| | Dear Readers,
You may not believe this but Russia's dictator Vladimir Putin is still happily doing trade with the European Union. It would not even be an exaggeration to say that Putin is influencing economic development in Europe and benefiting from it.
Take crude oil, for example. Following the Russian army's attack on Ukraine, which violated international law, Brussels imposed numerous sanctions on Moscow. The aim was to minimise the EU's dependence on Russian oil and gas imports, especially in Germany, and thereby cut off the flow of funds into the Kremlin's war chest.
In reality, that is not what has happened. You only have to look at the price display boards outside German filling stations. Since February 2022, supply deals have been made at record speed with third countries, some of them overseas, which should have made crude oil more expensive in the EU. In fact, the opposite is true; prices are falling to below pre-war levels.
The explanation is simple: Russian oil continues to flood the European market - and not even in a roundabout way. A huge fleet of reflagged Greek tankers sets off from Russia’s Baltic sea ports and is able to unload its cargo in Sicilian ports unhindered - where it even has direct access to refineries. The sanctions are as full of holes as a Swiss cheese and unscrupulous war profiteers are laughing all the way to the bank.
Take export goods for example. Since the beginning of the war in Ukraine, exports of aircraft and machinery from the EU to Russia-friendly states such as Armenia, Azerbaijan, Georgia and Kazakhstan have increased one and a half times, while exports of vehicles have more than tripled. Without wishing to jump to conclusions, one could be forgiven for thinking that political leaders in the EU's major exporting nations are turning a blind eye so as not to completely stifle the local economy. If so, this is a cynical game that will dramatically prolong the suffering and death of the Ukrainian people.
It is time to change this and close the loopholes.
Yours
Dr. Jörg Köpke |
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| | | | Oil, gas, export goods: EU-Russia trade must stop. |
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| | | | Latest EU Proposals in Focus |
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| | | E-Commerce: Dealing with Temu and Shein
The Commission plans to publish a communication, probably in October, on dealing with e-commerce imports from third countries. The background to this is the increasing use of Chinese online retailers, such as Temu and Shein, by European consumers. Individual orders via these platforms are often duty-free as they do not exceed a value of € 150. This means that the purpose of the duty, for example to compensate for competitive disadvantages arising from third-country subsidies, is no longer being served. In addition, it is relatively common for products purchased via Chinese online retailers to violate EU safety regulations. This not only puts European consumers at risk of harm, it also weakens the competitive position of European online retailers because they do fulfil European security requirements. In addition, the administrative consequences for third-country online retailers importing non-EU-compliant products are less onerous than those for European online retailers. Finally, some online retailers in third countries use unfair trading practices, such as misleading marketing activities. In this Communication, the Commission will set out how it intends to achieve a level playing field between European and third-country online traders. |
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| | | | | | Digitalisation | New Technologies |
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| EU Launches Initiative to Create AI Factories
The European Commission wants to promote Europe-wide networked development centres based on the most modern supercomputers in the EU, calling them AI factories. These AI factories will provide start-ups, industry and research with access to computing capacity to accelerate the development and scaling of AI models. Thus, developers will be able to train their AI models on the so-called EuroHPC supercomputers and at the same time gain access to data storage and services. In addition, the factories aim to work closely with the various AI initiatives in the Member States to create a strong, standardised European AI ecosystem. The initiative is supported by existing EU programmes such as Digital Europe and Horizon Europe, which will provide around one billion euros by 2025. The Call for expression of interest in the AI factories runs until 31 December 2025. The initial deadline has been set for 4 November 2024, after which there will be quarterly deadlines for as long as funds are available.
