(1)

The Swiss franc London Interbank Offered Rate (CHF LIBOR) is one of the five LIBOR currency rates administered by the Ice Benchmark Administration (IBA). CHF LIBOR reflects the rate of interest at which large, leading, internationally active banks with access to the wholesale, unsecured funding market can fund themselves in such market in Swiss francs. The IBA calculates the rate based on data submissions communicated to IBA by a panel of banks.

(2)

The Financial Conduct Authority of the United Kingdom (UK FCA) has announced the cessation of certain LIBOR benchmarks, including CHF LIBOR, by the end of 2021. That cessation is due to concerns about whether LIBOR, in certain of its settings, adequately represents an underlying market or an economic reality that is reflective of a wholesale, unsecured funding market. Those concerns find their origin in the unwillingness of the majority of LIBOR panel banks to continue contributing to the LIBOR settings concerned, as announced by IBA on 5 March 2021 in its ICE LIBOR Feedback Statement on Consultation on Potential Cessation.

(3)

In the past, a number of banks have used CHF LIBOR in the Union as a reference rate in a large number of outstanding retail mortgages, most of which will expire after the end of 2021. According to the responses to a public consultation held by the Commission, there are currently EUR 35 billion mortgage contracts in the Union that reference CHF LIBOR. The greatest number of those contracts are outstanding in Poland, with the rest outstanding in Austria, Slovenia, Netherlands and France.

(4)

The magnitude of the potential disruption caused by the cessation of CHF LIBOR, and the need to mitigate the discontinuity of contracts referencing CHF LIBOR to avoid the materialisation of that disruption, were highlighted in a number of exchanges between the Commission and public authorities concerned. The Commission duly took into account the factual elements provided to assess whether the conditions set out under Article 23b of Regulation (EU) 2016/1011 are met and, therefore, to establish the need for the Commission to take action.

(5)

The 2021 Financial Stability Report issued by the National Bank of Poland (2) mentions that, at the end of 2020, more than 410 000 households in Poland had CHF LIBOR- related mortgages, based on various tenors of CHF LIBOR. That represents around 20 % of the total Polish mortgage loan portfolio, which, according to other data provided by the relevant authorities, account for a total value of around PLN 100 billion (ca. EUR 22 billion). The majority of those mortgages is long-term and will remain outstanding beyond 2030. The report highlights the risks posed by the cessation of CHF LIBOR, and the need to ensure the continuity of Swiss franc denominated housing loan contracts to avoid the materialisation of such risks. The report further underlines that the absence of fallback provisions and legal acts designating the replacement for the CHF LIBOR benchmark might threaten the continuity of such agreements, and consequently, translate into financial losses of banks. The Polish Ministry of Finance submitted similar data to the Commission.

(6)

In Austria, as of June 2021, between 50 000 and 60 000 mortgage loans to Austrian households reference CHF LIBOR, which represents a volume of EUR 9,6 billion, and about 5,7 % of Austria’s entire household debt. Around 400 Austrian banks are engaged in mortgage portfolios referencing CHF LIBOR. The National Bank of Austria and the Austrian Financial Market Authority (FMA) submitted similar supporting data in a letter sent to the Commission.

(7)

In Slovenia, over 6 700 consumer credit agreements for a total value in excess of EUR 300 million referenced CHF LIBOR on 31 December 2020, with the last batch of those contracts not expiring until 2043. In addition, 9 out of 15 banks are exposed to CHF LIBOR. The share of housing loans in CHF LIBOR in those 9 banks compared to all housing loans represents 6,34 % and the share of mortgage loans in CHF LIBOR compared to all mortgage loans represents 7,13 %.

(8)

In the Netherlands, it is estimated that ca. EUR 500 million worth of retail mortgages without fall-back clauses reference Swiss CHF LIBOR.

(9)

In France, regional banks have about 6 400 retail loan contracts referencing CHF LIBOR maturing after 2021.

(10)

Regulation (EU) 2016/1011 requires that users of benchmarks produce and maintain robust written plans setting out the actions that they would take in the event that a benchmark materially changes or ceases to be provided and, where feasible and appropriate, designate one or several alternative benchmarks as fall-backs for a benchmark that would no longer be published. Contracts referencing CHF LIBOR have been concluded long before the cessation of CHF LIBOR could be expected and before Regulation (EU) 2016/1011 started to apply. Those contracts therefore do not contain fall-back provisions that address the event that a benchmark administrator can no longer publish a contractual reference after a certain date.

