It is a historic breakthrough. The European Council cleared the way for accession negotiations with Ukraine and its neighbor, the Republic of Moldova. Georgia is also to be granted candidate status and accession talks with Bosnia-Herzegovina are to begin as soon as the country has fulfilled the conditions.
No one had expected it: Viktor Orbán, who had long threatened a veto, quickly gave up his resistance to the decision to enter into talks with Ukraine.
The circumstances are remarkable: he left the room at the crucial moment of the vote so that the required unanimity was possible. Two questions arise: will this example set a precedent, or will this be a way of circumventing unanimity in the future? And secondly, does this mean that Orbán has lost his threatening potential and the others will no longer take his attempts at blackmail seriously?
There was also movement in the negotiations on the Multiannual Financial Framework (MFF). Initially, the Sherpas talked while the “bosses” dealt with the issue of accession talks. At around half past nine in the evening, Council President Charles Michel proposed a so-called “negobox” on the table. He had revised the billions downwards. The heads of state and government entered into a round of discussions.
All in all, the first day of the summit produced some astounding results. This suggests that the remaining points of contention can also be cleared up on the second day. Details can be found in the Analysis by Eric Bonse and Stephan Israel.
Surprise at the EU summit in Brussels: The heads of state and government have spoken out in favor of opening accession negotiations with Ukraine and neighboring Moldova. The decision was made by consensus without the Hungarian head of government Viktor Orbán. He subsequently distanced himself from it. However, this has no political or legal significance, it was said in Brussels.
Federal Chancellor Olaf Scholz called the summit decision “a strong sign of support and a perspective for Ukraine”. Ukraine and Moldova were “part of the European family”. Council President Charles Michel spoke of a “historic moment”. Ukrainian President Volodymyr Zelenskyj celebrated a “victory for Ukraine” This was also “a victory for the whole of Europe. A victory that motivates, inspires and strengthens.”
Orbán, who had threatened a veto, did not take part in the decision. Scholz and other leading EU politicians had tried to change his mind until the very end – without success. However, as he left the room at the crucial moment, he was unable to say no. According to several EU diplomats, Scholz had the saving idea that Orbán could simply stay away from the decision-making process.
This procedure had been agreed with Orbán in advance, it was said. But there was still anger. Following the green light for Ukraine, the Hungarian spoke of a “completely senseless, irrational, and wrong decision”. He had abstained from voting. “26 other countries insisted that this decision be made,” he explained. “Therefore, Hungary has decided that if 26 other countries do this, they should go their own way.”
Nevertheless, the decision was made in the name of the entire EU – because Orbán did not veto it. The right-wing populist from Budapest, known as a chronic naysayer, chickened out at the decisive moment, according to the Brussels Council building. “In the end, the only thing that counts is whether you veto or not”, said Belgian Prime Minister Alexander De Croo. Orbán should now “keep his mouth shut”.
The summit also decided to grant Georgia the status of a candidate country. This was also not expected. The EU member states also want to start accession talks with Bosnia-Herzegovina as soon as the country meets the conditions. Orbán had also campaigned for Bosnia-Herzegovina. Austria had also called for a perspective for the Western Balkans.
With these decisions, the long-discarded enlargement policy is picking up speed again. It is justified by geopolitical necessities. The aim is to oppose imperial Russia. However, accession talks should not begin immediately. Ukraine still has to implement a number of reforms and there is no formal negotiating framework. The Commission intends to report again in March.
It could be several months before the actual accession conference begins. North Macedonia serves as a deterrent example. The country was given the green light by the EU Commission back in 2018. However, the first accession conference could only be organized in July – due to a veto by Bulgaria. Ukraine and Moldova could also suffer a similar fate.
It will probably be years before the country actually joins the EU. However, it should be 2030 at the latest. By then, the EU also wants to implement the necessary reforms to make itself fit for enlargement. A roadmap for these reforms is to be drawn up under the Belgian Council Presidency by June 2024. According to a study by the Jacques Delors Centre, the accession of Ukraine alone could result in additional costs of 13.2 billion euros per year for the EU.
However, the stabilization of Ukraine already entails considerable burdens. The EU summit discussed a four-year aid package of €50 billion for Kyiv. The EU Commission wants to finance it in part by increasing the seven-year EU budget (Multiannual Financial Framework, MFF). In a first draft, there was talk of a total of €66 billion.
However, Scholz objected to this. Although he wants to support Ukraine financially, he rejects a generous increase in the MFF. Council President Michel presented a new proposal that would limit the increase to around €22 billion. However, this would be at the expense of current EU programs; new tasks in the areas of migration and competitiveness could also suffer from the cuts.
Michel’s proposal was therefore not initially accepted. Some EU states demanded more money for new joint tasks. Germany wanted to further limit the amount of fresh money. And then there was Orbán, who would prefer not to transfer any money to Ukraine at all and once again threatened to veto the proposal. After the coup over accession, a second showdown loomed – this time over money.
There is Aleksandar Vučić, who is valued by Western visitors as a “guarantor of stability” and praised for reforms. And there is the Serbian president who is returning to his ultra-nationalist roots, as he is doing now in the election campaign. Vučić called the early parliamentary elections in Serbia on Sunday to consolidate his power after mass protests over school shootings that left 19 people dead. It is also a diversionary tactic in the face of pressure from the international community to finally move forward with normalization with Kosovo.
