Table.Briefing: Europe

Aid guidelines + CAP reform + Industry climate demands + Traffic light climate + DSA + Political advertising

  • State aid guidelines: Commission responds to criticism
  • CAP reform: end of debate, start of implementation
  • BDI Climate Congress: German industry’s list of demands
  • Traffic light coalition: coal phase-out 2030 and end for internal combustion vehicles 2035
  • EU Commission wants to restrict online political advertising
  • DSA: EP negotiators reject media exemption
  • MEPs call for new rules on legal labor migration
  • E.ON: own hydrogen division
  • Profile: Chris Piallat – Digital advisor to the Green Party in the German Bundestag
Dear reader,

The traffic light coalition is just about to cross the finish line. But with the coalition agreement, political declarations of intent are being formulated – which have yet to become reality. And while the traffic light is presenting itself and its plans in Berlin today, those involved in Brussels and Strasbourg are working at full steam.

The EU Commission is giving in on the state aid guidelines that are so important for the economy. Till Hoppe has researched for you how this relates to the EEG levy and why a new calculation formula accommodates German business interests. The new list of eligible sectors includes more than 100 industries – more than twice as many as in the first draft in summer. But that is still significantly fewer than before.

Actually, the Common Agricultural Policy should contribute a lot to the goals of the Green Deal. But the ambitions of the package are not as pronounced as the Greens and SPD would have liked. A difficult package for the new coalition in Berlin, which must now develop the German strategic plan for this, Lukas Scheid reports.

The new German government will also have to deal with demands from German industry: BDI President Siegfried Russwurm presented a five-point catalogue of demands on climate yesterday, that offers sufficient potential for dispute. Timo Landenberger reports on this – and on calls for a scrappage premium for combustion engines.

There are some discussions coming up for the potential Green “transformation minister” Robert Habeck, whose portfolio is now being widely discussed in Berlin – while Christian Lindner now seems to be assured of the finance ministry.

But labor requires people: Jasmin Kohl listened to the LIBE Committee in the European Parliament, which is issuing an initiative report calling on the Commission to create more legal migration routes to Europe which is threatened by aging.

Meanwhile, as announced, the rapporteur and shadow rapporteurs reviewed the Digital Services Act. Compromises were found, and other ideas were discarded, including the media exemption.

Have a nice day and stay safe!

Your
Falk Steiner
Image of Falk  Steiner

Feature

State aid guidelines: Commission responds to criticism

The EU Commission is responding to criticism of the planned framework for climate and energy subsidies. However, the authority does not go as far as demanded by German industry and the German government. This is shown by a new draft available to Europe.Table.

The new climate and energy aid guidelines (KUEBLL) set out the conditions under which member states may promote the objectives of the Green Deal with state subsidies. The Commission intends to present new guidelines by the end of the year, replacing the previous ones from 2014. As this is not a normal legislative procedure involving Parliament and Council, the new guidelines are expected to enter into force as early as the beginning of 2022.

An initial draft from the summer had caused an uproar, especially among energy-intensive industries in Germany. This is because the proposal by Competition Commissioner Margrethe Vestager envisaged considerably tightening the conditions for relief for electricity-cost-intensive companies. In its statement, the German government warned that hundreds of companies would lose their entitlement to a cap on the EEG surcharge as a result.

More flexible on trade intensity

The Commission has now responded to this. The new list of eligible sectors includes more than 100 industries – more than twice as many as in the first draft from the summer. However, there are still significantly fewer than in the previously applicable guidelines.

The CDU MEP Markus Pieper, therefore, criticizes the new draft as insufficient: “The new proposal comes closer to the real competitive situation of the companies,” says the spokesman of the parliamentary group of medium-sized businesses in the CDU/CSU group. It is to be welcomed that more companies make it onto the carbon leakage protection list again, but that is by far not enough: “Since the Green Deal massively intensifies global competition, more industries must be relieved compared to the currently valid list – and not fewer. “

Compared to the first draft, the Commission has changed the method by which eligible sectors are determined. According to the draft from the summer, these had to demonstrate a trade intensity of at least 20 percent and an electricity cost intensity of at least 10 percent. According to the new draft, aid would be considered eligible if the multiplication of the values for trade and electricity cost intensity results in at least 2 percent.

This essentially corresponds to the previous thresholds of 20 and 10 percent but allows more flexibility in the two individual indicators. The German Chemical Industry Association (VCI), for example, had criticized the Commission for placing too much emphasis on trade intensity, i.e., the export orientation of sectors and companies that are in international competition.

Taking this factor into account is intended to prevent the migration of CO2-intensive production abroad (carbon leakage). But the indicator is controversial. After all, critics say, a company is in international competition even if it only acts as a supplier for domestic industry but has to hold its own against competition from abroad.

The Commission has also adjusted the calculation method for an alternative threshold for sectors at high risk of migration, such as aluminum or copper. The authority has added a new clause according to which the Commission can also add new sectors to the eligibility list at a later date if they meet the criteria over a period of three years.

Reconciliation process still ongoing

The Commission is also taking a step towards the industry with regard to the aid intensity and burden limit. However, the guidelines may still change; the coordination process between the Commission’s Directorates-General involved is currently underway.

Experts criticize the additional workload that the new state aid rules could entail. “The Commission wants to promote the objectives of the Green Deal through the new guidelines but garnishes this with additional bureaucracy,” says Henning Wendt from the law firm Görg. For example, auctions would become even more prominent in the awarding of subsidies, which could deter companies because of the effort involved.

In addition, member states will in the future first have to consult market participants before submitting a support measure to the Commission for approval, which will mean additional work, Wendt said. “Therefore, it remains to be seen how practicable the new guidelines will be in practice.” With Timo Landenberger

  • Climate & Environment
  • Climate protection
  • Energy
  • European policy

CAP reform: end of debate, start of implementation

The result had been expected. The preliminary deal, which representatives of the EU Parliament had already concluded with negotiators from the Council and the Commission in the trilogue at the end of June, also cleared the hurdle of the plenary yesterday. The three regulations on the reform of the EU’s common agricultural policy were adopted by around two-thirds of MEPs. If the Council now also agrees, which is expected, the new CAP will come into force starting 2023.

Farmers who want to receive payments from the CAP will then have to set aside at least three percent of their farmland for the promotion of biodiversity. At least 25 percent of direct payments to farmers are to be distributed for climate and environmentally friendly farming methods – the so-called eco-schemes. A total of 35 percent of the €387 billion CAP budget is to be earmarked for measures to promote climate and environmental protection, biodiversity, and animal welfare. The reform will be implemented by the 27 member states, each of which will have to submit a national strategy plan to the Commission for consideration, setting out how they will use the instruments to achieve the CAP objectives in line with the Green Deal targets.

