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Dear Readers,
A few years ago Europe was considered unsexy. Politicians had to have been completely beyond the pale, fallen out of favour with their party or proven themselves wholly unsuited for national politics before they would be "kicked upstairs" to Brussels. But things have changed. The cream of the crop are being drawn to the European capital which is now acknowledged to be where the action is; where the laws get passed that also play a major part in shaping policy in the Member States and thus the fate of 400 million people.
It is not for any want of work or attention as a backbencher in the Bundestag that Marie-Agnes Strack-Zimmermann has been drawn to Brussels as the Liberals' top candidate. On the contrary, the FDP politician has made a name for herself as Chair of the Defence Committee. Without this security expert, who has a penchant for plain speaking, German arms deliveries to Ukraine would probably have been even more hesitant. Standing ovations from the Kyiv Parliament were not only a show of gratitude but also recognition for this commitment - and proof that the fight for European freedom is justified.
It also seems highly likely that Finland’s exceptionally talented Sanna Marin is also going to be working in the European Parliament. Her response, when asked by a journalist how the war in Ukraine could end, was a memorable one: "The way out of the conflict is Russia leaving Ukraine. That’s the way out of the conflict." In Helsinki, the word on the street is that the former Prime Minister will be bringing her foreign policy credentials to bear in Brussels as top candidate of the Finnish Social Democrats.
One thing is certain: In the minds of the decision-makers and thinkers, the movers and the shakers - Europe has caught on. This development is important, right and necessary. Rarely has the old continent been under such pressure - militarily, economically and socially. The tectonic shifts in the geopolitical balance of power mean that Europe is at risk of being crushed between the USA and China. So it is of almost existential importance that the most capable are the ones pulling the strings in Brussels.
Christoph Heusgen, Chair of the Munich Security Conference, put it this way at an event in Freiburg a few days ago: If Europe wants to keep its place among the great powers on the global stage, the heads of government need to step up as foreign policy representatives and guide the fate of the continent - boldly, loudly and forcefully. He is right. It’s time.
Stay tuned!
Yours
Dr. Jörg Köpke
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Eminent new member: Former Finnish head of government Sanna Marin is not the only one being drawn to Brussels.
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Latest EU proposals in focus
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Data Protection: Judgements of the European Court of Justice
On 4 May, the European Court of Justice (ECJ) will issue three important judgements on data protection. In Case C-300/21 (" Österreichische Post"), the Court of Justice will rule on how the right to compensation for non-material damage under Art. 82 GDPR should be interpreted. In essence, the case concerns inter alia the extent to which violations of the GDPR automatically give rise to a right to compensation and whether mere annoyance caused by the violation amounts to non-material damage eligible for compensation or whether a certain level of significance must be exceeded. The ECJ's decision is groundbreaking on the question of the extent to which private individuals - also by means of class actions where appropriate - can claim compensation from companies for data protection violations. In Case C-60/22 ("UZ/Germany"), the Court will decide whether the processing of personal data by a public authority becomes unlawful if the authority fails to keep a register of processing activities, contrary to the GDPR, and whether this gives rise to a right to erasure on the part of the data subject under Art. 17 GDPR and/or a judicial ban on exploitation of the data. In Case C-487/21 (Österr. Datenschutzbehörde u. CRIF), the ECJ will decide, inter alia, to what extent the right of access under Art. 15 GDPR also includes a right of the data subject to "copy" entire documents or text extracts and what exactly is to be understood by a "copy" of personal data.
Live content: Piracy
On 3 May, the EU Commission will submit a Recommendation on piracy of live content, e.g. livestreaming of sporting events. This Recommendation was previously scheduled for 26 April. It comes in response to a European Parliament resolution with recommendations to the Commission on challenges of sports events organisers in the digital environment. The Commission will recommend that Member States and market participants such as rights holders make the best use of existing instruments - e.g. copyright law and the Digital Services Act.
