader of Camden Council, said: “The London-wide and national economic benefits of such a scheme are there to be seen for residents and visitors alike, as are wider benefits for air quality and health and wellbeing. This is a significant development for central London and a new use of powers. We look forward to engaging with the Mayor and other stakeholders on the consultation and continuing to work with them on developing the proposals, including to benefit neighbouring areas like Fitzrovia and Holborn.”

    Dee Corsi, Chief Executive, New West End Company, said: “The launch of the public consultation marks a significant milestone in the journey of the nation’s high street. It is an important step towards unlocking the full potential of Oxford Street and the wider West End. We are ready to work with the Mayor, the Government, Westminster City Council, and the local community to bring this vision to life and drive long-term benefits for London and the UK as a whole.

    “We have long championed the regeneration of Oxford Street, recognising its vital importance to London and the UK economy. With significant private sector investment already driving change, Oxford Street is evolving. It has always been a much-loved destination, attracting Londoners and visitors from around the world. It’s a place where retail, leisure, and culture come together, and with growing demand for high-quality office space, its role as a vibrant commercial hub continues to expand.”

    Karim Fatehi OBE, CEO of the London Chamber of Commerce and Industry, said: “We welcome these ambitious plans to revitalise Oxford Street as one of the world’s foremost shopping destinations by improving the visitor experience and increasing footfall. 

    “This consultation is a great opportunity for businesses to have their say to ensure the proposals work for them, and we urge businesses of all sizes to participate and help shape this exciting transformation to drive tourism and economic growth in the area.”

    Kate Nicholls, Chief Executive of UKHospitality, said: “The exciting plans for Oxford Street would turn it into one of Europe’s biggest plazas. With pubs, bars, cafes and restaurants taking centre stage, we hope we can showcase, on one of the world’s most famous streets, how it’s possible to break down planning and licensing barriers to generate a thriving social scene. This type of hospitality-led regeneration can truly allow Oxford Street to thrive and further enhance London’s offering.”

    John Dickie, CEO of BusinessLDN, said: “Oxford Street is London’s flagship high street and an attraction for visitors from across the country and all over the globe. As a key strategic site that spans borough boundaries, the Mayor has an important role to play in investing in and helping to improve the area for the benefit of Londoners, businesses and visitors. We look forward to engaging with the Mayor as well as Westminster City Council, the London Borough of Camden, New West End Company and other stakeholders to help to make Oxford Street an even more vibrant and attractive place to visit.”

    MIL OSI United Kingdom

  • MIL-OSI United Kingdom: UK’s global science and tech ambitions refreshed under new banner

    Source: United Kingdom – Executive Government & Departments

    Press release

    UK’s global science and tech ambitions refreshed under new banner

    Worldwide team championing UK science and tech partnership as a force for good, to be re-launched as the Science and Technology Network.

    Science and Technology Network launched.

    • Worldwide team championing UK science and tech partnership as a force for good, to be re-launched as the Science and Technology Network
    • Network already has over 130 staff in 65 locations globally, building partnerships around the science and tech innovations set to make us collectively healthier, wealthier, more resilient and secure in support of the Plan for Change
    • Science Minister welcomes Network’s re-launch alongside leaders from across research, academia and business

    The UK’s global team for forging the international collaboration and championing the power of British science and tech expertise to solve some of the world’s most pressing problems– from clean energy to health – will be refreshed under a new banner, as officially unveiled by the Science Minister in Whitehall on Thursday 27 February.

    The Science and Technology Network (STN) will be the new name for the former Science and Innovation Network: a 130-strong team based in 65 locations worldwide, with a mission to forge deeper international partnerships on science and technology, and seek new opportunities for British sci-tech pioneers in support of the Plan for Change.

    The network’s new name reflects the circumstances we now live in, where breakthrough technologies like AI, quantum, and engineering biology hold enormous potential for tackling environmental and social challenges and unlocking economic growth. In a fast-changing global landscape, now more than ever we need to pool the bright talent and big ideas that are needed to harness these emerging technologies for good, at home and abroad.

    Recent announcements like the AI Opportunities Action Plan clearly show the government’s domestic ambitions for harnessing the power of technology to improve people’s lives, but these aspirations are not solely inward-facing. The UK wants to work with international partners to share expertise, unlock investment, and deliver transformational benefits for communities in the UK and around the world.

    UK Science Minister Lord Vallance said:

    Britain is stronger when it works together with others and nowhere is that more true than when it comes to science and technology. Genius is not bound by geography, and by building international ties, we stand the best chance of developing new ideas and breakthroughs to solve the toughest challenges that all societies face.

    The UK has a long track record as a global leader, when it comes to research and innovation. We are uniquely placed to convene international work that brings scientific expertise to bear on improving health, adoption clean sources of energy, and more. It is only right that we put the critically important role of technology, at the centre of those efforts.

    Foreign, Commonwealth and Development Office Minister Catherine West said:

    The UK harnesses cutting-edge technology to tackle the world’s toughest challenges, from the climate crisis to the threat of pandemics.

    With staff based in 65 locations, the newly-named Science and Technology Network will help us forge global partnerships and galvanise scientific expertise, to enhance security and growth around the world.

    Lord Vallance will speak to an audience of researchers, academics and business leaders at the Foreign, Commonwealth & Development Office, this evening – which also marks the Network’s 25th anniversary. He will be joined by FCDO’s Chief Scientific Adviser, Professor Charlotte Watts, as they welcome the Network’s new name and to emphasise the importance of its ongoing work.

    Some examples of STN wins include UK-Danish work in the Arctic that could be crucial to our understanding of climate change, the establishment of the UK-Japan Semiconductors Partnership, and a UK-USA partnership that is bringing the massive potential of quantum technologies to bear in health and life sciences.

    The Network has also supported the delivery of potentially lifesaving research as overseas aid, ranging from work tackling the Zika virus outbreak in Brazil, to a project trying to better forecast devastating typhoons in South-East Asia.

    The Science and Technology Network has 3 objectives:

    • promoting UK science, technology and innovation excellence and leadership globally
    • actively building and facilitating science, technology and innovation collaborations
    • providing insight on science and technology trends and opportunities

    Through its work, the Network aims to build international partnerships that can help seize the opportunities and mitigate the risks arising from critical and emerging technologies, as well as tackling the climate crisis and improving health.

    Sir Mark Walport, Vice President and Foreign Secretary of the Royal Society, said:

    Maintaining the position of the UK as a global leader in science, engineering and technology is essential for the UK’s long-term prosperity and international standing. Furthermore, diplomacy in support of science is at the heart of the development of international policies and collaboration to address issues such as climate change, loss of biodiversity, pandemics and food security. The Science and Technology Network’s team of diplomats and civil servants will play an extremely important role in support of these aims.

    Professor Christopher Smith, UK Research and Innovation’s International Champion, said:

    The rebrand of The Science and Technology Network is a reflection of its evolving role in fostering global research and innovation partnerships.

    The network has been instrumental in strengthening the UK’s position as a world leader in science, and we look forward to continuing our collaboration to drive international research excellence, support innovation-led growth, and tackle global challenges together across all disciplines and sectors.

    Maddalaine Ansell, Director Education, British Council, said:

    International collaboration in science and technology is critical if we are to overcome global challenges. The UK, which is ranked 3rd in the world for producing highly cited research outputs, must be part of the global effort. Playing our full part will also reinforce and further expand the UK’s reputation both for excellence in science and as a force for good in the global community. The Science & Technology Network is an important enabler of UK activity on the global stage, supporting the UK’s scientific community to develop stable and lasting partnerships with peers around the world.

    Jamie Arrowsmith, Director of Universities UK International, said:

    UK universities have a long-standing relationship with the Network, and our members get immense value from their in-country expertise, insight, and intelligence. This rebranding reflects the dynamic and evolving landscape of science and technology, and we believe it will further enhance the network’s ability to drive international collaboration and deliver on global and technological challenges. 

    Universities UK International is committed to fostering a globally collaborative higher education environment where research, science, and technology can thrive. We look forward to continuing to work with the Science and Technology Network to advance these shared goals.

    Beth Thompson, Executive Director Policy and Partnerships, Wellcome, said:

    Science and technology are pillars of the UK’s diplomatic work. We welcome the government’s recognition of the Science and Technology Network’s (STN) newly invigorated and invaluable role, fostering global partnerships that tackle shared challenges, and unlock new opportunities for collaboration.

    The UK has a world-class research sector, but progress is not achieved in isolation – it thrives on international cooperation. We have seen first-hand the value of the Network in helping us build relationships across the globe that are critical to advancing research. The refreshed STN will be instrumental in strengthening these international partnerships, ensuring science and technology continue to deliver a healthier, more prosperous future for the UK and the world.

    DSIT media enquiries

    Email press@dsit.gov.uk

    Monday to Friday, 8:30am to 6pm 020 7215 300

    Updates to this page

    Published 28 February 2025

    MIL OSI United Kingdom

  • MIL-OSI: FRO – Fourth Quarter and Full Year 2024 Results

    Source: GlobeNewswire (MIL-OSI)

    FRONTLINE PLC REPORTS RESULTS FOR THE FOURTH QUARTER ENDED DECEMBER 31, 2024

    Frontline plc (the “Company”, “Frontline,” “we,” “us,” or “our”), today reported unaudited results for the three and twelve months ended December 31, 2024:

    Highlights

    • Profit of $66.7 million, or $0.30 per share for the fourth quarter of 2024.
    • Adjusted profit of $45.1 million, or $0.20 per share for the fourth quarter of 2024.
    • Declared a cash dividend of $0.20 per share for the fourth quarter of 2024.
    • Reported revenues of $425.6 million for the fourth quarter of 2024.
    • Achieved average daily spot time charter equivalent earnings (“TCEs”)1 for VLCCs, Suezmax tankers and LR2/Aframax tankers in the fourth quarter of $35,900, $33,300 and $26,100 per day, respectively.
    • Fully drew down a sale-and-leaseback agreement in an amount of $512.1 million to refinance 10 Suezmax tankers, which generated net cash proceeds of $101.0 million in the fourth quarter of 2024.
    • Sold its oldest Suezmax tanker, built in 2010, for a net sales price of $48.5 million and delivered the vessel to its new owner in October 2024. The transaction generated net cash proceeds of $36.5 million after repayment of existing debt and a gain of $17.9 million in the fourth quarter of 2024.
    • Repaid the remaining $75.0 million outstanding under the $275.0 million senior unsecured revolving credit facility with an affiliate of Hemen Holding Limited, the Company’s largest shareholder (“Hemen”) in the fourth quarter of 2024.
    • Entered into three senior secured credit facilities for a total amount of up to $239.0 million to refinance outstanding debt on three VLCCs and one Suezmax tanker and, in addition, to provide revolving credit capacity in a total amount of up to $91.9 million.

    Lars H. Barstad, Chief Executive Officer of Frontline Management AS, commented:

    “The fourth quarter of 2024 came in unusually soft compared to previous years. Global oil demand was up marginally as the year came to an end, but global seaborne exports slowed in the fourth quarter. During the quarter we saw positive developments in the enforcement of sanctions against Iran and Russia in particular, but we could not escape the fact that these two countries represent a material part of the supply to Asia, at cost to demand for the vessels Frontline operates. For 2025 we have already seen broader sanctions with a wider scope, at the same time as key importers of exposed crude are diversifying away from the mentioned suppliers. Compliant fleet growth for the asset classes we deploy peaked a few years back, making the outlook very constructive as Frontline sail into the new year with our cost-efficient operations and modern fleet.”

    Inger M. Klemp, Chief Financial Officer of Frontline Management AS, added:

    ”In February 2025 we entered into three senior secured credit facilities for a total amount of up to $239.0 million to refinance three existing term loan facilities, with total balloon payments of $142.0 million maturing during 2025, leaving the Company with no debt maturities until the end of 2026 and, in addition, to provide revolving credit capacity in a total amount of up to $91.9 million. Through these new financings we further strengthen our strong liquidity and reduce our borrowing costs and cash break even rates. We continue to focus on maintaining our competitive cost structure, breakeven levels and solid balance sheet to ensure that we are well positioned to generate significant cash flow and create value for our shareholders.”

    Average daily TCEs and estimated cash breakeven rates

    ($ per day) Spot TCE Spot TCE currently contracted % Covered Estimated average daily cash breakeven rates for 2025
      2024 Q4 2024 Q3 2024 Q2 2024 Q1 2024 2023 Q1 2025 2025
    VLCC 43,400 35,900 39,600 49,600 48,100 50,300 43,700 80% 29,200
    Suezmax 41,400 33,300 39,900 45,600 45,800 52,600 35,400 77% 24,000
    LR2 / Aframax 42,300 26,100 36,000 53,100 54,300 46,800 29,700 64% 22,200

    We expect the spot TCEs for the full first quarter of 2025 to be lower than the spot TCEs currently contracted, due to the impact of ballast days during the first quarter of 2025. See Appendix 1 for further details.

    The Board of Directors
    Frontline plc
    Limassol, Cyprus
    February 27, 2025

    Ola Lorentzon – Chairman and Director
    John Fredriksen – Director
    James O’Shaughnessy – Director
    Steen Jakobsen – Director
    Cato Stonex – Director
    Ørjan Svanevik – Director
    Dr. Maria Papakokkinou – Director

    Questions should be directed to:

    Lars H. Barstad: Chief Executive Officer, Frontline Management AS
    +47 23 11 40 00

    Inger M. Klemp: Chief Financial Officer, Frontline Management AS
    +47 23 11 40 00 

    Forward-Looking Statements

    Matters discussed in this report may constitute forward-looking statements. The Private Securities Litigation Reform Act of 1995 provides safe harbor protections for forward-looking statements, which include statements concerning plans, objectives, goals, strategies, future events or performance, and underlying assumptions and other statements, which are other than statements of historical facts.

    Frontline plc and its subsidiaries, or the Company, desires to take advantage of the safe harbor provisions of the Private Securities Litigation Reform Act of 1995 and is including this cautionary statement in connection with this safe harbor legislation. This report and any other written or oral statements made by us or on our behalf may include forward-looking statements, which reflect our current views with respect to future events and financial performance and are not intended to give any assurance as to future results. When used in this document, the words “believe,” “anticipate,” “intend,” “estimate,” “forecast,” “project,” “plan,” “potential,” “will,” “may,” “should,” “expect” and similar expressions, terms or phrases may identify forward-looking statements.

    The forward-looking statements in this report are based upon various assumptions, including without limitation, management’s examination of historical operating trends, data contained in our records and data available from third parties. Although we believe that these assumptions were reasonable when made, because these assumptions are inherently subject to significant uncertainties and contingencies which are difficult or impossible to predict and are beyond our control, we cannot assure you that we will achieve or accomplish these expectations, beliefs or projections. We undertake no obligation to update any forward-looking statements, whether as a result of new information, future events or otherwise.

    In addition to these important factors and matters discussed elsewhere herein, important factors that, in our view, could cause actual results to differ materially from those discussed in the forward-looking statements include:

    • the strength of world economies;
    • fluctuations in currencies and interest rates, including inflationary pressures and central bank policies intended to combat overall inflation and rising interest rates and foreign exchange rates;
    • the impact that any discontinuance, modification or other reform or the establishment of alternative reference rates have on the Company’s floating interest rate debt instruments;
    • general market conditions, including fluctuations in charter hire rates and vessel values;
    • changes in the supply and demand for vessels comparable to ours and the number of newbuildings under construction;
    • the highly cyclical nature of the industry that we operate in;
    • the loss of a large customer or significant business relationship;
    • changes in worldwide oil production and consumption and storage;
    • changes in the Company’s operating expenses, including bunker prices, dry docking, crew costs and insurance costs;
    • planned, pending or recent acquisitions, business strategy and expected capital spending or operating expenses, including dry docking, surveys and upgrades;
    • risks associated with any future vessel construction;
    • our expectations regarding the availability of vessel acquisitions and our ability to complete vessel acquisition transactions as planned;
    • our ability to successfully compete for and enter into new time charters or other employment arrangements for our existing vessels after our current time charters expire and our ability to earn income in the spot market;
    • availability of financing and refinancing, our ability to obtain financing and comply with the restrictions and other covenants in our financing arrangements;
    • availability of skilled crew members and other employees and the related labor costs;
    • work stoppages or other labor disruptions by our employees or the employees of other companies in related industries;
    • compliance with governmental, tax, environmental and safety regulation, any non-compliance with U.S. or European Union regulations;
    • the impact of increasing scrutiny and changing expectations from investors, lenders and other market participants with respect to our ESG policies;
    • Foreign Corrupt Practices Act of 1977 or other applicable regulations relating to bribery;
    • general economic conditions and conditions in the oil industry;
    • effects of new products and new technology in our industry, including the potential for technological innovation to reduce the value of our vessels and charter income derived therefrom;
    • new environmental regulations and restrictions, whether at a global level stipulated by the International Maritime Organization, and/or imposed by regional or national authorities such as the European Union or individual countries;
    • vessel breakdowns and instances of off-hire;
    • the impact of an interruption in or failure of our information technology and communications systems, including the impact of cyber-attacks upon our ability to operate;
    • potential conflicts of interest involving members of our Board of Directors and senior management;
    • the failure of counter parties to fully perform their contracts with us;
    • changes in credit risk with respect to our counterparties on contracts;
    • our dependence on key personnel and our ability to attract, retain and motivate key employees;
    • adequacy of insurance coverage;
    • our ability to obtain indemnities from customers;
    • changes in laws, treaties or regulations;
    • the volatility of the price of our ordinary shares;
    • our incorporation under the laws of Cyprus and the different rights to relief that may be available compared to other countries, including the United States;
    • changes in governmental rules and regulations or actions taken by regulatory authorities;
    • government requisition of our vessels during a period of war or emergency;
    • potential liability from pending or future litigation and potential costs due to environmental damage and vessel collisions;
    • the arrest of our vessels by maritime claimants;
    • general domestic and international political conditions or events, including “trade wars”;
    • any further changes in U.S. trade policy that could trigger retaliatory actions by the affected countries;
    • potential disruption of shipping routes due to accidents, environmental factors, political events, public health threats, international hostilities including the ongoing conflict between Russia and Ukraine, the conflict between Israel and Hamas and related conflicts in the Middle East, the Houthi attacks in the Red Sea and the Gulf of Aden, acts by terrorists or acts of piracy on ocean-going vessels;
    • the impact of the U.S. presidential and congressional election results affecting the economy, future government laws and regulations, trade policy matters, such as the imposition of tariffs, the amendment, termination or any other material change to a relationship governed by a treaty and other import restrictions;
    • the length and severity of epidemics and pandemics and their impacts on the demand for seaborne transportation of crude oil and refined products;
    • the impact of port or canal congestion;
    • business disruptions due to adverse weather, natural disasters or other disasters outside our control; and
    • other important factors described from time to time in the reports filed by the Company with the Securities and Exchange Commission.

    We caution readers of this report not to place undue reliance on these forward-looking statements, which speak only as of their dates. These forward-looking statements are no guarantee of our future performance, and actual results and future developments may vary materially from those projected in the forward-looking statements.

    This information is subject to the disclosure requirements pursuant to Section 5-12 the Norwegian Securities Trading Act.


    1 This press release describes Time Charter Equivalent earnings and related per day amounts and spot TCE currently contracted, which are not measures prepared in accordance with IFRS (“non-GAAP”). See Appendix 1 for a full description of the measures and reconciliation to the nearest IFRS measure.

    Attachment

    The MIL Network

  • MIL-OSI Australia: Productivity Commission appointment

    Source: Australian Treasurer

    The Government has agreed to recommend to the Governor‑General, Her Excellency the Honourable Sam Mostyn AC, the appointment of Dr Angela Jackson as a full‑time Social Policy Commissioner to the Productivity Commission (PC), for a five‑year period.

    This is a key appointment for one of Australia’s key economic institutions.

    Driving productivity and higher living standards is a Government priority, and to do that we need the highest calibre of Commissioners at the PC.

    Dr Jackson is the Lead Economist at Impact Economics and Policy. She has been a part‑time Commissioner of the Commonwealth Grants Commission, a Member of the Economic Inclusion Advisory Committee and Chair of the Women in Economics Network that works to build the pipeline of female Australian economists.

    Dr Jackson was part of the independent panel that reviewed the Commonwealth Government’s response to the COVID‑19 pandemic and was also a Board Member and Chair of the Finance Committee at Royal Melbourne Hospital.

    She has also held senior economic advisory roles for the Commonwealth Government.

    Dr Jackson holds a PhD in Health Economics from Monash University and a Masters in International Health Policy (Health Economics) from the London School of Economics and Political Science.

    This proposed appointment would continue the high level of skills and experience within the PC, to help ensure its continued high‑quality research and advice on the key sectors of our economy.

    If appointed, Dr Jackson’s work at the PC will make a key contribution to the five pillars of the Government’s productivity agenda to build a more productive Australia.

    MIL OSI News

  • MIL-OSI Asia-Pac: President Lai presides over third meeting of Healthy Taiwan Promotion Committee

    Source: Republic of China Taiwan

    Details
    2024-11-28
    President Lai presides over second meeting of Healthy Taiwan Promotion Committee
    On the afternoon of November 28, President Lai Ching-te presided over the second meeting of the Healthy Taiwan Promotion Committee. In his opening statement, the president said that we are implementing mental health support programs this year to provide more support for young and middle-aged people, pointing out that the policy has served over 20,000 people since it was implemented just over three months ago. In terms of bolstering mental health resiliency, the president said we still have much to do, our government must lead by example, and the public and private sectors must work together, making every effort to ensure that no one is left behind. Noting that our goal is to reduce the standardized cancer mortality rate by one-third by the year 2030, President Lai stated that next year’s budget for cancer screening will be increased to NT$6.8 billion. He also stated that plans are in the works to establish a fund for new cancer drugs, adding that in the general budget we will allocate NT$5 billion, which will gradually rise to NT$10 billion. At the same time, he said, we are also actively promoting genetic testing and precision medicine. He expressed confidence that expanding preventive screening at the front end and providing advanced treatments at the back end will effectively fight cancer and improve the overall health of our citizens. A translation of President Lai’s opening statement follows: Today is the second meeting of the Healthy Taiwan Promotion Committee. First, I want to thank our two deputy conveners, our advisors and committee members, and our friends online for their enthusiastic participation. I also want to welcome Committee Member Chien Wen-jen (簡文仁), who was on leave for the previous meeting. I would also like to introduce three new committee members: Let’s welcome Committee Member Huang Chin-shun (黃金舜), president of the Federation of Taiwan Pharmacists Associations. During the pandemic, he led the nation’s pharmacists in promoting services including name-based distribution systems for masks and rapid-test kits and home delivery of medications. I am sure that he will be able to provide many valuable views regarding pharmaceutical safety and supply resilience.    Let’s also welcome Committee Member Ko Fu-yang (柯富揚). During his time as secretary-general of the National Union of Chinese Medical Doctors’ Association, he led the Chinese medicine community in the transition from experience-based medicine to evidence-based medicine, and promoted the modernization of traditional Chinese medicine. With his participation, the committee will be able to spur research and development in both modern and traditional medicine. Our third new committee member is Liao Mei-nan (廖美南), president of the Taiwan Nurses Association, who was unable to be here today. She has long been dedicated to raising the quality of nursing care and actively promoting a high-quality, friendly work environment for nurses. The committee will rely on her experience to strengthen the link between policy and practice in nursing care. I want to thank all the members of the committee once again for working together with the government. Since the last committee meeting, under the guidance of Minister without Portfolio Chen Shih-chung (陳時中), the Ministry of Health and Welfare (MOHW) has implemented various policies. At the beginning of October, for example, three major AI centers were set up to resolve three key AI application issues: implementation, certification, and reimbursement, helping advance Taiwan’s smart healthcare ecosystem. At today’s meeting, the MOHW will first deliver a report on the progress of certain items listed in the first committee meeting, followed by a joint report by the MOHW and Ministry of Education on bolstering public mental health resilience and a report by the MOHW on enhancing cancer prevention and treatment strategies.  The World Health Organization has affirmed that “there is no health without mental health.” In a fast-changing, fast-paced society, the government should invest more resources in the field of mental health to safeguard the people’s overall health. We are therefore implementing mental health support programs this year and expanding the range of eligibility, from 15 to 30, to 15 to 45 years old, to provide more support for young and middle-aged people. That policy has served over 20,000 people since it was implemented just over three months ago. In terms of bolstering mental health resiliency, we still have much to do. From the workplace to the campus and every corner of society, our government must lead by example, and the public and private sectors must work together, making every effort to ensure that no one is left behind.    Aside from mental health, in view of cancer being the leading cause of death in Taiwan for 42 consecutive years, our goal is to reduce the standardized cancer mortality rate by one-third by the year 2030. And so we must expand screening and advance treatment. Last year, the government subsidized screenings for five types of cancer, providing a total of 4.87 million screenings and detecting 11,000 cases of cancer and 52,000 cases of precancerous conditions. We have allocated an additional NT$4 billion beginning next year, bringing the total budget for cancer screening to NT$6.8 billion, to expand the scope of cancer screening eligibility and services.  Plans are also in the works to establish a fund for new cancer drugs. In next year’s general budget we will allocate NT$5 billion, which will gradually rise to NT$10 billion, to provide reimbursement funding for a variety of new cancer drugs and reduce the economic burden on patients. These new measures will be reported on in detail moments from now by the MOHW. At the same time, we are also actively promoting genetic testing and precision medicine. Next generation sequencing, for example, has already been included in National Health Insurance coverage, which will help provide patients with precise, individualized treatment strategies. I am confident that expanding preventive screening at the front end and providing advanced treatments at the back end will effectively fight cancer and improve the overall health of our citizens. Today’s meeting will help the government understand viewpoints from many perspectives so we can promote policies that more closely meet the public’s needs. Let’s keep working hard together. Thank you.  Following his statement, President Lai heard a report on the progress of certain items listed in the first committee meeting from deputy executive secretary and National Health Insurance Administration Director General Shih Chung-liang (石崇良), a joint report on bolstering public mental health resilience from Deputy Minister of Health and Welfare Lin Ching-yi (林靜儀) and Deputy Minister of Education Lin Teng-chiao (林騰蛟), and a report on enhancing cancer prevention and treatment strategies from Deputy Minister of Health and Welfare Chou Jih-haw (周志浩). Afterward, President Lai exchanged views with the committee members regarding the content of the reports.  

    Details
    2024-11-28
    President Lai presides over first meeting of Healthy Taiwan Promotion Committee
    On the afternoon of August 22, President Lai Ching-te presided over the first meeting of the Healthy Taiwan Promotion Committee. As the committee’s convener, the president presented committee members with their letters of appointment, and explained that the Healthy Taiwan Promotion Committee is not just about promoting a Healthy Taiwan, but also achieving a Balanced Taiwan. The president stated that the committee spans various areas of expertise, and also considers the balance of Taiwan’s northern, central, southern, and eastern regions. The president expressed confidence that by soliciting a wide range of suggestions, engaging in diverse dialogue, and forging a consensus, the committee can help to realize health equality and further elevate the standard of medical care in Taiwan. President Lai indicated that next year, the Ministry of Health and Welfare’s total budget will be increased, along with expanded investment in medical treatment and care. In addition, he reported that the central government budget has also added a National Health Insurance (NHI) financial assistance program, which will help to enhance the work environments of healthcare professionals. The president stated that we will also launch the Healthy Taiwan Cultivation Plan to help rear talent and develop smart medicine. These budgets and programs, President Lai stated, reflect the government’s determination to create a Healthy Taiwan, and prove that “Healthy Taiwan” is not just a slogan, and has already been turned into concrete action. A translation of President Lai’s opening statement follows: At the end of my first month in office, I announced that the Presidential Office will establish three committees in response to three major global issues of nationwide concern: climate change, health promotion, and social resilience. These committees will consolidate forces from different sectors to strategize on national development. At the beginning of this month, we convened the first meeting of the National Climate Change Committee. Today, we convene the first meeting of the Healthy Taiwan Promotion Committee. I would like to thank the three deputy conveners and all advisors and committee members for making a commitment to the Healthy Taiwan Promotion Committee. I also want to thank our fellow citizens and friends joining us online to follow the committee’s proceedings. During my campaign, I was constantly thinking about what I could contribute to our people that is different from past presidents if I were fortunate enough to be elected. After a lot of thought, I felt that as a physician, I should utilize my professional background in health care and work together with people from all sectors of society to help create a Healthy Taiwan. Healthy Taiwan is our goal, and health is both a basic human right and a universal value. Health promotion not only involves the well-being of a nation’s people, but is also of great concern to humankind so that we may survive and thrive. Taiwan is a responsible member of the international community. Amid the challenges of the pandemic over the past few years, we have shared disease prevention supplies, technology, and experience with countries around the world, and have continued to contribute to the global public health system. Going forward, Taiwan must actively address critical health-related challenges, including cancer, transnational communicable diseases of unknown origin, antibiotic-resistant superbugs, a low birth rate, and an aging society. We are confident that, sharing countermeasures and experience with countries around the world, we can keep people healthy and make the nation stronger so that the world embraces Taiwan. I want to thank former Superintendent of National Cheng Kung University Hospital Chen Jyh-hong (陳志鴻), who is also a mentor of mine, for organizing five regional forums and a national forum for the Healthy Taiwan Promotion Alliance this past March and April. Over 1,200 healthcare professionals from all over the country attended the forums and shared their views. Premier Cho Jung-tai (卓榮泰), Vice Premier Cheng Li-chiun (鄭麗君), and I were also invited to attend the national forum and participate in full. I also want to thank the experts from various fields for their suggestions throughout this process, which became key reference points for promoting policies after we took office on May 20. The position paper on the table in front of you is a compilation of those valuable insights, which will be the foundation of our future actions. To implement the Healthy Taiwan initiative, we must also achieve a Balanced Taiwan. Therefore, the Healthy Taiwan Promotion Committee established today not only spans various areas of expertise, but also considers the balance of Taiwan’s northern, central, southern, and eastern regions to achieve nationwide health equality. I want to thank the nine advisors here with us today: Superintendent Wu Ming-shiang (吳明賢), Superintendent Chen Wei-ming (陳威明), Chairman Cherng Wen-jin (程文俊), President Chiu Kuan-ming (邱冠明), and Chairman Chang Hong-jen (張鴻仁) from northern Taiwan; Superintendent Chen Mu-kuan (陳穆寬) from central Taiwan; Superintendent Lin Sheng-che (林聖哲) and President Yu Ming-lung (余明隆) from southern Taiwan; and Superintendent Lin Shinn-zong (林欣榮) from eastern Taiwan. Your participation will give us a better understanding of viewpoints from around the country. The objective of Healthy Taiwan is to raise the population’s average life expectancy while simultaneously reducing time spent living with illness or disability, while also caring for physical, mental, and spiritual health. The 20 members of the committee are therefore drawn from a variety of fields of professional expertise. We have Superintendent Chen Shih-ann (陳適安) in the field of smart medicine, Vice-Superintendent Susan Shur-fen Gau (高淑芬) in pediatric psychiatry, medical and long-term care service integration specialist Superintendent Chan Ding-cheng (詹鼎正), and emerging infectious disease specialist Director Shen Ching-fen (沈靜芬). We have also invited Professor Tsai Sen-tien (蔡森田) to provide suggestions on optimizing healthcare services and health insurance sustainability, and invited President Chou Ching-ming (周慶明) and President Huang Cheng-kuo (黃振國) to continue promoting the Family Medicine Plan and report on primary care issues. We have also recruited President Li Yi-heng (李貽恒), who put forward the 888 Program for prevention and treatment of the “three highs” (high blood pressure, high cholesterol, and high blood sugar) and kidney disease, pediatric health specialist President Ni Yen-hsuan (倪衍玄), women’s health care specialist Secretary-General Huang Jian-pei (黃建霈), and President Hung Te-jen (洪德仁), who is focused on community development. We also have Dean Shan Yan-shen (沈延盛) from the field of cancer prevention and treatment, psychiatric and mental health specialist Professor Su Kuan-pin (蘇冠賓), epidemiology expert and Emeritus Research Fellow Ho Mei-shang (何美鄉), and biomedicine and regenerative medicine specialist Professor Patrick Ching-ho Hsieh (謝清河). The committee also includes specialist in nutrition and health for all ages President Kuo Su-e (郭素娥), and expert in the promotion of physical activity and health Vice Chairman Chien Wen-jen (簡文仁). I also want to thank Chairman Lin De-wen (林德文) for participating as we work together to enhance the health and well-being of indigenous peoples. In addition, public sector participants include Minister of National Development Liu Chin-ching (劉鏡清) and Minister of Education Cheng Ying-yao (鄭英耀), as well as Minister of Health and Welfare Chiu Tai-yuan (邱泰源), who is serving as executive secretary, and NHI Administration Director General Shih Chung-liang (石崇良) serving as deputy executive secretary. Over 80 percent of the committee’s members are from the private sector, and I will take advantage of this opportunity to continue to combine the strengths of all stakeholders throughout society to promote a healthy lifestyle for one and all, and enhance medical care for all ages. At today’s first meeting of the committee, the Ministry of Health and Welfare will brief us on two topics: the first is the Healthy Taiwan vision plan, illustrating Taiwan’s current challenges and opportunities, as well as an action blueprint. The second issue is reform and optimization for NHI sustainability. Next year will mark the 30th anniversary of our NHI system. NHI is the pride of Taiwan, because health insurance can free citizens from the vicious cycle of poverty caused by illness, or illness caused by poverty. Since 2020, the NHI system has achieved a public satisfaction rate of over 90 percent. Next year, Taiwan will also become a “super-aged society,” which means that one of every five people will be a senior citizen 65 or older. Due to new pharmaceuticals of all kinds, the development of new technologies, and citizen expectations for an optimized medical practice environment, many aspects of health insurance operations will face an increasing number of challenges. The NHI system’s core values are health equality and mutual assistance for all. Better care for everyone, however, depends on sustainable NHI operations. We closely monitor NHI system point values, but also want to embody the greater values of the system. The government will continue to refine the budget system and management, rationally distribute medical resources and stabilize point values, and continue to optimize NHI finances to enhance the efficiency and quality of services. We also look forward to working with everyone to achieve sustainable NHI development, enhance health equality, and further elevate the standard of medical care in Taiwan. I also want to report that next year, the Ministry of Health and Welfare’s total budget will reach NT$370.2 billion, an increase of NT$31.8 billion over this year. The total budget is expected to allocate NT$60.7 billion to expand investment in medical treatment and care to create a Healthy Taiwan. The central government budget has also added an NHI financial assistance program that includes incentives for maintaining specified nurse-patient ratios across all three shifts and rotating night-shift nursing staff, and promoting smart information upgrades at medical facilities to enhance the work environments of healthcare professionals. We will also launch the Healthy Taiwan Cultivation Plan, investing funds to support medical institutions at all levels nationwide, rear talent, and develop smart medicine. Regarding the fund for new cancer drugs that many cancer patients care deeply about, in next year’s general budget we will allocate NT$5 billion for health insurance funding. In 2026, that figure is expected to reach NT$10 billion. We will also promote the fifth-stage national plan for cancer prevention and treatment, and beginning next year the budget for cancer screening will be increased by NT$4 billion, reaching NT$6.8 billion, to boost screening rates. I want everyone to know that these budgets and programs reflect the government’s determination to create a Healthy Taiwan. Since I took office, the government has created plans and programs to increase nursing staff levels and promote public mental health. We also launched an Acute Hospital Care at Home pilot project to provide integrated long-term and medical care services. Once again, I would like to thank everyone here today for participating, and thank our fellow citizens for their support. I also want our fellow citizens to know that Healthy Taiwan is not just a slogan, and has already been turned into concrete action. These are all concrete, substantive actions by a government team that has been in office for less than 100 days. I am confident that with the support and participation of our committee members and advisors, and through soliciting a wide range of suggestions, engaging in diverse dialogue, and forging a consensus, our actions to create a Healthy Taiwan will more closely align with society’s expectations, and we will move more quickly and steadily toward realizing our vision. Thank you. Following his statement, President Lai presented letters of appointment to the committee members, heard a report from Minister Chiu illustrating the Healthy Taiwan vision plan, and heard a report from Director General Shih on reform and optimization for NHI sustainability. Afterward, President Lai exchanged views with the committee members regarding the content of the two reports and the Rules of Procedure for Meetings of the Office of the President Healthy Taiwan Promotion Committee.

