Day two of the new traffic light government is over. On Thursday, the last of the new ministers took office. In line with this, we have broken down for you the leadership levels of the ministries that are particularly relevant for the Green Deal, digitalization in Europe, and German European policy. We will continue to add to this overview in the coming weeks. You can find all further developments under this link.
The developments we can expect from the French EU Presidency were announced by French President Emmanuel Macron on Thursday. My colleague Tanja Kuchenbecker explains the most important plans. Macron wants to push for better border protection, better organization of migration, and better protection for climate-friendly, European products through a CO2 border tax. Incidentally, the new German government would prefer to achieve the latter through so-called climate clubs.
Speaking of climate, next week, the EU Commission will present another package of legislation to implement the Green Deal, including a recast of the Energy Efficiency Directive for Buildings. Timo Landenberger analyses how the Commission intends to make the building sector – the EU’s biggest energy consumer – more climate-friendly.
The Commission presented on Thursday how it intends to tackle precarious working conditions on online platforms such as Uber and Deliveroo. Around 5,5 million platform workers in the EU are currently classified as self-employed, although according to the Commission, they are, in fact, employees. Jasmin Kohl explains what social protection platform workers who are not self-employed could expect in the future.
With the presentation of its Fit for 55 package last summer, the EU Commission put a comprehensive first package of measures on the table to achieve the European climate targets. Now the Brussels authority wants to follow up and present a further legislative package on December 14th, including a new version of the directive on energy efficiency in buildings.
The regulations are eagerly awaited, as they are expected to contain specific requirements for solar installations on roofs, the use of heat pumps, minimum standards for renovations, and the availability of charging stations for electric vehicles, which is likely to have far-reaching consequences. Observers also expect detailed specifications on overall energy efficiency.
According to insiders, the proposal would require all full-time buildings with the lowest energy rating G to be renovated to a higher rating by 2030. This would require EU states to renovate millions of homes, offices, and commercial buildings, with countries affected to varying degrees. In Italy, about a third of residential buildings have the lowest energy efficiency class G, while in the Netherlands it is only four percent.
Such concrete requirements by the EU Commission are therefore causing legal disputes even before the directive is published. The Regulatory Scrutiny Board (RSB), for example, has reportedly rejected the draft legislation on several occasions, arguing that it violates the principle of subsidiarity and does not give the member states sufficient flexibility in achieving the objectives.
The principles of subsidiarity and proportionality are based on the Treaty on European Union (TEU), guaranteeing the protection of national sovereignty and providing that the EU will only legislate if the objectives of a measure can be better achieved at the EU level than by the member states themselves. However, the need for a carbon-neutral building stock in the EU to meet climate targets is a good argument that justifies top-down legislation by the EU, says Matthias Buck, director of the Europe department at the think tank Agora Energiewende. Leaving decarbonization to the member states is “a high risk”.
MEP Ciarán Cuffe also calls for EU minimum energy performance standards and insists on an even more ambitious roadmap. “We only have a decade to tackle the climate emergency,” the Irish politician, who is covering the issue for the Greens/EFA group in the EU Parliament, tells Europe.Table. “We cannot wait until 2030 for the minimum standards to be applied.” The Commission, therefore, needs to come up with a proposal that is as ambitious as possible, he said.
Markus Pieper, energy policy spokesman for the CDU/CSU in the EU Parliament, sees things differently and refers to the European Emissions Trading Scheme (ETS). The Commission plans to extend this to the building sector, which should create market-based incentives for more energy efficiency and renovation. “Massive regulatory requirements, which particularly affect the private sector, are now to be added on top of this. The member states will not go along with this,” said the MEP.
36 percent of greenhouse gas emissions in the EU are attributable to the building sector, and at the same time, according to the EU Commission, 75 percent of the building stock is not energy efficient. According to a recent study by Agora Energiewende, only three percent of houses meet the efficiency standards that would be needed in the long term to achieve the climate targets. However, energy-efficient renovations are complex and, above all, expensive. The annual modernization rate is currently just one percent.
This means that the building sector is responsible for 40 percent of EU-wide energy consumption, which is one of the main reasons for growing energy poverty in some parts of Europe. A problem that is currently exacerbated by record-high gas and electricity prices. “An ambitious Buildings Directive is our best answer in the fight against fuel poverty,” says Ciarán Cuffe. A higher rate of renovation will protect citizens and reduce dependence on fossil fuels.
