Category: Politics

  • MIL-OSI Submissions: Global Bodies – IPU to hold a global conference of women parliamentarians in Mexico

    Source: Inter-Parliamentary Union (IPU)

    Thursday, 27 February, Mexico City, Mexico – The Inter-Parliamentary Union (IPU) is pleased to announce the Global Conference of Women Parliamentarians From Mexico to the World: Let’s mobilize for gender parity! which will be held in Mexico City from 13 to 16 March 2025. The Conference is being jointly organized by the IPU and the Senate of Mexico.

    The Conference aims to identify successful measures and strategies for advancing gender parity in parliaments, share good practices, and inspire action towards achieving equal participation and power for women in political decision-making.

    Mexico is one of only six countries in the world to have achieved gender equality in parliament. This is largely due to a 2014 constitutional amendment requiring political parties to ensure gender parity in the nomination of candidates.

    In June 2024, Mexico made history by electing its first female President, Ms. Claudia Sheinbaum Pardo, who will open the Conference.

    IPU leadership will be represented by Dr. Tulia Ackson, President of the IPU, Ms. Cynthia López Castro, Senator of Mexico and President of the IPU Bureau of Women Parliamentarians, and Mr. Martin Chungong, Secretary General of the IPU.

    The Conference will host a series of panel discussions and open debates on critical topics such as strategies to engage men in advancing gender equality, breaking the ceilings for women’s leadership and achieving zero tolerance for violence against women in politics.

    Registration

    Parliaments are invited to send a delegation of up to four members of parliament, including one male MP and at least one young woman MP (under 40) to attend the Conference.

    Register before 1 March: https://docs.google.com/forms/d/e/1FAIpQLSeG66ZLLHdeBJUezwTutOJbfLzZf8wYZUt-roQ7XxYn0FYIig/viewform?pli=1

    MIL OSI – Submitted News

  • MIL-OSI USA: Ricketts, Flood Introduce CRA Legislation to Overturn CFPB’s Regulatory Overreach of Consumer Payment Companies

    US Senate News:

    Source: United States Senator Pete Ricketts (Nebraska)
    WASHINGTON, D.C. – Today, U.S. Senator Pete Ricketts (R-NE) and U.S. Representative Mike Flood (R-NE-01) introduced a bicameral Congressional Review Act resolution to overturn the Consumer Financial Protection Bureau (CFPB)’s latest overreach in the digital consumer payment market. The legislation would nullify the CFPB’s burdensome “Defining Larger Participants of a Market for General-Use Digital Consumer Payment Applications” rule, which took effect on January 9, 2025.
    “Following their election loss, the Biden-Harris CFPB rushed an eleventh-hour rule to attack non-bank digital consumer payment applications,” said Senator Ricketts. “This one-size-fits-all solution in search of a problem unnecessarily expands the CFPB’s authority. Our legislation eliminates barriers to innovation, cuts red tape, and supports our job-creators. Thank you, Congressman Flood, for leading this common-sense effort in the House. I urge my colleagues to consider this legislation without delay.”
    “Over the last four years, progressive activists sought to dramatically expand the regulatory authority of the Consumer Financial Protection Bureau,” said Representative Flood. “One of the tools they used to achieve their goal was the Larger Participants Rule, which has attempted to leverage the agency’s examination authority to regulate non-bank consumer payments firms. Rolling back this regulation is critical to ensuring that the CFPB doesn’t become a barrier to innovation for job creators across America. Thank you to my colleagues in the House who are joining this effort and to Senator Ricketts for leading on this bicameral effort as well.”
    “Technology helps Americans of all backgrounds manage their financial lives. The CFPB’s rule doesn’t benefit consumers or the market, but it would stifle fintech innovation,” said Carl Holshouser, Executive Vice President of TechNet. “The final rule’s one-size-fits-all approach fails to follow applicable law, does not identify any specific consumer harm, and largely ignores stakeholder comments. Instead, the Bureau casts a wide net to turn itself into a general technology regulator instead of a financial one. TechNet is thankful to Representative Flood and Senator Ricketts for introducing this important resolution and looks forward to Congress rescinding the CFPB’s rule.”
    “The final rule was deeply flawed, failed to define a market or identify specific risks to consumers, and conflated diverse uses and products into a one-size-fits-all approach,” said Penny Lee, President and CEO of the Financial Technology Association. “This was an overreach by the CFPB as payment companies are well-regulated at the state and federal levels. We applaud Senator Pete Ricketts and Congressman Mike Flood in leading the Congressional Review Act process.”
    Bill text can be found here.
    BACKGROUND
    On November 21, 2024, the CFPB finalized a rule entitled “Defining Larger Participants of a Market for a General-Use Digital Consumer Payment Applications”— one of the Biden Administration’s many midnight rulemakings at the end of the year. Effective Jan. 9, 2025, the rule stretches CFPB’s powers to establish new supervision and examination authority over nonbank entities identified as “larger participants” in the general-use digital consumer payment applications market. These entities include payment apps, digital wallets, peer-to-peer payment apps, and other entities. “Larger participants” are entities that facilitate at least 50 million consumer payment transactions annually. Payment apps like Paypal or Venmo are examples.
    Many payment companies are already regulated at the federal and state level. Consumers are having positive experiences in engaging with these services. Despite minimal consumer complaints about payment services—accounting for only 1% of the CFPB’s 1.3 million complaints in 2023—the CFPB chose to layer additional oversight on an already well-regulated industry.
    This one-size-fits-all solution in search of a problem expands CFPB’s authority without properly identifying a specific market it seeks to supervise or the risks within a specific market that pose harm to consumers that existing regulation doesn’t already mitigate. It will layer overreaching, duplicative regulation that could stifle innovation and lead to fewer services and increased costs.
    Further, the cost-benefit analysis supporting the rule is insufficient, unrealistic, and notably underestimates a CFPB exam to cost just $25,001.

    MIL OSI USA News

  • MIL-OSI Canada: Federal government invests in shoreline adaptation and restoration for the Tsleil-Waututh Nation

    Source: Government of Canada regional news

    From Housing, Infrastructure and Communities Canada:
    English: https://www.canada.ca/en/housing-infrastructure-communities/news/2025/02/federal-government-invests-in-shoreline-adaptation-and-restoration-for-the-tsleil-waututh-nation.html  
    French: https://www.canada.ca/fr/logement-infrastructures-collectivites/nouvelles/2025/02/le-gouvernement-federal-investit-dans-ladaptation-et-la-restauration-des-berges-de-la-nation-des-tsleil-waututh.html

    Erosion and flood protection improvements will help preserve the səlilwətaɬ (Tsleil-Waututh Nation) shores after a joint investment of more than $10.1 million from the federal government and the Nation.

    This project includes beach replenishment, which will involve concept planning and engineering, site preparation, marine riparian shoreline planting, and the installation of intertidal adaptation features.

    These improvements will protect the shoreline while promoting biodiversity, restoring habitat health, strengthening structural capacity, and improving ecological systems. This project will also increase the Nation’s resilience to climate change, natural disasters, and extreme weather events for years to come.

    Quotes:

    “Thank you to the Tsleil-Waututh Nation for their dedication, innovation, and hard work in restoring and protecting the shoreline from flooding and rising sea levels. Our government is working alongside Indigenous partners to tackle extreme weather, adapt to climate change, and build stronger, more resilient communities. Traditional Indigenous knowledge and experience from those living on this land since time immemorial is critical in fighting climate change and protecting our shared future. That’s why federal programs like this empower local leaders to drive the changes that work best in their communities.”

    – The Honourable Terry Beech, Minister of Citizens’ Services and Member of Parliament for Burnaby North – Seymour

    “These improvements to the Tsleil-Waututh Nation lands will protect the shoreline and marine habitat now and for future generations. The impacts of climate change make it essential that we act now to address potential hazards to make our communities stronger, preserve our natural ecosystems and keep people safe.”

    – The Honourable Kelly Greene, B.C. Minister of Emergency Management and Climate Readiness

    “səlilwətaɬ (Tsleil-Waututh Nation) is grateful for Green Adaptation, Resilience and Disaster Mitigation funding to support our reserve shoreline adaptation and resilience project. This funding will enable us to complete Tsleil-Waututh Nation Reserve shoreline protection, beach nourishment, and restoration works to address longstanding concerns with coastal erosion and flooding, and to strengthen community resilience to climate change. This project is also expected to enhance marine ecological health and biodiversity, protect səlilwətaɬ community lands and cultural sites, and improve community access to the shoreline for stewardship practices and intergenerational knowledge sharing.”

    – Chief Jen Thomas, səlilwətaɬ (Tsleil-Waututh Nation)

    Quick Facts:

    • The federal government is investing $7,599,914 through the Green Infrastructure Stream of the Investing in Canada Infrastructure Program and the səlilwətaɬ (Tsleil-Waututh Nation) is contributing $2,533,305 with support from the Government of British Columbia.
    • This stream helps build greener communities by contributing to climate change preparedness, reducing greenhouse gas emissions, and supporting renewable technologies.
    • Including today’s announcement, over 150 infrastructure projects under the Green Infrastructure Stream have been announced in British Columbia, with a total federal contribution of more than $610 million and a total provincial contribution of more than $429 million.
    • Under the Investing in Canada Plan, the federal government is investing more than $180 billion over 12 years in public transit projects, green infrastructure, social infrastructure, trade and transportation routes, and Canada’s rural and northern communities.
    • Federal funding is conditional on fulfilling all requirements related to consultation with Indigenous groups and environmental assessment obligations.