Peter Jahr, rapporteur of the CAP Strategic Plan Regulation for the EPP, called it a “good day for European agricultural policy and farmers” in the parliamentary debate in Strasbourg. Because that’s what it’s all about, he stressed, as well as security of supply. It had been important to deliver a compromise on time, rather than “having an agricultural debate for life,” he said. With this, he tried to appease those members of Parliament who had tried to prevent the reform package until the very end.

CAP headwinds fizzle out

Jahr thus addressed above all the European Greens and some Social Democrats, including the SPD in the EU Parliament. They voted unanimously against the reform because the new CAP was more of a “business as usual” instead of an ecological reform in the sense of the Green Deal. Subsidies would continue to go to “multinational holdings, large landowners and huge fattening farms”, tweeted Delara Burkhardt, the EU SPD’s environment and climate policy spokeswoman. Small and medium-sized farms would “continue to be forced to give up”.

Martin Häusling, the Greens’ shadow rapporteur for the CAP strategy plans, criticized the fact that farmers’ participation in the new eco-schemes was only voluntary. For him, it was a “black day for climate policy”. Without a “mandatory review of compatibility with the Green Deal”, the result will be that the future CAP will do even worse than before, Häusling said on Tuesday. He also criticized the fact that the more ambitious farm-to-fork strategy and the biodiversity strategy are only mentioned in passing in the new CAP instead of being a central component for implementation. However, the headwind from the European Greens and the German Social Democrats has fizzled out in view of the broad approval in Parliament.

However, the opponents of the CAP reform have not yet given up hope. They are now counting on the national strategy plans. Green MEP Bas Eickhout announced that he would keep a close eye on the Commission when evaluating the plans. Especially with regard to the reduction of pesticides, Eickhout said.

A matter for the new government

The German strategy plan is still being coordinated between the Federal Ministry of Agriculture and the Federal Ministry for the Environment. It is likely to remain there until the coalition negotiations are concluded. Although the deadline for submission to the Commission is January 1st, 2022, an extension of the deadline is not a significant hurdle.

Agriculture Minister Julia Klöckner made it clear once again on Tuesday that her proposal was “on the table” and called on the traffic light coalition to reach an agreement on the outstanding points. Her ministry would like to adopt its elaborated plan in the cabinet during this executive term and then submit it to the Bundesrat for approval. The aim is to bring about a decision by the Bundesrat no later than the plenary session on December 17th, a spokesman for the ministry told Europe.Table. The SPD-led BMU, however, will hardly go along with this and will instead take up the paper again with the future coalition partners, as was heard from Green party circles.

The result could be a more ambitious interpretation of the CAP in Germany. For example, the new German government could prescribe stricter measures for climate-resilient and drought-resilient agriculture, for example, by imposing far-reaching requirements for the protection of carbon-rich soils. The promotion of agroforestry – a combination of arable and livestock land that has a high CO2 storage capacity – could also be encouraged to make agriculture more climate-resilient. The current BMEL had long paid little attention to this branch of the agricultural sector, and even in the needs analysis for the German strategic plan, agroforestry systems are only mentioned in passing.

However, the member states’ room for maneuver in implementing the CAP is only conducive to climate protection if the national governments have any interest at all in making agriculture more climate-friendly. Germany’s new government wants to be a “climate government”. A corresponding design of the national CAP strategy plan can therefore be expected. However, this is not the case for other EU states. In the past, it has often been shown that in countries such as Hungary or the Czech Republic, climate protection has played a rather subordinate role in the distribution of EU agricultural subsidies.

  • Climate & Environment
  • Climate Targets
  • European policy
  • Farm to Fork Strategy

BDI Climate Congress: German industry’s list of demands

At the Climate Congress of the Federation of German Industries, business representatives were not holding back their criticism of climate policy from Berlin and Brussels and made clear demands – especially of the Federal Government that is now being formed.

Previously, the BDI and the Boston Consulting Group had published a study entitled “Climate Paths 2.0“, in which they calculated the investment required to implement German climate protection measures at around €860 billion. According to the study, achieving the legally agreed climate protection targets for 2030 will require emissions to be almost halved compared to 2019, and current climate policy is not sufficient to achieve this in any sector. At the Climate Congress, BDI President Siegfried Russwurm, therefore, presented a five-point plan with concrete demands on the future German government.

  • A more rapid development of infrastructure must be prioritized. This applied to both the transport and energy sectors, with greater consideration being given to rural areas. The BDI estimates that infrastructure expansion alone will cost €145 billion by 2030. It is also essential that planning and approval procedures be greatly accelerated and that court proceedings be shortened considerably.
  • The industry expects significantly higher operating costs as a result of the switch to climate-neutral technologies. In order to remain competitive, it is crucial to relieve companies of the additional costs. The BDI is calling for federal subsidies for electricity transmission grid fees, an extension of the peak compensation for electricity tax, and a reduction in the EEG levy. For particularly energy-intensive companies, temporary operating cost subsidies via carbon contracts for difference are necessary. The European Union is currently revising its guidelines on state aid for environmental protection and energy (KUEBLL/CEEAG). The reform is intended to allow governments to pay out much higher subsidies to promote the green transformation. However, the draft also proposes to significantly tighten the conditions for reducing electricity levies.
  • In the event of an earlier phase-out of coal-fired power generation, the security of energy supply would only be possible through a considerable increase in the number of gas-fired power plants. The financing of these would have to be ensured via the EU taxonomy. The BDI calls on Germany to focus on this in Brussels as well, instead of blocking the taxonomy through discussions with neighbouring countries about their energy mix.
  • The future German government should review the effectiveness of the instruments of the Climate Protection Act. Sector-specific annual targets should be abolished, they demand. Failure to meet them would trigger short-term emergency measures that would be inefficient and expensive. A flexible, forward-looking monitoring with early indicators would be more target-oriented, it said. “If less is possible in one sector, then we have to find alternatives elsewhere,” Russwurm said.
  • It is also crucial to take greater account of the global dimension of climate change, he added. The BDI calls on the future German government to use the German G7 presidency next year to focus on more international cooperation, primarily in the area of CO2 pricing. The establishment of climate clubs made up of ambitious countries would only be helpful if the major emitters China and the USA were involved. In addition, Germany will continue to be dependent on energy imports. Russwurm calls on politicians to start talking to trading partners now and to secure quotas of green energy.

When it comes to climate protection, there is a clear division of responsibilities between business and politics, said Hildegard Müller, President of the German Association of the Automotive Industry (VDA), at the Climate Congress. “We will only be successful if we prove that climate protection and growth are not contradictory.” For this to happen, however, he said, politics must “come down to the mills of transformation.” Especially in Brussels, there is still a lack of understanding for the practical implementation of climate protection measures, Müller criticized.