(11)

Due to the difficulty to identify an appropriate replacement for CHF LIBOR before clear recommendations were offered to the market by the National Working Group on Swiss Franc Reference Rates (Swiss NWG), also contracts concluded after the date of application (1 January 2018) of Regulation (EU) 2016/1011 do not contain fall-back provisions or suitable fall-back provisions.

(12)

Without transitioning contracts referencing CHF LIBOR to a designated replacement for that benchmark, there is a serious risk of contract frustration in several Member States. The designation of that replacement should therefore ensure the mitigation of such risk, the materialisation of which might significantly disrupt the functioning of financial markets in the Union.

(13)

On 5 March 2021, the UK FCA announced the future loss of representativeness and cessation of all CHF LIBOR settings. Such statement constitutes a trigger for the Commission to exercise its power to designate a statutory replacement for CHF LIBOR pursuant to Article 23b(8) of Regulation (EU) 2016/1011.

(14)

The result of the public consultation by the Commission established the important role of certain CHF LIBOR tenors in mortgage contracts, particularly the 1-month, 3- month, 6-month and 12-month tenors. The lack of a clear and unambiguous replacement rate in mortgage contracts that reference CHF LIBOR would give rise to legal uncertainty, which may trigger litigation and contract frustration. It is therefore appropriate for the Commission to designate a statutory replacement for those four tenors of CHF LIBOR to be used in any contract, and in any financial instrument as defined in Directive 2014/65/EU of the European Parliament and of the Council (3), including but not limited to savings accounts, mortgages and loans, including consumer credit agreements and small business loans, governed by the laws of one of the Member States that do not contain fall-back provisions or suitable fall-back provisions.

(15)

In 2017, the Swiss NWG recommended the Swiss Average Rate Overnight (SARON) administered by SIX Swiss Exchange Financial Information AG (SIX) as the replacement rate for CHF LIBOR (4). In September 2020, after acknowledging the impossibility to create a forward looking term rate based on SARON, the Swiss NWG recommended that compounded SARON should be used as the basis for a fall-back rate for references to CHF LIBOR for cash products. A designated replacement for the relevant tenors of CHF LIBOR in legacy cash contracts should therefore be calculated as a compounded rate of SARON.

(16)

The result of the public consultation by the Commission has shown support, including by public authorities from the Member States most concerned for designating a statutory replacement for all settings of CHF LIBOR in line with the recommendations of the Swiss NWG. While CHF LIBOR is a forward-looking rate, where the client knows in advance the interest due for the upcoming period, compounded SARON is a backward-looking rate. That means that the interest rate over a given period is only known at the end of that period. In order to facilitate the use of the interest rate at the beginning of the interest period, a potential solution would be to determine the interest rate on the basis of an observation period preceding the interest period. On 29 September 2020, the Swiss NWG recommended, in cases where the interest payment has to be known at the beginning of the interest period, to use the compounded SARON in accordance with the ‘last reset’ methodology. Such methodology consists of determining the interest rate for the upcoming period on the basis of the observed compounded interest rate for a prior period that is equal to the length of the interest period at hand.

(17)

According to the Swiss NWG recommendation of 1 February 2021, users should adopt, as a replacement rate for CHF LIBOR 1-Month, SARON 1-Month Compound Rate and for CHF LIBOR 3-Month, SARON 3-Month Compound Rate determined under the last reset methodology, that is, the compounded SARON rate as calculated on the basis of respectively the 1-month and 3-month period directly preceding the interest period.

(18)

The Euro Risk-Free Rate Working Group, in its recommendation of 11 May 2021, indicated that the last reset methodology for periods longer than three months may create accounting and hedging challenges caused by the structural differences between the IBOR (as forward looking) and the SARON (as backward-looking), which are particularly pronounced in case of longer-term tenors. As an alternative methodology, the Swiss NWG, on 1 July 2021 recommended the use of the ‘last recent’ methodology with 1-month observation period. Such methodology consists of determining the interest rate for the upcoming period on the basis of the observed compounded interest rate for a prior period that is shorter than the interest period at hand. Taking stock of the recommendations of the Euro Risk-Free Rate Working Group, and in order to remain as close as possible to the original reference period for each tenor, the 3-Month SARON Compound Rate was considered more appropriate than the 1-Month SARON Compound Rate for CHF LIBOR tenors of 3 months and beyond. It is, therefore, considered appropriate to use SARON 1-Month and SARON 3-Month Compound Rates as replacements for, respectively, CHF LIBOR 1-Month and CHF LIBOR 3-Month and to use SARON 3-Month Compound Rate also as a replacement for CHF LIBOR 6-Month and 12-Month.