    Associated Links:

    Investing in Canada: Canada’s Long-Term Infrastructure Plan:
    https://housing-infrastructure.canada.ca/plan/icp-publication-pic-eng.html

    Green Infrastructure Stream:
    https://housing-infrastructure.canada.ca/plan/icp-publication-pic-eng.html

    Housing and Infrastructure Project Map:
    https://housing-infrastructure.canada.ca/gmap-gcarte/index-eng.html

    Strengthened Climate Plan:
    https://www.canada.ca/en/services/environment/weather/climatechange/climate-plan/climate-plan-overview.html

    For more information (media only), please contact:

    MIL OSI Canada News

  • MIL-OSI New Zealand: Insurance Council – Half of Kiwis seek action on climate

    Source: Insurance Council of NZ

    One in two New Zealanders believe the Government should invest more to protect people and properties from extreme weather events, according to a new survey.
    Commissioned by the Insurance Council of New Zealand | Te Kāhui Inihua o Aotearoa (ICNZ), the survey found 49% of respondents believe the Government should invest more to safeguard lives and properties, compared with 53% in 2023 and 39% in 2002. Some 29% remain unsure about this issue.
    A sizeable majority of 83% of respondents believe there should be more control on where properties are built so they are not at risk from flooding, similar to previous surveys.
    “It’s clear Kiwis want to see more investment in resilience measures and action to avoid building in dumb places,” ICNZ chief executive Kris Faafoi said.
    “The Government is taking steps in the right direction, but New Zealand needs to remain focused on finding solutions to reduce risk and keep communities safe as we face the prospect of more extreme weather.”
    The survey also found:
    • Nearly half of those surveyed (46%) feel the Government should cover the cost of actions to reduce risk from the impact of climate change, followed by councils at 13%, individuals (12%), private sector (6%), and local communities (4%)
    • A majority of people (62%) believe the Government should take the lead to build New Zealand’s resilience and ability to cope with natural events such as earthquakes, floods and wildfires. This is followed by councils (16%), local communities (6%), individuals (4%) and thr private sector (3%).
    “New Zealand is highly vulnerable to natural hazards and we are used to responding to major events. The insurance industry is committed to working collaboratively with government to reduce risk before disaster strikes,” Kris Faafoi said.
    “ICNZ is holding its annual conference next week in Auckland and we are bringing together politicians, industry leaders, and regulators to discuss the challenges, opportunities, and actions necessary to build resilience in the face of climate change.
    “The industry supports a broad political consensus that delivers a clear, coordinated and enduring climate change framework that ensures we avoid building in dumb places and that we do invest in infrastructure to protect communities.
    “By investing in solutions to mitigate and adapt to the changing climate and reduce risk, we can safeguard New Zealanders, reduce the costs to taxpayers and ratepayers, and keep insurance affordable and accessible,” Kris Faafoi said.

    MIL OSI New Zealand News

  • MIL-OSI USA: Lee and Roy Introduce HERO Act for 119th Congress

    US Senate News:

    Source: United States Senator for Utah Mike Lee
    WASHINGTON – Sen. Mike Lee (R-UT) introduced the Higher Education Reform and Opportunity (HERO) Act, a bill that brings transparency, accountability, and competition to higher education. Rep. Chip Roy (R-TX) sponsored the HERO Act in the House of Representatives.
    The HERO Act aims to simplify federal student loans by offering a single option and introduces a new financial “skin-in-the-game” requirement for universities. Under this requirement, universities will be rewarded for each Pell Grant graduate but will also be obliged to repay a percentage of the total loans issued, with consideration for loan default rates and the average national unemployment rate.  
    Moreover, the bill empowers states to establish alternative accreditation systems that can accredit any postsecondary institution offering programs applicable to degrees, credentials, or professional certifications. This flexibility allows states to determine clock hour and minimum program length requirements, making short-term workforce development programs and nontraditional educational providers eligible for federal student aid.
    Additionally, the HERO Act mandates higher education institutions participating in federal student loan programs to publish relevant outcome information in an easily accessible format. This transparency provides students with the necessary information to make informed decisions about which institutions to attend.
    “Too often, our bright young minds needlessly face the unfair choice of either drowning in debt or sacrificing their dreams of higher education,” Sen. Lee said. “The HERO Act aims to alleviate the ever-increasing financial burden required of students pursuing their educational goals by capping loans that exacerbate costs. It would transform our educational landscape and allow students to tailor their unique learning journey and gain the skills needed to excel in today’s dynamic economy.”
    “Universities have largely become government-run crony rackets focused on turning students into far-left political activists rather than young adults prepared for success in the workforce,” Congressman Roy said. “Federal involvement has only made this problem worse. The HERO Act is an important first step to fix this and will require institutions of higher education to have some ‘skin in the game’ regarding their students’ outcomes, simplify the federal student loan system, and perhaps most important empower states to establish alternative accreditation systems. I look forward to working with my colleagues to get this across the finish line.” 
    For bill text, click HERE.For a two-pager, click HERE.

    MIL OSI USA News

  • MIL-OSI United Nations: UN chief calls for peace and justice as Ramadan begins

    Source: United Nations MIL OSI

    UN Affairs

    As Muslims around the world prepare to mark the beginning of the Holy Month of Ramadan, UN Secretary-General António Guterres issued a call on Thursday for compassion, empathy and generosity, urging people everywhere to embrace their common humanity and work towards a more just and peaceful world.

    In this Holy Month, let us all be uplifted by these values and embrace our common humanity to build a more just and peaceful world for all,” he said in a message.

    He also extended a special message of support to those experiencing hardship, displacement and violence.

    I stand with all those who are suffering. From Gaza and the wider region, to Sudan, the Sahel and beyond,” he said, joining those observing Ramadan in calling for peace and mutual respect.

    The first day of fasting for the Holy Month in Mecca, Saudi Arabia, will be Saturday, March 1, or Sunday, March 2, depending on the sighting of the new moon, according to media reports.

    Other countries, especially in the western hemisphere, could see the Ramadan moon before Mecca due to alignments in the night sky.

    Ramadan is determined by the Islamic lunar calendar, which begins with the sighting of the crescent moon.

    Secretary-General Guterres’ video message for the begining of Ramadan.

    Solidarity visit to Bangladesh

    As part of his annual Ramadan solidarity visit, Mr. Guterres will travel to Bangladesh from 13 to 16 March, where he will meet Rohingya refugees in Cox’s Bazar, one of the world’s largest refugee settlements, his Spokesperson Stéphane Dujarric announced at the regular news briefing at the UN Headquarters.

    Mr. Guterres will also take part in an Iftar meal with refugees and members of the Bangladeshi host community, recognising the generosity of Bangladesh in sheltering nearly one million Rohingya who fled persecution and violence in Myanmar.

    During his visit, he will also visit the capital, Dhaka, where he will meet Chief Adviser in the interim government, Professor Muhammed Yunus, as well as young representatives from civil society.

    An annual tradition

    The Secretary-General has made solidarity visits an annual tradition, beginning during his decade-long tenure as UN High Commissioner for Refugees, when he regularly observed Ramadan alongside displaced and marginalized communities.

    “Every Ramadan, I undertake a solidarity visit and fast with a Muslim community around the globe. These missions remind the world of the true face of Islam,” Mr. Guterres said in his message.

    Ramadan embodies the values of compassion, empathy and generosity. It is an opportunity to reconnect with family and community…And I always come away even more inspired by the remarkable sense of peace that fills this season,” he added.

    MIL OSI United Nations News

  • MIL-Evening Report: Shuttered car factories in Australia could be repurposed to make houses faster and cheaper

    Source: The Conversation (Au and NZ) – By Ehsan Noroozinejad, Senior Researcher, Urban Transformations Research Centre, Western Sydney University

    studiovin/Shutterstock

    Australia is in the grip of a severe housing shortage. Many people are finding it extremely difficult to find a place to live in the face of rising rents and property price surges. Homelessness is rising sharply. Tent cities are becoming more common.

    The federal government has pledged to encourage the building of about 1.2 million new dwellings over the five years from mid-2024. The problem is, conventional building techniques are unlikely to be able to respond to the scale of demand quickly. Conventional building is expensive and slow. Faster, cheaper construction methods are needed.

    There might be a way to accelerate the build. In recent years, car manufacturers Ford, General Motors and Toyota have shuttered their Australian factories, due to intense global competition.

    Before these factories fell silent, they were home to trained workers, advanced machinery and efficient production systems. In Australia, companies such as Hickory Group are working to turn car factories into house factories. In Japan, Toyota has been making modular housing for decades, by adapting car production line techniques.

    Scaling this approach up in Australia could simultaneously address industrial decline and housing demand.

    Can mothballed car factories really make houses?

    After years of decline, Australia’s car manufacturing industry came to an end in 2017, when Toyota and General Motors’ factories stopped mass production. Ford’s local factories closed a year earlier. It was the end of 70 years of mass production, though companies such as Premcar are still making local versions of overseas cars.

    Thousands of factory workers lost their jobs. But the effect rippled outward, as about 40,000 workers in the supply chain lost their jobs.

    These automobile factories left behind more than just empty structures.

    Most of them have not been demolished. Some still have advanced manufacturing lines. Their former workers with automation and precise engineering training might be working in different fields, such as caravan manufacturing.

    Building a house in a factory has similarities to car manufacturing. Both use modular production, in which individual parts are manufactured and then assembled into a final product.

    That’s not to say this would be easy – there would be regulatory hurdles to overcome and the factories would need an overhaul.

    One tough part is figuring out how to use modern car-building tools (such as robotics) to make components of houses. While building cars and houses share some ideas, they’re not the same.

    Bringing these factories back into production would boost the economies of states such as Victoria.

    States such as South Australia have already started down this path, turning Mitsubishi’s defunct Tonsley Park factory into an innovation precinct hosting modular construction companies such as Fusco Constructions, which will begin operations next year.

    Meanwhile, much work has been done in Australia and overseas to find ways to mass-produce housing using factories.

    Imagine thousands of individual car parts were delivered to your front yard, where workers painstakingly put the car together. This seems crazy. But it’s essentially what we do with houses, especially freestanding ones. Advocates for modern methods of construction have pointed out the inefficiencies of transporting building materials to a site and assembling them there.

    Some large-scale builders are already working to automate more of the home-building process. Besides making houses more cheaply, the benefits include centralising production around a factory, protection from weather delays, and the ability to use industrial robots.

    Car assembly lines guarantee each component is manufactured to exacting specifications. Automobile manufacturing has been transformed by new technologies, including digital twin simulations, robotics and 3D printing. But the building industry has been slower to take these up. If we can bring these technologies to bear on how we make homes, we can accelerate construction, reduce errors and cut prices.

    In fact, we are seeing some car manufacturers moving into home building. Mercedes-Benz, Bugatti, Bentley, Aston Martin and Porsche are all putting their names on high-end homes in some way, while Honda has explored manufacturing smart, low-energy homes.

    Change is coming – but slowly

    Advanced building techniques are not new to Australia. Prefab buildings are already being built on factory lines by companies such as Fleetwood, ATCO Structures and Logistics and Modscape.

    Here, building components are produced in a controlled factory setting before being delivered to the construction site for prompt assembly. Dozens of companies are working in this space. To date, however, most of these buildings will be used as schools, police stations or temporary housing for mining workers.

    Last year, the federal government set up a A$900 million fund as an incentive for state and territory governments to accelerate building approvals and take up prefab techniques. To date, the sector is struggling to scale up due to a lack of infrastructure and too few manufacturers.

    Other countries are further along the path. In Sweden, up to 84% of detached homes are made with prefabricated components, compared with about 15% in Japan and 5% in the United States, United Kingdom and Australia.

    One option is to adopt yet more advanced techniques, such as lean manufacturing and automated assembly. Both of these are well established in car-making, and could be used to increase the speed and accuracy of prefab home construction.

    What would it take to make this happen?

