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Dear Readers,
It is 29 years now since Bill Clinton used a phrase that was to smooth his path to the White House: “It’s the economy, stupid!” was the mantra he used against the incumbent George Bush.
For many, “economy” has now been replaced by “climate change” as the overriding issue of the day.
On 14 July, Europe will look to Brussels when the EU climate package will be on the agenda. The Centrum für Europäische Politik will be paying close attention to whether the planned measures are in line with ordoliberal principles.
The July newsletter from the Freiburg-based think-tank will also focus on first steps towards the digital Euro, updated rules on outsourcing company data storage to third countries, and the green taxonomy.
Interested?
Then I wish you an enjoyable read.
Best wishes
Dr. Jörg Köpke
Head of Communications
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On July 14, the EU Commission will publish its "Fit for 55" package. It is intended to align the EU's climate and energy policy with the more stringent EU climate target of a 55 percent reduction in CO2 by 2030 compared with 1990. Among other things, the package includes an extension of EU emissions trading to international maritime transport, CO2 limits for passenger cars, renewable energies, sustainable fuels for air and maritime transport, energy efficiency, and the CO2 border adjustment mechanism (CBAM).
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Latest EU Proposals in Focus of the cep
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“Fit-for-55”: Tightening the law on Climate and Energy
Now that the EU has raised its climate target for CO2 reduction to 55 percent by 2030, as compared with 1990 levels, large portions of European law on climate and energy need to be tightened. On 14 July, therefore, the EU Commission will publish numerous legislative proposals (“Fit-for-55” Package). In addition to changes to the Energy Efficiency Directive [2012/27/EU] and the Renewable Energy Directive [(EU) 2018/2001], it is also likely to propose expanding the EU Emissions Trading System [Directive 2003/87/EC] to cover international maritime transport [cepInput 08-2021]. The expected tightening of CO2 limits for cars [Regulation (EU) 2019/631] could herald the end of the combustion engine. The planned CO2 border adjustment mechanism is also likely to spark fierce controversy. It aims to remove competitive disadvantages to the European economy arising from the cost of EU climate policy and thereby prevent production from migrating, along with the associated carbon emissions.
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EU Forest Strategy: Protection and Sustainable Management
On 20 July, the EU Commission will publish an EU Forest Strategy setting out future initiatives and legislative proposals to ensure the protection and sustainable management of forests. The EU Forest Strategy, which is based on the EU Biodiversity Strategy [cepPolicyBrief 2020], will protect the biodiversity of forests and contribute to achieving EU climate targets [cepPolicyBrief No. 2020-03].
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New Standard Contractual Clauses: Transferring Data to Third Countries
On 4 June, the EU Commission adopted the final version of the new standard contractual clauses for transferring personal data to third countries. The new clauses will in future cover all the usual transfer scenarios and compared to previous versions, will contain extended obligations for protection against access to data by public authorities in third countries. Data exporters, who have already integrated a previous version of the standard contractual clauses into their contracts, must adapt these contracts by no later than 27 December 2022 and replace the old clauses with new ones.
On 18 June, the European Data Protection Board (EDPB) adopted the final version of its recommendations on supplementary measures for the transfer of personal data to third countries. The EDPB’s proposals contain guidance for companies intending to transfer data to third countries with a lower level of data protection and wanting to rely on one of the transfer tools, such as standard contractual clauses, specified in Art. 46 General Data Protection Regulation. Following the CJEU’s Schrems-II judgement, data exporters using standard contractual clauses must assess the level of protection in the third country and, where appropriate, take supplementary measures to protect the data transferred because the clauses do not bind the authorities in third countries and on their own cannot therefore offer adequate protection in certain cases [cepStudy]. The guidance contains inter alia advice on assessing the level of protection and lists possible additional measures - including technical measures such as the encryption or pseudonymisation of data. The recommendations also demonstrate the limits of such measures.
In the coming weeks, data protection experts, companies and lawyers will discuss in detail which changes the new clauses and the amended recommendations entail and to what extent they offer a perspective for critical data transfers to the USA.
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Corona Crisis: Commission Draws Early Lessons
The Commission has submitted a report on the lessons learned from the Corona pandemic in which it draws its initial conclusions. Above all, it wants to push through more public-private partnerships for critical medical equipment and medicines and enable faster and more effective clinical research by means of a pan-European platform for multi-centre clinical trials.
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Joint Clinical Assessment: Council and Parliament Achieve Initial Agreement on HTAs
An agreement has been reached in the negotiations for a Regulation on joint clinical assessments of health technologies (HTA Regulation). In future, developers of health technologies should only have to submit information, data and other evidence required for the joint clinical assessment, once at EU-level.
