| | Dear Readers,
The European election on 9 June is more than just a visit to the ballot box; it is a date with destiny. The vote concerns nothing more and nothing less than the European project. It is about open borders, a free market and the principles of the rule of law. In short: it is about the Europe that has guaranteed a free and democratic basic order, peace and prosperity to a good 400 million people for almost eight decades now.
However, these achievements are by no means met with unreserved approval from all quarters. Nationalist, populist, and anti-European parties are on the rise. An unprecedented sequence of existential crises has left many citizens feeling weary. Following the financial crisis, Covid and the Ukraine war, along with the resulting loss of prosperity, they increasingly see Brussels as responsible for their malaise.
Rejection levels are highest in Poland and Hungary, with well over half of voters taking this line. At almost 50 percent, however, the number of EU sceptics in Belgium is also taking on dramatic proportions. In France, the figure is 40 per cent. And it is by no means only right-wing populists who reject the European Union. Left-wing populists have long been at least as successful in their rhetoric against the supposedly aloof Brussels establishment. It is a dangerous departure from the consensus of the moderate centre which has been successful for so long.
Europe is needed more urgently than ever. The US and China form powerful opposing poles. Their battle for hegemony could soon set the world on fire. Added to this is the real threat from Russia. The old continent does not need centrifugal forces; it needs cohesion. This is currently clear to those countries that are still waiting in the wings and are under threat - the countries of the Western Balkans, Moldova, Georgia and Ukraine.
The European peace and prosperity project is under threat. Things may be far from perfect, it is true, but one look at autocratic dictatorships that don't give a fig about human life, free speech, climate protection or the fair distribution of resources should be warning and deterrent enough.
We hope this April newsletter brings you new insights and provides an enjoyable read.
Stay tuned!
Yours
Dr. Jörg Köpke |
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| | | | Dissatisfaction is growing: after the European elections, the democratic centre is in danger of shrinking! |
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| | | | Latest EU Proposals in Focus |
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| | | Letta Report: Future of the Single Market
On 17 April, former Italian Prime Minister Enrico Letta will present his report on the future of the Single Market. The high-level report will propose measures to improve the Single Market, particularly in the areas of telecommunications, energy and finance. Letta also wants to see small and medium-sized enterprises making greater use of the Single Market’s potential. And lastly, the competitiveness of the European economy will be improved and companies relieved of bureaucracy. |
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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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| | | Supply Chain Directive Adopted by the Council
On 14 March 2024, the Council adopted a watered-down version of the Corporate Sustainability Due Diligence Directive (CSDDD, cepPolicyBrief 16/2022). The negotiators from the Council and Parliament had originally reached a compromise on 14 December 2023 but it met with considerable resistance in the Council. The Directive that has now been adopted by the Council is reduced in scope. It applies to companies with more than 1,000 employees (previously 500) that also generate a global turnover of more than € 450 million (previously € 150 million). However, companies below these thresholds are still indirectly affected by the Directive if they operate in the value chain of a company that is within the scope of the Directive. The obligation for companies to provide financial incentives for managers who promote the implementation of climate change plans has been cancelled. For downstream activities, the Directive now only applies to direct business partners (previously, indirect business partners were also covered). The European Parliament still has to give its approval for the Directive to come into force. The vote is scheduled to take place between 22 and 25 April. Approval is considered likely. |
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| | | | | Trilogue Agreement on Packaging Regulation
On 4 March 2024, a provisional political agreement was reached on a new Packaging Regulation (see cepPolicyBrief 3/2023) . The aim of the Regulation is to create an EU-wide circular economy for sustainable packaging. Packaging volumes are supposed to fall generally by 5% by 2030, 10% by 2035 and 15% by 2040. In addition, the amount of unnecessary packaging is to be reduced by stipulating a maximum empty space ratio of 50% in grouped, transport and e-commerce packaging. The new EU rules ban certain types of packaging, including very lightweight plastic bags and single-use plastic packaging, e.g. for fruit and vegetables. In addition, there are binding targets for the reuse of packaging for 2030 and non-binding targets for 2040, which vary depending on the type of packaging. By 2030, all packaging must be recyclable and contain certain proportions of recycled materials ("recyclates"). Exceptions apply to light wood, cork, textiles, rubber, ceramics, porcelain and wax. In future, for example, certain plastic packaging, depending on the area of application - e.g. food - or type of plastic - e.g. polyethylene terephthalate (PET), must contain a minimum of between 10% and 30% recyclates as from 2030 and between 30% and 65% from 2040. In addition, food contact packaging that exceeds a certain threshold of PFAS (perfluorinated and polyfluorinated alkyl substances) will be banned.