    Australia’s housing crisis has been years in the making. To solve it, we may need bold solutions.

    Converting old car factories into affordable home factories could help accelerate our response to the challenge – and reinvigorate industrial precincts.

    It would take work and funding to make this happen. But there are commonalities. Making prefab homes depends on precise, modular production methods that work best when automated. Transitions like these can happen.

    Dr. Ehsan Noroozinejad has received funding from both national and international organisations to support research addressing housing and climate crises. His most recent funding comes from the James Martin Institute for Public Policy. He has received funding from the Natural Sciences and Engineering Research Council of Canada

    ref. Shuttered car factories in Australia could be repurposed to make houses faster and cheaper – https://theconversation.com/shuttered-car-factories-in-australia-could-be-repurposed-to-make-houses-faster-and-cheaper-249709

    MIL OSI AnalysisEveningReport.nz

  • MIL-OSI USA: NASA Selects Participating Scientists to Join Lucy Asteroid Mission

    Source: NASA

    NASA has selected eight participating scientists to join its Lucy mission to the Jupiter Trojan asteroids. These asteroids are remnants of our early solar system trapped on stable orbits associated with – but not close to – the planet Jupiter. 

    NASA’s Lucy in the L4 Trojans Participating Scientist Program supports scientists to carry out new investigations that address outstanding questions related to the Jupiter Trojan asteroids as part of the Lucy mission. Launched in 2021, the Lucy spacecraft is currently on its way to the L4 Trojan swarm, which leads Jupiter in its orbit around the Sun. This is the first selection of Lucy participating scientists, who will become mission science team members for the four major asteroid encounters that the Lucy spacecraft will have in the L4 swarm in 2027 and 2028, and who will remain on the team for subsequent scientific analysis until 2030. The newly selected participating scientists are:

    Harrison Agrusa, Observatoire de la Côte d’Azur in Nice, France
    Benjamin Byron, University of Central Florida in Orlando
    Emily Costello, University of Hawaii, Honolulu
    Masatoshi Hirabayashi, Georgia Tech Research Corporation [TSS1] in Atlanta
    Fiona Nichols-Fleming, Smithsonian Institution in Washington
    Norbert Schorghofer, Planetary Science Institute in Tucson, Arizona
    Jennifer Scully, NASA’s Jet Propulsion Laboratory in Southern California
    Anne Verbiscer, University of Virginia, Charlottesville

    Lucy’s principal investigator, Hal Levison, is based out of the Boulder, Colorado, branch of Southwest Research Institute, headquartered in San Antonio. NASA’s Goddard Space Flight Center in Greenbelt, Maryland, provides overall mission management, systems engineering, and safety and mission assurance. Lockheed Martin Space in Littleton, Colorado, built and operates the spacecraft. Lucy is the 13th mission in NASA’s Discovery Program. NASA’s Marshall Space Flight Center in Huntsville, Alabama, manages the Discovery Program for the Science Mission Directorate at NASA Headquarters in Washington. For more information on NASA’s Lucy mission, visit: https://www.nasa.gov/lucy

    MIL OSI USA News

  • MIL-OSI Europe: Telephone conversation with President El-Sisi of Egypt

    Source: Government of Italy (English)

    27 Febbraio 2025

    The President of the Council of Ministers, Giorgia Meloni, had a telephone conversation today with the President of Egypt, Abdel Fattah El-Sisi.

    The call provided an opportunity to review the main areas of bilateral cooperation, starting with the initiatives launched by Italy in the sectors of education, vocational training, renewable energy and sustainable agriculture within the framework of the Mattei Plan for Africa, as well as cooperation on the issue of migration in line with the memorandum of understanding between the EU and Egypt.

    The two leaders also discussed the situation in the Middle East, agreeing on the need to keep working for the stabilisation and reconstruction of Gaza with the aim of reviving a political dialogue for a just and lasting peace in the region

    MIL OSI Europe News

  • MIL-OSI Security: Defense News: Military Sealift Command Continues Support to Operation Deep Freeze 2025

    Source: United States Navy

    The Military Sealift Command chartered ship MV Ocean Gladiator is conducting a cargo offload of supplies at McMurdo Station, Antarctica in support of the annual resupply mission Operation Deep Freeze (ODF) 2025.

    The second of two MSC chartered ships supporting ODF 2025, Ocean Gladiator arrived at McMurdo Station on Feb. 20, where they were met by members of Navy Cargo Handling Battalion ONE and began conducting the offload. The ship is delivering 321 pieces of cargo, consisting of containers filled with mechanical parts, vehicles, construction materials including cement pilings for a pier project, food, electronics equipment and comfort items; supplies needed to sustain the next year of operations at McMurdo Station, Antarctica.

    Following the offload, Ocean Gladiator will be loaded with 149 containers of retrograde cargo for transportation off the continent. This includes trash and recyclable materials for disposal and equipment no longer required on the station, as well as the 65-ton floating Modular Causeway System, which has been used in lieu of the ice-pier for cargo operations. Before departing McMurdo station, Ocean Gladiator will be loaded with ice core samples that will be stored on the ship in a sub-zero freezer. The ice core samples will be delivered to the United States for scientific study.
    Logistics moves are nothing new for MSC, in fact, they are almost a daily occurrence. Moving cargo in the harshest environment on Earth is a mission unto itself, as Marie Morrow, MSC’s ship liaison to the Joint Support Forces Antarctica staff can attest. On her third ODF mission, she has become something of an expert on how to move cargo while moored next to an ice-pier or a movable causeway, in sub zero temperatures and with high winds that whip over a snow-covered mountain and across an island.

    Working in Antarctica wasn’t something Morrow had even considered when she came to work at MSC’s Pacific area command, MSCPAC. In fact, a job in San Diego seemed like the perfect place to be, for someone who doesn’t like the cold.

    “I thought, San Diego, Southern California, that is exactly what I’m looking for,” said Morrow. “Then I got assigned to go to Antarctica. It wasn’t something I was looking for, or had even thought about to be honest, but, I really enjoy this mission. It is an experience that I share with only a very few people.”

    Few world travelers ever get the coveted passport stamp for all seven continents. Access to Antarctica is strictly controlled. As Morrow explained, the journey to the southern most part of the planet isn’t an easy, or short commute. Morrow’s journey began in San Diego, with a flight to San Francisco, followed by an 14-hour flight to New Zealand, and then an 8-hour flight on a military C-130, sitting in a mesh cargo seat.

    On the ice, Morrow serves as part of a team consisting of representatives of numerous government agencies including the National Science Foundation, Coast Guard, Navy, Army, Coast Guard. All working together to ensure a successful mission.

    “Nothing can happen without all of us working together,” said Morrow. “It is super cooperative and interoperative.”

    Everyone who is part of the ODF mission live in barracks at McMurdo Station, or on the ships. Life is communal with shared rooms and a dining hall. Those supporting the mission get to know each other personally and, like a combat unit, create their own support structure for each other.

    “Being at McMurdo Station is like being at summer camp for adults,” laughed Morrow. “It’s a very tight-knit group of people, working and living in a challenging environment. We get very close.”

    Weather is a constant factor in Antarctica. The continent is known for its extreme environment, particularly subzero temperatures and high winds. February is summertime in the Southern Hemisphere. In this small window of just a few weeks, ODF takes place. And while it is summer, temperatures on the ice still hover around freezing during the day and below zero at night. Cargo operations can move forward, despite the temperatures, but high winds can put a pause on work for hours, with the ships’ cranes unable to move cargo in winds over 25 knots.

    “The weather is everything,” explained Morrow. “The Southern Ocean is the most unforgiving and treacherous water way on Earth. The weather can keep flights and ships from coming into port. The weather can put the offload on pause. This can mean that some of the cargo may not be offloaded. It is the National Science Foundation who has to make the decisions on how to stay inside the mission window.”

    With all the challenges and unpredictabilities of the ODF missions, those who support these operations come away with a feeling of being a part of something special and important, something outside the normal course of their job description.

    “I never thought I would get to go on a mission to Antarctica,” said Morrow. “But I love going to McMurdo Station, and I’m proud to be a part of it and to represent MSC.”

    Following operations in Antarctica, Ocean Gladiator will travel to Japan to deliver the floating modular causeway, before sailing for Port Hueneme, Calif., where they will offload cargo, completing their mission.

    Operation Deep Freeze is a joint service, on-going Defense Support to Civilian Authorities mission in support of the National Science Foundation (NSF). NSF is the lead agency for the United States Antarctic Program. Mission support consists of active duty, Guard and Reserve personnel from the U.S. Air Force, Navy, Army, and Coast Guard as well as Department of Defense civilians and attached non-DOD civilians. ODF operates from two primary locations situated at Christchurch, New Zealand and McMurdo Station, Antarctica. MSC-chartered ships have made the challenging voyage to Antarctica every year since the station and its resupply mission were established in 1955.

    MIL Security OSI

  • MIL-OSI USA: Luján, Ernst Introduce Bipartisan, Bicameral Legislation to Bolster Local Meat Processing Capacity, Support Local Producers

    US Senate News:

    Source: US Senator for New Mexico Ben Ray Luján

    Washington, D.C. – Today, U.S. Senators Ben Ray Luján (D-N.M.) and Joni Ernst (R-Iowa), members of the Senate Agriculture Committee, introduced the bipartisan, bicameral Expanding Local Meat Processing Act, legislation that would remove regulatory roadblocks to increase meat processing capacity and allow livestock auction market owners to invest in small and regional packing facilities. U.S. Representatives Mark Alford (R-Mo.), Jimmy Panetta (D-Ca.), and Dusty Johnson (R-SD) lead the companion legislation in the House.

    This legislation directs the Secretary of Agriculture to amend the Packers and Stockyards Act to allow livestock auction market owners to hold ownership in, finance, or participate in the management or operation of a meat packing entity with a cumulative slaughter capacity of less than 2,000 animals per day or 700,000 animals per year. This cap would exclude investment in the top 10 meat packers.

    Livestock auction markets, called marketing agencies selling on commission, are not currently able to own or invest, or participate in the management or operation of a packing plant or meat marketing business due to a Packers and Stockyards Act regulation. This legislation is essential in removing this unnecessary barrier in the cattle industry.

    “Lowering costs for New Mexicans and increasing competitiveness for local producers will support local economies and livelihoods – especially in our rural communities,” said Senator Luján. “I’m proud to partner with Senator Ernst to reintroduce this bipartisan legislation to remove outdated regulations that hinder producers’ ability to increase livestock processing capacity. This is a priority for New Mexico, and I will continue to advocate for it in the Farm Bill.”