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Pollution: Microplastics
On 17 May, the Commission will present its Proposal for a Regulation to reduce pollution from microplastics, which it already announced in the Circular Economy Action Plan [COM(2020) 98, see cepPolicyBrief 5/2020]. Microplastics are plastic particles smaller than 5 mm. They are purposely added to products such as detergents, or enter the environment unintentionally, e.g. through tyre abrasion. The Commission wants to increase the level of knowledge about microplastics in the environment as well as in food. Certification and regulatory measures are intended to reduce the amount entering the environment.
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Investment strategy for retail investors: Probably no commission ban after all!
On 3 May, the Commission will present a "Retail Investment Strategy". The strategy provides a framework for adapting the Markets in Financial Instruments Directive [MIFID, 2014/65/EU, see cepPolicyBrief 17/2012], the Insurance Distribution Directive [IDD, (EU) 2016/97, see cepPolicyBrief 6/2013] and the Regulation on key information documents for packaged retail and insurance-based investment products [PRIIP, (EU) No. 1286/2014, see cepPolicyBrief 2/2013].
The revision of the aforementioned legislative acts primarily concerns the following issues. Firstly, the Commission wants to create new safeguards for commission-based investment and insurance advice, as it questions the reliability and quality of this advisory model [see cepStudy]. However, a strict ban on commissions is probably off the table for the time being.First, the Commission could propose a ban on commissions for investment advice, as it questions the reliability and quality of this advisory model . Secondly, the Commission will present measures to strengthen the financial literacy of retail investors in order to improve their ability to make sensible investment decisions. Thirdly, the complexity and amount of information to be provided on financial products is to be reduced. Fourthly, investor protection requirements will be lowered for investors who have sufficient knowledge. Fifthly, the rules obliging investment advisors to examine the appropriateness and suitability of an investment product are to be adapted. Finally, the Commission will respond to the trend whereby financial investment is increasingly carried out online, and ensure that investor protection rules are fit for this reality.
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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 on the Chips Act
On 18 April 2023, a preliminary agreement was reached on the Chips Act (cepPolicyBrief No. 8/2022 and cepAdhoc No. 2/2022. The Chips Act aims to produce a massive expansion in microchip production in the EU and reduce the EU's dependence on countries such as the USA, Taiwan and South Korea. According to the political agreement, not only will production facilities for novel chips benefit from special funding opportunities and accelerated approval procedures, but also production facilities for machines used to manufacture chips.
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Trilogue agreement on the Renewable Energy Directive
On 30 March, a preliminary agreement was reached on the amendment of the Renewable Energy Directive [(EU) 2018/2001, RED III, see cepPolicyBrief 1/2022]. The EU thereby sets itself the binding target of increasing the proportion of renewable energy to 42.5% of final energy consumption by 2030. The Member States should nevertheless strive to achieve a renewable energy share amounting to 45%. In addition, sector-specific targets are established for the areas of industry, transport, buildings and district heating and cooling. Thus, for example, industry is to increase renewable energy use by 1.6% annually. By 2030 42% of the hydrogen used is to be produced from renewable sources, and 60% by 2035. Approval procedures for the expansion of renewables will also be simplified using the so-called "acceleration areas” designation.
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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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Antitrust law: Technology transfer agreements
The Commission is currently conducting a Consultation on the revision of the Block Exemption Regulation for technology transfer agreements [Regulation (EU) No 316/2014, "TTBER"]. Technology transfer agreements are agreements whereby one party allows another to use certain industrial property rights - e.g. patents - for the production of goods or services. The TTBER sets out in more detail the conditions under which such agreements are compatible with EU antitrust law.
The submission period for opinions ends on 24 July 2023.
Go to Consultation
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Climate change: EU climate target 2040
The EU wants to reduce its emissions of greenhouse gases (GHG) to net zero by 2050 ("climate neutrality") and by 55% by 2030 compared to 1990 (EU climate target 2030). Under the European Climate Change Act [Regulation (EU) 2021/1119; see cepPolicyBrief 3/2020], the Commission is also required to present a GHG reduction target for 2040. The results of the public consultation will feed into the impact assessment on the EU Climate Target 2040.
