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Case C-125/18, "Marc Gomez del Moral Guasch vs. BankiaSA" concerns a request to the European Court of Justice(the "ECJ") for a preliminary ruling from Juzgado dePrimera Instancia No 38 de Barcelona (Court of First InstanceNo. 38, Barcelona, Spain) in relation to the fairness or otherwiseof a contractual term governing the variable ordinary andremunerative interest rate in a mortgage loan agreement.

Under the agreement in question, the interest rate payable by MrGomez del Moral Guasch was to vary according to the reference indexbased on the mortgage loans granted by the Spanish savings banks,which index is provided for by Spanish law. The indexing of thevariable interest rates calculated on the basis of the referenceindex was less favourable than that calculated on the basis of theaverage Euro Interbank Offered Rate (Euribor) and, thus, Mr Gomezdel Moral Guasch argued that a term in a mortgage loan agreementstating that the interest is to vary according to the referenceindex provided under Spanish law was unfair.

The Spanish Court referred three questions to the ECJ:

The Court noted that article 1(2) of the Directive excludes fromits scope contractual terms that reflect mandatory statutory orregulatory provisions. However, the Court observed that thenational legislation applicable in the present case did notrequire, for variable-interest-rate loans, the mandatory use of anofficial reference index, but merely established the conditions tobe satisfied by 'the reference indices or rates' in orderfor them to be used by credit institutions. Therefore, the Courtconcluded that where national legislation does not provide eitherfor the mandatory application of an interest rate based on areference index or for the supplementary application thereof, inthe absence of any other arrangement between the parties to thecontract, a contractual term in a mortgage loan agreement statingthat the interest payable by the customer shall vary according tothat reference index is considered an unfair contractual term interms of the Directive.

Article 4(2) of the Directive provides that the"assessment of the unfair nature of the terms is not torelate, inter alia, to the definition of the main subject matter ofthe contract, in so far as the terms are in plain, intelligiblelanguage". The Court concluded that although thisprovision of the Directive was not transposed into Spanish law; (i)contractual terms must always satisfy the requirement of plain andintelligible drafting; and (ii) national courts are always requiredto verify that a contractual term relating to the main subjectmatter of a contract is plain and intelligible regardless ofwhether or not the Member State concerned transposed article 4(2)of the Directive into national legislation.

Furthermore, the Court concluded that in order to satisfy therequirement of plain and intelligible drafting, a contractual termsetting a variable interest rate in a mortgage loan agreement mustnot only be formally and grammatically intelligible but must alsoenable an average consumer, who is reasonably well-informed,observant and circumspect, to be in a position to understand thespecific functioning of the method used for calculating that rateso as to enable the consumer to understand the potentiallysignificant economic consequences of such a term on his or herfinancial obligations.

The Court observed that articles 6(1) and 7(1) of the Directivedo not preclude a national court from removing an unfair term froma contract and replacing it with a supplementary provision undernational law. Therefore, the Court concluded that if it is foundthat the term at issue is unfair, the Spanish Court may, in orderto protect the consumer from unfavourable consequences liable toarise from the annulment of the loan agreement, replace that unfairindex with a supplementary index provided for by Spanish law.

The key takeaways from this ruling which is likely tocause a number of lending institutions to review and re-think thedrafting of any credit agreements falling within the scope of theDirective - are the following:

(1) Where a provision in a consumer contract is made in terms ofnational law and does not constitute a mandatory statutoryprovision, it may still be considered to be unfair and will notfall within the exception provided under article 1(2) of theDirective;

(2) Contract terms must always be drafted in plain andintelligible language and national courts will always be in aposition to verify whether this requirement was satisfied,regardless of the manner in which the Directive was transposed intonational law;

(3) National courts may, subject to the principles of contractlaw, prevent the continued use of an unfair contract term andreplace it with a supplementary provision of national law in caseswhere the unfair term leads to nullity of the contract andpotential adverse consequences in respect of the consumer.

The content of this article is intended to provide a generalguide to the subject matter. Specialist advice should be soughtabout your specific circumstances.

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On 22 December 2017, the Grand Ducal Regulation of 21 December 2017 relating to the fees to be levied by the CSSF which repeals the Grand Ducal Regulation of 28 October 2013 was published in the Mmorial A.

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The Court Of Justice Of The European Union Gives Preliminary Ruling On Unfair Terms In A Mortgage Loan Agreement - Finance and Banking - European...