    Details
    2024-11-28
    President Lai attends opening of International Conference on Emergency Medicine 2024
    On the morning of June 20, President Lai Ching-te attended the opening ceremony of the International Conference on Emergency Medicine (ICEM) 2024. In remarks, President Lai stated that one goal of his administration is to create an even healthier Taiwan and that we will continue to strengthen our capabilities in medicine and public health to enhance health for all and help make the world a better place. The president emphasized that the global disease prevention network is something every country should be a part of, and that if any country is missing from this network, the rest of the world will be at a disadvantage. The president then asked for the participants’ support for Taiwan to participate in the World Health Organization so that we may contribute even more to the global public health system. A transcript of President Lai’s remarks follows: I would like to begin by welcoming all guests from overseas to Taiwan. ICEM is the world’s largest conference on emergency medicine. Over 2,500 experts and academics from home and abroad have gathered here for this year’s conference. This not only underlines the importance of emergency medicine, but is also a testament to global cooperation in medicine. This year also marks TSEM’s [Taiwan Society of Emergency Medicine] 30th anniversary. I would like to thank Chairperson Ng Chip-jin (黃集仁), President Hsu Chien-chin (許建清), and everyone who helped bring ICEM to Taiwan. This conference will help expand people-to-people diplomacy, showing Taiwan’s development and contributions in emergency medicine to the world. I am confident that everyone here shares my belief that health is a basic human right. And to ensure this right, emergency medical professionals are indispensable. Before entering politics, I myself worked as a clinician. I know well that emergency rooms are at the frontline of hospitals, and often the last hope for those who need lifesaving care. Especially during the COVID-19 pandemic, we all witnessed the rapid response and important support of emergency medical professionals, who gave their all for the health of others. I want to take this opportunity to express my utmost respect for your work. The theme of ICEM 2024 is Glocalization of Emergency Medicine: Global Wisdom and Local Solution. With that in mind, I hope that through clinical research, public health, smart tech, and other strategies, we can help reduce disparities in emergency medicine around the world. Here in Taiwan, we have made major progress in emergency medicine, from developing a cutting-edge trauma care system to implementing advanced strategies for disaster response. We are also committed to training highly skilled professionals in the field, as well as developing an advanced medical infrastructure. This conference will give Taiwan the opportunity to share our experience, and allow everyone to exchange best practices, engage in discussions, and promote the global development of emergency medicine. One goal of my administration is to create an even healthier Taiwan. We will continue to strengthen our capabilities in medicine and public health to enhance health for all and help make the world a better place. A healthier Taiwan also means a booming medical sector, and an even higher quality and diversity of medical services. Taiwan has had, and will continue to have, many medical accomplishments to share with the world. Today, all of you gather here to continue making global contributions through emergency medicine. The mission of IFEM [International Federation for Emergency Medicine] is to create a world where all people, in all countries, have access to high quality emergency medical care. On this point, the global disease prevention network is something every country should be a part of. If any country is missing from this network, the rest of the world will be at a disadvantage. I would like to ask for your support for Taiwan to participate in the World Health Organization, so that we may contribute even more to the global public health system. And as President Hsu Chien-chin has said, although the road is long, if we travel together, we can travel far. With this vision as our guide, alongside our friends from around the world, Taiwan will strive to achieve our common goals and realize quality healthcare for all. I wish ICEM 2024 great success, and all participants a rewarding experience. I also invite you to travel around Taiwan during your stay, and get to know our beautiful nation. Following his remarks, President Lai and the distinguished guests took part in the kick-off ceremony for the conference. IFEM President Ffion Davies was also in attendance at the event.

    Details
    2024-11-28
    President Lai meets WHA action team
    On the morning of June 1, President Lai Ching-te met with members of Taiwan’s World Health Assembly (WHA) action team. In remarks, President Lai stated that standing on the front lines, the team fought for the human right to health for both Taiwan and the world. He also thanked the international community for their support for Taiwan. The president said that Taiwan is an indispensable member of the international community when it comes to ensuring global health security. In addition, he said that one of the new government’s goals is to create a healthier Taiwan, as we want our people to live longer and healthier, and that we want to leverage Taiwan’s strengths in public health and medicine. He said we will continue to deepen our partnerships with other countries as we build an even more resilient global public health system, and that a healthy Taiwan will help make the world a better place. A translation of President Lai’s remarks follows: I would like to warmly welcome our partners from the WHA action team back from Geneva, and express my appreciation for your hard work and efforts. Standing on the front lines, you fought for the human right to health for both Taiwan and the world, and we thank you for giving it your all. Your flight only just arrived at 7 a.m., but I can see that everyone is still in high spirits. You have truly put in your heart for Taiwan, and once again, I thank you all. It is regrettable that at this year’s WHA, constrained by political factors, a proposal item for Taiwan to join as an observer was not included in the agenda yet again. However, the hard work of our WHA action team over the years has already borne fruit. Last year, the Ministry of Health and Welfare signed MOUs with the public health agencies of the Czech Republic, Canada, and the United Kingdom, and bilateral talks this year included discussion on substantive cooperation. The bilateral talks carried out by our action team in Geneva were not only more numerous this year, but also involved officials of even higher level. The team also held professional forums addressing important issues of the WHA in cooperation with various medical and health organizations. This is all proof of Taiwan’s contribution toward global public health and the human right to health. The steps we take for Taiwan to participate in world health affairs will not falter. Support for Taiwan from the international community grows stronger year by year. This year, 26 member states of the World Health Organization and the European Union, which is an observer, directly or indirectly voiced their support for Taiwan’s participation in the WHA. Their support reaffirms that Taiwan is an indispensable member of the international community when it comes to ensuring global health security. Health knows no borders. Health is a basic human right. One of the new government’s goals is to create a healthier Taiwan. We want our people to live longer and healthier. And we also want to leverage Taiwan’s strengths in public health and medicine, as we deepen our cooperation with other countries and work together to advance the health of humankind and global sustainable development. I want to thank the member states for their support for Taiwan. I also want to once again thank the members of the WHA action team and our many friends, both here and outside of Taiwan, for their hard work on this issue. Moving forward, we will continue to deepen our partnerships with other countries as we build an even more resilient global public health system. So just as democratic Taiwan continues to shine its light upon the world, a healthy Taiwan will help make the world a better place. On that note, let us keep working together toward these goals. After President Lai concluded his remarks, Minister of Health and Welfare Chiu Tai-yuan (邱泰源) presented a photo collage to show President Lai some of the highlights of the action team’s activities in Geneva.

    Details
    2024-11-28
    President Tsai meets World Medical Association President Lujain Alqodmani
    On the morning of December 11, President Tsai Ing-wen met with a delegation led by World Medical Association (WMA) President Dr. Lujain Alqodmani. In remarks, President Tsai thanked the WMA for its many years of speaking up for Taiwan on the international stage. President Tsai emphasized that we will continue to show how Taiwan can help by actively contributing to global health security. The president expressed her belief that with Taiwan’s achievements and capabilities in medicine and public health, we can join forces with many more countries to optimize the medical environment and make a more positive impact on the health of humankind. A translation of President Tsai’s remarks follows: I extend a warm welcome to President Alqodmani, who is visiting Taiwan once again. I am also glad to see WMA Secretary General Dr. Otmar Kloiber. Both of you are well acquainted with Taiwan and are our close friends. You have demonstrated your support through concrete actions. I would like to express my deepest thanks. The WMA is the largest international NGO that represents physicians. You staunchly defend health security and the rights and interests of physicians around the world with professionality and impartiality. I want to take this opportunity to thank the WMA on behalf of the Taiwanese people for its longstanding support of our participation in the World Health Organization (WHO) and World Health Assembly (WHA). This May, for example, our WHA action team collaborated with the WMA to hold a forum on emergency medicine in Geneva in the lead-up to the WHA. We will continue to show how Taiwan can help by actively contributing to global health security. During the COVID-19 pandemic, Taiwan demonstrated the resilience of its public healthcare system and shared its experiences in combating the pandemic with the world. We have also shared our medical services and construction capabilities, two areas in which we excel, with our diplomatic allies to help enrich the lives of their people and enhance the quality and environment of healthcare. We hope that President Alqodmani and Secretary General Kloiber will continue to speak up for Taiwan on the international stage. I believe that with Taiwan’s achievements and capabilities in medicine and public health, we can join forces with many more countries to optimize the medical environment. Together, we can make a more positive impact on the health of humankind. I also want to thank the Taiwan Medical Association (TMA) for serving as a bridge of communication between the government and the medical community, which helps us in implementing many of our policies. We look forward to the TMA further expanding exchanges and cooperation between the medical and international communities. I am looking forward to exchanging ideas with you today. Your visit to Taiwan will no doubt lay the groundwork for further cooperation. I wish you all a successful trip.

    Details
    2025-02-14
    President Lai holds press conference following high-level national security meeting
    On the morning of February 14, President Lai Ching-te convened the first high-level national security meeting of the year, following which he held a press conference. In remarks, President Lai announced that in this new year, the government will prioritize special budget allocations to ensure that Taiwan’s defense budget exceeds 3 percent of GDP. He stated that the government will also continue to reform national defense, reform our legal framework for national security, and advance our economic and trade strategy of being rooted in Taiwan while expanding globally. The president also proposed clear-cut national strategies for Taiwan-US relations, semiconductor industry development, and cross-strait relations. President Lai indicated that he instructed the national security and administrative teams to take swift action and deliver results, working within a stable strategic framework and according to the various policies and approaches outlined. He also instructed them to keep a close watch on changes in the international situation, seize opportunities whenever they arise, and address the concerns and hope of the citizens with concrete actions. He expressed hope that as long as citizens remain steadfast in their convictions, are willing to work hand in hand, stand firm amidst uncertainty, and look for ways to win within changing circumstances, Taiwan is certain to prevail in the test of time yet again. A translation of President Lai’s remarks follows: First, I would like to convey my condolences for the tragic incident which occurred at the Shin Kong Mitsukoshi department store in Taichung, which resulted in numerous casualties. I have instructed Premier Cho Jung-tai (卓榮泰) to lead the relevant central government agencies in assisting Taichung’s municipal government with actively resolving various issues regarding the incident. It is my hope that these issues can be resolved efficiently. Earlier today, I convened this year’s first high-level national security meeting. I will now report on the discussions from the meeting to all citizens. 2025 is a year full of challenges, but also a year full of hope. In today’s global landscape, the democratic world faces common threats posed by the convergence of authoritarian regimes, while dumping and unfair competition from China undermine the global economic order. A new United States administration was formed at the beginning of the year, adopting all-new strategies and policies to address challenges both domestic and from overseas. Every nation worldwide, including ours, is facing a new phase of changes and challenges. In face of such changes, ensuring national security, ensuring Taiwan’s indispensability in global supply chains, and ensuring that our nation continues to make progress amidst challenges are our top priorities this year. They are also why we convened a high-level national security meeting today. At the meeting, the national security team, the administrative team led by Premier Cho, and I held an in-depth discussion based on the overall state of affairs at home and abroad and the strategies the teams had prepared in response. We summed up the following points as an overall strategy for the next stage of advancing national security and development. First, for overall national security, so that we can ensure the freedom, democracy, and human rights of the Taiwanese people, as well as the progress and development of the nation as we face various threats from authoritarian regimes, Taiwan must resolutely safeguard national sovereignty, strengthen self-sufficiency in national defense, and consolidate national defense. Taiwan must enhance economic resilience, maintain economic autonomy, and stand firm with other democracies as we deepen our strategic partnerships with like-minded countries. As I have said, “As authoritarianism consolidates, democratic nations must come closer in solidarity!” And so, in this new year, we will focus on the following three priorities: First, to demonstrate our resolve for national defense, we will continue to reform national defense, implement whole-of-society defense resilience, and prioritize special budget allocations to ensure that our defense budget exceeds 3 percent of GDP. Second, to counter the threats to our national security from China’s united front tactics, attempts at infiltration, and cognitive warfare, we will continue with the reform of our legal framework for national security and expand the national security framework to boost societal resilience and foster unity within. Third, to seize opportunities in the restructuring of global supply chains and realignment of the economic order, we will continue advancing our economic and trade strategy of being rooted in Taiwan while expanding globally, strengthening protections for high-tech, and collaborating with our friends and allies to build supply chains for global democracies. Everyone shares concern regarding Taiwan-US relations, semiconductor industry development, and cross-strait relations. For these issues, I am proposing clear-cut national strategies. First, I will touch on Taiwan-US relations. Taiwan and the US have shared ideals and values, and are staunch partners within the democratic, free community. We are very grateful to President Donald Trump’s administration for their continued support for Taiwan after taking office. We are especially grateful for the US and Japan’s joint leaders’ statement reiterating “the importance of maintaining peace and stability across the Taiwan Strait as an indispensable element of security and prosperity for the international community,” as well as their high level of concern regarding China’s threat to regional security. In fact, the Democratic Progressive Party government has worked very closely with President Trump ever since his first term in office, and has remained an international partner. The procurement of numerous key advanced arms, freedom of navigation critical for security and stability in the Taiwan Strait, and many assisted breakthroughs in international diplomacy were made possible during this time. Positioned in the first island chain and on the democratic world’s frontline countering authoritarianism, Taiwan is willing and will continue to work with the US at all levels as we pursue regional stability and prosperity, helping realize our vision of a free and open Indo-Pacific. Although changes in policy may occur these next few years, the mutual trust and close cooperation between Taiwan and Washington will steadfastly endure. On that, our citizens can rest assured. In accordance with the Taiwan Relations Act and the Six Assurances, the US announced a total of 48 military sales to Taiwan over the past eight years amounting to US$26.265 billion. During President Trump’s first term, 22 sales were announced totaling US$18.763 billion. This greatly supported Taiwan’s defensive capabilities. On the foundation of our close cooperation with the past eight years’ two US administrations, Taiwan will continue to demonstrate our determination for self-defense, accelerate the bolstering of our national defense, and keep enhancing the depth and breadth of Taiwan-US security cooperation, along with all manner of institutional cooperation. In terms of bilateral economic cooperation, Taiwan has always been one of the US’s most reliable trade partners, as well as one of the most important cooperative partners of US companies in the global semiconductor industry. In the past few years, Taiwan has greatly increased both direct and indirect investment in the US. By 2024, investment surpassed US$100 billion, creating nearly 400,000 job opportunities. In 2023 and 2024, investment in the US accounted for over 40 percent of Taiwan’s overall foreign investment, far surpassing our investment in China. In fact, in 2023 and 2024, Taiwanese investment in China fell to 11 percent and 8 percent, respectively. The US is now Taiwan’s biggest investment target. Our government is now launching relevant plans in accordance with national development needs and the need to establish secure supply systems, and the Executive Yuan is taking comprehensive inventory of opportunities for Taiwan-US economic and trade cooperation. Moving forward, close bilateral cooperation will allow us to expand US investment and procurement, facilitating balanced trade. Our government will also strengthen guidance and support for Taiwanese enterprises on increasing US investment, and promote the global expansion and growth of Taiwan’s industries. We will also boost Taiwan-US cooperation in tech development and manufacturing for AI and advanced semiconductors, and work together to maintain order in the semiconductor market, shaping a new era for our strategic economic partnership. Second, the development of our semiconductor industry. I want to emphasize that Taiwan, as one of the world’s most capable semiconductor manufacturing nations, is both willing and able to address new situations. With respect to President Trump’s concerns about our semiconductor industry, the government will act prudently, strengthen communications between Taiwan and the US, and promote greater mutual understanding. We will pay attention to the challenges arising from the situation and assist businesses in navigating them. In addition, we will introduce an initiative on semiconductor supply chain partnerships for global democracies. We are willing to collaborate with the US and our other democratic partners to develop more resilient and diversified semiconductor supply chains. Leveraging our strengths in cutting-edge semiconductors, we will form a global alliance for the AI chip industry and establish democratic supply chains for industries connected to high-end chips. Through international cooperation, we will open up an entirely new era of growth in the semiconductor industry. As we face the various new policies of the Trump administration, we will continue to uphold a spirit of mutual benefit, and we will continue to communicate and negotiate closely with the US government. This will help the new administration’s team to better understand how Taiwan is an indispensable partner in the process of rebuilding American manufacturing and consolidating its leadership in high-tech, and that Taiwan-US cooperation will benefit us both. Third, cross-strait relations. Regarding the regional and cross-strait situation, Taiwan-US relations, US-China relations, and interactions among Taiwan, the US, and China are a focus of global attention. As a member of the international democratic community and a responsible member of the region, Taiwan hopes to see Taiwan-US relations continue to strengthen and, alongside US-China relations, form a virtuous cycle rather than a zero-sum game where one side’s gain is another side’s loss. In facing China, Taiwan will always be a responsible actor. We will neither yield nor provoke. We will remain resilient and composed, maintaining our consistent position on cross-strait relations: Our determination to safeguard our national sovereignty and protect our free and democratic way of life remains unchanged. Our efforts to maintain peace and stability in the Taiwan Strait, as well as our willingness to work alongside China in the pursuit of peace and mutual prosperity across the strait, remain unchanged. Our commitment to promoting healthy and orderly exchanges across the strait, choosing dialogue over confrontation, and advancing well-being for the peoples on both sides of the strait, under the principles of parity and dignity, remains unchanged. Regarding the matters I reported to the public today, I have instructed our national security and administrative teams to take swift action and deliver results, working within a stable strategic framework and according to the various policies and approaches I just outlined. I have also instructed them to keep a close watch on changes in the international situation, seize opportunities whenever they arise, and address the concerns and hope of the citizens with concrete actions. My fellow citizens, over the past several years, Taiwan has weathered a global pandemic and faced global challenges, both political and economic, arising from the US-China trade war and Russia’s invasion of Ukraine. Through it all, Taiwan has persevered; we have continued to develop our economy, bolster our national strength, and raise our international profile while garnering more support – all unprecedented achievements. This is all because Taiwan’s fate has never been decided by the external environment, but by the unity of the Taiwanese people and the resolve to never give up. A one-of-a-kind global situation is creating new strategic opportunities for our one-of-a-kind Taiwanese people, bringing new hope. Taiwan’s foundation is solid; its strength is great. So as long as everyone remains steadfast in their convictions, is willing to work hand in hand, stands firm amidst uncertainty, and looks for ways to win within changing circumstances, Taiwan is certain to prevail in the test of our time yet again, for I am confident that there are no difficulties that Taiwan cannot overcome. Thank you.

    MIL OSI Asia Pacific News

  • MIL-OSI New Zealand: Monitoring update: April 2021

    Source: Tertiary Education Commission

    At the TEC, we gather a range of information about common issues through our monitoring activities. We’re committed to partnering with tertiary education organisations, and sharing learnings from our monitoring work to help the sector build capability so we can all achieve better outcomes for learners. 
    Hardship Fund for Learners – extension of spending timeframe
    The Hardship Fund for Learners (HAFL) was announced in May 2020 to help TEOs provide temporary financial assistance for their enrolled learners who faced hardship due to the COVID-19 pandemic.
    The funding was used to support initiatives from 23 March 2020 (the date the move to COVID-19 alert Level 4 was announced) until 31 December 2020 and was automatically allocated to all eligible TEOs.
    An extension to spend the funds on learners in hardship was offered to those TEOs that had funds remaining as of October 2020. If you are a TEO that accepted the extension, please remember you now have until 30 June 2021 to use your HAFL funding.
    For those TEOs that accepted the extension, we also remind you that we have added learner fees to the list of items that HAFL funding cannot be used for. This is because this funding is not to be used to subsidise services you provide to learners.
    Refunds to Fees Free and Targeted Training and Apprenticeship Fund eligible learners
    As a reminder to TEOs that deliver Fees Free and Targeted Training and Apprenticeship Fund (TTAF) programmes or qualifications, you cannot charge fees to an eligible student for eligible study.
    Your obligations for receiving Fees Free and TTAF payments are set out in the SAC Level 3 and above and ITF funding conditions (PDF 1.8 MB) and your Fees Free and TTAF agreements. These conditions mean that if we have advised you that we will make payments to you for an eligible learner – you cannot charge that learner.
    If a learner has paid fees and is entitled to a refund, as we have advised you that we will pay their fees, you must refund the learner as soon as possible. This includes refunds to any other party that may have paid the learner’s fees including fees covered by the Student Loan Scheme.
    If you have any questions regarding refunds to Fees Free or TTAF learners, please contact the TEC Customer Contact Group on customerservice@tec.govt.nz or 0800 601 301.
    Previously Completed Qualifications app
    Through our monitoring activities, we have identified instances of TEOs enrolling learners in qualifications they have already achieved.
    Our funding conditions specify that you must not seek funding for recognised prior learning credited to a student. This does not apply if the repeated learning or training is required to be undertaken periodically by an applicable quality assurance body.
    To assist the sector to comply with this condition, the TEC has developed a new app called Previously Completed Qualifications. The app has been created to assist you, at the point of enrolment, to check whether a learner has previously completed a qualification or not. The app should supplement your existing engagement with a learner about their enrolment including checking their NZQA NZ Record of Achievement (NZRoA).
    TEOs can enter a learner’s National Student Number (NSN) and qualification codes starting with ‘NZ’ into the app. The app then checks Single Data Return (SDR) data available from 2015 onwards to determine if the learner has previously completed the qualification.
    The app will help to ensure fewer instances of repeated enrolments in the future and support the education of TEOs across the sector.
    The app is available on Ngā Kete and further information can be found in the app’s quick reference guide (PDF 574 KB).
    Expiring qualifications
    A number of TEOs have qualifications that are closed off for new enrolments and about to expire. It is important that you ensure a replacement programme is in place for any qualifications you are delivering that are nearing expiry.
    As a reminder, TEC cannot fund expired qualifications. Once the New Zealand Qualifications Authority (NZQA) assigns an expiry date to a qualification, we will not fund any new students that you enroll after the last date for entry of that qualification (i.e. the last date a learner can be enrolled in a programme leading to this qualification).
    These conditions apply if you are a wānanga, private training establishment, Te Pūkenga. As of TEC’s 2021 base funding conditions this also applies if you are a Transitional Industry Training Organisation (TITO).

    MIL OSI New Zealand News

  • MIL-OSI Submissions: Global: Failure to consult Indigenous Peoples on future pandemics will further harm children’s education – Amnesty International

    Source: Amnesty International

    The failure of governments around the world to consult Indigenous Peoples on Covid-19 school closures and other emergency pandemic responses violated their rights, as children continue to feel the effects five years after the first global lockdown, Amnesty International said in a new report today.

    Indigenous leaders interviewed by Amnesty International for its report What If Indigenous Consent Is Not Respected?, testified to sharp and sustained increases in post-pandemic absenteeism and school dropout rates, of more than 80 per cent in some cases, among Indigenous children in more than 10 countries. Indigenous leaders and activists also voiced concerns that the often discriminatory, desultory or non-existent response by authorities to the educational needs of Indigenous children during the pandemic worsened long-standing inequities faced by Indigenous communities – with Indigenous girls and children with disabilities particularly disadvantaged. Going forward, the organization is calling for Indigenous Peoples to be consulted during future pandemics.  (ref. https://www.amnesty.org/en/documents/pol40/8959/2025/en/ )

    “The Indigenous leaders and activists we spoke to felt completely ignored by governments during the pandemic, which had an enduring and damaging impact on their rights and prospects,” said Chris Chapman, Amnesty International’s Researcher on Indigenous Rights.

    “They said that remote learning solutions were often unavailable to Indigenous children. Those in rural areas, where Indigenous communities often lacked devices, internet connections, electricity and the technological knowledge or capacity to participate in virtual classes or remote learning, were worst affected.”

    When lower-tech solutions such as printed materials were distributed to other groups, Indigenous communities in several different countries said they were passed over, ignored, or asked to pay for them.

    Indigenous campaigner Sylvia Kokunda said: “For the most part these materials were distributed by the local government, since it can be easier for the village chairperson to identify the people in this community. However, local officials would not give the materials to these Batwa people, they would give only to their people.”

    Radio or television-based educational broadcasting during the pandemic was often unavailable in Indigenous languages. An Ogiek activist said that although Sogoot FM 97.1, an Ogiek language radio station, was used to reach the community to inform them about Covid-19 and its impacts, it was not used for school coursework.  

    The report is based on data and more than 80 interviews or collected responses that Amnesty International gathered to explore how Indigenous students around the world were impacted by pandemic-related school closures, including in Democratic Republic of Congo, India, Kenya, Mexico, Nepal, Russia, Taiwan and Uganda. There are 476 million Indigenous people worldwide in more than 90 countries, belonging to 5,000 different Indigenous groups and speaking more than 4,000 languages.

    Technology, discrimination and dropout rates

    Where Indigenous families had limited access to technology for remote learning during the pandemic, boys were often prioritized.

    According to Indigenous women activists from Nepal, “If some families have a mobile, then only one or two will use it. And if there are more children in the house, one has to sacrifice their education. When it comes to the sacrifice, the girls are sacrificed more.”

    Even if Indigenous students had devices capable of being used for remote learning, their families were sometimes unable to afford sufficient data. In addition, remote teaching was rarely provided in Indigenous languages.

    Children with learning difficulties or disabilities which required specialist teaching, for instance through use of sign language or braille, were often excluded, including among Indigenous communities.

    Interviewees in many states said there was often little or no government monitoring, or consideration of the effectiveness of alternative learning initiatives for Indigenous communities. Information on how to access education when schools closed – and they stayed shut for more than 18 months in some countries – was rarely provided in Indigenous languages.

    Students with little or no access to education during the pandemic often worked instead, and never returned to schools when they reopened. Those who did return when schools reopened, often found that they had fallen behind their classmates. If they were unwilling to retake a year, or could not be supported financially, they too dropped out.

    In Kenya, the majority of dropouts of Ogiek students were girls, especially girls who got pregnant during Covid-19 or were subjected to early marriage. However, it affected boys too. An Indigenous activist from Kenya said: “Boys between the ages of 12 and 18 who had begun working in jobs such as motorcycle taxi drivers or farm workers to earn money for themselves and their families also dropped out.”

    Some schools across many states never reopened, further reducing access to education for Indigenous children, Indigenous activists reported.

    Asked to reply to Amnesty’s findings, the Mexican government stated that it responded to the “unprecedented challenge of Covid-19″ by working with Indigenous schools and teachers to roll out a set of measures including distributing materials in five Indigenous languages, sometimes in printed formats where access to internet or devices was restricted, developing new digital educational materials, and capacity-building for schools and parents to use digital platforms.

    Recommendations

    “Significantly more resources are now required to safeguard, restore and improve the educational opportunities and rights of Indigenous communities,” Chris Chapman said.

    “States must work with Indigenous communities to immediately restore and enhance the right to education for all Indigenous children including a focus on re-enrolling Indigenous girls, and Indigenous students with disabilities.”  

    Alongside the report, Amnesty International has shared a guide for researchers who wish to investigate the extent to which the human right to participate effectively in decision-making has been violated, especially when it comes to Indigenous communities. (ref. https://www.amnesty.org/en/documents/pol30/8958/2025/en/ )

    “Governments must consult with Indigenous Peoples on Covid-19 response measures and other pandemic and emergency response measures, otherwise they risk violating their right to consultation, and their right to give or withhold their consent to decisions affecting them. Our study highlights the risks of failing to take into account the realities, cultures and rights of Indigenous Peoples,” said Chris Chapman.

    “While our report sets out the devastating impact of this lack of inclusion, it’s hoped that Amnesty’s guide will ensure Indigenous people are included in discussions that affect them in the future. Every child has the right to free, high-quality primary education. States must therefore ensure that no child is left behind.”

    MIL OSI – Submitted News

  • MIL-OSI Security: Minneapolis Man Pleads Guilty in $250 Million Feeding Our Future Fraud Scheme

    Source: United States Department of Justice (National Center for Disaster Fraud)

    MINNEAPOLIS – A Minneapolis man has pleaded guilty to wire fraud for his role in the $250 million fraud scheme that exploited a federally funded child nutrition program during the COVID-19 pandemic, announced Acting U.S. Attorney Lisa D. Kirkpatrick.

    According to court documents, from April 2020 through January 2022, Abdikadir Ainashe Mohamud, a.k.a. “AK,” 33, claimed to be operating a child nutrition site in Willmar, Minnesota, a small town with a total population of approximately 21,000. Mohamud ran his food site, Stigma-Free Willmar, under the sponsorship of Feeding our Future. In October 2020, Mohamud approached the owner of FaaFan restaurant and offered to pay him monthly so that he could claim the small storefront restaurant as a Stigma-Free Willmar food site. By October 20, 2020, less than a month after registering the Stigma-Free Willmar site, Mohamud claimed to be serving meals to 3,000 children per day, seven days a week from FaaFan. Mohamud created a shell company, Tunyar Trading, and claimed it was a meal vendor for the Stigma-Free Willmar food site. Between November 2020 and December 2021, Mohamud and his co-conspirators claimed to have served approximately 1.6 million meals to children through Stigma-Free Willmar.

    To accomplish their scheme, Mohamud and his co-conspirators prepared and submitted fake meal counts, invoices, and attendance rosters. Mohamud ultimately transferred more than $2.5 million from Tunyar Trading to himself and other co-conspirators. He also created another shell company called Five A’s Projects LLC, where he transferred more than $1 million in Federal Child Nutrition Program funds. These proceeds were used to purchase the former location of Kelly’s 19th Hole, a bar and restaurant in Brooklyn Park, Minnesota.

    According to court documents, Mohamud paid more than $225,000 in bribes and kickbacks from Tunyar Trading LLC to Abdikerm Eidleh, a Feeding Our Future employee who served as the site support manager for the Stigma-Free Willmar site, in exchange for sponsoring and facilitating Stigma-Free Willmar’s fraudulent participation in the Federal Child Nutrition Program. In exchange, Feeding Our Future received nearly $500,000 in administrative fees for sponsoring the Stigma-Free Willmar site’s participation in the program.  In December 2021, the defendant paid $5,750 to a GoFundMe account for Feeding Our Future created by Aimee Bock.

    In total, Stigma-Free Willmar received over $5.3 million in payments from Feeding Our Future based on fraudulent claims. As part of his sentence, Mohamud was ordered to forfeit the Kelly’s 19th Hole property, and $378,207.20 in fraudulent funds seized from his Tunyar Trading LLC bank account.

    Mohamud pleaded guilty today in U.S. District Court before Judge Nancy E. Brasel. A sentencing hearing will be scheduled at a later date.

    The case is the result of an investigation by the FBI, IRS – Criminal Investigations, and the U.S. Postal Inspection Service.

    Assistant U.S. Attorneys Joseph H. Thompson, Harry M. Jacobs, Matthew S. Ebert, and Daniel W. Bobier are prosecuting the case. Assistant U.S. Attorney Craig Baune is handling the seizure and forfeiture of assets.

    MIL Security OSI

  • MIL-OSI USA: What They Are Saying: Broadband Industry Leaders Applaud Introduction of the Broadband Grant Tax Treatment Act

    US Senate News:

    Source: United States Senator for Kansas – Jerry Moran

    WASHINGTON – U.S. Senators Jerry Moran (R-Kan.) and Mark Warner (D-Va.) led the introduction of the Broadband Grant Tax Treatment Act to amend the Internal Revenue Code to make certain that federal broadband deployment funding will not be considered taxable income. This legislation received support from businesses, universities and associations across Kansas and the nation. Statements in support of the Broadband Grant Tax Treatment Act can be found below:

    “We appreciate the leadership of Senators Moran and Warner for their efforts to eliminate the tax on broadband grants to ensure more investment can connect more of our citizens and communities. Their bill is as pro-consumer as it gets.” – Brandon Heiner, Senior Vice President of Government Affairs at USTelecom – The Broadband Association

     

    “CTIA commends the bipartisan work of Senators Warner and Moran to reintroduce the Broadband Grant Tax Treatment Act in this Congress. Guaranteeing that grant funds can be optimally spent as intended will encourage the investments that reinforce and accelerate broadband deployment. This legislation will help ensure all Americans have access to world-leading wireless networks and that the United States is first globally in technology.” – Kelly Cole, Senior Vice President of Government Affairs at CTIA

     

    “NTCA and its members greatly appreciate Congress’s commitment to funding broadband deployment programs that help further the mission of connecting all Americans. However, when these funds are taxed, providers are required to pay the federal government a portion of the same award that they received from the federal government, instead of using the funds to serve the hardest-to-reach communities. NTCA thanks Sens. Moran and Warner for their leadership in introducing this commonsense legislation to ensure that every dollar granted for broadband deployment is used effectively to further the mission of connecting all Americans.” – Shirley Bloomfield, CEO of NTCA – The Rural Broadband Association

     

    “Grant funding has the potential to make sure that our rural and underserved communities receive connectivity through wireless and broadband services, but the impact that these grants can have is limited if those grants are taxed, undercutting the potential of federal broadband programs. Federal broadband grants should be free from taxation to ensure that every dollar goes towards connecting Americans. I applaud Sens. Moran (R-KS) and Warner (D-VA) for leading this bill in the Senate and urge its swift passage.” – Tim Donovan, President & CEO of The Competitive Carriers Association (CCA)

     

    “INCOMPAS members are building networks of the future with a mission to connect all Americans. Public-private partnerships are a critical component to help achieve this goal. This bill will ensure every single dollar allocated to deploying broadband goes to deploying broadband. INCOMPAS wholeheartedly supports this commonsense measure and urges Congress to act swiftly to ensure our members can continue to use critical grant resources to bridge the digital divide.” – Chip Pickering, CEO of INCOMPAS

    “ACA Connects thanks Senators Jerry Moran and Mark Warner for leading on the Broadband Grant Tax Treatment Act. This bipartisan legislation will ensure 100 percent of broadband grants are used to close the digital divide. America’s small and independent providers support this bill to make every dollar count as they invest in their communities, deploy infrastructure, and connect more people to high-speed internet.” – Grant Spellmeyer, President & CEO of ACA Connects

     

    “We applaud Senators Moran and Warner for reintroducing this bipartisan legislation to make sure the small, rural broadband providers we represent don’t get stuck with a major tax bill when they accept government grants to build broadband networks – Advocates for Rural Broadband. Congress has made an historic level of investment in broadband over the past several years and we want to see it pay dividends. Every dollar diverted to paying taxes on government grants is a dollar that is not invested in the network and connecting all Americans to broadband.” – Derrick Owens, Senior Vice President for Government and Industry Affairs for WTA – Advocates for Rural Broadband

     

    “TIA is pleased to see the reintroduction of the Broadband Grant Tax Treatment Act (BGTTA) by Senators Warner and Moran. This crucial legislation addresses a significant issue affecting the deployment of high-speed broadband networks across the United States. The broadband programs established under the Infrastructure Investment and Jobs Act (IIJA), particularly the $42.5 billion Broadband Equity, Affordability, and Deployment (BEAD) program, have the potential to connect all Americans to high-speed broadband. However, the current tax treatment of all federal broadband grants, including BEAD, as taxable income significantly reduces the funds available for building these networks. This unintentional tax burden significantly limits potential applicants for larger projects and could deter small service providers from seeking broadband funding. As Congress and President Trump’s administration work on streamlining BEAD requirements, it is imperative that Congress passes the BGTTA to ensure these dollars are used for their intended purpose: Connecting Americans with high speed, secure broadband.” – The Telecommunications Industry Association (TIA)

    “The Infrastructure Investment and Jobs Act’s purpose is to spur infrastructure deployment, but short-sighted tax policy currently limits the potential reach of broadband grants, undercutting our goal of enabling connectivity everywhere.  Senators Moran and Warner’s common sense Broadband Grant Tax Treatment Act will ensure we can finish the job and close the digital divide.” – The Wireless Infrastructure Association (WIA)

    “Since the pandemic, Congress has appropriated billions of dollars to accelerate the deployment of broadband networks in unserved areas so all Americans, no matter where they live, can get online.  Significant portions of that funding are presently taxable, and every dollar returned to Washington is one less dollar available to connect unserved communities. We therefore commend Senators Warner and Moran for introducing the Broadband Grant Tax Treatment Act, a pragmatic solution which eliminates the tax on broadband grants so that those funds can more ably meet Congress’ important universal service goals. Connected communities are more prosperous communities, which is the ultimate goal of Internet-for-All.” – Matt Mandel, Vice President of Government Affairs at The Wireless Internet Service Providers Association (WISPA)

    “The Communications Infrastructure Contractors Association and our 1,000 member companies from coast to coast are proud to support the Broadband Grant Tax Treatment Act that was recently introduced in the 119th Congress. NATE member companies are on the front lines of deployment and will play an instrumental role in closing the digital divide. It is imperative that the entirety of federal broadband dollars allocated for these purposes go towards connectivity, rather than making their way back to the government through taxes. We thank Senators Jerry Moran and Mark Warner for bringing this legislation forward in the Senate and also applaud Representatives Mike Kelly and Jimmy Panetta for spearheading this important proposal in the House of Representatives.” – Todd Schlekeway, President & CEO of NATE – The Communications Infrastructure Contractors Association

    “I would like to thank Senator Moran on his leadership in the effort to address the taxation challenge on federal broadband grants. Nex-Tech is a broadband provider committed to expanding high-speed internet access in rural Kansans, and I wholeheartedly support the Broadband Grant Tax Treatment Act. This legislation ensures that every dollar of federal grant funding can be fully utilized for broadband deployment, rather than being diminished by taxes. By removing this financial barrier, it will allow us to fully utilize funding for the delivery of essential internet services to underserved areas, fostering economic growth and improving quality of life for areas served by Nex-Tech.” Jimmy Todd, CEO & General Manager of Nex-Tech

    “We are pleased to hear the about the introduction of the ‘Broadband Grant Tax Treatment Act’ by Senator Moran and his colleagues. The current method of taxing grant dollars greatly limits the dollars available to build out broadband networks to these unserved parts of Kansas in need of reliable broadband. We support this legislation and appreciate the work Senator Moran has done to introduce this bill as we continue work to close the digital divide.” – Greg Reed, CEO of Wheat State Technologies

     

    MIL OSI USA News

  • MIL-OSI USA: Announcing the NYC DRI and NY Forward Program Winner

    Source: US State of New York

    overnor Kathy Hochul today announced that the Bronx neighborhood of Greater Morris Park will receive $20 million in funding as the New York City winner of the eighth round of the Downtown Revitalization Initiative (DRI) and the third round of NY Forward. Recognizing the unique scale and density of New York City neighborhoods, New York City NY Forward and DRI funding are being combined into one $20 million award. For Round 8 of the DRI and Round 3 of the NY Forward Program, each of the state’s 10 economic development regions are being awarded $10 million from each program, to make for a total state commitment of $200 million in funding and investments to help communities boost their economies by transforming downtowns into vibrant neighborhoods.