The opposition had called for new elections, and now they are getting new elections, said Vučić. Serbia’s president dissolves parliament prematurely every two years on average. This helps to maintain the democratic façade and keep opponents of the regime on their toes. This time, an alliance of pro-European opposition parties is trying its luck under the slogan “Serbia against violence”, but the conditions are anything but fair. Opposition members only appear on state television or pro-regime channels such as Pink or Happy TV when they are being defamed.
Early elections were also held in just under half of the municipalities, which the president chose arbitrarily and probably with a view to mobilizing his clientele. As if on cue, the mayors in the capital Belgrade, and 60 other councils across the country had to resign. In view of the democratic deficits in Serbia, Foreign Minister Annalena Baerbock called this week for fair access to the media for all candidates. In the past elections, there had also been pressure on voters and misuse of public funds.
It is well known that employees of the administration or state-affiliated companies have to show photos of their completed ballot papers or risk dismissal. But this is just one of various methods of voter manipulation.
Aleksandar Vučić has given 260 monologues on television this year alone, lasting an average of 38 minutes, as calculated by the non-governmental election observers from Crta. The president explains the world situation to the audience and presents himself as the father of the country, the only one who can guide Serbia through troubled waters in these turbulent times.
“In Serbia, we are alternately presented as enemies of the state, fascists or thieves”, says opposition politician Borko Stefanović. Vučić accuses the opposition of being prepared, unlike him, to give in to pressure from the West and “betray” Kosovo. This is one of the reasons why the opposition wants to talk about rampant corruption, violence in society, and nepotism during the election campaign.
During his visit to Berlin, Aleksandar Vučić found the right words and presented himself as a reliable partner who was the only one who could deliver on reforms and normalization with Kosovo.
According to opposition politician Stefanović, Western partners are all too happy to believe this and rely on Vučić as the only guarantor of stability in Serbia. In Belgrade, the nasty term “stabilocracy” is circulating, which is deliberately or unintentionally promoted from Brussels to Berlin. Aleksandar Vučić is causing a lot of instability in the region. Opposition and civil society are ignored during visits, as are the setbacks in democracy, minority rights and media freedom.
The opposition believes that long-standing German Chancellor Angela Merkel, who took Aleksandar Vučić under her wing at the time and paved the way for his ruling party SNS to join the conservative European People’s Party (EPP), is responsible. The Serbian president likes to talk about his “friend Angela”, who has met him bilaterally 16 times in nine years. Economic interests are also likely to have been at the center of these meetings.
For almost ten years now, Berlin has been financing an economic advisor who is based directly with President Vučić and acts as a door opener. Germany is the number one foreign investor in Serbia, but Commission President Ursula von der Leyen also praised Aleksandar Vučić for his reform course during a recent visit, although it is unclear which reforms might be meant.
Aleksandar Vučić began his career as an ultra-nationalist in the 1990s alongside Vojislav Šešelj and Slobodan Milošević, both of whom were later charged with war crimes in The Hague. At the beginning of his term of office ten years ago, he presented himself as a reformed pro-European who would lead the country into the EU. Now, in the prestigious election campaign for Belgrade, he is making a pact with the convicted war abuser Šešelj. This is in the hope of not losing the capital to the opposition, which only has any chance of winning there. According to the opposition, Vučić is showing his true colors with this alliance.
During a television appearance this week, the Serbian president made it clear that he is counting on Donald Trump returning to the White House and Ukraine being defeated. Serbia would have to “survive” until then and could then expect a “better geopolitical situation”. The country could also learn from Azerbaijan’s former president Heidar Aliyev and his son and successor Ilham Aliyev, who waited 27 years to “take back” Nagorno-Karabakh.
Large inscriptions on highway bridges and buildings across Serbia are already announcing the “return of the army to Kosovo” during the election campaign. In Brussels and Berlin, Vučić’s assurances should no longer be believed and the signs on the wall should be recognized.
The EU Parliament, Council, and Commission have reached a provisional agreement in the negotiations on the EU Due Diligence and Duty of Care Act (CSDDD). At another long trilogue meeting on Wednesday night, they were able to find compromises on the last contentious issues: Under pressure from the Council, the financial sector will initially be exempted from the obligations; the Parliament was again able to assert itself with regard to liability and the obligation to implement climate plans.
“This law is a historic breakthrough”, said EP rapporteur Lara Wolters on Thursday morning. She recalled the collapse of the Rana Plaza textile factory in Bangladesh in 2013: Ten years later, companies are now responsible for possible abuses in their value chain. “May this agreement be a tribute to the victims of this disaster and a starting point for shaping the economy of the future – an economy that puts the well-being of people and the planet above profits and short-sightedness“.
The CSDDD is similar in structure to the German Supply Chain Duty of Care Act (LkSG), but goes significantly further: while around 3,000 companies in Germany must report under the LkSG, there will be around 15,000 under the CSDDD. The CSDDD also focuses not only on direct suppliers like the LkSG, but also covers both the upstream value chain (such as the extraction of raw materials) and, in some cases, the downstream chain (use, recycling, disposal).
The most important results of the negotiations:
Several industry associations called on the Council and Parliament to reject the law in the upcoming votes. Thilo Brodtmann, Managing Director of the German Engineering Federation (VDMA), used drastic words: “With today’s agreement in the trilogue for a European supply chain law, the EU is delivering the next nail in the coffin for the international competitiveness of European industry“. The law is one in a long line of bureaucratic excesses from Brussels that will have to be shouldered by medium-sized industrial companies. There is no trace of the announcement that European companies would be relieved of 25 percent of bureaucratic obligations.