EU Code Week 2024: Programming for Everyone
From 14 to 27 October 2024, the EU is holding an EU Code Week to promote digital skills across Europe in a fun way. The schedule in Germany includes initiatives such as a workshop in which young people reflect on social issues with the help of artificial intelligence, and events in which primary school children discover robotics. The events range from introductory courses on creative programming to advanced workshops developing IoT solutions and robot designs. Interested parties can register on the Website and use the map to find events in their neighbourhood. The aim of Code Week is to bring programming skills into the public eye and provide access to skills such as problem solving, creativity and teamwork, which are becoming increasingly important in the digital age. In addition to the EU Code Week events, the EU is offering a comprehensive collection of teaching materials for digital skills, throughout the year, on the Digital Skills Platform. The platform includes exercises, tutorials, lectures and video lessons on topics such as AI, machine learning, computer vision and even quantum physics. |
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| | | | | | Digital Economy | Information Technologies |
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| Digitalising Travel Documents to Facilitate Freedom of Movement
On 8 October 2024, the Commission will present a proposal for a Regulation on the digitalisation of travel documents. This was announced back in 2021, in a Communication on a fully functioning and resilient Schengen area [COM(2021) 277], and a Consultation was held in Spring 2023. The planned digitalisation of travel documents, which will also involve the introduction of a standardised format for these documents, aims to achieve several objectives. Firstly, digital travel documents should be quicker and easier to issue than physical travel documents. Secondly, they aim to speed up border controls and, thirdly, help to increase safety. Finally, they should also make it easier for citizens to exercise their right to freedom of movement. |
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| | | | | | Energy | Climate | Infrastructure | Industry |
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| Energy and Climate Diplomacy in the EU
On 30 October, in the run-up to the COP 29 UN Climate Change Conference, due to take place in Azerbaijan from 11 to 22 November 2024, the Commission will publish a Communication on the European Union's energy and climate diplomacy. Firstly, it will address the question of how EU Member States can further diversify their energy imports through partnerships with other countries. Secondly, the Commission will discuss potential measures to support partner countries in the transition away from fossil fuels and towards low-carbon energy. |
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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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| | | Air Pollutants: Reduction of National Emissions
The Directive on the reduction of national emissions of certain atmospheric pollutants, including sulphur dioxide, nitrogen oxides and particulate matter [(EU) 2016/2284; see cepPolicyBrief 24/2014], sets out commitments that every EU Member State must meet in order to protect human health and the environment. The Commission wants to assess whether the EU targets have successfully achieved their objectives and whether they should be adapted in light of changed circumstances. Stakeholders and citizens can comment on this as part of a Consultation.
The submission period for opinions ends on 26 November 2024.
Go to Consultation |
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| | | | | Security of the Energy Supply: Fitness Check for EU Legal Framework
The EU has a comprehensive legal framework for security of the energy supply, which is organised by sector - e.g. electricity, gas and oil. The Commission wants to review this EU legislation because, on the one hand, gaps became apparent during the energy crisis following Russia’s invasion of Ukraine and, on the other, the energy transition is fundamentally changing the energy landscape. The aim of the Consultation is to gather information in order to assess the performance of the EU regulatory framework on security of the energy supply and whether it is still fit for purpose.
The submission period for opinions ends on 26 November 2024.
Go to Consultation |
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| | | | | CO2 Emissions from Lorries and Buses: In-service Verification
In order to decarbonise road transport, the EU has set CO2 emission standards for heavy-duty vehicles - lorries and buses [Regulation (EU) 2019/1242; see cepPolicyBrief 13/2023]. The Commission is currently drafting an implementing regulation with detailed procedural rules for verifying the CO2 emissions and fuel consumption of heavy-duty vehicles while in service ("in-service verification"). It therefore wants to gather the opinions of stakeholders and citizens by way of a Consultation.
The submission period for opinions ends on 10 October 2024.
