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Dear Readers,
the Centrum für Europäische Politik (cep) is looking ahead. We have given our monthly Newsletter a makeover. In future each month we will be showing you which subjects the specialist departments are focusing on and what important dates and consultations will be in the spotlight at European level in the forthcoming month.
We are eager to hear your reactions and look forward to your suggestions on the new format.
The June edition of the new Newsletter looks at stricter EU climate targets, the fight against foreign subsidies, regulating artificial intelligence, the availability of COVID medicines and new obligations for financial advisers.
And, of course, we will take the opportunity to look back at cep’s work over the last four weeks.
Interested? Then I wish you an enjoyable read.
Best wishes
Dr. Jörg Köpke
Head of Communication
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On 14 June, US President Joe Biden is expected in Brussels for the first official talks with the European Union and Nato. According to the White House, the top-level meeting with the EU will focus on the fight against the Corona pandemic, reviving the global economy, combating climate change, strengthening democracy and common foreign policy concerns.
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New EU Legislative Proposals in the Focus of the cep
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European Climate Law: Stricter EU climate targets
The EU Parliament and Member States have reached agreement on the first “European Climate Law” [see cepPolicyBrief 2020-03] that will form the basis for the EU’s entire climate and energy policy in the future. In order to bring carbon emissions down to net zero (climate neutrality) by 2050, the current EU climate target for CO2 reduction by 2030 will be increased from 40 percent to 55 percent, as compared with 1990 levels. To achieve the new EU climate targets, many EU laws - such as those on EU emissions trading and energy efficiency - must now be tightened up. The Commission wants to publish its proposals on this in mid-July. Council Press Release of 5 May 2021
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Environmental Protection: Zero Pollution Action Plan
The Commission is pursuing the aim of reducing pollution in the EU by 2050 to levels that are no longer harmful to human health and natural ecosystems. The Commission has now set out its plans for concrete measures on this in its Action Plan “Towards Zero Pollution for Air, Water and Soil” [ COM(2021)400]. This indicates that numerous EU laws will be reviewed and, where appropriate, amended, over the next few years. Thus the Air Quality Directive [ 2008/50/EC] will take account of the recommendations of the World Health Organisation, the Industrial Emissions Directive [ 2010/75/EU] will also be aimed at CO2 reduction and all EU waste legislation will comply with the principles of a circular economy [see cepPolicyBrief 2020-05]. Commission Press Release of 12 May 2021
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Internal Market | Competition
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Actions on foreign subsidies
On 5 May, the EU Commission submitted a proposal for a Regulation to tackle foreign subsidies. It wants to combat market distortions which arise where companies operating on the internal market receive subsidies from third countries. The Commission is specifically proposing three instruments:
- one to assess mergers;
- one to assess tenders in public procurement proceedings and
- one to assess all other market situations.
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Regulation on artificial intelligence
On 21 April, the EU Commission submitted its proposal for a Regulation on artificial intelligence (AI). Certain AI applications, regarded as particularly dangerous, are to be banned. High-risk systems, such as AI systems used in autonomous vehicles, are only to be permitted for use following a conformity assessment. In addition, the proposal regulates the requirements to be met by data that is used to train high-risk AI systems. Website on the proposal for a Regulation
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Funding programmes: New EU agency to manage over € 20 billion for health
The EU Health and Digital Executive Agency (HaDEA), set up in February, is starting its operations. It will administer various EU funding programmes such as EU4Health (€ 5.1 billion), the part of Horizon Europe allocated to the health sector (€ 5.4 billion) and the part of the Single Market Programme allocated to food safety (€ 1.3 billion). The Directorate General for Health is the lead DG. Website of New EU Agency HaDEA
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Support the development and availability of COVID-19 medicines
The Commission has put forward a strategy to support the authorisation of new therapeutics to treat COVID-19. Most importantly, so-called matchmaking events, for industry actors working on such drugs, are to ensure sufficient production capacity and speedy manufacturing. At the same time, the Commission is expecting up to five therapeutics to be authorised this year and also wants to conclude further joint procurement contracts. Communication from the Commission on an EU Strategy on COVID-19 Therapeutics of 6 May 2021
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Sustainability II: New reporting obligations for numerous companies
On 21 April 2021, the Commission submitted a proposal for a Directive on sustainability reporting. This states that, in future, approx. 49,000 EU companies will have to include information on sustainability in their management reports, a huge increase on the current figure (approx. 11,700 EU companies). The EU companies subject to the reporting obligations must, at the same time, meet uniform EU reporting standards. In addition, the submitted sustainability information must undergo external auditing by auditors, audit firms or independent assurance services providers. Website on the proposal for a Directive of 21 April 2021
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The EU Commission invites comments from decision-makers and interested parties in civil society on the following policy proposals:
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Energy | Environment | Climat | Transport
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Ecodesign of sustainable products
Under the Ecodesign Directive [ 2009/125/EC; see cepPolicyBrief (German)] sustainability requirements for certain products can be established in order to increase their energy efficiency and reduce their consumption of other resources such as water. The Commission now wants to extend the scope of the Directive beyond products that are “relevant for energy consumption” in order to lay down sustainability requirements for as many products and, where appropriate, services as possible. The Commission's consultation seeks the views of citizens and stakeholders on sustainability requirements for products and the need to amend the Ecodesign Directive.
The deadline for submission of comments is on 9 June 2021. Renewable and low-carbon gases
EU legislation on the internal gas market [ Directive 2009/73/EC and Regulation (EC) No. 715/2009; see cepInput 06/2019] is to be amended in order to allow market entry to providers of renewable and low-carbon gas. The aim of the consultation is to gather stakeholders' views on how the EU rules on the internal gas market should be revised to promote the use of renewable and low-carbon gases.
