| | Dear Readers,
The US election in November next year is probably currently the biggest "elephant in the room". A re-election of Donald Trump would once again upend the global situation - as complicated as it already is - with far-reaching consequences for Europe. The current President, Joe Biden, has by no means made a complete break with the policies of his predecessor, at least not in the all-important area of trade policy; on the contrary, with the Inflation Reduction Act, he has seamlessly continued it. And yet Biden could be seen as perhaps the last transatlanticist on the other side of the Atlantic. Probably no other US president but him would have agreed to Olaf Scholz's request to deliver Abrams tanks to Ukraine.
What will happen if Donald Trump does actually become US president again? The focus of US security policy has shifted from Europe to the Asia-Pacific region. Under Trump, continued US military support for Ukraine would be anything but certain. Is the EU really prepared for this? Not just doubt but also major concern is the order of the day. Europe has failed to make good use of the grace period bestowed upon it by Trump’s ousting in the last election.
What has the EU been doing instead? Passing law after law: Supply Chain Due Diligence Act, Ecodesign Directive, the Green Taxonomy. A regulatory tsunami is sweeping across the economy, or more accurately, a "bureaucracy burnout". In fact, exhaustion is gradually spreading through companies and they are reaching their limit. If politics succeeds in stifling all entrepreneurial activity, the future will be difficult. And yet more optimism is so urgently needed right now.
Yours
Prof. Henning Vöpel |
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| | | | Latest EU Proposals in Focus |
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| | | | Work Programme: Commission to Present its Plans for 2024 On 17 October, the Commission will present its work programme for 2024. In her State of the EU address on 13 September, the Commission President announced a number of projects for the European election year, but did not set a date. These will include establishing climate targets for 2040, a water resilience initiative, an EU Space Law, a strategy for the space data economy, an initiative to open up European supercomputing capacity to AI start-ups, an EU biotechnology and organic production initiative, and an initiative on joint European university degrees. In its work programme, the Commission will specify when which project can be expected in 2024. Reporting Obligations: Commission Wants to Reduce Burden by 25% In October, the Commission will present proposals to streamline reporting obligations. These are to be reduced by a total of 25%. The aim is to strengthen the competitiveness of all EU companies, but especially small and medium-sized enterprises (SMEs). At the same time, the political objectives behind the reporting obligations should not be undermined. Among other things, the Commission wants to establish an electronic format (e-declaration) for the posting of workers declaration; this is to enable employers in all participating Member States to use a streamlined declaration in a uniform format and in their own language, use a delegated act to adapt the thresholds for determining the size categories of companies in the Accounting Directive [(EU) 2013/34] in order to take account of the effects of inflation (see also section on Consultations), postpone the submission of sector-specific sustainability reporting standards until 2026; under the Sustainability Reporting Directive [(EU) 2022/2464, see cepAdhoc], their submission is currently scheduled for 2024, and consolidate and reduce the reporting obligations contained in EU rules on alternative dispute resolution for consumer cases [see Directive 2013/11/EU]. |
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| | | | | | | | Mental Health: Parliament Calls for Improvements in EU Strategy In June this year, the Commission presented a comprehensive approach to mental health, particularly in light of the various crises, such as the pandemic and the war in Ukraine. This is not limited to a specific policy area or age group, but generally aims to improve prevention, access to treatment and care. The aim is to train medical staff in a more targeted way and, above all, establish a better database to enable appropriate, evidence-based policies. Parliament has welcomed the Commission's proposal in principle, but is calling for even more far-reaching measures. In a separate report, it calls, among other things, for more extensive funding aimed at improving mental health. There is already a lot of interest in this issue in Parliament, as more than 500 amendments have already been tabled. |
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| | | | | | | | Renewable energy: Accelerated expansion of wind power On 24 October, the Commission will publish a package of measures on the accelerated expansion of wind power. Commission President Ursula von der Leyen announced in mid-September in her State of the European Union address that this would further speed up permit procedures for wind turbines, improve auction systems for the allocation of generation capacity, facilitate investor access to finance and stabilise supply chains for the necessary construction materials. |
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| | | | | | | | The Commission, the Council and the European Parliament regularly negotiate in the so-called trilogue on EU legislative proposals in order to find a common position. We have put together a summary of the most important trilogue decisions since the last Newsletter. |
