Table.Briefing: Europe (English)

Berlin faces ‘no’ on EV tariffs + Committees downgraded at hearings + Reporting obligations

Dear reader,

Today is the day that many in Europe have been waiting for for weeks – with excitement or anticipation, depending on who you ask. After the vote was postponed at the end of September, the member states will decide today on the countervailing duties on Chinese EVs.

In Berlin, the debate on whether to abstain or vote against the tariffs continued until the very end. In the evening, it became clear that Germany would vote “no”. Vice Chancellor Robert Habeck and Minister Annalena Baerbock, who had argued for abstention, are also expected to support the no vote, according to information from Table.Briefings. Nevertheless, Chancellor Scholz apparently drew his sharpest sword in a meeting of the coalition leaders – and ultimately made the decision based on his authority to issue directives. Read our Analysis to find out what rifts are opening up between Germany and France when it comes to tariffs.

In addition: Shortly before the Commissioners’ hearings, the group leaders downgraded some committees in terms of their rights to ask questions and have a say or even removed them altogether. The S&D and Greens are now accusing EPP leader Manfred Weber of having made agreements with the two far-right groups in advance. Read more in our News.

I wish you a good Friday!

Your
Alina Leimbach
Image of Alina  Leimbach

Feature

Abstain or ‘no’: How Berlin will vote on the EU’s additional tariffs

Ahead of the vote on additional tariffs on Chinese electric vehicles, the dispute between the two largest EU states became apparent in Berlin. French President Emmanuel Macron used his appearance at the Berlin Global Dialogue in the German capital this week to campaign for the EU’s planned countervailing duties against Chinese car imports – however, the German government cannot warm to this course.

According to information available to Table.Briefings, Vice-Chancellor Robert Habeck and Foreign Minister Annalena Baerbock propose that Germany abstain from the vote this Friday in Brussels. Chancellor Olaf Scholz and Finance Minister Christian Lindner from the Free Democratic Party (FDP), on the other hand, oppose the tariffs. Voices in the FDP say that abstaining would not help anyone, adding that the car industry, one of the country’s most important economic sectors with millions of jobs, should not be backstabbed by a trade conflict with China, so the tariffs should be firmly rejected. The Chancellor argues similarly.

No backstab for the car industry

Macron, on the other hand, campaigned for a “level playing field” at the ESMT university on Wednesday and referred to the 100 percent punitive tariffs imposed by the USA against China. China had also threatened to impose tariffs on spirits, the President said, reminding the audience that France is a cognac nation.

This week, Habeck, Minister of Economic Affairs from the Green Party, emphasized that he also rejects punitive tariffs and that a political solution must be found with China. He favored a negotiated solution, for example, in the form of minimum prices for Chinese EVs. “I am completely against tariffs,” the Minister of Economic Affairs also said at the Berlin Global Dialogue. “The question is how we can find a political solution in this specific situation.” At the same time, he urged the EU to present a united front towards Beijing. This is probably also why Habeck rejects an outright no.

The position of the automotive industry is clear: “If I were Germany, I would vote no,” said Mercedes CEO Ola Kallenius on Wednesday. “Not to weaken our negotiating position, but to signal that we want to negotiate a fair win-win situation with fair competitive conditions.” The tariffs also jeopardize Mercedes’ business of manufacturing vehicles in China and exporting them to Europe. The German Association of the Automotive Industry warns that the additional tariffs could threaten the competitiveness of the already ailing European automotive industry.

Growing risk of a global trade conflict

“A vote by the EU states to impose high additional tariffs on EVs from China from the end of October would be a further step away from global cooperation,” VDA President Hildegard Mueller told the German Press Agency. “This measure would further increase the risk of a global trade conflict.” Mueller called for the German government to take a clear stance against the punitive tariffs, saying abstention was not an option.

“Nobody wants a dispute with China. But it is obvious that Chinese electric cars are being subsidized, which is leading to a massive market distortion in Europe,” said Daniel Caspary (CDU), Chairman of the CDU/CSU Group in the European Parliament. “A negotiated solution remains our preferred goal. However, if these talks do not lead to a fair solution, the EU will have no choice but to take action.”

The additional tariffs are estimated to range from 7.8 percent for Tesla to as much as 35.3 percent for SAIC. Other manufacturers such as BYD and Geely are in between. Added to this are ten percent customs tariffs, which already apply anyway. The additional tariffs in force since July in the form of bank guarantees will not be levied retroactively. This has already been announced by the EU Commission. According to EU regulations, the EU Commission can impose the tariffs for the next five years unless a qualified majority of 15 EU countries, representing 65 percent of the EU population, vote against the plan.

Approval very likely

According to EU circles, France, Greece, Italy and Poland will vote in favor of the tariffs – these countries alone already represent around 39 percent of the EU population. The Netherlands, Denmark and Belgium will also vote in favor. In July, Lithuania, Latvia and Bulgaria also voted in favor – as did Spain. If the vote turns out this way again, 60 percent of the EU population will be represented. Without Spain, it would be around 50 percent. It is thus very unlikely that the “no” side will achieve the necessary 65 percent.

Spain’s decision on the matter has been unclear for some time: Following a visit by Pedro Sánchez to Beijing, Spain’s Prime Minister explained that additional tariffs were not the preferred solution. Madrid later rowed back and emphasized that it had not yet decided. In the vote in July, Hungary, Malta, Cyprus, and Slovakia voted “no.” It is highly likely that this will also be the case on Friday. In addition to Germany, the following countries abstained in July: Sweden, Austria, Croatia, Estonia, Finland, Ireland, Luxembourg, Portugal, Romania and Slovenia.

Even though the decision has been made, negotiations between the EU and China are still ongoing. This involves, for example, setting minimum prices for Chinese EVs. Chinese manufacturers had submitted offers to the EU Commission. The first offer was rejected on the grounds that the deadline had expired. A second proposal is still under discussion. Details are not yet known. In addition to a minimum import price, the price commitment could also include a volume cap.

  • Car Industry
  • China
  • Duties
  • E-cars
  • Emmanuel Macron
  • Trade
  • Trade policy
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Ukraine: These are the hurdles to the accession talks

It was a historic day: On June 25, the EU states opened accession negotiations with Ukraine. Never before had the EU negotiated with a country at war, never before had expectations been so high. Upon accession, Ukraine would be the largest country in the EU, one of the largest agricultural producers and probably also the largest net beneficiary.

However, three months after the start of the accession conference, interest has waned. In Brussels, the debate revolves around a new loan of up to €35 billion that the EU Commission has promised Ukraine. The accession talks are hardly an issue anymore; they will not even be on the agenda at the European Council at the end of October. Yet the problems are piling up.

‘Completely unrealistic ideas’

Circles involved in the negotiations on behalf of the Commission are concerned that the Ukrainian government and administration have completely unrealistic ideas about the accession process. Both the time required for the negotiations and the reforms needed are massively underestimated in Kyiv.

President Volodymyr Zelenskiy had already promised his compatriots a “lightning accession” in 2022. In the summer of this year, he then announced a “victory plan” which, in addition to military and financial wishes, also included a call for Ukraine to be quickly admitted to NATO and the EU. But the mills in Brussels grind slowly.

No progress likely by the end of the year

EU diplomats say that no substantial progress can be expected by the end of the Hungarian Presidency in December. Prime Minister Viktor Orbán, who rejects Ukraine’s accession and is leaning more and more towards Russia, does not want to be given the opportunity to torpedo the accession talks. But there is hardly any progress at the working level either.

The EU Commission has begun the so-called screening, i.e. the comparison of Ukrainian law with the EU acquis. This initially involves the “Fundamentals Cluster”, which comprises five of the 35 negotiation chapters and topics such as the rule of law and fundamental rights, public procurement and the control of public finances.

The area of the rule of law is considered to be particularly critical. The first screening took place at the end of September. However, the screening is only a preliminary stage for the actual negotiations. The first intergovernmental conference on the “fundamentals” is not expected until 2025, the EU Commission announced at the request of Table.Briefings.