Tanja Gönner, Managing Director of the Federation of German Industries (BDI), expressed a similar view: the final text of the law threatens the competitiveness, security of supply, and diversification of the European economy, “as companies could withdraw from important third countries due to legally uncertain provisions and the resulting threat of sanctions and liability risks”. This would not benefit human rights and the environment, but harm them.
Researchers and experts from the academic world see things differently: “German companies that make a serious and conscientious effort to implement their obligations under the Supply Chain Act (…) have little to fear,” commented Markus Krajewski, Professor of Public Law and International Law at the University of Erlangen-Nuremberg. “On the contrary, the directive only has advantages for them: they have already adapted to the new rules and will no longer experience any distortions of competition“.
It will now be important for companies to take a strategic view of due diligence, explained Julia Hartmann, Professor of Management and Sustainability at EBS University in Oestrich-Winkel: “The protection of human rights is of increasing importance for corporate reputation worldwide”. In addition, companies that maintain close relationships with suppliers and transparent supply chains are much more resilient to crises. This could become a decisive factor.
Civil society sharply criticized the exception for the financial sector. The reactions were otherwise very positive: The “Supply Chain Act Initiative” spoke of a “milestone for the protection of people and the environment in global supply chains“. For example, the position of those affected in court would be improved, explained coordinator Johanna Kusch: “Unlike the German Supply Chain Act, it provides for civil liability if companies violate their due diligence obligations”.
The next steps are for the Council and Parliament to formally adopt the agreement. The law will then enter into force. As this is a directive, it is only binding once it has been transposed into national law. According to information from Table.Media, it is expected to take around two years for implementation in Parliament. The LkSG will therefore continue to apply in Germany, but adjustments will be necessary.
Dec. 18, 2023; 10 a.m.
Council of the EU: Environment
Topics: Political debate on a regulation on a monitoring framework for resilient European forests, reports on the most important recent international meetings, presentation by the Commission on the Commission’s assessment of the national energy and climate plans. Provisional agenda
Dec. 19, 2023; 10 a.m.
Council of the EU: Transport, Telecommunications and Energy
Topics: Current legislative proposals, information from the Commission on the latest developments in the field of external relations in the energy sector, information from the Commission on preparations for winter 2023/2024. Provisional agenda
Dec. 20, 2023
ECJ ruling on the takeover of innogy by E.ON
Topics: In March 2018, the two German energy companies RWE and E.ON announced their intention to exchange assets by way of three mergers. In February and September 2019, the Commission approved the transactions (acquisition of E.ON power generation assets by RWE, acquisition of innogy by E.ON). The municipal electricity producers have challenged both Commission decisions before the General Court of the EU. The actions against the approval of the acquisition of E.ON power generation facilities by RWE were dismissed by the General Court in judgments dated May 17, 2023. Info
Dec. 20, 2023
Extraordinary Ecofin
Topics: The finance ministers of the EU member states discuss the reform of the fiscal rules in a video conference from 4 pm. A political agreement seems possible.
Dec. 21, 2023
ECJ ruling on cross-border investigations by the European Public Prosecutor’s Office
Topics: This concerns investigations by the European Public Prosecutor’s Office in Germany and Austria on suspicion of organized tax evasion when importing biodiesel into the EU. In her Opinion of June 22, 2023, Advocate General Ćapeta took the view that judicial review in the Member State of the assisting European Delegated Prosecutor should be limited to procedural matters. Info
Russian President Vladimir Putin is sticking to his goals in Ukraine. “There will only be peace when we have achieved our goals, and the goals do not change: denazification, demilitarization. Neutrality”, he said on Thursday in a four-hour interview with press representatives and citizens.
Putin claimed that the technology provided to Ukraine by the West had been largely destroyed. Ukraine was receiving military aid “for free”, but this could change. With regard to the USA, Putin said: “If any internal changes take place, if they start to respect other people, other states, then we can build equal relations.”
Further mobilization in Russia is “not necessary at this time”, Putin said. There are enough volunteers to meet the army’s needs. According to him, there are currently 244,000 soldiers in the war region. He added that 1,500 volunteers were signing up every day, meaning that almost 500,000 contract soldiers would be recruited by the end of the year. These figures cannot be verified.
After a question about the war in the Gaza Strip, Putin accused Israel of acting disproportionately: “Look at what is happening here in the region of the special military operation and what is happening in Gaza.” vf
The own-initiative report of Markus Pieper (CDU) on NGOs was significantly watered down in the European Parliament’s Committee on Budgetary Control. There was no majority for his call to the Commission to present an NGO law for more transparency and control of NGOs. The reference to the NGOs that the Commission founded to lobby for its own proposal for the Nature Restoration Act was also removed.
NGOs should also not be obliged to make meetings with MEPs and EU representatives public in the future. The call for a common certification system for NGOs applying for EU funding has also been removed.
The own-initiative report was adopted with a total of 19 votes from the EPP, S&D, Renew, ECR, and ID, against six votes from the Left and Greens. The report states that the corruption case involving the former Vice-President of Parliament, Eva Kaili, could have been avoided if the existing rules had been applied.
NGOs that spread hate speech or promote religious extremism, terrorism, or the dissemination of false information are to be excluded from EU funds. A member of staff responsible for transparency issues should be appointed to each committee. The report calls for the last beneficiaries and all donors of NGOs receiving EU funds to be made public. It also envisages increasing the requirements for the transparency of NGOs in financial matters. Pieper is hoping that there will be majorities for some of his proposals in the subsequent plenary vote. mgr
The Council and Parliament have reached a trilogue agreement on a revision of the Directive on liability for defective products (PLD). The aim is to modernize the product liability law from 1985 and make it fit the requirements of digitalization and the circular economy. The law also includes software and artificial intelligence in regulation for the first time.