The submission period for opinions ends on 23 June 2023.
Go to Consultation
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Travel: Commission wants to push ahead with the digitalisation of travel documents
The Commission wants to introduce a uniform standard for travel documents issued by Member States, such as passports and identity cards. Due to a projected increase in passenger flows within the EU, the Commission sees the need to enable more efficient and secure cross-border travel using digital and biometric technologies . This also applies to passenger check-in procedures. In addition, it aims to improve the overall fight against document fraud and set standards in the area of international travel.
The submission period for opinions ends on 28 June 2023.
Go to Consultation
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3 - 4 May 2023
Stockholm
Informal Meeting of the Employment and Social Affairs Ministers. Among other things, it will be considering how to enable adequate and sustainable social protection in light of the demographic transition (see also cepInput 12/2022).
4 - 5 May 2023
Stockholm
Informal Meeting of the Health Council. It will concern medicines, such as antibiotics (see cepInput 2/2023). The meeting will focus on precautions against shortages and scarcity - both in general and in the event of a crisis.
8 - 11 May 2023
Strasbourg
Session of the European Parliament. This will concern, among other things empowering consumers for the green transition, new EU Urban Mobility Framework and Critical technologies for security and defense.
Up to 13 May 2023
Dublin
The Irish data protection authority must - based on the decision of the European Data Protection Board - decide on the legality of Meta's data transfers to the USA.
15 May 2023
Brussels
Meeting of the Eurogroup. *
16 May 2023
Brussels
Meeting of the Economic and Financial Affairs Council (Ecofin). This concerns among other things the Bank Recovery and Resolition Directive (Daisy Chains).
22 - 23 May 2023
Brussels
Meeting of the Competitiveness Council. *
31 May 2023
Brussels
Session of the European Parliament. *
*The agenda was not yet available at the time of going to press
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cepInput: Catalyzing the EU’s Green Industrial Transformation
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Europe is to become climate neutral. However, massive economic efforts are needed to achieve this technology transfer. The Centres for European Policy Network (cep) has studied a sample of 105 start-ups in the field of clean technologies. The result: a lack of venture capital and excessive bureaucracy stand in the way of green transformation in Germany, France and Italy.
Go to cepInput 5/2023
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cepPolicyBrief: Instant Payments
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Cost-effective and within seconds: The Commission plans to make real-time transfers, so-called instant payments, available for EU consumers by default. The Centrum für Europäische Politik (cep) welcomes the approach to minimise fraud risks but rejects the draft law in general as too massive and unrealistic.
Go to cepPolicyBrief 4/2023
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cepPolicyBrief: Euro 7 Emission Standards for Motor Vehicles
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The Commission wants to reduce emissions of traffic-related air pollutants such as nitrogen oxides, particulate matter and ozone still further. To this end, Brussels is counting on the introduction of so-called Euro 7 standards. The cep sees the stricter requirements as a premature end to combustion engines through the back door. The current standards suffice to drastically reduce traffic-related pollutants.
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cepPolicyBrief: Single Market Emergency Instrument
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Various crises increasingly lead to shortages in the supply of relevant goods and services. The Commission wants to counteract this with the so-called Single Market Emergency Instrument (SMEI). In future, state intervention is to ensure availability even in tense situations. The cep criticises the EU plan as being legally contestable in large parts.
Go to cepPolicyBrief 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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„Western Balcans are Part of the EU“
Davor Ivo Stier, Croatian-Argentine politician and member of the Croatian Parliament, explains the advantages of Croatia‘s EU membership. In his eyes the European project is not finished yet.
Go to Article
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Advantage Consensus-Building
Peace, freedom, democracy: Europe seems to be more and more a project of phrases and Sunday sermons. But this is only half the truth. Why seemingly disadvantageous characteristics of the European Union are the very secret of its success.
Go to Article
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Dear Readers,
Jaques Delors was right: “Europe is healthier than many believe. The real disease of Europe is its pessimists!”
On that note, let’s look to the future with optimism.
Yours
Dr. Jörg Köpke
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