The coronavirus pandemic has already claimed thousands of lives and triggered a global recession, but also opened up not-quite healed wounds between members of the European Union.

Italy, the hardest-hit EU country, wants massive help from Brussels to keep its economy afloat. Specifically, Italian Prime Minister Guiseppe Conte is pushing for a joint borrowing system that would allow poorer EU nations to take out cheap loans with the richer members guaranteeing the funds would be returned. Several other countries, including Spain, Portugaland Greece have also signaled their support for the scheme.

Speaking to Il Sole 24 Ore newspaper, Conte called for the EU to take immediate action, otherwise the coming generations could be forced to bear the "immense cost of a destroyed economy," he warned.

"If Europe does not rise to this unprecedented challenge, there is a danger that the European house loses its foundations before the eyes of our citizens," Conte told the daily.

Read more:Coronavirus and the EU: The nation versus the union?

'Hard' clash between Conte and Merkel

However, member states including Germany and the Netherlands have already bluntly refused the so-called "corona bonds" scheme. The issue prompted a row at the Thursday video conference which included Conte and other top EU leaders.

According to the Italian prime minister, he and Germany's Angela Merkel had "not just a disagreement but a hard and frank confrontation" during the talks. Eventually, Conte rejected the pledge proposed by other EU leaders, saying that it did not go far enough, and publicly gave the EU a 10-day deadline to come up with an alternative solution.

The idea of an EU borrowing scheme was already floated and dismissed in the years following the 2008 market crash, and remains an emotionally charged issue. In 2012, the head of Germany's central bank Jens Weidmann summed up how many German leaders and bankers feel about it.

"One does not just trust someone else with their credit card when you don't have the option of controlling their expenses," Weidmann told Le Monde at the time.

Read more:Coronavirus: What are the lockdown measures across Europe?

'Crossing a Rubicon'

Following the Thursday conference,Merkel said she was not in favor of the corona bonds solution. Instead, the German leader recommended using the European Stability Mechanism, the EU agency that was deployed to assist Greece's lengthy economic recovery.

Dutch Prime Minister Mark Rutte went a step further, saying that a system to share debt would mean "crossing a Rubicon" for the eurozone.

"We are against it, but it's not just us, and I cannot foresee any circumstances in which we would change that position," he told reporters.

In turn, Portugal's Prime Minister Antonio Costa slammed Rutte's comments.

"This type of response is completely ignorant and this recurring pettiness completely undermines what makes up the spirit of the European Union," he was quoted by the AFP news agency as saying.

Activity on the bustling streets of Paris came to a complete halt after France announced a nationwide lockdown last Tuesday. People are not allowed to leave their homes, unless it is for a sanctioned reason such as buying food, visiting a doctor or going to work. The mayor of Paris, however, has called for stricter confinement measures as the number of infections increases worldwide.

Chancellor Angela Merkel on Sunday announced tightened restrictions on movement in Germany. The nine-point plan includes no public gatherings of more than two people, keeping 1.5 meters (4.9 feet) distance between people at all times and the closure of restaurants. Later on Sunday, Merkel went into quarantine after being told she'd come into contact with a doctor who tested positive for COVID-19.

In addition to limiting movement domestically, Germany has tightened restrictions on foreigners entering the country. As a result, traffic at the country's busiest airport, in Frankfurt, has seen a significant drop.

The southern state of Bavaria imposed a statewide lockdown late last week to prevent the spread of coronavirus. Under the measures that will be in force for at least two weeks, people are not allowed to gather outside in groups and restaurants have been closed.

The United Kingdom has closed all bars, pubs and restaurants to combat the threat of coronavirus. Prime Minister Boris Johnson has urged all citizens to avoid all nonessential travel and contact with other people indefinitely.

In recent weeks, the epicenter of the global coronavirus pandemic has shifted from China to Italy. The country has seen an exponentional increase in infections and deaths. Italy has been on a nationwide lockdown since March 10.

While an overwhelming number of coronavirus cases have been recorded in Italy's northern Lombardy region, Rome and Vatican City have also been forced to severely curb public gatherings. Popular tourist sites such as St. Peter's Square have been closed.

The Spanish government on Sunday sought to extend the country's state of emergency until April 11, close to a month after it was first imposed on March 14. Spain currently has the second-highest number of coronavirus cases in Europe, with Barcelona and Madrid particularly hard-hit.