Enlargement report probably not until November

The Commission did not want to say whether progress has already been made on the rule of law and how it will be assessed. The enlargement report, which the Brussels authority intends to present at the end of October, but probably not until November, should provide initial information. The General Council will then draw its first conclusions on this basis in December.

The latest developments do not suggest that Ukraine is moving closer to the EU. Selensky has only presented his “victory plan” in Washington, but not in Brussels. Important details, which could also affect EU accession, are still being kept secret. The fact that the head of the energy supplier Ukrenergo was fired in Kyiv is also causing a frown.

Reproaches regarding the rule of law

According to Brussels, this is difficult to reconcile with EU rules on the rule of law and good governance. The reforms must continue, the G7 and the EU demand. The fired head of Ukrenergo, Volodymyr Kudrytskyi, explained that Zelenskiy wanted to bring the energy supply under his control. “It’s all about centralizing power.”

Similar accusations had already been made during the surprising government reshuffle in Kyiv at the beginning of September, when the foreign minister Dmytro Kuleba, who was popular in the EU, was unexpectedly replaced. Kuleba was responsible for the accession negotiations with the EU. His successor, Andrij Sybiha, still has to find his feet.

Dispute with Poland too

A dispute between Zelenskiy and Polish Foreign Minister Radosław Sikorski is also causing irritation. At a meeting in Kyiv in mid-September, Zelensky accused Poland of not supporting Ukraine in the EU accession negotiations. Sikorski replied that it had taken his country a decade to join the EU. Zelenskiy’s ideas were unrealistic.

The Volhynia massacre was also discussed at the meeting. In 1943, thousands of Poles were killed by members of the Ukrainian Insurgent Army in the region, which was occupied by the Nazis at the time. The Polish Foreign Minister called for the exhumation of the victims for a “Christian reburial”. The dispute could jeopardize Poland’s EU accession, reports the Kyiv Independent.

Difficult task for Enlargement Commissioner

The new Commissioner-designate for Enlargement, Marta Kos, has an unusually difficult task ahead of her. Not only does she have to defuse the Polish-Ukrainian conflict, she also has to breathe new life into the sluggish accession talks. First, however, the 59-year-old Slovenian diplomat has to get through the hearing in the European Parliament.

That won’t be easy either. Kos was only nominated for Brussels at the last minute after von der Leyen requested more women for her team. She is not an expert on Ukraine and spoke out against breaking off relations with Russia after the start of the war. She must therefore be prepared for critical questions at her hearing in November. With: János Allenbach-Ammann

  • EU-Erweiterung

EU-Monitoring

Oct. 7, 2024; 5-10 p.m.
Plenary session of the EU Parliament: Hamas terror, border controls, EU solidarity fund
Topics: Commission statement on “One year after the Hamas terrorist attacks of October 7”; Commission statement on the reintroduction of internal border controls in a number of Member States and their impact on the Schengen area; brief presentation of the report on the mobilization of the European Union Solidarity Fund. Draft agenda

Oct. 7, 2024; 5:30 p.m.
Euro Group
Topics: Preparation of international meetings (including exchange rate development). Draft agenda

Oct. 7, 2024; 7-8 p.m.
Meeting of the Budget Committee (BUDG)
Topics: Vote on the general budget of the European Union for the financial year 2025; vote on the establishment of a cooperation mechanism for Ukraine loans and the
provision of exceptional macro-financial assistance to Ukraine.
Draft agenda

Oct. 7, 2024; 7-8 p.m.
Meeting of the Committee on Agriculture and Rural Development (AGRI)
Topics: Exchange of views with István Nagy (Minister of Agriculture, on the priorities of the Hungarian Presidency of the Council of the European Union in the field of agriculture). Draft agenda

Oct. 7, 2024; 7:30-9 p.m.
Meeting of the Committee for Transport and Tourism (TRAN)
Topics: Coordination on the use of railroad infrastructure capacity in the Single European
Railway Area; coordination on the realization of the Single European Sky (new version).
Draft agenda

Oct. 7, 2024; 8-9:30 p.m.
Meeting of the Committee on the Environment, Public Health and Food Safety (ENVI)
Topics: Presentation of the Council Presidency’s program. Draft agenda

Oct. 8, 2024
Weekly commission meeting
Topics: Digitization of travel documents. Draft agenda

Oct. 8, 2024; 9 a.m.-10 p.m.
Plenary session of the EU Parliament: European Council, crisis in the automotive industry, situation in Sudan
Topics: Debate on the preparation of the European Council of October 17-18, 2024; debate on the crisis in the automotive industry in the EU; debate on the situation in Sudan. Draft agenda

Oct. 8, 2024; 10 a.m.
Council of the EU: Economic and Financial Affairs
Topics: Economic recovery in Europe; exchange of views on the economic and financial impact of Russian aggression against Ukraine; adoption of conclusions on climate finance in view of the UN Climate Change Conference 2024, COP29, from November 11 to 22, 2024. Draft agenda

Oct. 9-10, 2024
Informal ministerial meeting on employment, social policy and health
Topics: Reflections on labour shortages and the mobilization of untapped labour potential in the context of demographic challenges; discussion of the main issues of social inclusion of people with disabilities and people with altered work abilities. Info

Oct. 9, 2024; 9 a.m.-10 p.m.
Plenary session of the EU Parliament: Russian interference, taxation of the super-rich, housing
Topics: Debate on the Hungarian Presidency’s priority work program, debate on taxing the super-rich to end poverty and reduce inequalities (EU support for the G20 Presidency’s proposal); Commission statement on sustainable, adequate and affordable housing in Europe. Draft agenda

Oct. 10-11, 2024
Council of the EU: Justice and Home Affairs
Topics: Exchange of views on increasing the effectiveness of EU return policy; state of play on the full application of the Schengen acquis in Bulgaria and Romania; exchange of views on the consequences of external conflicts and their impact on the EU. Draft agenda

Oct. 10, 2024; 9 a.m.-4 p.m.
Plenary session of the EU Parliament: Religious intolerance, forest fires in the Amazon region
Topics: Commission statement on the increase in religious intolerance in Europe; Commission statement on the consequences of the devastating forest fires in the Amazon region and the importance of the Amazon region for climate change. Draft agenda

Oct. 10, 2024; 9-9:30 a.m.
Meeting of the Development Committee (DEVE)
Topics: Vote on the UN Climate Change Conference 2024 in Baku, Azerbaijan (COP29); Vote on the general budget of the European Union for the financial year 2025. Draft agenda

News

Hearings: Group leaders change committee competencies

The group leaders have made changes to the competencies of the committees for the hearings of the Commissioners. For example, the Civil Liberties Committee (LIBE) is no longer a responsible committee for the hearing of Henna Virkkunen, Executive Vice-President for Technological Sovereignty, Security and Democracy. The LIBE Committee is now only an invited committee with fewer rights to ask questions. In addition, the opinion of the invited committee is not included in the evaluation.

For both Agriculture Commissioner Christophe Hansen and Foreign Affairs Commissioner Kaja Kallas, the Environment Committee (ENVI) was also removed from the co-lead and downgraded to an invited committee. At the hearing of Olivér Várhelyi, proposed for Health and Animal Welfare, the Committee on Gender Equality (FEMM) was completely excluded from the hearing. In particular, the downgrading of LIBE at the hearing of Virkkunen was controversial.

Weber criticized for possible collusion with right-wing extremists

The S&D and Greens accuse EPP leader Manfred Weber of having made agreements with the two far-right groups in advance. This is a breach of the cordon sanitaire. The group leaders also decided on the first part of the timetable for the hearings of the future Commissioners; the second part of the timetable is to be decided at a meeting next week in Strasbourg. mgr

  • Europäische Kommission

EU Commission: Legal Affairs Committee waves through three applicants

Parliament’s Legal Affairs Committee considers the declarations of three of the 26 candidates for the Commissioner posts on possible conflicts of interest to be so unproblematic that it has no further questions for them. According to reports, these are two Commissioners from the Christian Democrat EPP party family and the Hungarian Olivér Varhélyi, who comes from the extreme right-wing “Patriots” party family.