In fact, according to the Agora study, more than 70 percent of the energy used for heating comes from fossil fuels. The number of heat pumps must increase from the current 14 million to 50 million by 2030, demands Andreas Graf, author of the study. By 2050 at the latest, the entire sector must be climate-neutral and also act as a source of renewables by using 100 percent of potential roof surfaces for solar energy.
Long-term planning is important, along with a clear roadmap that goes beyond mere targets. This includes national renovation plans as well as “certificates” on the renovation progress of one’s own properties for homeowners on the way to climate neutrality. Both are under discussion for the Buildings Directive, Graf said. And this would also give the member states sufficient flexibility.
Couriers who work for the food delivery service Deliveroo are not employees but self-employed workers, the Brussels Labour Court ruled on Wednesday. The case, which involved only 30 couriers, is emblematic of the problem posed by the emerging platform economy: Is a platform an employer and, accordingly, are its workers employees? European regulation has so far been lacking, leading to many different court rulings in the member states.
The dilemma: Many platform workers suffer from precarious employment conditions, although they would actually be entitled to employee status. Moreover, the sector is growing immensely: The European Commission estimates that revenues in the platform economy have increased fivefold between 2016 and 2020: from around €3 billion to around €14 billion. The authority is now tackling the problem: Yesterday, it presented its proposal for a directive to improve working conditions in platform work.
The core of the directive is the fight against false self-employment. The Commission estimates that around 5.5 million of the 28 million platform workers in the EU are currently wrongly classified as self-employed, although they are, in fact, employees. As a result, they miss out on social benefits such as unemployment benefits and pensions. They are also deprived of a statutory minimum wage (if available in the respective member state), collective bargaining, health insurance, regulated working hours, health protection, or paid holidays.
In order to be able to determine in the future whether a platform assumes the role of an employer in an employment relationship, the Commission provides for five criteria. If at least two of these criteria apply to a platform, it must be classified as an employer and the employees as workers.
These are the five criteria:
Platforms can challenge the classification as an employer according to the list of criteria, but then the burden of proof lies with them. In this context, the national definitions of employee status apply, as there is no European definition of the term employee.
“No one is trying to kill, stop, or hamper the growth of the platform economy,” said Employment and Social Rights Commissioner Nicolas Schmit, stressing that the proposal’s clear guidelines are intended to give legal certainty to all sides. Moreover, he said, the Commission did not want to create an instrument against self-employment by doing so. After all, platforms would still have the possibility to change their terms and conditions so that they could legally employ self-employed workers.
It is not only the business models of online platforms that are based on algorithms. They also use the automated systems as a management tool: Algorithms thus decide on the distribution of tasks, monitor and evaluate employees or impose sanctions. However, employees are largely unaware of how the algorithms work. The new rules are intended to put an end to this: Information about how they work is to be shared; only personal data directly related to the work is to be collected and processed. In addition, algorithms must be monitored by humans and algorithmic decisions must be challengeable. These transparency obligations benefit not only the employees of online platforms but also the self-employed who work with the platforms.
The alliance “Delivery Platforms Europe”, which also includes Uber Eats and Deliveroo, criticized the proposed legislation even before the Commission had presented it: A study had shown that the re-categorization of platform employees envisaged by the Commission could lead up to 250,000 couriers into unemployment. The argument: The proposed legislation would destroy the flexibility that makes the platform work function. The majority of platform workers, however, want to continue to be able to freely decide on their working hours.
“With this argument, the platforms want to turn their workers against salaried employment,” says Ludovic Voet, secretary responsible for platform work at the European Trade Union Confederation (ETUC), when asked by Europe.Table. This has nothing to do with reality, as Take Eat Easy or Just Eat already offer salaried employment and still allow their workers to choose when they want to work. “If platforms really care about their workers, they should come to the negotiating table with the unions and start collective bargaining like any other responsible employer,” Voet said.
DGB President Reiner Hoffmann expressly welcomes the proposal: “Digitalization has created a shadow labor market on labor platforms that urgently need fair rules. It is therefore high time that the EU finally wants to bring light into the darkness and that work via digital platforms no longer takes place in a legal vacuum.”