The most important points of the agreement in the revised Product Liability Directive are:
Reducing the burden of proof was one of the most controversial issues. René Repasi, S&D Group negotiator for the directive and internal market policy spokesperson for the European Social Democrats, therefore calls this a “significant Social Democratic negotiating success”. These simplifications would help consumers “not only to claim their rights in court, but also to obtain them”, said Repasi.
The inclusion of online marketplaces is also a success, as buyers will “in future be protected in the event of defective products from the Far East and in cases where no compensation has had to be paid to date“.
The new product liability directive has been criticized by the business community. The broad scope of application raises “serious concerns” in the business community, said Markus J. Beyrer, Director General of Business Europe, the employers’ and industry association. “We recognize the importance of adapting to evolving technological landscapes, but we question the need for a major overhaul of a directive that has already worked effectively.”
Business Europe considers the law to be unbalanced. The reasons for this are the “increased risk of legal disputes being financed by third parties, the reversal of the burden of proof and the lack of guarantees for the disclosure of evidence”.
The industry association CCIA, which represents Big Tech from the US, warned that the inclusion of all software – including artificial intelligence – in the scope would “have a chilling effect on European innovation without sufficient safeguards or clarity”. Companies would be faced with more legal disputes, improper disclosure of evidence and higher insurance costs overall.
“While insurance costs for software are likely to increase immediately, the more tangible negative consequences for European consumers, including higher product prices and reduced choice, are likely to outweigh the benefits of this review in the medium term,” said Mathilde Adjutor, Senior Policy Manager at CCIA Europe.
The Product Liability Directive still has to be formally adopted by the Council and Parliament. Although it also includes artificial intelligence, the Commission had nevertheless presented a product liability directive for artificial intelligence as a special law in parallel. However, Parliament does not want to deal with this until the AI Act has been adopted. It is therefore unlikely that the AI Liability Act will be passed in the current legislative period. vis
On Thursday, the Commission approved the amendments to the Digital Europe work programs for 2024 and is providing funding of €762.7 million for digital solutions. This will benefit citizens, public administrations, and businesses.
The revised main work program, with a budget of almost €549 million, aims to implement projects that use digital technologies such as data, cloud, and advanced digital skills. Within this framework, the EU Commission is also expanding support for the smooth implementation of transnational Digital Decade projects and promoting European Digital Infrastructure Consortia (EDICs).
The Commission has also earmarked funds to support the implementation of the AI Act and to develop a European ecosystem for artificial intelligence. Small and medium-sized enterprises in particular should benefit from this.
In addition, the cybersecurity budget for 2024 includes €214 million to strengthen the EU’s collective resilience to cyber threats. The measures funded in this work program will be implemented by the European Cybersecurity Competence Centre.
“The Digital Europe Programme is key to pooling EU and national funding and realizing ambitious digital projects that cannot be tackled by any Member State alone”, said Executive Vice-President Margrethe Vestager. And Internal Market Commissioner Thierry Breton added that the program would “drive the development of a thriving European ecosystem for artificial intelligence start-ups“.
The first calls for proposals under the Digital Europe program will be published in early 2024, with more to follow in the spring. Information on the work programs can be found here and information on applying for funding here.
The EU Commission has suffered a final defeat in the dispute over Luxembourg tax regulations for Amazon. On Thursday in Luxembourg, the European Court of Justice (ECJ) rejected an appeal by the EU Commission against an earlier ruling by the EU General Court. The EU court had previously ruled that the Brussels authority had wrongly considered the tax rulings for Amazon to be illegal aid.
In 2003, Amazon proposed to the Luxembourg authorities a regulation for two subsidiaries based there with regard to company tax. Luxembourg approved this. However, in 2017, the EU Commission determined that this regulation was incompatible with the internal market.
However, the EU court ruled in 2021 that the EU Commission had not provided sufficient evidence that Amazon had actually paid less tax wrongly as a result of the scheme. According to the judges at the time, Luxembourg had not granted the subsidiary a selective advantage.
The EU Commission defended itself against this before the highest court, the ECJ. However, the judges have now rejected this. The EU Commission had used the wrong reference system when assessing the regulation. The lower court was therefore right to declare the EU Commission’s decision null and void, according to the judges. dpa
There was a time when new social networks were either applauded or slated. But Threads, Meta’s new platform, seems to be neither – now that it has been made available in the EU after a few adjustments. The Twitter, sorry, X alternative is just the umpteenth alternative to the original, which continues to suffer under its new owner and his airs and graces.
Threads can’t do anything special. Users shrug their shoulders somewhat helplessly when asked what is going on on Mark Zuckerberg’s platform. But perhaps that is precisely the strength of the new meta offering.
Threads is also pretty boring in regulatory terms: the delayed EU launch was due to adjustments to EU law. No fight with the EU Commission over the applicability of GDPR, DMA or DSA – Zuckerberg’s alternative has apparently decided to simply play by the rules.
The accounts were immediately decoupled from Instagram and Facebook to avoid any DMA problems. Even a bridge to the nerdy Mastodon is now included. You don’t even have to create an account to discover that the EU Commission is already there.