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| | | | Trilogue Agreement to Empower Consumers for the Green Transition and to Prevent “Greenwashing” On 19 September, a provisional political agreement was reached on a new Directive "to empower consumers for the green transition" (see cepDossier 4/2022). The Commission believes that consumers cannot make informed, environmentally sustainable purchasing decisions due to a lack of product information and misleading business practices regarding the sustainability of products. Therefore, the Directive aims to combat unfair commercial practices that prevent consumers from choosing environmentally friendly products and services In future, for example, misleading advertising claims about alleged environmental or climate friendliness ("greenwashing") will be banned, measures will be taken to combat the deliberate shortening of the usability of products ("early obsolescence") and the liability of companies will be clarified. Furthermore, a new EU label is to be introduced, containing information on the commercial guarantee of durability provided by producers. It will also contain information on whether and for how long manufacturers offer repairs or an exchange, free of charge thereby distinguishing themselves from competitors. |
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| | | | | Trilogue Agreement on Fees for European Medicines Agency
On 25 September, a provisional political agreement was reached on the fees payable to the European Medicines Agency (EMA). When a medicinal product is to receive an EU marketing authorisation, the EMA assesses its quality, safety and efficacy. As the current EMA fee system is already almost 20 years old, the Commission submitted a corresponding proposal [COM (2022) 721] in December 2022. This aims to close the misalignment between the increasing costs incurred by the EMA for the assessments and the current fee level. In addition, the fee system is to be made more flexible and, in particular, more adaptable to future innovations in medicines that require more complex assessment procedures. The trilogue agreement provides, in derogation from the Commission proposal, that certain fees for human and veterinary medicinal products are to be adjusted to the rate of inflation. The fees for scientific advice and for approval procedures regarding generic medicines will also be adjusted. National authorities will also receive an increase in remuneration. |
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| | | | | | The EU Commission asks decision-makers and interested parties from civil society for their opinion on European policy proposals. Here is our short-list of the most important consultations: |
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| | | European Disability Card: Commission Proposal Published
The Commission has presented a proposal for a European disability card. This is intended to make it easier for the approximately 87 million people living with a disability in the EU to exercise their freedom of movement. This could make holiday, study or work stays much easier. In addition, a disability card recognised in all Member States will facilitate concessions for culture, leisure, sport and transport. Stakeholders can now give their opinion on the Commission's proposal.
The submission period for opinions ends on 13 November 2023.
Go to Consultation |
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| | | | | Sustainable Financing: Evaluation of Disclosure Requirements
On 14 September, the Commission launched two extensive public consultations on the assessment of the Sustainable Finance Disclosures Regulation [SFDR, (EU) 2019/2088, see cepAdhoc]. The Regulation obliges financial market participants and financial advisors to be transparent when incorporating sustainability risks and adverse impacts on sustainability in their processes. In addition, it establishes requirements for the provision of information on the sustainability of financial products. In a broad and a targeted Consultation, the Commission wants to hear feedback on the initial experiences with the SFDR. In addition, it wants to find out whether there are any shortcomings in the provisions of the Regulation, especially regarding interaction with other legal acts that are part of the EU legislation on sustainable financing (e.g. Regulation on the green taxonomy, Directive on sustainability reporting). On 10 October 2023, the Commission will also hold an online workshop on the topic.
The submission period for opinions ends on 15 December 2023.
Go to Consultation
Accounting Directive: Adjustment of Thresholds
On 13 September, the Commission presented a draft delegated act amending the thresholds contained in the Accounting Directive [(EU) 2013/34] that are used to determine the size category of a company, and submitted it for Consultation. The classification of a company is based on the following three size criteria: (1) balance sheet total, (2) net turnover and (3) average number of employees. These have not been adjusted since 2013. The first two financial criteria are now being changed to reflect the inflation of recent years. (see Table): |
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| | | The planned increase in the thresholds will have the effect of exempting numerous micro and small enterprises from certain financial and sustainability reporting obligations. Following the Consultation, the Commission intends to adopt the delegated act in Q4 2023. The new thresholds will then be in operation for financial years starting in 2024.
The submission period for opinions ends on 6 October 2023.
Go to Consultation |
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| | | | | 2-5 October 2023
Strasbourg
Session of the European Parliament. On the agenda is the final vote on the revised Directive on financial services concluded at a distance (see cepPolicyBrief 12/2022) and the Regulation on European green bonds (see cepPolicyBrief 26/2021), and confirmation of the appointment of EU Climate Commissioner Wopke Hoekstra.
6 October 2023 Granada Informal meeting of heads of state or government.
9-10 October 2023 Hamburg Franco-German Council of Ministers. The agenda includes artificial intelligence. 16 October 2023 Luxembourg Meeting of the Eurogroup. 16-19 October 2023
Strasbourg Session of the European Parliament. The agenda is not yet available. 17 October 2023
Luxembourg Meeting of the Economic and Financial Affairs Council (Ecofin). 18-19 October 2023
Pamplona
Meeting of experts. The Spanish Presidency takes up the issue of antimicrobial resistance (AMR) (see cepInput 2/2023) and possible measures at EU level.