    “Removing outdated regulations that hinder the livestock industry should be a no-brainer,” said Senator Ernst. “Allowing livestock auction markets to invest in small meat processing facilities will reduce market consolidation, decrease reliance on federal funding, and provide small producers with much-needed processing options. I’m proud to strengthen local food systems, increase competition, and ultimately lower meat costs for consumers through this effort.”

    “The A-PLUS Act will modernize livestock regulations to ensure government policy is consistent with our 21st Century marketplace,” said Rep. Alford. “For decades, restrictive rules have prevented smaller and local meat processors from competing for decades. By reforming these burdensome restrictions, we’re working to level the playing field, without sacrificing consumer safety. This commonsense legislation is a win for ranchers, auctions, consumers, and the entire livestock ecosystem. I’m proud to once again lead this bipartisan bill with my colleagues Congressmen Panetta and Johnson, as well as Senators Luján and Ernst.”

    “Congress and the cattle industry agree there is a need to increase the U.S. beef packing capacity and to add more competitors to the marketplace,” said Charlie Rogers Owner and General Manager of Clovis Livestock Auction. “We greatly appreciate Senator Luján introducing this bill to remove an outdated regulatory barrier and allow local livestock auction owners to be part of the solution investing in new local and regional packing capacity.”

    Full text of the legislation is available here. A one-pager of legislation is available here.

    MIL OSI USA News

  • MIL-OSI Europe: Written question – Ensuring impartiality and conflict of interest prevention in Commission-hired consultancies – E-000695/2025

    Source: European Parliament

    Question for written answer  E-000695/2025
    to the Commission
    Rule 144
    Tomáš Zdechovský (PPE)

    The Commission and its agencies increasingly award public tenders to consultancies tasked with providing independent assessments of policy areas. While participants must sign general and specific declarations of honour and submit staff CVs, this does not prevent cases where a consultancy holds a clear position on a certain policy option but leaves out counter-evidence, thus undermining the neutrality of the outcome.

    Several such instances have arisen in recent years, for example in relation to a study on EU merger decisions[1], to a study on environmental, social and governance (ESG) objectives[2] and to services to support the implementation and further development of a tobacco control policy[3].

    Given these concerns:

    • 1.How does the Commission ensure that consultants hired for external support are free from conflicts of interest and provide unbiased analysis?
    • 2.Beyond the declarations of honour and the assessment of CVs of staff members, what measures does the Commission implement to exclude consultants with vested interests at an early stage?
    • 3.Does the Commission plan to introduce additional safeguards to prevent such situations and conflicts in the future?

    Submitted: 14.2.2025

    • [1] https://globalcompetitionreview.com/article/rbb-economics-loses-eu-merger-review-contract-over-perceived-biases.
    • [2] https://reclaimfinance.org/site/en/2021/06/30/blackrocks-lobbying-machine-vs-eu-green-finance-rules/.
    • [3] https://www.euractiv.com/section/politics/news/stakeholders-bicker-over-eu-tender-on-tobacco-control-policy/.
    Last updated: 27 February 2025

    MIL OSI Europe News

  • MIL-OSI Europe: Written question – Moldovan legislature’s worrying attack on the rule of law and its impact on European aid to Moldova – P-000798/2025

    Source: European Parliament

    Priority question for written answer  P-000798/2025
    to the Commission
    Rule 144
    Auke Zijlstra (PfE)

    On 19 February 2025, the head of Moldova’s Anti-Corruption Prosecutor’s Office submitted her resignation to the Prosecutor-General. She cites as the reason for her resignation the bill proposing the abolition of the Anti-Corruption Prosecutor’s Office, which she says would weaken Moldova’s ability to hold those in power accountable for breaking the law. She voices concern at the Moldovan legislature’s undermining of the rule of law, and believes it will have serious implications for her country’s European future.

    • 1.How does the Commission view these worrying initiatives on the part of the Moldovan legislature regarding the abolition of the Anti-Corruption Prosecutor’s Office?
    • 2.What implications does this development have for the Reform and Growth Facility for Moldova and EU accession talks with the country?
    • 3.Does the Commission share the view of Mr Victor Negrescu – rapporteur for the Reform and Growth Facility for Moldova – that the reservations expressed, among others, by the Committee on Budgetary Control in the opinion on the Facility for Moldova about the need for strict control of the use of funds in Moldova are ‘unfounded’?

    Submitted: 20.2.2025

    Last updated: 27 February 2025

    MIL OSI Europe News

  • MIL-OSI Europe: Written question – Multiannual financial framework and Common Agricultural Policy – E-000680/2025

    Source: European Parliament

    Question for written answer  E-000680/2025
    to the Commission
    Rule 144
    Christine Singer (Renew), Engin Eroglu (Renew), Joachim Streit (Renew)

    The Commission is expected to present its draft multiannual financial framework (MFF) for 2028-2034 in July 2025. This budget will have to address new defence and security challenges while maintaining intensive efforts to combat climate change. It must also become ‘more focused, simpler and more impactful’. At the same time, the mission letter from Commissioner Hansen stressed the need for the existing legal framework to be much simplified. Given all of these lines of thought on legislative reform, one wonders how the Commission will ensure that all relevant stakeholders – in particular regional governments, agricultural associations, industry representatives and actors from rural areas – will remain actively involved in the design and implementation of EU funding. These groups have in-depth knowledge of regional and sectoral conditions and make a significant contribution to the successful implementation of the relevant programmes. It is of utmost importance that they are involved at an early stage and throughout the process if we wish to ensure that funding is used in a targeted, practical and needs-based manner.

    • 1.How does the Commission intend to ensure that EU funding is provided in a simpler and more targeted and effective manner without neglecting the specific needs of EU agriculture, rural areas and the food production sector?
    • 2.How does it intend to maintain a uniform legal framework for a unified and adequately funded common agricultural policy?

    Submitted: 13.2.2025

    Last updated: 27 February 2025

    MIL OSI Europe News

  • MIL-OSI Europe: Written question – Donald Trump Jr hunt in Veneto and killing of ruddy shelduck – E-000678/2025

    Source: European Parliament

    Question for written answer  E-000678/2025
    to the Commission
    Rule 144
    Dario Tamburrano (The Left)

    A number of newspapers[1] have published a video[2] of a hunt in Veneto[3] in which Donald Trump Jr, son of the US President, took part. He appears surrounded by dead birds in the video[4].

    The image quality makes it difficult to identify all the species. A ruddy shelduck appears to be recognisable in the foreground.

    Gesturing to it, Donald Trump Jr says, ‘This is actually a rather uncommon duck for the area. Not even sure what it is in English. But, er … incredible shoot.’ We therefore understand that it is rare and has been hunted (and not found dead, for example).

    A Veneto Regional Councillor said[5], ‘if [Trump Jr] acted in accordance with the rules, as seems to be the case, there is no reason for this hysteria’.

    The councillor is a member of Fratelli d’Italia, a ruling party in both Italy and the Veneto Region.

    The Minister for the Environment[6] said that perhaps a Trump Jr lookalike had shot the shelduck.

    As it stands, the Italian authorities have taken no action.

    In the light of the above:

    • 1.Does EU legislation allow for the hunting of ruddy shelducks[7]?
    • 2.If it does not allow for it, what steps will the Commission take in this case, both generally and specifically if Italy itself takes no action?

    Submitted: 13.2.2025

    • [1] For instance: https://t.ly/hMHnA.
    • [2] The video appeared on – and was subsequently deleted from – Field Ethos: https://edition.cnn.com/2025/02/05/travel/video/donald-trump-junior-accused-of-shooting-rare-duck-italy-digvid – around 00:25 et seq.
    • [3] The hunt presumably took place in late December or early January: Christmas decorations appear in one indoors scene.
    • [4] 01:38 et seq.
    • [5] https://t.ly/KOiLM
    • [6] https://t.ly/x9-Of
    • [7] The question does not concern the theoretical possibility of hunting (conceivably by way of derogation) ruddy shelducks, but their actual hunting (and in recent months), also bearing in mind that the 2024-25 hunting schedule of the Veneto Region does not provide for the hunting of ruddy shelducks by way of derogation itself – https://bur.regione.veneto.it/BurvServices/pubblica/DettaglioDgr.aspx?id=532485.
    Last updated: 27 February 2025

    MIL OSI Europe News

  • MIL-OSI Europe: Written question – Absence of a new EU heating and cooling strategy – E-000748/2025

    Source: European Parliament

    Question for written answer  E-000748/2025
    to the Commission
    Rule 144
    Yannis Maniatis (S&D)

    Bearing in mind that the most recent EU heating and cooling strategy dates back to 2016 and that solar thermal energy technology is developed and produced in the EU, providing European industry and agricultural production with cheap and green thermal energy that is not dependent on geopolitical and economic developments and allows for lower household energy bills and CO2 emissions in buildings, can the Commission answer the following:

    • 1.Does it plan to present a new heating and cooling strategy as part of its targets for reducing emissions by 90 % by 2040 and for improving energy security and reducing energy costs, finally leading to a ‘Made in Europe’ solar industry that will boost the EU’s competitiveness?
    • 2.What measures does it intend to put forward as part of the Clean Industrial Deal, so that Europe’s dynamic solar thermal energy system manufacturing industry can continue to grow despite – often unfair – international competition, avoiding the mistakes that doomed European solar panel production in the previous decade?

    Submitted: 14.2.2025

    Last updated: 27 February 2025

    MIL OSI Europe News

  • MIL-OSI Europe: Written question – Overhauling the multiannual financial framework for 2028-2034: can the Commission guarantee that common agricultural policy funding won’t be cut to finance other priorities? – E-000692/2025

    Source: European Parliament

    Question for written answer  E-000692/2025
    to the Commission
    Rule 144
    Mathilde Androuët (PfE)

    An overhaul of the multiannual financial framework for 2028-2034 was announced several months ago, and a copy has already been published[1]. Given the costly priorities set out in the document, which will eat up a lot of the budget, questions arise as to the introduction of new revenue and the uncertainty surrounding financing via new own resources. No clear political and legal agreement has yet been reached to make up for the fact that there has been no increase in Member States’ national contributions.

    The Commission is considering new taxes, such as the extension of the EU’s Emissions Trading System, the introduction of the Carbon Border Adjustment Mechanism and the establishment of a minimum tax on multinationals. Even if an agreement is reached, however, these would not be enough to cover the shortfall.

    With no new revenue, the EU will have no choice but to cut existing budgets, and this could undermine a key sector like agriculture. The common agricultural policy (CAP) is vital for France and its farming industry, which is already reeling, in particular owing to the proliferation of free trade agreements.

    With NextGenerationEU[2] debt – estimated at between EUR 25 billion and EUR 30 billion per year as of 2028 – likely to result in budget cuts, can the Commission guarantee that CAP funding will not be cut to finance other priorities?