Scrappage scheme vs. internal combustion vehicle stock?

For the automotive sector, in particular, it is important not to lose sight of the number of vehicles on the road. “Even if we bring 15 million EVs onto the market in Germany by 2030, there will still be twice as many combustion engines on the road,” said the VDA president. In addition to fleet limits and the expansion of the charging infrastructure, the key question is, therefore: Who can afford a new car and how often? “We will have at least 30 million cars in Germany, where we can only make a contribution by turning to synthetic fuels.” Müller is calling for a quota of 30 percent synthetic fuels by 2030.

Gunther Kegel, President of the German Electrical and Electronic Manufacturers’ Association (ZVEI), goes one step further. Selling the old stock of cars will soon no longer be worthwhile for the owners. “So they will be driven until they break apart. The only way to shorten that is to introduce a scrapping premium.”

In addition, Kegel demanded the same charging infrastructure for rural areas as in conurbations. Due to the significantly longer refueling process compared to liquid fuel, the space required will be enormous. For motorway service stations, in particular, he said, the challenge would be great if vehicles took 20 to 30 minutes to use the charging point instead of two to three minutes. “We need to get to a million charging points in Germany quickly, otherwise we’ll slow down our own path to e-mobility.”

  • Autoindustrie
  • Climate Policy
  • Flottengrenzwerte

News

Traffic light coalition: coal phase-out in 2030 and end for combustion engine in 2035

The planned traffic light coalition has agreed on key points in the climate chapter. According to information from negotiating circles on Tuesday, the coalition agreement will include a coal phase-out by 2030.

The date will be in the coalition agreement, several people involved in the talks told the Reuters news agency on Tuesday. The prerequisite is that security of supply is guaranteed and social hardship for employees has to be cushioned. The date 2030 was a request by the Greens and was particularly important to them. So far, the shutdown of the last coal pile is planned by 2038 at the latest.

It also said that natural gas for electricity generation should be dispensed with by 2040 at the latest. This fuel will no longer be used in new buildings for the next few years. Natural gas heating would also have to be replaced by the mid-2030s.

According to the information, the Greens can rely on a strong climate ministry to enforce this. The climate section of the environmental department is linked to core elements of the Ministry of Economic Affairs. These are primarily the energy and industry departments. This could solve the mutual blockade of the current environment and economy ministries. It is considered certain that Green Party leader Robert Habeck will take over.

Accordingly, the Greens had less success in the transport sector with the demand for an end to combustion engines as early as 2030. Here it essentially remains with the formulations from the exploratory paper. This refers to the plans of the EU Commission that combustion engines will no longer be permitted from 2035. rtr

  • Burners
  • Car Industry
  • Coal
  • Energy
  • Germany
  • Mobility

EU Commission wants to restrict online political advertising

The EU Commission wants to regulate political advertising on the internet and tightly limit controversial online advertising practices such as micro-targeting and user profiling. Google, Facebook, and other platforms are obliged to keep relevant advertising data and hand it over on request.

This emerges from a draft proposal that EU Commissioner Vera Jourova intends to present this week. The aim is to create more transparency and accountability, including for election advertising by parties on the internet, according to the draft, which Europe.Table has been able to take a look at. However, there should be special rules for European parties. In the 2019 European elections, conditions imposed at short notice caused controversy.

The new rules are not only aimed at the internet giants but also advertising agencies, banner providers, and consultancies. Even players from the “offline” world, such as campaign managers, are to be covered. Jourova wants to keep open the possibility of banning certain advertising offers if they do not comply with her specifications.

The proposal is part of the “European Democracy Action Plan” announced by the Commission in December 2020. It is intended to complement the Digital Services Act (DSA), which will be finalized in the Council and Parliament before the trilogue with the Commission.

However, a ban on micro-targeting is apparently not planned. The final details are still being negotiated, EU circles said. “We have to put on the brakes because our democracy is too precious for the fast lane,” Jourova announced in early November. Election advertising on the internet should not be allowed to overwhelm and manipulate citizens. ebo

  • Data
  • Digitization
  • European policy

DSA: Negotiators in EU Parliament reject media exemption

Negotiators in the European Parliament moved a good deal closer to a parliamentary position on the Digital Services Act yesterday after Internal Market Committee (IMCO) rapporteur Christel Schaldemose (S&D) presented new compromise proposals (Europe.Table reported). “I am pleased that we had a productive and constructive round of negotiations,” Schaldemose said after the three-hour meeting when asked by Europe.Table. This was a “big step” towards the final vote in IMCO on December 9th.

According to negotiating circles, the parliamentarians clearly rejected the media exception, which the Legal Affairs (JURI) and Culture (CULT) Committees of the European Parliament wanted to include in the draft law.

The negotiators were also able to agree on Schaldemose’s compromises on these points by a large majority:

  • Article 5: Liability rules for service providers: Specific time limits for deletion of illegal content are no longer included.
  • New article on compensation for users: If users have suffered damage or loss due to a breach of the DSA obligations by the providers, they can claim compensation.
  • Article 24: Personalized advertising. The controversial advertising practice is to be completely banned for minors only. Personal data of users shall also not be automatically processed by online platforms for the purpose of personalized advertising.

The negotiators were unable to reach an agreement on the amendment proposed by the Greens/EFA, which would create special due diligence obligations for platforms with predominantly user-generated pornographic content. The compromise proposal on Article 16, which would create an exemption for small and micro enterprises, was also referred back to the technical level due to a lack of consensus. koj

  • Data
  • Data protection
  • Digital policy
  • Digitization

E.ON: own hydrogen division

Energy company E.ON wants to push ahead with setting up a hydrogen business in a separate unit. “We are planning that we build up a separate business, a separate unit, which will take care of this topic full time,” CEO Leonhard Birnbaum said in a conference call with journalists on Tuesday. Then the individual projects should be developed into profitable projects. It will probably take at least three to four years before the business will be profitable, said CFO Marc Spieker. rtr

  • Climate & Environment
  • Energy
  • Hydrogen

MEPs call for new rules on legal labor migration

In an initiative report on legal migration, the Committee on Civil Liberties, Justice and Home Affairs (LIBE) calls on the Commission to facilitate legal migration to the EU to address skills shortages. The report by Swedish MEP Abir Al-Sahlani (Renew) sets out concrete proposals for new options for legal migration to the EU.

Before the plenary of the European Parliament votes on the report today, MEPs discussed their draft with Commission Vice-President Margaritis Schinas yesterday evening. Al-Sahlani stressed that demographic change and skills shortages are weighing heavily on the EU: “The skills mismatch in member states’ labor markets is costing our economy two percent in productivity every year.”