The deadline for submission of comments is on 18 June 2021.
Energy efficiency of buildings
The EU rules on the energy efficiency of buildings [ Directive 2018/844/EU; see cepPolicyBrief 2017-06] will be revised in order to encourage energy-saving building renovations [ Communication COM(2020) 662 “Renovation Wave”; see cepPolicyBrief 2021-04]. The Commission's consultation seeks the views of citizens and stakeholders on what changes should be made to the Energy Performance of Buildings Directive.
The deadline for submission of comments is on 22 June 2021.
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Internal Market | Competition | Digital Economy
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Intellectual Property
Assessment of the EU rules on industrial designs – in order to update the Design Directive [ (EC) 98/71] and the Design Regulation [ (EC) 6/2002]. The Commission is considering extending, inter alia, the legal protection of designs to include spare parts and non-visual characteristics - e.g. sound designs such as jingles. The aim of the consultation is to obtain stakeholders' views on this.
The deadline for submission of comments is on 22 July 2021.
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Tobacco tax
The EU regulations on consumer taxes on tobacco products [ Directive 2011/64/EU] are to be revised to update existing provisions as announced in the EU’s Beating Cancer Plan. The Commission considers tax on tobacco to be the most cost-effective instrument for reducing the consumption and prevalence of tobacco. In addition to taxation, illegal trade and environmental concerns will also be addressed. The consultation aims to gather stakeholders' views on minimum tax rates; on new tobacco products (e.g. e-cigarettes) that fall outside the scope of the Directive; and on the risk of illicit manufacturing of cigarettes within the EU.
The deadline for submission of comments is on 22 June 2021.
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New look for cepQuarterlyLetter: Interview with former Constitutional Court judge, Udo Di Fabio
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Every three months, the cepQuarterlyLetter lifts the lid on the work of Freiburg-based think tank, Centrum für Europäische Politik (cep). For the first time, this publication will be featuring exclusive interviews, starting with Udo Di Fabio. The cep-Trustee and former Constitutional Court judge assesses Germany’s Covid circuit-breaker, warns against the dangers of a transfer union and criticises the new Federal Law for the Protection of the Constitution.
(Publication in German Language) cepQuarterlyLetter 2021-02 |
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The European Union wants to reduce CO2 emissions to zero by 2050. The transport sector shall also make a greater contribution to this. With its "Sustainable Mobility Strategy", the EU Commission is counting on a further tightening of CO2 limits for passenger cars, vans and trucks. For the first time, the EU Commission is also considering the use of an emissions trading scheme (ETS) for road transport.
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Parallel trade in pharmaceuticals and associated problems in the EU
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The parallel trade in pharmaceuticals gives rise to problems in the EU internal market. Traders from Member States with high price levels buy medicines in low-price Member States in order to resell them more cheaply in their land of origin thereby gaining a competitive advantage. The Centrum für Europäische Politik (cep) examines this problem and proposes solutions.
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EU Measures Against Foreign Subsidies
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The EU Commission wants to check companies from third countries more strictly for prohibited state aid. The focus is especially on China. On 05 May 2021 the EU Commission presented a new regulation. The Centre for European Policy calls on Brussels to act uniformly.
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A selection from the more than 80 reports on the work of the Centre for European Policy in May 2021.
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“Dispute over cloud use in USA – business calls for help from Federal Government"
A ground-breaking study by cep-lawyer Anja Hoffman formed the basis for a detailed report in the Handelsblatt. Anja Hoffmann had warned of risks running into the millions for German companies if they continue to store their data in the USA despite a ruling by the CJEU. The study unleashed a national debate in the German business community.
Handelsblatt, 3 May 2021 Read more
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“How medicines can be fairly distributed in Europe"
The Hamburger Abendblatt takes up a Policy Brief by cep health experts Nathalja Nolen and Stephan Balling on the parallel trade in medicines. In some EU countries, such as Denmark, at least a quarter of medicines being traded are pharmaceuticals that have been bought more cheaply in other EU Member States causing a shortage in those countries. The cep experts have come up with alternatives to solve the problem.
Hamburger Abendblatt, 10 May 2021 Read more
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“Why cryptocurrencies such as Bitcoin are climate killers"
The Westdeutsche Allgemeine devotes an in-depth article to the high consumption of fossil fuels caused by mining for so-called cryptocurrencies such as Bitcoin. cep-President, Lüder Gerken, warns against the dangers of this development and, in view of the environmentally harmful processes involved, calls for global emissions trading.
Westdeutsche Allgemeine Zeitung, 18 May 2021 Read more
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"Mixed balance of an unequal duo"
Julien Thorel, Director of the Centre de Politique Européenne in Paris, spoke on the Tagesschau about Franco-German relations and the relationship between outgoing Chancellor Angela Merkel and French President Emmanuel Macron. The occasion was the last bilateral ministerial meeting with Merkel's participation. Thorel attributed symbolic significance to the Treaty of Aachen. "In retrospect, it was also a kind of compensation for the German government's lack of response to Macron's proposals on deepening the EU and the Eurozone," Thorel explained.
Tagesschau of 31 May 2021 Read more
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"We will use all the channels at our disposal to achieve this."
German Chancellor Angela Merkel on the EU's efforts to secure the release of detained Belarus oppositionist Roman Protashevich.
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"Major greenhouse gas emitters such as the USA, China and the EU should work together to achieve a global harmonisation of carbon pricing, for example by way of global emissions trading. This will then also apply automatically to cryptocurrency mining.”
cep President Prof. Dr. Lüder Gerken in the Funke Media Group newspapers.
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