    “We are making an historic investment in Greater Morris Park with this $20 million combined award from our Downtown Revitalization Initiative and NY Forward programs,” Governor Hochul said. “Through this investment, we’re giving local leaders the tools they need to enhance the quality of life for New Yorkers in their community, draw visitors, and spur economic opportunity in the Bronx for generations to come.”

    To receive funding from either the DRI or NY Forward program, localities must be certified under Governor Hochul’s Pro-Housing Communities Program – an innovative policy created to recognize and reward municipalities actively working to unlock their housing potential and encourage others to follow suit. Governor Hochul’s Pro-Housing Communities initiative allocates up to $650 million each year in discretionary funds for communities that pledge to increase their housing supply; to date, 277 communities across New York have been certified as Pro-Housing Communities. This year, Governor Hochul is proposing an additional $100 million fund to assist certified Pro-Housing Communities with critical infrastructure projects necessary to create new housing as well as $10.5 million for technical assistance grants to help communities design and adopt policies that foster housing growth.

    Many of the projects funded through the DRI and NY Forward support Governor Hochul’s affordability agenda. The DRI has invested in the creation of more than 4,400 units of housing – 1,823 of which are affordable or workforce. The programs committed over $8.5 million to 11 projects that provide affordable or free childcare and childcare worker training. DRI and NY Forward have also invested in the creation of public parks, public art (such as murals and sculptures) and art, music and cultural venues that provide free outdoor recreation and entertainment opportunities.

    $20 Million Combined Downtown Revitalization Initiative and NY Forward Award for Greater Morris Park, Bronx
    Greater Morris Park is largely composed of Bronx Community District 11, as well as part of Community District 10. The neighborhood is home to many medical facilities, comprising one of the largest employment centers in the Bronx, and a top ten job center in all of New York City. This includes the Albert Einstein College of Medicine, Jacobi Medical Center, Calvary Hospital, Montefiore Medical Center, and the Bronx Behavioral Health Center. The Albert Einstein College of Medicine made headlines this year by announcing a generous billion-dollar endowment guaranteeing free tuition to all medical students in perpetuity. The area expects growth in population and economic activity from planned zoning and infrastructure changes, including two new Metro-North stations in the area.

    Morris Park’s vision is to transform the area into a premier transit-oriented development hub leveraging the addition of expanded Metro-North commuter rail service and rezoning, which will allow additional commercial and residential growth to bolster existing economic activity and drive future economic and employment growth. The community’s plan will also support Morris Park’s status as the second largest job center in The Bronx while maximizing the transformative impact of the new commuter rail service. This vision will enable Greater Morris Park to become a complete community that would feature safe streets, green public spaces, and intermodal connections. The Metro-North expansion presents a once-in-a-lifetime opportunity to put in motion transformative changes that will allow both residents and local businesses of Morris Park to thrive.

    New York Secretary of State Walter T. Mosley said, “Morris Park is a vibrant community full of rich history and cultural heritage that is ripe for revitalization. This $20 million in funding will allow the community to leverage its newly expanded rail service to drive both residential and commercial growth, making Morris Park an ideal place for new and existing residents to live, work and play. Congratulations to Morris Park and all of the Bronx!”

    Empire State Development President, CEO and Commissioner Hope Knight said, “The $20 million investment in Greater Morris Park represents a strategic opportunity to transform one of the Bronx’s key economic engines into an even more vibrant, transit-oriented community. By leveraging the area’s strong medical and educational institutions alongside the planned Metro-North expansion, we’re creating the conditions for sustainable economic growth while ensuring residents benefit from improved connectivity, enhanced public spaces, and new housing opportunities. This investment exemplifies Governor Hochul’s commitment to community-driven revitalization that creates inclusive prosperity across New York State.”

    New York State Homes and Community Renewal Commissioner RuthAnne Visnauskas said, “Today’s $20 million DRI and NY Forward award represents a monumental investment in Morris Park that will enable a growing neighborhood to flourish and gain vibrancy through transit-oriented development. This is only the latest example of Governor Hochul’s commitment to helping our State’s communities meet their full potential with targeted investments backed by local leaders. I look forward to seeing DRI and NY Forward’s transformative impact on Morris Park.”

    NYCREDC Co-Chairs Félix V. Matos Rodríguez, City University of New York Chancellor and William D. Rahm, CEO of Everview Partners, said, “Greater Morris Park stands at a pivotal moment in its development, with world-class medical institutions and the upcoming Metro-North stations creating unprecedented momentum. This $20 million award will help the community harness these assets while addressing critical needs for improved streetscapes, intermodal connections, and quality public spaces. We’re proud to support a vision that strengthens Morris Park while creating a more livable, accessible, and sustainable neighborhood for all who live and work there.”

    Bronx Borough President Vanessa L. Gibson said, “Today’s announcement by Governor Kathy Hochul of $20 million in downtown revitalization initiative funding for Morris Park is a significant investment in the Bronx and a huge win for our borough! We have an incredible, once-in-a-lifetime opportunity to position the Greater Morris Park community as a critical intermodal transit hub that will drive future growth and dramatically enhance the economic vitality of The Bronx. As the second-largest employment center in The Bronx and a top 10 business hub across all of New York City, Greater Morris Park has already positioned itself to be a vital economic engine for the borough and the greater New York City region. We are grateful for the Governor’s continued leadership in recognizing the incredible economic potential of our borough to create job growth and career opportunities for our residents. This historic investment will help build a brighter future for Morris Park and the entire borough. We are excited to see this $20 million financial commitment and are grateful for our Bronx Economic Development Corporation team, led by our President Rob Walsh, our Bronx Tourism Council, and our Planning & Development team. We remain committed to advocating for funding that supports all our communities, ensuring the Bronx continues to strive and thrive in `25 and beyond.”

    State Senator Nathalia Fernandez said, “This is a major investment for Morris Park and the Bronx. Governor Hochul’s support through the Downtown Revitalization Initiative lays the foundation for a stronger, more vibrant Bronx. I look forward to seeing this help strengthen local businesses, improve public spaces, and create new opportunities for the community.”

    Assemblymember John Zaccaro, Jr. said, “I would like to extend my thanks to Governor Hochul and her team for having the foresight to select the Greater Morris Park area of the Bronx, a community I proudly represent, as the recipient of a $20 million grant from the Downtown Revitalization Initiative and NY Forward programs. The Greater Morris Park area is home to a growing number of small businesses owned and operated by members of our incredible and diverse community. This funding will ensure that these neighborhoods continue to thrive for years to come.”

    Assemblymember Karines Reyes, R.N said, “The Bronx is deserving of resources and investment. I applaud Governor Hochul and the agencies involved in making this $20 million funding award for the neighborhoods of the East Bronx. This commitment to housing, planning, transit, and the beautification of our communities will continue to reinforce and elevate the commitment that residents have for our neighborhoods. I am thankful for Governor Hochul’s leadership on this issue and look forward to seeing these investments come to fruition for our region of the Bronx.”

    The Bronx Economic Development Corp President Rob Walsh said, “This $20 million investment is a transformative moment for Greater Morris Park and the Bronx. It will fuel small businesses, improve infrastructure, and drive lasting economic growth. BXEDC, alongside the Bronx Borough President’s Office, is committed to ensuring this funding creates real opportunities for businesses and residents alike. We thank Governor Hochul for her leadership and vision in empowering communities across New York City.”

    Greater Morris Park, Bronx will now begin the process of developing a Strategic Investment Plan to revitalize their downtowns. A Local Planning Committee made up of municipal representatives, community leaders and other stakeholders will lead the effort, supported by a team of private sector experts and state planners. The Strategic Investment Plan will guide the investment of DRI and NY Forward grant funds in revitalization projects that are poised for implementation, will advance the community’s vision for their downtown and that can leverage and expand upon the state’s investment.

    The New York City Regional Economic Development Council conducted a thorough and competitive review process of proposals submitted from communities throughout the region and considered all criteria before recommending these communities as nominees.

    About the Downtown Revitalization Initiative
    The Downtown Revitalization Initiative was created in 2016 to accelerate and expand the revitalization of downtowns and neighborhoods in all ten regions of the state to serve as centers of activity and catalysts for investment. Led by the Department of State with assistance from Empire State Development, Homes and Community Renewal and NYSERDA, the DRI represents an unprecedented and innovative “plan-then-act” strategy that couples strategic planning with immediate implementation and results in compact, walkable downtowns that are a key ingredient to helping New York State rebuild its economy from the effects of the COVID-19 pandemic, as well as to achieving the State’s bold climate goals by promoting the use of public transit and reducing dependence on private vehicles. Through eight rounds, the DRI will have awarded a total of $900 million to 89 communities across every region of the State.

    About the NY Forward Program
    First announced as part of the 2022 Budget, Governor Hochul created the NY Forward program to build on the momentum created by the DRI. The program works in concert with the DRI to accelerate and expand the revitalization of smaller and rural downtowns throughout the State so that all communities can benefit from the State’s revitalization efforts, regardless of size, character, needs and challenges.

    NY Forward communities are supported by a professional planning consultant and team of State agency experts led by DOS to develop a Strategic Investment Plan that includes a slate of transformative, complementary and readily implementable projects. NY Forward projects are appropriately scaled to the size of each community; projects may include building renovation and redevelopment, new construction or creation of new or improved public spaces and other projects that enhance specific cultural and historical qualities that define and distinguish the small-town charm that defines these municipalities. Through three rounds, the NY Forward program will have awarded a total of $300 million to 60 communities across every region of the State.

    MIL OSI USA News

  • MIL-OSI: U.S. Health Systems See Margin Declines to Start the Year While Hospital Margins Grow, According to Two New Strata Reports

    Source: GlobeNewswire (MIL-OSI)

    CHICAGO, Feb. 27, 2025 (GLOBE NEWSWIRE) — Operating margins for the nation’s health systems narrowed in January after climbing to a five-month high to end 2024. The median year-to-date health system operating margin was 1.0% for the month, down from 2.1% in December. It is the lowest health system operating margins have been in more than a year, after holding at 1.5% or above throughout 2024 following years of volatility.

    At the same time, the nation’s hospitals saw margins and revenues strengthen entering the new year, continuing trends seen in 2024, according to two new reports from Strata Decision Technology. The Monthly Healthcare Industry Financial Benchmarks report features a snapshot of the latest hospital performance data from January, and the quarterly Strata Performance Trends report provides a retrospective look at hospital and health system performance last year.

    “Health systems across the country had a shaky start to 2025,” said Steve Wasson, Strata’s Chief Data & Intelligence Officer. “While health system operating margins largely stabilized in 2024 after the turbulence of the pandemic, they remained uncomfortably thin. We saw encouraging trends with gross revenue growth outpacing expense increases last year. These and other positive performance trends will need to continue in 2025 for health systems to build a stronger foundation for margin growth.”

    For the nation’s hospitals, analysis of operating margin changes over time showed some improvement in January. The median change in hospital operating margin increased 1.9 percentage points from January 2024 to January 2025. Hospital revenues showed promising performance, with January marking the 21st consecutive month of year-over-year (YOY) increases in gross operating, inpatient, and outpatient revenues. Outpatient revenue increases continued to outpace inpatient revenue growth. Outpatient revenue jumped 9.2% YOY, while inpatient revenue increased 6.7% and gross operating revenue was up 8.3% YOY.

    Median gross revenue growth outpaced expense growth throughout 2024 for both hospitals and health systems. From 2023 to 2024, gross operating revenue rose 9.0% for the U.S. health systems and 7.5% for U.S. hospitals. By comparison, health system total expense was up 6.4% and hospital total expense increased 5.4% over the same period. 

    Labor expenses continued to climb in 2024 and in the first month of 2025, despite lower contract labor costs, as organizations focused on initiatives to retain employed staff. Total health system labor expense increased 5.7% and total hospital labor expense increased 4.2% for all of 2024 versus 2023. For the month of January 2025 versus January 2024, total hospital labor expense was up 4.0%.

    Total hospital non-labor expenses showed the highest growth rates in January compared to other expense categories. For January 2025 versus January 2024, total non-labor expense rose 5.6%, supply expense jumped 6.8%, and drugs expense was up 6.2%. Looking back at 2024, non-labor expense growth outpaced labor expense increases for the year, with total non-labor expense up 5.8% from 2023 to 2024 versus the 4.2% increase in total labor expense previously mentioned.

    Contract labor expense was the only expense category to decline in 2024, and those decreases were significant. From 2023 to 2024, contract labor expense dropped 22.7% for health systems and 37.5% for hospitals. These trends illustrate that organizations have successfully scaled back use of contract labor, which spiked during the pandemic due to widespread labor shortages and increased patient demand.

    About the Data 
    The report uses data from Strata’s StrataSphere® and Comparative Analytics database. Comparative Analytics offers access to near real-time data drawn from more than 135,000 physicians from over 10,000 practices and 139 specialty categories, and from 500+ unique departments across more than 1,600 hospitals. Comparative Analytics also provides data and comparisons specific to a single organization for visibility into how their market is evolving. StrataSphere is a unique and comprehensive data-sharing platform that helps providers leverage the power of a network that represents approximately 25% of all provider spend in U.S. healthcare. This report incorporates data from more than 600 hospitals with StrataJazz® Decision Support.

    About Strata Decision Technology 
    Strata Decision Technology provides a cloud-based platform for software and service solutions to help organizations better analyze, plan, and perform in support of their missions. With the combination of Syntellis Performance Solutions’ Axiom solutions, more than 2,300 organizations rely on Strata to provide their financial analytics, planning, and performance solutions. Strata has been named the market leader for Business Decision Support for 18 consecutive years. By uniting these two industry leaders, Strata continues to deliver market-leading solutions and world-class service, with an increased focus on accelerating innovation. For more information, please go to www.stratadecision.com.

    Syntellis Social Networks 
    LinkedIn: Strata Decision Technology
    Media contact: 
    Sally Brown, Inkhouse 
    strata@inkhouse.com

    The MIL Network

  • MIL-OSI: Guardian Capital Group Limited (TSX: GCG; GCG.A) Announces 2024 Annual Operating Results

    Source: GlobeNewswire (MIL-OSI)

    TORONTO, Feb. 27, 2025 (GLOBE NEWSWIRE) —

    All per share figures disclosed below are stated on a diluted basis.

    For the years ended December 31,       2024     2023  
    ($ in thousands, except per share amounts)        
             
    Net revenue     $ 323,403   $ 241,182  
    Operating earnings       38,824     59,849  
    Net gains       77,444     57,787  
    Net earnings from continuing operations       101,598     102,162  
    Net earnings from discontinued operations           554,933  
    Net earnings       101,598     657,095  
             
             
    EBITDA(1)     $ 70,874   $ 85,424  
    Adjusted cash flow from operations(1)       57,536     72,763  
             
             
    Attributable to shareholders:        
    Net earnings from continuing operations     $ 100,099   $ 100,250  
    Net earnings       100,099     562,929  
    EBITDA(1)       68,248     82,247  
    Adjusted cash flow from operations (1)       54,884     69,581  
    Per share, diluted:        
    Net earnings from continuing operations     $ 4.10   $ 3.99  
    Net earnings       4.10     22.12  
    EBITDA(1)       2.82     3.29  
    Adjusted cash flow from operations (1)       2.28     2.79  
             
    As at December 31, 2024       2024     2023  
    ($ in millions, except per share amounts)        
             
    Total client assets     $ 168,979   $ 58,774  
    Shareholders’ equity       1,318     1,241  
    Securities, net (1)       1,211     1,318  
    Per share, diluted:        
    Shareholders’ equity (1)     $ 53.76   $ 49.39  
    Securities, net (1)       49.38     52.44  
             
             

    The Company is reporting Total Client Assets (which includes assets under management and assets under advisement) of $169.0 billion as at December 31, 2024, an increase of $110.2 billion from $58.8 billion as at December 31, 2023. The current year’s Total Client Assets include $104.8 billion associated with Charlotte, North Carolina-based Sterling Capital Management LLC (“Sterling”) and Toronto, Canada-based Galibier Capital Management Ltd (“Galibier”), both of which were acquired during the current year.

    The Operating earnings were $38.8 million for the year ended December 31, 2024, compared to $59.8 million in the prior year. EBITDA(1) was $70.9 million in 2024, compared to $85.4 million in the prior year. Both of these measures were dampened by approximately $14.4 million in expenses related to the above mentioned acquisitions and the associated initial integration expenses (“Transitional expenses”).

    Net revenue for the year was $323.4 million, a 34% or $82.2 million increase from $241.2 million in the prior year. The inclusion of Sterling’s and Galibier’s Net revenue accounted for $75.4 million, or 31% of the increase. The remainder of the increase was driven by the growth in Total Client Assets from the prior year, partially offset by lower interest income earned in the current year. Operating expenses were 57% higher in the current year at $284.6 million, compared to $181.3 million in the prior year. The addition of operating expenses from Sterling and Galibier and the related Transitional expenses accounted for 46% of the increase.

    Net gains in 2024 were $77.4 million, compared to Net gains of $57.8 million in 2023, which largely reflect the changes in fair values of the Company’s Securities portfolio, and are consistent with performance of the global financial markets.

    Net earnings attributable to shareholders from continuing operations were $100.1 million in 2024, compared to $100.3 million in 2023.

    Adjusted cash flow from operations(1) in 2024 was $57.5 million, compared to $72.8 million in 2023.

    During 2024, the Company returned to shareholders $35.6 million in dividends and $24.9 million in share buybacks.

    The Company’s Shareholders’ equity as at December 31, 2024 was $1,318 million, or $53.76 per share(1), compared to $1,241 million, or $49.39 per share(1) as at December 31, 2023. The Company’s Securities, net(1) as at December 31, 2024 had a fair value of $1,211 million, or $49.38 per share(1), compared to $1,318 million, or $52.44 per share(1). The decline in the net holdings of Securities was due to the Company utilizing a portion of the portfolio to fund the acquisitions of Sterling and Galibier, share buybacks and tax liabilities arising from the sale of Worldsource businesses in the prior year, partially offset by market appreciation during the year.

    The Board of Directors is pleased to have declared a quarterly eligible dividend of $0.39 per share, an increase of 5%, payable on April 18, 2025, to shareholders of record on April 11, 2025.  

    The Company’s financial results for the past eight quarters are summarized in the following table.

      Dec 31, 2024 Sep 30, 2024 Jun 30, 2024 Mar 31, 2024 Dec 31, 2023 Sep 30, 2023 Jun 30, 2023 Mar 31, 2023
                     
                     
    As at ($ in millions)                
    Total client assets $ 168,979   $ 165,061   $ 58,628   $ 61,316   $ 58,774   $ 56,215   $ 56,527   $ 56,326  
                     
    For the three months ended ($ in thousands)            
    Net revenue $ 98,614   $ 98,128   $ 64,164   $ 62,497   $ 62,245   $ 62,611   $ 61,833   $ 54,493  
    Operating earnings   7,385     4,790     14,333     12,318     13,097     18,474     17,038     11,240  
    Net gains (losses)   64,476     39,392     (39,161 )   12,737     60,747     (17,358 )   (3,736 )   18,134  
    Net earnings (losses) from continuing operations   63,231     39,658     (22,730 )   21,441     68,048     (2,270 )   11,532     24,852  
    Net earnings from discontinued operations                               554,933  
    Net earnings (losses)   63,231     39,658     (22,730 )   21,441     68,048     (2,270 )   11,532     579,785  
    Net earnings (loss) from continuing operations attributable to shareholders   62,849     39,222     (23,137 )   21,167     67,087     (2,506 )   11,145     24,524  
    Net earnings (loss) attributable to shareholders   62,849     39,222     (23,137 )   21,167     67,087     (2,506 )   11,145     487,203  
                     
                     
    Per share amounts (in $)                
    Net earnings (loss) from continuing operations attributable to shareholders    
    Basic $ 2.72   $ 1.69   $ (0.99 ) $ 0.90   $ 2.85   $ (0.11 ) $ 0.47   $ 1.04  
    Diluted   2.58     1.60     (0.99 )   0.86     2.68     (0.11 )   0.45     1.00  
    Net earnings (loss) attributable to shareholders:            
    Basic $ 2.72   $ 1.69   $ (0.99 ) $ 0.90   $ 2.85   $ (0.11 ) $ 0.47   $ 20.27  
    Diluted   2.58     1.60     (0.99 )   0.86     2.68     (0.11 )   0.45     18.79  
                     
    Dividends paid $ 0.37   $ 0.37   $ 0.37   $ 0.34   $ 0.34   $ 0.34   $ 0.34   $ 0.24  
                     
                     
    As at                
    Shareholders’ equity ($ in millions) $ 1,318   $ 1,245   $ 1,223   $ 1,255   $ 1,241   $ 1,201   $ 1,213   $ 1,242  
    Per share amounts (in $)                
    Basic $ 56.54   $ 53.73   $ 52.59   $ 53.69   $ 52.87   $ 50.90   $ 51.11   $ 52.42  
    Diluted   53.76     50.38     49.34     50.30     49.39     47.54     47.63     48.73  
                     
    Total Class A and Common shares outstanding (shares in thousands)   24,647     24,867     24,959     25,136     25,230     25,408     25,609     26,113  
                     

    Guardian Capital Group Limited (Guardian) is a global investment management company servicing institutional, retail and private clients through its subsidiaries. It also manages a proprietary portfolio of securities. Founded in 1962, Guardian’s reputation for steady growth, long-term relationships and its core values of trustworthiness, integrity and stability have been key to its success over six decades. Its Common and Class A shares are listed on the Toronto Stock Exchange as GCG and GCG.A, respectively. To learn more about Guardian, visit www.guardiancapital.com.

    For further information, contact:
       
    Donald Yi
    Chief Financial Officer
    (416) 350-3136
    George Mavroudis
    President and Chief Executive Officer
    (416) 364-8341
       
    Investor Relations: investorrelations@guardiancapital.com.
       

    Caution Concerning Forward-Looking Information

    Certain information included in this press release constitutes forward-looking information within the meaning of applicable Canadian securities laws. All information other than statements of historical fact may be forward-looking information. Forward-looking information is often, but not always, identified by the use of forward-looking terminology such as “outlook”, “objective”, “may”, “will”, “would”, “expect”, “intend”, “estimate”, “anticipate”, “believe”, “should”, “plan”, “continue”, or similar expressions suggesting future outcomes or events or the negative thereof. Forward-looking information in this press release includes, but is not limited to, statements with respect to management’s beliefs, plans, estimates, and intentions, and similar statements concerning anticipated future events, results, circumstances, performance or expectations. Such forward-looking information reflects management’s beliefs and is based on information currently available. All forward-looking information in this press release is qualified by the following cautionary statements.

    Although the Company believes that the expectations reflected in such forward-looking information are reasonable, such information involves known and unknown risks and uncertainties which may cause Guardian’s actual performance and results in future periods to differ materially from any estimates or projections of future performance or results expressed or implied by such forward-looking information. Important factors that could cause actual results to differ materially include but are not limited to: general economic and market conditions, including interest rates, business competition, changes in government regulations, tax laws or tariffs, the duration and severity of pandemics, natural disasters, military conflicts in various parts of the world, as well as those risk factors discussed or referred to in the risk factors section and the other disclosure documents filed by the Company with the securities regulatory authorities in certain provinces of Canada and available at www.sedarplus.ca. The reader is cautioned to consider these factors, uncertainties and potential events carefully and not to put undue reliance on forward-looking information, as there can be no assurance that actual results will be consistent with such forward-looking information.

    The forward-looking information included in this press release is made as of the date of this press release and should not be relied upon as representing the Company’s views as of any date subsequent to the date of this press release.

    (1) Non IFRS Measures
    The Company’s management uses EBITDA, EBITDA attributable to shareholders, including the per share amount, Adjusted cash flows from operations, Adjusted cash flow from operations attributable to shareholders, including the per share amount, Shareholders’ equity per share and Securities per share to evaluate and assess the performance of its business. These measures do not have standardized measures under International Financial Reporting Standards (“IFRS”), and are therefore unlikely to be comparable to similar measures presented by other companies. However, management believes that most shareholders, creditors, other stakeholders and investment analysts prefer to include the use of these measures in analyzing the Company’s results. The Company defines EBITDA as net earnings before interest, income taxes, amortization, and stock-based compensation expenses, net gains or losses and net earnings from discontinued operations. EBITDA attributable shareholders as EBITDA less the amounts attributable to non-controlling interests. The Company defines Adjusted cash flow from operations as net cash from operating activities, net of changes in non-cash working capital items and cash flow from discontinued operations. Adjusted cash flow from operations attributable to shareholders as Adjusted cash flow from operations less the amounts attributable to non-controlling interests. A reconciliation between these measures and the most comparable IFRS measures are as follows:

           
    For the years ended December 31, ($ in thousands)     2024     2023  
           
    Net earnings   $ 101,598   $ 657,095  
    Add (deduct):      
    Net earnings from discontinued operations         (554,933 )
    Income tax expense     14,670     15,474  
    Net gains     (77,444 )   (57,787 )
    Stock-based compensation     4,058     3,587  
    Interest expense     10,362     8,296  
    Amortization     17,630     13,692  
    EBITDA     70,874     85,424  
    Less attributable to non-controlling interests in continuing operations     (2,626 )   (3,177 )
    EBITDA attributable to shareholders   $ 68,248   $ 82,247  
           
           
    For the years ended December 31, ($ in thousands)     2024     2023  
           
    Net cash from operating activities   $ 93,261   $ 81,419  
    Add (deduct):      
    Net cash from operating activities, discontinued operations         (10,087 )
    Net change in non-cash working capital items     (35,725 )   (8,282 )
    Net change in non-cash working capital items, discontinued operations         9,713  
    Adjusted cash flow from operations     57,536     72,763  
    Less attributable to non-controlling interests, continuing operations     (2,652 )   (3,182 )
    Adjusted cash flow from operations attributable to shareholders   $ 54,884   $ 69,581  
           

    The per share amounts for EBITDA attributable to shareholders, Adjusted cash flow from operations attributable to shareholders and Shareholders’ equity are calculated by dividing the amounts by diluted shares, which is calculated in a manner similar to net earnings attributable to shareholders per share.

    Securities, net and Securities, net per share
    Securities, net and Securities, net per share are used by management to indicate the value available to shareholders created by Guardian’s investment in securities, without the netting of debt or deferred income taxes associated with the unrealized gains. The most comparable IFRS measures are “Securities” & “Securities sold short”, which are disclosed in Guardian’s Consolidated Balance Sheet. Securities, net defined as the net sum of Securities and Securities sold short. The per share amount is calculated by dividing the amounts by diluted shares, which is calculated in a manner similar to net earnings attributable to shareholders per share..

    More detailed descriptions of these non-IFRS measures are provided in the Company’s Management’s Discussion and Analysis.

    The MIL Network

  • MIL-OSI Security: Northwest Arkansas Man Sentenced to More Than Four Years in Prison for Operating an Illegal Money Transmitting Business Using Pandemic Funds

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

    FAYETTEVILLE – A Northwest Arkansas man was sentenced on February 20, to 51 months in Federal Prison, followed by three years of supervised release. Additionally, he was ordered to pay restitution of $725,558.00 on one count of operating an Illegal Money Transmitting Business. The Honorable Judge Timothy L. Brooks presided over the sentencing hearing, which took place in the United States District Court in Fayetteville.

    According to court documents, Richard Harold Stone, age 77, waived indictment by a grand jury and pleaded guilty to a criminal information charging him with conducting an unlicensed money transmitting business in the State of Arkansas. Stone was the President or Chief Officer of numerous businesses registered with the Arkansas Secretary of State, including: Partex Oman Corp., Renewable Energy Campus Arkansas, Inc., Stonetek Global Corp., and Tires 2 Energy, LLC. Stone also was associated with Environmental Energy & Finance Corp., a Delaware corporation. The advertised purpose of these businesses was developing technology and facilities to repurpose waste materials, such as tires, into useable fuel sources. None of these businesses were registered with the State of Arkansas as a money transmitting business, as required by Arkansas law (Arkansas Code, Section 23-55-806(b)&(c)).

    Between November 2020 and March 2021, Stone received through various bank accounts associated with the above entities and other accounts under his control, deposits of funds from applications made on behalf of unwitting victims for Paycheck Protection Program (PPP) loans, Economic Impact Disaster Loans (EIDL), and Pandemic Unemployment Assistance (PUA), totaling more than $600,000. After receiving these funds, Stone immediately transferred most of the funds by wire transfer to parties in locations including Berne, Switzerland; London, England; New York, NY; Chennai, India; and Mumbai, India.

    At the conclusion of Thursday’s sentencing hearing, Stone was immediately remanded to the custody of the U.S. Marshals Service.

    U.S. Attorney David Clay Fowlkes of the Western District of Arkansas made the announcement.

    The Internal Revenue Service-Criminal Investigation, Federal Bureau of Investigation, and Department of Labor Office of the Inspector General investigated the case.

    Assistant U.S. Attorney Hunter Bridges is prosecuting the case.

    Related court documents may be found on the Public Access to Electronic Records website at www.pacer.gov.

    MIL Security OSI

  • MIL-OSI: Compass Diversified Reports Fourth Quarter and Full Year 2024 Financial Results

    Source: GlobeNewswire (MIL-OSI)

    WESTPORT, Conn., Feb. 27, 2025 (GLOBE NEWSWIRE) — Compass Diversified (NYSE: CODI) (“CODI” or the “Company”), an owner of leading middle market branded consumer and industrial businesses, announced today its consolidated operating results for the three months and full year ended December 31, 2024.

    “In 2024, we once again delivered strong financial results, achieving double digit sales growth and over 30% growth in our Adjusted EBITDA for the full year,” said Elias Sabo, CEO of Compass Diversified. “In the fourth quarter, we saw both sales and earnings growth accelerate, driven by continued strong performance from our consumer businesses as well as improving performance in our industrial businesses. Our differentiated business model, strong operating companies, and permanent capital base position us to create long-term value for all stakeholders. I want to take this opportunity to thank the CODI team as well as our subsidiary management teams and employees for their hard work fostering innovation, driving exceptional results, and exceeding expectations.”

    Fourth Quarter 2024 – Financial Highlights (vs Q4 2023)

    • Net sales were $620.3 million, up 13.8%
      • Branded consumer net sales increased 15.2% to $403.0 million
      • Industrial net sales increased 11.4% to $217.2 million
    • Subsidiary Adjusted EBITDA, a non-GAAP financial measure, was $140.9 million, up 25%
      • Branded consumer Adjusted EBITDA increased 29.0%
      • Industrial Adjusted EBITDA increased 5.2%
    • Adjusted EBITDA, a non-GAAP financial measure, was $118.2 million, up 29.0%

    Recent Business Highlights

    • Sold Ergobaby for an enterprise value of $104 million on December 27, 2024
    • In Q4 2024 – raised ~$90 million via issuance of preferred shares
      • More than $115 million for full year 2024
      • Flexible, low-cost source of capital
    • In Q4 2024 – re-purchased more than 400,000 common shares
      • Average price of $23.19 per share
    • In January 2025 – raised $300 million in incremental term loan A
      • Initial funding of $200 million; additional $100 million available with six month delayed draw
      • Matures in July 2027, consistent with existing term loan A

    Fourth Quarter and Full Year 2024 Financial Results

    Net sales in the fourth quarter of 2024 were $620.3 million, up 13.8% compared to $544.9 million in the fourth quarter of 2023. For the full year 2024, net sales were $2.2 billion, up 11.9% compared to $2.0 billion a year ago. Growth was driven by the Company’s acquisition of The Honey Pot Co. in January 2024 and continued strong sales growth at Lugano and BOA. On a pro forma basis, assuming CODI had acquired The Honey Pot Co. on January 1, 2023, net sales were up 7% in the full year 2024.

    Branded consumer net sales increased 8% in the fourth quarter of 2024 to $403.0 million compared to the fourth quarter of 2023. On a pro forma basis, branded consumer net sales increased 10% to $1.5 billion in the full year 2024 compared to a year ago.

    Industrial net sales increased 11% in the fourth quarter of 2024 to $217.2 million compared to the fourth quarter of 2023 and remained relatively flat at $729.4 million in the full year 2024 compared to a year ago.

    Operating income for the fourth quarter of 2024 was $60.6 million compared to operating loss of $4.6 million in the fourth quarter of 2023. The increase was primarily due to a $56.8 million non-cash impairment expense associated with PrimaLoft in the fourth quarter of 2023. For the full year 2024, operating income increased 170% to $230.1 million compared to $85.2 million a year ago. The increase was due to an increase in net sales year-over-year, as well as non-cash impairment charges taken in 2023 of $89.4 million.

    Net income in the fourth quarter of 2024 was $23.8 million compared to net income of $139.4 million in the fourth quarter of 2023. For the full year 2024, net income was $47.4 million compared to $262.4 million a year ago. The decreases in net income were due primarily to the $179.5 million gain on the sale of Marucci Sports in November 2023 and the $98.0 million gain on the sale of Advanced Circuits in February 2023.

    Income from continuing operations in the fourth quarter of 2024 was $22.2 million compared to loss from continuing operations of $37.1 million in the fourth quarter of 2023. For the full year 2024, income from continuing operations was $42.3 million compared to loss from continuing operations of $44.8 million a year ago. The increases in net income from continuing operations were primarily due to the non-cash impairment expenses associated with PrimaLoft and Velocity Outdoor in 2023.

    Adjusted Earnings (see “Note Regarding Use of Non-GAAP Financial Measures” below) for the fourth quarter of 2024 was $46.6 million compared to $34.7 million a year ago. For the full year 2024, Adjusted Earnings was $161.6 million compared to $101.2 million a year ago. CODI’s weighted average number of shares outstanding in the fourth quarter of 2024 was 75.51 million compared to 72.43 million in the prior year fourth quarter. For the full year 2024, CODI’s weighted average number of shares outstanding was 75.45 million compared to 72.11 million in 2023.

    Adjusted EBITDA (see “Note Regarding Use of Non-GAAP Financial Measures” below) in the fourth quarter of 2024 was $118.2 million, up 29% compared to $91.6 million in the fourth quarter of 2023. For the full year 2024, Adjusted EBITDA was $424.8 million, up 30% compared to $326.5 million a year ago. The increases were primarily due to strong results at Lugano. Management fees incurred during the fourth quarter and full year were $19.5 million and $74.8 million, respectively.

