Newsletter 11/2023
Dear Readers,
 
Do you also shudder, or at least wince internally, when you hear the words "watershed moment"? Ever since Chancellor Olaf Scholz described Russia's attack on Ukraine and its consequences as a watershed moment, the expression has been used and abused so often that it has degenerated into nothing more than a hackneyed cliché.
 
It gets used whenever there is an upheaval and the stock vocabulary reaches its limits, which means that it now applies not just to the breakdown of world peace but also to inflation, recession, migration, antisemitism, national interest, the housing shortage, poverty, the Bundeswehr, gender, the Left, fascism, fax machines or Sahra Wagenknecht. Everything is a watershed moment in one way or another.
 
It is almost as if nothing is worth saying unless it has "watershed moment" stamped all over it. But that is not the case! The opposite is true.
 
After the helmet fiasco, Germany's military aid to Ukraine is starting to look respectable but it still lags far behind what is needed to put the aggressor in his place once and for all, and thus protect Germany and Europe. Despite its “special fund” (another over-used term) the Bundeswehr is not in a position to defend the country. The economy may have phased out nuclear and coal, as well as gone cold turkey on Russian gas, but it is a long way from making the energy transition. Nazis and other populists of all colours are turning against democracy. Bureaucracy is off the scale. And as if that weren’t enough, 78 years after the Holocaust, Israel waits in vain at the UN for a German denunciation of new pogroms.
 
Is this supposed to be the much-vaunted watershed moment? Which one exactly? Where is something really changing for the better? Beware of terms sold to you as a panacea to disguise ignorance, indecision, the incomprehensible and the meaningless, or simply to muddy the waters. Suddenly everything is supposed to be resilient, sustainable and green with no plausible explanation of what is actually behind  all this jargon?
 
So stay critical. Compare the promises and pronouncements with reality. Expose inflated soufflés for what they are: a lot of hot air. Then you will be on precisely the same path that the Centrum für Europäische Politik in Europe has been following for almost twenty years.
 
Yours
Dr Jörg Köpke
"We are at a watershed moment": Chancellor Olaf Scholz promises significant changes in German policy after Russia's invasion of Ukraine.
Latest EU Proposals in Focus
Economic and fiscal policy
European Semester: Autumn Package

The Commission plans to present its autumn package on 21 November as part of the European Semester. The European Semester is a process designed to help ensure sound public finances, promote economic growth through structural reforms, prevent excessive macroeconomic imbalances in the EU and, since the adoption of the "Next Generation EU" reconstruction instrument (see cepAdhoc 7/2020), monitor the implementation of national recovery and resilience plans. The autumn package includes an opinion on the draft budgets of the euro Member States.
 
Digital Economy | Transport
Digital mobility I: Multimodal digital mobility services

On 29 November, the Commission intends to present a proposal for a Regulation on multimodal digital mobility services. The aim is to better connect public transport, including rail transport, and to achieve seamless multimodal passenger transport - also across borders. To this end, obstacles to data exchange are to be overcome. In particular, planning and buying tickets for journeys with different modes of transport are to be facilitated by digital services such as route planners or ticket providers.
 
Digital Mobility II: EU Common Mobility Data Space

On 29 November, the Commission intends to publish a Communication on the "Common European Mobility Data Space". This will describe the objectives, governance, milestones and supporting actions of the Shared European Mobility Data Space, which will enable better, faster and more efficient cross-border and cross-sectoral data access and exchange, as well as greater interoperability. It will also detail how complementarity and coherence will be ensured with other common European data spaces that are already emerging.
 
Environment
Forests: EU monitoring requirements

On 21 November, the Commission intends to propose a Regulation setting out EU requirements for the monitoring of forests. The aim is to provide regular, detailed information on the condition and management of forests in the EU and to give an overview of the ecosystem services provided by forests - i.e. their various benefits for human use. The data obtained should make it possible to take more informed decisions on the use and protection of forests, to reduce illegal logging, to promote more sustainable forest management and to support the adaptation of forests to climate change.
 
Verbraucher
Geographical indications: Stronger protection for certain products 

On 24 October, a provisional political agreement was reached on a new Regulation on geographical indications for wines, spirits and agricultural products [COM(2022) 134]. Geographical indications protect the names of products with particular characteristics, quality or reputation linked to their region of production. Among other things, a simplified registration procedure, better protection of geographical indications on the internet and a stronger emphasis on sustainability were agreed.
 