After reviewing the declarations of the other 23 candidates at an initial meeting, the committee is of the opinion that they have provided too little information. The Committee will therefore ask them to supplement the information once again. There are also specific questions for some commissioners. The applicants should now provide further information, for example on ownership and shareholdings, in order to eliminate potential conflicts of interest in connection with their portfolio.

According to reports, however, the committee has no fundamental reservations about admitting any of the applicants to the hearing in the specialist committees. In 2019, there had already been significant indications of conflicts of interest for several applicants in the first round. The Legal Affairs Committee will meet again on Monday and Thursday to complete its examination. mgr

  • Europäische Kommission
  • EVP

EUDR postponement: What happens next in Parliament and Council

Following the European Commission’s announcement that it intends to postpone the launch of the new EU rules for deforestation-free supply chains (EUDR) by one year, the focus is now on Parliament and the Council. They will have to approve the amendment – presumably in a fast-track procedure, as there is little time left until December, the previously planned start date for the regulation. In Parliament, the plenary could vote directly instead of the relevant committee first. And the Council and Parliament can skip the trilogue negotiations if they both support the Commission proposal without amendments.

While many member states had called for a postponement, criticism has come from Parliament. The postponement is a tragedy, commented Anna Cavazzini (Greens), Chair of the Internal Market Committee. S&D shadow rapporteur Delara Burkhardt criticized that Ursula von der Leyen was already sawing away at the Green Deal shortly after the start of her second term of office. She is convinced that the Commission President could have prevented the delay: “She could have issued implementation guidelines for affected companies, authorities and producer countries long ago.” The fact that von der Leyen held back the guidelines has caused unnecessary uncertainty among all those affected, says Burkhardt to Table.Briefings.

Parliamentary majority for pure postponement possible

If further details of the law are addressed in the legislative procedure that is now to be reopened in addition to the change to the start date, Burkhardt has announced his opposition. The Social Democrats, on the other hand, do not want to block a mere postponement. It is still unclear how the Greens will position themselves. However, with the support of the S&D, a parliamentary majority is likely to be sufficient even without the Greens.

Everything will be done to ensure that the EPP does not exploit the legislative process to “shrink the ordinance into a toothless paper tiger”, emphasizes Burkhardt. Cavazzini also believes that the EPP in particular has a duty: “We must now ensure that the postponement does not open Pandora’s box and that the law is not weakened.”

EPP only wants to change timetable for the time being

The EPP MEP and Chairman of the Agriculture Committee, Herbert Dorfmann, told Table.Briefings that they only wanted to decide on the postponement in a fast-track procedure. Otherwise there was a risk that it would not be adopted in time. However, he did not rule out the possibility of revising the content in a second, later legislative procedure. This depends on how the Commission shapes the implementing legislation. “With a sensible implementation, there would be no need to do it again“, says Dorfmann.

While the EU Commission has now presented the long-awaited guidelines, other elements for implementation are still pending. The benchmarking, which assigns a specific deforestation risk to each country, is to be presented by June 30, 2025. The necessary IT system should be in operation by December of this year.

Industry associations continue to call for the content of the regulation to be amended. For example, the German Farmers’ Association (DBV) and the family-run Land und Forst want countries with a low risk of deforestation, such as Germany, to be exempt from the rules. The traffic light coalition is divided on this: The deputy leader of the FDP parliamentary group, Carina Konrad, spoke out in favor of a “fundamental revision”, while Minister Cem Özdemir (Greens) was against it. luk/jd

  • Entwaldung

Reporting obligations: Robert Habeck wants to ‘start the chainsaw’

Minister Robert Habeck sees comprehensive reporting obligations as a problem for the German economy and is calling for a fundamental rethink. The way forward is not to make individual improvements, “but to fire up the chainsaw and cut the whole thing down”, Habeck said, also referring to the Supply Chain Act, at a business day organized by the German Foreign Trade Association (BGA) on Wednesday. “We have become entrenched in a world where the accuracy of reporting obligations ultimately determines how competitive a company is.”

With regulations such as sustainability reporting, the deforestation directive or the supply chain law, “even with good intentions, we have taken a completely wrong turn”. Competitiveness is under pressure in Germany, emphasized the Green politician. A more energetic approach to bureaucracy was needed.

Habeck: More personal responsibility, clear rules instead

Habeck spoke out in favor of entrusting entrepreneurs with more personal responsibility again. No company wants child or slave labor in its products. A fundamental reversal in logic is necessary: “Clear regulatory legislation, but no reporting obligations, instead sticking to the rules and, in case of doubt, paying the penalties if you are caught”, said Habeck.

He received support from Olaf Scholz. The Federal Chancellor said at the BGA: “We do not want to accept the planned scope of reporting obligations for the sustainability reporting that will begin in 2025. We are therefore lobbying the European Commission to significantly reduce the reporting requirements.”

In its growth initiative, the German government had announced that it was important to avoid disproportionate burdens on companies when implementing due diligence and reporting obligations. The European Supply Chain Directive should be implemented with as little bureaucracy as possible. dpa

  • CSRD

Hungary: Commission takes Hungary to court over sovereignty law

The EU Commission intends to take Hungary to the European Court of Justice again for alleged violations of European law. This time, the reason is the national law on the “defense of sovereignty”, the Brussels authority announced.

Among other things, it sees this as a violation of the principles of democracy, freedom of expression and freedom of association. Specifically, according to the information provided, it also concerns respect for private and family life and the right to speak and write to lawyers in confidence.

New office with great scope

The law passed in December established a new “Office for the Protection of Sovereignty” to monitor any threats to Hungary from abroad. The existing ban on financing political parties from abroad has thus been extended to associations and other organizations. Those responsible for these organizations that attempt to conceal financial sources from abroad also face three years’ imprisonment.

“The law gives the Office very broad discretionary powers for investigations – in particular as regards access to information – and allows the Office to interfere in the investigative activities of other authorities”, the EU Commission stated. The powers and the wide discretionary scope will have consequences for non-governmental organizations, media and journalists, for example, and are unlikely to be proportionate. dpa

  • Rechtsstaatlichkeit

Fiscal Committee: Insisting on a higher EU budget and enforcement of fiscal rules

In its new annual report, the European Fiscal Board (EFB) expresses concern about increased net expenditure, particularly social spending. The independent advisory body to the Commission presented the report on Wednesday. The European Fiscal Board calls on the European Commission to apply fiscal rules more consistently and suggests that the EU should increasingly finance European public goods such as transnational infrastructure investments and defense spending at the European level.

In the past three years, net spending has risen sharply across the EU, warns the five-member EFB in its eighth annual report. Exceptional expenditure related to the Covid pandemic in 2020 and the energy crisis in 2022 decreased in 2023. Instead, other expenditures increased last year: The EFB highlighted increased social spending in particular.

In contrast to other years, it was primarily the countries with relatively low debt levels whose net expenditure rose the most in 2023. One of the reasons for this is the increased defense spending of Eastern and Central European countries. Many of them have debt levels below 60 percent of GDP and have drastically increased their defense spending since the Russian invasion of Ukraine.

Commission to apply fiscal rules more consistently

The EFB believes that one of the reasons for the increase in expenditure is that the general escape clause in the fiscal rules was applied. “In this environment, little attention was paid to rising net expenditure,” said Danish EFB Chairman Niels Thygesen. The Commission had applied the exemption clause for too long. According to Thygesen, the “sharp economic downturn” that had justified the application of the compensation clause had, strictly speaking, already passed by the end of 2021. Nevertheless, the Commission had also applied it in 2022 and 2023.