Go to Consultation |
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| | | | Digitalisation | Single Market |
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| Abuses by Dominant Companies
Until the end of October, the European Commission is conducting a Consultation on the guidelines on abuses by dominant companies. Article 102 of the Treaty on the Functioning of the European Union (TFEU) prohibits abusive behaviour by dominant companies that is likely to affect competition by excluding competitors. Until now, there have been no specific guidelines in this area. With the publication of new draft guidelines, the Commission now wants to clarify how these rules are to be applied. The guidelines should reflect the case law of the EU courts on exclusionary abuses and take into account the Commission's experience in applying Article 102 TFEU. Key aspects will be clarified, such as consumer welfare in relation to exclusionary abuse, the analysis of market dominance in the digital age and the requirements for proving exclusionary effects. All interested parties can submit their comments online. The draft guidelines and further information on the consultation are available on the Website of the Directorate-General for Competition.
The submission period for opinions ends on 31 October 2024.
Go to Consultation |
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| | | | | 4 October 2024
Luxembourg
The European Court of Justice (ECJ) will issue decisions in numerous cases, three of which are set out below:
Firstly, in the FIFA Case (C-650/22), it will be interesting to see whether the ECJ manages to shake up international professional football’s current transfer system. This involves the case of French professional footballer Diarra, who terminated his contract with Russian club Lokomotiv Moscow prematurely, in 2014, without good reason. A move to Belgian club Sporting Charleroi subsequently failed, partly because Lokomotiv Moscow refused to issue Diarra with an international transfer certificate (ITC), which he needed to sign with another football club. In fact, according to FIFA regulations, the former club may withhold issuance of the ITC if it is involved in a contractual dispute with the player. In addition, FIFA rules stipulate that if a player quits a club without just cause, compensation is due - in Diarra's case over €10 million - for which not only the player but also the new club that signs the player in this situation is also liable. Finally, the new club faces a one-year transfer ban if it induced the player to commit the breach of contract, which is presumed under FIFA rules unless the club proves otherwise.
In the opinion of the EU Advocate General Szpunar, these rules violate the free movement of labour (Art. 45 TFEU) and EU competition law (Art. 101 TFEU). The threat of the new club being held jointly liable would discourage other clubs and thus actually prevent players from moving to clubs in other Member States. This impairs competition between clubs on the market for the acquisition of professional players. According to the Advocate General, the refusal to issue the ITC could also make it impossible for a player to exercise their profession in another Member State. The systematic liability of the new club is not necessary for the attainment of contractual stability in professional football or for ensuring fulfilment of commitments that have been entered into, especially if the new club was not involved in the termination of the contract.
The decisive factor will be whether the ECJ agrees with the Advocate General that the contested rules "have as their object" a restriction of competition, thus making the clauses anti-competitive due to their non-compliance with the requirements of Art. 101 (3) TFEU, or whether it assumes that they merely "have as their effect" a restriction of competition. In this case, because the restriction of competition is intended to prevent breaches of contract and premature player transfers without transfer negotiations, it could possibly be justified by the public interest in maintaining the stability of professional football contracts - which the Advocate General denies based on the current wording of the clauses. If the ECJ follows the opinion of the Advocate General, this could bring huge changes to professional football’s transfer system, which is characterised by transfer fees.
Secondly, a recent legal dispute between the Austrian data protection activist Maximilian Schrems and Facebook Ireland Ltd. C-446/21) concerns, among other things, the question of whether a social network such as Facebook is permitted to aggregate all the personal data it holds on an individual without restriction and use it to provide targeted advertising to that individual, or whether the principle of data minimisation prohibits this. In the opinion of the Advocate General, which the Court of Justice often follows, the principle of data minimisation generally precludes completely unrestricted processing of the data; however, the courts must decide in each individual case whether the use of the data - in this case for the purposes of personalised advertising - is proportionate. It will be interesting to see whether and how the Court of Justice interprets the principle of data minimisation and whether (like the Advocate General) it imposes certain conditions on the proportionality test, such as differentiating the level of intervention depending on the type of data used.
