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Dear Readers,
in Berlin, all signals point to a traffic light. A coalition made up of SPD, FDP and the Green Party wants to elect the SPD politician Olaf Scholz, as early as the beginning of December, as leader of a new federal government to succeed Angela Merkel in the Chancellery.
At the Centrum für Europäische Politik, we are of course delighted that the traffic light, hallmark of our European policy briefs, is suddenly the word on everybody’s lips. Nevertheless - or precisely for this reason - we are urging caution.
The consultation paper from the future coalition partners has already flagged up some contradictions. It remains unclear how the multi-billion euro investment in climate change and digitalisation, which is undoubtedly necessary, can be successfully achieved without tax increases whilst maintaining the debt brake. As for Europe, use of the words “flexibility of the stability pact” has stirred up fears that Berlin may throw open the door to a debt union.
Rest assured that we will be keeping our usual critical and attentive eye on further developments. The evident desire of the traffic-light coalition partners to start governing as soon as possible, rather than not at all, should not change the basic parameters of economic prudence.
This November Newsletter provides a clear insight into the central issues that will be facing us in the coming years. This month, Brussels is concerned with, among other things, waste transport, soil protection, digitalisation and artificial intelligence, investment funds and cloud services as well as a drone strategy. In mid-November, a ruling by the European Court, imposing a multi-billion euro fine on Google, will be eagerly awaited in Luxembourg.
Stay tuned!
I wish you an enjoyable read.
Best wishes
Dr Jörg Köpke |
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| Almost 300 politicians from the SPD, FDP and Greens have been working on a coalition agreement in 22 working groups since the end of October. The traffic light government is to be in place by the beginning of December - with Olaf Scholz as the new chancellor. |
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| Latest EU Proposals in Focus of the cep |
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Waste Transport: Promoting the EU-wide circular economy
On 17 November, as part of its “Circular Economy Action Plan” [COM(2020) 98; see cepPolicyBrief 5/2020], the Commission will propose changes to the 2006 EU Regulation on waste transport [(EC) Nr. 1013/2006]. The current EU rules and their varying application by the Member States with regard to cross-border waste transport are obstructing the emergence of an effective EU internal market for secondary raw materials, such as plastic recyclates, in line with the principles of a circular economy [see cepStudy (2020) Circular Plastics Economy for Non-food Packaging]. The changes will encourage the emergence of a cross-border circular economy in the EU internal market and at the same time protect human health and the environment against hazardous materials found in waste.
Soil Protection: New EU Strategy
On 17 November, as part of its EU Biodiversity Strategy for 2030 [COM(2020) 380, see cepPolicyBrief], the Commission will publish an EU Soil Strategy. This will aim to protect soil fertility, reduce soil sealing and erosion, restore degraded soils and, overall, achieve a “good ecological status” for soils. To realise the individual aspects of the new EU Soil Strategy, the Commission is subsequently planning to propose specific measures for the EU and its Member States.
Forest Protection in Third Countries: Product label for imported goods
On 17 November, the Commission will propose a new Regulation to improve the protection of forests outside the EU. According to the Commission, almost 80% of global deforestation is caused by the production of e.g. soya, beef, palm oil, coffee and cocoa. The Commission wants to ensure that such goods imported into the EU do not contribute to forest degradation. For this purpose, the EU could require the use of a product label guaranteeing that these imported goods do not pose a danger to forests. |
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| Economic and Fiscal Policy |
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European Semester: Autumn package
On 23 November, the Commission will submit its autumn package. The Commission uses the autumn package to indicate its position on the draft budgetary plans of the Euro Member States. The autumn package also marks the start of the European Semester. This process aims to ensure sound public finances, promote economic growth by way of structural reforms and prevent excessive macroeconomic imbalances in the EU. In addition, since the adoption of the recovery instrument NextGenerationEU (see cepAdhoc 7/2020), implementation of national recovery and resilience plans will be monitored within the framework of the European Semester. |
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Digital Transformation: Commission to revise competition policy
The Commission has postponed until 17 November its planned initiative to revise EU competition policy, which was originally scheduled for 27 October. This centres on adapting European competition law to meet the challenges of the digital age. |
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Exchange of Information: EU is planning an access point for company information
On 23 November, the Commission will submit a proposal for a so-called European Single Access Point (ESAP) for company data. Numerous EU legislative provisions already oblige companies to publish financial information and information on sustainability. These aim to reduce asymmetries of information between companies and investors and more regulations are planned for the future (see cepPolicyBrief 21/2021). Nevertheless, according to the Commission, investors often have difficulties accessing, comparing and using information because it is rarely available in a central location or freely accessible. In addition, there is a lack of uniform standards regulating how this information should be disclosed.
