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Dear Readers,
Former German President Roman Herzog, leading protagonist in the establishment of cep 17 years ago, is above all remembered for his so-called "Germany needs a jolt" speech in Berlin's Hotel Adlon on 26 April 1997.
Then too, Germany was considered the "sick man of Europe" and suffering not only from socio-political inadequacies but also huge socio-economic deficits. The Kohl era lay like mildew over the reunified Federal Republic, but a few years later, the new red-green coalition government acted on Herzog's scathing analysis, and its reforms finally led the country into a phase of renewed prosperity.
Almost two decades on and once again there is huge need to catch up in many areas of public, political, social and economic life. An ageing society, excessive and paralysing bureaucracy, a lack of motivation, underdeveloped digitalisation, dilapidated roads and bridges, a failed migration policy and grave errors in energy policy all cast doubt on Germany's future viability.
Herzog, even then, talked unsparingly of the "erosion of social security due to an inverted age pyramid", the "economic, technological and political challenge of globalisation", the "loss of economic dynamism, the ossification of society" and "an unbelievable mental depression" - words that have lost none of their relevance.
Today, more urgently than ever, Germany needs another jolt. The resources are there. The iron is still glowing. What is to stop us from achieving once again what Herzog called for in 1997? No question: it will take a great deal of innovation, courage and sacrifice to avert the threat of deindustrialisation, the brain drain and the destruction of social systems. It is not too late if the problems are clearly identified and decisively tackled. There is no other way.
Stay with us.
Yours,
Dr Jörg Köpke
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"Germany needs a jolt": Former Federal President Roman Herzog called for a new start in economic policy in 1997.
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Latest EU Proposals in Focus
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Company Taxation: Calculation and Distribution of Profits
On 12 September, the Commission will present a proposal for a common framework for company taxation in the EU. On the one hand, it intends to propose common rules for determining the tax base. On the other hand, it wants to establish rules for the distribution of taxable profits between EU countries. The criteria for the distribution key will be employees, turnover and tangible and possibly intangible assets. It is not yet known how these factors will be weighted and which companies will be covered.
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Circular Economy: Sustainable Products
Following the summer break in Brussels, trilogue negotiations between the European Parliament, the Council and the Commission on the proposed Ecodesign Regulation [see cepPolicyBrief 10/2022]will start. While the current Ecodesign Directive [2009/125/EC] only covers "energy-related" products - such as dishwashers and washing machines - the scope of the new Ecodesign Regulation is to be extended to almost all physical goods. It will also address product characteristics other than energy consumption. For example, products should be more durable throughout their life cycle and easier to repair, reuse and recycle.
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Late Payments: Better Protection for Small and Medium-sized Enterprises (SMEs)
On 12 September, the European Commission will present a proposal to revise the Directive on combating late payment in commercial transactions [2011/7/EU, see cepPolicyBrief]. The Commission wants to adapt the Directive as more than 60% of commercial invoices are still not paid on time. Small and medium-sized enterprises (SMEs) are particularly affected. The corona pandemic and the energy crisis have made the situation even worse. To tackle this problem, the Commission plans in particular to promote the use of modern digital payment instruments, improve enforcement and increase transparency of companies' payment behaviour.
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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: Battery Regulation
On 17 August 2023, the new Battery Regulation came into force. It applies to all batteries, including portable, industrial, starter and light transport batteries. The aim is to make them longer lasting, more sustainable and easier to replace. The whole life cycle of a battery will be regulated. This includes requirements for a mandatory minimum content of recycled materials (recyclates) for industrial and starter batteries. In addition, end-users will be able to remove and replace device batteries, for example from smartphones or tablets. Companies will have 42 months from the date of entry into force to adapt their products to this requirement. There are also requirements for battery disposal, such as collection targets for spent portable batteries for manufacturers.
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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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Food Waste: Commission Proposes Legally Binding Targets
In a world of scarce resources, food waste is a societal problem that can to some extent be prevented. For example, a misunderstanding of best-before dates leads to food being thrown away too soon (see cepInput 13/2021). As part of its proposal to revise the so-called Waste Framework Directive [COM(2023) 420 final], the Commission has put forward measures to reduce food waste across the EU. The proposal also implements the "Farm to Fork" strategy (see cepPolicyBrief). Specifically, the Commission proposal includes legally binding targets for Member States. These include reducing food waste by 30% per capita in the retail, wholesale, catering and household sectors. In addition, food waste should be reduced by 10%, especially in processing and production. The baseline year is 2020 and the targets are to be achieved by the end of 2030. Stakeholders can now comment on the Commission's proposal.