Trilogue Agreements
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.
Environment
Trilogue agreement on fluorinated gases and ozone-depleting substances

On 5 October, a provisional political agreement was reached on fluorinated gases (F-gases) and ozone-depleting substances that contribute to global warming and depletion of the ozone layer. Among other things, it was decided to completely phase out the use of hydrofluorocarbons (HFCs) by 2050. Both production and consumption will be regulated by allocating quotas that decrease over the years. There will be exemptions, such as for semiconductors, and a review will be conducted in 2040 to determine whether a gradual phase-out of HFCs is possible. In addition, the marketing of HFCs in certain products, such as household refrigerators, will be completely banned and ozone-depleting substances will be banned in almost all cases.
 
Consultations
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:
Internal Market
Reducing bureaucracy: Reducing reporting obligations

The EU Commission has set itself the goal of reducing the burden of reporting obligations for companies and administrations by 25 %.  With its consultation, the EU Commission firstly wants to find out in which areas reporting obligations arising from EU law are particularly problematic. Secondly, it is asking for quantitative data on the burdens caused by such reporting obligations. Thirdly, it is asking for concrete ideas for streamlining, modernising or optimising reporting obligations.

The deadline for submission of comments is 28 November 2023.
 
Go to Consultation
 
Digitalisation and New Technologies
Space law: EU insists on safety and sustainability

On 17 October, the Commission launched a consultation on the planned EU Space Law. This is intended to establish the framework for safe, resilient and sustainable space activities in Europe. The aim is to establish common rules to prevent collisions and reduce space debris that pose a risk to the use of space. In addition, Regulations are planned for comprehensive risk management and cyber security protocols specifically tailored to the requirements of the space sector. In terms of sustainability, the law aims to establish a framework that includes the assessment of the life cycles of space activities and the prevention of light pollution of the night sky. The Commission is currently considering several policy options, including the continuation of existing non-binding guidelines, the introduction of reward mechanisms for compliance with relevant standards and best practices, the adoption of a binding EU framework and the adoption of bilateral agreements. The consultation is of particular interest to companies in the upstream sector (space operators and spacecraft manufacturers), providers of public electronic communications networks, airlines and air navigation service providers, as well as small and medium-sized enterprises that could benefit from space data.
 
The deadline for submission of comments is 28 November 2023.

Go to Consultation
 
Traffic
Road and air transport: reduction of reporting obligations

The Commission wants to reduce reporting obligations in road and air transport and has proposed (1) a Regulation and (2) a Decision to that end. The proposed Regulation refers to reports on the transport of dangerous goods [Directive (EU) 2022/1999], on the share of clean vehicles in public procurement [Directive 2009/33/EC] and on lists of airports falling within the scope of Directive 96/67/EC on access to the groundhandling market and Directive 2009/12/EC on airport charges. The proposed Decision aims to reduce reporting requirements in the Computer Reservation Systems Regulation [(EC) No 80/2009], the Civil Aviation Safety Investigation Regulation [(EU) 996/2010] and the Tachograph Regulation [(EU) No 165/2014].

The deadline for submission of comments is 19 December 2023.
Go to Consultations (1) and (2).
 
Dates
8 November 2023
Brussels

Meeting of the Euro Group.
 
8-9 November 2023
Brussels

Meeting of the European Parliament. This will include, among other things, the final vote on the Data Act (see cepPolicyBrief 11/2022). Various Directives and Regulations concerning the establishment and functioning of a European Single Access Point (ESAP) are also to be adopted. In addition, a revised version of the Regulation on central securities depositories will be voted on.
 
9 November 2023
Luxembourg

On 9 November 2023, the CJEU will rule in case C-376/22 on the extent to which EU Member States (in this case: Austria) may impose obligations on platforms such as Google, Meta or Tiktok to set up a reporting system for illegal content or reporting obligations that go beyond the Digital Services Act (DSA). In principle, according to the E-Commerce Directive 2000/31/EC, service providers are only subject to the law and supervision of the EU Member State in which they have their (EU) headquarters (country of origin principle). Exceptionally, however, other Member States may also take "measures" against a "particular service" to protect important public interests such as the protection of minors. The CJEU must now decide whether a law imposing obligations on a generally defined category of certain services such as "communications platforms" is covered by this exception. According to the EU Advocate General, which the CJEU often follows, this is not the case, as  the measure is not taken on a case-by-case basis and therefore the Austrian law is unlawfully restricting the platforms' freedom to provide services.

10 November 2023
Brussels

Meeting of the Economic and Financial Affairs Council (Ecofin). This will include budget issues.
 
15 November 2023
Brussels

General Affairs Council Meeting.
 
20-23 November 2023
Strasbourg

Session of the European Parliament. This will concern among other things a European Health Data Space (EHDS) (see cepPolicyBrief  13/2022) and the European Right to Repair (see cepPolicyBrief 10/2023).
 