Who should complain? All hope for some hustle and bustle now lies with Elon Musk. If he were to open up his beloved X to a confederation with Threads, Mastodon, and Bluesky, the social media platform salad would be ready. Falk Steiner
It is a historic breakthrough. The European Council cleared the way for accession negotiations with Ukraine and its neighbor, the Republic of Moldova. Georgia is also to be granted candidate status and accession talks with Bosnia-Herzegovina are to begin as soon as the country has fulfilled the conditions.
No one had expected it: Viktor Orbán, who had long threatened a veto, quickly gave up his resistance to the decision to enter into talks with Ukraine.
The circumstances are remarkable: he left the room at the crucial moment of the vote so that the required unanimity was possible. Two questions arise: will this example set a precedent, or will this be a way of circumventing unanimity in the future? And secondly, does this mean that Orbán has lost his threatening potential and the others will no longer take his attempts at blackmail seriously?
There was also movement in the negotiations on the Multiannual Financial Framework (MFF). Initially, the Sherpas talked while the “bosses” dealt with the issue of accession talks. At around half past nine in the evening, Council President Charles Michel proposed a so-called “negobox” on the table. He had revised the billions downwards. The heads of state and government entered into a round of discussions.
All in all, the first day of the summit produced some astounding results. This suggests that the remaining points of contention can also be cleared up on the second day. Details can be found in the Analysis by Eric Bonse and Stephan Israel.
Surprise at the EU summit in Brussels: The heads of state and government have spoken out in favor of opening accession negotiations with Ukraine and neighboring Moldova. The decision was made by consensus without the Hungarian head of government Viktor Orbán. He subsequently distanced himself from it. However, this has no political or legal significance, it was said in Brussels.
Federal Chancellor Olaf Scholz called the summit decision “a strong sign of support and a perspective for Ukraine”. Ukraine and Moldova were “part of the European family”. Council President Charles Michel spoke of a “historic moment”. Ukrainian President Volodymyr Zelenskyj celebrated a “victory for Ukraine” This was also “a victory for the whole of Europe. A victory that motivates, inspires and strengthens.”
Orbán, who had threatened a veto, did not take part in the decision. Scholz and other leading EU politicians had tried to change his mind until the very end – without success. However, as he left the room at the crucial moment, he was unable to say no. According to several EU diplomats, Scholz had the saving idea that Orbán could simply stay away from the decision-making process.
This procedure had been agreed with Orbán in advance, it was said. But there was still anger. Following the green light for Ukraine, the Hungarian spoke of a “completely senseless, irrational, and wrong decision”. He had abstained from voting. “26 other countries insisted that this decision be made,” he explained. “Therefore, Hungary has decided that if 26 other countries do this, they should go their own way.”
Nevertheless, the decision was made in the name of the entire EU – because Orbán did not veto it. The right-wing populist from Budapest, known as a chronic naysayer, chickened out at the decisive moment, according to the Brussels Council building. “In the end, the only thing that counts is whether you veto or not”, said Belgian Prime Minister Alexander De Croo. Orbán should now “keep his mouth shut”.
The summit also decided to grant Georgia the status of a candidate country. This was also not expected. The EU member states also want to start accession talks with Bosnia-Herzegovina as soon as the country meets the conditions. Orbán had also campaigned for Bosnia-Herzegovina. Austria had also called for a perspective for the Western Balkans.
With these decisions, the long-discarded enlargement policy is picking up speed again. It is justified by geopolitical necessities. The aim is to oppose imperial Russia. However, accession talks should not begin immediately. Ukraine still has to implement a number of reforms and there is no formal negotiating framework. The Commission intends to report again in March.
It could be several months before the actual accession conference begins. North Macedonia serves as a deterrent example. The country was given the green light by the EU Commission back in 2018. However, the first accession conference could only be organized in July – due to a veto by Bulgaria. Ukraine and Moldova could also suffer a similar fate.
It will probably be years before the country actually joins the EU. However, it should be 2030 at the latest. By then, the EU also wants to implement the necessary reforms to make itself fit for enlargement. A roadmap for these reforms is to be drawn up under the Belgian Council Presidency by June 2024. According to a study by the Jacques Delors Centre, the accession of Ukraine alone could result in additional costs of 13.2 billion euros per year for the EU.
However, the stabilization of Ukraine already entails considerable burdens. The EU summit discussed a four-year aid package of €50 billion for Kyiv. The EU Commission wants to finance it in part by increasing the seven-year EU budget (Multiannual Financial Framework, MFF). In a first draft, there was talk of a total of €66 billion.
However, Scholz objected to this. Although he wants to support Ukraine financially, he rejects a generous increase in the MFF. Council President Michel presented a new proposal that would limit the increase to around €22 billion. However, this would be at the expense of current EU programs; new tasks in the areas of migration and competitiveness could also suffer from the cuts.
Michel’s proposal was therefore not initially accepted. Some EU states demanded more money for new joint tasks. Germany wanted to further limit the amount of fresh money. And then there was Orbán, who would prefer not to transfer any money to Ukraine at all and once again threatened to veto the proposal. After the coup over accession, a second showdown loomed – this time over money.
There is Aleksandar Vučić, who is valued by Western visitors as a “guarantor of stability” and praised for reforms. And there is the Serbian president who is returning to his ultra-nationalist roots, as he is doing now in the election campaign. Vučić called the early parliamentary elections in Serbia on Sunday to consolidate his power after mass protests over school shootings that left 19 people dead. It is also a diversionary tactic in the face of pressure from the international community to finally move forward with normalization with Kosovo.