The EU, therefore, urgently needs to become a more attractive region for migrant workers of all skill levels through a new legal framework, as the result can be a success for companies, workers, and member states.

Key demands of the report

  • New EU talent pool to match third-country workers with potential employers in the EU,
  • Ambitious admission system for low- and medium-skilled third-country workers.
  • Special measures for the self-employed and entrepreneurs,
  • Improving mobility within the EU of long-term residents who are not EU nationals,
  • Reducing the administrative burden of obtaining the right to reside and work in a member state,
  • Measures to facilitate the recognition of professional qualifications, to ensure equal rights for third-country workers and to combat the exploitation of labour,
  • Revision of the Long-Term Residents Directive, which regulates the status of third-country nationals who are long-term residents in an EU country: In future, they should be allowed to reside permanently in another member state in a similar way to EU citizens and be able to apply for a long-term residence title after just three years of EU residence, instead of the current five years,
  • Seasonal workers are to have three months to look for a new job without having their residence permit withdrawn.

With the report, MEPs call on the Commission to come forward with a legislative proposal by January 31st, 2022. Commission Vice-President Margaritis Schinas confirmed that the Commission is already working on a “talent and skills package“, under which it also intends to revise the long-term residents directive and the combined residence permit directive.

For Germany alone, the Institute for Employment Research assumes that around 400,000 workers will be needed in each of the coming years in order to keep the number of people in employment constant compared to 2020 without measures such as an extension of the working life. Without immigration, the number of people in work would fall from 47.42 million to 38.32 million in 2060, even if the proportion of the total population in work were to rise. At the same time, the potential for immigrants from other EU member states is dwindling due to aging, according to labor market researchers. koj

  • Digital policy
  • Society

Profile

Chris Piallat: digital consultant to the Green Party in the German Bundestag

Chris Piallat, consultant for Network and Digital Policy of the Green Parliamentary Group in the German Bundestag

Chris Piallat doesn’t actually have time for an interview. That’s because the coalition negotiations currently underway are taking up almost all of his energy. One committee meeting follows the next. Each of the 22 specialist negotiating groups had to finalize its proposal for the text of the coalition agreement by November 10th, in other words, in just two and a half weeks. Ambitious, but the parties were well-prepared for this moment and made the most of every minute. The Greens are particularly committed, the digitization expert says with a wink: “We’re always the nerds!”

Chris Piallat works for the “Digital Innovation and Digital Infrastructure” working group of the Green Party’s parliamentary group in the Bundestag, but he also talks to many colleagues from other specialist groups. Digitalization is a cross-cutting topic, explains the 37-year-old: “Domestic policy is concerned with IT security and data protection as a civil right. In the economic sphere, the focus is on the promotion of start-ups and the modernization of competition law. Technology policy talks revolve around research and innovation. And all parties involved see a particularly great need for action on how both state and administration can be modernized by digital means.”

Chris Piallat is not allowed to reveal more about the coalition negotiations. What is clear, however, is that he is particularly concerned about sociopolitical issues of digitalization. And these must also be answered at the European level, explains the political scientist: “On the one hand, we need a regulatory framework such as the Digital Services Act, which should apply to all platforms that exist on the European market – from Facebook to employment services. And on the other hand, we need to promote certain technologies and innovations at the European level.”

Whether in his private life or at work, Chris Piallat likes to use a wide variety of sources, from Twitter to media of major publishing houses, to keep himself well-informed. “In times of growing disinformation, I make it a point to assess information alertly and critically,” he says. It is also particularly important to the Berlin family man that everyone has constant access to as much and as diverse information as possible. That is why he already devoted himself to copyright law during his studies.

So it is no wonder that his recently published book “The Value of Digitization. Common Good in the Digital World” (Der Wert der Digitalisierung. Gemeinwohl in der digitalen Welt) was published under an open-access license. Chris Piallat explains: “This is also a way to draw attention to a publication – with the goal that many people will eventually buy the book. But more important than revenue for me personally is the idea that I want to make the knowledge gathered in the book as accessible as possible.” Janna Degener-Storr

  • Data
  • Data law
  • Digital policy
  • Digitization
  • Federal Government
  • Germany

Apéro

Are you already or still looking for an unusual Christmas gift? Then perhaps the draft report on “Artificial Intelligence in a Digital Age” by the select committee is just the thing if the presentee is interested in science or fiction.

It states that “AI is the control center of the new data plane surrounding us and therefore can be considered the fifth element after air, earth, water, and fire”. This philosophically poetic, though not particularly historical, reflection is found on page 10 of the report.

With a few pages to spare, however, AI is also declared to be the Fourth Industrial Revolution in the same work. The first three industrial revolutions were closely linked to the knowledge that the world does not just consist of earth, wind, and fire. Scientific principles such as the periodic table and physical laws are of industrial use.

Perhaps for this reason, the author rebukes critics and worriers for measuring their fears against a fictional reality in which AI is a “technology with magical powers” in which the Singularity and Terminator played a starring role. Therefore, you have to read the report more as fan fiction.

Artificial intelligence must be exciting. It must offer promise. Every optimistic industry projection is adopted almost without criticism. For example, that artificial intelligence alone could save up to four percent of greenhouse gases by 2030, even if the authors from Microsoft and PwC explain that all opposing effects were ignored for this forecast. And really, all problems from climate change to agriculture, from COVID-19 to supply chains, could be solved by AI. If only they’d let it. And invested a few billion, maybe a few more.

But the author does not make it that simple. At the same time, the report is full of allegorical dystopias, a modern version of Nena’s famous song “99 Luftballons”. For example, when the special committee anxiously points out the disastrous consequences that artificial intelligence would have in the hands of the Chinese military – and therefore wants to give its own troops algorithms in the next paragraph. Or when the risk is conjured up that AI could sabotage the financial markets – only to call shortly afterwards for regulatory obstacles to be consistently cleared away. Axel Voss dares to look into a future in which Europe falls behind in the global battle with China for the AI crown and loses everything if it does not fully invest in dystopia itself.