    Submitted: 13.2.2025

    • [1] https://www.contexte.com/actualite/pouvoirs/budget-post-2027-la-commission-pose-les-premieres-pierres-dun-chantier-titanesque_218085.html
    • [2] https://commission.europa.eu/strategy-and-policy/recovery-plan-europe_en
    Last updated: 27 February 2025

    MIL OSI Europe News

  • 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: Portugal: EIB finances Galp’s Renewable Hydrogen and Biofuels projects in Sines with €430 million

    Source: European Investment Bank

    EIB

    • The two projects, already in construction at the Sines Refinery, represent a total investment of €650 million.
    • The Biofuels unit, financed with €250 million, will produce low-carbon fuels essential for the decarbonization of transport.
    • The Green Hydrogen production unit, financed with €180 million, will be one of the largest in Europe.

    The European Investment Bank (EIB) has granted a €430 million loan for the construction of two key projects aimed at transforming Galp’s Sines Refinery, making a crucial contribution for the decarbonization of heavy-duty road transport and aviation.

    Galp is developing the Biofuels unit, already at a construction stage, in partnership with Japan’s Mitsui, as part of a total €400 million investment, of which €250 million is provided by the EIB. This unit will convert vegetable oils and residual fats into sustainable aviation fuel (SAF) and renewable diesel of biological origin (HVO) with identical characteristics to the fossil-based fuels used in regular combustion engines.

    This unit, set to begin production in 2026, will have the capacity to produce up to 270,000 tons of renewable fuels, enough for Portugal to comply with the European Union mandate for this type of fuels in aviation. SAF is essential for air transportation – responsible for about 3% of global greenhouse gas emissions – to begin its decarbonization journey.

    In parallel, Galp is building in the same site a 100MW electrolyser, a €250 million investment of which the EIB will finance €180 million. It is set to produce up to 15,000 tons of green hydrogen per year when it goes online next year, becoming one of the first operational units of its size in Europe.

    “These pioneering projects are a clear example of how we can combine financing, innovation, and our environmental commitment to promote a fair and sustainable energy transition,” said Jean-Christophe Laloux, Director General, Head of EU Lending and Advisory at the EIB. “By supporting the production of advanced biofuels and green hydrogen, we are contributing to a more energy-independent Europe that aligns with global climate goals.”

    “We have mobilized partners, private investment, and European financing to drive a transformative project that brings European and national energy and industrial policies to life,” said Ronald Doesburg, Galp’s Executive Board Member responsible for the Industrial area. “More is needed from energy companies, public funding and government support if we want to maintain Portugal’s relevance in an increasingly unstable world,” he concluded.

    The two projects support the goal of climate neutrality by 2050, in line with the European Green Deal, and strengthen the EU’s energy independence as outlined in the REPowerEU plan. The projects benefit from €22,5 in Recovery and Resilience Plan incentives.

    Background information   

    About the EIB  

    The European Investment Bank (ElB) is the long-term lending institution of the European Union, owned by its Member States. Built around eight core priorities, we finance investments that contribute to EU policy objectives by bolstering climate action and the environment, digitalisation and technological innovation, security and defence, cohesion, agriculture and bioeconomy, social infrastructure, the capital markets union, and a stronger Europe in a more peaceful and prosperous world. 

    The EIB Group, which also includes the European Investment Fund (EIF), signed nearly €89 billion in new financing for over 900 high-impact projects in 2024, boosting Europe’s competitiveness and security.   

    All projects financed by the EIB Group are in line with the Paris Climate Agreement, as pledged in our Climate Bank Roadmap. Almost 60% of the EIB Group’s annual financing supports projects directly contributing to climate change mitigation, adaptation, and a healthier environment.   

    Fostering market integration and mobilising investment, the Group supported a record of over €100 billion in new investment for Europe’s energy security in 2024 and mobilised €110 billion in growth capital for startups, scale-ups and European pioneers. Approximately half of the EIB’s financing within the European Union is directed towards cohesion regions, where per capita income is lower than the EU average. 

    High-quality, up-to-date photos of our headquarters for media use are available here.

    About Galp

    Galp is an energy company committed to developing efficient and sustainable solutions in its operations and the integrated offerings it provides to its customers. We create simple, flexible, and competitive solutions for energy or mobility needs, catering to large industries, small and medium-sized enterprises, as well as individual consumers.

    Our portfolio includes various forms of energy – from electricity generated from renewable sources to natural gas and liquid fuels, including low-carbon options. As a producer, we engage in the extraction of oil and natural gas from reservoirs located kilometers below the ocean surface, and we are also one of the leading solar-based electricity producers in the Iberian region.

    We contribute to the economic development of the 10 countries where we operate and to the social progress of the communities that welcome us. Galp employs more than 7,000 people from 52 nationalities.

    MIL OSI Europe News

  • MIL-OSI Europe: Answer to a written question – Economic impact assessment of an EU-Mercosur trade agreement on the European and Irish beef sector – P-002325/2024(ASW)

    Source: European Parliament

    The Commission requested a Sustainability Impact Assessment (SIA)[1], an independent report published on 29 March 2021 that analyses in detail the economic, social, environmental and human rights impacts of the agreement with the Mercosur.

    According to the report, the agreement will have a positive impact on the economies of both the EU and the Mercosur countries, raising wages and contributing to a reduction in inequalities. At the same time, the impact on sensitive agri-food sectors in the EU would be limited.

    Moreover, the Commission has recently carried out an assessment on the cumulative impact of upcoming trade agreements[2], which produces results consistent with the Mercosur SIA.

    It projects a reduction of EU beef production and price of 0.9% and 2.4% respectively due to the implementation of the ten free trade agreements covered by the study. These two studies deliver results at EU level.

    On the other hand, the Irish government requested an independent Economic and Sustainability Impact Assessment for Ireland of the EU-Mercosur Trade agreement, which includes the assessment of an impact of the agreement on Irish beef producers[3].

    That study finds that small additional beef quantities are expected to come from the Mercosur due to the agreement, but the amount will be limited and is manageable. For the Irish beef sector, an upper end estimate of the impact on production is a 0.08% reduction in output.

    • [1] https://policy.trade.ec.europa.eu/analysis-and-assessment/sustainability-impact-assessments_en
    • [2] https://publications.jrc.ec.europa.eu/repository/handle/JRC135540
    • [3] https://www.gov.ie/en/publication/1c8a6-economic-and-sustainability-impact-assessment-for-ireland-of-the-eu-mercosur-trade-agreement/
    Last updated: 27 February 2025

    MIL OSI Europe News

  • MIL-OSI Europe: Cyprus gets €72 million EIB loan for new national archaeological museum as EU bank publishes 2024 financing results in country

    Source: European Investment Bank

    • EIB provides €72 million loan to Cypriot government to build state-of-the-art archaeological museum in capital Nicosia
    • Credit for landmark Cypriot cultural project follows 2024 EIB Group financing in Cyprus totalling €225 million mainly for university-campus and road-network upgrades.
    • Latest annual results bring EIB Group support in Cyprus to €1.3 billion over past five years.

    The European Investment Bank (EIB) is providing the Cypriot government with a €72 million loan for a new national archaeological museum in the capital Nicosia. The EIB credit will be used to build the planned state-of-the-art Cyprus Archaeological Museum, which will serve as a cultural landmark while contributing to urban regeneration.

    The EIB Group, which also includes the European Investment Fund (EIF), today also announced that new financing in Cyprus in 2024 totalled €225 million. Top projects last year included EIB loans of €125 million for the Cyprus University of Technology (CUT) to build affordable student housing and upgrade campus facilities in Paphos and Limassol and €100 million for the Cypriot government to improve and expand road networks.

    “Our work in Cyprus is a testament to the transformative power of the EIB’s strategic financing,” said EIB Vice-President Kyriakos Kakouris. “In 2024, we reaffirmed our commitment to the country by supporting major projects in sustainable and affordable student housing as well as critical transport- infrastructure improvements, reinforcing social cohesion in the process.”

    Cultural landmark

    The planned Cyprus Archaeological Museum, whose construction is due to be completed in 2029 .will be located in the centre of Nicosia  and transform the area into a vibrant cultural hub. The museum will feature spacious exhibition halls equipped with cutting-edge technologies to enhance the presentation of Cyprus’s rich archaeological heritage, which dates to the Neolithic  period  and  extends to the Christian era.

    “The new museum will offer dedicated spaces for research, education and engagement with the scientific and cultural community, further strengthening Cyprus’s role in the global archaeological and cultural dialogue,” said EIB Vice-President Kyriacos Kakouris.

    It will house an extensive collection from Department of Antiquities of the Cypriot Culture Ministry’s

    “The Cyprus Archaeological Museum will stand as the country’s most significant cultural initiative,” said Cypriot Minister of Finance Makis Keravnos. “This is a crucial project for the Cypriot government and the people as it will revitalise and showcase – in the most fitting way – our country’s rich and diverse history. It will also create a dynamic cultural, recreational, and social hub in the heart of the city.”

    The new project includes a state-of-the-art 30,000 sqm museum and a 20,000 sqm landscaped public square, transforming the Nicosia area into a vibrant cultural hub.

    “For many years, it has been the state’s vision to establish a museum capable of housing, with the dignity they deserve, the memories of our archaeological past,” said Cypriot Minister of Transport, Communications and Works Alexis Vafeades. “This museum will become a place of attraction for people of all ages and nationalities, fostering inclusivity and sharing Cyprus’s rich archaeological history with the world.”

    2024 results

    The latest annual results from the EIB Group bring its total financing in Cyprus over the past five years to €1.3 billion. The annual average in the country since 2000 is €256 million.

    The EIB’s support for CUT last year included two financing agreements with the university totalling €108 million and one accord with the Municipality of Paphos amounting to €17 million. The project features the construction and renovation of academic and administrative spaces, along with the addition of 703 student accommodation units.

    In Limassol, the planned upgrades include the creation of a solar energy park to power the campus, making it energy self-sufficient.

    Part of the financing is supported by the InvestEU programme, marking its first initiative in Cyprus.

    The EIB’s support for Cypriot road development in 2024 was part of a €200 million package for such infrastructure in the country, with a second €100 million tranche expected to be signed in 2025. The projects, which involve road upgrades in various Cypriot regions, are expected to be completed by 2029.

    Background information  

    EIB 

    The European Investment Bank (ElB) is the long-term lending institution of the European Union, owned by its Member States. Built around eight core priorities, we finance investments that contribute to EU policy objectives by bolstering climate action and the environment, digitalisation and technological innovation, security and defence, cohesion, agriculture and bioeconomy, social infrastructure, high-impact investments outside the European Union, and the capital markets union.  