“From my point of view, this is absolutely a step in the right direction,” commented Dennis Radtke (CDU), MEP and social policy spokesman for the EPP Group, in response to a question from Europe.Table. As shadow rapporteur for the EPP, he played a decisive role in the own-initiative report, with which the European Parliament had already formulated concrete demands to the Commission in mid-September on how working conditions on online platforms should be improved. “The proposal takes up in many places what we as a Parliament also demanded in our own-initiative report. Together, we now have a great opportunity to improve the rules of the game in the platform economy – both for employees and with a view to fair competition,” said Radtke.
Before the directive can enter into force, it still has to be negotiated in the European Parliament and the Council. Once the two co-legislators in the trilogue find a common position with the Commission, the member states will have two years to implement the law.
For the first time since the beginning of the pandemic, Emmanuel Macron held a press conference in the grand setting of the Élysée Palace. The president looked confident. His tone was firm and positive. For an hour, he spoke about Europe and his plans for France’s upcoming EU presidency. “For the first time, there are existential problems,” Macron said, including climate and health. Europe must therefore change from the ground up, he said. On January 19th, he wants to present his concept to the EU Parliament in Strasbourg. On Thursday, he already gave a glimpse of the priorities he will set.
His main goal: a more sovereign Europe. This Europe must be able to protect its borders, Macron said. With regard to the migration crisis between Poland and Belarus, he announced that France would propose the establishment of a rapid reaction system to help with crises at the borders. There would also be regular meetings to take joint policy decisions. “If a member state has problems, it must be able to count on Frontex, but it must also be able to count on the support of the other member states.” Better organization of Europe on migration must be the goal, Macron said.
The second element of a more sovereign Europe for the French President is “progress in defense policy”. He called for a defense policy inventory listing threats and precise details of threatening organizations and discussing strategies. A strengthening of European defense policy is necessary, Macron said.
Europe must also defend its economy and its social system, he continued. In March, there would be a summit of European heads of state in France. The topic: “The new European model of growth and investment”. The economy, industry, technology, and jobs should be strengthened. To achieve this, the integration of Europe must continue, Macron said, without giving specific details.
If the head of state has his way, Europe must also become a “digital power”. To this end, “digital champions” should be created and start-ups supported. There are no European champions in the tech world so far, Macron said. Therefore, talent must be promoted, and financing must be ensured. Europe itself must define the rules for the digital world.
Macron also wants to campaign for the protection of climate-friendly European products during the French EU Council Presidency. He said he wanted to create a CO2 levy on imports so that Europe is not at a disadvantage compared to other countries that cause more emissions during production. He declared the border adjustment mechanism (CBAM) to be a central component of the EU strategy for the transition to a climate-friendly industry.
A new German-French bone of contention could emerge on the subject of border adjustment. Sven Giegold, Germany’s newly appointed state secretary for economic affairs, spoke out on Thursday in favor of so-called climate clubs instead of a European CO2 border tax. According to Giegold, the disadvantage of the border tax is that it does not protect the German export industry in non-European markets in competition with less climate-friendly countries. “There, we also tend to have a different interest position with France, as we are stronger exporters.” Under the Climate Club idea, the world’s leading economies could agree on standards for climate-friendly production so that there would be a level playing field in this field. Tanja Kuchenbecker with rtr
Our editorial team will supplement this overview in the coming weeks with further names and functions as soon as they are known.
If you want to keep track of further personnel developments, check this link regularly to see what further developments we can share with you.
You are also welcome to send further suggestions for additions to editorial director Till Hoppe if you know of any other personnel decisions before we do.
Almost 50 non-governmental organizations have criticized the renewed delay of the EU supply chain law. It is “unacceptable” that the European Commission is delaying such an important piece of legislation for the third time, they say in an open letter to its president Ursula von der Leyen. The signatories include Oxfam, Global Witness, the Supply Chain Law Initiative, and the European Trade Union Confederation.
The Commission had again postponed the presentation of the bill, which was last planned for December because the internal committee for regulatory control raised objections against the project (Europe.Table reported). The presentation is now scheduled for the end of February. It is worrying that the exact reasons for the decision remain in the dark, the NOGs said. They criticize “a complete lack of transparency”.
There are considerable reservations in the industry about the proposed legislation. Non-governmental organizations, on the other hand, are in favor of imposing due diligence obligations on all companies operating in the EU in order to prevent human rights violations and environmental damage. In addition, the access of victims to justice should be improved. tho
EU states want to limit the validity of COVID vaccination certificates for travel to nine months, according to insiders. A commission representative and an EU diplomat told Reuters news agency on Thursday that EU governments are expected to agree on this as early as this Friday. However, some countries with lower vaccination rates are still concerned about the impact this could have on travel, a third EU diplomat said.