Austria reported a 15% rise in confirmed coronavirus cases over the weekend, far lower than its peak rate of 40%. The decrease comes after the government imposed drastic social distancing measures across the country. Authorities in Vienna, however, aim to bring the rate down to single digits over the next three weeks.

Author: Seerat Chabba

Macron, Steinmeier want solidarity

French President Emmanuel Macron also added to the pressure on Berlin and other opposing countries.

"We won't overcome this crisis without strong European solidarity, in terms of health and budgets," Macron said in a joint interview with Italy's Corriere de la Serra, La Stampaand La Repubblica.

"This could involve a capacity to assume common debt whatever it is called or an increase in the EU budget to provide real support for the worst-hit countries."

The pressure on Merkel's government might also be mounting from the inside, after German President Frank-Walter Steinmeier also called for joining forces across the bloc.

Read more:How coronavirus challenges open democracies

"We must look beyond the next border fence," Steinmeier said in a video posted on social media on Thursday. "The virus has no nationality, and suffering does not stop at borders."

He praised German hospitals for treating Italian and French patients and added that he would like to see "more such concrete solidarity in the European spirit."

Healthy Italian firms 'need to be saved'

Separately, Merkel's long-time ally and former defense minister of Germany, Ursula von der Leyen, did not exclude the possibility of "corona bonds" from her current post as the head of the EU Commission.

"The word corona bond is actually just a buzzword," she told Germany's dpa news agency on Saturday, adding that reservations in Germany and other countries were "justified."

At the same time, the EU's goal "has always been to bring us together economically," von der Leyen said.

"Italy stands in this coronavirus crisis through no fault of its own, the crisis that has hit the country right through its industrial heart, the medium-sized businesses in the north," she added. "These healthy companies need to be saved."

When asked directly on her expectations regarding the scheme, von der Leyen noted that EU officials are working on developing a policy proposal that would be presented to EU states' leaders in the next 14 days.

"One should wait this out," she said.

To many, the ongoing squabbles and lackluster pledges of help sound like a recipe to repeat the eurozone crisis which only faded away after years of conflict with the European bloc. It is far from certain, however, that the EU would be able to push through another crisis of this magnitude.

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Coronavirus shakes foundations of the European Union - DW (English)

The European Union has come under fire for its slow response in the coronavirus outbreak.

The bloc's early missteps set the stage for heavy criticism at a time when people are looking to governments to protect them from an invisible enemy.

At yesterday's EU video summit, leaders failed to agree on further economic measures for member states during the rapidly evolving pandemic, an outcome that highlights existing divides between member states on economic policy.

"Basically the outcome of the summit is something not particularly surprising but still its obviously an outcome which is going to cast a shadow on a previously pretty efficient EU response," said Agata Gostyska-Jakubowska from the Centre for European Reform.

Member states did not agree on pooling mutual debt through so called "corona-bonds", something that had been called on by several member states but opposed by those often viewed as more frugal such as Germany and the Netherlands.

"We need to work on a common debt instrument issued by a European institution to raise funds on the market," nine member states including hardest hit Italy and Spain wrote in a letter to European Council President Charles Michel ahead of the video conference summit.

Spanish Prime Minister Pedro Sanchez set out a deadline of two weeks for a more concrete agreement, demanding that the EU "learn the lessons of the past and not fail citizens again" after countries disagreed on the recovery bonds.

"The future of the European project is at stake, we choose between a coordinated and united EU or individualism," Sanchez said.

It's not the only misstep that's occurred in the EU's response to the health crisis that has taken the lives of thousands of people in Europe.

Commission President Ursula von der Leyen reproached member states earlier on Thursday for their protectionist approaches to the crisis.

"When Europe really needed to be there for each other, too many initially looked out for themselves," said Ursula von der Leyen during an extraordinary EU Parliament Plenary session. "When Europe really needed an all for one' spirit, too many initially gave an only for me' response."

She was likely referring to bans on exporting personal protective equipment such as masks when Italy called on member states for help.

Italy's ambassador to the EU Maurizio Massari wrote in Politico on March 10 that the actions of other member states did not show "European solidarity" as he called for a European response to the pandemic.