The opposition had called for new elections, and now they are getting new elections, said Vučić. Serbia’s president dissolves parliament prematurely every two years on average. This helps to maintain the democratic façade and keep opponents of the regime on their toes. This time, an alliance of pro-European opposition parties is trying its luck under the slogan “Serbia against violence”, but the conditions are anything but fair. Opposition members only appear on state television or pro-regime channels such as Pink or Happy TV when they are being defamed.
Early elections were also held in just under half of the municipalities, which the president chose arbitrarily and probably with a view to mobilizing his clientele. As if on cue, the mayors in the capital Belgrade, and 60 other councils across the country had to resign. In view of the democratic deficits in Serbia, Foreign Minister Annalena Baerbock called this week for fair access to the media for all candidates. In the past elections, there had also been pressure on voters and misuse of public funds.
It is well known that employees of the administration or state-affiliated companies have to show photos of their completed ballot papers or risk dismissal. But this is just one of various methods of voter manipulation.
Aleksandar Vučić has given 260 monologues on television this year alone, lasting an average of 38 minutes, as calculated by the non-governmental election observers from Crta. The president explains the world situation to the audience and presents himself as the father of the country, the only one who can guide Serbia through troubled waters in these turbulent times.
“In Serbia, we are alternately presented as enemies of the state, fascists or thieves”, says opposition politician Borko Stefanović. Vučić accuses the opposition of being prepared, unlike him, to give in to pressure from the West and “betray” Kosovo. This is one of the reasons why the opposition wants to talk about rampant corruption, violence in society, and nepotism during the election campaign.
During his visit to Berlin, Aleksandar Vučić found the right words and presented himself as a reliable partner who was the only one who could deliver on reforms and normalization with Kosovo.
According to opposition politician Stefanović, Western partners are all too happy to believe this and rely on Vučić as the only guarantor of stability in Serbia. In Belgrade, the nasty term “stabilocracy” is circulating, which is deliberately or unintentionally promoted from Brussels to Berlin. Aleksandar Vučić is causing a lot of instability in the region. Opposition and civil society are ignored during visits, as are the setbacks in democracy, minority rights and media freedom.
The opposition believes that long-standing German Chancellor Angela Merkel, who took Aleksandar Vučić under her wing at the time and paved the way for his ruling party SNS to join the conservative European People’s Party (EPP), is responsible. The Serbian president likes to talk about his “friend Angela”, who has met him bilaterally 16 times in nine years. Economic interests are also likely to have been at the center of these meetings.
For almost ten years now, Berlin has been financing an economic advisor who is based directly with President Vučić and acts as a door opener. Germany is the number one foreign investor in Serbia, but Commission President Ursula von der Leyen also praised Aleksandar Vučić for his reform course during a recent visit, although it is unclear which reforms might be meant.
Aleksandar Vučić began his career as an ultra-nationalist in the 1990s alongside Vojislav Šešelj and Slobodan Milošević, both of whom were later charged with war crimes in The Hague. At the beginning of his term of office ten years ago, he presented himself as a reformed pro-European who would lead the country into the EU. Now, in the prestigious election campaign for Belgrade, he is making a pact with the convicted war abuser Šešelj. This is in the hope of not losing the capital to the opposition, which only has any chance of winning there. According to the opposition, Vučić is showing his true colors with this alliance.
During a television appearance this week, the Serbian president made it clear that he is counting on Donald Trump returning to the White House and Ukraine being defeated. Serbia would have to “survive” until then and could then expect a “better geopolitical situation”. The country could also learn from Azerbaijan’s former president Heidar Aliyev and his son and successor Ilham Aliyev, who waited 27 years to “take back” Nagorno-Karabakh.
Large inscriptions on highway bridges and buildings across Serbia are already announcing the “return of the army to Kosovo” during the election campaign. In Brussels and Berlin, Vučić’s assurances should no longer be believed and the signs on the wall should be recognized.
The EU Parliament, Council, and Commission have reached a provisional agreement in the negotiations on the EU Due Diligence and Duty of Care Act (CSDDD). At another long trilogue meeting on Wednesday night, they were able to find compromises on the last contentious issues: Under pressure from the Council, the financial sector will initially be exempted from the obligations; the Parliament was again able to assert itself with regard to liability and the obligation to implement climate plans.
“This law is a historic breakthrough”, said EP rapporteur Lara Wolters on Thursday morning. She recalled the collapse of the Rana Plaza textile factory in Bangladesh in 2013: Ten years later, companies are now responsible for possible abuses in their value chain. “May this agreement be a tribute to the victims of this disaster and a starting point for shaping the economy of the future – an economy that puts the well-being of people and the planet above profits and short-sightedness“.
The CSDDD is similar in structure to the German Supply Chain Duty of Care Act (LkSG), but goes significantly further: while around 3,000 companies in Germany must report under the LkSG, there will be around 15,000 under the CSDDD. The CSDDD also focuses not only on direct suppliers like the LkSG, but also covers both the upstream value chain (such as the extraction of raw materials) and, in some cases, the downstream chain (use, recycling, disposal).
The most important results of the negotiations:
Several industry associations called on the Council and Parliament to reject the law in the upcoming votes. Thilo Brodtmann, Managing Director of the German Engineering Federation (VDMA), used drastic words: “With today’s agreement in the trilogue for a European supply chain law, the EU is delivering the next nail in the coffin for the international competitiveness of European industry“. The law is one in a long line of bureaucratic excesses from Brussels that will have to be shouldered by medium-sized industrial companies. There is no trace of the announcement that European companies would be relieved of 25 percent of bureaucratic obligations.