27-28 November 2023
Brussels

Meeting of the Employment, Social Policy, Health and Consumer Affairs Council.
 
30 November 2023
Brussels

Meeting of the Employment, Social Policy, Health and Consumer Affairs Council.
 
Selected cepPublications
cepStudy: The Threat of Digital Populism to European Democracy
cepInput: Alkohol gefährdet die Gesundheit: cep fordert EU-einheitliches Label nach irischem Vorbild
X (Twitter), Facebook, Cambridge Analytica: For years, populist disinformation campaigns have misused digital media. Now, they have begun to add artificial intelligence (AI) to their increasingly powerful toolkit. This is the conclusion of a study by the Centres for European Policy Network. The researchers from Germany, France and Italy call for stricter rules in view of the dangers.

Go to cepStudy
 
cepPolicyBrief: Tightening of CO2 emission standards for new heavy-duty commercial vehicles
cepInput: Alkohol gefährdet die Gesundheit: cep fordert EU-einheitliches Label nach irischem Vorbild
Heavy duty vehicles are responsible for a significant share of CO2 emissions in the EU. For this reason, the Commission wants to set new CO2 limits for trucks, vans and buses. In view of other, more efficient instruments, the Centrum für Europäische Politik considers the Commission proposal to be one-sided, anti-technology and superfluous - and therefore rejects it.

Go to cepPolicyBrief
 
cepPolicyBrief: EU Metaverse Strategy: WEB 4.0 & Virtual Worlds
Virtual worlds like the metaverse promise growth and jobs. For this reason, the European Commission has drafted a so-called metaverse strategy. The Centre for European Policy considers the outlined measures questionable. They are misleading, unclearly formulated, and not competitive with US tech giants like Meta.

Go to cepPolicyBrief
 
cepStudy: The new EU retail investment strategy
Nervous insurers, intermediaries and financial advisors: By the time of the European elections next year, the EU Parliament, Council and Commission want to find a solution in the dispute over a retail investor strategy. Resistance to the Commission's concept is massive - and rightly so, as the Centrum für Europäische Politik has found in a study. According to the study, the Commission's proposals violate regulatory principles.

Go to cepStudy
 
cepInput: A Bank to Boost Renewable Hydrogen
Climate-friendly hydrogen can make an important contribution to reducing carbon dioxide. At present, however, the new technology is hardly profitable for industry. In order for the market to develop quickly and generate the necessary funding, the EU is planning a European Hydrogen Bank. The Centrum für Europäische Politik sees great opportunities in this instrument, but also risks – above all the danger of over-subsidisation.

Go to cepInput
 
Common Ground of Europe
The international website "Common Ground of Europe" is an initiative of the Centres for European Policy Network. On commongroundeurope.eu, the cep collects mainly English-language contributions, articles and interviews from decision-makers and experts from politics, business and academia. We invite you to look at Europe through our shop window. Below you will find examples from the past month.
The Future of AI: Open-Source Utopia or Licensed Monopoly?

Standing on the precipice of a digital revolution, policymakers must weigh the aspirations of open source Artificial Intelligence against the threats of unchecked access. To prevent the immense concentration of power that would result from a controlled licence model, they should choose open source.

Go to article
 
Breton versus Musk: DSA enforcement meets actionism and technical hurdles

Ever since Elon Musk's takeover of Twitter, now known as X, rumours have been circulating that the US billionaire wants to withdraw the short message platform from the European Union. In addition, EU Commissioner Thierry Breton took the viral spread of calls for violence and misinformation following the attack on Israel by Islamist Hamas as an opportunity to publicly send Musk a critical letter and launch a DSA investigation.

Go to article
 
Juliane Kokott: "Europe is where the music is".

She has worked as an Advocate General at the European Court of Justice (CJEU) since 2003: in an exclusive interview with cep’s Head of Communications, Jörg Köpke, Germany's most influential jurist argues in favour of EU enlargement - on one condition.

Go to article
 
7 Questions about EU-Enlargement

What are the strengths and challenges of the forthcoming EU-enlargement? Eleonora Poli and Camille Réau in a discussion on the next steps in the integration of potential EU candidates.

Go to article
 
7 Questions about AI’s Impact on the Financial Sector

At the moment, everyone is talking about Artificial Intelligence (AI) and how it will revolutionise different sectors of the economy. Anselm Küsters answers 7 key questions regarding the influence of artificial intelligence on the financial industry.

Go to article
 
In Conclusion
Dear Readers,
 
Swiss lyricist Margot S. Baumann puts it in a nutshell: "People who beat out empty words have to live with the risk of choking on the dust they raise."
 
Stay with us.
 
Yours
Dr Jörg Köpke
 
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