Trilogue Agreement on Plant Health Regulation
On 5 March 2024, a provisional political agreement was reached on the revision of the Regulation on protection against plant pests [(EU) 2016/2031, "Plant Health Law"]. The procedures for identifying and listing high-risk plants and the procedures for submitting and examining requests for temporary derogations from import regulations for plants from non-EU countries are to be improved. Reporting obligations will be simplified by way of digitalisation. There are also plans to set up an EU plant health emergency team to help with new pest outbreaks in the EU, for example. |
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| | | | | Cybersecurity I: Establishment of a new Cyber Solidarity Act
On 6 March 2024, the Council and the European Parliament reached a provisional agreement for a new Regulation on measures to strengthen solidarity and capacities in the Union to detect, prevent and respond to cybersecurity threats and incidents ("Cyber Solidarity Act"). The Commission already submitted its proposals on this in April 2023 [COM(2023) 209]. The Regulation most notably aims to strengthen the EU's capacity to detect serious cyber threats and incidents, and to improve the protection and preparedness of critical facilities. Such facilities should also be tested for potential vulnerabilities on the basis of common risk scenarios and methods. In addition, a new "EU cybersecurity reserve" is to be established which aims to provide support in the event of serious cybersecurity incidents, and thereby facilitate a quick response and action to contain the effects. It consists of the provision of emergency services by providers from the private sector. The provisional agreement still has to be formally adopted by the European Parliament and the Council. In Parliament, this is planned for the plenary week from 22-26 April 2024.
Cybersecurity II: Adaptation of the Cybersecurity Act
On 6 March 2024, the Council and the European Parliament reached a provisional agreement to amend the Cybersecurity Act with regard to managed security services. The Commission already submitted its proposals on this in April 2023 [COM(2023) 208]. According to the current Cybersecurity Act [Regulation (EU) 2019/881, see cepPolicyBrief 16/2018] the Commission can adopt European cybersecurity certification schemes for ICT products, services and processes by means of implementing acts. With the targeted amendment to the legal act, the Commission will also be able to introduce such schemes for the cybersecurity certification of "managed security services". These services are provided to customers by specialised companies, serve to support customers in cybersecurity risk management activities (e.g. incident handling, penetration testing, security audits) and are ultimately important services for prevention, detection, response and recovery in relation to cybersecurity incidents. The provisional agreement still has to be formally adopted by the European Parliament and the Council. In Parliament, this is planned for the plenary week from 22-26 April 2024. |
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| | | | | 11 April 2024
Luxembourg
In the proceedings in case no. C-768/21, the ECJ will decide whether a data protection supervisory authority that has identified a data protection breach is obliged to take one of the remedial measures listed in Art. 58 (2) GDPR against the controller, e.g. impose a fine. The ECJ last ruled in December 2023 that supervisory authorities have discretionary powers with regard to the appropriate and necessary remedies, the exercise of which can only be reviewed to a limited extent, although official decisions on the merits of submitted complaints are in principle fully reviewable in terms of content. However, the ECJ still has to decide on the question of whether an authority that has identified an infringement must necessarily take or select at least one of the measures from the list under Art. 57, 58 GDPR - i.e. its discretion is restricted to the choice of measure - or whether it has discretion to refrain from imposing any measures in individual cases despite having identified infringements.
10 - 11 April 2024
Brussels
Session of the European Parliament. Among other things, this will include voting on the adjustment of deadlines for the adoption of sector-specific sustainability reporting standards.
22 - 26 April 2024
Strasbourg
Session of the European Parliament. Among other things, this will involve final voting on numerous legislative proposals.
In the digital area, these include (1) the Regulation on measures to reduce the cost of deploying gigabit networks ("Gigabit Infrastructure Regulation"), (2) the Regulation amending the Cybersecurity Act with regard to managed security services and (3) the Regulation on strengthening solidarity and capacities in the EU to detect, prepare for and respond to cyber security threats and incidents ("Cyber Solidarity Act").