The EFB was cautiously positive about the new fiscal rules. The EU Commission’s original proposal had been very good, but the member states had made the rules overly complicated again. Overall, however, the reform is “definitely an improvement”, said Thygesen.

According to the EFB, it is important that the Commission now applies the rules consistently. In this regard, the annual report criticizes the fact that the Commission did not initiate an excessive deficit procedure against Spain this summer, even though Spain exceeded the 3% deficit limit in 2023. Thygesen also warned that the EU Commission has not yet sent its policy recommendations to the member states in an excessive deficit procedure – and does not plan to do so until mid-November – and that this should not happen again.

Spending at European level would be more efficient

While the EFB tends to focus on a cautious, expenditure-critical fiscal policy, it is also seeking a discussion on more funding at EU level. “The provision of more European public goods through a European dimension will become necessary, through national but also joint EU efforts, to meet the many challenges ahead”, said Thygesen.

He and his co-authors explicitly mentioned efforts to combat climate change – for example electricity grids – and defense. Thygesen suggested that the discussion on increased joint financing should be resumed in 2025, as the Commission will also present a first draft for the new Multiannual Financial Framework (MFF) next summer. At the same time, however, he also said that the new MFF, which does not start until 2028, would come too late for many critical areas.

Dutch EFB member Roel Beetsma said that the pressure to finance tasks centrally would increase. As options that could be implemented before 2028, he mentioned the previously unused parts of the NGEU fund and the currently unused financial capacity of the European Stability Mechanism (ESM). The 2024 annual report was the last under the current composition of the EBF. The staff of the advisory body, which Niels Thygesen has headed since 2016, will be completely replaced. It is still unclear who will succeed him. jaa

  • EU-Schuldenregeln

EU Parliament: who chairs the China delegation

German European politician Engin Eroglu is the new Chair of the European Parliament’s China delegation. Eroglu (Free Voters) was elected to the post on Thursday. Eroglu is the Deputy National Chair and State Chair of the Free Voters in the German state of Hesse and has been a member of the European Parliament for the party since 2019. In the past, he has spoken out clearly against human rights violations in China. In the spring of this year, it was revealed that Eroglu became the target of a Chinese cyberattack.

“The China delegation is one of the most important delegations in the Parliament, and as its chair, I will, of course, work to help shape the China discussion in the Parliament,” Mr Eroglu told Table.Briefings. He went on to say that the Parliament has played an important role in the Brussels-China debate in recent years. “One of our tasks will be to further sharpen and expand our competence on China.”

Markéta Gregorová from the Czech Pirate Party was elected as deputy. Gregorová is a co-initiator of the EU Parliament’s Taiwan Friendship Group and also sits on the Trade Committee. The German MEP René Repasi from the Social Democratic Party of Germany (SPD) is also deputy chair. Repasi was already deputy chair of the delegation in the previous term. He is also Chair of the German SPD MEPs in the European Parliament.

The China delegation consists of 38 full members. The committee is currently not traveling to the People’s Republic as some members are still subject to Chinese sanctions. ari

  • EU Parliament

EU Commission: TikTok must face questions about recommendation algorithms

TikTok, the short video app from Chinese tech giant ByteDance, must answer questions from the EU Commission about its algorithms and recommendation systems. The request is also aimed at the US platforms YouTube and Snapchat, according to a statement on Wednesday. The Brussels authority wants to know what security precautions the platforms are taking to prevent the dissemination of harmful content. A high-ranking EU official described the investigation as a “wake-up call for the platforms” to change their behavior – for example, by allowing users to hide certain types of videos.

The investigation will also examine whether vulnerable people are recommended content that glorifies eating disorders, depression, drug abuse, and fake news. It will also analyze the effects of functions such as autoplay and endless scrolling. The Commission also requests information from TikTok on “the measures it adopted to avoid the manipulation of the service by malicious actors and to mitigate risks related to elections, pluralism of media, and civic discourse”. Potential penalties include fines against the tech giants.

The request is based on the Digital Services Act (DSA). The EU had already initiated formal investigations against TikTok in the spring for allegedly not doing enough to protect minors. At the time, the focus was also on the recommendation system. In the summer of this year, TikTok withdrew the controversial “TikTok Lite Rewards” bonus program following pressure from Brussels. The program rewarded content interactions with virtual currency that could be exchanged for vouchers. The EU Commission argued, among other things, that the program could be addictive. mcl

  • Plattformen
  • Tiktok

Heads

Dan Jørgensen: Europe’s salesman to become energy commissioner

A permanent guest at the UN climate conferences: Dan Jørgensen at the COP28 in Dubai.

Dan Jørgensen can sell politics well, says Linda Kalcher about the designated Energy Commissioner from Denmark. Kalcher is the founder of the Brussels think tank Strategic Perspectives and knows Jørgensen from his time as a Member of the European Parliament. His network extends far beyond Europe’s borders, which is why Jørgensen could possibly give the portfolio a stronger external impact.

As Energy Commissioner, his task will be to complete Europe’s Energy Union and make it independent of Russian energy supplies. He is to modernize the grid infrastructure and reduce energy prices, which would benefit both consumers and make the industry more competitive internationally. Not an easy task, but Jørgensen has experience with complicated challenges in the energy sector.

As Denmark’s Minister for Development, he co-managed Europe’s international energy partnerships. Previously, as Minister of Climate and Energy, he co-founded the Beyond Oil and Gas Alliance (BOGA) with Costa Rica during the UN Climate Conference in Glasgow (COP26) to promote the phase-out of fossil fuels in both industrialized and developing countries. At COP28 in Dubai, he negotiated on behalf of Denmark, alongside other European ministers, to include the phase-out of fossil fuels in the conference’s final document.

Nuclear power and CCS are among Jørgensen’s tasks

In his new role, Jørgensen will have to act within the EU rather than externally. But this will not make things any less complicated. Commission President Ursula von der Leyen has also tasked him with driving forward the ramp-up of small modular nuclear reactors (SMRs) and carbon capture and storage (CCS). The use and promotion of nuclear energy in particular is highly controversial in Europe. Jørgensen will have to mediate, especially between Paris and Berlin. In the past, he has already proven that he can achieve results in the role of broker.

At ministerial level, he led the talks on the global stocktake, the most important text of the last climate conference, in the run-up to COP28 in Dubai. Until his nomination as EU Commissioner, he also acted as a mediator for the new global climate finance target, the most important document of the next COP in Baku. The crux of these mediator roles – known as facilitators in COP jargon – is to mediate between diametrically opposed positions. “Jørgensen has always done this well”, confirms Kalcher. He is communicative, talks to all sides and is committed to finding solutions. Something his predecessor Kadri Simson was not exactly known for. He is also a workhorse, says Kalcher. “He starts at 6 in the morning and is only finished at 11 in the evening.”

He is less familiar with the second part of his portfolio. Jørgensen is also Housing Commissioner. Affordable housing, lower construction costs and the development of a pan-European investment platform are among his responsibilities there. He will have to learn the ropes. The implementation of von der Leyen’s plans also requires a great deal of skill with the competencies of the European institutions. This is because urban development and housing policy are in the hands of the member states.

A team player in a familiar environment

Dan Jørgensen will work primarily with the designated Competition Commissioner Teresa Ribera and Climate Commissioner Wopke Hoekstra. He knows both of them well. “They get on well together,” says Kalcher. At COP28 in Dubai, they negotiated side by side for Europe. In Brussels, they are now to work together on the decarbonization of European industry. Jørgensen will have to draw up plans for affordable energy prices and the electrification and supply of clean energy to industry. Lukas Knigge

  • CCS
  • Climate & Environment
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Europe.Table Editorial Team

EUROPE.TABLE EDITORIAL OFFICE

Licenses:
    Dear reader,

    Today is the day that many in Europe have been waiting for for weeks – with excitement or anticipation, depending on who you ask. After the vote was postponed at the end of September, the member states will decide today on the countervailing duties on Chinese EVs.