However, the compromise found still has to be approved by both the Council and the Parliament after the summer break before the HTA Regulation can enter into force.
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Sustainability I: EU Green Bond Standard
On 6 July 2021, the EU Commission is to publish a proposal for a Regulation establishing an EU green bond standard. Companies and governments that issue green bonds under the new standard will be obliged to use the revenue for business activities that are environmentally friendly. The activities deemed to be environmentally friendly are defined by way of a classification system for sustainable activities (green taxonomy) which the EU Commission is currently developing (see cepAdhoc). Issuers of green bonds will not be obliged to use the new EU standard, however, and can continue to apply other standards. The new EU standard for green bonds is to be available for use in 2022. cep has already looked at the initial ideas for establishing an EU green bond standard in a cepInput 03-2019.
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Sustainability II: EU Strategy for Sustainable Financing
On 6 July 2021, the Commission publishes a new strategy for sustainable financing. Having already passed a green taxonomy for sustainable business activities in 2020 (see cepAdhoc), the Commission now wants, in particular, to look at developing a social taxonomy. In addition to the EU green bond standard (see above), it is also planning to introduce further labels and standards for other finance products. Moreover, the reporting obligations for financial market stakeholders are to be further tightened and the Commission also wants to make it mandatory for Environment, Social and Governance (ESG) risks to be included in credit ratings. In a consultation, which ran until mid-2020, the Commission already presented ideas for its new strategy on sustainable financing. The cep assessed this strategy in a cepInput 23-2020.
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ECB: First Steps Towards the Digital Euro
At its meeting in mid-July, the European Central Bank (ECB) intends to announce whether it will take the next steps towards introduction of a digital euro. ECB President, Christine Lagarde, recently announced that the Governing Council of the ECB is likely to recommend an “exploratory phase covering many aspects from technology and privacy right through to inclusion”. A final decision on the introduction of a digital euro is unlikely to be made at the meeting, but irrespective of that, implementation of the digital euro is expected to take at least four to five years.
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The EU Commission regularly asks stakeholders and interested parties from civil society for their opinion. Here is our short-list of the most important consultations:
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Environmental Protection: Update of the Urban Waste-water Directive
The Urban Waste-water Directive [91/271/EEC] regulates the collection and purification of waste-water from residential areas with at least 2000 residents. The Directive was last amended in 2013 so it will now be brought into line with new scientific findings and technical developments. In its consultation, the Commission wants to hear the views and experiences of citizens and stakeholders as to what changes should be made.
The submission period for opinions ends on 21 July 2021.
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New Data Law: EU Commission is Regulating how Data is Handled
In the 3rd or 4th quarter 2021, the EU Commission is aiming to submit a proposal for a data law. The Commission wants, in particular, to facilitate the sharing of personal and non-personal data between private businesses and public authorities (B2G data use). In addition, the Commission is planning new rules aimed at making it easier for start-ups and small and medium-sized companies to access and use data. The Commission also wants to revise the Directive on the legal protection of data bases [96/9/EC]. With the consultation, the Commission is aiming to gather opinions on its ideas for the data law.
The submission period for opinions ends on 3 September 2021.
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Financial Services: EU Commission Wants to Revise the Directive on Distance Marketing
The Commission wants to expand the 2002 consumer protection rules relating to distance marketing – e.g. by phone or online – by financial services providers [Directive 2002/65/EC] so as to include the new products, market players and sales channels that are now available. It is using the consultation to obtain opinions in this regard.
The submission period for opinions ends on 28 September 2021.
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Health Data: EU Wants to Create a European Health Data Space
As announced in the Pharmaceutical Strategy (see PolicyBrief of the Centre for European Policy Network), the EU wants to create a European Health Data Space. The Commission wants, in particular, to promote the secure exchange of health data, enable access to health data and its use for research, policy design and regulation and clarify issues of security and liability relating to artificial intelligence in the healthcare sector. The aim of the consultation is to gather the opinions of all stakeholders regarding problems of implementation and application and the causes thereof, as well as regarding possible solutions and their impacts.
The submission period for opinions ends on 26 July 2021.
Cross-border Healthcare: EU Commission Wants to Remove Barriers
The EU wants to revise the Patients Mobility Directive [2011/24/EU] which regulates patient access to healthcare in another EU country, and the cooperation between national health service providers. The aim of the consultation is to identify barriers confronting patients, health authorities and other stakeholders. The Commission particularly wants to know whether patients still face obstacles when it comes to accessing healthcare in another EU country and when asserting their rights to the reimbursement of costs under the Directive.
