The European Commission, the European Central Bank, as well as the European Banking Authority and the European Securities and Markets Authority have issued a joint statement on Libor transition.

THE STATEMENT CAN BE FOUND HERE

The authorities urge market participants to accelerate their transition efforts and reduce their exposures to all LIBOR settings and currencies to the best extent possible by 31 December 2021 – in particular by not using any Libor settings as references in new contracts anymore.

The authorities also highlight that any synthetic rates or statutory fallback rates should only be used when absolutely necessary for tough to transition contracts, rather than relying on such rates as solutions to Libor transition.