Thirdly, the ECJ may decide in the important case of Linden-Apotheke (Case no. C-21/23), following referral by the German Federal Court of Justice, on whether GDPR infringements by competitors also constitute prohibited unfair competition or business practices, against which companies can also defend themselves under national law by way of injunctions before the national civil courts, or whether it is exclusively the legal remedies under the GDPR that apply in this respect. At the same time, this provides the ECJ with an opportunity to further clarify the broad concept of so-called health data. The lawsuit was filed by a Munich pharmacist seeking to prevent the online sale of pharmacy-only medicines by a competitor, Linden-Apotheke, via the Amazon Marketplace mail-order platform. Such online sales are claimed to violate the GDPR because of the failure to obtain the required consent of online shoppers to the processing of their personal health data.
The Court of Justice must now first decide whether personal data that customers enter when ordering such medicines on a sales platform such as Amazon constitute (sensitive) health data within the meaning of Art. 9 GDPR. In the view of the EU Advocate General, data transmitted when ordering a medicine only available in pharmacies but not on prescription, is not health data because only imprecise conclusions can be drawn about the health status of the person ordering the medicine - for example, because they could have ordered the medicine for a third person.
If the ECJ follows this line, it would no longer have to decide the question, of particular interest in Germany, as to whether the GDPR allows for injunctive relief on the basis of the German Unfair Competition Act (UWG) against data protection violations by competitors. However, the Advocate General clarified in the alternative that, in his opinion, the GDPR does not prohibit such actions under national law. The GDPR does not protect companies nor does it aim to ensure free and undistorted competition. However, because the Court of Justice has recognised that a violation of the GDPR can constitute a violation of EU competition law in public enforcement proceedings, where there is an abuse of a dominant position, it must also be possible to take a data protection violation into account in private enforcement proceedings. If that is the ECJ’s ruling on this issue, German companies in particular will probably have to prepare for injunctions from competitors if they have committed data protection violations.
8 October 2024
Luxembourg
Meeting of the Economic and Financial Affairs Council (Ecofin). Among other things, it will take stock of the implementation of the Recovery and Resilience Facility (RRF). Conclusions on climate financing with a view to the UN Climate Change Conference (11-22 November 2024) will also be adopted.
17-18 October 2024
Brussels, Belgium
Meeting of the European Council. In particular, the topics of Ukraine, the Middle East, competitiveness and migration will be discussed. |
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| | | | | | The cepNetwork Freiburg-Berlin-Paris-Rome reports on current political events in France and Italy. |
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| French Government Achieves Precarious Stability
On 21 September 2024, after more than two months of waiting, France formed a new government. As expected, the Fifth Republic saw the formation of an unprecedented LR centrist coalition under the leadership of Michel Barnier, who was appointed Prime Minister by President Emmanuel Macron. This coalition, which with over 200 MPs represents the majority in the Assembly, is starting off without a clear work plan and with many major differences of opinion on social issues. The "Barnier I" government includes only one figure from the centre-left, Didier Migaud, who will be number two behind Barnier and seems to have accepted this with a view to obtaining a seat on the Constitutional Council later on. This cabinet also marks a shift to the right with figures such as Bruno Retailleau taking on the Home Affairs portfolio and Laurence Garnier, who is against gay marriage and assisted reproduction, getting the Consumer portfolio. This shift, which signifies increased austerity measures and anti-immigration laws, results from the fact that Macron had to ensure political stability as the far right would provide passive support in the no-confidence motions. |
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| | | G7 Ministers Discuss Innovation and Digital Transformation
On 15 and 19 October, Italy will host two important G7 Ministerial Meetings on the topic of innovation and digital transformation. Building on the G7 Hiroshima Statement, the Italian Presidency wants to establish a robust monitoring mechanism for the G7 Code of Conduct on Artificial Intelligence (AI) to ensure responsible AI development in line with democratic values. This focus seems to reflect the vision of EU Commission President Ursula von der Leyen, who recently appointed an Executive Vice-President for Technological Sovereignty, Security and Democracy. In addition, in relation to AI, the Italian G7 Presidency is also focussing on, among other things, digital transactions in the public sector. This topic is also addressed as an important recommendation in the Draghi report. Indeed, the use of AI can enable public administrations to deliver public goods more effectively, reduce costs and maximise efficiency. However, while maintaining ethical standards and ensuring that technological progress benefits society as a whole, there is undoubtedly an urgent need for the EU and Italy to promote digital innovation in order to remain competitive in the global market. |