"This initial lack of solidarity with Italy has already made for a pretty big reputation damage," said Gostyska-Jakubowska. "Average Italians will probably remember more favourably the fact that the Chinese are now sending them equipment and will hold it against the member states for turning their back on them."

Indeed it wasn't until March 15 that internal market commissioner Thierry Breton tweeted that bans on equipment were lifted after "intense discussions" with Germany and France. The Commission has said since that the two EU members have sent more masks and equipment to Italy now than China has.

The pandemic has also revealed there is little coordination between member state health systems.

"It showed us how decentralised the members of the European Union are in this policy area," said Cecilie Felicia Stokholm Banke, a senior researcher at the Danish Institute for International Studies.

There is no common system across the European Union for testing, quarantine, or lockdowns. Germany was one of the first countries to close its internal borders acting independently of other states.

Comparing health information across the bloc is tricky, experts have said, due to differences in testing methods and how data is compiled.

But despite those early missteps, there have been large efforts to address the crisis at the European level.

One success in particular, some say, was to create a European stockpile of medical equipment, through the civil protection mechanism that Italy had asked for help from early on. The EU is also putting 140 million into research projects to support treatment, testing and the search for a COVID-19 vaccine.

This month, the Commission banned exports of protective medical equipment outside the EU without express authorisation and closed the bloc's external borders.

But mainly, they have taken certain steps to use their economic role to help member states during the crisis - including loosening existing rules on state finances. This included issuing an escape clause that lifts the rule that governments must keep their budget deficits below 3% of GDP.

The European Central Bank eventually jumped into action creating a 750 billion emergency pandemic plan to buy government debt and stimulate the economy.

But experts say the EU needs to be even more decisive if it wants to preserve its reputation and position amongst member states.

"This could be a make or break moment for the Eurozone," said Gostyska-Jakubowska.

The various moves to help the system have not stopped criticism of the bloc - particularly from some who welcome countries' seemingly nationalistic policies put in place to protect citizens.

Carnegie Europe visiting scholar Marc Pierini wrote in a commentary on the EU's handling of the crisis that the pandemic's timing raised the "political stakes" as it comes after "a decade marked by the emergence of populist and nationalist parties who leaders express open hostility to European integration".

Already the leader of France's far-right Marine Le Pen declared the EU as the "first death" of the pandemic, speaking out about the bloc's "incapacity" to act in an interview with Russia Today (RT).

Indeed many far-right politicians have taken this opportunity to denounce the EU's response to the crisis, talking up the closing of internal borders as a rejection of the message the bloc preaches.

Experts concur that this is a test for the bloc and its values, but many say it's also a key opportunity.

"In the best-case scenario, political leaders not only handle the crisis well, but use the momentum to further much needed steps of deepening," wrote Daniela Schwarzer and Shahin Vale from the German Council of Foreign Relations in a policy brief released earlier this month.

"I wouldnt be that pessimistic actually though I do think its early to say whether the Eurozone would come out stronger from this particular crisis," said Banke.

"I think we will see the European Union actually being able to tackle this situation," she added.

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'The future of the European project is at stake': EU in crosshairs of coronavirus pandemic - Euronews

In many of the Eastern Members States of the European Union, Roma are made the scapegoat for the spread of the virus,as an excuse of some politicians for their lack of proper management to contain the virus and keep people safe from infection.

The pandemic has brought out the worst part of our modern societys behavior, hatred and racism.

Unfortunately, it shows the whole world the huge and sinister difference between social classes, negative attitudes, and discrimination against ethnic minorities.

In Europe, this virus is pointing to a total failure of governments, as a result of their continuous lack of interest and political will for the social inclusion of the largest ethnic group, the people with Romani background.

Around 12 million people with Romani background are living on the continent. More than 6 million in the European Union, and 80% of them live in extreme poverty.

The European Union still has mayors that often stop the sewerage, electricity, water and gas supply just at the beginning of the poor Roma community, so that they can still maneuver them in times of elections with false promises.

Now, they ask Romani people to clean their hands with soap and water. Well, wheres the water, if you didnt give it to them?

The EU still has segregated communities, where human beings, children, live at the garbage dump, they go to bed hungry, in ghettos, and are often bitten by rats.

A European Union where Members States leaders use hate speech against Roma as a political tool to get electorates by their side and win another mandate, where a Hungarian prime minister blocks a court decision granting compensation to Roma victims of school segregation.