    Liquidity and Capital Resources

    As of December 31, 2024, CODI had approximately $59.7 million in cash and cash equivalents, $113.5 million outstanding on its revolver, $375.0 million outstanding in term loans, $1.0 billion outstanding in 5.250% Senior Notes due 2029 and $300.0 million outstanding in 5.000% Senior Notes due 2032.

    As of December 31, 2024, the Company had no significant debt maturities until 2027 and had net borrowing availability of approximately $486.6 million under its revolving credit facility.

    Fourth Quarter 2024 Distributions

    On January 3, 2025, CODI’s Board of Directors (the “Board”) declared a fourth quarter distribution of $0.25 per share on the Company’s common shares. The cash distribution was paid on January 23, 2025, to all holders of record of common shares as of January 16, 2025.

    The Board also declared a quarterly distribution of $0.453125 per share on the Company’s 7.250% Series A Preferred Shares (the “Series A Preferred Shares”). The distribution on the Series A Preferred Shares covered the period from, and including, October 30, 2024, up to, but excluding, January 30, 2025. The cash distribution was paid on January 30, 2025, to all holders of record of Series A Preferred Shares as of January 15, 2025.

    The Board also declared a quarterly distribution of $0.4921875 per share on the Company’s 7.875% Series B Preferred Shares (the “Series B Preferred Shares”). The distribution on the Series B Preferred Shares covered the period from, and including, October 30, 2024, up to, but excluding, January 30, 2025. The cash distribution for such period was paid on January 30, 2025, to all holders of record of Series B Preferred Shares as of January 15, 2025.

    The Board also declared a quarterly distribution of $0.4921875 per share on the Company’s 7.875% Series C Preferred Shares (the “Series C Preferred Shares”). The distribution on the Series C Preferred Shares covered the period from, and including, October 30, 2024, up to, but excluding, January 30, 2025. The cash distribution was paid on January 30, 2025, to all holders of record of Series C Preferred Shares as of January 15, 2025.

    CODI expects all cash distributions paid in the 2024 taxable year to be qualified dividends (assuming requisite holding periods are met) since CODI’s earnings and profits in the 2024 taxable year are expected to exceed cash distributions.

    2025 Outlook

    For the full year 2025, CODI expects its current subsidiaries to produce consolidated Subsidiary Adjusted EBITDA (see “Note Regarding Use of Non-GAAP Financial Measures” below) of between $570 million and $610 million. Of this range, CODI expects its branded consumer vertical to produce $440 million to $465 million and its industrial vertical to produce $130 million to $145 million. This estimate is based on the summation of the Company’s expectations for its current subsidiaries in 2025, and is absent additional acquisitions or divestitures, and excludes corporate expenses such as interest expense, management fees paid by CODI and corporate overhead.

    CODI further expects Adjusted EBITDA (see “Note Regarding Use of Non-GAAP Financial Measures” below) including management fees and corporate expenses to be between $480 million and $520 million for the full year 2025.

    In addition, the Company expects to earn between $170 million and $190 million in Adjusted Earnings (see “Note Regarding Use of Non-GAAP Financial Measures” below) for the full year 2025.

    In reliance on the unreasonable efforts exception provided under Item 10(e)(1)(i)(B) of Regulation S-K, CODI has not reconciled 2025 consolidated Subsidiary Adjusted EBITDA, 2025 Adjusted EBITDA or 2025 Adjusted Earnings to their comparable GAAP measure because it does not provide guidance on Income (Loss) from Continuing Operations or Net Income (Loss) or the applicable reconciling items as a result of the uncertainty regarding, and the potential variability of, these items. For the same reasons, CODI is unable to address the probable significance of the unavailable information, which could be material to future results.

    Conference Call

    Management will host a conference call on Thursday, February 27, 2025, at 5:00 p.m. E.T. / 2:00 p.m. P.T. with the Company’s Chief Executive Officer, Elias Sabo, the Company’s Chief Financial Officer, Stephen Keller, and Pat Maciariello, the Chief Operating Officer of Compass Group Management. A live webcast of the call will be available on the Investor Relations section of CODI’s website. To access the call by phone, please go to this link (registration link) and you will be provided with dial in details. To avoid delays, we encourage participants to dial into the conference call 15 minutes ahead of the scheduled start time. A replay of the webcast will also be available for a limited time on the Company’s website.

    Note Regarding Use of Non-GAAP Financial Measures

    Adjusted EBITDA and Adjusted Earnings are non-GAAP measures used by the Company to assess its performance. We have reconciled Adjusted EBITDA to Income (Loss) from Continuing Operations and Adjusted Earnings to Net Income (Loss) on the attached schedules. We consider Income (Loss) from Continuing Operations to be the most directly comparable GAAP financial measure to Adjusted EBITDA and Net Income (Loss) to be the most directly comparable GAAP financial measure to Adjusted Earnings. We believe that Adjusted EBITDA and Adjusted Earnings provides useful information to investors and reflect important financial measures as each excludes the effects of items which reflect the impact of long-term investment decisions, rather than the performance of near-term operations. When compared to Net Income (Loss) and Income (Loss) from Continuing Operations, Adjusted Earnings and Adjusted EBITDA, respectively, are each limited in that they do not reflect the periodic costs of certain capital assets used in generating revenues of our businesses or the non-cash charges associated with impairments, as well as certain cash charges. The presentation of Adjusted EBITDA allows investors to view the performance of our businesses in a manner similar to the methods used by us and the management of our businesses, provides additional insight into our operating results and provides a measure for evaluating targeted businesses for acquisition. The presentation of Adjusted Earnings provides insight into our operating results.

    Pro forma net sales is defined as net sales including the historical net sales relating to the pre-acquisition periods of The Honey Pot Co., assuming that the Company acquired The Honey Pot Co. on January 1, 2023. We have reconciled pro forma net sales to net sales, the most directly comparable GAAP financial measure, on the attached schedules. We believe that pro forma net sales is useful information for investors as it provides a better understanding of sales performance, and relative changes thereto, on a comparable basis. Pro forma net sales is not necessarily indicative of what the actual results would have been if the acquisition had in fact occurred on the date or for the periods indicated nor does it purport to project net sales for any future periods or as of any date.

    In reliance on the unreasonable efforts exception provided under Item 10(e)(1)(i)(B) of Regulation S-K, we have not reconciled 2025 consolidated Subsidiary Adjusted EBITDA, 2025 Adjusted EBITDA or 2025 Adjusted Earnings to their comparable GAAP measures because we do not provide guidance on Net Income (Loss) from Continuing Operations or Net Income (Loss) or the applicable reconciling items as a result of the uncertainty regarding, and the potential variability of, these items. For the same reasons, we are unable to address the probable significance of the unavailable information, which could be material to future results.

    Adjusted EBITDA, Adjusted Earnings and pro forma net sales are not meant to be a substitute for GAAP measures and may be different from or otherwise inconsistent with non-GAAP financial measures used by other companies.

    About Compass Diversified

    Since its IPO in 2006, CODI has consistently executed its strategy of owning and managing a diverse set of highly defensible, middle-market businesses across the branded consumer, industrial, healthcare, and critical outsourced services sectors. The Company leverages its permanent capital base, long-term disciplined approach, and actionable expertise to maintain controlling ownership interests in each of its subsidiaries, maximizing its ability to impact long-term cash flow generation and value creation. The Company provides both debt and equity capital for its subsidiaries, contributing to their financial and operating flexibility. CODI utilizes the cash flows generated by its subsidiaries to invest in the long-term growth of the Company and has consistently generated strong returns through its culture of transparency, alignment and accountability. For more information, please visit compassdiversified.com.

    Forward Looking Statements

    Certain statements in this press release may be deemed forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements include, but are not limited to, statements as to our future performance or liquidity, such as expectations regarding our results of operations and financial condition, our 2025 consolidated Subsidiary Adjusted EBITDA, our 2025 Adjusted EBITDA, our 2025 Adjusted Earnings, our pending acquisitions and divestitures, and other statements with regard to the future performance of CODI. We may use words such as “plans,” “anticipate,” “believe,” “expect,” “intend,” “will,” “should,” “may,” “seek,” “look,” and similar expressions to identify forward-looking statements. The forward-looking statements contained in this press release involve risks and uncertainties. Actual results could differ materially from those implied or expressed in the forward-looking statements for any reason, including the factors set forth in “Risk Factors” and elsewhere in CODI’s annual report on Form 10-K for the year ended December 31, 2024 and its quarterly reports on Form 10-Q. Other factors that could cause actual results to differ materially include: changes in the economy, financial markets and political environment, including changes in inflation, interest rates and U.S. tariff and import/export regulations; risks associated with possible disruption in CODI’s operations or the economy generally due to terrorism, war, natural disasters, social, civil and political unrest or the COVID-19 pandemic; future changes in laws or regulations (including the interpretation of these laws and regulations by regulatory authorities); environmental risks affecting the business or operations of our subsidiaries; disruption in the global supply chain, labor shortages and high labor costs; our business prospects and the prospects of our subsidiaries; the impact of, and ability to successfully complete and integrate, acquisitions that we may make; the ability to successfully complete when we’ve executed divestitures agreements; the dependence of our future success on the general economy and its impact on the industries in which we operate; the ability of our subsidiaries to achieve their objectives; the adequacy of our cash resources and working capital; the timing of cash flows, if any, from the operations of our subsidiaries; and other considerations that may be disclosed from time to time in CODI’s publicly disseminated documents and filings. Undue reliance should not be placed on such forward-looking statements as such statements speak only as of the date on which they are made. Although, except as required by law, CODI undertakes no obligation to revise or update any forward-looking statements, whether as a result of new information, future events or otherwise, you are advised to consult any additional disclosures that CODI may make directly to you or through reports that it in the future may file with the SEC, including annual reports on Form 10-K, quarterly reports on Form 10-Q and current reports on Form 8-K.

    Investor Relations

    Compass Diversified
    irinquiry@compassdiversified.com

    Gateway Group
    Cody Slach
    949.574.3860
    CODI@gateway-grp.com

    Media Relations
    Compass Diversified
    mediainquiry@compassdiversified.com

    The IGB Group        
    Leon Berman
    212-477-8438
    lberman@igbir.com

    Compass Diversified Holdings
    Condensed Consolidated Balance Sheets
           
    (in thousands) December 31, 2024   December 31, 2023
           
    Assets      
    Current assets      
    Cash and cash equivalents $ 59,727   $ 446,684
    Accounts receivable, net   444,386     308,183
    Inventories, net   962,408     723,194
    Prepaid expenses and other current assets   101,129     88,844
    Current assets of discontinued operations       36,915
    Total current assets   1,567,650     1,603,820
    Property, plant and equipment, net   244,746     191,283
    Goodwill   982,253     859,907
    Intangible assets, net   1,049,186     879,078
    Other non-current assets   208,587     195,010
    Non-current assets of discontinued operations       87,883
    Total assets $ 4,052,422   $ 3,816,981
           
    Liabilities and stockholders’ equity      
    Current liabilities      
    Accounts payable $ 104,304   $ 91,089
    Accrued expenses   197,829     151,443
    Due to related parties   18,036     16,025
    Current portion, long-term debt   15,000     10,000
    Other current liabilities   49,617     34,812
    Current liabilities of discontinued operations       8,986
    Total current liabilities   384,786     312,355
    Deferred income taxes   119,948     118,882
    Long-term debt   1,759,290     1,661,879
    Other non-current liabilities   225,334     203,207
    Non-current liabilities of discontinued operations       1,277
    Total liabilities   2,489,358     2,297,600
    Stockholders’ equity      
    Total stockholders’ equity attributable to Holdings   1,296,793     1,326,750
    Noncontrolling interest   266,271     175,875
    Noncontrolling interest of discontinued operations       16,756
    Total stockholders’ equity   1,563,064     1,519,381
    Total liabilities and stockholders’ equity $ 4,052,422   $ 3,816,981
           
    Compass Diversified Holdings
    Consolidated Statements of Operations
            
      Three months ended December 31,   Year ended December 31,
    (in thousands, except per share data)   2024       2023       2024       2023  
    Net revenues $ 620,255     $ 544,915     $ 2,198,233     $ 1,965,017  
    Cost of revenues   349,238       312,972       1,197,873       1,132,014  
    Gross profit   271,017       231,943       1,000,360       833,003  
    Operating expenses:              
    Selling, general and administrative expense   166,256       140,831       587,520       502,013  
    Management fees   19,453       16,784       74,767       67,945  
    Amortization expense   24,735       22,088       99,760       88,396  
    Impairment expense         56,832       8,182       89,400  
    Operating income (loss)   60,573       (4,592 )     230,131       85,249  
    Other income (expense):              
    Interest expense, net   (29,189 )     (24,827 )     (106,683 )     (105,179 )
    Amortization of debt issuance costs   (1,004 )     (1,004 )     (4,018 )     (4,038 )
    Gain (loss) on sale of Crosman             (24,218 )      
    Other income (expense), net   412       (350 )     (3,902 )     1,779  
    Net income (loss) before income taxes   30,792       (30,773 )     91,310       (22,189 )
    Provision for income taxes   8,567       6,290       49,012       22,639  
    Income (loss) from continuing operations   22,225       (37,063 )     42,298       (44,828 )
    Income (loss) from discontinued operations, net of income tax   (7,006 )     (3,026 )     (6,905 )     24,208  
    Gain on sale of discontinued operations   8,612       179,530       11,957       283,025  
    Net income   23,831       139,441       47,350       262,405  
    Less: Net income (loss) attributable to noncontrolling interest   13,631       2,828       37,426       16,423  
    Less: Net income (loss) from discontinued operations attributable to noncontrolling interest   (1,721 )     (824 )     (2,884 )     (304 )
    Net income attributable to Holdings $ 11,921     $ 137,437     $ 12,808     $ 246,286  
                   
    Basic income (loss) per common share attributable to Holdings              
    Continuing operations $ (0.10 )   $ (0.75 )   $ (1.25 )   $ (1.81 )
    Discontinued operations   0.04       2.45       0.11       4.27  
      $ (0.06 )   $ 1.70     $ (1.14 )   $ 2.46  
                   
    Basic weighted average number of common shares outstanding   75,505       72,429       75,454       72,105  
                   
    Cash distributions declared per Trust common share $ 0.25     $ 0.25     $ 1.00     $ 1.00  
                                   
    Compass Diversified Holdings
    Net Income to Non-GAAP Adjusted Earnings and Non-GAAP Adjusted EBITDA – 2024
    (Unaudited)
           
      Three months ended   Year ended
    (in thousands) March 31, 2024   June 30, 2024   September 30, 2024   December 31, 2024   December 31, 2024
    Net income (loss) $ 5,781     $ (13,723 )   $ 31,461     $ 23,831     $ 47,350  
    Income (loss) from discontinued operations, net of tax   317       872       (1,088 )     (7,006 )     (6,905 )
    Gain on sale of discontinued operations, net of tax   3,345                   8,612       11,957  
    Net income (loss) from continuing operations $ 2,119     $ (14,595 )   $ 32,549     $ 22,225     $ 42,298  
    Less: income from continuing operations attributable to noncontrolling interest   7,765       6,041       9,989       13,631       37,426  
    Net income (loss) attributable to Holdings – continuing operations $ (5,646 )   $ (20,636 )   $ 22,560     $ 8,594     $ 4,872  
    Adjustments:                                      
    Distributions paid – preferred shares   (6,045 )     (6,101 )     (6,345 )     (6,967 )     (25,458 )
    Amortization expense – intangible assets and inventory step-up   27,116       26,642       24,956       26,341       105,055  
    Impairment expense   8,182                         8,182  
    Loss (gain) on sale of Crosman         24,606       (388 )           24,218  
    Tax effect – loss on sale of Crosman         7,254                   7,254  
    Non-controlling shareholder compensation   4,071       3,680       4,537       4,057       16,345  
    Acquisition expense   3,479                   1,872       5,351  
    Integration services fee         875       875       875       2,625  
    Other   274       130       964       11,820       13,188  
    Adjusted earnings $ 31,431     $ 36,450     $ 47,159     $ 46,592     $ 161,632  
    Plus (less):                                      
    Depreciation expense   10,730       10,339       10,180       12,642       43,891  
    Income tax provision   9,996       19,830       10,619       8,567       49,012  
    Interest expense   23,575       26,561       27,358       29,189       106,683  
    Amortization of debt issuance costs   1,005       1,004       1,005       1,004       4,018  
    Income from continuing operations attributable to noncontrolling interest   7,765       6,041       9,989       13,631       37,426  
    Tax effect – loss on sale of Crosman         (7,254 )                 (7,254 )
    Preferred distributions   6,045       6,101       6,345       6,967       25,458  
    Other   2,879       1,375       60       (412 )     3,902  
    Adjusted EBITDA $ 93,426     $ 100,447     $ 112,715     $ 118,180     $ 424,768  
                                           
    Compass Diversified Holdings
    Net Income (Loss) to Non-GAAP Adjusted Earnings and Non-GAAP Adjusted EBITDA – 2023
    (Unaudited)
                       
      Three months ended   Year ended
    (in thousands) March 31, 2023   June 30, 2023   September 30, 2023   December 31, 2023   December 31, 2023
    Net income (loss) $ 109,601     $ 17,123     $ (3,760 )   $ 139,441     $ 262,405  
    Income (loss) from discontinued options, net of tax   10,939       5,437       10,858       (3,026 )     24,208  
    Gain on sale of discontinued operations, net of tax   97,989       4,232       1,274       179,530       283,025  
    Net income (loss) from continuing operations $ 673     $ 7,454     $ (15,892 )   $ (37,063 )   $ (44,828 )
    Less: income (loss) from continuing operations attributable to noncontrolling interest   4,398       3,428       5,769       2,828       16,423  
    Net income (loss) attributable to Holdings – continuing operations $ (3,725 )   $ 4,026     $ (21,661 )   $ (39,891 )   $ (61,251 )
    Adjustments:                  
    Distributions paid – preferred shares   (6,045 )     (6,046 )     (6,045 )     (6,045 )     (24,181 )
    Amortization expense – intangible assets and inventory step-up   23,283       22,111       22,090       22,088       89,572  
    Impairment expense               32,568       56,832       89,400  
    Tax effect – impairment expense               (4,308 )     978       (3,330 )
    Non-controlling interest – impairment expense                     (5,382 )     (5,382 )
    Non-controlling shareholder compensation   1,329       2,895       2,438       2,789       9,451  
    Integration services fee   1,187       1,188                 2,375  
    Other   432       348       349       3,377       4,506  
    Adjusted earnings $ 16,461     $ 24,522     $ 25,431     $ 34,746     $ 101,160  
    Plus (less):                  
    Depreciation expense   11,006       11,958       11,853       11,142       45,959  
    Income tax provision   7,471       4,421       4,457       6,290       22,639  
    Interest expense   26,180       26,613       27,559       24,828       105,180  
    Amortization of debt issuance costs   1,005       1,024       1,005       1,004       4,038  
    Income from continuing operations attributable to noncontrolling interest   4,398       3,428       5,769       2,828       16,423  
    Tax effect – impairment expense               4,308       (978 )     3,330  
    Non-controlling interest – impairment expense                     5,382       5,382  
    Distributions paid – preferred shares   6,045       6,046       6,045       6,045       24,181  
    Other   (1,160 )     75       (1,044 )     349       (1,780 )
    Adjusted EBITDA $ 71,406     $ 78,087     $ 85,383     $ 91,636     $ 326,512  
                                           
    Compass Diversified Holdings
    Net Income (Loss) from Continuing Operations to Non-GAAP Consolidated Adjusted EBITDA Reconciliation
    Three Months Ended December 31, 2024
    (Unaudited)
                                                 
    (in thousands)   Corporate     5.11     BOA   Lugano   PrimaLoft   THP   Velocity Outdoor   Altor Solutions   Arnold   Sterno   Consolidated
    Net income (loss) from continuing operations   $ (8,045 )   $ 2,040     $ 4,543     $ 35,133   $ (5,314 )   $ (1,997 )   $ (1,483 )   $ (441 )   $ (9,138 )   $ 6,927     $ 22,225  
    Adjusted for:                                            
    Provision (benefit) for income taxes     (2,095 )     (266 )     1,042       11,294     (2,010 )     (305 )     (264 )     (912 )     (196 )     2,280       8,568  
    Interest expense, net     29,134       (11 )     (5 )         (55 )     (24 )     (1 )           151             29,189  
    Intercompany interest     (41,740 )     3,252       4,409       15,596     4,390       2,725       1,635       5,159       1,808       2,766        
    Depreciation and amortization     51       5,536       5,343       2,763     5,331       4,163       1,363       9,303       2,511       3,623       39,987  
    EBITDA     (22,695 )     10,551       15,332       64,786     2,342       4,562       1,250       13,109       (4,864 )     15,596       99,969  
    Other (income) expense           (46 )     489       280     176       8       (1,177 )     24             (167 )     (413 )
    Non-controlling shareholder compensation           499       1,331       775     559       517       (153 )     247       5       277       4,057  
    Acquisition expenses                                             1,872                   1,872  
    Integration services fee                                 875                               875  
    Other                                       1,500       696       9,546       78       11,820  
    Adjusted EBITDA   $ (22,695 )   $ 11,004     $ 17,152     $ 65,841   $ 3,077     $ 5,962     $ 1,420     $ 15,948     $ 4,687     $ 15,784     $ 118,180  
                                                                                           
    Compass Diversified Holdings
    Net Income (Loss) from Continuing Operations to Non-GAAP Consolidated Adjusted EBITDA Reconciliation
    Three Months Ended December 31, 2023
    (Unaudited)
                                           
    (in thousands) Corporate     5.11     BOA   Lugano   PrimaLoft   Velocity Outdoor   Altor Solutions   Arnold   Sterno   Consolidated
    Net income (loss) from continuing operations $ (12,982 )   $ 9,840     $ 1,345     $ 20,847     $ (64,383 )   $ (3,183 )   $ 4,260   $ 3,523     $ 3,670     $ (37,063 )
    Adjusted for:                                      
    Provision (benefit) for income taxes   301       1,004       639       4,293       (2,549 )     289       1,797     921       (406 )     6,289  
    Interest expense, net   24,732       (4 )     (9 )           (2 )     120           (11 )           24,826  
    Intercompany interest   (33,291 )     4,546       2,548       10,177       4,780       3,440       2,303     1,728       3,769        
    Depreciation and amortization   366       6,143       5,496       2,258       5,394       3,259       4,183     2,193       4,943       34,235  
    EBITDA   (20,874 )     21,529       10,019       37,575       (56,760 )     3,925       12,543     8,354       11,976       28,287  
    Other (income) expense   (1 )   (412 )   (19 )     (75 )     (66 )     (31 )     1,239     (4 )     (280 )     351  
    Non-controlling shareholder compensation         203       950       162       761       228       186     1       298       2,789  
    Impairment expense                           57,810       (978 )                     56,832  
    Other               3,072                                   305       3,377  
    Adjusted EBITDA $ (20,875 )   $ 21,320     $ 14,022     $ 37,662     $ 1,745     $ 3,144     $ 13,968   $ 8,351     $ 12,299     $ 91,636  
                                           
    Compass Diversified Holdings
    Net Income (Loss) from Continuing Operations to Non-GAAP Consolidated Adjusted EBITDA Reconciliation
    Year ended December 31, 2024
    (Unaudited)
                                                 
    (in thousands)   Corporate     5.11     BOA   Lugano   PrimaLoft   THP   Velocity Outdoor   Altor Solutions   Arnold   Sterno   Consolidated
    Net income (loss) from continuing operations   $ (35,634 )   $ 20,634     $ 20,791     $ 94,390   $ (10,575 )   $ (9,761 )   $ (54,851 )   $ 5,635   $ (2,969 )   $ 14,638     $ 42,298
    Adjusted for:                                            
    Provision (benefit) for income taxes     (2,095 )     4,526       4,962       31,304     (3,741 )     (2,894 )     6,810       2,280     2,986       4,874       49,012
    Interest expense, net     106,414       (14 )     (21 )     3     (70 )     (52 )     52           371             106,683
    Intercompany interest     (157,585 )     13,366       20,125       56,013     17,916       10,552       9,255       10,771     7,121       12,466      
    Depreciation and amortization     677       22,734       21,594       10,334     21,318       18,974       8,042       21,553     9,265       18,473       152,964
    EBITDA     (88,223 )     61,246       67,451       192,044     24,848       16,819       (30,692 )     40,239     16,774       50,451       350,957
    Other (income) expense     462       40       511       219     181       3       24,557       2,746     (9 )     (590 )     28,120
    Non-controlling shareholder compensation           2,129       5,683       2,437     2,382       1,674       403       988     18       631       16,345
    Impairment expense                                     8,182                       8,182
    Acquisition expenses                                 3,479             1,872                 5,351
    Integration services fee                                 2,625                             2,625
    Other                                 90       1,500       696     10,426       476       13,188
    Adjusted EBITDA   $ (87,761 )   $ 63,415     $ 73,645     $ 194,700   $ 27,411     $ 24,690     $ 3,950     $ 46,541   $ 27,209     $ 50,968     $ 424,768
                                                                                       
    Compass Diversified Holdings
    Net Income (Loss) from Continuing Operations to Non-GAAP Consolidated Adjusted EBITDA Reconciliation
    Year ended December 31, 2023
    (Unaudited)
                                           
    (in thousands) Corporate     5.11     BOA   Lugano   PrimaLoft   Velocity Outdoor   Altor Solutions   Arnold   Sterno   Consolidated
    Net income (loss) from continuing operations $ (60,454 )   $ 21,690     $ 16,496     $ 52,315     $ (69,883 )   $ (40,045 )   $ 16,504   $ 10,434     $ 8,115     $ (44,828 )
    Adjusted for:                                      
    Provision (benefit) for income taxes   301       4,994       2,863       14,589       (5,673 )     (5,616 )     5,890     4,185       1,106       22,639  
    Interest expense, net   104,855       (8 )     (18 )     4       (11 )     352           5             105,179  
    Intercompany interest   (126,240 )     20,244       7,580       32,837       18,123       13,510       10,486     6,806       16,654        
    Depreciation and amortization   1,498       26,009       22,932       9,229       21,478       13,282       16,741     8,441       19,959       139,569  
    EBITDA   (80,040 )     72,929       49,853       108,974       (35,966 )     (18,517 )     49,621     29,871       45,834       222,559  
    Other (income) expense   (128 )     (515 )     98       (80 )     62       (1,210 )     1,440     (5 )     (1,441 )     (1,779 )
    Non-controlling shareholder compensation         1,191       3,019       1,474       980       914       986     27       860       9,451  
    Impairment expense                           57,810       31,590                       89,400  
    Integration services fee                           2,375                             2,375  
    Other               3,072                                   1,434       4,506  
    Adjusted EBITDA $ (80,168 )   $ 73,605     $ 56,042     $ 110,368     $ 25,261     $ 12,777     $ 52,047   $ 29,893     $ 46,687     $ 326,512  
                                                                                 
    Compass Diversified Holdings
    Adjusted EBITDA
    (Unaudited)
                     
        Three months ended December 31,   Year ended December 31,
    (in thousands)     2024       2023       2024       2023  
                     
    Branded Consumer                
    5.11   $ 11,004     $ 21,320     $ 63,415     $ 73,605  
    BOA     17,152       14,022       73,645       56,042  
    Lugano     65,841       37,662       194,700       110,368  
    PrimaLoft     3,077       1,745       27,411       25,261  
    The Honey Pot Co. (1)     5,962             24,690        
    Velocity Outdoor     1,420       3,144       3,950       12,777  
    Total Branded Consumer   $ 104,456     $ 77,893     $ 387,811     $ 278,053  
                     
    Industrial                
    Altor Solutions   $ 15,948     $ 13,968     $ 46,541     $ 52,047  
    Arnold Magnetics     4,687       8,351       27,209       29,893  
    Sterno     15,784       12,299       50,968       46,687  
    Total Industrial   $ 36,419     $ 34,618     $ 124,718     $ 128,627  
    Corporate expense     (22,695 )     (20,874 )     (87,761 )     (80,168 )
    Total Adjusted EBITDA   $ 118,180     $ 91,637     $ 424,768     $ 326,512  
                                     
    (1 )   The above results for The Honey Pot Co. do not include management’s estimate of Adjusted EBITDA, before the Company’s ownership of $3.9 million for the year ended December 31, 2024, and $7.8 million and $28.7 million, respectively, for the three months and year ended December 31, 2023. The Honey Pot Co. was acquired on January 31, 2024.
         
    Compass Diversified Holdings
    Net Sales to Pro Forma Net Sales Reconciliation
    (unaudited)
             
        Three months ended December 31,   Year ended December 31,
    (in thousands)     2024     2023     2024     2023
                     
    Net Sales   $ 620,255   $ 544,915   $ 2,198,233   $ 1,965,017
    Acquisitions (1)         24,905     10,671     107,311
    Pro Forma Net Sales   $ 620,255   $ 569,820   $ 2,208,904   $ 2,072,328
                             
    (1 )   Acquisitions reflects the net sales for The Honey Pot Co. on a proforma basis as if we had acquired this business on January 1, 2023.
         
    Compass Diversified Holdings
    Subsidiary Pro Forma Net Sales
    (unaudited)
                 
        Three months ended December 31,   Year ended December 31,
    (in thousands)     2024     2023     2024     2023
                     
    Branded Consumer                
    5.11   $ 144,768   $ 147,394   $ 532,161   $ 533,089
    BOA     48,141     42,435     190,811     155,825
    Lugano     149,685     104,750     470,666     308,321
    PrimaLoft     12,708     9,434     74,226     67,053
    The Honey Pot (1)     28,697     24,905     115,260     107,311
    Velocity Outdoor     19,008     45,842     96,427     172,190
    Total Branded Consumer   $ 403,007   $ 374,760   $ 1,479,551   $ 1,343,789
                     
    Industrial                
    Altor Solutions     81,322     56,417     239,068     238,030
    Arnold Magnetics     41,292     44,632     171,837     166,679
    Sterno     94,634     94,011     318,448     323,830
    Total Industrial   $ 217,248   $ 195,060   $ 729,353   $ 728,539
                     
    Total Subsidiary Net Sales   $ 620,255   $ 569,820   $ 2,208,904   $ 2,072,328
                             
    (1 )   Net sales for The Honey Pot are pro forma as if we had acquired this business on January 1, 2023.
         


    Compass Diversified Holdings

    Condensed Consolidated Cash Flows

        Three months ended December 31,   Year ended December 31,
    (in thousands)     2024       2023       2024       2023  
                     
    Net cash provided by (used in) operating activities   $ 9,974     $ 21,128     $ (67,636 )   $ 78,080  
    Net cash provided by (used in) investing activities     (70,199 )     466,213       (422,450 )     570,503  
    Net cash provided by (used in) financing activities     49,732       (102,236 )     100,614       (260,163 )
    Foreign currency impact on cash     (1,727 )     636       (1,278 )     786  
    Net increase (decrease) in cash and cash equivalents     (12,220 )     385,741       (390,750 )     389,206  
    Cash and cash equivalents – beginning of the period(1)     71,947       64,736       450,477       61,271  
    Cash and cash equivalents – end of the period   $ 59,727     $ 450,477     $ 59,727     $ 450,477  
                                     
    (1 )   Includes cash from discontinued operations of $3.8 million at January 1, 2024 and $8.5 million at January 1, 2023.
         
    Compass Diversified Holding
    Selected Financial Data – Cash Flows
                     
        Three months ended December 31,   Year ended December 31,
    (in thousands)     2024       2023       2024       2023  
                     
    Changes in operating assets and liabilities   $         (37,286 )   $         (24,390 )   $         (292,884 )   $         (160,281 )
    Purchases of property and equipment   $         (22,858 )   $         (17,239 )   $         (56,701 )   $         (55,016 )
    Distributions paid – common shares   $         (18,913 )   $         (17,955 )   $         (75,490 )   $         (71,967 )
    Distributions paid – preferred shares   $         (6,967 )   $         (6,045 )   $         (25,458 )   $         (24,181 )

    The MIL Network

  • MIL-OSI: Ponce Bank Re-Designs its Westchester Avenue Bank Branch in the Bronx

    Source: GlobeNewswire (MIL-OSI)

    BRONX, N.Y., Feb. 27, 2025 (GLOBE NEWSWIRE) — Local dignitaries, Ponce Bank officers and administrators, and members of the public will celebrate Ponce Bank’s transformed branch experience at the Grand Re-Opening, set for 12:30 pm, Thursday, February 27, 2025 at Ponce’s Bank Branch, 2244 Westchester Avenue in the Bronx.

    “We incorporated what we’ve learned to be essential in providing service to our customers as well as to our communities. Integrating new technologies and modern design elements yields a branch that is attractive, welcoming, and replete with service options,” says Steve Hamilton, SVP – Designer-in-Residence, who led the project.

    “This branch anchors the new Westchester Banking Development District (BDD) proving daily how critical Community Banks like Ponce are to the neighbors they serve.” explains Carlos P. Naudon, President and Chief Executive Officer of Ponce Bank and Ponce Financial Group, Inc. “This branch re-design is the culmination of decisive internal planning and reflection, as well as concerted outreach to the community at large. The result is nothing short of exemplary, and we are proud to showcase the results of our efforts.” 

    The transformation relaunches a process begun in 2019, and interrupted by the Covid Pandemic, aimed at reinforcing the role of each banking branch as a ‘community hub’ that attracts new depositors and business customers, but anchors Ponce Bank branches as community-centric destinations. The revitalization efforts include Open Tellers that invite a more consultative experience, managers located at a central hub of the branch, private space for sensitive conversations, and meeting spaces as well as open areas with teleconferencing and AV equipment to encourage community-wide gatherings. 

    Steven A. Tsavaris, Chairman of the Board and Executive Chairman of Ponce Bank, notes “We’ve devoted a considerable amount of time, effort and energy to this re-design effort. It’s not simply a new design, but a fresh perspective in the way we interact with our customers and members of the community at large. We feel the success of this endeavor will augur well for our future and we continue to upgrade our branch offices to provide a better experience for customers and feel more open to the overall community. We’re very excited about this effort and look forward to welcoming visitors and friends.” 

    “We are happy to see our investment helping Ponce’s Westchester Avenue Branch reach even more members of the community,” New York State Comptroller Thomas P. DiNapoli said. “Supporting community banking is critically important in creating more access to capital and supporting personal wealth and home ownership. We thank Ponce Bank for their partnership.”

    “Our banks play a crucial role in the economic success of our borough and the well-being of our residents. They are not just places to manage finances—they serve as community hubs, where relationships are built, resources are shared, and local businesses can thrive. I am proud to see institutions like Ponce Bank embody this vision, transforming their branches into vibrant, community-centric destinations that attract new customers and strengthen the ties between the financial sector and the neighborhoods they serve. I want to thank Ponce Bank for being a true partner and good neighbor, especially as they continue to support our borough through their resilience and commitment to helping local residents and businesses grow.” Bronx Borough President Vanessa L. Gibson

    New York State Superintendent of Financial Services Adrienne A. Harris said, “Since joining DFS, my mission has been to ensure that all New Yorkers have access to fair and affordable banking services. The BDD program is an essential tool for DFS to work with banks to enhance the customer experience in the communities they serve.

    “Ponce Bank has been a trusted institution in our neighborhoods, making sure working families and small businesses have access to the financial services they need. This redesigned Westchester Avenue branch is a reflection of their commitment to keeping banking local and rooted in the Bronx. As our communities continue to grow and evolve, it’s great to see institutions like Ponce Bank investing in the people and neighborhoods they serve. I look forward to celebrating this milestone and the opportunities it will bring for Bronxites.” Senator Nathalia Fernandez

    “I am honored to rejoin Ponce Bank on this special occasion for our local depositors in the Southeast Bronx”, said Assembly Member Karines Reyes, R.N., Chair of the NYS Assembly & Senate’s Puerto Rican / Hispanic Task Force. “The reopening and upgrading of Ponce Bank’s Westchester Branch facilities, computer, and customer service systems will help our communities get better access to building wealth and resources. The bank’s leadership, commitment to modernization, and dedication to our community will allow our 21st Century depositors to get 21st Century services, which is a ‘win’ for everyone! I thank Ponce Bank for their hard work on this initiative and look forward to continuing collaboration for the residents of our area.”