The deadline for comments is 18 October 2023.
Go to Consultation
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Standardisation: EU to Review Relevant EU Regulation
The Commission has launched a Consultation on the review of Regulation (EU) No. 1025/2012 on European standardisation. It wants to launch a debate on the extent to which the Regulation is still effective, efficient, coherent and relevant today, more than 10 years after its entry into force. In particular, it will examine whether the European standardisation system is still able to deliver standards for a "green, digital and resilient single market" that are also globally relevant. It will also examine whether the European standardisation process is still able to cope with rapid technological change and global competition, how to successfully involve as many stakeholders from society as possible and how to structure the financing of the EU standardisation system.
The deadline for comments is 29 September 2023.
Go to Consultation
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11-14 September 2023
Strasbourg
Session of the European Parliament: The protection of geographical indication for craft and industrial products and the Single Market Emergency Instrument will be discussed, as well as a new regulation on endogenous substances such as blood and plasma (see cepPolicyBrief 15/2022).
13 September 2023
Strasbourg
European Parliament: On 13 September, Commission President Ursula von der Leyen will deliver her State of the Union address. In addition, the final vote on the revised Consumer Credit Directive (see cepPolicyBrief 4/2022) will take place during the plenary week.
15-16 September 2023
Santiago de Compostela
Informal meeting of economy and finance ministers. One of the topics will be the appointment of a new President of the European Investment Bank.
19 September 2023
Brussels
Meeting of the General Affairs Council.
25 September 2023
Brussels
Competitiveness Council (Internal Market and Industry).
27-28 September 2023
Murcia
Informal ministerial meeting of the General Affairs Council.
2-5 October 2023
Strasbourg
Meeting of the European Parliament: Discussions will include product liability.
2 October 2023
Strasbourg
Session of the European Parliament: Discussions will include the European Health Data Space (see cepPolicyBrief 13/2022) and product liability (cepPolicyBrief 2/2023).
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cepPolicyBrief: Air Quality
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Clean air is vital for people and the environment. That is why the EU wants to further reduce air pollution in Europe. While the Parliament wants to adopt the World Health Organisation's (WHO) strict guideline values one-to-one in the new Air Quality Directive, the Centre for European Policy (cep) considers the more moderate Commission proposal to be appropriate and realistic.
Go to cepPolicyBrief
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cepInput: Alcohol Labelling in the EU
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Tens of thousands of people in the EU die every year as a result of excessive alcohol consumption. That is why Ireland wants to become the first member state to require a warning label similar to the one on cigarette packets for alcoholic beverages from 2026, with the approval of the European Commission. The Centres for European Policy Network (cepN) says this so-called whisky label makes sense but argues that it should be introduced uniformly across the EU.
Go to cepInput
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cepInput: European Right to Repair
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cepPolicyBrief: Right to Repair Becomes Obligation to Repair
Smartphones, laptops, refrigerators: electrical appliances in particular should be easier to repair for the sake of the environment. That is why the EU Commission wants to introduce a so-called right to repair with a new directive on repair subsidies. According to the Centrum für Europäische Politik (cep), the Commission's proposal goes too far.
Go to cepPolicyBrief
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The 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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The European Legacy of German Hyperinflation
Social media provides an unprecedented insight into public discourse. Aggregating all the tweets on hyperinflation in Germany, France and Italy reveals clear differences in European attitudes to rising costs. EU policy makers need to take these differences into account.
Go to article
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The Self-destruction of the Centre
The centre of society risks self-destruction by failing to maintain its ability to enter into discourse. The only attitude that can endure in a free pluralist ordoliberal system is that of shared responsibility for constructive discourse.
Go to article
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Roman Herzog's analysis is almost timeless in its relevance: "What do I see in Germany? Despondency reigns supreme, crisis scenarios are being cultivated. There is a sense of paralysis in our society". Let's make sure that we overcome this paralysis once again.
Yours,
Dr Jörg Köpke
Centrum für Europäische Politik
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