This is only a part of a sad image developed from the Members States neglection and lack of equal treatment for the inclusion of the largest minority group in the EU.

Take the following scenario into account: What if a Roma member of a marginalized community, without access to health care services, without protective equipment such as gloves, masks, etc.,is getting infected?What are the risks for an entire community to get sick? Who will treat them? Most of them, especially elders and those in a precarious health condition will be condemned to death. And this will have a devastating effect on an entire society as this situation cannot be easily managed in a country where the health care system is very fragile.

The spread of Corona cannot be slowed down if we ethnicize the problem. Unfortunately, this is happening especially in Eastern European countries, where Roma coming back from Western Europe to their home countries, such as Romania, are blamed and made the scapegoat for the spread of the virus.In Slovakia, the mayor of Kosice, Jaroslav Polacek, warned the society that Roma can spread the coronavirus accusing them of socially unadaptable people.

In other villages and towns, the inhabitants called the police and gendarmerie to take special measures against Roma in segregated communities, asking to put them in prison as the only solution to stop the spread of coronavirus.

The same happens in Bulgaria, where the nationalist VMRO party called for strict measures on people with Romani background.

Racism is not a solution to this crisis. We need to be supportive, the virus does not care about wealth, poverty or ethnicity. It can hit everyone. When it does, it can be lethal, not just for those infected, but for an entire community, if we dont make sure we protect the most vulnerable among us, said Romeo Franz, a Romani Member of the European Parliament.

Instead of using hate speech or racist political narrative, governments should make sure Roma have access to basic utilities,to keep them safe from infection. A response of social solidarity can ensure that the pandemic is overcome as quickly as possible.

Marius Tudor, senior adviser on non-discrimination and Roma Policies at the European Parliament

Read more here:
Opinion | The European Union is failing its largest ethnic minority in times of Coronavirus crisis - The Brussels Times

The European Union and its Member Statesregretthatthe fightinghas increasedin Libyadespite the international calls for a humanitarian truce to help contain the Coronavirus pandemic inthe country.The challenging circumstances created by the Coronavirus pandemic make the needto halt the fighting in Tripoli and across the country even more urgent. We strongly condemnany attack againstcivilian population.

We urge all the relevant Libyan actorstoimmediately stop the fighting and engage inreaching a political solution to the crisis. The leadershipof thetwo parties shouldcommit tothe draftceasefireagreement developed by the Joint Military Committee (5+5) in the UNSMIL-facilitated Geneva talks,so that all available assetscan be deployedin priorityto contain the Coronavirus crisis.

We condemn the use of civilian infrastructure for military purposes and call on all parties to respect human rights and international law.A truce would facilitate taking all the necessary stepsto protect the Libyan populationandthe most vulnerable in the country, includingthe Libyan IDPs as well asmigrants, refugees and asylum seekers in the detention centres, for whom the possible spread of the virus could have further catastrophic consequences.We strongly support and encourage efforts of Libyan health authorities to come together to assist the Libyan population. Health workersshould be protectedat all times.

Wecall once again on all UN Member States to respect and uphold the UN arms embargo, to discontinue the influx of foreign fighters into Libya and to refrain from destabilising actions that could further deteriorate the already fragile situation in the country.

All the Libyan parties need to engage constructively in the UN-facilitated intra-Libyan talks in order to agree on the implementation of urgent economic and financial measures,including the audit of the Central Bank of Libya and its branch in the East.

It is also crucial to safeguard Libyas oil resources and protect its infrastructurein full compliance with the relevant UN Security Council resolutions.Oil production should resume under the auspices of the National Oil Company (NOC) as a matter of urgency and its equitable distribution among all Libyan regions and in the interest of all Libyansshould be ensured.

On their side, the European Union and its Member States reiterate their full commitment to support the Berlin Process and the UN-led mediation efforts. Theyare ready to deploy all the instruments necessary to ensure full implementation of the BerlinConference Conclusions,including through the new Common Security and Defence Policy operation EUNAVFOR MED-IRINI. They recall the important role of neighbouring countries and regional organisations in the follow-up of the Berlin Process.They also reaffirm theirfull support to the active role of the UNSMILand underline the need for a new United Nations Special Representative of the Secretary-General for Libya to be appointed.

See more here:
Declaration by the High Representative Joseph Borrell, on behalf of the European Union, on the situation in Libya - EU News