20 October 2023
Online
Event - Perspectives on Migration: The political economy of migration policies across Europe 24 October 2023
Luxembourg
Meeting of the General Affairs Council. 26-27 October 2023 Brussels Meeting of the European Council. The agenda includes Ukraine, migration, the economy and the Multiannual Financial Framework. 29-30 October 2023
Palma European Tourism Forum. The agenda includes sustainable tourism and support for corresponding digitalisation projects, particularly those supporting SMEs. |
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| | | | | | The cepDossier aims to draw attention to important EU legislative proposals in a more concise form than a Study or PolicyBrief. Current proposals are reported and briefly summarised. The aim is to achieve even faster delivery of interest-driven information, which may be of relevance to sectors and stakeholders. |
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| | | | Late Payments: Commission Wants to Curb Late Payments |
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| | On 12 September, the Commission submitted a proposal for a Regulation to combat late payment in commercial transactions[COM(2023) 533]. The proposal is part of a package of measures to ease the burden on small and medium-sized enterprises (SMEs). |
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| The Regulation will replace the Directive of the same name currently in force (2011/7/EU, see cepPolicyBrief). The new Regulation aims to tackle the problem whereby currently only every second invoice is paid on time, which poses challenges, most notably for SMEs. In a cepDossier we briefly present the proposed Regulation.
Go to cepDossier 2/2023 |
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| | | | | | PFASs: Ban on "Forever Chemicals" |
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| | Germany and four other countries have applied to the EU chemicals agency ECHA for an EU ban on perfluorinated and polyfluorinated alkyl substances (PFASs). PFASs comprise a group of over 10,000 substances that resist degradation ("forever chemicals"). Due to their water, grease and dirt repellent properties, PFASs are used in many ways, e.g. for coating metals and plastics. |
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| However, certain PFASs can harm people and the environment. Since the production, marketing and use of PFASs is to be comprehensively restricted and transitional periods are only planned for a few applications, most substances would be banned after 18 months. The EU Member States will decide on this in the coming months on the basis of a proposal by the EU Commission.
Go to cepDossier 2/2023 |
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| | | | | | cepPolicyBrief: Deposit Insurance |
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| | | Schemes Directive, the EU Commission wants to better protect savers and strengthen confidence in the financial system. The Centre for European Policy (cep) points out that the planned reform has both positives and negatives.
Go to cepPolicyBrief 12/2023 |
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| | | | cepInput: How to Prevent Future Medicine Shortages |
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| | | Medicine shortages are a growing threat to public health. The reasons include supply chain disruptions and problems affecting the supply of ingredients. In May, therefore, 19 Member States - including Germany, France and Italy - formulated a so-called “Non-paper”. The Centre for European Policy (cep) proposes a three-pillar strategy to tackle the problem.
Go to cepInput 12/2023 |
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| | | | cepAdhoc: Embracing the EU Accession of the Western Balkan Countries: A Key Question Mark for the EU |
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| | | Albania, Serbia, Montenegro, Bosnia-Herzegovina, Kosovo, Northern Macedonia: For years, the Western Balkan countries (WB6) have been striving to join the European Union. For just as long, the EU has been stalling them, citing rule-of-law and economic deficits. The Centre for European Policy (cep) considers this hesitation dangerous in view of the geopolitically tense situation for Europe and therefore pleads for rapid admission - under changed institutional conditions.
Go to cepAdhoc 6/2023 |
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| | | | | | The new international website "Common Ground of Europe" is an initiative of the Centres for European Policy Network (cep). On the commongroundeurope.eu website, cep collects mainly English-language contributions, articles and interviews from decision-makers and experts in politics, business and science. We cordially invite you to take a look through our window on Europe. Here are some examples from the past month. |
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| After One Year of Governing Italy: What Can Europe Expect from Giorgia Meloni? 25 September will mark one year since her party, Fratelli d'Italia, led the centre-right coalition to victory in the 2022 general election, alongside Forza Italia and Lega. But Giorgia Meloni has a problem with Europe.
Go to article |
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| | | 7 Questions about the Digital Euro
What will become of the digital euro? In an interview with Camille Réau, cep financial expert Philipp Eckhardt answers the seven most pressing questions - everything you need to know about the future of the new means of payment.
Go to article |
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| | | | | Talking of optimism: what Europe is capable of is demonstrated time and again at one of the most important sporting events in the world, the Ryder Cup. Every two years, the twelve best golfers from the USA compete against the twelve best players from Europe. On paper, the Americans are the favourites almost every time, as they were last weekend in Rome. But Europe managed to beat the USA and take back the Ryder Cup, with a score of 16.5 points to 11.5. With players from nine different countries, the Europeans showed incredible team spirit in a thrilling performance. A truly inspiring example for Europe.
Yours
Prof. Henning Vöpel
Centres for European Policy |
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