(19)

There is a difference in value between CHF LIBOR and SARON Compound Rate. In order to reflect such difference and minimise the economic impact of a replacement, a fixed spread adjustment should be added to SARON Compound Rate for each of the CHF LIBOR tenors it replaces.

(20)

The public consultation held by the Commission has confirmed the appropriateness of calculating a fixed spread adjustment based on the historical median spread between Swiss franc LIBOR and the SARON Compound Rate concerned over a five-year lookback period up to 5 March 2021.

(21)

It is therefore appropriate that the rates designated by the Commission to replace the tenors of CHF LIBOR concerned correspond to the SARON Compound Rate plus the relevant adjustment spread as published for each of the relevant compounded SARON tenors concerned (1-month, 3-month, 6-month and 12-month).

(22)

According to Article 23b(3) of Regulation (EU) 2016/1011, a replacement for CHF LIBOR replaces, by operation of law, all references to that benchmark in any contract, and in any financial instrument as defined in Directive 2014/65/EU not containing fall-back provisions or suitable fall-back provisions. This replacement does therefore not affect contracts that have been successfully renegotiated to cater for the cessation of CHF LIBOR, as provided for under Article 23b(11) of Regulation (EU) 2016/1011.

(23)

Considering that LIBOR will cease to be published on 1 January 2022, the designated rates should replace references to CHF LIBOR as of such date.

(24)

The UK FCA, as supervisor of the CHF LIBOR administrator, the Swiss National Bank in its role of secretariat to the Swiss NWG and the European Securities and Market Authority (ESMA), provided their views on this Regulation.

(25)

The measures provided for in this Regulation are in accordance with the opinion of the European Securities Committee,

(1)

The Euro overnight index average (EONIA) is a critical benchmark representing the interest rates on unsecured overnight lending transactions denominated in euros. EONIA is used in the context of overnight index swaps, and a wide range of other products. It is essential for cash settlement and highly relevant for other purposes such as different valuation procedures as applied as part of collateral and risk management processes or accounting.

(2)

The original methodology for the calculation of EONIA was based on submissions provided by contributing panel banks. In February 2018, the European Money Market Institute (EMMI), acting as administrator of EONIA, announced that compliance of EONIA with Regulation (EU) 2016/1011 could not be achieved by the time such obligations would apply. Work on EONIA’s orderly wind-down was therefore initiated by EMMI and the financial industry. On 13 September 2018, the Working group on euro risk-free rates recommended the euro short-term rate (€STR) as the euro-denominated risk-free rate as a replacement for EONIA. On 14 March 2019, the working group also published recommendations on a transition from EONIA to €STR, which included a phase during which the methodology for calculating EONIA would be modified and based on €STR, as well as the method to determine the spread adjustment between €STR and EONIA.

(3)

Following those recommendations, on 31 May 2019 the European Central Bank (ECB) calculated a one-off spread between EONIA and €STR, set at 8,5 basis points. On the same day, EMMI announced the discontinuation of EONIA as of 3 January 2022. During the transition, EMMI published a reformed methodology for EONIA under which EONIA is equal to €STR as published by the ECB plus the one-off spread adjustment of 8,5 basis points. That reformed methodology applies to EONIA from 2 October 2019 until its cessation on 3 January 2022. On 11 December 2019, EMMI was granted authorisation by the Belgian Financial Services and Markets Authority (FSMA) for the provision and administration of EONIA under Article 34 of Regulation (EU) 2016/1011, allowing EONIA to be used until its discontinuation on 3 January 2022.

(4)

Despite the early announcement of the discontinuation of the EONIA rate as of 3 January 2022 and the early industry recommendations to replace any EONIA references by €STR especially for contracts maturing after that date, a large volume of contracts and financial instruments referencing EONIA are still outstanding in a number of Member States. EONIA therefore continues to play a crucial role for financial markets in the European Union. Furthermore, because of the process of reaching expert and industry-wide consensus over the appropriate transition pathway, such contracts and financial instruments generally do not contain suitable fall-back provisions covering the permanent cessation of EONIA. The cessation of EONIA is therefore likely to have a significantly disruptive impact on those contracts and financial instruments.