    “Ponce Bank has long been a pillar of the Bronx, providing essential financial services and unwavering community support. The newly redesigned Westchester Avenue branch modernizes banking with cutting-edge technology while preserving a welcoming, community-focused approach. Investments like this empower local families and small businesses to thrive, and I congratulate Ponce Bank on this exciting milestone.” New York City Council, Majority Leader Amanda Farías

    “Ponce Bank is an extremely valuable partner and resource for The Bronx, and their reopening of its Westchester Avenue bank branch is a testament to their strong commitment to a borough that has been considered to be a banking desert,” Rob Walsh, President of The Bronx Economic Development Corporation, said. “This will be a tremendous move for the small businesses of The Bronx, as well as the individuals who live and work here in the borough. I look forward to a continued partnership with Ponce Bank.”

     “The Bronx Chamber of Commerce celebrates the grand reopening of Ponce Bank’s Westchester Avenue branch.  Ponce Bank is a true community partner, actively supporting our small businesses, entrepreneurs, and residents. This reimagined branch reflects their commitment to financial empowerment, accessibility, and community building. We look forward to the continued impact of their investment in the Bronx.” Lisa Sorin, President of The Bronx Chamber of Commerce

    “The grand reopening of Ponce Bank’s main branch is an example of this bank’s investment in the community,” Rafael Roger, President of the Business Initiative Corporation of New York, said. “This modernization is Ponce’s investment in the Bronx and the greater New York City Region. The services and capital that Ponce provides creates jobs and housing in our community. Our neighborhoods, small businesses, and non-profits will be the beneficiaries of this facility, and we look forward to our continued partnership with Ponce.”

    “We’re excited to welcome Ponce Bank’s reopening as a Banking Development District in Castle Hill. This new space strengthens access to financial services, empowering local businesses and residents. By fostering economic growth and opportunity, it plays a key role in the continued revitalization of our community.” Sasha Ortiz, Executive Director, Castle Hill BID

    About Ponce Bank … founded in the Bronx in 1960 when most banks fled an area others perceived to be in decline. Our founders saw opportunity in an entrepreneurial community of immigrants and people of color that embodied the diverse cultures that make New York City one of the most innovative and welcoming cities in the world. We focus on supporting small business, providing financial mastery education to our underserved, but highly deserving, communities, and real estate ownership, investment, and development with a particular emphasis on affordable housing. The Bank now has 13 branches and 3 loan production offices throughout the NYC Metro Area, Union City New Jersey and now Coral Gables, Florida and has grown to nearly $3 Billion in assets. Ponce Bank is also now publicly traded (NASDAQ: PDLB). www.poncebank.com

    Media Contact: Fred Yaeger (914) 525-9198

    The MIL Network

  • MIL-OSI: SiriusPoint Announces Closing of CM Bermuda Transaction & Completion of Registered Secondary Offering of 4,106,631 Common Shares by Entities Associated with Daniel S. Loeb

    Source: GlobeNewswire (MIL-OSI)

    HAMILTON, Bermuda, Feb. 27, 2025 (GLOBE NEWSWIRE) — SiriusPoint Ltd. (“SiriusPoint”) (NYSE: SPNT), a global specialty insurer and reinsurer, announced today the closing of its previously announced transaction to repurchase all SiriusPoint common shares and warrants held by CM Bermuda Limited (“CM Bermuda”) for an aggregate purchase price of $733 million. The Company also announced today the completion of the previously announced registered secondary offering of 4,106,631 common shares by entities associated with Daniel S. Loeb (collectively, the “Loeb Entities”).

    Following today’s closing, CM Bermuda has no remaining ownership interest in SiriusPoint and ceases to have any representation on, or observer rights with respect to, SiriusPoint’s board of directors.

    The CM Bermuda transaction is immediately accretive to book value by 4% and is expected to be meaningfully accretive to SiriusPoint’s return on equity and earnings per share.

    As part of the registered secondary offering, SiriusPoint repurchased an aggregate of 500,000 of the common shares offered at the public offering price of $14 per share. Following the completion of the registered secondary offering and the cancellation of the CM Bermuda shares, the Loeb Entities own approximately 9.54% of SiriusPoint’s issued and outstanding common shares.

    SiriusPoint CEO, Scott Egan, said: “The completion of the transactions with CM Bermuda and the Loeb Entities follows a year of significant achievement for SiriusPoint during which we announced strong 2024 results. The completion of both transactions underlines the end of our major repositioning work, while the secondary offering reinforces the increasing investor interest in the business.

    The Company is well positioned to build on the continuing performance momentum of the past two years and drive further value creation for our shareholders in 2025 and beyond.”

    Contacts
    Investor Relations
    Liam Blackledge, SiriusPoint
    Liam.Blackledge@siriuspt.com
    + 44 203 772 3082

    Media
    Sarah Hills, Rein4ce
    Sarah.Hills@rein4ce.co.uk
    + 44 7718 882011 

    About SiriusPoint

    SiriusPoint is a global underwriter of insurance and reinsurance providing solutions to clients and brokers around the world. Bermuda-headquartered with offices in New York, London, Stockholm and other locations, we are listed on the New York Stock Exchange (SPNT). We have licenses to write Property & Casualty and Accident & Health insurance and reinsurance globally. Our offering and distribution capabilities are strengthened by a portfolio of strategic partnerships with Managing General Agents and Program Administrators within our Insurance & Services segment. With over $2.6 billion total capital, SiriusPoint’s operating companies have a financial strength rating of A- (Excellent) from AM Best, S&P and Fitch, and A3 from Moody’s.

    FORWARD-LOOKING STATEMENTS

    We make statements in this press release that are forward-looking statements within the meaning of the U.S. federal securities laws. We intend these forward-looking statements to be covered by the safe harbor provisions for forward-looking statements in the U.S. federal securities laws. These statements involve risks and uncertainties that could cause actual results to differ materially from those contained in the forward-looking statements. These risks and uncertainties include, but are not limited to, the impact of general economic conditions and conditions affecting the insurance and reinsurance industry; the adequacy of our reserves; fluctuation in the results of operations; pandemic or other catastrophic event; uncertainty of success in investing in early-stage companies, such as the risk of loss of an initial investment, highly variable returns on investments, delay in receiving return on investment and difficulty in liquidating the investment; our ability to assess underwriting risk, trends in rates for property and casualty insurance and reinsurance, competition, investment market and investment income fluctuations; trends in insured and paid losses; regulatory and legal uncertainties; and other risk factors described in SiriusPoint’s Annual Report on Form 10-K for the period ended December 31, 2024.

    Except as required by applicable law or regulation, we disclaim any obligation to publicly update or revise any forward-looking statement to reflect changes in underlying assumptions or factors, or new information, data or methods, future events, or other circumstances after the date of this press release.

    The MIL Network

  • MIL-OSI: ARRAY Technologies, Inc. Reports Financial Results for the Fourth Quarter and Full Year 2024

    Source: GlobeNewswire (MIL-OSI)

    Fourth Quarter 2024 Financial Highlights

    • Revenue of $275.2 million
    • Gross Margin of 28.5%
    • Adjusted gross margin(1) of 29.8%
    • Net loss to common shareholders of $(141.2) million
      • Net loss to common shareholders inclusive of $74.0 million non-cash goodwill impairment charge and $91.9 million non-cash long-lived intangible asset write-down associated with the 2022 STI acquisition
    • Adjusted EBITDA(1) of $45.2 million
    • Net loss per basic and diluted share of $(0.93)
    • Adjusted net income per diluted share(1) of $0.16

    Full Year 2024 Financial Highlights

    • Revenue of $915.8 million
    • Gross Margin of 32.5%
    • Adjusted gross margin (1) of 34.1%
    • Net loss to common shareholders of $(296.1) million
      • Net loss to common shareholders inclusive of $236.0 million non-cash goodwill impairment charge and $91.9 million non-cash long-lived intangible asset write-down associated with the 2022 STI acquisition
    • Adjusted EBITDA(1) of $173.6 million
    • Net loss per basic and diluted share of $(1.95)
    • Adjusted net income per diluted share(1) of $0.60
    • Free cash flow(1) of $135.4 million
    • Total executed contracts and awarded orders at December 31, 2024 were $2.0 billion

    ALBUQUERQUE, N.M., Feb. 27, 2025 (GLOBE NEWSWIRE) — ARRAY Technologies (NASDAQ: ARRY) (“ARRAY” or the “Company”), a global leader in utility-scale solar tracking, today announced financial results for its fourth quarter and full year ended December 31, 2024.

    “ARRAY delivered strong fourth quarter and full year 2024 results, we exceeded the mid-point of our fourth quarter revenue guidance and achieved record gross margin on the full year. Our ongoing focus on operational execution continues to translate into robust profitability and healthy cash flow. We finished 2024 with an orderbook of $2 billion, representing 10% year-on-year growth. We are pleased with our results, which delivered significant progress in both market share and commercial growth. Thank you to our employees for their continued focus and hard work. Additionally, we are on track to deliver 100% domestic content solar trackers by the first half of 2025. Our OmniTrack™ product continues to gain traction in the market, and now accounts for over 20% of our orderbook. We are excited about our investment in Swap Robotics, a disruptive technology driving automation in PV installations. We believe the integration of Swap Robotics technology into our product portfolio will drive project efficiencies and cost savings for our customers,” said Chief Executive Officer, Kevin G. Hostetler.

    Mr. Hostetler continued, “While persistent headwinds, including permitting and interconnection delays, shortages of high-voltage circuit breakers and transformers, and labor constraints—continue to impact project timelines in the United States, we experienced the market stabilizing by year-end, in contrast to the delays experienced in the middle of the year. In Europe, we anticipate modest growth in 2025 as we are well positioned to capture additional market share. However, in Brazil, macro factors such as currency devaluation, volatile interest rates, and newly introduced tariffs on solar components have impacted growth. For 2025, at the midpoint of our guidance, ARRAY expects to deliver over 20% year-over-year revenue growth. We are optimistic about future demand growth for utility-scale solar energy both domestically and internationally and confident that our value proposition in the industry will continue to propel growth for years to come.”

    First Quarter and Full Year 2025 Guidance

    Given the uncertainty in the utility-scale solar energy market and headwinds we experienced during 2024 which pushed out project timelines, we are providing guidance for the first quarter of 2025. It is not our intention to provide quarterly guidance in the future. For the quarter ending March 31, 2025, the Company expects:

    • Revenue to be in the range of $260 million to $270 million
    • Adjusted EBITDA margin(2) to be in the range of 11% to 13%

    For the year ending December 31, 2025, the Company expects:

    • Revenue to be in the range of $1.05 billion to $1.15 billion
    • Adjusted EBITDA(2) to be in the range of $180 million to $200 million
    • Adjusted net income per share(2) to be in the range of $0.60 to $0.70

    Supplemental Presentation and Conference Call Information

    ARRAY has posted a supplemental presentation to its website, which will be discussed during the conference call hosted by management today (February 27, 2025) at 5:00 p.m. (ET). The conference call can be accessed live over the phone by dialing (877)-869-3847 (domestic) or (201)-689-8261 (international) and entering the passcode 13750627 or via webcast of the live conference call by logging onto the Investor Relations sections of the Company’s website at http://ir.arraytechinc.com. A telephonic replay will be available approximately three hours after the call by dialing (877)-660-6853 (domestic), or (201)-612-7415 (international) with the passcode 13750627. The replay will be available until 11:59 p.m. (ET) on March 13, 2025. The online replay will be available for 30 days on the same website immediately following the call.

    About ARRAY Technologies, Inc.

    ARRAY Technologies (NASDAQ: ARRY) is a leading global provider of solar tracking technology to utility-scale and distributed generation customers, who construct, develop, and operate solar PV sites. With solutions engineered to withstand the harshest weather conditions, ARRAY’s high-quality solar trackers, software platforms and field services combine to maximize energy production and deliver value to our customers for the entire lifecycle of a project. Founded and headquartered in the United States, ARRAY is rooted in manufacturing and driven by technology – relying on its domestic manufacturing, diversified global supply chain, and customer-centric approach to design, deliver, commission, train, and support solar energy deployment around the world. For more news and information on ARRAY, please visit arraytechinc.com.

    Investor Relations Contact:
    Keith Jennings
    505-437-0010
    investors@arraytechinc.com

    Media Contact:
    Nicole Stewart
    505-589-8257

    Forward-Looking Statements

    This press release contains forward-looking statements that are based on our management’s beliefs and assumptions and on information currently available to our management. Forward-looking statements include information concerning our possible or assumed future results of operations, business strategies, technology or product developments, financing and investment plans, dividend policy, competitive position, industry and regulatory environment, potential growth opportunities and the effects of competition. Forward-looking statements include statements that are not historical facts and can be identified by terms such as “anticipate,” “believe,” “could,” “estimate,” “expect,” “anticipates,” “intend,” “may,” “plan,” “potential,” “predict,” “project,” “seek,” “should,” “will,” “would,” “designed to” or similar expressions and the negatives of those terms.

    ARRAY’s actual results and the timing of events could materially differ from those anticipated in such forward-looking statements as a result of certain risks, uncertainties and other factors, including without limitation: changes in growth or rate of growth in demand for solar energy projects; competitive pressures within our industry; factors affecting viability and demand for solar energy, including but not limited to, the retail price of electricity, availability of in-demand components like high voltage breakers, various policies related to the permitting and interconnection costs of solar plants, and the availability of incentives for solar energy and solar energy production systems, which makes it difficult to predict our future prospects; competition from conventional and renewable energy sources; a loss of one or more of our significant customers, their inability to perform under their contracts, or their default in payment; a drop in the price of electricity derived from the utility grid or from alternative energy sources; fluctuations in our results of operations across fiscal periods, which could make our future performance difficult to predict and could cause our results of operations for a particular period to fall below expectations; any increase in interest rates, or a reduction in the availability of tax equity or project debt capital in the global financial markets, which could make it difficult for customers to finance the cost of a solar energy system; existing electric utility industry policies and regulations, and any subsequent changes or new related policies and regulations, may present technical, regulatory and economic barriers to the purchase and use of solar energy systems, which may significantly reduce demand for our products or harm our ability to compete; the interruption of the flow of materials from international vendors, which could disrupt our supply chain, including as a result of the imposition of new and/or additional duties, tariffs and other charges or restrictions on imports and exports; changes in the global trade environment, including the imposition of import tariffs or other import restrictions; geopolitical, macroeconomic and other market conditions unrelated to our operating performance including but not limited to a pandemic, the Ukraine-Russia war, attacks on shipping in the Red Sea, conflict in the Middle East, and inflation and interest rates; our ability to convert our orders in backlog into revenue; the reduction, elimination or expiration, or our failure to optimize the benefits of government incentives for, or regulations mandating the use of, renewable energy and solar energy, particularly in relation to our competitors; failure to, or incurrence of significant costs in order to, obtain, maintain, protect, defend or enforce, our intellectual property and other proprietary right; delays in construction projects and any failure to manage our inventory; significant changes in the cost of raw materials; disruptions to transportation and logistics, including increases in shipping costs; defects or performance problems in our products, which could result in loss of customers, reputational damage and decreased revenue; delays, disruptions or quality control problems in our product development operations; our ability to retain our key personnel or failure to attract additional qualified personnel; additional business, financial, regulatory and competitive risks due to our continued planned expansion into new markets; cybersecurity or other data incidents, including unauthorized disclosure of personal or sensitive data or theft of confidential information; a failure to maintain an effective system of integrated internal controls over financial reporting; our substantial indebtedness, risks related to actual or threatened public health epidemics, pandemics, outbreaks or crises; changes to laws and regulations, including changes to tax laws and regulations, that are applied adversely to us or our customers, including our ability to optimize those changes brought about by the passage of the Inflation Reduction Act or any repeal thereof; and the other risks and uncertainties described in more detail in the Company’s most recent Annual Report on Form 10-K and other documents on file with the SEC, each of which can be found on our website, www.arraytechinc.com.

    Except as required by law, we assume no obligation to update these forward-looking statements, or to update the reasons actual results could differ materially from those anticipated in these forward-looking statements, even if new information becomes available in the future.

    Non-GAAP Financial Information

    This press release includes certain financial measures that are not presented in accordance with U.S. generally accepted accounting principles (“GAAP”), including Adjusted gross profit, Adjusted gross margin, Adjusted EBITDA, Adjusted net income, Adjusted net income per share, Adjusted general and administrative expense and Free cash flow.

    We define Adjusted gross profit as gross profit plus (i) amortization of developed technology and (ii) other costs if applicable. We define Adjusted gross margin as Adjusted gross profit as a percentage of revenue. We define Adjusted EBITDA as net income (loss) plus (i) other expense, net, (ii) foreign currency (gain) loss, net, (iii) preferred dividends and accretion, (iv) interest expense, (v) income tax (benefit) expense, (vi) depreciation expense, (vii) amortization of intangibles, (viii) amortization of developed technology, (ix) equity-based compensation, (x) change in fair value of contingent consideration, (xi) impairment of long-lived assets, (xii) goodwill impairment, (xiii) certain legal expenses, and (xiv) other costs. We define Adjusted net income as net income (loss) to common shareholders plus (i) amortization of intangibles, (ii) amortization of developed technology, (iii) amortization of debt discount and issuance costs (iv) preferred accretion, (v) equity-based compensation, (vi) change in fair value of contingent consideration, (vii) impairment of long-lived assets, (viii) goodwill impairment, (ix) certain legal expenses, (x) other costs, and (xi) income tax (benefit) expense adjustments. We define Adjusted general and administrative expense as general and administrative expense less (i) equity based compensation, (ii) certain legal expenses, (iii) other costs and (iv) income tax expense adjustments. We define Free cash flow as Cash provided by (used in) operating activities less purchase of property, plant and equipment and cash payments for the acquisition of right-of-use assets.

    A detailed reconciliation between GAAP results and results excluding special items (“non-GAAP”) is included within this presentation. We calculate net income (loss) per share as net income (loss) to common shareholders divided by the basic and diluted weighted average number of shares outstanding for the applicable period and we define Adjusted net income per share as Adjusted net income (as detailed above) divided by the basic and diluted weighted average number of shares outstanding for the applicable period.

    We believe that these non-GAAP financial measures are provided to enhance the reader’s understanding of our past financial performance and our prospects for the future. Our management team uses these non-GAAP financial measures in assessing the Company’s performance, as well as in planning and forecasting future periods. The non-GAAP financial information is presented for supplemental informational purposes only and should not be considered a substitute for financial information presented in accordance with GAAP and may be different from similarly titled non-GAAP measures used by other companies.

    Among other limitations, Adjusted gross profit, Adjusted gross margin, Adjusted EBITDA and Adjusted net income do not reflect our cash expenditures, or future requirements, for capital expenditures or contractual commitments; do not reflect the impact of certain cash charges resulting from matters we consider not to be indicative of our ongoing operations; do not reflect income tax expense or benefit; and other companies in our industry may calculate Adjusted gross profit, Adjusted gross margin, Adjusted EBITDA and Adjusted net income differently than we do, which limits their usefulness as comparative measures. Because of these limitations, Adjusted gross profit, Adjusted gross margin, Adjusted EBITDA and Adjusted net income should not be considered in isolation or as substitutes for performance measures calculated in accordance with GAAP.

    We compensate for these limitations by relying primarily on our GAAP results and using Adjusted gross profit, Adjusted gross margin, Adjusted EBITDA and Adjusted net income on a supplemental basis.

    You should review the reconciliation of gross profit to Adjusted gross profit and net income (loss) to Adjusted EBITDA and Adjusted net income below and not rely on any single financial measure to evaluate our business.

    (1) A reconciliation of the most comparable GAAP measure to its Non-GAAP measure is included below.
    (2) A reconciliation of projected Adjusted gross profit, Adjusted gross margin, Adjusted EBITDA and Adjusted net income per share, which are forward-looking measures that are not prepared in accordance with GAAP, to the most directly comparable GAAP financial measures, is not provided because we are unable to provide such reconciliation without unreasonable effort. The inability to provide a quantitative reconciliation is due to the uncertainty and inherent difficulty predicting the occurrence, the financial impact and the periods in which the components of the applicable GAAP measures and non-GAAP adjustments may be recognized. The GAAP measures may include the impact of such items as non-cash share-based compensation, revaluation of the fair-value of our contingent consideration, and the tax effect of such items, in addition to other items we have historically excluded from Adjusted EBITDA and Adjusted net income per share. We expect to continue to exclude these items in future disclosures of these non-GAAP measures and may also exclude other similar items that may arise in the future (collectively, “non-GAAP adjustments”). The decisions and events that typically lead to the recognition of non-GAAP adjustments are inherently unpredictable as to if or when they may occur. As such, for our 2025 outlook, we have not included estimates for these items and are unable to address the probable significance of the unavailable information, which could be material to future results.

    Array Technologies, Inc. and Subsidiaries
    Consolidated Balance Sheets (unaudited)
    (in thousands, except per share and share amounts)
     
      December 31,
        2024       2023  
    ASSETS
    Current assets      
    Cash and cash equivalents $ 362,992     $ 249,080  
    Restricted cash   1,149        
    Accounts receivable, net   275,838       332,152  
    Inventories   200,818       161,964  
    Prepaid expenses and other   157,927       89,085  
    Total current assets   998,724       832,281  
           
    Property, plant and equipment, net   26,222       27,893  
    Goodwill   160,189       435,591  
    Other intangible assets, net   181,409       354,389  
    Deferred income tax assets   17,754       15,870  
    Other assets   41,701       40,717  
    Total assets $ 1,425,999     $ 1,706,741  
           
    LIABILITIES, REDEEMABLE PERPETUAL PREFERRED STOCK AND STOCKHOLDERS’ EQUITY
    Current liabilities      
    Accounts payable $ 172,368     $ 119,498  
    Accrued expenses and other   91,183       70,211  
    Accrued warranty reserve   2,063       2,790  
    Income tax payable   5,227       5,754  
    Deferred revenue   119,775       66,488  
    Current portion of contingent consideration   1,193       1,427  
    Current portion of debt   30,714       21,472  
    Other current liabilities   15,291       48,051  
    Total current liabilities   437,814       335,691  
           
    Deferred income tax liabilities   21,398       66,858  
    Contingent consideration, net of current portion   7,868       8,936  
    Other long-term liabilities   18,684       20,428  
    Long-term warranty   4,830       3,372  
    Long-term debt, net of current portion   646,570       660,948  
    Total liabilities   1,137,164       1,096,233  
           
    Commitments and contingencies (Note 16)      
           
    Series A Redeemable Perpetual Preferred Stock: $0.001 par value; 500,000 shares authorized; 460,920 and 432,759 issued, respectively; liquidation preference of $493.1 million at both dates   406,931       351,260  
           
    Stockholders’ equity      
    Preferred stock $0.001 par value – 4,500,000 shares authorized; none issued at respective dates          
    Common stock $0.001 par value – 1,000,000,000 shares authorized; 151,951,652 and 151,242,120 shares issued at respective dates   151       151  
    Additional paid-in capital   297,780       344,517  
    Accumulated deficit   (370,624 )     (130,230 )
    Accumulated other comprehensive income (loss)   (45,403 )     44,810  
    Total stockholders’ equity   (118,096 )     259,248  
    Total liabilities, redeemable perpetual preferred stock and stockholders’ equity $ 1,425,999     $ 1,706,741  
    Array Technologies, Inc. and Subsidiaries
    Consolidated Statements of Operations (unaudited)
    (in thousands, except per share amounts)
     
      Three Months Ended
    December 31,
      Year Ended
    December 31,
        2024       2023       2024       2023  
    Revenue $ 275,232     $ 341,615     $ 915,807     $ 1,576,551  
    Cost of revenue:              
    Cost of product and service revenue   193,273       253,746       603,572       1,146,442  
    Amortization of developed technology   3,640       3,640       14,558       14,558  
    Total cost of revenue   196,913       257,386       618,130       1,161,000  
    Gross profit   78,319       84,229       297,677       415,551  
                   
    Operating expenses:              
    General and administrative   45,663       43,710       160,567       159,535  
    Change in fair value of contingent consideration   396       732       125       2,964  
    Depreciation and amortization   8,702       9,567       36,086       38,928  
    Long-lived assets impairment   91,904             91,904      
    Goodwill impairment   74,000             236,000        
    Total operating expenses   220,665       54,009       524,682       201,427  
                   
    (Loss) income from operations   (142,346 )     30,220       (227,005 )     214,124  
                   
    Other income (expense), net   654       (888 )     (1,008 )     (1,015 )
    Interest income   4,092       2,206       16,777       8,330  
    Foreign currency (loss) gain, net   (3,442 )     (326 )     (4,515 )     (53 )
    Interest expense   (9,007 )     (8,857 )     (34,825 )     (44,229 )
    Total other (expense) income   (7,703 )     (7,865 )     (23,571 )     (36,967 )
                   
    (Loss) income before income tax expense (benefit)   (150,049 )     22,355       (250,576 )     177,157  
    Income tax (benefit) expense   (23,146 )     3,013       (10,182 )     39,917  
    Net (loss) income   (126,903 )     19,342       (240,394 )     137,240  
    Preferred dividends and accretion   14,338       13,332       55,670       51,691  
    Net (loss) income to common shareholders $ (141,241 )   $ 6,010     $ (296,064 )   $ 85,549  
                   
    (Loss) income per common share              
    Basic $ (0.93 )   $ 0.04     $ (1.95 )   $ 0.57  
    Diluted $ (0.93 )   $ 0.04     $ (1.95 )   $ 0.56  
                   
    Weighted average common shares outstanding              
    Basic   151,944       151,175       151,754       150,942  
    Diluted   151,944       152,110       151,754       152,022  
    Array Technologies, Inc. and Subsidiaries
    Consolidated Statements of Cash Flows (unaudited)
    (in thousands)
     
      Three Months Ended
    December 31,
      Year Ended
    December 31,
        2024       2023       2024       2023  
    Operating activities:              
    Net income (loss) $ (126,903 )   $ 19,342     $ (240,394 )   $ 137,240  
    Adjustments to net income (loss):              
    Goodwill impairment   74,000             236,000        
    Impairment of long-lived assets   91,904             91,904        
    Provision for bad debts   (1,357 )     2,644       2,058       2,527  
    Deferred tax benefit   (30,371 )     (6,534 )     (37,650 )     (8,862 )
    Depreciation and amortization   9,206       9,950       38,221       40,268  
    Amortization of developed technology   3,640       3,640       14,558       14,558  
    Amortization of debt discount and issuance costs   1,435       1,447       6,087       10,570  
    Gain on debt refinancing         (457 )           (457 )
    Equity-based compensation   3,498       2,845       10,349       14,540  
    Change in fair value of contingent consideration   396       732       125       2,964  
    Warranty provision   3,127       1,075       3,163       4,666  
    Write-down of inventories   442       1,844       2,923       6,431  
    Changes in operating assets and liabilities, net of business acquisition:              
    Accounts receivable   (442 )     99,164       41,423       92,800  
    Inventories   (14,823 )     54,189       (44,787 )     66,743  
    Income tax receivables   33       (3,156 )     (4,112 )     9  
    Prepaid expenses and other   (24,505 )     (8,700 )     (69,708 )     (10,840 )
    Accounts payable   24,475       (52,097 )     58,180       (37,654 )
    Accrued expenses and other   34,492       (10,019 )     (436 )     5,325  
    Income tax payable   3,790       2,666       (863 )     1,936  
    Lease liabilities   (2,894 )     9,227       (8,624 )     1,177  
    Deferred revenue   8,443       (33,821 )     55,563       (111,986 )
    Net cash provided by operating activities   57,586       93,981       153,980       231,955  
    Investing activities              
    Purchase of property, plant and equipment   (1,701 )     (5,374 )     (7,305 )     (16,989 )
    Retirement/disposal of property, plant and equipment   (4 )     168       34       168  
    Cash payments for the acquisition of right-of-use assets   (11,276 )           (11,276 )      
    SAFE Investment   (3,000 )           (3,000 )      
    Sale of equity investment               11,975        
    Net cash used in investing activities   (15,981 )     (5,206 )     (9,572 )     (16,821 )
    Financing activities              
    Series A equity issuance costs                     (1,509 )
    Tax withholding related to vesting of equity-based compensation   (18 )           (1,752 )      
    Proceeds from issuance of other debt   74,035       2,795       93,059       63,311  
    Principal payments on term loan facility   (1,075 )     (1,075 )     (4,300 )     (74,300 )
    Principal payments on other debt   (72,545 )     (19,039 )     (97,424 )     (88,063 )
    Contingent consideration payments               (1,427 )     (1,200 )
    Net cash used in financing activities   397       (17,319 )     (11,844 )     (101,761 )
    Effect of exchange rate changes on cash and cash equivalent balances   (10,233 )     3,614       (17,503 )     1,806  
    Net change in cash and cash equivalents   31,769       75,070       115,061       115,179  
    Cash and cash equivalents and restricted cash, beginning of period   332,372       174,010       249,080       133,901  
    Cash and cash equivalents and restricted cash, end of period $ 364,141     $ 249,080     $ 364,141     $ 249,080  
                   
    Supplemental cash flow information              
    Cash paid for interest $ 8,989     $ 8,995     $ 38,655     $ 43,949  
    Cash paid for income taxes (net of refunds) $ 2,746     $ 9,145     $ 27,966     $ 45,942  
                   
    Non-cash investing and financing              
    Dividends accrued on Series A $ (13,668 )   $ 6,803     $ 7,246     $ 26,370  
    Array Technologies, Inc.
    Adjusted Gross Profit, Adjusted EBITDA, Adjusted Net Income, General and Administrative Expense, and Free Cash Flow Reconciliation (unaudited)
    (in thousands, except per share amounts)
     

    The following table reconciles Gross profit to Adjusted gross profit:

      Three Months Ended
    December 31,
      Year Ended
    December 31,
        2024       2023       2024       2023  
    Revenue   275,232       341,615       915,807       1,576,551  
    Cost of revenue   196,913       257,386       618,130       1,161,000  
    Gross profit   78,319       84,229       297,677       415,551  
    Gross margin   28.5 %     24.7 %     32.5 %     26.4 %
                   
    Amortization of developed technology   3,640       3,640       14,558       14,558  
    Adjusted gross profit   81,959       87,869       312,235       430,109  
    Adjusted gross margin   29.8 %     25.7 %     34.1 %     27.3 %
     

    The following table reconciles Net income to Adjusted EBITDA:

      Three Months Ended
    December 31,
      Year Ended
    December 31,
        2024       2023       2024       2023  
    Net (loss) income $ (126,903 )   $ 19,342     $ (240,394 )   $ 137,240  
    Preferred dividends and accretion   14,338       13,332       55,670       51,691  
    Net (loss) income to common shareholders $ (141,241 )   $ 6,010     $ (296,064 )   $ 85,549  
    Other expense, net   (4,746 )     (1,318 )     (15,769 )     (7,315 )
    Foreign currency loss (gain), net   3,442       326       4,515       53  
    Preferred dividends and accretion   14,338       13,332       55,670       51,691  
    Interest expense   9,007       8,857       34,825       44,229  
    Income tax (benefit) expense   (23,146 )     3,013       (10,182 )     39,917  
    Depreciation expense   1,140       772       4,410       2,669  
    Amortization of intangibles   8,142       9,186       33,811       37,607  
    Amortization of developed technology   3,640       3,640       14,558       14,558  
    Equity-based compensation   3,498       2,648       10,349       14,578  
    Change in fair value of contingent consideration   396       732       125       2,964  
    Long-lived assets impairment   91,904             91,904        
    Goodwill impairment   74,000             236,000        
    Certain legal expenses(a)   2,240       244       6,773       898  
    Other costs(b)   2,586       736       2,628       736  
    Adjusted EBITDA $ 45,200     $ 48,178     $ 173,553     $ 288,134  
     

    (a) Represents certain legal fees and other related costs associated with (i) Actions filed against the company and certain officers and directors alleging violations of the Securities Exchange Acts of 1934 and 1933, which litigation was dismissed with prejudice by the Court on May 19, 2023 and subsequently appealed. The appeal has been fully briefed, argued, and the Company is awaiting a decision, and (ii) legal and success fees related to a regional tax dispute for a period prior to the acquisition of STI, and (iii) other litigation and legal matters. We consider these costs not representative of legal costs that we will incur from time to time in the ordinary course of our business.

    (b) For the three months ended December 31, 2024, other costs represent costs related to the settlement of a regional tax dispute for a period prior to the acquisition of STI. For the twelve months ended December 31, 2024, other costs also include costs related to Capped-Call accounting treatment evaluation and the settlement of a regional tax dispute. For the three months ended December 31, 2023, other costs represent costs related to Capped-Call accounting treatment evaluation.

    The following table reconciles Net income to Adjusted net income:

      Three Months Ended
    December 31,
      Year Ended
    December 31,
        2024       2023       2024       2023  
    Net (loss) income $ (126,903 )   $ 19,342     $ (240,394 )   $ 137,240  
    Preferred dividends and accretion   14,338       13,332       55,670       51,691  
    Net (loss) income to common shareholders $ (141,241 )   $ 6,010     $ (296,064 )   $ 85,549  
    Amortization of intangibles   8,142       9,187       33,811       37,607  
    Amortization of developed technology   3,640       3,640       14,558       14,558  
    Amortization of debt discount and issuance costs   1,547       1,447       6,199       10,570  
    Preferred accretion   7,093       6,528       27,510       25,320  
    Equity based compensation   3,498       2,648       10,349       14,578  
    Change in fair value of contingent consideration   396       732       125       2,964  
    Impairment of long-lived assets   91,904             91,904        
    Goodwill impairment   74,000             236,000        
    Certain legal expenses(a)   2,240       244       6,773       898  
    Other costs(b)   2,586       736       2,628       736  
    Income tax expense adjustments(c)   (28,688 )     (4,757 )     (42,596 )     (20,863 )
    Adjusted net income $ 25,117     $ 26,415     $ 91,197     $ 171,917  
                   
    (Loss) income per common share              
    Basic $ (0.93 )   $ 0.04     $ (1.95 )   $ 0.57  
    Diluted $ (0.93 )   $ 0.04     $ (1.95 )   $ 0.56  
    Weighted average number of common shares outstanding              
    Basic   151,944       151,175       151,754       150,942  
    Diluted   151,944       152,110       151,754       152,022  
                   
    Adjusted net income per common share              
    Basic $ 0.17     $ 0.17     $ 0.60     $ 1.14  
    Diluted $ 0.16     $ 0.17     $ 0.60     $ 1.13  
    Weighted average number of common shares outstanding              
    Basic   151,944       151,175       151,754       150,942  
    Diluted   152,255       152,110       152,285       152,022  
     

    (a) Represents certain legal fees and other related costs associated with (i) Actions filed against the company and certain officers and directors alleging violations of the Securities Exchange Acts of 1934 and 1933, which litigation was dismissed with prejudice by the Court on May 19, 2023 and subsequently appealed. The appeal has been fully briefed, argued, and the Company is awaiting a decision, and (ii) legal and success fees related to a regional tax dispute for a period prior to the acquisition of STI and (iii) other litigation and legal matters. We consider these costs not representative of legal costs that we will incur from time to time in the ordinary course of our business.

    (b) For the three months ended December 31, 2024, other costs represent costs related to the settlement of a regional tax dispute for a period prior to the acquisition of STI. For the twelve months ended December 31, 2024, other costs also include costs related to Capped-Call accounting treatment evaluation and the settlement of a tax dispute. For the three months ended December 31, 2023, other costs represent costs related to Capped-Call accounting treatment evaluation.

    (c) Represents the estimated tax impact of all Adjusted Net Income add-backs, excluding those which represent permanent differences between book versus tax.

    The following table reconciles General and administrative expense to Adjusted general and administrative expense:

           
      Three Months Ended
    December 31,
      Year Ended
    December 31,
        2024       2023       2024       2023  
    General and administrative expense   45,663       43,710       160,567       159,535  
    Equity based compensation   3,498       2,648       10,349       14,578  
    Certain legal expenses(a)   2,240       244       6,773       898  
    Other costs(b)   2,586       736       2,628       736  
    Income tax expense adjustments(c)   (28,688 )     (4,757 )     (42,596 )     (20,863 )
    Adjusted general and administrative expense   25,299       42,581       137,721       154,884  
     

    (a) Represents certain legal fees and other related costs associated with (i) Actions filed against the company and certain officers and directors alleging violations of the Securities Exchange Acts of 1934 and 1933, which litigation was dismissed with prejudice by the Court on May 19, 2023 and subsequently appealed. The appeal has been fully briefed, argued, and the Company is awaiting a decision, and (ii) legal and success fees related to a regional tax dispute for a period prior to the acquisition of STI and (iii) other litigation and legal matters. We consider these costs not representative of legal costs that we will incur from time to time in the ordinary course of our business.