In the area of financial market regulation, a vote is to be held on (1) a new legal framework for the recovery and resolution of insurance and reinsurance companies and (2) the revision of the Solvency II Directive, which is important for (re)insurance companies (see cepPolicyBrief 2/2022). In addition, (3) the Regulation amending the Market Infrastructure Regulation (EMIR) on derivatives clearing is to be adopted (see cepStudy), and the legislative proposals under the EU Listings Act will be adopted, in particular (4) the Regulation amending the Market Abuse Regulation and the Prospectus Regulation (see cepPolicyBrief 9/2023) and (5) the Directive on multiple-vote share structures (see cepPolicyBrief 7/2023).
Also, the European Parliament wants to finalise its respective negotiating positions on many important projects. These include (1) revision of the 2nd Payment Services Directive (PSD 2) and (2) introduction of a new Payment Services Regulation. MEPs also intend to vote on their positions on (3) the EU Retail Investor Strategy (see cepStudy) and (4) Revision the Regulation to modernise the key information document. (5) The negotiating position on the Regulation to combat late payment in commercial transactions (see cepDossier) will also be adopted. Last but not least, Parliament's positions on the revision of (6) the Regulation Single Resolution Mechanism (SRMR), (7) the Bank Recovery and Resolution Directive (BRRD) and (8) the Deposit Guarantee Scheme Directive (DGSD, see cepPolicyBrief 12/2023) are also on the agenda. |
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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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| | cepDossier: Microplastics |
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| | | In the EU Plastics Strategy and the Circular Economy Action Plan, the Commission announced that environmental pollution caused by microplastics is to be reduced. Its zero-pollutant action plan aims to reduce the release of microplastics into the environment by 30% by 2030, compared to 2016 levels.
To the cepDossier 2/2024 (in German) |
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| | | | cepDossier: Carbon Footprint of Transport Operations |
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| | | As lower-emission vehicles are increasingly being used in commercial passenger and freight transport, transport companies want to advertise reductions in the carbon footprint of their transport operations. To date, there are no standardised EU rules on this which means there is a risk of a lack of comparability or greenwashing.
To the cepDossier 3/2024 (in German) |
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| | | | | | cepInput: Competition in Generative Artificial Intelligence |
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| | | The Commission is reviewing merger control proceedings against Microsoft. This is due to the close collaboration between the US tech giant and OpenAI, the world's leading company for generative artificial intelligence (AI). The Centrum für Europäische Politik (cep) warns that US tech companies already dominate the AI value chain and calls for strict competition law controls.
Go to cepInput |
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| | | | cepAdhoc: Military Aid to Ukraine: How Can the EU Live up to Expectations? |
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| | | Times are getting increasingly difficult for European security. Russia is becoming more and more aggressive on the Ukrainian front and elsewhere – including cyberspace with disinformation campaigns and cyberattacks. The US is unlikely to be able to vote for more Ukrainian military aid.
Go to cepAdhoc |
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| | | | cepAnalyse: Financial Data Access |
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| | | The Commission wants to remove barriers so that third parties can more easily develop new products and services using customer data from financial institutions. The basis for this is a legal act for an open finance framework. The Regulation regulates the access, transfer and use of financial customer data. The Centrum für Europäische Politik has reservations. The Regulation is neither proportionate nor practicable.
Go to cepPolicyBrief |
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| | | | cepAdhoc: Between Regional Elections and Italian Leadership |
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| | | Italy recently held regional elections that could have a major impact on European politics as a whole. The elections in Sardinia and Abruzzo have confirmed the strength of the Italian centre-right coalition. However, the right is in a difficult position as it maintains a blatant ambivalence between the anti-European, pro-Trump and pro-Putin positions of Matteo Salvini's Lega and the increasingly pro-EU, pro-NATO and pro-Ukraine positions of Prime Minister Giorgia Meloni in recent times.
Go to cepAdhoc |
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| | | | cepPolicyBrief: Recycling in the Automotive Industry |
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| | | The EU wants to expand the circular economy in the automotive sector. The Centrum für Europäische Politik (cep) generally welcomes the plans. However, according to a new study by the European policy think tank, the targets could be too ambitious. The envisaged rates for reuse and recycling cannot be reconciled with bans on toxic substances.
Go to cepPolicyBrief |
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| | | | | "European unity was the dream of a few. It became a hope for many. Today, it is a necessity for us all." The words of former Federal Chancellor Konrad Adenauer, in a government statement to the Bundestag in 1954, are more relevant than ever seventy years later.
Stay with us!
Yours
Dr. Jörg Köpke |
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