    In Berlin, the debate on whether to abstain or vote against the tariffs continued until the very end. In the evening, it became clear that Germany would vote “no”. Vice Chancellor Robert Habeck and Minister Annalena Baerbock, who had argued for abstention, are also expected to support the no vote, according to information from Table.Briefings. Nevertheless, Chancellor Scholz apparently drew his sharpest sword in a meeting of the coalition leaders – and ultimately made the decision based on his authority to issue directives. Read our Analysis to find out what rifts are opening up between Germany and France when it comes to tariffs.

    In addition: Shortly before the Commissioners’ hearings, the group leaders downgraded some committees in terms of their rights to ask questions and have a say or even removed them altogether. The S&D and Greens are now accusing EPP leader Manfred Weber of having made agreements with the two far-right groups in advance. Read more in our News.

    I wish you a good Friday!

    Your
    Alina Leimbach
    Image of Alina  Leimbach

    Feature

    Abstain or ‘no’: How Berlin will vote on the EU’s additional tariffs

    Ahead of the vote on additional tariffs on Chinese electric vehicles, the dispute between the two largest EU states became apparent in Berlin. French President Emmanuel Macron used his appearance at the Berlin Global Dialogue in the German capital this week to campaign for the EU’s planned countervailing duties against Chinese car imports – however, the German government cannot warm to this course.

    According to information available to Table.Briefings, Vice-Chancellor Robert Habeck and Foreign Minister Annalena Baerbock propose that Germany abstain from the vote this Friday in Brussels. Chancellor Olaf Scholz and Finance Minister Christian Lindner from the Free Democratic Party (FDP), on the other hand, oppose the tariffs. Voices in the FDP say that abstaining would not help anyone, adding that the car industry, one of the country’s most important economic sectors with millions of jobs, should not be backstabbed by a trade conflict with China, so the tariffs should be firmly rejected. The Chancellor argues similarly.

    No backstab for the car industry

    Macron, on the other hand, campaigned for a “level playing field” at the ESMT university on Wednesday and referred to the 100 percent punitive tariffs imposed by the USA against China. China had also threatened to impose tariffs on spirits, the President said, reminding the audience that France is a cognac nation.

    This week, Habeck, Minister of Economic Affairs from the Green Party, emphasized that he also rejects punitive tariffs and that a political solution must be found with China. He favored a negotiated solution, for example, in the form of minimum prices for Chinese EVs. “I am completely against tariffs,” the Minister of Economic Affairs also said at the Berlin Global Dialogue. “The question is how we can find a political solution in this specific situation.” At the same time, he urged the EU to present a united front towards Beijing. This is probably also why Habeck rejects an outright no.

    The position of the automotive industry is clear: “If I were Germany, I would vote no,” said Mercedes CEO Ola Kallenius on Wednesday. “Not to weaken our negotiating position, but to signal that we want to negotiate a fair win-win situation with fair competitive conditions.” The tariffs also jeopardize Mercedes’ business of manufacturing vehicles in China and exporting them to Europe. The German Association of the Automotive Industry warns that the additional tariffs could threaten the competitiveness of the already ailing European automotive industry.

    Growing risk of a global trade conflict

    “A vote by the EU states to impose high additional tariffs on EVs from China from the end of October would be a further step away from global cooperation,” VDA President Hildegard Mueller told the German Press Agency. “This measure would further increase the risk of a global trade conflict.” Mueller called for the German government to take a clear stance against the punitive tariffs, saying abstention was not an option.

    “Nobody wants a dispute with China. But it is obvious that Chinese electric cars are being subsidized, which is leading to a massive market distortion in Europe,” said Daniel Caspary (CDU), Chairman of the CDU/CSU Group in the European Parliament. “A negotiated solution remains our preferred goal. However, if these talks do not lead to a fair solution, the EU will have no choice but to take action.”

    The additional tariffs are estimated to range from 7.8 percent for Tesla to as much as 35.3 percent for SAIC. Other manufacturers such as BYD and Geely are in between. Added to this are ten percent customs tariffs, which already apply anyway. The additional tariffs in force since July in the form of bank guarantees will not be levied retroactively. This has already been announced by the EU Commission. According to EU regulations, the EU Commission can impose the tariffs for the next five years unless a qualified majority of 15 EU countries, representing 65 percent of the EU population, vote against the plan.

    Approval very likely

    According to EU circles, France, Greece, Italy and Poland will vote in favor of the tariffs – these countries alone already represent around 39 percent of the EU population. The Netherlands, Denmark and Belgium will also vote in favor. In July, Lithuania, Latvia and Bulgaria also voted in favor – as did Spain. If the vote turns out this way again, 60 percent of the EU population will be represented. Without Spain, it would be around 50 percent. It is thus very unlikely that the “no” side will achieve the necessary 65 percent.

    Spain’s decision on the matter has been unclear for some time: Following a visit by Pedro Sánchez to Beijing, Spain’s Prime Minister explained that additional tariffs were not the preferred solution. Madrid later rowed back and emphasized that it had not yet decided. In the vote in July, Hungary, Malta, Cyprus, and Slovakia voted “no.” It is highly likely that this will also be the case on Friday. In addition to Germany, the following countries abstained in July: Sweden, Austria, Croatia, Estonia, Finland, Ireland, Luxembourg, Portugal, Romania and Slovenia.

    Even though the decision has been made, negotiations between the EU and China are still ongoing. This involves, for example, setting minimum prices for Chinese EVs. Chinese manufacturers had submitted offers to the EU Commission. The first offer was rejected on the grounds that the deadline had expired. A second proposal is still under discussion. Details are not yet known. In addition to a minimum import price, the price commitment could also include a volume cap.

    • Car Industry
    • China
    • Duties
    • E-cars
    • Emmanuel Macron
    • Trade
    • Trade policy
    Translation missing.

    Ukraine: These are the hurdles to the accession talks

    It was a historic day: On June 25, the EU states opened accession negotiations with Ukraine. Never before had the EU negotiated with a country at war, never before had expectations been so high. Upon accession, Ukraine would be the largest country in the EU, one of the largest agricultural producers and probably also the largest net beneficiary.

    However, three months after the start of the accession conference, interest has waned. In Brussels, the debate revolves around a new loan of up to €35 billion that the EU Commission has promised Ukraine. The accession talks are hardly an issue anymore; they will not even be on the agenda at the European Council at the end of October. Yet the problems are piling up.

    ‘Completely unrealistic ideas’

    Circles involved in the negotiations on behalf of the Commission are concerned that the Ukrainian government and administration have completely unrealistic ideas about the accession process. Both the time required for the negotiations and the reforms needed are massively underestimated in Kyiv.

    President Volodymyr Zelenskiy had already promised his compatriots a “lightning accession” in 2022. In the summer of this year, he then announced a “victory plan” which, in addition to military and financial wishes, also included a call for Ukraine to be quickly admitted to NATO and the EU. But the mills in Brussels grind slowly.

    No progress likely by the end of the year

    EU diplomats say that no substantial progress can be expected by the end of the Hungarian Presidency in December. Prime Minister Viktor Orbán, who rejects Ukraine’s accession and is leaning more and more towards Russia, does not want to be given the opportunity to torpedo the accession talks. But there is hardly any progress at the working level either.

    The EU Commission has begun the so-called screening, i.e. the comparison of Ukrainian law with the EU acquis. This initially involves the “Fundamentals Cluster”, which comprises five of the 35 negotiation chapters and topics such as the rule of law and fundamental rights, public procurement and the control of public finances.

    The area of the rule of law is considered to be particularly critical. The first screening took place at the end of September. However, the screening is only a preliminary stage for the actual negotiations. The first intergovernmental conference on the “fundamentals” is not expected until 2025, the EU Commission announced at the request of Table.Briefings.