What remains? A fascinating melange of the mammoth book of technology and a new thriller from the pen of Dirk Roßmann. Admittedly, the non-speculative content is limited to those aspects of artificial intelligence that could be explained to a tiredly smiling 9-year-old who is growing out of Lillifee or dinosaur enthusiasm and has not yet discovered K-Pop. But then again, Christmas presents don’t have to please the presentee. Torsten Kleinz

Europe.Table Editorial Office

EUROPE.TABLE EDITORS

Licenses:
    • State aid guidelines: Commission responds to criticism
    • CAP reform: end of debate, start of implementation
    • BDI Climate Congress: German industry’s list of demands
    • Traffic light coalition: coal phase-out 2030 and end for internal combustion vehicles 2035
    • EU Commission wants to restrict online political advertising
    • DSA: EP negotiators reject media exemption
    • MEPs call for new rules on legal labor migration
    • E.ON: own hydrogen division
    • Profile: Chris Piallat – Digital advisor to the Green Party in the German Bundestag
    Dear reader,

    The traffic light coalition is just about to cross the finish line. But with the coalition agreement, political declarations of intent are being formulated – which have yet to become reality. And while the traffic light is presenting itself and its plans in Berlin today, those involved in Brussels and Strasbourg are working at full steam.

    The EU Commission is giving in on the state aid guidelines that are so important for the economy. Till Hoppe has researched for you how this relates to the EEG levy and why a new calculation formula accommodates German business interests. The new list of eligible sectors includes more than 100 industries – more than twice as many as in the first draft in summer. But that is still significantly fewer than before.

    Actually, the Common Agricultural Policy should contribute a lot to the goals of the Green Deal. But the ambitions of the package are not as pronounced as the Greens and SPD would have liked. A difficult package for the new coalition in Berlin, which must now develop the German strategic plan for this, Lukas Scheid reports.

    The new German government will also have to deal with demands from German industry: BDI President Siegfried Russwurm presented a five-point catalogue of demands on climate yesterday, that offers sufficient potential for dispute. Timo Landenberger reports on this – and on calls for a scrappage premium for combustion engines.

    There are some discussions coming up for the potential Green “transformation minister” Robert Habeck, whose portfolio is now being widely discussed in Berlin – while Christian Lindner now seems to be assured of the finance ministry.

    But labor requires people: Jasmin Kohl listened to the LIBE Committee in the European Parliament, which is issuing an initiative report calling on the Commission to create more legal migration routes to Europe which is threatened by aging.

    Meanwhile, as announced, the rapporteur and shadow rapporteurs reviewed the Digital Services Act. Compromises were found, and other ideas were discarded, including the media exemption.

    Have a nice day and stay safe!

    Your
    Falk Steiner
    Image of Falk  Steiner

    Feature

    State aid guidelines: Commission responds to criticism

    The EU Commission is responding to criticism of the planned framework for climate and energy subsidies. However, the authority does not go as far as demanded by German industry and the German government. This is shown by a new draft available to Europe.Table.

    The new climate and energy aid guidelines (KUEBLL) set out the conditions under which member states may promote the objectives of the Green Deal with state subsidies. The Commission intends to present new guidelines by the end of the year, replacing the previous ones from 2014. As this is not a normal legislative procedure involving Parliament and Council, the new guidelines are expected to enter into force as early as the beginning of 2022.

    An initial draft from the summer had caused an uproar, especially among energy-intensive industries in Germany. This is because the proposal by Competition Commissioner Margrethe Vestager envisaged considerably tightening the conditions for relief for electricity-cost-intensive companies. In its statement, the German government warned that hundreds of companies would lose their entitlement to a cap on the EEG surcharge as a result.

    More flexible on trade intensity

    The Commission has now responded to this. The new list of eligible sectors includes more than 100 industries – more than twice as many as in the first draft from the summer. However, there are still significantly fewer than in the previously applicable guidelines.

    The CDU MEP Markus Pieper, therefore, criticizes the new draft as insufficient: “The new proposal comes closer to the real competitive situation of the companies,” says the spokesman of the parliamentary group of medium-sized businesses in the CDU/CSU group. It is to be welcomed that more companies make it onto the carbon leakage protection list again, but that is by far not enough: “Since the Green Deal massively intensifies global competition, more industries must be relieved compared to the currently valid list – and not fewer. “

    Compared to the first draft, the Commission has changed the method by which eligible sectors are determined. According to the draft from the summer, these had to demonstrate a trade intensity of at least 20 percent and an electricity cost intensity of at least 10 percent. According to the new draft, aid would be considered eligible if the multiplication of the values for trade and electricity cost intensity results in at least 2 percent.

    This essentially corresponds to the previous thresholds of 20 and 10 percent but allows more flexibility in the two individual indicators. The German Chemical Industry Association (VCI), for example, had criticized the Commission for placing too much emphasis on trade intensity, i.e., the export orientation of sectors and companies that are in international competition.

    Taking this factor into account is intended to prevent the migration of CO2-intensive production abroad (carbon leakage). But the indicator is controversial. After all, critics say, a company is in international competition even if it only acts as a supplier for domestic industry but has to hold its own against competition from abroad.

    The Commission has also adjusted the calculation method for an alternative threshold for sectors at high risk of migration, such as aluminum or copper. The authority has added a new clause according to which the Commission can also add new sectors to the eligibility list at a later date if they meet the criteria over a period of three years.

    Reconciliation process still ongoing

    The Commission is also taking a step towards the industry with regard to the aid intensity and burden limit. However, the guidelines may still change; the coordination process between the Commission’s Directorates-General involved is currently underway.

    Experts criticize the additional workload that the new state aid rules could entail. “The Commission wants to promote the objectives of the Green Deal through the new guidelines but garnishes this with additional bureaucracy,” says Henning Wendt from the law firm Görg. For example, auctions would become even more prominent in the awarding of subsidies, which could deter companies because of the effort involved.

    In addition, member states will in the future first have to consult market participants before submitting a support measure to the Commission for approval, which will mean additional work, Wendt said. “Therefore, it remains to be seen how practicable the new guidelines will be in practice.” With Timo Landenberger

    • Climate & Environment
    • Climate protection
    • Energy
    • European policy

    CAP reform: end of debate, start of implementation

    The result had been expected. The preliminary deal, which representatives of the EU Parliament had already concluded with negotiators from the Council and the Commission in the trilogue at the end of June, also cleared the hurdle of the plenary yesterday. The three regulations on the reform of the EU’s common agricultural policy were adopted by around two-thirds of MEPs. If the Council now also agrees, which is expected, the new CAP will come into force starting 2023.

    Farmers who want to receive payments from the CAP will then have to set aside at least three percent of their farmland for the promotion of biodiversity. At least 25 percent of direct payments to farmers are to be distributed for climate and environmentally friendly farming methods – the so-called eco-schemes. A total of 35 percent of the €387 billion CAP budget is to be earmarked for measures to promote climate and environmental protection, biodiversity, and animal welfare. The reform will be implemented by the 27 member states, each of which will have to submit a national strategy plan to the Commission for consideration, setting out how they will use the instruments to achieve the CAP objectives in line with the Green Deal targets.