The EU Commission is pushing for a uniform approach by all member states, as it otherwise fears negative consequences for travel due to differing restrictions. “Our main goal is to avoid divergent measures across the EU,” said Justice Commissioner Didier Reynders. Therefore, a standard validity period of nine months has been proposed for vaccination certificates issued after the completion of the first vaccination series.
Different rules currently apply in the EU countries. France, for example, has set a deadline of seven months. It is to apply from January 15th, while the Commission has proposed a start on January 10th. In Cyprus, the certificate would also be valid for seven months, while in Greece, it would expire after six months for older people. An EU official said both countries were now ready to move to a common EU limit. rtr
The Italian antitrust authority has fined Amazon €1.13 billion for abuse of a dominant position. This is one of the highest fines imposed on a US tech giant in Europe. Amazon said it would appeal.
According to the Italian regulator, Amazon has abused its strong position as a platform for other retailers to favor its own logistics service “Fulfilment by Amazon” and disadvantage competing logistics providers. According to the report, Amazon has linked the use of its logistics service to access to a number of exclusive benefits, including the Prime label, which helps to increase the visibility of products.
Other providers, however, would be prevented from linking the Prime label to offers, the authority said. The antitrust authority is now imposing remedies on the group, which will be overseen by a trustee. Amazon countered that Fulfilment by Amazon is a voluntary service that is not used by the majority of third-party sellers on Amazon. “When sellers choose FBA, they do so because it is efficient, convenient, and competitively priced,” the US company said in a statement.
The EU Commission had launched a similar investigation against Amazon a little over a year ago that extended beyond Italy. A spokeswoman for the Commission said that it had worked closely with the Italian authorities. In addition, the Brussels competition authorities accuse the company of abusing its access to business data of other retailers on its platform for its own benefit. rtr/tho
The German Federal Cartel Office wants to investigate the impact of Facebook’s takeover of US startup Kustomer on the German market. “Our preliminary examination has shown that Kustomer is also active in Germany,” Kartellamt chief Andreas Mundt said on Thursday. He said the planned takeover fell within the scope of German merger control and would have to be notified by Facebook to the Cartel Office for examination.
The US group, which is currently renaming itself Meta, would have to “submit appropriate documentation without delay”. The EU Commission is already taking a close look at the plans for the merger. The takeover of customer management specialist Kustomer by the world’s largest social network could restrict competition and increase Facebook’s market power in online advertising, the EU competition watchdog had warned. The British competition authority CMA is also investigating the case. rtr
Early Thursday morning, Parliament, Council, and Commission agreed on amendments to the Roaming Regulation. The revision mainly includes minor changes to the regulation, which prescribes how mobile providers must treat and bill each other for voice and data traffic of users from other EU countries. In the future, guest network operators must ensure the same quality that is available to the user in the home network.
Extensive deletions to the old regulation make it somewhat more general. Over the coming years, the price caps for voice minutes and data traffic that customers’ contract partners in the home country have to pay to the host network operator will be further reduced.
In addition, new information requirements on the use of value-added services abroad that are not covered by roaming will be included. Also new are provisions for references to the emergency number 112, which can be used throughout Europe and will take effect from mid-2022. A cap on roaming charges for intra-EU calls demanded by the European Parliament, however, was not included in the regulation. The Commission is to examine this by 2024. fst
One of the most striking messages from the new German coalition agreement refers to the rule of law in the European Union. The so-called traffic light parties not only urge the EU Commission “to use the existing rule of law instruments more consistently and in a timely manner,” but they also maintain that Berlin will only agree to release recovery fund money for countries like Hungary and Poland “if preconditions such as an independent judiciary are met”.
This wording echoes Dutch Prime Minister Mark Rutte’s statement from late October, claiming that he could not see the money for those countries being disbursed as long as the dispute over the rule of law persists. His Belgian peer Alexander De Croo was even more blunt. “This is a fundamental political problem that needs to be solved politically, by the European Council and by the European Parliament,” he said in a speech which shocked Warsaw to the extent that the Belgian ambassador was summoned by the Polish ministry of foreign affairs.