Alternative Investment Funds (AIF): Commission to revise EU Directive
On 23 November 2021, the Commission is planning to submit a proposal to revise the EU provisions on Alternative Investment Funds (AIF) [2011/61/EU, see cepPolicyBrief], i.e. funds which acquire their resources primarily from “professional” investors, such as private equity funds and hedge funds. The revision could focus in particular on uniform requirements for loan-originating AIFs and on new powers for the European Securities and Markets Authority (ESMA) vis à vis AIF administrators from third countries, as well as on new powers of intervention to safeguard financial market stability in the event of market turbulence, such as that which was recently triggered by the Covid-19 pandemic.
European Long-Term Investment Funds (ELTIF): Brussels starts review of the EU Regulation
On 23 November, the Commission will start a review of the requirements for long-term investment funds (ELTIF) [(EU) 2015/760, see cepPolicyBrief 51/2013]. ELTIFs are special AIFs which provide investment particularly for longer term infrastructure projects or for property. Only a few ELTIFs have been set up since the Regulation came into force. The Commission has identified some of the reasons for this. It now wants to use the review to remove barriers and will therefore expand the choice of permitted investment assets and relax the restrictions on borrowing for these funds.
Securities Trading: Revision of the Markets in Financial Instruments Regulation (MiFIR)
The Regulation (MiFIR) [(EU) No 600/2014, see cepPolicyBrief 16/2012] and the Directive on Markets in Financial Instruments (MiFID II) [2014/65/EU, see cepPolicyBrief 17/2012] have been in force since the beginning of 2018. Both legislative acts form the legal framework for the provision of securities services within the EU. The Commission has now announced that it will submit a proposal to revise the MiFIR on 23 November. In particular, it could propose the introduction of a transparency instrument which would consolidate information on the market value and trading volumes of financial instruments across several trading platforms (“consolidated tape”). The aim is to give market players easier access to reliable and affordable trading data.
Financial Supervision: Communication on supervisory data strategy
According to the Commission, companies in the financial sector are having to spend up to twelve billion euro in order to meet EU reporting requirements. These facilitate the supervision of the EU financial system. The scope and complexity of the data that is relevant in this regard have increased significantly in recent years. The Commission sees numerous weaknesses when it comes to the collection of data. Among other things, the data is often of low quality or of little use to the authorities. On 23 November, the Commission will therefore submit a supervisory data strategy. The aim is to facilitate “effective data-driven supervision” and at the same time reduce costs associated with the reporting of data. |
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In Vitro Diagnostic Medical Devices: EU Commission extends transition periods
The Commission wants to extend the transition periods in the Regulation on in vitro diagnostic medical devices [(EU) 2017/746]. This will prevent shortages of products such as Corona tests and HIV tests. A similar situation already existed in relation to the Medical Devices Regulation (MDR) [(EU) 2017/745]. In the case of the MDR, however, the transition periods were changed by way of a corrigendum. This immediately gave rise to criticism (see cepAdhoc Deadline extension for medical devices). Now the Commission is taking the route already suggested by the Centrum für Europäische Politik for the MDR: an amending Regulation in the ordinary legislative procedure. Parliament and Council have to decide now. |
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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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Air Quality: Tightening the EU requirements
As part of its Zero Pollution Action Plan [COM(2021) 400, see cepPolicyBrief 20/2021], the Commission will revise the Air Quality Directives [2008/50/EC and 2004/107/EC] in order to bring EU air quality standards into line with the stricter recommendations of the World Health Organisation (WHO), as well as to allow closer monitoring of air quality and facilitate more effective implementation and enforcement of existing EU rules.
The submission period for opinions ends on 16 December 2021.
Got to consultation |
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Aviation: Drone Strategy 2.0
Building on the initial steps already taken at EU level to regulate drones [see cepInput 3/2016], the Commission wants to gather information and opinions on how a future “EU Drone Strategy 2.0” could contribute to the emergence of safe, efficient and sustainable drone services. EU measures will be identified that could be used to dispel concerns about drones and promote their wider use.
The submission period for opinions ends on 31 December 2021.
Go to consultation |
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Energy Sector: EU Digitalisation Action Plan
The Commission wants to push ahead with digitalisation of the energy sector by way of an EU Action Plan in order to improve the utilisation of network capacity, identify network bottlenecks more quickly and facilitate greater use of renewable energy. Thus, in the case of renewable energy production, for example, the use of digitalised data will help to align the fluctuating levels of supply and demand more effectively.
The submission period for opinions ends on 24 January 2022.
Go to consultation |
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State Aid: Commission to revise General Block Exemption Regulation
The General Block Exemption Regulation [(EU) No 651/2014] declares certain categories of state aid compatible with the EU Treaties. By amending the Regulation, the Commission intends to take into account aid paid under the Green Deal and the Data and Industrial Strategy.
The submission period for opinions ends on 8 December 2021.
Go to consultation |
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Defective Products: Civil liability for defective digital products
The Product Liability Directive [85/374/EEC] provides for a system of compensation for damages incurred by consumers due to defective products. According to the Commission, outdated concepts make it difficult to apply the Product Liability Directive to products in the digital economy, especially where certain AI systems are used. The Commission is using the consultation to gather opinions on whether or where stakeholders see a need for action and what measures the EU should take. The submission period for opinions ends on 10 January 2022.