    Peter Jahr, rapporteur of the CAP Strategic Plan Regulation for the EPP, called it a “good day for European agricultural policy and farmers” in the parliamentary debate in Strasbourg. Because that’s what it’s all about, he stressed, as well as security of supply. It had been important to deliver a compromise on time, rather than “having an agricultural debate for life,” he said. With this, he tried to appease those members of Parliament who had tried to prevent the reform package until the very end.

    CAP headwinds fizzle out

    Jahr thus addressed above all the European Greens and some Social Democrats, including the SPD in the EU Parliament. They voted unanimously against the reform because the new CAP was more of a “business as usual” instead of an ecological reform in the sense of the Green Deal. Subsidies would continue to go to “multinational holdings, large landowners and huge fattening farms”, tweeted Delara Burkhardt, the EU SPD’s environment and climate policy spokeswoman. Small and medium-sized farms would “continue to be forced to give up”.

    Martin Häusling, the Greens’ shadow rapporteur for the CAP strategy plans, criticized the fact that farmers’ participation in the new eco-schemes was only voluntary. For him, it was a “black day for climate policy”. Without a “mandatory review of compatibility with the Green Deal”, the result will be that the future CAP will do even worse than before, Häusling said on Tuesday. He also criticized the fact that the more ambitious farm-to-fork strategy and the biodiversity strategy are only mentioned in passing in the new CAP instead of being a central component for implementation. However, the headwind from the European Greens and the German Social Democrats has fizzled out in view of the broad approval in Parliament.

    However, the opponents of the CAP reform have not yet given up hope. They are now counting on the national strategy plans. Green MEP Bas Eickhout announced that he would keep a close eye on the Commission when evaluating the plans. Especially with regard to the reduction of pesticides, Eickhout said.

    A matter for the new government

    The German strategy plan is still being coordinated between the Federal Ministry of Agriculture and the Federal Ministry for the Environment. It is likely to remain there until the coalition negotiations are concluded. Although the deadline for submission to the Commission is January 1st, 2022, an extension of the deadline is not a significant hurdle.

    Agriculture Minister Julia Klöckner made it clear once again on Tuesday that her proposal was “on the table” and called on the traffic light coalition to reach an agreement on the outstanding points. Her ministry would like to adopt its elaborated plan in the cabinet during this executive term and then submit it to the Bundesrat for approval. The aim is to bring about a decision by the Bundesrat no later than the plenary session on December 17th, a spokesman for the ministry told Europe.Table. The SPD-led BMU, however, will hardly go along with this and will instead take up the paper again with the future coalition partners, as was heard from Green party circles.

    The result could be a more ambitious interpretation of the CAP in Germany. For example, the new German government could prescribe stricter measures for climate-resilient and drought-resilient agriculture, for example, by imposing far-reaching requirements for the protection of carbon-rich soils. The promotion of agroforestry – a combination of arable and livestock land that has a high CO2 storage capacity – could also be encouraged to make agriculture more climate-resilient. The current BMEL had long paid little attention to this branch of the agricultural sector, and even in the needs analysis for the German strategic plan, agroforestry systems are only mentioned in passing.

    However, the member states’ room for maneuver in implementing the CAP is only conducive to climate protection if the national governments have any interest at all in making agriculture more climate-friendly. Germany’s new government wants to be a “climate government”. A corresponding design of the national CAP strategy plan can therefore be expected. However, this is not the case for other EU states. In the past, it has often been shown that in countries such as Hungary or the Czech Republic, climate protection has played a rather subordinate role in the distribution of EU agricultural subsidies.

    • Climate & Environment
    • Climate Targets
    • European policy
    • Farm to Fork Strategy

    BDI Climate Congress: German industry’s list of demands

    At the Climate Congress of the Federation of German Industries, business representatives were not holding back their criticism of climate policy from Berlin and Brussels and made clear demands – especially of the Federal Government that is now being formed.

    Previously, the BDI and the Boston Consulting Group had published a study entitled “Climate Paths 2.0“, in which they calculated the investment required to implement German climate protection measures at around €860 billion. According to the study, achieving the legally agreed climate protection targets for 2030 will require emissions to be almost halved compared to 2019, and current climate policy is not sufficient to achieve this in any sector. At the Climate Congress, BDI President Siegfried Russwurm, therefore, presented a five-point plan with concrete demands on the future German government.

    • A more rapid development of infrastructure must be prioritized. This applied to both the transport and energy sectors, with greater consideration being given to rural areas. The BDI estimates that infrastructure expansion alone will cost €145 billion by 2030. It is also essential that planning and approval procedures be greatly accelerated and that court proceedings be shortened considerably.
    • The industry expects significantly higher operating costs as a result of the switch to climate-neutral technologies. In order to remain competitive, it is crucial to relieve companies of the additional costs. The BDI is calling for federal subsidies for electricity transmission grid fees, an extension of the peak compensation for electricity tax, and a reduction in the EEG levy. For particularly energy-intensive companies, temporary operating cost subsidies via carbon contracts for difference are necessary. The European Union is currently revising its guidelines on state aid for environmental protection and energy (KUEBLL/CEEAG). The reform is intended to allow governments to pay out much higher subsidies to promote the green transformation. However, the draft also proposes to significantly tighten the conditions for reducing electricity levies.
    • In the event of an earlier phase-out of coal-fired power generation, the security of energy supply would only be possible through a considerable increase in the number of gas-fired power plants. The financing of these would have to be ensured via the EU taxonomy. The BDI calls on Germany to focus on this in Brussels as well, instead of blocking the taxonomy through discussions with neighbouring countries about their energy mix.
    • The future German government should review the effectiveness of the instruments of the Climate Protection Act. Sector-specific annual targets should be abolished, they demand. Failure to meet them would trigger short-term emergency measures that would be inefficient and expensive. A flexible, forward-looking monitoring with early indicators would be more target-oriented, it said. “If less is possible in one sector, then we have to find alternatives elsewhere,” Russwurm said.
    • It is also crucial to take greater account of the global dimension of climate change, he added. The BDI calls on the future German government to use the German G7 presidency next year to focus on more international cooperation, primarily in the area of CO2 pricing. The establishment of climate clubs made up of ambitious countries would only be helpful if the major emitters China and the USA were involved. In addition, Germany will continue to be dependent on energy imports. Russwurm calls on politicians to start talking to trading partners now and to secure quotas of green energy.

    When it comes to climate protection, there is a clear division of responsibilities between business and politics, said Hildegard Müller, President of the German Association of the Automotive Industry (VDA), at the Climate Congress. “We will only be successful if we prove that climate protection and growth are not contradictory.” For this to happen, however, he said, politics must “come down to the mills of transformation.” Especially in Brussels, there is still a lack of understanding for the practical implementation of climate protection measures, Müller criticized.