(5)

EONIA has been designated as a critical benchmark pursuant to Commission Implementing Regulation (EU) 2019/482 (2). Regulation (EU) 2021/168 of the European Parliament and of the Council (3), which introduced into Regulation (EU) 2016/1011 Article 23b, has conferred on the European Commission the power to designate one or more replacements for a critical benchmark where all conditions laid down in Article 23b of Regulation (EU) 2016/1011 are met. The statement by EMMI on 31 May 2019 announcing the discontinuation of EONIA, along with the circumstance that, at the time of the issuance of that statement, there was no successor administrator that would continue to provide that benchmark, satisfies the condition laid down in Article 23b(2), point (b) of Regulation (EU) 2016/1011.

(6)

Furthermore, data reported by members of the Working group on euro risk-free rates suggests that, as of 9 July 2021, several thousands of derivative contracts with direct EONIA exposures and collateral agreements referencing EONIA as the interest rate covering collateral still apply across the Union. Both references already account for a total notional amount of several trillion euros. The same members also indicated that their contractual renegotiation efforts are complete in, on average, less than half of contracts that contain EONIA references. Those completion rates point to the fact that individual renegotiation of all remaining EONIA references will cause a major challenge for contracting parties in the Union, especially supervised entities. Without transitioning such contracts to a designated replacement for a benchmark, there is a serious risk of contract frustration. While continued active efforts are expected from industry members to transition all contracts and financial instruments still referencing EONIA to €STR by the time of EONIA’s cessation, a replacement for EONIA references should therefore mitigate the materialisation of such risk, which might particularly affect clients engaging in overnight index swaps to hedge interest rate risk.

(7)

The result of expert working group consultations has established the preliminary assessment on the important role of EONIA in financial markets in the Union. It appeared from those expert working group consultations that the lack of a harmonised approach would give rise to legal uncertainty, which may trigger disputes and disruption. The Working group on euro risk-free rates has also addressed, on 15 July 2021, a formal letter calling for action from the Commission to swiftly designate a statutory replacement for EONIA. It is therefore appropriate for the Commission to designate a statutory replacement for EONIA to be used in any contract, and in any financial instrument as defined in Directive 2014/65/EU of the European Parliament and of the Council (4), that does not contain fall-back provisions or suitable fall-back provisions.

(8)

Consultations in the context of the Working group on euro risk-free rates also pointed out that replacing references to EONIA in contracts by means of contractual renegotiation has often been hampered by the volume of contracts that do not reach maturity before EONIA’s end date of 3 January 2022, and by the difficulty of obtaining consent from all parties in each and every contract. That explains the amount of contracts that still reference EONIA. Considering that situation, and considering the data reported by members of the Working group on euro risk-free rates, it should be ensured that any contract or financial instrument still referencing EONIA as of the date of its cessation is falling under this implementing regulation, and under the scope of the statutory replacement measure.

(9)

Along with the announcement, on 31 May 2019, of the cessation of the publication of EONIA as of 3 January 2022, EMMI announced changes to the methodology of EONIA to ensure continued compliance with Regulation (EU) 2016/1011 and to ensure a smooth transition until final discontinuation of EONIA. Those changes apply to the EONIA methodology since 2 October 2019, and directly link the EONIA calculation to the development of €STR, by stating that EONIA is equal to €STR plus a fixed spread adjustment based on the spread calculated by the ECB. The addition of a fixed spread adjustment limits the economic impact of designating €STR as the statutory replacement for EONIA in all contracts that mature beyond the EONIA end date of 3 January 2022.

(10)

The formal letter from the Working group on euro risk-free rate dated 15 July 2021 specifically requested that the statutory replacement of EONIA be based on €STR, plus the existing fixed spread adjustment between EONIA and €STR, thus avoiding value transfer in the transition. It is appropriate that the statutory replacement for EONIA reflects recommendations from the risk-free rate working group concerned, and therefore be based on €STR plus the fixed spread adjustment calculated by the ECB.

(11)

A replacement for EONIA replaces, by operation of law, all references to that benchmark in any contract, and in any financial instrument as defined in Directive 2014/65/EU not containing fall-back provisions or suitable fall-back provisions, pursuant to Article 23b(3) of Regulation (EU) 2016/1011. That replacement does therefore not affect contracts that have been successfully renegotiated to cater for the cessation of EONIA, as provided for under Article 23b(11) of Regulation (EU) 2016/1011.

(12)

Considering that EONIA will cease to be published on 3 January 2022, the designated replacement rate should replace references to EONIA from that date.