Go to consultation |
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8 November
Brussels Meeting of the Eurogroup. It deals in particular with macroeconomic developments around inflation. In addition, the introduction of the digital euro is discussed.
9 November
Brussels Meeting of the economic and finance ministers (ECOFIN). It is about the proposals presented by the Commission last week on the implementation of Basel III.
10 November
Luxembourg
Judgement of the European Court of Justice (ECJ) in Case T-612/17 Google Shopping. Subject matter of the proceedings is the multi-billion euro fine imposed on Google by the Commission on 27 June 2017 because, when displaying search results, Google favoured its own “Google Shopping” service over other services. Google has brought an action for the annulment of this decision.
10-11 November
Brussels
The European Parliament in plenary will again be debating and voting on inter alia the Commission’s proposal for a Regulation on serious cross-border threats to health (see cepPolicyBrief 19/2021).
12 November
Brussels
Meeting of the Economic and Financial Affairs Council (ECOFIN). The Council will be dealing with budgetary matters.
22-25 November
Strasbourg
The European Parliament in plenary will be debating and voting on inter alia the Pharmaceutical Strategy (see PolicyBrief of the Centres for European Policy Network).
25 November
Brussels
Meeting of the Competitiveness Council. The Council will be dealing with issues concerning the internal market and industry.
6 December 2021
Brussels
Meeting of the Eurogroup.
7 December 2021
Brussels
Meeting of the Council for Economic and Financial Affairs (ECOFIN). |
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| cepPolicyBrief: EUid Wallet |
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| | Identity cards, driving licences, digital money: according to the Commission, Member States are to introduce so-called digital wallets. Smartphone apps are to replace the paper and card economy in purses by mid-2023. Each Member State must present a technical solution by then. The Commission has presented a corresponding proposal for a Regulation.
Go to cepPolicyBrief 25/2021 |
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| cepInput: Can a Reform of Date Marking on Food Products Reduce Food Waste? |
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| | In the EU, around ninety million tonnes of food end up being wasted every year. Ten percent of this alone is said to be due to the misunderstanding of date marks on packaging. Often, consumers do not understand the meaning of "best before" and "use by" dates. The Commission therefore wants to launch consultations on food labelling before the end of the year. Brussels is putting forward three options for discussion.
Go to cepInput 13/2021 |
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| cepPolicyBriefs: Digital Services Acts Part I-III |
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| | Online platforms are often misused to spread terrorist propaganda and hate speech. Providers such as Facebook play a key role in combating illegal content. With the Digital Services Act (DSA), the Commission wants to improve the internal market and create a safe and transparent online environment. The Centres for European Policy Network has examined the EU regulation in three cepPolicyBriefs and found legal violations and ambiguities.
Go to cepPolicyBriefs 22-24/2021 |
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| A selection from about the hundred press reports on the work of the Centrum für Europäische Politik that appeared in September 2021: |
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| | Traffic Light or Jamaica: Which coalition is better for Germany as a prime business location?
Henning Vöpel, Director of the Centrum für Europäische Politik Freiburg | Berlin, commented in the Berliner Zeitung on the coalition options following the German election. In the Greens and the FDP, he sees drivers of change that are necessary for a climate friendly transformation of economy as well as the digitalisation of Germany.
Berliner Zeitung, 1 October 2021 |
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| | Crise de l’énergie: Bruxelles sous pression des Etats membres
cep energy expert, Dr Götz Reichert, was quoted in the French newspaper L’Opinion on the rising energy prices in Europe. In the article, he talks about Germany’s role in the current discussion on changes to the European energy market rules.
l’Opinion, 8 October 2021 |
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| | How will the EU combat rising energy prices?
In an interview with Deutschlandfunk, Dr Götz Reichert warned against state intervention in the pricing of energy markets to slow down the current sharp rise in energy prices. Social hardship cases should be better cushioned by targeted state direct payments to low-income households.
Deutschlandfunk, 14 October 2021 |
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| | The best-before date could disappear from Europe's supermarkets
The Handelsblatt quoted a study written by Dr Patrick Stockebrandt and Nathalja Nolen on date indications on food. The Commission intends to reduce waste by reforming this labelling. According to Stockebrandt, two dates should be printed on most food: the best-before date and the use-by date.
Handelsblatt, 18 October 2021 |
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Dear Readers,
In 2017, as First Mayor of Hamburg, Olaf Scholz said of the then forthcoming G7 summit in the Hanseatic city: “On 9 July, there will be people who will be surprised to find that the summit is already over.” Looking back at the riots that were to follow and the hundreds of injured police officers, let’s hope, for our own sake and that of the future Chancellor, that his predictions will be more accurate in future.
Best wishes
Jörg Köpke |
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