    Scrappage scheme vs. internal combustion vehicle stock?

    For the automotive sector, in particular, it is important not to lose sight of the number of vehicles on the road. “Even if we bring 15 million EVs onto the market in Germany by 2030, there will still be twice as many combustion engines on the road,” said the VDA president. In addition to fleet limits and the expansion of the charging infrastructure, the key question is, therefore: Who can afford a new car and how often? “We will have at least 30 million cars in Germany, where we can only make a contribution by turning to synthetic fuels.” Müller is calling for a quota of 30 percent synthetic fuels by 2030.

    Gunther Kegel, President of the German Electrical and Electronic Manufacturers’ Association (ZVEI), goes one step further. Selling the old stock of cars will soon no longer be worthwhile for the owners. “So they will be driven until they break apart. The only way to shorten that is to introduce a scrapping premium.”

    In addition, Kegel demanded the same charging infrastructure for rural areas as in conurbations. Due to the significantly longer refueling process compared to liquid fuel, the space required will be enormous. For motorway service stations, in particular, he said, the challenge would be great if vehicles took 20 to 30 minutes to use the charging point instead of two to three minutes. “We need to get to a million charging points in Germany quickly, otherwise we’ll slow down our own path to e-mobility.”

    • Autoindustrie
    • Climate Policy
    • Flottengrenzwerte

    News

    Traffic light coalition: coal phase-out in 2030 and end for combustion engine in 2035

    The planned traffic light coalition has agreed on key points in the climate chapter. According to information from negotiating circles on Tuesday, the coalition agreement will include a coal phase-out by 2030.

    The date will be in the coalition agreement, several people involved in the talks told the Reuters news agency on Tuesday. The prerequisite is that security of supply is guaranteed and social hardship for employees has to be cushioned. The date 2030 was a request by the Greens and was particularly important to them. So far, the shutdown of the last coal pile is planned by 2038 at the latest.

    It also said that natural gas for electricity generation should be dispensed with by 2040 at the latest. This fuel will no longer be used in new buildings for the next few years. Natural gas heating would also have to be replaced by the mid-2030s.

    According to the information, the Greens can rely on a strong climate ministry to enforce this. The climate section of the environmental department is linked to core elements of the Ministry of Economic Affairs. These are primarily the energy and industry departments. This could solve the mutual blockade of the current environment and economy ministries. It is considered certain that Green Party leader Robert Habeck will take over.

    Accordingly, the Greens had less success in the transport sector with the demand for an end to combustion engines as early as 2030. Here it essentially remains with the formulations from the exploratory paper. This refers to the plans of the EU Commission that combustion engines will no longer be permitted from 2035. rtr

    • Burners
    • Car Industry
    • Coal
    • Energy
    • Germany
    • Mobility

    EU Commission wants to restrict online political advertising

    The EU Commission wants to regulate political advertising on the internet and tightly limit controversial online advertising practices such as micro-targeting and user profiling. Google, Facebook, and other platforms are obliged to keep relevant advertising data and hand it over on request.

    This emerges from a draft proposal that EU Commissioner Vera Jourova intends to present this week. The aim is to create more transparency and accountability, including for election advertising by parties on the internet, according to the draft, which Europe.Table has been able to take a look at. However, there should be special rules for European parties. In the 2019 European elections, conditions imposed at short notice caused controversy.

    The new rules are not only aimed at the internet giants but also advertising agencies, banner providers, and consultancies. Even players from the “offline” world, such as campaign managers, are to be covered. Jourova wants to keep open the possibility of banning certain advertising offers if they do not comply with her specifications.

    The proposal is part of the “European Democracy Action Plan” announced by the Commission in December 2020. It is intended to complement the Digital Services Act (DSA), which will be finalized in the Council and Parliament before the trilogue with the Commission.

    However, a ban on micro-targeting is apparently not planned. The final details are still being negotiated, EU circles said. “We have to put on the brakes because our democracy is too precious for the fast lane,” Jourova announced in early November. Election advertising on the internet should not be allowed to overwhelm and manipulate citizens. ebo

    • Data
    • Digitization
    • European policy

    DSA: Negotiators in EU Parliament reject media exemption

    Negotiators in the European Parliament moved a good deal closer to a parliamentary position on the Digital Services Act yesterday after Internal Market Committee (IMCO) rapporteur Christel Schaldemose (S&D) presented new compromise proposals (Europe.Table reported). “I am pleased that we had a productive and constructive round of negotiations,” Schaldemose said after the three-hour meeting when asked by Europe.Table. This was a “big step” towards the final vote in IMCO on December 9th.

    According to negotiating circles, the parliamentarians clearly rejected the media exception, which the Legal Affairs (JURI) and Culture (CULT) Committees of the European Parliament wanted to include in the draft law.

    The negotiators were also able to agree on Schaldemose’s compromises on these points by a large majority:

    • Article 5: Liability rules for service providers: Specific time limits for deletion of illegal content are no longer included.
    • New article on compensation for users: If users have suffered damage or loss due to a breach of the DSA obligations by the providers, they can claim compensation.
    • Article 24: Personalized advertising. The controversial advertising practice is to be completely banned for minors only. Personal data of users shall also not be automatically processed by online platforms for the purpose of personalized advertising.

    The negotiators were unable to reach an agreement on the amendment proposed by the Greens/EFA, which would create special due diligence obligations for platforms with predominantly user-generated pornographic content. The compromise proposal on Article 16, which would create an exemption for small and micro enterprises, was also referred back to the technical level due to a lack of consensus. koj

    • Data
    • Data protection
    • Digital policy
    • Digitization

    E.ON: own hydrogen division

    Energy company E.ON wants to push ahead with setting up a hydrogen business in a separate unit. “We are planning that we build up a separate business, a separate unit, which will take care of this topic full time,” CEO Leonhard Birnbaum said in a conference call with journalists on Tuesday. Then the individual projects should be developed into profitable projects. It will probably take at least three to four years before the business will be profitable, said CFO Marc Spieker. rtr

    • Climate & Environment
    • Energy
    • Hydrogen

    MEPs call for new rules on legal labor migration

    In an initiative report on legal migration, the Committee on Civil Liberties, Justice and Home Affairs (LIBE) calls on the Commission to facilitate legal migration to the EU to address skills shortages. The report by Swedish MEP Abir Al-Sahlani (Renew) sets out concrete proposals for new options for legal migration to the EU.

    Before the plenary of the European Parliament votes on the report today, MEPs discussed their draft with Commission Vice-President Margaritis Schinas yesterday evening. Al-Sahlani stressed that demographic change and skills shortages are weighing heavily on the EU: “The skills mismatch in member states’ labor markets is costing our economy two percent in productivity every year.”