    (b) For the three months ended December 31, 2024, other costs represent costs related to the settlement of a regional tax dispute for a period prior to the acquisition of STI. For the twelve months ended December 31, 2024, other costs also include costs related to Capped-Call accounting treatment evaluation and the settlement of a tax dispute. For the Three months ended December 31, 2023, other costs represent costs related to Capped-Call accounting treatment evaluation.

    (c) Represents the estimated tax impact of all Adjusted Net Income add-backs, excluding those which represent permanent differences between book versus tax.

    The following table reconciles new cash provided by operating activities to Free cash flow:

      Three Months Ended
    December 31,
      Year Ended
    December 31,
        2024       2023       2024       2023  
    Net cash provided by operating activities   57,586       93,981       153,980       231,955  
    Purchase of property, plant and equipment   (1,701 )     (5,374 )     (7,305 )     (16,989 )
    Cash payments for the acquisition of right-of-use assets   (11,276 )           (11,276 )      
    Free cash flow   44,609       88,607       135,399       214,966  

    The MIL Network

  • MIL-OSI Security: Mount Vernon Native Sentenced To 11 Years In Prison For Orchestrating $7.6 Million COVID-19 Fraud Scheme

    Source: Office of United States Attorneys

    Jacob Carter Personally Received Over $1.7 Million in Kickbacks for Obtaining U.S. Small Business Administration Economic Injury Disaster Loans for Over 1,000 Applicants

    Matthew Podolsky, the Acting United States Attorney for the Southern District of New York, announced that JACOB CARTER, who led a scheme to defraud the U.S. Small Business Administration (“SBA”) of more than $7.6 million, was sentenced by U.S. District Judge Nelson S. Román to 11 years in prison.  CARTER and co-defendants Quadri Salahuddin and Anwar Salahuddin were convicted at trial on February 9, 2024, for conspiracy to commit wire fraud, wire fraud, and aggravated identity theft.

    Acting U.S. Attorney Matthew Podolsky said: “Jacob Carter took advantage of a taxpayer-funded program intended to help small businesses in desperate need during the COVID-19 pandemic.  Some small businesses that were eligible for and deserving of this money did not get it because funds ran out.  Carter used his ill-gotten gains for far more selfish pursuits, including expensive jewelry and a Lamborghini.  Thanks to the work of our law enforcement partners at the FBI and the career prosecutors of this Office, Carter has now received just punishment.”

    According to the Indictment, publics filings, public court proceedings and filings, and the evidence presented at trial and in connection with sentencing:

    The SBA is a federal agency of the Executive Branch that administers assistance to American small businesses. This assistance includes making direct loans to applicants through the Economic Injury Disaster Loan (“EIDL”) Program.  In response to the COVID-19 pandemic, Congress expanded SBA’s EIDL Program to provide small businesses with low-interest loans of up to $2 million prior to in or about May 2020 and up to $150,000 beginning in or about May 2020, in order to provide vital economic support to help overcome the loss of revenue small businesses are experiencing due to COVID-19.  Applicants seeking a loan under the EIDL program were also now permitted to request and receive an advance of approximately $1,000 per employee, for an amount up to $10,000, which the SBA has generally provided while the loan application was pending.

    From March through July 2020, CARTER and co-defendants Quadri Salahuddin, Anwar Salahuddin, and Crystal Ransom, used the identities of more than 1,000 other individuals (the “Applicants”) to submit more than 1,000 online applications to the SBA, seeking over $10 million of funds through the SBA’s EIDL Program (the “EIDL Applications”). In connection with the EIDL Applications, CARTER, Quadri Salahuddin, Anwar Salahuddin, and Ransom falsely represented to the SBA that the Applicants were the owners of businesses with 10 or more employees.  However, that was a lie – the individuals did not own businesses or employ people.  Based on the fraudulent EIDL Applications, the SBA made advance payments of more than $7.6 million to the Applicants, who then kicked back a portion of the advance payments to CARTER, Quadri Salahuddin, Anwar Salahuddin, and Ransom.  After the defendants collected millions of dollars in kickback payments, CARTER took photographs of his stacks of cash, purchased expensive jewelry, and leased a Lamborghini.

    *               *                *

    In addition to the prison term, CARTER, 39, of Capitol Heights, Maryland, was sentenced to three years of supervised release.  CARTER was also ordered to pay restitution in the amount of $7,737,000 to the SBA and forfeiture in the amount of $1,720,950.

    Ransom pled guilty to conspiracy to commit wire fraud and was sentenced on April 24, 2024, to two years in prison to be followed by three years of supervised release with the first six months under home confinement. The Court also ordered that Ransom pay restitution in the amount of $7,577,000 to the SBA and forfeiture in the amount of $99,000. Quadri Salahuddin and Anwar Salahuddin are scheduled to be sentenced on March 26, 2025.

    Mr. Podolsky praised the outstanding work of the Federal Bureau of Investigation and the Air Force Office of Special Investigations.

    The case is being handled by the Office’s White Plains Division.  Assistant U.S. Attorneys Jeffrey C. Coffman, Courtney L. Heavey, and Jared D. Hoffman are in charge of the prosecution.

    MIL Security OSI

  • MIL-OSI Europe: REPORT on the European Semester for economic policy coordination: employment and social priorities for 2025 – A10-0023/2025

    Source: European Parliament

    MOTION FOR A EUROPEAN PARLIAMENT RESOLUTION

    on the European Semester for economic policy coordination: employment and social priorities for 2025

    (2024/2084(INI))

    The European Parliament,

     having regard to Article 3 of the Treaty on European Union (TEU),

      having regard to Articles 9, 121, 148 and 149 of the Treaty on the Functioning of the European Union (TFEU),

     having regard to the European Pillar of Social Rights (EPSR) proclaimed and signed by the Council, Parliament and the Commission on 17 November 2017,

     having regard to the Commission communication of 4 March 2021 entitled ‘The European Pillar of Social Rights Action Plan’ (COM(2021)0102) and its proposed 2030 headline targets on employment, skills and poverty reduction,

     having regard to the Commission communication of 17 December 2024 entitled ‘2025 European Semester – Autumn package’ (COM(2024)0700),

     having regard to the Commission communication of 26 November 2024 entitled ‘2025 European Semester: bringing the new economic governance framework to life’ (COM(2024)0705),

      having regard to the Commission proposal of 17 December 2024 for a joint employment report from the Commission and the Council (COM(2024)0701),

     having regard to the Commission recommendation of 17 December 2024 for a Council recommendation on the economic policy of the euro area (COM(2024)0704),

      having regard to the Commission report of 17 December 2024 entitled ‘Alert Mechanism Report 2025’ (COM(2024)0702),

      having regard to the Commission staff working document of 26 November 2024 entitled ‘Fiscal statistical tables providing relevant background data for the assessment of the 2025 draft budgetary plans’ (SWD(2024)0950),

     having regard to the Commission staff working document of 17 December 2024 on the changes in the scoreboard the Macroeconomic Imbalance Procedure Scoreboard in the context of the regular review process (SWD(2024)0702),

     having regard to its resolution of 22 October 2024 on the Council position on Draft amending budget No 4/2024 of the European Union for the financial year 2024 – update of revenue (own resources) and adjustments to some decentralised agencies[1],

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

     having regard to Enrico Letta’s report of April 2024 on the future of the single market[2],

     having regard to the La Hulpe Declaration on the Future of the European Pillar of Social Rights signed by Parliament, the Commission, the European Economic and Social Committee and the Council on 16 April 2024,

     having regard to the Regulation (EU) 2023/955 of the European Parliament and of the Council of 10 May 2023 establishing a Social Climate Fund and amending Regulation (EU) 2021/1060[3],

     having regard to the Regulation (EU) 2024/1263 of the European Parliament and of the Council of 29 April 2024 on the effective coordination of economic policies and on multilateral budgetary surveillance and repealing Council Regulation (EC) No 1466/97[4], and in particular to Articles 3, 4, 13 and 27 thereof,

     having regard to the Commission communication of 17 January 2023 entitled ‘Harnessing talent in Europe’s regions’ (COM(2023)0032),

     having regard to the Commission communication of 20 March 2023 entitled ‘Labour and skills shortages in the EU: an action plan’ (COM(2024)0131),

     having regard to the 2020 European Skills Agenda,

     having regard to the Commission communication of 7 September 2022 on the European care strategy (COM(2022)0440),

     having regard to the Council Recommendation on access to affordable, high-quality long-term care[5],

     having regard to the EU Social Scoreboard and its headline and secondary indicators,

     having regard to the Commission communication of 3 March 2021 entitled ‘Union of Equality: Strategy for the Rights of Persons with Disabilities 2021-2030’ (COM(2021)0101),

     having regard to the Commission report of 19 September 2024 entitled ‘Employment and Social Developments in Europe (ESDE): upward social convergence in the EU and the role of social investment’,

     having regard to the Council Decision on Employment Guidelines, adopted by the Employment, Social Policy, Health and Consumer Affairs Council on 2 December 2024, which establishes employment and social priorities aligned with the principles of the EPSR,

     having regard to the Tripartite Declaration for a thriving European Social Dialogue and to the forthcoming pact on social dialogue,

     having regard to Directive (EU) 2022/2041 of the European Parliament and of the Council of 19 October 2022 on adequate minimum wages in the European Union[6] (Minimum Wage Directive),

     having regard to the European Social Charter, referred to in the preamble of the EPSR,

     having regard to the EU Roma strategic framework for equality, inclusion and participation for 2020-2030,

     having regard to the United Nations Sustainable Development Goals (SDGs),

     having regard to the Gender Equality Strategy 2020-2025,

     having regard to the EU Anti-Racism Action Plan 2020-2025,

     having regard to the LGBTIQ Equality Strategy 2020-2025,

     having regard to Rule 55 of its Rules of Procedure,

     having regard to the report of the Committee on Employment and Social Affairs (A10-0023/2025),

    A. whereas progress has been made towards achieving the EU’s employment targets, namely that at least 78 % of people aged 20 to 64 should be in employment by 2030, despite the uncertainty created by Russia’s war of aggression against Ukraine and the impact of high inflation; whereas, according to the Commission’s 2025 autumn economic forecast, EU employment has reached a rate of 75.3 %; whereas growth in employment in the EU remained robust in 2023; whereas in two thirds of the Member States, employment growth in 2023 was on track to reach the national 2030 target; whereas significant challenges nevertheless persist, such as high unemployment rates in some Member States, particularly among young people and persons with disabilities, as do significant inequalities between sectors and regions, which can negatively affect social cohesion and the well-being of European citizens in the long term;

    B. whereas the European Semester combines various different instruments in an integrated framework for multilateral coordination and surveillance of economic, employment and social policies within the EU and it must become a key tool for fostering upward social convergence; whereas the Social Convergence Framework is a key tool for assessing social challenges and upward convergence within the European Semester and for monitoring social disparities across Member States, while addressing the challenges identified in the Joint Employment Report (JER);

    C. whereas the Union has adopted the 2030 target of reducing the number of people at risk of poverty and social exclusion by at least 15 million compared to 2019, including at least 5 million children; whereas in nearly half of the Member States the trend is heading in the opposite direction; whereas one child in four in the European Union is still at risk of poverty and social exclusion; and whereas the current trend will not make it possible to meet the 2030 target; whereas public spending on children and youth should not be seen only as social expenditure but as an investment in the future; whereas the promotion of strong, sustainable and inclusive economic growth can succeed only if the next generation can develop their full educational potential in order to be prepared for the changing labour market, whereas to meet the 2030 Barcelona targets for early childhood education and care, the EU should invest an additional EUR 11 billion per year[7];

    D. whereas despite a minimal reduction in the number of people at risk of poverty or social exclusion in the EU in 2023, approximately one in five still faces this challenge, with notable disparities for children, young and older people, persons with disabilities, LGTBI, non-EU born individuals, and Roma communities;

    E. whereas significant disparities are observed among children from ethnic or migrant backgrounds and children with disabilities; whereas 83 % of Roma children live in households at risk of poverty; whereas the EU and national resources currently deployed are in no way sufficient for addressing the challenge of child poverty in the EU and, therefore, a dedicated funding instrument for the European Child Guarantee as well as synergies with other European and national funds are of the utmost importance in both the current multiannual financial framework (MFF) and the next one;

    F. whereas the EPSR must be the compass guiding EU social and economic policies, whereas the Commission should monitor progress on the implementation of the EPSR using the Social Scoreboard and the Social Convergence Framework;

    G. whereas poor quality jobs among the self-employed are disproportionately widespread while the rate of self-employment is declining, including among young people;

    H. whereas there are still 1.4 million people residing in institutions in the EU; whereas residents of institutions are isolated from the broader community and do not have sufficient control over their lives and the decisions that affect them; whereas despite the fact that the European Union has long been committed to the process of deinstitutionalisation, efforts are still needed at both European and national level to enable vulnerable groups to live independently in a community environment;

    I. whereas demographic challenges, including an ageing population, low birth rates and rural depopulation, with young people in particular moving to urban areas, profoundly affect the economic vitality and attractiveness of EU regions, the labour markets, and consequently, the sustainability of welfare systems, and further aggravate the regional disparities in the EU, and hence represent a structural challenge for the EU economy; and whereas, as underlined in the Draghi report, sustainable growth and competitiveness in Europe depend to a large extent on adapting education and training systems to evolving skills needs, prioritising adult learning and vocational education and training, and the inclusion of the active population in the labour market and on a robust welfare system;

    J. whereas, as highlighted in the Draghi report, migrant workers have been an important factor in reducing labour shortages and are more likely to work in occupations with persistent shortages than workers born in the EU;

    K. whereas 70 % of workers in Europe are in good-quality jobs, 30 % are in high-strain jobs where demands are more numerous than resources available to balance them leading to overall poor job quality; whereas in many occupations suffering from persistent labour shortages the share of low-quality jobs is higher than 30 %;

    L. whereas the Letta report states that there is a decline in the birth rate, noting the importance of creating a framework to support all families as part of a strategy of inclusive growth in line with the EPSR; whereas the report notes that the free movement of people remains the least developed of the four freedoms and argues for reducing barriers to intra-EU occupational mobility while addressing the social, economic and political challenges facing the sending Member States and their most disadvantaged regions, as well as safeguarding the right to stay; whereas there is a need to promote family-friendly and work-life balance policies, ensuring accessible and professional care systems as well as public quality education, family-related leave and flexible working arrangements in line with the European Care Strategy;

    M. whereas inflation has increased the economic burden on households, having a particularly negative impact on groups in vulnerable situations, such as single parents, large families, older people or persons with disabilities, whereas housing costs and energy poverty remain major problems; whereas housing is becoming unaffordable for those who live in households where housing costs account for 40 % of total disposable income; whereas investment in social services, housing supply – including social housing – and policies that facilitate the accessibility and affordability of housing play a key role in reducing poverty among vulnerable households;

    N. whereas the EU’s micro, small and medium-sized enterprises face particular challenges such as staying competitive against third-country players, maintaining production levels despite rising energy costs and finding the necessary skills for the green and digital transitions; whereas they need financial and technical support to comply with regulatory requirements and take advantage of the opportunities offered by the twin transitions;

    O. whereas labour and skills shortages remain a problem at all levels, and are reported by companies of all sizes and sectors; whereas these shortages are exacerbated by a lack of candidates to fill critical positions in key sectors such as education, healthcare, transport, science, technology, engineering and construction, especially in areas affected by depopulation; whereas these shortages can result from a number of factors, such as difficult working conditions, unattractive salaries, demand for new skill sets and a shortage of relevant training, the lack of public services, barriers of access to medium and higher education and lack of recognition of skills and education;

    P. whereas the Union has adopted the target that at least 60 % of adults should participate in training every year by 2030; whereas the Member States have committed themselves to national targets in order to achieve this headline goal and whereas the majority of Member States lost ground in the pursuit of these national targets; whereas further efforts are needed to ensure the provision of, and access to, quality training policies that promote lifelong learning; whereas upskilling, reskilling and training programmes must be available for all workers, including those with disabilities, and should also be adapted to workers’ needs and capabilities;

    Q. whereas in 2022, the average Programme for International Student Assessment (PISA) score across the OECD on the measures of basic skills (reading, mathematics and science) of 15-year-olds dropped by 10 points compared to the last wave in 2018; whereas underachievement is prevalent among disadvantaged learners, demonstrating a widening of educational inequalities; whereas this worrying deterioration calls for reforms and investments in education and training;

    R. whereas the EU’s capacity to deal with future shocks, crises and ‘polycrises’ while navigating the demographic, digital and green transitions, will depend greatly on the conditions under which critical workers will be able to perform their work; whereas addressing the shortages and retaining all types of talent requires decent working conditions, access to social protection systems, and opportunities for skills development tailored to the needs; and whereas addressing skills shortages is crucial to achieving the digital and green transitions, ensuring inclusive and sustainable growth and boosting the EU’s competitiveness;

    S. whereas it is essential to promote mobility within the EU and consider attracting skilled workers from third countries, while ensuring respect for and enforcement of labour and social rights and channelling third-country nationals entering the EU through legal migration pathways towards occupations experiencing shortages, supported by an effective integration policy, in full complementarity with harnessing talents from within the Union;

    T. whereas gender pay gaps remain considerable in most EU Member States and whereas care responsibilities are an important factor that continue to constrain women into part-time employment or lead to their exclusion from the labour market, resulting in a wider gender employment gap;

    U. whereas the JER highlights the right to disconnect, in particular in the context of telework, acknowledging the critical role of this right in ensuring a work-life balance in a context of increasing digitalisation and remote working;

    V. whereas challenges to several sectors, such as automotive manufacturing and energy intensive industries, became evident in 2024 and a number of companies announced large-scale restructuring;

    W. whereas there are disparities in the coverage of social services, including long-term care, child protection, domestic violence support, and homelessness aid, that need to be addressed through the European Semester;

    X. whereas there is currently no regular EU-wide collection of data on social services investment and coverage; whereas collecting such data is key for an evidence-based analysis of national social policies in the European Semester analysis; whereas this should be addressed through jointly agreed criteria and data collection standards for social services investment and coverage in the Member States; whereas the European Social Network’s Social Services Index is an example of how such data collection can contribute to the European Semester analysis;

    Y. whereas the crisis in generational renewal, demographic changes, and lack of sufficient investment in public services have led to an increased risk of poverty and social exclusion, particularly affecting children and older people, single-parent households and large families, the working poor, persons with disabilities, and people from marginalised backgrounds; whereas an ambitious EU anti-poverty strategy will be essential to reverse this trend and provide responses to the multidimensional phenomenon of poverty;

    Z. whereas Eurofound research shows that suicide rates have been creeping up since 2021, after decreasing for decades; whereas more needs to be done to address causes of mental health problems in working and living conditions (importantly social inclusion), and access to support for people with poor mental health remains a problem;

    AA. whereas there were still over 3 300 fatal accidents and almost 3 million nonfatal accidents in the EU-27 in 2021; whereas over 200 000 workers die each year from work-related illnesses; whereas these data do not include all accidents caused by undeclared work, making it plausible to assume that the true numbers greatly exceed the official statistics; whereas in 2017, according to Eurofound, 20 % of jobs in Europe were of ‘poor quality’ and put workers at increased risk regarding their physical or mental health; whereas 14 % of workers have been exposed to a high level of psychosocial risks; whereas 23 % of European workers believe that their safety or their health is at risk because of their work;

    AB. whereas the results of the April 2024 Eurobarometer survey on social Europe highlight that 88 % of European citizens consider social Europe to be important to them personally; whereas this was confirmed by the EU Post-Electoral Survey 2024, where European citizens cited rising prices and the cost of living (42 %) and the economic situation (41 %) as the main topics that motivated them to vote in the 2024 European elections;

    AC. whereas according to Article 3 TEU, social progress in the EU is one of the aims of a highly competitive social market economy, together with full employment, a high level of protection and improvement of the quality of the environment; whereas Article 3 TEU also states that the EU ‘shall combat social exclusion and discrimination, and shall promote social justice and protection, equality between women and men, solidarity between generations and protection of the rights of the child’;

    AD. whereas the new EU economic governance framework entered into force in April 2024 and aims to promote sustainable and inclusive growth and to give more space for social investment and achievement of the objectives of the EPSR; whereas, for the first time, the revision includes a social convergence framework as an integrated part of the European Semester;

    AE. whereas under the new EU economic governance framework, all Member States have to include reforms and investments in their medium-term plans addressing common EU priorities and challenges identified in country-specific recommendations in the context of the European Semester; whereas the common EU priorities include social and economic resilience, including the EPSR;

    AF. whereas European social partners, during Macroeconomic Dialogue, have denounced the lack of involvement of social partners in the drafting of the medium-term fiscal structural plans and ETUC, SMEUnited and SGIEurope have signed a joint statement for a material and factual involvement of social partners in the economic governance and the European Semester;

    AG. whereas public investment is expected to increase in 2025 in almost all Member States, with a significant contribution from NextGenerationEU’s Recovery and Resilience Facility (RRF) and EU funds and will contribute to social spending, amounting to around 25 % of the total estimated expenditure under the RRF, securing growth and economic resilience[8]; whereas social investments and reforms in key areas can boost employment, social inclusion, competitiveness and economic growth[9]; whereas social partners are essential for designing and implementing policies that promote sustainable and inclusive growth, decent and quality work, and fair transitions and must be involved at all levels of governance in accordance with the TFEU;

    AH. whereas the Member States should implement the Minimum Wage Directive without delay and prepare action plans that increase collective bargaining coverage in line with the directive, where applicable;

    AI. whereas according to the Organization for Economic Co-operation and Development (OECD), on average across OECD countries, occupations at highest risk of automation account for about 28 % of employment[10]; whereas social dialogue and collective bargaining are crucial in this context to ensure a participatory approach to managing change driven by technological developments, addressing potential concerns, while fostering workers’ adaptation (including via skills provision); whereas digitalisation, robotisation, automation and artificial intelligence (AI) must benefit workers and society by improving working conditions and quality of life, ensuring a good work-life balance, creating better employment opportunities, and contributing to socio-economic convergence; whereas workers and their trade unions will play a critical role in anticipating and tackling risks emerging from those challenges;

     

    AJ. whereas social dialogue and collective bargaining are essential for the EU’s competitiveness, labour productivity and social cohesion;

    1. Considers that the Commission and the Council should strengthen their efforts to implement the EPSR, in line with the action plan of March 2021 and the La Hulpe Declaration, to achieve the 2030 headline targets; calls on the Commission to ensure that the JER 2026 analyses the implementation of all the principles of the EPSR in line with Regulation (EU) 2024/1263 and includes an analysis of the social dimension of the national medium-term fiscal structural plans related to social resilience, including the EPSR; welcomes, in this regard, the announcement of a new Action Plan on the implementation of the EPSR[11] for 2025 to give a new impetus to social progress; welcomes the fact that almost all Member States are expected to increase public investment in 2025, which is necessary to ensure access to quality public services and achieve the aims of the EPSR; recalls that the Member States can mobilise the RRF within the scope defined by the Regulation (EU) 2021/241[12] until 31 December 2026 on policies for sustainable and inclusive growth and the young;

    2. Stresses the importance of using the Social Scoreboard and the Social Convergence Framework to identify risks to, and to track progress in, reducing inequalities, strengthening social protection systems and promoting decent working conditions and supportive measures for workers to manage the transitions; stresses that in this regard, it is necessary to ensure a sustainable, fair and inclusive Europe where social rights are fully protected and safeguarded at the same level as economic freedoms; recalls that EU citizens identify social Europe as one of their priorities;

    3. Regrets the lack of data on and analysis of wealth inequality and wealth concentration in the EU as this is one of the main determinants of poverty; points out that according to Distributional Wealth Accounts, a dataset developed by the European System of Central Banks, the share of wealth held by the top 10 % stood at 56 % in the fourth quarter of 2023, while the bottom half held just 5 %;

    4. Welcomes the inclusion of analysis on the positive contribution of the SDGs and the European equality strategies in the JER 2025 and calls on the Commission to ensure that the JER 2026 includes both a section analysing the progress towards the SDGs related to employment and social policy, and another on progress towards eliminating social and labour discrimination in line with the Gender Equality Strategy 2020-2025, the EU Anti-Racism Action Plan 2020-2025, the EU Roma strategic framework for equality, inclusion and participation 2020-2030, the LGBTIQ Equality Strategy 2020-2025, and the Strategy for the rights of persons with disabilities 2021-2030;

    5. Calls on the Member States to implement the updated employment guidelines, with an emphasis on education and training for all, new technologies such as AI, and recent policy initiatives on platform work, affordable and decent housing and tackling labour and skills shortages, with a view to strengthening democratic decision-making;

    6. Reiterates the importance of investing in workforce skills development and occupational training and of ensuring quality employment, with an emphasis on the individual right to training and lifelong learning; urges the Member States to develop upskilling and reskilling measures in collaboration with local stakeholders, including educational and training bodies and the social partners, in order to reinforce the link between the education and training systems and the labour market and to anticipate labour market needs; welcomes the fact that employment outcomes for recent graduates from vocational education and training (VET) continue to improve across the EU; is concerned about young people’s declining educational performance, particularly in basic skills; welcomes, in this regard, the announcement of an Action Plan on Basic Skills and a STEM Education Strategic Plan; calls on the Member States to invest in programmes to equip learners with the basic, digital and transversal skills needed for the world of work and its digitisation as well as to help them to contribute meaningfully to society; recalls the important role that the European Globalisation Adjustment Fund for displaced workers can play in supporting and reskilling workers who were made redundant as a result of major restructuring events;

    7. Welcomes the announcement of a quality jobs roadmap to ensure a just transition for all; calls on the Commission to include in this roadmap considerations for measures linked to the use of AI and algorithmic management in the world of work so that new technologies are harnessed to improve working conditions and productivity while respecting workers’ rights and work-life balance as recognised in the JER[13]; calls on the Commission to propose a directive on the use of AI in the workplace that ensures that workers’ rights are protected and respected;

    8. Stresses that the response to labour shortages in the European Union also involves improving and facilitating labour mobility within the Union; calls on the Member States to strengthen and facilitate the recognition of skills and qualifications in the Union, including those of third-country nationals; calls on the Commission to analyse the effectiveness of the European Employment Services (EURES) platform with a view to a potential revision of its operation;

    9. Notes that the number of early leavers from education and training, people with lower levels of education, young people not in education, employment or training (NEETs) and among them vulnerable groups, including Roma, women, older people, low- and medium-qualified people, persons with disabilities and people with a migrant or minority background, depending on the country-specific context, remains high in several Member States, despite a downward trend in the European Union; calls on the Member States to reinforce the Youth Guarantee as stated in Principle 4 of the EPSR; in order to support young people in need throughout their personal and professional development; reiterates the pivotal role that VET plays in providing the knowledge, skills and competencies necessary for young people entering the labour market; emphasises the need to invest in the quality and attractiveness of VET through the European Social Fund Plus (ESF+); recalls, therefore, the need to address this situation and develop solutions to keep young people in education, training or employment and the importance of ensuring their access to traineeships and apprenticeships, enabling them to gain their first work experience and facilitating their transition from education to employment as well as to create working conditions that enable an ageing workforce to remain in the labour market;

    10. Considers that, although there has been an improvement, persons with disabilities, especially women with disabilities, still face significant obstacles in the labour market, and that there is therefore a need for vocational and digital training, while promoting the inclusion of persons with disabilities, targeting the inactive labour force and groups with low participation in the labour market, including women, young people, older workers and persons with chronic diseases; calls on the Commission to update the EU Disability Strategy with new flagship initiatives and actions from 2025 onwards, such as a European Disability Employment and Skills Guarantee and the sharing of best practices such as the disability card, in particular to address social inclusion and independent living for people with disabilities, also ensuring their access to quality education, training and employment through guidance on retaining disability allowances;

    11. Expresses concern that Roma continue to face significant barriers to employment, with persistent biases limiting their prospects; notes that the EU Roma strategic framework for equality, inclusion, and participation highlights a lack of progress in employment access and a growing share of Roma youth not in employment, education, or training; emphasises the framework’s goal of halving the employment gap between Roma and the general population and ensuring that at least 60 % of Roma are in paid work by 2030; urges the Member States to adopt an integrated, equality-focused approach and to ensure that public policies and services effectively reach all Roma, including those in remote rural areas;

    12. Stresses the need to pay attention to the social and environmental aspects of competitiveness, emphasising the need for investments in education and training for all to ensure universal access to high-quality public education and professional training programmes, as well as sustainable practices to foster inclusive growth; underlines that social partners should play a key role in identifying and addressing skills needs across the EU;

    13. Calls on the Commission and the Member States to include specific recommendations on housing affordability in the European Semester and to promote housing investment; urges the Member States to ensure that housing investments support long-term quality housing solutions that are actually affordable for low-income and middle-income households, highlighting that investments in social and affordable housing are crucial in order to ensure and improve the quality of life for all; stresses the need for a better use of EU funding, such as through European Investment Bank financial instruments, in particular to support investments to increase the energy efficiency of buildings; calls on the Commission and the Member States to take decisive action to provide an EU regulatory framework for the housing sector, together with an assessment of Union policies, funds and bottlenecks that should facilitate the construction, conversion and renovation of accessible, affordable and energy-efficient housing, including social housing, that meets the needs of young people, people with reduced mobility, low- and middle-income groups, families at risk and people in more vulnerable situations, while protecting homeowners and those seeking access to home ownership from a further reduction in supply;

    14. Welcomes the announced European Affordable Housing Plan to support Member States in addressing the housing crisis and soaring rents; calls on the Commission to assess and publish which potential barriers on State aid rules affect housing accessibility; recalls that the Social Climate Fund aims to provide financial aid to Member States from 2026 to support vulnerable households, in particular with measures and investments intended to increase the energy efficiency of buildings, decarbonisation of heating and cooling of buildings and the integration in buildings of renewable energy generation and storage;

    15. Considers that homelessness is a dramatic social problem in the EU; calls for a single definition of homelessness in the EU, which would enable the systematic comparison and assessment of the extent of homelessness across different EU Member States; calls on the Commission to develop a strategy and work towards ending homelessness in the EU by 2030 by promoting access to affordable and decent housing as well as access to quality social services; urges the Member States to better use the available EU instruments, including the ESF+, in this matter[14];

    16. Calls on the Member States to design national homelessness strategies centred around housing-based solutions; welcomes the intention to deliver a Council recommendation on homelessness[15]; urges the Commission to further increase the ambition of the European Platform on Combating Homelessness, in particular by providing it with a dedicated budget;

    17. Considers that EU action is urgently needed to address the persistently high levels of poverty and social exclusion in the EU, particularly among children, young and older people, persons with disabilities, non-EU born individuals, LGTBI and Roma communities; highlights that access to quality social services should be prioritised, with binding targets to reduce homelessness and ensure energy security for vulnerable households; calls on the Commission to adopt the first-ever EU Anti-Poverty Strategy;

    18. Recalls the Union objective of transitioning from institutional to community or family-based care; calls on the Commission to put forward an action plan on deinstitutionalisation; stresses that this action plan should cover all groups still living in institutions, including children, persons with disabilities, people with mental health issues, people affected by homelessness and older people; calls on the Member States to make full use of the ESF+ funds as well as other relevant European and national funds in order to finalise the deinstitutionalisation process so as to ensure that every EU citizen can live in a family or community environment;

    19. Calls on the Commission to deliver a European action plan for mental health, in line with its recent recommendations[16], and to complement it with a directive on psychosocial risks in the workplace; calls on the Member States to strengthen access to mental health services and emotional support programmes for all, particularly children, young people and older people; requests a better use of the Social Scoreboard indicators to address the impact of precarious living conditions and uncertainty on mental health;

    20. Calls on the Commission to address loneliness by promoting a holistic EU strategy on loneliness and access to professional care; calls also for this EU strategy to address the socio-economic impact of loneliness on productivity and well-being by tackling issues such as rural isolation; urges the Member States to continue implementing the Council recommendation on access to affordable, quality long-term care with a view to ensuring access to quality care while ensuring decent working conditions for workers in the care sector, as well as for informal carers;

    21. Recognises that 44 million Europeans are frequent informal long-term caregivers, the majority of whom are women[17];

    22. Recognises the unique role of carers in society, and while the definition of care workers is not harmonised across the EU, the long-term care sector employs 6.4 million people across the EU;

    23. Is concerned that, in 2023, 94.6 million people in the EU were still at risk of poverty or social exclusion; stresses that without a paradigm shift in the approach to combating poverty, the European Union and its Member States will not achieve their poverty reduction objectives; believes that the announcement of the first-ever EU Anti-Poverty Strategy is a step in the right direction towards reversing the trend, but must provide a comprehensive approach to tackling the multidimensional aspects of poverty and social exclusion with concrete actions, strong implementation and monitoring; calls for this Strategy to encompass everybody experiencing poverty and social exclusion, first and foremost the most disadvantaged, but also specific measures for different groups such as persons experiencing in-work poverty, homeless people, people with disabilities, single-parent families and, above all, children in order to sustainably break the cycle of poverty; stresses that the transposition of the Minimum Wage Directive will be key to preventing and fighting poverty risks among workers, while reinforcing incentives to work, and welcomes the fact that several Member States have amended or plan to amend their minimum wage frameworks; is concerned about the rise of non-standard forms of employment where workers are more likely to face in-work poverty and find themselves without adequate legal protections; stresses that an EU framework directive on adequate minimum income and active inclusion, in compliance with the subsidiarity principle, would contribute to the goals of reducing poverty and fostering the integration of people absent from the labour market;

    24. Reiterates its call on the Commission to carefully monitor implementation of the Child Guarantee in all Member States as part of the European Semester and country-specific recommendations; reiterates its call for an increase in the funding of the European Child Guarantee with a dedicated budget of at least EUR 20 billion and for all Member States to allocate at least 5 % of their allocated ESF+ funds to fighting child poverty and promoting children’s well-being; considers that the country-specific recommendations should reflect Member States’ budgetary compliance with the minimum required allocation for tackling child poverty set out in the ESF+ Regulation[18]; calls on the Commission to provide an ambitious budget for the Child Guarantee in the next MFF in order to respond to the growing challenge of child poverty and social exclusion;

    25. Is concerned about national policies that create gaps in health coverage, increasing inequalities both within and between Member States, such as privatisation of public healthcare systems, co-payments and lack of coverage; highlights that these deepen poverty, erode health and well-being, and increase social inequalities within and across EU countries; warns that this also undermines the implementation of principle 16 of the EPSR and of SDG 3.8 on universal health coverage, as well as the EPSR’s overall objective of promoting upward social convergence in the EU, leaving no one behind; believes that the indicators used in the Social Scoreboard do not provide a comprehensive understanding of healthcare affordability;

    26. Underlines that employers need to foster intergenerational links within companies and intergenerational learning between younger and older workers, and vice versa; underlines that an ageing workforce can help a business develop new products and services to adapt to the needs of an ageing society in a more creative and productive way; calls, furthermore, for the creation of incentives to encourage volunteering and mentoring to induce the transfer of knowledge between generations;

    27. Warns that, according to European Central Bank reports, real wages are still below their pre-pandemic level, while productivity was roughly the same; agrees that this creates some room for a non-inflationary recovery in real wages and warns that if real wages do not recover, this would increase the risk of protracted economic weakness, which could cause scarring effects and would further dent productivity in the euro area relative to other parts of the world; believes that better enforcement of minimum wages and strengthening collective bargaining coverage can have a beneficial effect on levels of wage inequality, especially by helping more vulnerable workers at the bottom of the wage distribution who are increasingly left out;

    28. Calls for the Member States to ensure decent working conditions, comprising among other things decent wages, access to social protection, lifelong learning opportunities, occupational health and safety, a good work-life balance and the right to disconnect, reasonable working time, workers’ representation, democracy at work and collective agreements; urges the Member States to foster democracy at work, social dialogue and collective bargaining and to protect workers’ rights, particularly in the context of the green and digital transitions, and to ensure equal pay for equal work by men and women, enhance pay transparency and address gender-based inequality to close the gender pay gap in the EU;

