COMMUNICATION FROM THE COMMISSION TO THE EUROPEAN PARLIAMENT AND THE COUNCIL on measures within the Commission’s powers which the Commission can adopt when it determines, pursuant to the Regulation of the European Parliament and of the Council on the protection of the Union and its Member States from economic coercion by third countries, that the Union takes response measures to counteract a third-country measure of economic coercion
Date: 2021-12-08
Institutions: Directorate-General for Trade and Economic Security, European Commission
Subjects: EU Member State, EU restrictive measure, economic sanctions, international sanctions, international trade, investment, legal person, natural person, third country, trade restriction

EN 

  EN 

   EUROPEAN COMMISSION  Brussels, 8.12.2021  COM(2021) 774 final  COMMUNICATION FROM THE COMMISSION TO THE EUROPEAN PARLIAMENT AND THE COUNCIL on measures within the Commission’s powers which the Commission can adopt when it determines, pursuant to the Regulation of the European Parliament and of the Council on the protection of the Union and its Member States from economic coercion by third countries, that the Union takes response measures to counteract a third-country measure of economic coercion  
 
 
In order to prevent third countries from coercing the Union or a Member State into making a 
particular policy choice, the Regulation of the European Parliament and of the Council on the 
protection  of  the  Union  and  its  Member  States  from  economic  coercion  by  third  countries 
provides  for  a  set  of  possible  Union  responses  to  the  third  country’s  measure  of  economic 
coercion.1  

Prior to the Commission’s adoption of a countermeasure, the Regulation establishes a multi-
step procedure in order to dissuade the third country concerned from maintaining the measure 
of  economic  coercion.  The  procedure  begins  with  an  examination  of  the  third-country 
measure, followed by a determination of the existence of economic coercion and an attempt at 
cooperative engagement with the third country in question. Once the Commission has made a 
determination,  but  engagement  with  the  third  country  has  not  led  to  the  cessation  of  the 
measure of economic coercion and reparation of any injury caused to the Union or a Member 
State,  the  Commission  can  react  by  adopting  an  implementing  act,  determining  that  it  is 
necessary to take a Union response measure. A number of possible Union response measures 
are identified in  the Regulation.  However, to  serve the purpose of ensuring that as broad as 
possible  a  range  of  response  measures  are  available  to  the  Union  to  counter  measures  of 
economic coercion by third countries, the Commission may also take measures not listed in 
the Regulation that fall under the Commission’s powers. Any such action by the Commission 
should be synchronised and consistent with action under the Regulation.  

The  Commission  has  specific  powers  regarding  the  granting  of  Union  funding.  Thus,  the 
Commission can have the ability to act as regards Union funding to third countries that apply 
measures of economic coercion or to persons designated pursuant to the Regulation. To that 
effect, the Commission may consider, in accordance with the rules and procedures under the 
relevant  Union  financing  instruments,  together  with  the  potential  Union  response  measures 
listed  in  the  Regulation,  any  of  the  following  actions  where  they  would  be  effective  in 
inducing the cessation of measures of economic coercion, when it is determined, pursuant to 
the Regulation, that Union response measures should be adopted: 

  The Commission will consider not engaging in new Union financial commitments for 
programmes  or  funds  under  the  terms  of  the  relevant  budgetary  implementation 
procedure; 

  The Commission will consider opposing new financing operations, where permissible 
in accordance with the agreement between the Union, represented by the Commission, 
and an entity entrusted with the indirect management of a programme;  

  The  Commission  will  consider  refraining  from  proposing  new  macro-financial 
assistance to the third country concerned pursuant to Articles 209, 212 and 213 of the 
Treaty  on  the  Functioning  of  the  European  Union,  and  suspending  or  cancelling 
disbursements in running operations in accordance with the applicable agreements; 

1 COM (2021) 775 of 8 December 2021. 

 
 
 
                                                 
  The  Commission  will  consider  suspending  or  terminating,  where  permissible,  any 
contribution or guarantee agreement between the Commission on behalf of the Union 
and entrusted entities that relate to a third country concerned or a designated person; 
  The  Commission  will  consider  any  appropriate  measures,  including  suspension  of 
actions financed under Regulation (EU) 2021/947 of the European Parliament and of 
the  Council  of  9  June  2021  establishing  the  Neighbourhood,  Development  and 
International  Cooperation  Instrument  –  Global  Europe2  or  under  Regulation  (EU) 
2021/1529  of  the  European  Parliament  and  of  the  Council  of  15  September  2021 
establishing  the  Instrument  for  Pre-Accession  assistance  (IPA  III)  or  their  successor 
instruments3. 

On the same terms, the Commission may take the following measures regarding financing by 
the European Investment Bank or the European Bank for Reconstruction and Development: 

  On the basis of Article 19 of the Statute of the European Investment Bank, annexed to  
the Treaty on the European Union and the Treaty on the Functioning of the European 
Union (Protocol No 5), the Commission will consider adopting unfavourable opinions 
regarding applications for financing to the European Investment Bank. 

  The Commission will consider recommending the European Bank for Reconstruction 
and  Development  Board  Director  representing  the  Union  to  vote  against  approving 
funding.  

2 Regulation (EU) 2021/947 of the European Parliament and of the Council of 9 June 2021 establishing the 
Neighbourhood, Development and International Cooperation Instrument – Global Europe, amending and 
repealing Decision No 466/2014/EU and repealing Regulation (EU) 2017/1601 and Council Regulation 
(EC, Euratom) No 480/2009 5OJ L 209, 14.6.2021, p. 1). 
3 Regulation (EU) 2021/1529 of the European Parliament and of the Council of 15 September 2021 establishing 
the Instrument for Pre-Accession assistance (IPA III) (OJ L 330, 20.9.2021, p. 1).