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| | | Meloni Receives the Global Citizen Award
On 23 September, Giorgia Meloni received the Atlantic Council's Global Citizen Award from Elon Musk in New York. There are several areas of interest that have led to this rapprochement. One of these is the Italian Space Act, which provides for Italy to equip itself with a reserve of transmission capacity via satellite communications to ensure the operation of strategic, military and civilian services in the event of a failure of terrestrial internet networks. There are two companies in the EU and NATO that offer this service: France’s OneWeb and Musk’s Starlink, which has ten times more satellites and lower costs and would therefore be favoured in the event of a tender. Italy wants to equip itself with a backup network, while the EU is reportedly developing its own network (Iris2), a project that was requested by former French Internal Market Commissioner Thierry Breton but is currently on hold. A possible partnership with Musk could facilitate the creation of an Italian digital reserve network but may also delay the project of a real European network, which the new Commission is likely to take up again in the near future. |
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| | | | | | cepInput: Resilience Auctions for Net-Zero Technologies |
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| | | The EU's green transition is based on a few key technologies such as wind power and photovoltaics. In order to reduce existing import dependencies, the EU wants to focus on resilience criteria in public tenders. The Centrum für Europäische Politik (cep) considers this to be sensible but advocates greater precision regarding the implementation.
Go to cepInput |
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| | | | cepInput: In Search of Laws of Robotics |
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| | | Increasingly powerful artificial intelligence (AI) systems are presenting politicians and developers with ever greater challenges. How can we guarantee that these powerful engines of digitalisation are used safely? The Centrum für Europäische Politik (cep) calls for binding ethical boundaries and rules to be integrated into the construction of AI systems.
Go to cepInput |
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| | | | cepPolicyBrief: Climate Risks and Climate Resilience |
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| | | Floods, drought, crop failure: the European Commission warns that Europe is warming twice as fast as the rest of the world. The negative consequences of climate change are already being felt. In order to make the EU more climate-resilient, the Commission wants to clarify how adaptation measures can be implemented, who is responsible and who will ultimately bear the cost. The Centrum für Europäische Politik (cep) welcomes these plans.
Go to cepPolicyBrief |
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| | | | cepAdhoc: The New European Pact on Migration and Asylum |
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| | | Migration and asylum policy has long been a central element of the European political agenda, both in the EU and in its Member States. In the final months of the last legislative period, the EU agreed the New Pact on Migration and Asylum, which provides a new European framework for this issue.
Go to cepAdhoc |
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| | | | | | The international website "Common Ground of Europe" is an initiative of the Centres for European Policy Network. 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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| | At the Crossroads: European GreenDeal Becomes Clean Industrial Deal |
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| In autumn 2024, the European Union’s climate policy is at the crossroads: After five years of intensive political discussions and negotiations, the EU institutions have adopted a vast number of legal acts codifying the European Green Deal proposed by Ursula von der Leyen in 2019 at the beginning of her first term of office. Today, before the start of her second term, the challenges facing the EU and its Member States in implementing this ambitious legal framework are becoming ever more apparent, especially with regard to its socio-economic implications.
Go to article |
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| | | | Is Turkey the Trojan Horse of ChineseCompanies to Enter Europe? |
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| Turkey is keeping several doors open. In addition to its status as a NATO member, and as a historical partner of the West, it has increasingly intense economic relations with China, which sees in Ankara a Trojan horse to breach the EU Commission's wall.
Go to article |
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| | | | | Dear Readers,
Hearing how Russian sanctions are being circumvented it is hard not to exclaim: Some people have no shame!
Stay tuned!
Yours
Dr. Jörg Köpke |
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