(13)

The FSMA, as supervisor of the EONIA administrator, and the ECB, as central bank responsible for the currency area of EONIA, provided their views on this Regulation.

(14)

The measures provided for in this Regulation are in accordance with the opinion of the European Securities Committee,

(1)

The German, Maltese and Spanish language versions of Commission Implementing Regulation (EU) 2020/464 (2) contain errors in Article 26(1) to (7), since those language versions refer to the date of entry into force instead of the date of application of that Implementing Regulation.

(2)

The German, Maltese and Spanish language versions of Implementing Regulation (EU) 2020/464 should therefore be corrected accordingly. The other language versions are not affected.

(3)

The measures provided for in this Regulation are in accordance with the opinion of the Committee on Organic Production,

(1)

African swine fever is an infectious viral disease affecting kept and wild porcine animals and can have a severe impact on the concerned animal population and the profitability of farming causing disturbance to movements of consignments of those animals and products thereof within the Union and exports to third countries.

(2)

Commission Implementing Regulation (EU) 2021/605 (2) was adopted within the framework of Regulation (EU) 2016/429, and it lays down special disease control measures regarding African swine fever to be applied for a limited period of time by the Member States listed in Annex I thereto (the Member States concerned), in restricted zones I, II and III listed in that Annex.

(3)

The areas listed as restricted zones I, II and III in Annex I to Implementing Regulation (EU) 2021/605 are based on the epidemiological situation of African swine fever in the Union. Annex I to Implementing Regulation (EU) 2021/605 was last amended by Commission Implementing Regulation (EU) 2021/1794 (3) following changes in the epidemiological situation as regards that disease in Bulgaria, Poland, and Slovakia.

(4)

Any amendments to restricted zones I, II and III in Annex I to Implementing Regulation (EU) 2021/605 should be based on the epidemiological situation as regards African swine fever in the areas affected by that disease and the overall epidemiological situation of African swine fever in the Member State concerned, the level of risk for the further spread of that disease, as well as scientifically based principles and criteria for geographically defining zoning due to African swine fever and the Union’s guidelines agreed with the Member States at the Standing Committee on Plants, Animals, Food and Feed and publicly available on Commission’s website (4). Such amendments should also take account of international standards, such as the Terrestrial Animal Health Code (5) of the World Organisation for Animal Health and justifications for zoning provided by the competent authorities of the Member States concerned.

(5)

Since the date of adoption of Implementing Regulation (EU) 2021/1794, there have been new outbreaks of African swine fever in wild porcine animals in certain zones of Germany and Poland, as well as in kept porcine animals in Poland. In addition, the epidemiological situation in certain zones listed as restricted zones III in Germany, Lithuania and Poland has improved as regard kept porcine animals, due to the disease control measures being applied by those Member States in accordance with Union legislation.

(6)

In October 2021, one outbreak of African swine fever in a wild porcine animal was observed in the Dolnośląskie region in Poland in an area currently listed as restricted zone I in Annex I to Implementing Regulation (EU) 2021/605. This new outbreak of African swine fever in a wild porcine animal constitutes an increased level of risk, which should be reflected in that Annex. Accordingly, this area of Poland currently listed as restricted zone I in that Annex, affected by this recent outbreak of African swine fever, should now be listed as restricted zone II in that Annex instead of as restricted zone I thereof and the current boundaries of restricted zone I also need to be redefined to take account of this recent outbreak.

(7)

Also, in October 2021, one outbreak of African swine fever in kept porcine animals was observed in the Świętokrzyskie region in Poland in an area currently listed as restricted zone I in Annex I to Implementing Regulation (EU) 2021/605. This new outbreak of African swine fever in kept porcine animals constitutes an increased level of risk, which should be reflected in that Annex. Accordingly, this area of Poland currently listed as restricted zone I in that Annex, affected by this recent outbreak of African swine fever, should now be listed as restricted zone III in that Annex instead of as restricted zone I thereof and the current boundaries of restricted zone I also need to be redefined to take account of this recent outbreak.

(8)

In addition, in October 2021, one outbreak of African swine fever in a wild porcine animal was observed in the state of Saxony of Germany in an area currently not listed in Annex I to Implementing Regulation (EU) 2021/605. This new outbreak of African swine fever in a wild porcine animal constitutes an increased level of risk, which should be reflected in that Annex. Accordingly, this area of Germany currently not listed in that Annex affected by this recent outbreak of African swine fever, should now be listed as restricted zone II in that Annex.