    Enlargement report probably not until November

    The Commission did not want to say whether progress has already been made on the rule of law and how it will be assessed. The enlargement report, which the Brussels authority intends to present at the end of October, but probably not until November, should provide initial information. The General Council will then draw its first conclusions on this basis in December.

    The latest developments do not suggest that Ukraine is moving closer to the EU. Selensky has only presented his “victory plan” in Washington, but not in Brussels. Important details, which could also affect EU accession, are still being kept secret. The fact that the head of the energy supplier Ukrenergo was fired in Kyiv is also causing a frown.

    Reproaches regarding the rule of law

    According to Brussels, this is difficult to reconcile with EU rules on the rule of law and good governance. The reforms must continue, the G7 and the EU demand. The fired head of Ukrenergo, Volodymyr Kudrytskyi, explained that Zelenskiy wanted to bring the energy supply under his control. “It’s all about centralizing power.”

    Similar accusations had already been made during the surprising government reshuffle in Kyiv at the beginning of September, when the foreign minister Dmytro Kuleba, who was popular in the EU, was unexpectedly replaced. Kuleba was responsible for the accession negotiations with the EU. His successor, Andrij Sybiha, still has to find his feet.

    Dispute with Poland too

    A dispute between Zelenskiy and Polish Foreign Minister Radosław Sikorski is also causing irritation. At a meeting in Kyiv in mid-September, Zelensky accused Poland of not supporting Ukraine in the EU accession negotiations. Sikorski replied that it had taken his country a decade to join the EU. Zelenskiy’s ideas were unrealistic.

    The Volhynia massacre was also discussed at the meeting. In 1943, thousands of Poles were killed by members of the Ukrainian Insurgent Army in the region, which was occupied by the Nazis at the time. The Polish Foreign Minister called for the exhumation of the victims for a “Christian reburial”. The dispute could jeopardize Poland’s EU accession, reports the Kyiv Independent.

    Difficult task for Enlargement Commissioner

    The new Commissioner-designate for Enlargement, Marta Kos, has an unusually difficult task ahead of her. Not only does she have to defuse the Polish-Ukrainian conflict, she also has to breathe new life into the sluggish accession talks. First, however, the 59-year-old Slovenian diplomat has to get through the hearing in the European Parliament.

    That won’t be easy either. Kos was only nominated for Brussels at the last minute after von der Leyen requested more women for her team. She is not an expert on Ukraine and spoke out against breaking off relations with Russia after the start of the war. She must therefore be prepared for critical questions at her hearing in November. With: János Allenbach-Ammann

    • EU-Erweiterung

    EU-Monitoring

    Oct. 7, 2024; 5-10 p.m.
    Plenary session of the EU Parliament: Hamas terror, border controls, EU solidarity fund
    Topics: Commission statement on “One year after the Hamas terrorist attacks of October 7”; Commission statement on the reintroduction of internal border controls in a number of Member States and their impact on the Schengen area; brief presentation of the report on the mobilization of the European Union Solidarity Fund. Draft agenda

    Oct. 7, 2024; 5:30 p.m.
    Euro Group
    Topics: Preparation of international meetings (including exchange rate development). Draft agenda

    Oct. 7, 2024; 7-8 p.m.
    Meeting of the Budget Committee (BUDG)
    Topics: Vote on the general budget of the European Union for the financial year 2025; vote on the establishment of a cooperation mechanism for Ukraine loans and the
    provision of exceptional macro-financial assistance to Ukraine.
    Draft agenda

    Oct. 7, 2024; 7-8 p.m.
    Meeting of the Committee on Agriculture and Rural Development (AGRI)
    Topics: Exchange of views with István Nagy (Minister of Agriculture, on the priorities of the Hungarian Presidency of the Council of the European Union in the field of agriculture). Draft agenda

    Oct. 7, 2024; 7:30-9 p.m.
    Meeting of the Committee for Transport and Tourism (TRAN)
    Topics: Coordination on the use of railroad infrastructure capacity in the Single European
    Railway Area; coordination on the realization of the Single European Sky (new version).
    Draft agenda

    Oct. 7, 2024; 8-9:30 p.m.
    Meeting of the Committee on the Environment, Public Health and Food Safety (ENVI)
    Topics: Presentation of the Council Presidency’s program. Draft agenda

    Oct. 8, 2024
    Weekly commission meeting
    Topics: Digitization of travel documents. Draft agenda

    Oct. 8, 2024; 9 a.m.-10 p.m.
    Plenary session of the EU Parliament: European Council, crisis in the automotive industry, situation in Sudan
    Topics: Debate on the preparation of the European Council of October 17-18, 2024; debate on the crisis in the automotive industry in the EU; debate on the situation in Sudan. Draft agenda

    Oct. 8, 2024; 10 a.m.
    Council of the EU: Economic and Financial Affairs
    Topics: Economic recovery in Europe; exchange of views on the economic and financial impact of Russian aggression against Ukraine; adoption of conclusions on climate finance in view of the UN Climate Change Conference 2024, COP29, from November 11 to 22, 2024. Draft agenda

    Oct. 9-10, 2024
    Informal ministerial meeting on employment, social policy and health
    Topics: Reflections on labour shortages and the mobilization of untapped labour potential in the context of demographic challenges; discussion of the main issues of social inclusion of people with disabilities and people with altered work abilities. Info

    Oct. 9, 2024; 9 a.m.-10 p.m.
    Plenary session of the EU Parliament: Russian interference, taxation of the super-rich, housing
    Topics: Debate on the Hungarian Presidency’s priority work program, debate on taxing the super-rich to end poverty and reduce inequalities (EU support for the G20 Presidency’s proposal); Commission statement on sustainable, adequate and affordable housing in Europe. Draft agenda

    Oct. 10-11, 2024
    Council of the EU: Justice and Home Affairs
    Topics: Exchange of views on increasing the effectiveness of EU return policy; state of play on the full application of the Schengen acquis in Bulgaria and Romania; exchange of views on the consequences of external conflicts and their impact on the EU. Draft agenda

    Oct. 10, 2024; 9 a.m.-4 p.m.
    Plenary session of the EU Parliament: Religious intolerance, forest fires in the Amazon region
    Topics: Commission statement on the increase in religious intolerance in Europe; Commission statement on the consequences of the devastating forest fires in the Amazon region and the importance of the Amazon region for climate change. Draft agenda

    Oct. 10, 2024; 9-9:30 a.m.
    Meeting of the Development Committee (DEVE)
    Topics: Vote on the UN Climate Change Conference 2024 in Baku, Azerbaijan (COP29); Vote on the general budget of the European Union for the financial year 2025. Draft agenda

    News

    Hearings: Group leaders change committee competencies

    The group leaders have made changes to the competencies of the committees for the hearings of the Commissioners. For example, the Civil Liberties Committee (LIBE) is no longer a responsible committee for the hearing of Henna Virkkunen, Executive Vice-President for Technological Sovereignty, Security and Democracy. The LIBE Committee is now only an invited committee with fewer rights to ask questions. In addition, the opinion of the invited committee is not included in the evaluation.

    For both Agriculture Commissioner Christophe Hansen and Foreign Affairs Commissioner Kaja Kallas, the Environment Committee (ENVI) was also removed from the co-lead and downgraded to an invited committee. At the hearing of Olivér Várhelyi, proposed for Health and Animal Welfare, the Committee on Gender Equality (FEMM) was completely excluded from the hearing. In particular, the downgrading of LIBE at the hearing of Virkkunen was controversial.

    Weber criticized for possible collusion with right-wing extremists

    The S&D and Greens accuse EPP leader Manfred Weber of having made agreements with the two far-right groups in advance. This is a breach of the cordon sanitaire. The group leaders also decided on the first part of the timetable for the hearings of the future Commissioners; the second part of the timetable is to be decided at a meeting next week in Strasbourg. mgr

    • Europäische Kommission

    EU Commission: Legal Affairs Committee waves through three applicants

    Parliament’s Legal Affairs Committee considers the declarations of three of the 26 candidates for the Commissioner posts on possible conflicts of interest to be so unproblematic that it has no further questions for them. According to reports, these are two Commissioners from the Christian Democrat EPP party family and the Hungarian Olivér Varhélyi, who comes from the extreme right-wing “Patriots” party family.