Tanja Gönner, Managing Director of the Federation of German Industries (BDI), expressed a similar view: the final text of the law threatens the competitiveness, security of supply, and diversification of the European economy, “as companies could withdraw from important third countries due to legally uncertain provisions and the resulting threat of sanctions and liability risks”. This would not benefit human rights and the environment, but harm them.
Researchers and experts from the academic world see things differently: “German companies that make a serious and conscientious effort to implement their obligations under the Supply Chain Act (…) have little to fear,” commented Markus Krajewski, Professor of Public Law and International Law at the University of Erlangen-Nuremberg. “On the contrary, the directive only has advantages for them: they have already adapted to the new rules and will no longer experience any distortions of competition“.
It will now be important for companies to take a strategic view of due diligence, explained Julia Hartmann, Professor of Management and Sustainability at EBS University in Oestrich-Winkel: “The protection of human rights is of increasing importance for corporate reputation worldwide”. In addition, companies that maintain close relationships with suppliers and transparent supply chains are much more resilient to crises. This could become a decisive factor.
Civil society sharply criticized the exception for the financial sector. The reactions were otherwise very positive: The “Supply Chain Act Initiative” spoke of a “milestone for the protection of people and the environment in global supply chains“. For example, the position of those affected in court would be improved, explained coordinator Johanna Kusch: “Unlike the German Supply Chain Act, it provides for civil liability if companies violate their due diligence obligations”.
The next steps are for the Council and Parliament to formally adopt the agreement. The law will then enter into force. As this is a directive, it is only binding once it has been transposed into national law. According to information from Table.Media, it is expected to take around two years for implementation in Parliament. The LkSG will therefore continue to apply in Germany, but adjustments will be necessary.
Dec. 18, 2023; 10 a.m.
Council of the EU: Environment
Topics: Political debate on a regulation on a monitoring framework for resilient European forests, reports on the most important recent international meetings, presentation by the Commission on the Commission’s assessment of the national energy and climate plans. Provisional agenda
Dec. 19, 2023; 10 a.m.
Council of the EU: Transport, Telecommunications and Energy
Topics: Current legislative proposals, information from the Commission on the latest developments in the field of external relations in the energy sector, information from the Commission on preparations for winter 2023/2024. Provisional agenda
Dec. 20, 2023
ECJ ruling on the takeover of innogy by E.ON
Topics: In March 2018, the two German energy companies RWE and E.ON announced their intention to exchange assets by way of three mergers. In February and September 2019, the Commission approved the transactions (acquisition of E.ON power generation assets by RWE, acquisition of innogy by E.ON). The municipal electricity producers have challenged both Commission decisions before the General Court of the EU. The actions against the approval of the acquisition of E.ON power generation facilities by RWE were dismissed by the General Court in judgments dated May 17, 2023. Info
Dec. 20, 2023
Extraordinary Ecofin
Topics: The finance ministers of the EU member states discuss the reform of the fiscal rules in a video conference from 4 pm. A political agreement seems possible.
Dec. 21, 2023
ECJ ruling on cross-border investigations by the European Public Prosecutor’s Office
Topics: This concerns investigations by the European Public Prosecutor’s Office in Germany and Austria on suspicion of organized tax evasion when importing biodiesel into the EU. In her Opinion of June 22, 2023, Advocate General Ćapeta took the view that judicial review in the Member State of the assisting European Delegated Prosecutor should be limited to procedural matters. Info
Russian President Vladimir Putin is sticking to his goals in Ukraine. “There will only be peace when we have achieved our goals, and the goals do not change: denazification, demilitarization. Neutrality”, he said on Thursday in a four-hour interview with press representatives and citizens.
Putin claimed that the technology provided to Ukraine by the West had been largely destroyed. Ukraine was receiving military aid “for free”, but this could change. With regard to the USA, Putin said: “If any internal changes take place, if they start to respect other people, other states, then we can build equal relations.”
Further mobilization in Russia is “not necessary at this time”, Putin said. There are enough volunteers to meet the army’s needs. According to him, there are currently 244,000 soldiers in the war region. He added that 1,500 volunteers were signing up every day, meaning that almost 500,000 contract soldiers would be recruited by the end of the year. These figures cannot be verified.
After a question about the war in the Gaza Strip, Putin accused Israel of acting disproportionately: “Look at what is happening here in the region of the special military operation and what is happening in Gaza.” vf
The own-initiative report of Markus Pieper (CDU) on NGOs was significantly watered down in the European Parliament’s Committee on Budgetary Control. There was no majority for his call to the Commission to present an NGO law for more transparency and control of NGOs. The reference to the NGOs that the Commission founded to lobby for its own proposal for the Nature Restoration Act was also removed.
NGOs should also not be obliged to make meetings with MEPs and EU representatives public in the future. The call for a common certification system for NGOs applying for EU funding has also been removed.
The own-initiative report was adopted with a total of 19 votes from the EPP, S&D, Renew, ECR, and ID, against six votes from the Left and Greens. The report states that the corruption case involving the former Vice-President of Parliament, Eva Kaili, could have been avoided if the existing rules had been applied.
NGOs that spread hate speech or promote religious extremism, terrorism, or the dissemination of false information are to be excluded from EU funds. A member of staff responsible for transparency issues should be appointed to each committee. The report calls for the last beneficiaries and all donors of NGOs receiving EU funds to be made public. It also envisages increasing the requirements for the transparency of NGOs in financial matters. Pieper is hoping that there will be majorities for some of his proposals in the subsequent plenary vote. mgr
The Council and Parliament have reached a trilogue agreement on a revision of the Directive on liability for defective products (PLD). The aim is to modernize the product liability law from 1985 and make it fit the requirements of digitalization and the circular economy. The law also includes software and artificial intelligence in regulation for the first time.