    The EIB Group, which also includes the European Investment Fund (EIF), signed nearly €89 billion in new financing for over 900 high-impact projects in 2024, boosting Europe’s competitiveness and security.  

    All projects financed by the EIB Group are in line with the Paris Climate Agreement, as pledged in our Climate Bank Roadmap. Almost 60% of the EIB Group’s annual financing supports projects directly contributing to climate change mitigation, adaptation, and a healthier environment.  

    Fostering market integration and mobilising investment, the Group supported a record of over €100 billion in new investment for Europe’s energy security in 2024 and mobilised €110 billion in growth capital for startups, scale-ups and European pioneers. Approximately half of the EIB’s financing within the European Union is directed towards cohesion regions, where per capita income is lower than the EU average.

    High-quality, up-to-date photos of our headquarters for media use are available here.

    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: HKSAR Government strongly condemned and opposed the slanders and smears on Hong Kong by the so-called resolution introduced by US politicians

    Source: Hong Kong Government special administrative region

    HKSAR Government strongly condemned and opposed the slanders and smears on Hong Kong by the so-called resolution introduced by US politicians
    HKSAR Government strongly condemned and opposed the slanders and smears on Hong Kong by the so-called resolution introduced by US politicians
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         ​The Hong Kong Special Administrative Region (HKSAR) Government today (February 27) strongly condemned individual members of the United States (US) House Committee on Foreign Affairs, through introducing a so-called resolution against Hong Kong, for making baseless allegations against Hong Kong and smearing the Hong Kong National Security Law (HKNSL) and the Safeguarding National Security Ordinance (SNSO). The HKSAR Government strongly condemned and opposed such despicable political maneuvering and reckless clamoring, and urged the US to stop undermining Hong Kong’s international reputation, and immediately stop interfering in Hong Kong matters, which are purely China’s internal affairs.           A spokesman for the HKSAR Government said, “The US politicians have repeated their tactics and breached the international law and the basic norms underpinning international relations, and wantonly interfering with Hong Kong matters by passing the so-called resolution, which is a despicable political manipulation. The US politicians have time and again made skewed remarks about Hong Kong’s situation and advocated to impose the so-called ‘sanctions’ on Hong Kong pursuant to its domestic law, attempting to interfere with Hong Kong’s law-based governance and undermine the city’s rule of law as well as its prosperity and stability. The HKSAR Government strongly condemned its political grandstanding rife with ill intentions, which have been seen through by all.”           The spokesman said, “National security is the foundation for prosperity and stability in society, as well as the well-being of the people. Only with security could there be development. While the ‘black-clad violence’ and the Hong Kong version of ‘colour revolution’ back in 2019 have severely damaged the social stability of Hong Kong. With the promulgation and implementation of the HKNSL, its effect in stopping violence and curbing disorder as well as quickly restoring social stability in the Hong Kong community was immediate. With the concerted efforts of the HKSAR Government, the Legislative Council and all sectors of the community, the HKSAR fulfilled its constitutional duty by enacting the SNSO last year to improve the legal system and enforcement mechanisms for safeguarding national security, enabling Hong Kong’s transition from chaos to order and its advancement from stability to prosperity.”           “In fact, the implementation of the HKNSL in the past four years or so has enabled the livelihood and economic activities of the Hong Kong community at large to swiftly resume to normal and the business environment to be restored and improved continuously. In the Economic Freedom of the World 2024 Annual Report, Hong Kong ranks as the world’s freest economies among 165 economies. In the World Competitiveness Yearbook 2024, Hong Kong’s ranking improved by two places to fifth globally. Last year, Hong Kong ranked among the top three international financial centres and the top four initial public offering markets in the world. It is evident that international funds and investments are confident in Hong Kong’s development.”           The spokesman pointed out, “In accordance with international law and international practice based on the Charter of the United Nations, it is each and every sovereign state’s inherent right to enact laws safeguarding national security, and it is also an international practice. With at least 21 pieces of laws safeguarding national security, the US politicians have displayed hypocrisy and exposed their double standards by pointing fingers at the HKSAR’s legal system and enforcement mechanism to safeguard national security.”           The spokesman emphasised, “The legal framework for safeguarding national security in the HKSAR is fully in compliance with the international standard for the protection of human rights. The HKNSL and the SNSO clearly stipulate that human rights shall be respected and protected in safeguarding national security. The rights and freedoms enjoyed by Hong Kong people under the Basic Law and the provisions of the International Covenant on Civil and Political Rights and the International Covenant on Economic, Social and Cultural Rights as applicable to the HKSAR are protected in accordance with the law. By wantonly neglecting the relevant provisions and lashing out, the US politicians have fully exposing its malicious intentions.”           “The offences endangering national security stipulated by HKNSL and SNSO target acts endangering national security with precision, and define the elements and penalties of the offences with clarity. The HKSAR law enforcement agencies have been taking law enforcement actions based on evidence and strictly in accordance with the law in respect of the acts of the persons or entities concerned, which have nothing to do with their political stance, background or occupation. Any suggestion that certain individuals or organisations should be immune from legal consequences for their illegal acts is no different from advocating a special privilege to break the law, and this totally runs contrary to the spirit of the rule of law.”           The spokesman also reiterated, “All cases are handled strictly on the basis of evidence and in accordance with the law. All defendants will receive fair trial strictly in accordance with laws applicable to Hong Kong (including the HKNSL) and as protected by the Basic Law and the Hong Kong Bill of Rights. As the legal proceedings involving Lai Chee-ying are still ongoing, it is inappropriate for any person to comment on the details of the case.”           “The HKSAR Government will, as always, resolutely, fully and faithfully implement the HKNSL, the SNSO and other relevant laws safeguarding national security in the HKSAR, to effectively prevent, suppress and impose punishment for acts and activities endangering national security in accordance with the law. At the same time, it protects the rights and freedoms enjoyed by Hong Kong residents in accordance with the law, ensuring the steadfast and successful implementation of ‘one country, two systems’.”

     
    Ends/Thursday, February 27, 2025Issued at HKT 23:40

    NNNN

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  • MIL-OSI Asia-Pac: Government launches Aadhaar Good Governance portal to streamline approval process for Aadhaar authentication requests

    Source: Government of India

    Government launches Aadhaar Good Governance portal to streamline approval process for Aadhaar authentication requests

    New Aadhaar Governance Portal to Enhance Ease of Living, Make Services More People-Friendly, and Improve Citizen-Centric Access to Services

    New Rule Enables Seamless Aadhaar Authentication for Public Interest Services by Both Government and Private Entities

    Posted On: 27 FEB 2025 8:33PM by PIB Delhi

    The Ministry of Electronics and Information Technology (MeitY) today launched Aadhaar Good Governance portal to streamline approval process for Aadhaar authentication requests. This is in sync with an effort to make Aadhaar more people-friendly, enable ease of living, and enable better access to services for people.

    The Aadhaar Good Governance portal was launched by Shri S. Krishnan, Secretary, MeitY in the presence of Shri Bhuvnesh Kumar, CEO UIDAI, Shri Inder Pal Singh Sethi Director General of NIC, Shri Manish Bhardwaj, DDG UIDAI,  Shri Amod Kumar, DDG UIDAI and other senior officials from MeitY, UIDAI and NIC.

    Enhance Ease of Living and Service Accessibility

    The online platform (http://swik.meity.gov.in) comes into effect, after Aadhaar Authentication for Good Governance (Social Welfare, Innovation, Knowledge) Amendment Rules, 2025 under the Aadhaar (Targeted Delivery of Financial and Other Subsidies, Benefits and Services) Act, 2016 was notified in late January 2025. This amendment has been done to help improve transparency and inclusivity in the decision-making process.

    Aadhaar is considered as the most trusted digital ID in the world. In the past decade, more than a billion Indians have expressed their trust in Aadhaar by using it to authenticate themselves over 100 billion times. Expansion of the scope of Aadhaar authentication, as envisaged in the amendment, will further improve ease of living and facilitate hassle-free access to newer services of their choice.

    Shri Krishnan, Secretary, MeitY  highlighted that with the launch of this platform and continuous improvement of other processes and systems around it, we hope to expedite the process of adding more use cases in the domain of good governance and ease of living.

    Shri Bhuvnesh Kumar, CEO UIDAI underlined how Aadhaar is facilitating the growth of India’s digital economy. He said Aadhaar is an enabler of good governance, and resident centricity is the focus of UIDAI. The Aadhaar good governance portal has been developed to facilitate ease of submission and approval proposals by entities in accordance with the prescribed rules.

    Seamless Authentication for Public Interest Services

    The amendment enables both government and non-government entities to avail Aadhaar authentication service for providing various services in the public interest for related specific purposes like enablement of innovation, spread of knowledge, promoting ease of living of residents and enabling better access to services for them. This will help both the service providers as well as the service seekers to have trusted transactions.

    The fresh amendment enables Aadhaar number holders to avail hassle free services from several sectors including hospitality, healthcare, credit rating bureau, e-commerce players, educational institutions and aggregator service providers. Service providers too will find it helpful for a range of things including staff attendance, customer onboarding, e-KYC verification, exam registrations etc.

     

    Portal to Offer Step-by-Step Guide for Authentication Requests

    The portal shall work as a resource rich guide, and offer detailed SOP for authentication seeking entities on how to apply and how to onboard for Aadhaar authentication.

    Face Authentication may also be integrated in the customer facing apps of private entities, which will enable anytime anywhere, authentication.

    As part of its commitment to make Aadhaar people-friendly and enable ease of living and better access to services for citizens, the Ministry had proposed rules to enable Aadhaar authentication by entities other than Government Ministries and Departments. The proposed amendments were posted on the Ministry website and comments were invited from the stakeholders and the general public during April and May 2023.

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  • MIL-OSI Asia-Pac: Dubai ETO greets Year of Snake with gala dinners in Riyadh and Dubai (with photos)

    Source: Hong Kong Government special administrative region

         The Hong Kong Economic and Trade Office in Dubai (Dubai ETO), in collaboration with the Hong Kong Trade Development Council (HKTDC), hosted gala dinners in Riyadh, Saudi Arabia on February 24 (Riyadh time) and in Dubai, the United Arab Emirates (UAE) on February 25 (Dubai time) to celebrate the Year of Snake with Saudi and UAE communities, and promote Hong Kong as well as its unique advantages and culture to locals from various sectors.
          
         A total of over 450 guests from the government, business and cultural sectors as well as the local Hong Kong community attended the two gala dinners. Among them were the Minister of State for Foreign Trade of the UAE, Dr Thani bin Ahmed Al Zeyoudi, the Consul-General of the People’s Republic of China in Dubai, Ms Ou Boqian, and the Chairman of the Saudi Chinese Business Council, Mr Mohammed Al Ajlan.
          