    After reviewing the declarations of the other 23 candidates at an initial meeting, the committee is of the opinion that they have provided too little information. The Committee will therefore ask them to supplement the information once again. There are also specific questions for some commissioners. The applicants should now provide further information, for example on ownership and shareholdings, in order to eliminate potential conflicts of interest in connection with their portfolio.

    According to reports, however, the committee has no fundamental reservations about admitting any of the applicants to the hearing in the specialist committees. In 2019, there had already been significant indications of conflicts of interest for several applicants in the first round. The Legal Affairs Committee will meet again on Monday and Thursday to complete its examination. mgr

    • Europäische Kommission
    • EVP

    EUDR postponement: What happens next in Parliament and Council

    Following the European Commission’s announcement that it intends to postpone the launch of the new EU rules for deforestation-free supply chains (EUDR) by one year, the focus is now on Parliament and the Council. They will have to approve the amendment – presumably in a fast-track procedure, as there is little time left until December, the previously planned start date for the regulation. In Parliament, the plenary could vote directly instead of the relevant committee first. And the Council and Parliament can skip the trilogue negotiations if they both support the Commission proposal without amendments.

    While many member states had called for a postponement, criticism has come from Parliament. The postponement is a tragedy, commented Anna Cavazzini (Greens), Chair of the Internal Market Committee. S&D shadow rapporteur Delara Burkhardt criticized that Ursula von der Leyen was already sawing away at the Green Deal shortly after the start of her second term of office. She is convinced that the Commission President could have prevented the delay: “She could have issued implementation guidelines for affected companies, authorities and producer countries long ago.” The fact that von der Leyen held back the guidelines has caused unnecessary uncertainty among all those affected, says Burkhardt to Table.Briefings.

    Parliamentary majority for pure postponement possible

    If further details of the law are addressed in the legislative procedure that is now to be reopened in addition to the change to the start date, Burkhardt has announced his opposition. The Social Democrats, on the other hand, do not want to block a mere postponement. It is still unclear how the Greens will position themselves. However, with the support of the S&D, a parliamentary majority is likely to be sufficient even without the Greens.

    Everything will be done to ensure that the EPP does not exploit the legislative process to “shrink the ordinance into a toothless paper tiger”, emphasizes Burkhardt. Cavazzini also believes that the EPP in particular has a duty: “We must now ensure that the postponement does not open Pandora’s box and that the law is not weakened.”

    EPP only wants to change timetable for the time being

    The EPP MEP and Chairman of the Agriculture Committee, Herbert Dorfmann, told Table.Briefings that they only wanted to decide on the postponement in a fast-track procedure. Otherwise there was a risk that it would not be adopted in time. However, he did not rule out the possibility of revising the content in a second, later legislative procedure. This depends on how the Commission shapes the implementing legislation. “With a sensible implementation, there would be no need to do it again“, says Dorfmann.

    While the EU Commission has now presented the long-awaited guidelines, other elements for implementation are still pending. The benchmarking, which assigns a specific deforestation risk to each country, is to be presented by June 30, 2025. The necessary IT system should be in operation by December of this year.

    Industry associations continue to call for the content of the regulation to be amended. For example, the German Farmers’ Association (DBV) and the family-run Land und Forst want countries with a low risk of deforestation, such as Germany, to be exempt from the rules. The traffic light coalition is divided on this: The deputy leader of the FDP parliamentary group, Carina Konrad, spoke out in favor of a “fundamental revision”, while Minister Cem Özdemir (Greens) was against it. luk/jd

    • Entwaldung

    Reporting obligations: Robert Habeck wants to ‘start the chainsaw’

    Minister Robert Habeck sees comprehensive reporting obligations as a problem for the German economy and is calling for a fundamental rethink. The way forward is not to make individual improvements, “but to fire up the chainsaw and cut the whole thing down”, Habeck said, also referring to the Supply Chain Act, at a business day organized by the German Foreign Trade Association (BGA) on Wednesday. “We have become entrenched in a world where the accuracy of reporting obligations ultimately determines how competitive a company is.”

    With regulations such as sustainability reporting, the deforestation directive or the supply chain law, “even with good intentions, we have taken a completely wrong turn”. Competitiveness is under pressure in Germany, emphasized the Green politician. A more energetic approach to bureaucracy was needed.

    Habeck: More personal responsibility, clear rules instead

    Habeck spoke out in favor of entrusting entrepreneurs with more personal responsibility again. No company wants child or slave labor in its products. A fundamental reversal in logic is necessary: “Clear regulatory legislation, but no reporting obligations, instead sticking to the rules and, in case of doubt, paying the penalties if you are caught”, said Habeck.

    He received support from Olaf Scholz. The Federal Chancellor said at the BGA: “We do not want to accept the planned scope of reporting obligations for the sustainability reporting that will begin in 2025. We are therefore lobbying the European Commission to significantly reduce the reporting requirements.”

    In its growth initiative, the German government had announced that it was important to avoid disproportionate burdens on companies when implementing due diligence and reporting obligations. The European Supply Chain Directive should be implemented with as little bureaucracy as possible. dpa

    • CSRD

    Hungary: Commission takes Hungary to court over sovereignty law

    The EU Commission intends to take Hungary to the European Court of Justice again for alleged violations of European law. This time, the reason is the national law on the “defense of sovereignty”, the Brussels authority announced.

    Among other things, it sees this as a violation of the principles of democracy, freedom of expression and freedom of association. Specifically, according to the information provided, it also concerns respect for private and family life and the right to speak and write to lawyers in confidence.

    New office with great scope

    The law passed in December established a new “Office for the Protection of Sovereignty” to monitor any threats to Hungary from abroad. The existing ban on financing political parties from abroad has thus been extended to associations and other organizations. Those responsible for these organizations that attempt to conceal financial sources from abroad also face three years’ imprisonment.

    “The law gives the Office very broad discretionary powers for investigations – in particular as regards access to information – and allows the Office to interfere in the investigative activities of other authorities”, the EU Commission stated. The powers and the wide discretionary scope will have consequences for non-governmental organizations, media and journalists, for example, and are unlikely to be proportionate. dpa

    • Rechtsstaatlichkeit

    Fiscal Committee: Insisting on a higher EU budget and enforcement of fiscal rules

    In its new annual report, the European Fiscal Board (EFB) expresses concern about increased net expenditure, particularly social spending. The independent advisory body to the Commission presented the report on Wednesday. The European Fiscal Board calls on the European Commission to apply fiscal rules more consistently and suggests that the EU should increasingly finance European public goods such as transnational infrastructure investments and defense spending at the European level.

    In the past three years, net spending has risen sharply across the EU, warns the five-member EFB in its eighth annual report. Exceptional expenditure related to the Covid pandemic in 2020 and the energy crisis in 2022 decreased in 2023. Instead, other expenditures increased last year: The EFB highlighted increased social spending in particular.

    In contrast to other years, it was primarily the countries with relatively low debt levels whose net expenditure rose the most in 2023. One of the reasons for this is the increased defense spending of Eastern and Central European countries. Many of them have debt levels below 60 percent of GDP and have drastically increased their defense spending since the Russian invasion of Ukraine.

    Commission to apply fiscal rules more consistently

    The EFB believes that one of the reasons for the increase in expenditure is that the general escape clause in the fiscal rules was applied. “In this environment, little attention was paid to rising net expenditure,” said Danish EFB Chairman Niels Thygesen. The Commission had applied the exemption clause for too long. According to Thygesen, the “sharp economic downturn” that had justified the application of the compensation clause had, strictly speaking, already passed by the end of 2021. Nevertheless, the Commission had also applied it in 2022 and 2023.