The most important points of the agreement in the revised Product Liability Directive are:
Reducing the burden of proof was one of the most controversial issues. René Repasi, S&D Group negotiator for the directive and internal market policy spokesperson for the European Social Democrats, therefore calls this a “significant Social Democratic negotiating success”. These simplifications would help consumers “not only to claim their rights in court, but also to obtain them”, said Repasi.
The inclusion of online marketplaces is also a success, as buyers will “in future be protected in the event of defective products from the Far East and in cases where no compensation has had to be paid to date“.
The new product liability directive has been criticized by the business community. The broad scope of application raises “serious concerns” in the business community, said Markus J. Beyrer, Director General of Business Europe, the employers’ and industry association. “We recognize the importance of adapting to evolving technological landscapes, but we question the need for a major overhaul of a directive that has already worked effectively.”
Business Europe considers the law to be unbalanced. The reasons for this are the “increased risk of legal disputes being financed by third parties, the reversal of the burden of proof and the lack of guarantees for the disclosure of evidence”.
The industry association CCIA, which represents Big Tech from the US, warned that the inclusion of all software – including artificial intelligence – in the scope would “have a chilling effect on European innovation without sufficient safeguards or clarity”. Companies would be faced with more legal disputes, improper disclosure of evidence and higher insurance costs overall.
“While insurance costs for software are likely to increase immediately, the more tangible negative consequences for European consumers, including higher product prices and reduced choice, are likely to outweigh the benefits of this review in the medium term,” said Mathilde Adjutor, Senior Policy Manager at CCIA Europe.
The Product Liability Directive still has to be formally adopted by the Council and Parliament. Although it also includes artificial intelligence, the Commission had nevertheless presented a product liability directive for artificial intelligence as a special law in parallel. However, Parliament does not want to deal with this until the AI Act has been adopted. It is therefore unlikely that the AI Liability Act will be passed in the current legislative period. vis
On Thursday, the Commission approved the amendments to the Digital Europe work programs for 2024 and is providing funding of €762.7 million for digital solutions. This will benefit citizens, public administrations, and businesses.
The revised main work program, with a budget of almost €549 million, aims to implement projects that use digital technologies such as data, cloud, and advanced digital skills. Within this framework, the EU Commission is also expanding support for the smooth implementation of transnational Digital Decade projects and promoting European Digital Infrastructure Consortia (EDICs).
The Commission has also earmarked funds to support the implementation of the AI Act and to develop a European ecosystem for artificial intelligence. Small and medium-sized enterprises in particular should benefit from this.
In addition, the cybersecurity budget for 2024 includes €214 million to strengthen the EU’s collective resilience to cyber threats. The measures funded in this work program will be implemented by the European Cybersecurity Competence Centre.
“The Digital Europe Programme is key to pooling EU and national funding and realizing ambitious digital projects that cannot be tackled by any Member State alone”, said Executive Vice-President Margrethe Vestager. And Internal Market Commissioner Thierry Breton added that the program would “drive the development of a thriving European ecosystem for artificial intelligence start-ups“.
The first calls for proposals under the Digital Europe program will be published in early 2024, with more to follow in the spring. Information on the work programs can be found here and information on applying for funding here.
The EU Commission has suffered a final defeat in the dispute over Luxembourg tax regulations for Amazon. On Thursday in Luxembourg, the European Court of Justice (ECJ) rejected an appeal by the EU Commission against an earlier ruling by the EU General Court. The EU court had previously ruled that the Brussels authority had wrongly considered the tax rulings for Amazon to be illegal aid.
In 2003, Amazon proposed to the Luxembourg authorities a regulation for two subsidiaries based there with regard to company tax. Luxembourg approved this. However, in 2017, the EU Commission determined that this regulation was incompatible with the internal market.
However, the EU court ruled in 2021 that the EU Commission had not provided sufficient evidence that Amazon had actually paid less tax wrongly as a result of the scheme. According to the judges at the time, Luxembourg had not granted the subsidiary a selective advantage.
The EU Commission defended itself against this before the highest court, the ECJ. However, the judges have now rejected this. The EU Commission had used the wrong reference system when assessing the regulation. The lower court was therefore right to declare the EU Commission’s decision null and void, according to the judges. dpa
There was a time when new social networks were either applauded or slated. But Threads, Meta’s new platform, seems to be neither – now that it has been made available in the EU after a few adjustments. The Twitter, sorry, X alternative is just the umpteenth alternative to the original, which continues to suffer under its new owner and his airs and graces.
Threads can’t do anything special. Users shrug their shoulders somewhat helplessly when asked what is going on on Mark Zuckerberg’s platform. But perhaps that is precisely the strength of the new meta offering.
Threads is also pretty boring in regulatory terms: the delayed EU launch was due to adjustments to EU law. No fight with the EU Commission over the applicability of GDPR, DMA or DSA – Zuckerberg’s alternative has apparently decided to simply play by the rules.
The accounts were immediately decoupled from Instagram and Facebook to avoid any DMA problems. Even a bridge to the nerdy Mastodon is now included. You don’t even have to create an account to discover that the EU Commission is already there.
Who should complain? All hope for some hustle and bustle now lies with Elon Musk. If he were to open up his beloved X to a confederation with Threads, Mastodon, and Bluesky, the social media platform salad would be ready. Falk Steiner