         In his welcoming remarks to the guests, the Director-General of the Dubai ETO, Mr Damian Lee, highlighted the closer-than-ever relations and booming exchanges between Hong Kong and the Middle East region, marked by robust and active trade and economic co-operation as well as deepening collaboration in tourism, culture, education and many areas, since the establishment of the Dubai ETO more than three years ago and successive visits to Gulf countries by the Chief Executive and various Principal Officials.
          
         Mr Lee also shared with guests how Hong Kong’s distinctive advantages of having strong support of the country while maintaining unparalleled connectivity with the world render the city her role as a bridge linking the Mainland China and the rest of the world. He encouraged local business operators to make good use of Hong Kong’s measures dovetailing with national development strategies to expand their business in Hong Kong.
          
         “Like the virtuous snake in the Chinese zodiac, Hong Kong demonstrated her wisdom, flexibility and resilience amidst global uncertainties: in 2024, Hong Kong remained the world’s freest economy and the third-largest global financial centre with a record number of 10 000 non-local firms, a 10 per cent increase on the previous year and a testament to the abundant confidence of people from around the world. Hong Kong also launched the New Capital Investment Entrant Scheme last year, further enhancing our attractiveness to foreign capital and talents. In the Year of Snake ahead, Hong Kong and the Middle East will definitely build upon the strong foundation of our relationship for further collaborations.”
          
         The Dubai ETO also invited Legislative Council Member and Associate Vice-President of Lingnan University, Professor Lau Chi-pang, to deliver a keynote presentation, on Hong Kong’s rich intangible cultural heritage, as guests marvelled at the diversity, openness and the unique mix of Eastern and Western cultures of Hong Kong. During the dinners, representatives from Invest Hong Kong and HKTDC also shared respectively Hong Kong’s promising investment opportunities and the upcoming trade fairs and activities in Hong Kong, and encouraged local businesses to invest and join fairs in Hong Kong.
          
         The events also featured cultural performances, including the ancient Chinese theatrical art form from Sichuan opera – face-changing, as well as fascinating and interactive magic shows with Hong Kong elements by Louis Yan, an internationally renowned champion magician from Hong Kong who has won the Merlin Award, also known as the “Oscars” among professional magicians. The performances received enthusiastic applause from the audience who were deeply impressed by the beauty of the traditional Chinese culture and the authentic local culture of Hong Kong.                                       

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  • MIL-OSI Asia-Pac: PM chairs a High-Level Meeting to review Ayush sector

    Source: Government of India (2)

    PM chairs a High-Level Meeting to review Ayush sector

    PM undertakes comprehensive review of the Ayush sector and emphasizes the need for strategic interventions to harness its full potential

    PM discusses increasing acceptance of Ayush worldwide and its potential to drive sustainable development

    PM reiterates government’s commitment to strengthen the Ayush sector through policy support, research, and innovation

    PM emphasises the need to promote holistic and integrated health and standard protocols on Yoga, Naturopathy and Pharmacy Sector

    Posted On: 27 FEB 2025 8:14PM by PIB Delhi

    Prime Minister Shri Narendra Modi chaired a high-level meeting at 7 Lok Kalyan Marg to review the Ayush sector, underscoring its vital role in holistic wellbeing and healthcare, preserving traditional knowledge, and contributing to the nation’s wellness ecosystem.

    Since the creation of the Ministry of Ayush in 2014, Prime Minister has envisioned a clear roadmap for its growth, recognizing its vast potential. In a comprehensive review of the sector’s progress, the Prime Minister emphasized the need for strategic interventions to harness its full potential. The review focused on streamlining initiatives, optimizing resources, and charting a visionary path to elevate Ayush’s global presence.

    During the review, the Prime Minister emphasized the sector’s significant contributions, including its role in promoting preventive healthcare, boosting rural economies through medicinal plant cultivation, and enhancing India’s global standing as a leader in traditional medicine. He highlighted the sector’s resilience and growth, noting its increasing acceptance worldwide and its potential to drive sustainable development and employment generation.

    Prime Minister reiterated that the government is committed to strengthening the Ayush sector through policy support, research, and innovation. He also emphasised the need to promote holistic and integrated health and standard protocols on Yoga, Naturopathy and Pharmacy Sector.

    Prime Minister emphasized that transparency must remain the bedrock of all operations within the Government across sectors. He directed all stakeholders to uphold the highest standards of integrity, ensuring that their work is guided solely by the rule of law and for the public good.

    The Ayush sector has rapidly evolved into a driving force in India’s healthcare landscape, achieving significant milestones in education, research, public health, international collaboration, trade, digitalization, and global expansion. Through the efforts of the government, the sector has witnessed several key achievements, about which the Prime Minister was briefed during the meeting.

    • Ayush sector demonstrated exponential economic growth, with the manufacturing market size surging from USD 2.85 billion in 2014 to USD 23 billion in 2023.

    •India has established itself as a global leader in evidence-based traditional medicine, with the Ayush Research Portal now hosting over 43,000 studies. 

    • Research publications in the last 10 years exceed the publications of the previous 60 years.

    • Ayush Visa to further boost medical tourism, attracting international patients seeking holistic healthcare solutions.

    • The Ayush sector has witnessed significant breakthroughs through collaborations with premier institutions at national and international levels.

    • The strengthening of infrastructure and a renewed focus on the integration of artificial intelligence under Ayush Grid.

    • Digital technologies to be leveraged for promotion of Yoga.

    • iGot platform to host more holistic Y-Break Yoga like content

    • Establishing the WHO Global Traditional Medicine Centre in Jamnagar, Gujarat is a landmark achievement, reinforcing India’s leadership in traditional medicine. 

    • Inclusion of traditional medicine in the World Health Organization’s International Classification of Diseases (ICD)-11.

    • National Ayush Mission has been pivotal in expanding the sector’s infrastructure and accessibility.

    •  More than 24.52 Cr people participated in 2024, International Day of Yoga (IDY) which has now become a global phenomenon.

    • 10th Year of International Day of Yoga (IDY) 2025 to be a significant milestone with more participation of people across the globe.

    The meeting was attended by Union Health Minister Shri Jagat Prakash Nadda, Minister of State (IC), Ministry of Ayush and Minister of State, Ministry of Health & Family Welfare, Shri Prataprao Jadhav, Principal Secretary to PM Dr. P. K. Mishra, Principal Secretary-2 to PM Shri Shaktikanta Das, Advisor to PM Shri Amit Khare and senior officials.

     

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  • MIL-OSI Asia-Pac: Union Home Minister and Minister of Cooperation Shri Amit Shah addresses the Remembrance Day ceremony on 15th death anniversary of Bharat Ratna Nanaji Deshmukh in Chitrakoot, Madhya Pradesh

    Source: Government of India

    Union Home Minister and Minister of Cooperation Shri Amit Shah addresses the Remembrance Day ceremony on 15th death anniversary of Bharat Ratna Nanaji Deshmukh in Chitrakoot, Madhya Pradesh

    Nanaji, through his hard work, has established principles in politics that will remain role models for generations to come

    Through rural development, Nanaji Deshmukh implemented Pandit Deendayal’s principle of ‘Antyodaya’ on the ground

    Nanaji’s efforts were instrumental in changing the socio-economic landscape of the country’s villages

    Prime Minister Modi, who considers the “Antyodaya politics” of Nanaji and Pandit Deendayal as an ideal, is today bringing about a change in the lives of millions of poor people

    The unique combination of Sangh’s sanskars, Bal Gangadhar’s nationalism and Gandhiji’s Gram Swaraj is seen in Nanaji Deshmukh’s personality

    Nanaji established the Saraswati Shishu Mandir, today thousands of these schools across the country are imparting education and values to children

    Posted On: 27 FEB 2025 7:45PM by PIB Delhi

    The Union Home Minister and Minister of Cooperation Shri Amit Shah addressed the Remembrance Day ceremony on 15th death anniversary of Bharat Ratna, Nanaji Deshmukh in Chitrakoot Madhya Pradesh today. On this occasion, several dignitaries, including the Chief Minister of Madhya Pradesh, Dr. Mohan Yadav, and the Deputy Chief Minister, Shri Rajendra Shukla, were present.

    In his address, Shri Amit Shah said that on the occasion of Nanaji Deshmukh’s death anniversary, a tribute program was organized along with the inauguration of the statue of Pandit Deendayal Upadhyaya and the presentation based on the life of Lord Ram, “Ram Darshan.” He said that Nanaji Deshmukh is among those individuals whose life leaves an impact not for just a few years, but for centuries, and such people work towards making the era transformative.

    Shri Shah said that Nanaji, who was born in Maharashtra, was associated with the Rashtriya Swayamsevak Sangh (RSS) from his childhood. He became a pracharak of the RSS, made Uttar Pradesh his area of work, became the General Secretary of the Bharatiya Jana Sangh, and, along with Pandit Deendayal, traveled to every block and region in Uttar Pradesh to lay the foundation of the Jana Sangh. Nanaji got the privilege of being a centenarian by dedicating every moment of his life and every particle of his body to Mother India. He said that it is very difficult to go from the world as Ajatashatru while being in politics, but till today neither the ruling party nor any leader of the opposition heard anything wrong about Nanaji.

    The Union Home Minister said that it is very difficult to gain universal acceptance while being in politics, as one often has to face opposition for political purposes. However, in his long life, no one had the courage to oppose Nanaji, nor did anyone consider it appropriate to oppose him. He said that Nanaji made connections in almost every field, including art, literature, industry, service, and politics, and earned acceptance and respect in each of those fields. Achieving so much in one lifetime is quite difficult. He said that through rural development, Nanaji Deshmukh implemented Pandit Deendayal’s principle of ‘Antyodaya’ on the ground.

    Shri Amit Shah said that when Nanaji was just 60 years old, he decided to leave politics and pursue Ekatm Manavvaad (‘Integral Humanism’) for the rest of his life. He was also like a lotus in politics, kept himself aloof from every evil and spent his entire life removing evils. Nanaji, through his hard work, has established principles in politics that will remain role models for generations to come. He said Nanaji’s efforts were instrumental in changing the socio-economic landscape of the country’s villages.

    The Union Home Minister said that the Bharatiya Jana Sangh gave two great men to the country’s politics in the same period in the form of Nanaji Deshmukh and Pandit Deen Dayal Upadhyaya. Both were born in 1916. He said that after the country’s independence, when policies were being made, people were watching the country’s policies with concern. In policies related to foreign affairs, economy, agriculture, and education, there was no fragrance of our ancient nation’s soil. At that time, the government was satisfied with creating policies by merely translating principles borrowed from the West. During that time, Pandit Deendayal established the principle of ‘Integral Humanism,’ showing how our economic philosophy should be, what our foreign policy should look like, and how our perspective on the world should be based on global brotherhood. He said that this very principle is now leading us toward becoming the best in the world.