    The EFB was cautiously positive about the new fiscal rules. The EU Commission’s original proposal had been very good, but the member states had made the rules overly complicated again. Overall, however, the reform is “definitely an improvement”, said Thygesen.

    According to the EFB, it is important that the Commission now applies the rules consistently. In this regard, the annual report criticizes the fact that the Commission did not initiate an excessive deficit procedure against Spain this summer, even though Spain exceeded the 3% deficit limit in 2023. Thygesen also warned that the EU Commission has not yet sent its policy recommendations to the member states in an excessive deficit procedure – and does not plan to do so until mid-November – and that this should not happen again.

    Spending at European level would be more efficient

    While the EFB tends to focus on a cautious, expenditure-critical fiscal policy, it is also seeking a discussion on more funding at EU level. “The provision of more European public goods through a European dimension will become necessary, through national but also joint EU efforts, to meet the many challenges ahead”, said Thygesen.

    He and his co-authors explicitly mentioned efforts to combat climate change – for example electricity grids – and defense. Thygesen suggested that the discussion on increased joint financing should be resumed in 2025, as the Commission will also present a first draft for the new Multiannual Financial Framework (MFF) next summer. At the same time, however, he also said that the new MFF, which does not start until 2028, would come too late for many critical areas.

    Dutch EFB member Roel Beetsma said that the pressure to finance tasks centrally would increase. As options that could be implemented before 2028, he mentioned the previously unused parts of the NGEU fund and the currently unused financial capacity of the European Stability Mechanism (ESM). The 2024 annual report was the last under the current composition of the EBF. The staff of the advisory body, which Niels Thygesen has headed since 2016, will be completely replaced. It is still unclear who will succeed him. jaa

    • EU-Schuldenregeln

    EU Parliament: who chairs the China delegation

    German European politician Engin Eroglu is the new Chair of the European Parliament’s China delegation. Eroglu (Free Voters) was elected to the post on Thursday. Eroglu is the Deputy National Chair and State Chair of the Free Voters in the German state of Hesse and has been a member of the European Parliament for the party since 2019. In the past, he has spoken out clearly against human rights violations in China. In the spring of this year, it was revealed that Eroglu became the target of a Chinese cyberattack.

    “The China delegation is one of the most important delegations in the Parliament, and as its chair, I will, of course, work to help shape the China discussion in the Parliament,” Mr Eroglu told Table.Briefings. He went on to say that the Parliament has played an important role in the Brussels-China debate in recent years. “One of our tasks will be to further sharpen and expand our competence on China.”

    Markéta Gregorová from the Czech Pirate Party was elected as deputy. Gregorová is a co-initiator of the EU Parliament’s Taiwan Friendship Group and also sits on the Trade Committee. The German MEP René Repasi from the Social Democratic Party of Germany (SPD) is also deputy chair. Repasi was already deputy chair of the delegation in the previous term. He is also Chair of the German SPD MEPs in the European Parliament.

    The China delegation consists of 38 full members. The committee is currently not traveling to the People’s Republic as some members are still subject to Chinese sanctions. ari

    • EU Parliament

    EU Commission: TikTok must face questions about recommendation algorithms

    TikTok, the short video app from Chinese tech giant ByteDance, must answer questions from the EU Commission about its algorithms and recommendation systems. The request is also aimed at the US platforms YouTube and Snapchat, according to a statement on Wednesday. The Brussels authority wants to know what security precautions the platforms are taking to prevent the dissemination of harmful content. A high-ranking EU official described the investigation as a “wake-up call for the platforms” to change their behavior – for example, by allowing users to hide certain types of videos.

    The investigation will also examine whether vulnerable people are recommended content that glorifies eating disorders, depression, drug abuse, and fake news. It will also analyze the effects of functions such as autoplay and endless scrolling. The Commission also requests information from TikTok on “the measures it adopted to avoid the manipulation of the service by malicious actors and to mitigate risks related to elections, pluralism of media, and civic discourse”. Potential penalties include fines against the tech giants.

    The request is based on the Digital Services Act (DSA). The EU had already initiated formal investigations against TikTok in the spring for allegedly not doing enough to protect minors. At the time, the focus was also on the recommendation system. In the summer of this year, TikTok withdrew the controversial “TikTok Lite Rewards” bonus program following pressure from Brussels. The program rewarded content interactions with virtual currency that could be exchanged for vouchers. The EU Commission argued, among other things, that the program could be addictive. mcl

    • Plattformen
    • Tiktok

    Heads

    Dan Jørgensen: Europe’s salesman to become energy commissioner

    A permanent guest at the UN climate conferences: Dan Jørgensen at the COP28 in Dubai.

    Dan Jørgensen can sell politics well, says Linda Kalcher about the designated Energy Commissioner from Denmark. Kalcher is the founder of the Brussels think tank Strategic Perspectives and knows Jørgensen from his time as a Member of the European Parliament. His network extends far beyond Europe’s borders, which is why Jørgensen could possibly give the portfolio a stronger external impact.

    As Energy Commissioner, his task will be to complete Europe’s Energy Union and make it independent of Russian energy supplies. He is to modernize the grid infrastructure and reduce energy prices, which would benefit both consumers and make the industry more competitive internationally. Not an easy task, but Jørgensen has experience with complicated challenges in the energy sector.

    As Denmark’s Minister for Development, he co-managed Europe’s international energy partnerships. Previously, as Minister of Climate and Energy, he co-founded the Beyond Oil and Gas Alliance (BOGA) with Costa Rica during the UN Climate Conference in Glasgow (COP26) to promote the phase-out of fossil fuels in both industrialized and developing countries. At COP28 in Dubai, he negotiated on behalf of Denmark, alongside other European ministers, to include the phase-out of fossil fuels in the conference’s final document.

    Nuclear power and CCS are among Jørgensen’s tasks

    In his new role, Jørgensen will have to act within the EU rather than externally. But this will not make things any less complicated. Commission President Ursula von der Leyen has also tasked him with driving forward the ramp-up of small modular nuclear reactors (SMRs) and carbon capture and storage (CCS). The use and promotion of nuclear energy in particular is highly controversial in Europe. Jørgensen will have to mediate, especially between Paris and Berlin. In the past, he has already proven that he can achieve results in the role of broker.

    At ministerial level, he led the talks on the global stocktake, the most important text of the last climate conference, in the run-up to COP28 in Dubai. Until his nomination as EU Commissioner, he also acted as a mediator for the new global climate finance target, the most important document of the next COP in Baku. The crux of these mediator roles – known as facilitators in COP jargon – is to mediate between diametrically opposed positions. “Jørgensen has always done this well”, confirms Kalcher. He is communicative, talks to all sides and is committed to finding solutions. Something his predecessor Kadri Simson was not exactly known for. He is also a workhorse, says Kalcher. “He starts at 6 in the morning and is only finished at 11 in the evening.”

    He is less familiar with the second part of his portfolio. Jørgensen is also Housing Commissioner. Affordable housing, lower construction costs and the development of a pan-European investment platform are among his responsibilities there. He will have to learn the ropes. The implementation of von der Leyen’s plans also requires a great deal of skill with the competencies of the European institutions. This is because urban development and housing policy are in the hands of the member states.

    A team player in a familiar environment

    Dan Jørgensen will work primarily with the designated Competition Commissioner Teresa Ribera and Climate Commissioner Wopke Hoekstra. He knows both of them well. “They get on well together,” says Kalcher. At COP28 in Dubai, they negotiated side by side for Europe. In Brussels, they are now to work together on the decarbonization of European industry. Jørgensen will have to draw up plans for affordable energy prices and the electrification and supply of clean energy to industry. Lukas Knigge

    • CCS
    • Climate & Environment
    • Dänemark
    • Dekarbonisierung
    • European Commission
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    Europe.Table Editorial Team

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