    29. Recalls the importance of improving access to social protection for the self-employed and calls on the Commission to monitor the Member States’ national plans for the implementation of the Council Recommendation of 8 November 2019 on access to social protection for workers and the self-employed[19] as part of the country-specific recommendations; recalls, in this regard, as the rate of self-employed professionals in the cultural and creative sectors is more than double that in the general population, the 13 initiatives laid down in the Commission’s 21 February 2024 response to the European Parliament resolution of 21 November 2023 on an EU framework for the social and professional situation of artists and workers in the cultural and creative sectors[20] and calls on the Commission to start implementing them in cooperation with the Member States;

    30. Stresses that the role of social dialogue and social partners should be systematically integrated into the design and implementation of employment and social policies, ensuring the involvement of social partners at all levels;

    31. Calls for the implementation of policies that promote work-life balance and the right to disconnect, with the aim of improving the quality of life for all families and workers, for ensuring the implementation of the Work-Life Balance Directive[21] and of the European Care Strategy; calls on the Commission to put forward a legislative proposal to address teleworking and the right to disconnect; as well as a proposal for the creation of a European card for all types of large families and a European action plan for single parents, offering educational and social advantages; calls, ultimately, for initiatives to combat workforce exclusion as a consequence of longer periods of sick leave, to adapt the workplace and to promote flexible working conditions and to develop strategies to support workers’ return after longer periods of absence;

    32. Calls for demographic challenges to be prioritised in the EU’s cohesion policy and for concrete action at EU and national levels; calls on the Commission to prioritise the development of the Commission communication on harnessing talent in Europe’s regions and the ‘Talent Booster Mechanism’ in order to promote social cohesion and to step up funding for rural and outermost areas and regions with a high rate of depopulation, supporting quality job creation, public services, local development projects and basic infrastructure that favour the population’s ‘right to stay’, especially in the case of young people; highlights the importance of introducing specific measures to address regional inequalities in education and training, ensuring equal access to high-quality and affordable education for all;

    33. Is concerned that, despite improvements, several population groups are still significantly under-represented in the EU labour market, including women, older people, low- and medium-qualified people, persons with disabilities and people with a migrant or minority background; warns that  educational inequalities have deepened, further exacerbating the vulnerabilities of students from disadvantaged and migrant backgrounds; points out that, according to the JER, people with migrant or minority backgrounds can significantly benefit from targeted measures in order to address skills mismatches, improve language proficiency, combat discrimination and receive tailored and integrated support services; stresses the importance of strengthening efforts in the implementation of the 2021-27 Action Plan on Integration and Inclusion, which provides a common policy framework to support the Member States in developing national migrant integration policies;

    34. Calls on the Commission and the Council to prioritise reducing administrative burdens with the aim of simplification while respecting labour and social standards; believes that better support for SMEs and actual and potential entrepreneurs will improve the EU’s competitiveness and long-term sustainability, boost innovation and create quality jobs; notes that SMEs and self-employed professionals in all sectors are essential for the EU’s economic growth and thus the financing of social policies; urges the implementation of specific recommendations to improve the single market; takes note of the Commission’s publication of the ‘Competitiveness Compass’ on 29 January 2025[22];

    35. Calls on the Commission to conduct competitiveness checks on every new legislative proposal, taking into account the overall impact of EU legislation on companies, as well as on other EU policies and programmes;

    36. Considers that the social economy is an essential component of the EU’s social market economy and a driver for the implementation of the EPSR and its targets, often providing employment to vulnerable and excluded groups; calls on the Commission and the Member States to strengthen their support for all social economy enterprises but especially non-profit ones, as highlighted in the Social Economy Action Plan 2021 and the Liège Roadmap for the Social Economy, in order to promote quality, decent, inclusive work and the circular economy, to encourage the Member States to facilitate access to funding and to enhance the visibility of social economy actors; calls for the Commission to explore innovative funding mechanisms to support the development of the social economy in Europe[23] and to foster a dynamic and inclusive business environment;

    37. Believes that, in this year of transition, with the implementation of the revised economic governance rules, the Member States should align fiscal responsibility with sustainable and inclusive growth and employment, notes that the involvement of social partners, including in the development of medium-term fiscal structural plans, should be enhanced to contribute to the goals of the new economic governance framework;

    38. Welcomes the fact that the national medium-term fiscal structural plans, under the new economic governance framework, have to include the reforms and investments responding to the main challenges identified in the context of the European Semester and also to ensure debt sustainability while investing strategically in the principles of the EPSR with the aim of fostering upward social convergence;

    39. Is concerned that compliance with the country-specific recommendations (CSRs) remains low; reiterates its call, therefore, for an effective implementation of CSRs by the Member States so as to promote healthcare and sustainable pension systems, in line with principles 15 and 16 of the EPSR, and long-term prosperity for all citizens, taking into account the vulnerability of those workers whose careers are segmented, intermittent and subject to labour transitions; insists that the Commission should reinforce its dialogues with the Member States on the implementation of existing recommendations and of the Employment Guidelines as well as on current or future policy action to address identified challenges;

    40. Welcomes the establishment of a framework to identify risks to social convergence within the European Semester, for which Parliament called strongly; recalls that under this framework, the Commission assesses risks to upward social convergence in Member States and monitors progress on the implementation of the EPSR on the basis of the Social Scoreboard and of the principles of the Social Convergence Framework; welcomes the fact that the 2025 JER delivers country-specific analysis based on the principles of the Social Convergence Framework; calls on the Commission to further develop innovative quantitative and qualitative analysis tools under this new Framework in order to make optimal use of it in the future cycles of the European Semester;

    41. Welcomes the fact that the first analysis based on the principles of the Social Convergence Framework points to upward convergence in the labour market in 2023[24]; notes with concern that employment outcomes of under-represented groups still need to improve and that risks to upward convergence persist at European level in relation to skills development, ranging from early education to lifelong learning, and the social outcomes of at-risk-of-poverty and social exclusion rates; calls on the Commission to further analyse these risks to upward social convergence in the second stage of the analysis and to discuss with the Member States concerned the measures undertaken or envisaged to address these risks;

    42. Recognises the cost of living crisis, which has increased the burden on households, and the rising cost of housing, which, in conjunction with high energy costs, is contributing to high levels of energy poverty across the EU; calls, therefore, on the Commission and Member States to comprehensively address the root causes of this crisis by prioritising policies that promote economic resilience, social cohesion, and sustainable development;

    43. Warns of the social risks stemming from the crisis in the automotive sector, which is facing unprecedented pressure from both external and internal factors; calls on the Commission to pay attention to this sector and enhance social dialogue and the participation of workers in transition processes; stresses the urgent need for a coordinated EU response via an emergency task force of trade unions and employers to respond to the current crisis;

    44. Calls on the Commission to monitor data on restructuring and its impact on employment, such as by using the European Restructuring Monitor, to facilitate measures in support of restructuring and labour market transitions, and to consider highlighting national measures supporting a socially responsible way of restructuring in the European Semester;

    45. Calls on the Commission to monitor the development of minimum wages in the Member States following the transposition of the Minimum Wage Directive to determine whether the goal of ‘adequacy’ of minimum wages is being achieved;

    46. Is concerned about the Commission’s revision of the Macroeconomic Imbalance Procedure (MIP) Scoreboard, particularly the reduction in employment and social indicators, which are crucial for assessing the social and labour market situation in the Member States; regrets the fact that youth unemployment is no longer considered as a headline indicator, despite its relevance in identifying and addressing specific labour market challenges and in adopting adequate public policies; stresses that social standards indicators should be given greater consideration in the decision-making process; regrets the fact that the Commission did not duly consult Parliament and reminds the Commission of its obligation to closely cooperate with Parliament, the Council and social partners before drawing up the MIP scoreboard and the set of macroeconomic and macro-financial indicators for Member States; stresses that the implementation of the principles of the EPSR must be part of the MIP scoreboard;

    47. Considers that territorial and social cohesion are essential components of the competitiveness agenda, and legislation such as the European Instrument for Temporary Support to Mitigate Unemployment Risks in an Emergency (SURE) remain a positive example to inspire future EU initiatives;

    48. Considers that the Commission and the Member States should ensure that fiscal policies under the European Semester support investments aligned with the EPSR, particularly in areas such as decent and affordable housing, quality healthcare, education, and social protection systems, as these are critical for social cohesion and long-term economic sustainability and to address the challenges identified through social indicators;

    49. Stresses the need to address key challenges identified in the Social Scoreboard as ‘critical’ and ‘to watch’, including children at risk of poverty or social exclusion, the gender employment gap, housing cost overburden, childcare, and long-term care the disability employment gap, the impact of social transfers on reducing poverty, and basic digital skills[25];

    50. Stresses the negative impacts that the cost of living crisis has had on persons with disabilities;

    51. Urges the Member States to consider robust policies that ensure fair wages and improve working conditions, particularly for low-income and precarious workers;

    52. Calls on the Member States to strengthen social safety nets to provide adequate support to those whose income from employment is insufficient to meet basic living costs;

    53. Stresses the need for timely and harmonised data on social policies to improve evidence-based policymaking and targeted social investments; calls for improvements to be made to the Social Scoreboard in order to cover the 20 EPSR principles with the introduction of relevant indicators reflecting trends and causes of inequality, such as quality employment, wealth distribution, access to public services, adequate pensions, the homelessness rate, mental health and unemployment; recalls that the at-risk-of-poverty-or-social-exclusion (AROPE) indicator fails to reveal the causes of complex inequality; calls on the Commission and the Member States to develop a European data collection framework on social services to monitor the investment in and coverage of social services;

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

    MIL OSI Europe News

  • MIL-OSI Europe: Meeting of 29-30 January 2025

    Source: European Central Bank

    Account of the monetary policy meeting of the Governing Council of the European Central Bank held in Frankfurt am Main on Wednesday and Thursday, 29-30 January 2025

    27 February 2025

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

    Financial market developments

    Ms Schnabel noted that the financial market developments observed in the euro area after October 2024 had reversed since the Governing Council’s previous monetary policy meeting on 11-12 December 2024. The US presidential election in November had initially led to lower euro area bond yields and equity prices. Since the December monetary policy meeting, however, both risk-free yields and risk asset prices had moved substantially higher and had more than made up their previous declines. A less gloomy domestic macroeconomic outlook and an increase in the market’s outlook for inflation in the euro area on the back of higher energy prices had led investors to expect the ECB to proceed with a more gradual rate easing path.

    A bounce-back of euro area risk appetite had supported equity and corporate bond prices and had contained sovereign bond spreads. While the euro had also rebounded recently against the US dollar, it remained significantly weaker than before the US election.

    In euro money markets the year-end had been smooth. Money market conditions at the turn of the year had turned out to be more benign than anticipated, with a decline in repo rates and counterparties taking only limited recourse to the ECB’s standard refinancing operations.

    In the run-up to the US election and in its immediate aftermath, ten-year overnight index swap (OIS) rates in the euro area and the United States had decoupled, reflecting expectations of increasing macroeconomic divergence. However, since the Governing Council’s December monetary policy meeting, long-term interest rates had increased markedly in both the euro area and the United States. An assessment of the drivers of euro area long-term rates showed that both domestic and US factors had pushed yields up. But domestic factors – expected tighter ECB policy and a less gloomy euro area macroeconomic outlook – had mattered even more than US spillovers. These factors included a reduction in perceived downside risks to economic growth from tariffs and a stronger than anticipated January flash euro area Purchasing Managers’ Index (PMI).

    Taking a longer-term perspective on ten-year rates, since October 2022, when inflation had peaked at 10.6% and policy rates had just returned to positive territory, nominal OIS rates and their real counterparts had been broadly trending sideways. From that perspective, the recent uptick was modest and could be seen as a mean reversion to the new normal.

    A decomposition of the change in ten-year OIS rates since the start of 2022 showed that the dominant driver of persistently higher long-term yields compared with the “low-for-long” interest rate and inflation period had been the sharp rise in real rate expectations. A second major driver had been an increase in real term premia in the context of quantitative tightening. This increase had occurred mainly in 2022. Since 2023, real term premia had broadly trended sideways albeit with some volatility. Hence, the actual reduction of the ECB’s balance sheet had elicited only mild upward pressure on term premia. From a historical perspective, despite their recent increase, term premia in the euro area remained compressed compared with the pre-quantitative easing period.

    Since the December meeting, investors had revised up their expectations for HICP inflation (excluding tobacco) for 2025. Current inflation fixings (swap contracts linked to specific monthly releases in year-on-year euro area HICP inflation excluding tobacco) for this year stood above the 2% target. Higher energy prices had been a key driver of the reassessment of near-term inflation expectations. Evidence from option prices, calculated under the assumption of risk neutrality, suggested that the risk to inflation in financial markets had become broadly balanced, with the indicators across maturities having shifted discernibly upwards. Recent survey evidence suggested that risks of inflation overshooting the ECB’s target of 2% had resurfaced. Respondents generally saw a bigger risk of an inflation overshoot than of an inflation undershoot.

    The combination of a less gloomy macroeconomic outlook and stronger price pressures had led markets to reassess the ECB’s expected monetary policy path. Market pricing suggested expectations of a more gradual easing cycle with a higher terminal rate, pricing out the probability of a cut larger than 25 basis points at any of the next meetings. Overall, the size of expected cuts to the deposit facility rate in 2025 had dropped by around 40 basis points, with the end-year rate currently seen at 2.08%. Market expectations for 2025 stood above median expectations in the Survey of Monetary Analysts. Survey participants continued to expect a faster easing cycle, with cuts of 25 basis points at each of the Governing Council’s next four monetary policy meetings.

    The Federal Funds futures curve had continued to shift upwards, with markets currently expecting between one and two 25 basis point cuts by the end of 2025. The repricing of front-end yields since the Governing Council’s December meeting had been stronger in the euro area than in the United States. This would typically also be reflected in foreign exchange markets. However, the EUR/USD exchange rate had recently decoupled from interest rates, as the euro had initially continued to depreciate despite a narrowing interest rate differential, before recovering more recently. US dollar currency pairs had been affected by the US Administration’s comments, which had put upward pressure on the US dollar relative to trading partners’ currencies.

    Euro area equity markets had outperformed their US counterparts in recent weeks. A model decomposition using a standard dividend discount model for the euro area showed that rising risk-free yields had weighed significantly on euro area equity prices. However, this had been more than offset by higher dividends, and especially a compression of the risk premium, indicating improved investor risk sentiment towards the euro area, as also reflected in other risk asset prices. Corporate bond spreads had fallen across market segments, including high-yield bonds. Sovereign spreads relative to the ten-year German Bund had remained broadly stable or had even declined slightly. Relative to OIS rates, the spreads had also remained broadly stable. The Bund-OIS spread had returned to levels observed before the Eurosystem had started large-scale asset purchases in 2015, suggesting that the scarcity premium in the German government bond market had, by and large, normalised.

    Standard financial condition indices for the euro area had remained broadly stable since the December meeting. The easing impulse from higher equity prices had counterbalanced the tightening impulse stemming from higher short and long-term rates. In spite of the bounce-back in euro area real risk-free interest rates, the yield curve remained broadly within neutral territory.

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

    Starting with inflation in the euro area, Mr Lane noted that headline inflation, as expected, had increased to 2.4% in December, up from 2.2% in November. The increase primarily reflected a rise in energy inflation from -2.0% in November to 0.1% in December, due mainly to upward base effects. Food inflation had edged down to 2.6%. Core inflation was unchanged at 2.7% in December, with a slight decline in goods inflation, which had eased to 0.5%, offset by services inflation rising marginally to 4.0%.

    Developments in most indicators of underlying inflation had been consistent with a sustained return of inflation to the medium-term inflation target. The Persistent and Common Component of Inflation (PCCI), which had the best predictive power of any underlying inflation indicator for future headline inflation, had continued to hover around 2% in December, indicating that headline inflation was set to stabilise around the ECB’s inflation target. Domestic inflation, which closely tracked services inflation, stood at 4.2%, staying well above all the other indicators in December. However, the PCCI for services, which should act as an attractor for services and domestic inflation, had fallen to 2.3%.

    The anticipation of a downward shift in services inflation in the coming months also related to an expected deceleration in wage growth this year. Wages had been adjusting to the past inflation surge with a substantial delay, but the ECB wage tracker and the latest surveys pointed to moderation in wage pressures. According to the latest results of the Survey on the Access to Finance of Enterprises, firms expected wages to grow by 3.3% on average over the next 12 months, down from 3.5% in the previous survey round and 4.5% in the equivalent survey this time last year. This assessment was shared broadly across the forecasting community. Consensus Economics, for example, foresaw a decline in wage growth of about 1 percentage point between 2024 and 2025.

    Most measures of longer-term inflation expectations continued to stand at around 2%, despite an uptick over shorter horizons. Although, according to the Survey on the Access to Finance of Enterprises, the inflation expectations of firms had stabilised at 3% across horizons, the expectations of larger firms that were aware of the ECB’s inflation target showed convergence towards 2%. Consumer inflation expectations had edged up recently, especially for the near term. This could be explained at least partly by their higher sensitivity to actual inflation. There had also been an uptick in the near-term inflation expectations of professionals – as captured by the latest vintages of the Survey of Professional Forecasters and the Survey of Monetary Analysts, as well as market-based measures of inflation compensation. Over longer horizons, though, the inflation expectations of professional forecasters remained stable at levels consistent with the medium-term target of 2%.

    Headline inflation should fluctuate around its current level in the near term and then settle sustainably around the target. Easing labour cost pressures and the continuing impact of past monetary policy tightening should support the convergence to the inflation target.

    Turning to the international environment, global economic activity had remained robust around the turn of the year. The global composite PMI had held steady at 53.0 in the fourth quarter of 2024, owing mainly to the continued strength in the services sector that had counterbalanced weak manufacturing activity.

    Since the Governing Council’s previous meeting, the euro had remained broadly stable in nominal effective terms (+0.5%) and against the US dollar (+0.2%). Oil prices had seen a lot of volatility, but the latest price, at USD 78 per barrel, was only around 3½% above the spot oil price at the cut-off date for the December Eurosystem staff projections and 2.6% above the spot price at the time of the last meeting. With respect to gas prices, the spot price stood at €48 per MWh, 2.7% above the level at the cut-off date for the December projections and 6.8% higher than at the time of the last meeting.

    Following a comparatively robust third quarter, euro area GDP growth had likely moderated again in the last quarter of 2024 – confirmed by Eurostat’s preliminary flash estimate released on 30 January at 11:00 CET, with a growth rate of 0% for that quarter, later revised to 0.1%. Based on currently available information, private consumption growth had probably slowed in the fourth quarter amid subdued consumer confidence and heightened uncertainty. Housing investment had not yet picked up and there were no signs of an imminent expansion in business investment. Across sectors, industrial activity had been weak in the summer and had softened further in the last few months of 2024, with average industrial production excluding construction in October and November standing 0.4% below its third quarter level. The persistent weakness in manufacturing partly reflected structural factors, such as sectoral trends, losses in competitiveness and relatively high energy prices. However, manufacturing firms were also especially exposed to heightened uncertainty about global trade policies, regulatory costs and tight financing conditions. Service production had grown in the third quarter, but the expansion had likely moderated in the fourth quarter.

    The labour market was robust, with the unemployment rate falling to a historical low of 6.3% in November – with the figure for December (6.3%) and a revised figure for November (6.2%) released later on the morning of 30 January. However, survey evidence and model estimates suggested that euro area employment growth had probably softened in the fourth quarter.

    The fiscal stance for the euro area was now expected to be balanced in 2025, as opposed to the slight tightening foreseen in the December projections. Nevertheless, the current outlook for the fiscal stance was subject to considerable uncertainty.

    The euro area economy was set to remain subdued in the near term. The flash composite output PMI for January had ticked up to 50.2 driven by an improvement in manufacturing output, as the rate of contraction had eased compared with December. The January release had been 1.7 points above the average for the fourth quarter, but it still meant that the manufacturing sector had been in contractionary territory for nearly two years. The services business activity index had decelerated slightly to 51.4 in January, staying above the average of 50.9 in the fourth quarter of 2024 but still below the figure of 52.1 for the third quarter.

    Even with a subdued near-term outlook, the conditions for a recovery remained in place. Higher incomes should allow spending to rise. More affordable credit should also boost consumption and investment over time. And if trade tensions did not escalate, exports should also support the recovery as global demand rose.

    Turning to the monetary and financial analysis, bond yields, in both the euro area and globally, had increased significantly since the last meeting. At the same time, the ECB’s past interest rate cuts were gradually making it less expensive for firms and households to borrow. Lending rates on bank loans to firms and households for new business had continued to decline in November. In the same period, the cost of borrowing for firms had decreased by 15 basis points to 4.52% and stood 76 basis points below the cyclical peak observed in October 2023. The cost of issuing market-based debt had remained at 3.6% in November 2024. Mortgage rates had fallen by 8 basis points to 3.47% since October, 56 basis points lower than their peak in November 2023. However, the interest rates on existing corporate and household loan books remained high.

    Financing conditions remained tight. Although credit was expanding, lending to firms and households was subdued relative to historical averages. Annual growth in bank lending to firms had risen to 1.5% in December, up from 1% in November, as a result of strong monthly flows. But it remained well below the 4.3% historical average since January 1999. By contrast, growth in corporate debt securities issuance had moderated to 3.2% in annual terms, from 3.6% in November. This suggested that firms had substituted market-based long-term financing for bank-based borrowing amid tightening market conditions and in advance of increasing redemptions of long-term corporate bonds. Mortgage lending had continued to rise gradually but remained muted overall, with an annual growth rate of 1.1% in December after 0.9% in November. This was markedly below the long-term average of 5.1%.

    According to the latest euro area bank lending survey, the demand for loans by firms had increased slightly in the last quarter. At the same time, credit standards for loans to firms had tightened again, having broadly stabilised over the previous four quarters. This renewed tightening of credit standards for firms had been motivated by banks seeing higher risks to the economic outlook and their lower tolerance for taking on credit risk. This finding was consistent with the results of the Survey on the Access to Finance of Enterprises, in which firms had reported a small decline in the availability of bank loans and tougher non-rate lending conditions. Turning to households, the demand for mortgages had increased strongly as interest rates became more attractive and prospects for the property market improved. Credit standards for housing loans remained unchanged overall.

    Monetary policy considerations and policy options

    In summary, the disinflation process remained well on track. Inflation had continued to develop broadly in line with the staff projections and was set to return to the 2% medium-term target in the course of 2025. Most measures of underlying inflation suggested that inflation would settle around the target on a sustained basis. Domestic inflation remained high, mostly because wages and prices in certain sectors were still adjusting to the past inflation surge with a substantial delay. However, wage growth was expected to moderate and lower profit margins were partially buffering the impact of higher wage costs on inflation. The ECB’s recent interest rate cuts were gradually making new borrowing less expensive for firms and households. At the same time, financing conditions continued to be tight, also because monetary policy remained restrictive and past interest rate hikes were still being transmitted to the stock of credit, with some maturing loans being rolled over at higher rates. The economy was still facing headwinds, but rising real incomes and the gradually fading effects of restrictive monetary policy should support a pick-up in demand over time.

    Concerning the monetary policy decision at this meeting, it was proposed to lower the three key ECB interest rates by 25 basis points. In particular, lowering the deposit facility rate – the rate through which the ECB steered the monetary policy stance – was justified by the updated assessment of the inflation outlook, the dynamics of underlying inflation and the strength of monetary policy transmission. The alternative – maintaining the deposit facility rate at the current level of 3.00% – would excessively dampen demand and therefore be inconsistent with the set of rate paths that best ensured inflation stabilised sustainably at the 2% medium-term target.

    Looking to the future, it was prudent to maintain agility, so as to be able to adjust the stance as appropriate on a meeting-by-meeting basis, and not to pre-commit to any particular rate path. In particular, monetary easing might proceed more slowly in the event of upside shocks to the inflation outlook and/or to economic momentum. Equally, in the event of downside shocks to the inflation outlook and/or to economic momentum, monetary easing might proceed more quickly.

    2. Governing Council’s discussion and monetary policy decisions

    Economic, monetary and financial analyses

    As regards the external environment, incoming data since the Governing Council’s previous monetary policy meeting had signalled robust global activity in the fourth quarter of 2024, with divergent paths across economies and an uncertain outlook for global trade. The euro had been broadly stable and energy commodity prices had increased. It was underlined that gas prices were currently over 60% higher than in 2024 because the average temperature during the previous winter had been very mild, whereas this winter was turning out to be considerably colder. This suggested that demand for gas would remain strong, as reserves needed to be replenished ahead of the next heating season, keeping gas prices high for the remainder of the year. In other commodity markets, metal prices were stable – subdued by weak activity in China and the potential negative impact of US tariffs – while food prices had increased.

    Members concurred that the outlook for the international economy remained highly uncertain. The United States was the only advanced economy that was showing sustained growth dynamics. Global trade might be hit hard if the new US Administration were to implement the measures it had announced. The challenges faced by the Chinese economy also remained visible in prices. Chinese inflation had declined further on the back of weak domestic demand. In this context, it was pointed out that, no matter how severe the new US trade measures turned out to be, the euro area would be affected either indirectly by disinflationary pressures or directly, in the event of retaliation, by higher inflation. In particular, if China were to redirect trade away from the United States and towards the euro area, this would make it easier to achieve lower inflation in the euro area but would have a negative impact on domestic activity, owing to greater international competition.

    With regard to economic activity in the euro area, it was widely recognised that incoming data since the last Governing Council meeting had been limited and, ahead of Eurostat’s indicator of GDP for the fourth quarter of 2024, had not brought any major surprises. Accordingly, it was argued that the December staff projections remained the most likely scenario, with the downside risks to growth that had been identified not yet materialising. The euro area economy had seen some encouraging signs in the January flash PMIs, although it had to be recognised that, in these uncertain times, hard data seemed more important than survey results. The outcome for the third quarter had surprised on the upside, showing tentative signs of a pick-up in consumption. Indications from the few national data already available for the fourth quarter pointed to a positive contribution from consumption. Despite all the prevailing uncertainties, it was still seen as plausible that, within a few quarters, there would be a consumption-driven recovery, with inflation back at target, policy rates broadly at neutral levels and continued full employment. Moreover, the latest information on credit flows and lending rates suggested that the gradual removal of monetary restrictiveness was already being transmitted to the economy, although the past tightening measures were still exerting lagged effects.

    The view was also expressed that the economic outlook in the December staff projections had likely been too optimistic and that there were signs of downside risks materialising. The ECB’s mechanical estimates pointed to very weak growth around the turn of the year and, compared with other institutions, the Eurosystem’s December staff projections had been among the most optimistic. Attention was drawn to the dichotomy between the performance of the two largest euro area economies and that of the rest of the euro area, which was largely due to country-specific factors.

    Recent forecasts from the Survey of Professional Forecasters, the Survey of Monetary Analysts and the International Monetary Fund once again suggested a downward revision of euro area economic growth for 2025 and 2026. Given this trend of downward revisions, doubts were expressed about the narrative of a consumption-driven economic recovery in 2025. Moreover, the December staff projections had not directly included the economic impact of possible US tariffs in the baseline, so it was hard to be optimistic about the economic outlook. The outlook for domestic demand had deteriorated, as consumer confidence remained weak and investment was not showing any convincing signs of a pick-up. The contribution from foreign demand, which had been the main driver of growth over the past two years, had also been declining since last spring. Moreover, uncertainty about potential tariffs to be imposed by the new US Administration was weighing further on the outlook. In the meantime, labour demand was losing momentum. The slowdown in economic activity had started to affect temporary employment: these jobs were always the first to disappear as the labour market weakened. At the same time, while the labour market had softened over recent months, it continued to be robust, with the unemployment rate staying low, at 6.3% in December. A solid job market and higher incomes should strengthen consumer confidence and allow spending to rise.

    There continued to be a strong dichotomy between a more dynamic services sector and a weak manufacturing sector. The services sector had remained robust thus far, with the PMI in expansionary territory and firms reporting solid demand. The extent to which the weakness in manufacturing was structural or cyclical was still open to debate, but there was a growing consensus that there was a large structural element, as high energy costs and strict regulation weighed on firms’ competitiveness. This was also reflected in weak export demand, despite the robust growth in global trade. All these factors also had an adverse impact on business investment in the industrial sector. This was seen as important to monitor, as a sustainable economic recovery also depended on a recovery in investment, especially in light of the vast longer-term investment needs of the euro area. Labour markets showed a dichotomy similar to the one observed in the economy more generally. While companies in the manufacturing sector were starting to lay off workers, employment in the services sector was growing. At the same time, concerns were expressed about the number of new vacancies, which had continued to fall. This two-speed economy, with manufacturing struggling and services resilient, was seen as indicating only weak growth ahead, especially in conjunction with the impending geopolitical tensions.

    Against this background, geopolitical and trade policy uncertainty was likely to continue to weigh on the euro area economy and was not expected to recede anytime soon. The point was made that if uncertainty were to remain high for a prolonged period, this would be very different from a shorter spell of uncertainty – and even more detrimental to investment. Therefore the economic recovery was unlikely to receive much support from investment for some time. Indeed, excluding Ireland, euro area business investment had been contracting recently and there were no signs of a turnaround. This would limit investment in physical and human capital further, dragging down potential output in the medium term. However, reference was also made to evidence from psychological studies, which suggested that the impact of higher uncertainty might diminish over time as agents’ perceptions and behaviour adapted.

    In this context, a remark was made on the importance of monetary and fiscal policies for enabling the economy to return to its previous growth path. Economic policies were meant to stabilise the economy and this stabilisation sometimes required a long time. After the pandemic, many economic indicators had returned to their pre-crisis levels, but this had not yet implied a return to pre-crisis growth paths, even though the output gap had closed in the meantime. A question was raised on bankruptcies, which were increasing in the euro area. To the extent that production capacity was being destroyed, the output gap might be closing because potential output growth was declining, and not because actual growth was increasing. However, it was also noted that bankruptcies were rising from an exceptionally low level and developments remained in line with historical regularities.

    Members reiterated that fiscal and structural policies should make the economy more productive, competitive and resilient. They welcomed the European Commission’s Competitiveness Compass, which provided a concrete roadmap for action. It was seen as crucial to follow up, with further concrete and ambitious structural policies, on Mario Draghi’s proposals for enhancing European competitiveness and on Enrico Letta’s proposals for empowering the Single Market. Governments should implement their commitments under the EU’s economic governance framework fully and without delay. This would help bring down budget deficits and debt ratios on a sustained basis, while prioritising growth-enhancing reforms and investment.

    Against this background, members assessed that the risks to economic growth remained tilted to the downside. Greater friction in global trade could weigh on euro area growth by dampening exports and weakening the global economy. Lower confidence could prevent consumption and investment from recovering as fast as expected. This could be amplified by geopolitical risks, such as Russia’s unjustified war against Ukraine and the tragic conflict in the Middle East, which could disrupt energy supplies and further weigh on global trade. Growth could also be lower if the lagged effects of monetary policy tightening lasted longer than expected. It could be higher if easier financing conditions and falling inflation allowed domestic consumption and investment to rebound faster.

    On price developments, members concurred with Mr Lane’s assessment that the incoming data confirmed disinflation was on track and that a return to the target in the course of 2025 was within reach. On the nominal side, there had been no major data surprises since the December Governing Council meeting and inflation expectations remained well anchored. Recent inflation data had been slightly below the December staff projections, but energy prices were on the rise. These two elements by and large offset one another. The inflation baseline from the December staff projections was therefore still a realistic scenario, indicating that inflation was on track to converge towards target in the course of 2025. Nevertheless, it was recalled that, for 2027, the contribution from the new Emissions Trading System (ETS2) assumptions was mechanically pushing the Eurosystem staff inflation projections above 2%. Furthermore, the market fixings for longer horizons suggested that there was a risk of undershooting the inflation target in 2026 and 2027. It was remarked that further downside revisions to the economic outlook would tend to imply a negative impact on the inflation outlook and an undershooting of inflation could not be ruled out.

    At the same time, the view was expressed that the risks to the December inflation projections were now tilted to the upside, so that the return to the 2% inflation target might take longer than previously expected. Although it was acknowledged that the momentum in services inflation had eased in recent months, the outlook for inflation remained heavily dependent on the evolution of services inflation, which accounted for around 75% of headline inflation. Services inflation was therefore widely seen as the key inflation component to monitor during the coming months. Services inflation had been stuck at roughly 4% for more than a year, while core inflation had also proven sluggish after an initial decline, remaining at around 2.7% for nearly a year. This raised the question as to where core inflation would eventually settle: in the past, services inflation and core inflation had typically been closely connected. It was also highlighted that, somewhat worryingly, the inflation rate for “early movers” in services had been trending up since its trough in April 2024 and was now standing well above the “followers” and the “late movers” at around 4.6%. This partly called into question the narrative behind the expected deceleration in services inflation. Moreover, the January flash PMI suggested that non-labour input costs, including energy and shipping costs, had increased significantly. The increase in the services sector had been particularly sharp, which was reflected in rising PMI selling prices for services – probably also fuelled by the tight labour market. As labour hoarding was a more widespread phenomenon in manufacturing, this implied that a potential pick-up in demand and the associated cyclical recovery in labour productivity would not necessarily dampen unit labour costs in the services sector to the same extent as in manufacturing.

    One main driver of the stickiness in services inflation was wage growth. Although wage growth was expected to decelerate in 2025, it would still stand at 4.5% in the second quarter of 2025 according to the ECB wage tracker. The pass-through of wages tended to be particularly strong in the services sector and occurred over an extended period of time, suggesting that the deceleration in wages might take some time to be reflected in lower services inflation. The forward-looking wage tracker was seen as fairly reliable, as it was based on existing contracts, whereas focusing too much on lagging wage data posed the risk of monetary policy falling behind the curve. This was particularly likely if negative growth risks eventually affected the labour market. Furthermore, a question was raised as to the potential implications for wage pressures of more restrictive labour migration policies.

    Overall, looking ahead there seemed reasons to believe that both services inflation and wage growth would slow down in line with the baseline scenario in the December staff projections. From the current quarter onwards, services inflation was expected to decline. However, in the early months of the year a number of services were set to be repriced, for instance in the insurance and tourism sectors, and there were many uncertainties surrounding this repricing. It was therefore seen as important to wait until March, when two more inflation releases and the new projections would be available, to reassess the inflation baseline as contained in the December staff projections.

    As regards longer-term inflation expectations, members took note of the latest developments in market-based measures of inflation compensation and survey-based indicators. The December Consumer Expectations Survey showed another increase in near-term inflation expectations, with inflation expectations 12 months ahead having already gradually picked up from 2.4% in September to 2.8% in December. Density-based expectations were even higher at 3%, with risks tilted to the upside. According to the Survey on the Access to Finance of Enterprises, firms’ median inflation expectations had also risen to 3%. However it was regarded as important to focus more on the change in inflation expectations than on the level of expectations when interpreting these surveys.

    As regards risks to the inflation outlook, with respect to the market-based measures, the view was expressed that there had been a shift in the balance of risks, pointing to upside risks to the December inflation outlook. In financial markets, inflation fixings for 2025 had shifted above the December short-term projections and inflation expectations had picked up across all tenors. In market surveys, risks of overshooting had resurfaced, with a larger share of respondents in the surveys seeing risks of an overshooting in 2025. Moreover, it was argued that tariffs, their implications for the exchange rate, and energy and food prices posed upside risks to inflation.

    Against this background, members considered that inflation could turn out higher if wages or profits increased by more than expected. Upside risks to inflation also stemmed from the heightened geopolitical tensions, which could push energy prices and freight costs higher in the near term and disrupt global trade. Moreover, extreme weather events, and the unfolding climate crisis more broadly, could drive up food prices by more than expected. By contrast, inflation might surprise on the downside if low confidence and concerns about geopolitical events prevented consumption and investment from recovering as fast as expected, if monetary policy dampened demand by more than expected, or if the economic environment in the rest of the world worsened unexpectedly. Greater friction in global trade would make the euro area inflation outlook more uncertain.

    Turning to the monetary and financial analysis, members broadly agreed with the assessment presented by Ms Schnabel and Mr Lane. It was noted that market interest rates in the euro area had risen since the Governing Council’s December monetary policy meeting, partly mirroring higher rates in global financial markets. Overall, financial conditions had been broadly stable, with higher short and long-term interest rates being counterbalanced by strong risk asset markets and a somewhat weaker exchange rate.

    Long-term interest rates had been rising more substantially than short-term ones, resulting in a steepening of the yield curve globally since last autumn. At the same time, it was underlined that the recent rise in long-term bond yields did not appear to be particularly striking when looking at developments over a longer time period. Over the past two years long-term rates had remained remarkably stable, especially when taking into account the pronounced variation in policy rates.