    Shri Amit Shah said that Pandit Deendayal named India’s development model as ‘Antyodaya,’ meaning that until the last person in the line is developed, it holds no meaning. He said that the development of the last person should be a reflection of the nation’s development. He said that Prime Minister Modi, who considers the “Antyodaya politics” of Nanaji and Pandit Deendayal as an ideal, is today bringing about a change in the lives of millions of poor people. Shri Shah further said that development should take place while preserving our heritage.

    Union Home Minister Shri Amit Shah stated that under the leadership of Prime Minister Shri Narendra Modi, the government has significantly improved the lives of 60 crore poor citizens over the past decade. He highlighted key welfare initiatives, including housing, sanitation, clean drinking water, gas connections, free grain distribution, electricity access, and health coverage of up to ₹5 lakh. He emphasized that these efforts align with Nanaji Deshmukh’s vision for rural development, working towards transforming villages into self-sustaining Gokul Grams.

    Reflecting on Nanaji Deshmukh’s contributions, Shri Amit Shah described him as an exceptional organizer who played a crucial role in resisting the Emergency, when democracy and personal freedoms were under threat. He noted that despite a scattered opposition, public awareness was awakened, leading to a 19-month-long struggle that resulted in the defeat of the ruling government and the triumph of democracy. Nanaji was instrumental in the formation of the Janata Party and laid the foundation of the current ruling party by championing the principle of Nation First.

    Shri Amit Shah further stated that Nanaji’s life was deeply rooted in the ideals of the Sangh. He said that the unique combination of Sangh’s sanskars, Bal Gangadhar’s nationalism and Gandhiji’s Gram Swaraj is seen in Nanaji Deshmukh’s personality.

    Recognizing his lifelong service, he was awarded with the Padma Vibhushan. Prime Minister Shri Narendra Modi later honored him with the Bharat Ratna, acknowledging his transformative contributions to society. Shri Shah remarked that Nanaji was among those rare individuals whose legacy elevates the honors bestowed upon them.

    He also highlighted Nanaji’s role in education, particularly in establishing the first Saraswati Shishu Mandir in Gorakhpur, today thousand of these schools across the country are imparting education and values to children. Nanaji remained committed to cultural nationalism throughout his life.

    Speaking about Pandit Deendayal Upadhyaya, Shri Amit Shah noted his pivotal role in foundation of the Bharatiya Jana Sangh. He credited Pandit Deendayal with shaping the ideological foundation of the party and developing Ekatm Manavvaad (Integral Humanism), a philosophy that encompasses the holistic development of individuals, society, and the nation.

    Shri Amit Shah highlighted Chitrakoot’s spiritual significance, recalling that it was where Lord Shri Ram spent a significant portion of his exile. He reiterated Chitrakoot’s deep connection to devotion and Indian cultural heritage.

    *****

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  • MIL-Evening Report: Oscars 2025: who will likely win, who should win, and who barely deserves to be there

    Source: The Conversation (Au and NZ) – By Ari Mattes, Lecturer in Communications and Media, University of Notre Dame Australia

    We’ve probably all had a moment when we stopped taking the Oscars too seriously. For me, it was when Denzel Washington won best actor for Training Day (2001), a crime film in which he displays virtually none of his acting chops.

    And as popular cinema becomes uglier (it’s mostly shot on digital video now, which almost never looks as good as film) and streamers (or logistics companies such as Amazon) take over film production, it’s becoming increasingly difficult to appreciate the point of the ceremony.

    From this year’s ten nominees for best picture, The Brutalist, Conclave and I’m Still Here are good – while (most of) the other nominees are only okay.

    Some well-made films, but nothing outstanding

    Writer-director Sean Baker’s Anora is nominated for best picture this year, after already winning the Palme d’Or. It’s a moderately sweet film in the tradition of Pretty Woman – having more nudity and sex, and a disappointing ending, doesn’t automatically make it edgier. It’s too long by at least half an hour, with some okay performances.

    It’s certainly not bad, but the idea that this is one of the “best pictures” of 2024 is alarming – or would be, if I wasn’t already so cynical. Most importantly, there’s nothing formally or aesthetically compelling about it, in which case I might have forgiven the silly (anti) Cinderella story.

    Another nominee, A Complete Unknown, is similarly well-made. Timothée Chalamet gives a predictably moody performance as Bob Dylan, and it’s fun to learn something about the relationships between Dylan and musical legends Joan Baez and Pete Seeger.

    But there’s also something fundamentally weird about watching a memoir about a person as iconic as Dylan. It veers too often into the terrain of impersonation, and this is even more off-putting given Dylan is still alive. Throw in Chalamet’s (certainly accomplished) singing of Dylan’s songs, and it feels like we’re watching someone do karaoke really well.

    The Substance tries to shock and titillate the viewer with its caricature of celebrity in an era of body modification and mega-media corporations. Demi Moore, Margaret Qualley and Dennis Quaid try hard to be funny, but the whole thing plays like an undergraduate essay that makes the same point ad nauseam. Though the actors surely had fun, there’s nothing compelling about their guffawing.

    This is also the problem with messy hybrid musical-thriller Emilia Pérez, the other over-the-top genre film tipped by some to win the award.

    The film, following a cartel leader who disappears and transitions into a woman, is overly dependent on making a point about the world outside of itself. This point is so obvious that it rapidly becomes tedious, with insufficient attention given to the formal and narrative tensions and ambiguities that compel an audience to engage with a film on a serious, visceral level.

    Dune: Part Two sounds and looks good, but is more meandering than Part One in developing Herbert’s unwieldy epic. If you liked Part One, you’ll probably like Part Two, but it’s not exactly cutting-edge material.

    Nickel Boys is a low-key, sentimental rendition of Colson Whitehead’s novel about two African American boys sent to a reform school in Florida in the early 1960s, and their coming of age as they survive myriad abuses. It’s watchable, if not particularly memorable.

    Finally, Wicked is, well … Wicked. If you like the musical you may like the film (although the live aspect of musicals makes this one play better on the stage than on the screen, unlike The Wizard of Oz, which was made for the screen). In any case, it’s not ridiculously bad, even though it is too long.

    A few top contenders

    Walter Salles’ I’m Still Here – which traces the struggle of an activist in Brazil after the forced disappearance of her husband in 1970 – works well in its evocation of place and time, and should soften the heart of even the most cynical viewer.

    Based on Marcelo Rubens Paiva’s 2015 memoir, the entire film is washed over with a faint scent of nostalgia that complements the idea of failing to find, and then remembering, that which is missing.

    Conclave, adapted from Robert Harris’ novel, is another solidly made affair. It follows the political machinations of the Vatican as the Dean of Cardinals sets up a conclave to elect a new pope after the previous one dies of a heart attack.

    Ralph Fiennes is as effective and sombre as usual in the lead role as Cardinal Lawrence and various twists and turns keep us watching throughout. But one suspects the primary pleasure of the film is that it seems to offer an insider’s view of the Vatican, including all the fetishistic processes and rituals.

    Despite its serious tone, Conclave is a fun romp. And what a pleasure it is to watch Isabella Rossellini on the big screen once again.

    The strongest nominee

    The film that is most classically like a best picture nominee is The Brutalist – an epic, visually-magnificent study of the struggles of (fictional) architect László Toth, a Hungarian Jew who moves to America following the Holocaust.

    Testament to the technical accomplishments of the film, and its superb creation of a coherent world, The Brutalist runs close to four hours (thankfully with an intermission) without becoming tedious. It chugs along with the relentless momentum of a steam engine.

    Adrien Brody is charming as Toth, endowing the character with a roguish and playful quality, and the supporting cast are solid. Akin to one of Toth’s constructions (as we hear in the epilogue section), the film neither indicates nor tells us anything beyond itself.

    There may be conclusions to be drawn regarding the relationship between art, power and capitalism, but the film gives you the space to devise these yourself. The film is, in a sense, beautifully mute.

    Out of all the nominations, The Brutalist is the only one that feels like a genuine best picture contender (with something of the grandeur of classical Hollywood cinema about it). Although many critics are predicting Anora will win, The Brutalist is the strongest of the nominees.

    That said, my pick for the best film of 2024 goes to a production that didn’t get a best picture nomination (as usual). Magnus von Horn’s The Girl With the Needle is a stunning Danish expressionistic nightmare that seamlessly integrates formal experimentation with a thrilling and horrific true crime narrative.

    It is absolutely sensational – the kind of thing you never forget. Thankfully, it has been recognised through its nomination for best international feature film.

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

    ref. Oscars 2025: who will likely win, who should win, and who barely deserves to be there – https://theconversation.com/oscars-2025-who-will-likely-win-who-should-win-and-who-barely-deserves-to-be-there-250783

    MIL OSI AnalysisEveningReport.nz

  • MIL-OSI NGOs: Mozambique: Authorities must investigate reports of more than 300 unlawful killings during post-election protest crackdown 

    Source: Amnesty International –

    Mozambique’s Frelimo-led government must urgently launch investigations into reports of widespread human rights violations committed during the ongoing crackdown on protests following disputed national elections and commit to making the findings public, Amnesty International said.  

    Nationwide demonstrations erupted on 21 October 2024 following the killing of two prominent opposition-aligned figures. Since then, there have been credible reports of widespread human rights violations with more than 300 people reported killed, including children and bystanders, in an attempt to crush the protests, with the vast majority of deaths blamed on security forces, according to tallies by monitoring groups. Government forces have also shot and wounded more than 700 others and arbitrarily detained thousands, according to the same tallies, with reports of torture and other ill-treatment in custody. The authorities have also reportedly targeted journalists, restricted internet access and deployed the military. 

    “The crackdown on protests in Mozambique following last year’s election has been appalling. It is the bloodiest election cycle in Mozambique’s post-civil war history, yet the suspected perpetrators have enjoyed complete impunity,” said Amnesty International’s Deputy Regional Director for East and Southern Africa, Khanyo Farisè. 

    President Daniel Chapo must prove his readiness to break this cycle of impunity by championing calls for urgent investigations.

    Khanyo Farisè, Amnesty International Deputy Regional Director for East and Southern Africa

    “Mozambique’s new government must promptly open independent, effective and thorough investigations into all deaths, incidents of torture and other ill-treatment, and other reported human rights violations during the ongoing crackdown, with clear timelines to publicize results. President Daniel Chapo must prove his readiness to break this cycle of impunity by championing calls for urgent investigations and ensuring full cooperation with the investigative authorities. He must also ensure effective reparation to victims and survivors and use his authority to end human rights violations by security forces during protests.”  

    MIL OSI NGO