(9)

Following those recent outbreaks of African swine fever in wild porcine animals in Poland and Germany, as well as in domestic pigs in Poland taking into account the current epidemiological situation as regards African swine fever in the Union, zoning in those Member State has been reassessed and updated. In addition, the risk management measures in place have also been reassessed and updated. These changes should be reflected in Annex I to Implementing Regulation (EU) 2021/605.

(10)

Additionally, taking into account the effectiveness of the disease control measures for African swine fever for kept porcine animals in the restricted zones III listed in Annex I to Implementing Regulation (EU) 2021/605 being applied in Germany in accordance with Commission Delegated Regulation (EU) 2020/687, and in particular those laid down in Articles 22, 25 and 40 thereof, and in line with the risk mitigation measures for African swine fever set out in the OIE Code, certain zones in the state of Brandenburg of Germany, currently listed as restricted zones III in Annex I to Implementing Regulation (EU) 2021/605 should now be listed as restricted zones II in that Annex, due to the absence of African swine fever outbreaks in kept porcine animals in those restricted zones III for the past three months. The restricted zones III should now be listed as restricted zones II taking account of the current African swine fever epidemiological situation.

(11)

Further, taking into account the effectiveness of the disease control measures for African swine fever for kept porcine animals in the restricted zones III listed in Annex I to Implementing Regulation (EU) 2021/605 being applied in Lithuania in accordance with Commission Delegated Regulation (EU) 2020/687, and in particular those laid down in Articles 22, 25 and 40 thereof, and in line with the risk mitigation measures for African swine fever set out in the OIE Code, certain zones in the Jurbarko, Kauno, Kėdainių, Plungės, Raseinių and Skuodo district municipalities in Lithuania, currently listed as restricted zones III in Annex I to Implementing Regulation (EU) 2021/605 should now be listed as restricted zones II in that Annex, due to the absence of African swine fever outbreaks in kept porcine animals in those restricted zones III for the past twelve months. The restricted zones III should now be listed as restricted zones II taking account of the current African swine fever epidemiological situation.

(12)

In addition, taking into account the effectiveness of the disease control measures for African swine fever for kept porcine animals in the restricted zones III listed in Annex I to Implementing Regulation (EU) 2021/605 being applied in Poland in accordance with Commission Delegated Regulation (EU) 2020/687, and in particular those laid down in Articles 22, 25 and 40 thereof, and in line with the risk mitigation measures for African swine fever set out in the OIE Code, certain zones in the Warmińsko – Mazurskie, Mazowieckie, Świętokrzyskie, Lubelskie, Wielkopolskie regions in Poland, currently listed as restricted zones III in Annex I to Implementing Regulation (EU) 2021/605 should now be listed as restricted zones II in that Annex, due to the absence of African swine fever outbreaks in kept porcine animals in those restricted zones III for the past twelve months. The restricted zones III should now be listed as restricted zones II taking account of the current African swine fever epidemiological situation.

(13)

Also, taking into account the effectiveness of the disease control measures for African swine fever for kept porcine animals in the restricted zones III listed in Annex I to Implementing Regulation (EU) 2021/605 being applied in Poland in accordance with Commission Delegated Regulation (EU) 2020/687, and in particular those laid down in Articles 22, 25 and 40 thereof, and in line with the risk mitigation measures for African swine fever set out in the OIE Code, certain zones in the Lódzkie and Opolskie regions in Poland, currently listed as restricted zones III in Annex I to Implementing Regulation (EU) 2021/605 should now be listed as restricted zones I in that Annex, due to the absence of African swine fever outbreaks in kept and wild porcine animals in those restricted zones III for the past three months.

(14)

In order to take account of the recent developments in the epidemiological situation of African swine fever in the Union, and in order to combat the risks associated with the spread of that disease in a proactive manner, new restricted zones of a sufficient size should be demarcated for Germany, Lithuania and Poland and duly listed as restricted zones I, II and III in Annex I to Implementing Regulation (EU) 2021/605. As the situation as regards African swine fever is very dynamic in the Union, when demarcating those new restricted zones, account has been taken of the situation in the surrounding areas.

(15)

Given the urgency of the epidemiological situation in the Union as regards the spread of African swine fever, it is important that the amendments to be made to Annex I to Implementing Regulation (EU) 2021/605 by this Implementing Regulation take effect as soon as possible.

(16)

The measures provided for in this Regulation are in accordance with the opinion of the Standing Committee on Plants, Animals, Food and Feed,