    The dynamics of market rates since the December Governing Council meeting had been similar on both sides of the Atlantic. This reflected higher term premia as well as a repricing of rate expectations. However, the relative contributions of the underlying drivers differed. In the United States, one factor driving up market interest rates had been an increase in inflation expectations, combined with the persistent strength of the US economy as well as concerns over prospects of higher budget deficits. This had led markets to price out some of the rate cuts that had been factored into the rate expectations prevailing before the Federal Open Market Committee meeting in December 2024. Uncertainty regarding the policies implemented by the new US Administration had also contributed to the sell-off in US government bonds. In Europe, term premia accounted for a significant part of the increase in long-term rates, which could be explained by a combination of factors. These included spillovers from the United States, concerns over the outlook for fiscal policy, and domestic and global policy uncertainty more broadly. Attention was also drawn to the potential impact of tighter monetary policy in Japan, the world’s largest creditor nation, with Japanese investors likely to start shifting their funds away from overseas investments towards domestic bond markets in response to rising yields.

    The passive reduction in the Eurosystem’s balance sheet, as maturing bonds were no longer reinvested, was also seen as exerting gradual upward pressure on term premia over longer horizons, although this had not been playing a significant role – especially not in developments since the last meeting. The reduction had been indicated well in advance and had already been priced in, to a significant extent, at the time the phasing out of reinvestment had been announced. The residual Eurosystem portfolios were still seen to be exerting substantial downside pressure on longer-term sovereign yields as compared with a situation in which asset holdings were absent. It was underlined that, while declining central bank holdings did affect financial conditions, quantitative tightening was operating gradually and smoothly in the background.

    In the context of the discussion on long-term yields, attention was drawn to the possibility that rising yields might also lead to financial stability risks, especially in view of the high level of valuations and leverage in the world economy. A further financial stability risk related to the prospect of a more deregulated financial system in the United States, including in the realm of crypto-assets. This could allow risks to build up in the years to come and sow the seeds of a future financial crisis.

    Turning to financing conditions, past interest rate cuts were gradually making it less expensive for firms and households to borrow. For new business, rates on bank loans to firms and households had continued to decline in November. However, the interest rates on existing loans remained high, and financing conditions remained tight.

    Although credit was expanding, lending to firms and households was subdued relative to historical averages. Growth in bank lending to firms had risen to 1.5% in December in annual terms, up from 1.0% in November. Mortgage lending had continued to rise gradually but remained muted overall, with an annual growth rate of 1.1% in December following 0.9% in November. Nevertheless, the increasing pace of loan growth was encouraging and suggested monetary easing was starting to be transmitted through the bank lending channel. Some comfort could also be taken from the lack of evidence of any negative impact on bank lending conditions from the decline in excess liquidity in the banking system.

    The bank lending survey was providing mixed signals, however. Credit standards for mortgages had been broadly unchanged in the fourth quarter, after easing for a while, and banks expected to tighten them in the next quarter. Banks had reported the third strongest increase in demand for mortgages since the start of the survey in 2003, driven primarily by more attractive interest rates. This indicated a turnaround in the housing market as property prices picked up. At the same time, credit standards for consumer credit had tightened in the fourth quarter, with standards for firms also tightening unexpectedly. The tightening had largely been driven by heightened perceptions of economic risk and reduced risk tolerance among banks.

    Caution was advised on overinterpreting the tightening in credit standards for firms reported in the latest bank lending survey. The vast majority of banks had reported unchanged credit standards, with only a small share tightening standards somewhat and an even smaller share easing them slightly. However, it was recalled that the survey methodology for calculating net percentages, which typically involved subtracting a small percentage of easing banks from a small percentage of tightening banks, was an established feature of the survey. Also, that methodology had not detracted from the good predictive power of the net percentage statistic for future lending developments. Moreover, the information from the bank lending survey had also been corroborated by the Survey on the Access to Finance of Enterprises, which had pointed to a slight decrease in the availability of funds to firms. The latter survey was now carried out at a quarterly frequency and provided an important cross-check, based on the perspective of firms, of the information received from banks.

    Turning to the demand for loans by firms, although the bank lending survey had shown a slight increase in the fourth quarter it had remained weak overall, in line with subdued investment. It was remarked that the limited increase in firms’ demand for loans might mean they were expecting rates to be cut further and were waiting to borrow at lower rates. This suggested that the transmission of policy rate cuts was likely to be stronger as the end of the rate-cutting cycle approached. At the same time, it was argued that demand for loans to euro area firms was mainly being held back by economic and geopolitical uncertainty rather than the level of interest rates.

    Monetary policy stance and policy considerations

    Turning to the monetary policy stance, members assessed the data that had become available since the last monetary policy meeting in accordance with the three main elements the Governing Council had communicated in 2023 as shaping its reaction function. These comprised (i) the implications of the incoming economic and financial data for the inflation outlook, (ii) the dynamics of underlying inflation, and (iii) the strength of monetary policy transmission.

    Starting with the inflation outlook, members widely agreed that the incoming data were broadly in line with the medium-term inflation trajectory embedded in the December staff projections. Inflation had been slightly lower than expected in both November and December. The outlook remained heavily dependent on the evolution of services inflation, which had remained close to 4% for more than a year. However, the momentum of services inflation had eased in recent months and a further decrease in wage pressures was anticipated, especially in the second half of 2025. Oil and gas prices had been higher than embodied in the December projections and needed to be closely monitored, but up to now they did not suggest a major change to the baseline in the staff projections.

    Risks to the inflation outlook were seen as two-sided: upside risks were posed by the outlook for energy and food prices, a stronger US dollar and the still sticky services inflation, while a downside risk related to the possibility of growth being lower than expected. There was considerable uncertainty about the effect of possible US tariffs, but the estimated impact on euro area inflation was small and its sign was ambiguous, whereas the implications for economic growth were clearly negative. Further uncertainty stemmed from the possible downside pressures emanating from falling Chinese export prices.

    There was some evidence suggesting a shift in the balance of risks to the upside since December, as reflected, for example, in market surveys showing that the risk of inflation overshooting the target outweighed the risk of an undershooting. Although some of the survey-based inflation expectations as well as market-derived inflation compensation had been revised up slightly, members took comfort from the fact that longer-term measures of inflation expectations remained well anchored at 2%.

    Turning to underlying inflation, members concurred that developments in most measures of underlying inflation suggested that inflation would settle at around the target on a sustained basis. Core inflation had been sticky at around 2.7% for nearly a year but had also turned out lower than projected. A number of measures continued to show a certain degree of persistence, with domestic inflation remaining high and exclusion-based measures proving sticky at levels above 2%. In addition, the translation of wage moderation into a slower rise in domestic prices and unit labour costs was subject to lags and predicated on profit margins continuing their buffering role as well as a cyclical rebound in labour productivity. However, a main cause of stickiness in domestic inflation was services inflation, which was strongly influenced by wage growth, and this was expected to decelerate in the course of 2025.

    As regards the transmission of monetary policy, recent credit dynamics showed that monetary policy transmission was working. Both the past tightening and the subsequent gradual removal of restriction were feeding through to financing conditions, including lending rates and credit flows. It was highlighted that not all demand components had been equally responsive, with, in particular, business investment held back by high uncertainty and structural weaknesses. Companies widely cited having their own funds as a reason for not making loan applications, and the reason for not investing these funds was likely linked to the high levels of uncertainty, rather than to the level of interest rates. Hence low investment was not necessarily a sign of a restrictive monetary policy. At the same time, it was unclear how much of the past tightening was still in the pipeline. Similarly, it would take time for the full effect of recent monetary policy easing to reach the economy, with even variable rate loans typically adjusting with a lag, and the same being true for deposits.

    Monetary policy decisions and communication

    Against this background, all members agreed with the proposal by Mr Lane to lower the three key ECB interest rates by 25 basis points. Lowering the deposit facility rate – the rate through which the monetary policy stance was steered – was justified by the updated assessment of the inflation outlook, the dynamics of underlying inflation and the strength of monetary policy transmission.

    There was a clear case for a further 25 basis point rate cut at the current meeting, and such a step was supported by the incoming data. Members concurred that the disinflationary process was well on track, while the growth outlook continued to be weak. Although the goal had not yet been achieved and inflation was still expected to remain above target in the near term, confidence in a timely and sustained convergence had increased, as both headline and core inflation had recently come in below the ECB projections. In particular, a return of inflation to the 2% target in the course of 2025 was in line with the December staff baseline projections, which were constructed on the basis of an interest rate path that stood significantly below the present level of the forward curve.

    At the same time, it was underlined that high levels of uncertainty, lingering upside risks to energy and food prices, a strong labour market and high negotiated wage increases, as well as sticky services inflation, called for caution. Upside risks could delay a sustainable return to target, while inflation expectations might be more fragile after a long period of high inflation. Firms had also learned to raise their prices more quickly in response to new inflationary shocks. Moreover, the financial market reactions to heightened geopolitical uncertainty or risk aversion often led to an appreciation of the US dollar and might involve spikes in energy prices, which could be detrimental to the inflation outlook.

    Risks to the growth outlook remained tilted to the downside, which typically also implied downside risks to inflation over longer horizons. The outlook for economic activity was clouded by elevated uncertainty stemming from geopolitical tensions, fiscal policy concerns in the euro area and recent global trade frictions associated with potential future actions by the US Administration that might lead to a global economic slowdown. As long as the disinflation process remained on track, policy rates could be brought further towards a neutral level to avoid unnecessarily holding back the economy. Nevertheless, growth risks had not shifted to a degree that would call for an acceleration in the move towards a neutral stance. Moreover, it was argued that greater caution was needed on the size and pace of further rate cuts when policy rates were approaching neutral territory, in view of prevailing uncertainties.

    Lowering the deposit facility rate to 2.75% at the current meeting was also seen as appropriate from a risk-management perspective. On the one hand, it left sufficient optionality to react to the possible emergence of new price pressures. On the other hand, it addressed the risk of falling behind the curve in dialling back restriction and guarded against inflation falling below target.

    Looking ahead, it was regarded as premature for the Governing Council to discuss a possible landing zone for the key ECB interest rates as inflation converged sustainably to target. It was widely felt that even with the current deposit facility rate, it was relatively safe to make the assessment that monetary policy was still restrictive. This was also consistent with the fact that the economy was relatively weak. At the same time, the view was expressed that the natural or neutral rate was likely to be higher than before the pandemic, as the balance between the global demand for and supply of savings had changed over recent years. The main reasons for this were the high and rising global need for investment to deal with the green and digital transitions, the surge in public debt and increasing geopolitical fragmentation, which was reversing the global savings glut and reducing the supply of savings. A higher neutral rate implied that, with a further reduction in policy rates at the present meeting, rates would plausibly be getting close to neutral rate territory. This meant that the point was approaching where monetary policy might no longer be characterised as restrictive.

    In this context, the remark was made that the public debate about the natural or neutral rate among market analysts and observers was becoming more intense, with markets trying to gauge the Governing Council’s assessment of it as a proxy for the terminal rate in the current rate cycle. This debate was seen as misleading, however. The considerable uncertainty as to the level of the natural or neutral interest rate was recalled. While the natural rate could in theory be a longer-term reference point for assessing the monetary policy stance, it was an unobservable variable. Its practical usefulness in steering policy on a meeting-by-meeting basis was questionable, as estimates were subject to significant model and parameter uncertainty, so confidence bands were too large to give any clear guidance. Moreover, the natural rate was a steady state concept, which was hardly applicable in a rapidly changing environment – as at present – with continuous new shocks.

    Moreover, it was mentioned that a box describing the latest Eurosystem staff estimates of the natural rate would be published in the Economic Bulletin and pre-released on 7 February 2025. The box would emphasise the wide range of point estimates, the properties of the underlying models and the considerable statistical uncertainty surrounding each single point estimate. The view was expressed that there was no alternative to the Governing Council identifying, meeting by meeting, an appropriate policy rate path which was consistent with reaching the target over the medium term. Such an appropriate path could only be identified in real time, taking into account a sufficiently broad set of information.

    Turning to communication aspects, it was widely stressed that maintaining a data-dependent approach with full optionality at every meeting was prudent and continued to be warranted. The present environment of elevated uncertainty further strengthened the case for taking decisions meeting by meeting, with no room for forward guidance. The meeting-by-meeting approach, guided by the three-criteria framework, was serving the Governing Council well and members were comfortable with the way markets were interpreting the ECB’s reaction function. It was also remarked that data-dependence did not imply being backward-looking in calibrating policy. Monetary policy was, by definition, forward-looking, as it affected inflation in the future and the primary objective was defined over the medium term. Data took many forms, and all relevant information had to be considered in a timely manner.

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

    Monetary policy statement

    Monetary policy statement for the press conference of 30 January 2025

    Press release

    Monetary policy decisions

    Meeting of the ECB’s Governing Council, 29-30 January 2025

    Members

    • Ms Lagarde, President
    • Mr de Guindos, Vice-President
    • Mr Centeno
    • Mr Cipollone
    • Mr Demarco, temporarily replacing Mr Scicluna
    • Mr Dolenc, Deputy Governor of Banka Slovenije
    • Mr Elderson
    • Mr Escrivá*
    • Mr Holzmann
    • Mr Kālis, Acting Governor of Latvijas Banka
    • Mr Kažimír
    • Mr Knot
    • Mr Lane
    • Mr Makhlouf*
    • Mr Müller
    • Mr Nagel
    • Mr Panetta
    • Mr Patsalides*
    • Mr Rehn
    • Mr Reinesch
    • Ms Schnabel
    • Mr Šimkus
    • Mr Stournaras*
    • Mr Villeroy de Galhau
    • Mr Vujčić*
    • Mr Wunsch

    * Members not holding a voting right in January 2025 under Article 10.2 of the ESCB Statute.

    Other attendees

    • Mr Dombrovskis, Commissioner**
    • Ms Senkovic, Secretary, Director General Secretariat
    • Mr Rostagno, Secretary for monetary policy, Director General Monetary Policy
    • Mr Winkler, Deputy Secretary for monetary policy, Senior Adviser, DG Monetary Policy

    ** In accordance with Article 284 of the Treaty on the Functioning of the European Union.

    Accompanying persons

    • Mr Arpa
    • Ms Bénassy-Quéré
    • Mr Debrun
    • Mr Gavilán
    • Mr Gilbert
    • Mr Kaasik
    • Mr Koukoularides
    • Mr Lünnemann
    • Mr Madouros
    • Mr Martin
    • Mr Nicoletti Altimari
    • Mr Novo
    • Mr Rutkaste
    • Ms Schembri
    • Mr Šiaudinis
    • Mr Šošić
    • Mr Tavlas
    • Mr Ulbrich
    • Mr Välimäki
    • Ms Žumer Šujica

    Other ECB staff

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

    Release of the next monetary policy account foreseen on 3 April 2025.

    MIL OSI Europe News

  • MIL-OSI Asia-Pac: Union Ministers of State Prof. S.P. Singh Baghel and Shri George Kurian Confer “Prani Mitra” and “Jeev Daya” Awards for Animal Welfare and Protection

    Source: Government of India

    Union Ministers of State Prof. S.P. Singh Baghel and Shri George Kurian Confer “Prani Mitra” and “Jeev Daya” Awards for Animal Welfare and Protection

    Four Key Handbooks for Strengthening Animal Welfare Laws and Policies Released

    Livestock Census to Play Key Role in Shaping Animal Welfare Policy in India:  Prof. S.P. Singh Baghel

    Posted On: 27 FEB 2025 8:37PM by PIB Delhi

    The “Prani Mitra and Jeev Daya Award Ceremony” was organised by the Animal Welfare Board of India (AWBI), a statutory body of the Department of Animal Husbandry and Dairying, at Vigyan Bhawan, New Delhi on 27th February 2025. AWBI has been established under the Prevention of Cruelty to Animals (PCA) Act, 1960 to ensure that animals are not subjected to unnecessary pain or suffering. The event was graced by Union Ministers of State, Ministry of Fisheries, Animal Husbandry and Dairying, Prof. S.P. Singh Baghel and Shri George Kurian. Ms. Alka Upadhyaya, Secretary, Animal Husbandry Department (AHD), Dr. Abhijit Mitra, Animal Husbandry Commissioner and Chairman, AWBI along with senior officials of the ministry and representatives from state governments were also present on the occasion.

     

     

    The event marked the release of four important books for effective implementation of rules and guidelines for animal welfare in India. These books will serve as vital tools for veterinarians, policymakers and field officials, to help ensure timely and effective responses for animal welfare. These include Handbook for Veterinary Officers on Animal Welfare Laws; Law Enforcement Handbook on Animal Welfare Laws; Animal Law Handbook for Urban Local Bodies and Revised Animal Birth Control (ABC) module for Street Dogs Population management, rabies eradication and reducing man-dog conflict.

    In his address, Union Minister of State for Fisheries, Animal Husbandry and Dairying, Prof. S. P. Singh Baghel, elucidated the vision of Vasudev Kutumbakam (the whole world is a family) and stated that the rich Indian cultural heritage teaches us to nurture and revere  animals and other elements of nature. Prof. Baghel said that the ongoing livestock census will not only help in effective policy formation but also be instrumental in proper fund allocation for animal welfare in the country. He emphasized upon the need for parents to counsel and sensitize their children towards animals in order to build a compassionate society. Prof. Baghel also remembered Smt. Rukmini Devi Arunadale, on this occasion for her tireless advocacy for animal welfare that led to the enactment of the Prevention of Cruelty to Animals Act, 1960.

     

    Shri George Kurian, Union Minister of State for Fisheries, Animal Husbandry and Dairying in his address said that India has a rich cultural and spiritual heritage that has always revered animals. He congratulated animal lovers who are tirelessly working for animal welfare and spreading the message of kindness and compassion towards animals in the society.

    Ms. Alka Upadhyaya, Secretary, Animal Husbandry Department (AHD) emphasized upon  the role of various stakeholders i.e. State Governments and Local Bodies that have a major role to play in raising awareness about animal welfare. She stated that much more needs to be done at policy level to sensitize and reduce animal cruelty.  She said that “One Health” has become even more important post the Covid 19 pandemic wherein zoonotic diseases need to pre-emptively be controlled. While highlighting about the positive impact of A-Help (Accredited Agent for Health and Extension of Livestock Production), she said that health of livestock including their nutritional safety needs urgent attention at all levels. Ms. Upadhyaya also emphasized upon the need to frame rules that ease travel for animals in the country. Dr. Abhijit Mitra, Animal Husbandry Commissioner and Chairman, AWBI while deliberating upon the functioning and activities of the Board, highlighted that the Covid 19 pandemic can be traced to animal origins and hence there is a need to invest more in animal health. Chairman, AWBI stated that the issue of stray animals need to be addressed and as a society our focus should be on human animal coexistence.

     

    This year’sPrani Mitra Awards” were conferred to the following individuals / organizations under five categories:

     

    1. Advocacy – Individual to Shri Akhil Jain, Raipur, Chhattisgarh.
    2. Innovative Idea – Individual to Shri Ramesh Bhai Veljibhai Ruparelia, Gondal, Gujarat.
    3. Life Time Animal Service – Individual to Shri Harnarayan Soni, Osiyan, Jodhpur, Rajasthan.
    4. Animal Welfare Organisation (AWO) to Sri Sri 1008 Sriram Ratandasji Vaishanav Go Sewa Samiti, Karahdham, Morena, Madhya Pradesh.
    5. Corporate / PSUs / Government bodies / Cooperatives to Radhe Krishna Temple Elephant Welfare Trust, Jamnagar, Gujarat

     

    In addition, the “Jeev Daya Award” of AWBI was conferred to the following individuals / organizations under three categories:

     

    1. Individual:  Ms. Nisha Subramanian Kunju, Mumbai, Maharashtra
    2. Animal Welfare Organization:  Bhagwan Mahavir Pashu Raksha Kendra, Kutch, Gujarat
    3. Schools/ Institutions/ Teachers/ Children (below the age of 18 years): Master Chaitanya M Saxena, Jaipur, Rajasthan and Master Aadi Shah, Mumbai, Maharashtra.

     

    About “Prani Mitra  and Jeev Daya Awards”

     

    The “Prani Mitra Award” was introduced in 1966 for the Individuals for their outstanding and remarkable contribution in the field of Animal Welfare and Protection, which has now further been extended to the organizations. In addition, the AWBI has instituted the “Jeev Daya Award” in 2001 to recognize and appreciate the services rendered by animal lovers. Since 1966, 54 persons have been conferred with the Prani Mitra Award for their meritorious and outstanding services for the cause of protection of animals and promotion of Animal Welfare in general. Also, the Board had conferred Jeev Daya Award to 12 Individuals / Organizations since 2001.

    ****

    Aditi Agrawal

    (Release ID: 2106757) Visitor Counter : 62

    MIL OSI Asia Pacific News

  • MIL-OSI Asia-Pac: A high-level European Union delegation, led by Ms Ekaterina Zaharieva, currently on India visit, today called on Union Minister for Science and Technology, Dr. Jitendra Singh and discussed primarily the StartUp and innovation collaborations

    Source: Government of India

    A high-level European Union delegation, led by Ms Ekaterina Zaharieva, currently on India visit, today called on Union Minister for Science and Technology, Dr. Jitendra Singh and discussed primarily the StartUp and innovation collaborations

    The meeting between Ekaterina, who is the European Union Commissioner for Startups, Research and Innovation and the Indian Minister marks a significant milestone in India-EU cooperation in the field of science and technology

    Recalls the long-standing and growing cooperation between India and the European Union (EU) in the field of science and technology

    “Prime Minister Narendra Modi Instrumental in Making India a hub of hub of cutting-edge research, fostering innovation, and driving transformative initiatives across various scientific domains” says Dr. Singh

    Highlights AI, Quantum Mission, healthcare, Ocean Polar along with other areas with potential of India -EU collaboration

    Posted On: 27 FEB 2025 8:27PM by PIB Delhi

    A high-level European Union delegation, led by Ms Ekaterina Zaharieva, currently on India visit, today called on Union Minister of State (Independent Charge) for Science and Technology, Dr. Jitendra Singh and discussed primarily the StartUp and innovation collaborations.

    The meeting between Ekaterina, who is the European Union Commissioner for Startups, Research and Innovation and the Indian Minister marks a significant milestone in India-EU cooperation in the field of science and technology.

    The Science and Technology Minister emphasized the longstanding partnership between India and the European Union, which dates back to the signing of the India-EU Science and Technology Agreement in 2001, renewed in 2015 and 2020, and set to be renewed once again for the period 2025-2030.

    Dr. Jitendra Singh credited Prime Minister Narendra Modi for his visionary leadership and unwavering support, which has played a pivotal role in India’s remarkable leap in science and technology. He noted that PM Modi has been instrumental in steering the country towards becoming a hub of cutting-edge research, fostering innovation, and driving transformative initiatives across various scientific domains.

    During the discussions, Dr. Jitendra Singh highlighted several key areas where India and the EU can collaborate further to drive innovation and sustainable development.

    These areas include:

    Water Resource Management

    Clean Energy & Smart Grids

    Artificial Intelligence (AI), Data & Robotics

    Healthcare (including Vaccine Development and Pandemic Preparedness)

    Climate Change & Polar Research

    The Minister stressed that collaboration in these areas would harness the strengths of both India and Europe, with an emphasis on increasing synergy and sharing knowledge and resources.

    Dr. Singh underscored India’s commitment to advancing joint research initiatives with the EU, particularly during the period from 2020 to 2024. He referred to ongoing projects such as:

    Department of Science and Technology (DST): Projects on Water, Energy, AI, Data, and Robotics

    Department of Biotechnology (DBT): Collaborative work on Water Resources and Vaccine Development

    Ministry of Earth Sciences (MoES): Joint research on Climate Change and Polar Research

    The Minister emphasized India’s substantial contribution to these projects, amounting to €20.92 million. He also named several noteworthy achievements and projects, including:

    Geospatial Mapping of Point/Non-Point Pollution Sources (SPRING)

    PAVITRA GANGA: Demonstration of novel wastewater treatment technologies at Kanpur and Barapullah, New Delhi

    ENDFLU: Development of an improved influenza vaccine (Myn002) for better protection against drifted influenza strains

    BRIC-THSTI: Development of domestic influenza vaccine testing capacity through the ENDFLU and INCENTIVE projects

    PRESCRIP-TEC: HPV awareness and screening initiatives

    RUTI®: Phase 1 trials of Anti-TB vaccine

    The Minister of Earth Sciences, Dr. Singh, further emphasized the importance of international collaboration in addressing oceanic and climatic challenges. Key areas of research include:Ocean warming, deoxygenation, and acidification;Polar climate studies;Ocean forecasting.

    Dr. Jitendra Singh stressed the need for global cooperation to address these threats and ensure the health of the planet’s ecosystems.

    Looking ahead, Dr. Singh outlined several promising areas for future India-EU collaboration:

    Quantum Research: India’s emerging Quantum R&D capabilities combined with the EU’s advanced quantum hardware can lead to breakthroughs in secure communication and computing.

    Bioeconomy: India’s first-of-its-kind Bioeconomy (BioE3) policy, along with the EU’s expertise, can foster growth in the sector.

    Green Hydrogen: India’s scaling renewable hydrogen projects, paired with the EU’s leadership in electrolysis technology, can drive transformational change in energy.

    Battery Technology & Blue Economy: Exploring innovations in energy storage and sustainable use of ocean resources.

    High-Performance Computing: Enhancing computational capabilities for scientific and industrial applications.

    Dr. Singh also highlighted India’s commitment to tackling climate change through clean energy collaboration, particularly in offshore wind and solar projects. This, he said, would help meet the ambitious climate targets set by both India and the EU.

    The S&T Minister pointed out that India’s National AI Mission, backed by substantial funding, will be a key area for collaboration between India and the EU. He emphasized the potential for both regions to lead in AI safety and security, ensuring the development of AI in a sustainable, equitable, and inclusive manner.

    In the health sector, Dr. Singh identified several key areas where India and the EU can collaborate:Infectious and Non-Infectious Diseases; Novel Therapeutics, Biologicals, and Early Diagnostics; Drug Repurposing; AI in Healthcare Antimicrobial Resistance (AMR); One Health Approach.

    He stressed that the partnership between India and Europe could extend to these critical health challenges, which have global implications.

    From the Directorate-General for Research and Innovation, Mr. Marc Lemaître, Director-General; Ms. Nienke Buisman, Head of Unit, Innovation, Prosperity, and International Cooperation; and from the Cabinet of the Commissioner, Ms. Sophie Alexandrova, Deputy Head of Cabinet, along with Mr. Ivan Dimov, Member of Cabinet; Mr. Pierrick Fillon-Ashida, First Counsellor & Head of the Research & Innovation Section; Dr. Vivek Dham, Policy Officer, Research & Innovation Section, EU Delegation to India, were part of the delegation.

    Dr. Jitendra Singh concluded the discussions by reiterating India’s deep commitment to strengthening its partnership with the European Union in science and technology. He expressed confidence that the shared vision for collaboration in key sectors will create a pathway to solving global challenges and advancing mutual interests.

    ********

    NKR/PSM

    (Release ID: 2106749) Visitor Counter : 41

    MIL OSI Asia Pacific News

  • MIL-OSI Security: Citrus Heights Woman Pleads Guilty to Participation in $1 Million Unemployment Insurance Benefits Fraud Scheme

    Source: Office of United States Attorneys

    SACRAMENTO, Calif. — Rochelle Pasley, 34, of Citrus Heights, pleaded guilty today to conspiracy to commit mail fraud, mail fraud, and aggravated identity theft, Acting U.S. Attorney Michele Beckwith announced.

    According to court documents, between June and December 2020, Pasley and Deshawn Oshaea Campbell, 36, of Citrus Heights, conspired to defraud by filing fraudulent unemployment insurance claims with the California Employment Development Department (EDD) seeking Pandemic Unemployment Assistance benefits under the CARES Act. During the conspiracy, the defendants obtained the identifying information of other individuals and used their identities to submit dozens of fraudulent claims. The claims represented, among other things, that the claimants had recently lost employment or were unable to find employment due to the COVID-19 pandemic. These claims were fraudulent because, for instance, many of the individuals whose identities were used did not reside in California and were thus ineligible for benefits from EDD.

    In the applications, the defendants used mailing addresses that were under their control, or under the control of their family and friends. EDD approved more than 50 of the fraudulent claims and authorized Bank of America to mail out EDD debit cards containing benefits. The defendants then obtained these debit cards and used them to withdraw the benefits at ATMs throughout California and to make direct purchases, all for their own benefit. The scheme resulted in EDD paying out over $1 million.

    This case is the product of an investigation by the U.S. Postal Inspection Service, the Department of Labor – Office of Inspector General, and the EDD – Investigation Division. Assistant U.S. Attorneys Jessica Delaney and Justin Lee are prosecuting the case.

    Pasley is scheduled to be sentenced by U.S. District Judge Daniel J. Calabretta on June 26, 2025. Pasley faces a maximum statutory penalty of 20 years in prison and a $250,000 fine for each count of conspiracy and mail fraud, and a mandatory, consecutive two-year prison term for aggravated identity theft. The actual sentence, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.

    Charges are pending against Campbell. Those charges are only allegations, and Campbell presumed innocent until and unless proven guilty beyond a reasonable doubt.

    MIL Security OSI

  • MIL-OSI Europe: Written question – EU action and leadership on global health in view of the US withdrawal from the World Health Organization (WHO) – P-000773/2025

    Source: European Parliament

    Priority question for written answer  P-000773/2025
    to the Commission
    Rule 144
    Stine Bosse (Renew), Vlad Vasile-Voiculescu (Renew), Catarina Martins (The Left), Sirpa Pietikäinen (PPE), Lena Schilling (Verts/ALE), Lucia Yar (Renew), Karin Karlsbro (Renew), Emma Wiesner (Renew), Abir Al-Sahlani (Renew), Romana Jerković (S&D), Tilly Metz (Verts/ALE), Maria Walsh (PPE), Olivier Chastel (Renew), Joanna Scheuring-Wielgus (S&D), Christine Singer (Renew), Barry Andrews (Renew), Sebastian Everding (The Left), Vicent Marzà Ibáñez (Verts/ALE), Veronika Cifrová Ostrihoňová (Renew), Sophie Wilmès (Renew), Kim Van Sparrentak (Verts/ALE), Raquel García Hermida-Van Der Walle (Renew), Benoit Cassart (Renew), Elisabeth Grossmann (S&D), Elena Kountoura (The Left), Rasmus Nordqvist (Verts/ALE), Villy Søvndal (Verts/ALE), Marit Maij (S&D), Charles Goerens (Renew), Marc Angel (S&D), Anna-Maja Henriksson (Renew), Isabella Lövin (Verts/ALE), Alice Kuhnke (Verts/ALE), Pär Holmgren (Verts/ALE)

    The United States’ impending withdrawal from the WHO, its reinstatement of the Mexico City Policy and the abandonment of the pandemic prevention treaty present an urgent challenge both to Europe and the entire world at a time when global collaboration on anti-microbial resistance (AMR), HIV, and the promotion of sexual and reproductive health and rights (SRHR) is as important as ever.

    • 1.Given Europe’s role as one of the principal WHO donors, what concrete steps will the Commission and the Vice-President of the Commission / High Representative of the Union for Foreign Affairs and Security Policy take to both step up EU action on global health financing and mitigate the likely harm to health in Europe and globally resulting from these decisions, and how will Europe seek to fill the global financing gap in the fight against HIV and in promoting SRHR?
    • 2.Given the failure to agree on binding measures on AMR at the UN level, what specific actions will the Commission and the European External Action Service now take to bolster international efforts to combat AMR?
    • 3.Will the Commission address AMR in the upcoming strategy for a Preparedness Union? If so, how will it complement ongoing initiatives such as the Health and Digital Executive Agency’s drug subscription pilot and the Health Emergency Preparedness and Response Authority’s plans to explore pull incentives?

    Supporter[1]

    Submitted: 19.2.2025

    • [1] This question is supported by a Member other than the authors: Marie Toussaint (Verts/ALE)

    MIL OSI Europe News

  • MIL-OSI United Kingdom: Achievement of Curriculum for Excellence Levels update

    Source: Scotland – Highland Council

    The Highland Council’s Education Committee met yesterday (Wednesday 26 February 2025) and noted the Council’s continuing commitment to improving attainment and achievement at all stages through a range of strategic initiatives.    

    Education Committee Chair, Cllr John Finlayson said: “2023/24 data shows that Highland is one of the most improved authorities in Scotland across all primary measures and the rate and trajectory of improvement is positive, identifying that the strategic approach being taken is having a sustained impact. The improvement over the last 2 years is particularly impressive and I would like to thank all staff and young people that have worked so hard to make this happen.

    “Whilst we recognise that attainment has improved, there is still work to be done.  We remain ambitious to continue and where possible, accelerate, this rate of improvement to ensure that all of our young people are supported to achieve their full potential.  To support this aim, we will be engaging with stakeholders in the development of our 5 year vision for education in Highland to underpin our raising attainment action plan.

    “Our schools continue to face challenges in relation to supporting the health & wellbeing of learners, including factors relating to the cost-of-living and post-pandemic issues impacting pupils’ school attendance.  The Local Authority is currently seeking views from secondary stage pupils and the parents/carers of children who struggle attending secondary school on a regular basis.  I encourage those impacted by low school attendance to fill out the short survey. The feedback collated will help us to better understand the challenges facing families and will inform the approaches taken to help our young learners to attend, achieve and succeed at school.”

    The survey is anonymous and will run from Monday 24 February until Friday 14 March 2025.

    The secondary surveys for both parents and pupils are available here:

    Parent survey on attendance: https://forms.office.com/e/vYZvATHXtC

    Pupil survey on attendance : https://forms.office.com/e/QgeMqY21UT

    27 Feb 2025

    MIL OSI United Kingdom

  • MIL-OSI Canada: Recruiting Starts for Province’s First Internal Travel Nurse Program

    Source: Government of Canada regional news

    Registered nurses can now apply to participate in the province’s first internal travel nurse program.

    The pilot program will create a Nova Scotia Health travel nurse team to be deployed to emergency departments.

    “We committed to establishing an internal travel nurse team so we can limit the hiring of nurses from external companies,” said Premier Tim Houston. “This program is the first of its kind in the Maritimes and is intended to help retain and provide a different opportunity to those already working in our system and bring those currently working for external travel nurse agencies into our public healthcare system.”

    The new program will hire 20 to 30 full-time registered nurses and offer internal and external candidates an opportunity to grow their skills and experience, travel and work in different areas.

    Expected to launch by the end of March, it is a joint effort of the Province, Nova Scotia Health and the Nova Scotia Council of Nursing Unions.


    Quotes:

    “We’re very excited to be accepting applications for this pilot program. This is the result of a tremendous amount of work in close partnership with the council of unions, which will ultimately provide safer, more timely access to care for Nova Scotians and help Nova Scotia Health continue to attract and keep registered nurses.”
    Annette Elliott Rose, Chief Nurse Executive and Vice-President, Clinical Performance and Professional Practice, Nova Scotia Health

    “Since before the pandemic, nurses’ unions have been calling on the Province to reduce its reliance on agency nurses. This announcement is a step in the right direction, one that provides structure, support and stability for those interested in working in this area of nursing and for Nova Scotians who require care.”
    Janet Hazelton, Chair, Nova Scotia Council of Nursing Unions, and President, Nova Scotia Nurses’ Union


    Quick Facts:

    • Nova Scotia Health and the council of nursing unions will share details soon about information sessions for interested candidates
    • nurses on the team will have $6 per hour, or 15 per cent – whichever amount is higher – added to their registered nurse base hourly rate for all shifts worked as a travel nurse
    • internal candidates will continue to accrue pension and seniority and maintain their benefits with Nova Scotia Health
    • the Province announced changes to limit hiring of external travel nurses in December 2023

    Additional Resources:

    Provincial internal travel nurse program job posting: https://jobs.nshealth.ca/nsha/job/All-Locations-Internal-Travel-Nurse-Emergency-Department-NS/589878117/

    News release – New Approach to Hiring Travel Nurses: https://news.novascotia.ca/en/2023/12/04/new-approach-hiring-travel-nurses

    Action for Health, the Province’s strategic plan to improve healthcare: https://actionforhealth.novascotia.ca/


    Other than cropping, Province of Nova Scotia photos are not to be altered in any way.

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