The submission period for opinions ends on 27 July 2021.
Medicines for Children and Rare Diseases: EU Wants to Improve Patient Access
EU legislation on medicines for children and rare diseases [Regulation 1901/2006/EC and Regulation 141/2000/EC] will, as announced in the Medicines Strategy (see PolicyBrief from the Centres for European Policy Network), be updated and the current shortcomings addressed. The Commission wants to encourage, firstly, the development of products which address the particular requirements of children and of patients with rare diseases, secondly that this group gain prompt access to medicines and, thirdly, that the relevant evaluation and approval processes become more efficient. The aim of the consultation is to obtain the views of all stakeholders regarding the advantages and disadvantages of the various possible changes to the laws.
The submission period for opinions ends on 30 July 2021.
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6 July 2021
EU Commission
Publication of the proposal for a Regulation on an EU green bond standard
Publication of the Communication on a new EU Sustainable Financing Strategy
7 July 2021
European Parliament
Debate in plenary on the expansion of the competences of the European Medicines Agency (EMA)
7 - 10 July 2021
G20 Meeting of the Finance Ministers and Central Bank Governors
12 July 2021
Eurogroup
13 July 2021
Council Economic and Financial Affairs
14 July 2021
EU Commission
Publication of legislative proposals for the “Fit-for-55” package on climate change
20 July 2021
EU Commission
Publication of the EU Forest Strategy
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Network and Information Security
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Cyber attacks increasingly threaten the security of companies in the European Union, in particular, energy suppliers, oil pipelines and hospitals. The EU Commission therefore wants to improve the level of cyber security, especially for critical infrastructures, and tighten reporting requirements.
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New Competences for the European Medicine Agency
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The COVID pandemic has led to shortages of critical medicines and medical devices in the European Union. For this reason, the EU Commission wants to reduce deficits in the exchange between the EU Medicines Agency (EMA) and the Member States as well as companies and to strengthen the EMA's competences.
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Digital Operational Resilience for Financial Entities
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Cyberattacks increasingly threaten financial institutions in the European Union. The EU Commission therefore wants to foster the stability and security of the European financial sector and its financial institutions such as banks, insurance undertakings or trading venues by means of a new Regulation.
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The European Union wants to strengthen consumer rights across borders by 2025. This includes a reform of the Package Travel Directive as part of a new EU consumer agenda.
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A selection from among the 40 press reports on the work of the Centrum für Europäische Politik that appeared in June 2021.
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“Economist Vöpel Leaves the HWWI: Move to Berlin”
More than 30 national media, including ZEIT online in addition to Süddeutsche Zeitung and Handelsblatt, reported on Professor Henning Vöpel's move from the Hamburg Institute of International Economics (HWWI) to the Center for European Policy. The 48-year-old will coordinate the expansion of activities there as director in Berlin.
ZEIT Online of 28 June 2021
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“The Eurozone Should Agree on a new Stability and Growth Pact”
In an interview with the French business journal, l’Opinion, cep Division Head Dr. Matthias Kullas talked about the Stability and Growth Pact (SGP). In mid-June, the Commission decided it was going to suspend the SGP until the end of 2022. Kullas warned against any reintroduction without reforms and explained why the debt burden of many Member States poses such major risks.
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“Why the EU Will Remain a Lame Duck”
In a guest article for the Badische Zeitung, cep President Professor Lüder Gerken criticised the ineffectiveness of EU foreign policy. The principle of unanimity was hindering and slowing down the development of a more long-term strategy. Foreign powers may even exploit this in order to play the interests of Member States off against each other.
Badische Zeitung of 19 June 2021
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“Criticism of EU Plans to Combat Cyber Attacks”
The Börsen-Zeitung reported on criticism in a cepPolicyBrief of the planned EU measures to combat cyber attacks in the financial sector. cep expert Philipp Eckhardt labelled as questionable the plan to share supervisory responsibilities between three EU agencies, the EBA, ESMA and EIOPA. Providers of information and communication technology, such as cloud providers, could be faced with contradictory supervisory approaches.
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Dear readers,
I hope you found something interesting for yourself in this July newsletter. As the Greek philosopher Socrates said, "Focus your energy not on fighting the old, but on creating the new."
With this in mind, we look forward to the upcoming newsletter in the month of August. Your suggestions are most welcome.
Sincerely,
Dr. Jörg Köpke
Head of Communications
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