    The EU, therefore, urgently needs to become a more attractive region for migrant workers of all skill levels through a new legal framework, as the result can be a success for companies, workers, and member states.

    Key demands of the report

    • New EU talent pool to match third-country workers with potential employers in the EU,
    • Ambitious admission system for low- and medium-skilled third-country workers.
    • Special measures for the self-employed and entrepreneurs,
    • Improving mobility within the EU of long-term residents who are not EU nationals,
    • Reducing the administrative burden of obtaining the right to reside and work in a member state,
    • Measures to facilitate the recognition of professional qualifications, to ensure equal rights for third-country workers and to combat the exploitation of labour,
    • Revision of the Long-Term Residents Directive, which regulates the status of third-country nationals who are long-term residents in an EU country: In future, they should be allowed to reside permanently in another member state in a similar way to EU citizens and be able to apply for a long-term residence title after just three years of EU residence, instead of the current five years,
    • Seasonal workers are to have three months to look for a new job without having their residence permit withdrawn.

    With the report, MEPs call on the Commission to come forward with a legislative proposal by January 31st, 2022. Commission Vice-President Margaritis Schinas confirmed that the Commission is already working on a “talent and skills package“, under which it also intends to revise the long-term residents directive and the combined residence permit directive.

    For Germany alone, the Institute for Employment Research assumes that around 400,000 workers will be needed in each of the coming years in order to keep the number of people in employment constant compared to 2020 without measures such as an extension of the working life. Without immigration, the number of people in work would fall from 47.42 million to 38.32 million in 2060, even if the proportion of the total population in work were to rise. At the same time, the potential for immigrants from other EU member states is dwindling due to aging, according to labor market researchers. koj

    • Digital policy
    • Society

    Profile

    Chris Piallat: digital consultant to the Green Party in the German Bundestag

    Chris Piallat, consultant for Network and Digital Policy of the Green Parliamentary Group in the German Bundestag

    Chris Piallat doesn’t actually have time for an interview. That’s because the coalition negotiations currently underway are taking up almost all of his energy. One committee meeting follows the next. Each of the 22 specialist negotiating groups had to finalize its proposal for the text of the coalition agreement by November 10th, in other words, in just two and a half weeks. Ambitious, but the parties were well-prepared for this moment and made the most of every minute. The Greens are particularly committed, the digitization expert says with a wink: “We’re always the nerds!”

    Chris Piallat works for the “Digital Innovation and Digital Infrastructure” working group of the Green Party’s parliamentary group in the Bundestag, but he also talks to many colleagues from other specialist groups. Digitalization is a cross-cutting topic, explains the 37-year-old: “Domestic policy is concerned with IT security and data protection as a civil right. In the economic sphere, the focus is on the promotion of start-ups and the modernization of competition law. Technology policy talks revolve around research and innovation. And all parties involved see a particularly great need for action on how both state and administration can be modernized by digital means.”

    Chris Piallat is not allowed to reveal more about the coalition negotiations. What is clear, however, is that he is particularly concerned about sociopolitical issues of digitalization. And these must also be answered at the European level, explains the political scientist: “On the one hand, we need a regulatory framework such as the Digital Services Act, which should apply to all platforms that exist on the European market – from Facebook to employment services. And on the other hand, we need to promote certain technologies and innovations at the European level.”

    Whether in his private life or at work, Chris Piallat likes to use a wide variety of sources, from Twitter to media of major publishing houses, to keep himself well-informed. “In times of growing disinformation, I make it a point to assess information alertly and critically,” he says. It is also particularly important to the Berlin family man that everyone has constant access to as much and as diverse information as possible. That is why he already devoted himself to copyright law during his studies.

    So it is no wonder that his recently published book “The Value of Digitization. Common Good in the Digital World” (Der Wert der Digitalisierung. Gemeinwohl in der digitalen Welt) was published under an open-access license. Chris Piallat explains: “This is also a way to draw attention to a publication – with the goal that many people will eventually buy the book. But more important than revenue for me personally is the idea that I want to make the knowledge gathered in the book as accessible as possible.” Janna Degener-Storr

    • Data
    • Data law
    • Digital policy
    • Digitization
    • Federal Government
    • Germany

    Apéro

    Are you already or still looking for an unusual Christmas gift? Then perhaps the draft report on “Artificial Intelligence in a Digital Age” by the select committee is just the thing if the presentee is interested in science or fiction.

    It states that “AI is the control center of the new data plane surrounding us and therefore can be considered the fifth element after air, earth, water, and fire”. This philosophically poetic, though not particularly historical, reflection is found on page 10 of the report.

    With a few pages to spare, however, AI is also declared to be the Fourth Industrial Revolution in the same work. The first three industrial revolutions were closely linked to the knowledge that the world does not just consist of earth, wind, and fire. Scientific principles such as the periodic table and physical laws are of industrial use.

    Perhaps for this reason, the author rebukes critics and worriers for measuring their fears against a fictional reality in which AI is a “technology with magical powers” in which the Singularity and Terminator played a starring role. Therefore, you have to read the report more as fan fiction.

    Artificial intelligence must be exciting. It must offer promise. Every optimistic industry projection is adopted almost without criticism. For example, that artificial intelligence alone could save up to four percent of greenhouse gases by 2030, even if the authors from Microsoft and PwC explain that all opposing effects were ignored for this forecast. And really, all problems from climate change to agriculture, from COVID-19 to supply chains, could be solved by AI. If only they’d let it. And invested a few billion, maybe a few more.

    But the author does not make it that simple. At the same time, the report is full of allegorical dystopias, a modern version of Nena’s famous song “99 Luftballons”. For example, when the special committee anxiously points out the disastrous consequences that artificial intelligence would have in the hands of the Chinese military – and therefore wants to give its own troops algorithms in the next paragraph. Or when the risk is conjured up that AI could sabotage the financial markets – only to call shortly afterwards for regulatory obstacles to be consistently cleared away. Axel Voss dares to look into a future in which Europe falls behind in the global battle with China for the AI crown and loses everything if it does not fully invest in dystopia itself.

    What remains? A fascinating melange of the mammoth book of technology and a new thriller from the pen of Dirk Roßmann. Admittedly, the non-speculative content is limited to those aspects of artificial intelligence that could be explained to a tiredly smiling 9-year-old who is growing out of Lillifee or dinosaur enthusiasm and has not yet discovered K-Pop. But then again, Christmas presents don’t have to please the presentee. Torsten Kleinz

    Europe.Table Editorial Office

    EUROPE.TABLE EDITORS

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