No doubt, there is a new tone in the European debate on the EU’s fundamental norms and values. Until recently the battle over the rule of law was exclusive territory of supranational institutions – the Commission, Court of Justice of the European Union, and the European Parliament. The EU member states happily outsourced to them this unthankful job of bringing EU’s black sheep to the fold. Angela Merkel was most instrumental in stressing that the rule of law is a European issue and thus the EU institutions should deal with that – as if the member states were not the real masters of the EU treaties.
Behind the curtains, Germany stepped on the brake in the conviction that an escalation of the conflict would tear the EU apart. This depoliticization of the rule of law issues – delegating them to technocratic and judicial bodies instead – resulted in those bodies expanding the use of their instruments and powers.
The Commission resorted to infringement procedures, usually used to ensure compliance with boring sectoral regulations, to defend independent courts and thus foundations of the democratic order. The CJEU stepped in with rulings requiring dismantling some key pillars of Poland’s judicial system – only a few years ago, an unthinkable move even for those most critical about the court’s alleged power grab.
While European politicians were holding back, a silent institutional revolution was underway. To be sure, principled defenders of democracy criticized the lack of enthusiasm and slowness with which the Commission was rising to the rule of law challenge.
But the belief that technocrats and judges could solve the largest political problem of our time, the rise of neo-authoritarianism in the center of Europe, while democratically elected leaders would play good cops, may have always been no more than a dangerous illusion.
Indeed, the crisis has only escalated. The Polish government demolished the guarantees of judicial independence, granted the minister of justice full control of the disciplinary system of judges and persecutes those who protest against this autocratic power grab. The backlash against the supremacy of EU law is spreading across the continent. In France, most contenders of Emmanuel Macron point to the Polish example as the way to go.
The collapse of the independent judiciary in an EU member state is the most serious blow to EU’s legal order. Denying the authority of the CJEU would make its breakdown perfect. No wonder that the politics of the rule of law are now hunting European leaders. They slowly realize that their strategy of waiting it out was akin to turkeys voting for Thanksgiving. It was this strategy which led the crisis swell to the extent that it cannot be contained without risky political involvement.
The time of reckoning is coming. Sooner rather than later, EU member states will have to decide whether to use financial leverage against misbehaving countries. Many believe that an open confrontation would destroy the EU. Emmanuel Macron is afraid that the Polish government could wreck the French EU presidency just ahead of the presidential election.
The Germans tend to hide behind their terrible past as an excuse for a light touch approach. Others fear that new exits from the EU could follow as a reaction against too much of insistence on what actually makes the European project. Or believe that allowing the Court of Justice of the EU to have too much say regarding national judges would destroy the institutional balance of power and pave the way for the federalisation by stealth.
These may all be noble objections. But their proponents do not see the forest through the trees. At stake is not least the question of whether the EU remains a bloc of democracies or starts eroding towards an association without a common destiny. Dismantling of the separation of power paves the way for authoritarianism.
The EU has always perceived itself as a gentlemen’s club taking respect for its internal rules for granted. But this image is outdated. European democratic leaders have no other choice than politically face up to them.
Most importantly, they should strongly endorse and defend the key role of the CJEU as the ultimate arbiter on the rule of law. This crisis has thought us – also because of the unwillingness of the EU member states to engage in political disputes – that there is no better way to protect the EU’s foundations. The fear of an escalation of a conflict is understandable.
But if the EU is a political family, then it must finally accept that even big quarrels very often have a purifying effect. The EU needs it more than ever.
Piotr Buras is the head of the Warsaw office of the European Council on Foreign Relations (ECFR). This article text is part of a cooperation between Europe.Table and the ECFR Annual Council Meeting on 9 and 10 December.
Thursday was Germany Day in Brussels. Two freshly minted ministers of the new traffic light government – Annalena Baerbock and Nancy Faeser – paid their inaugural visit to the EU institutions. Foreign Minister Baerbock was in the spotlight. After all, she is the first woman to hold this office, and after all, for some time, she was considered to be Angela Merkel’s successor. That arouses curiosity.
Unfortunately, there was not much news. After a meeting with EU chief diplomat Josep Borrell, Baerbock made a commitment to Europe. The EU is a “success story” and is very close to her heart, Baerbock said. So far, so predictable. Those who travel to Brussels declare their support for the EU and NATO – what else? It was also to be expected that Heiko Maas’ successor in office would call for “European solutions” in foreign policy. After all, that’s already in the coalition agreement. “Europe” appears no less than 71 times in it, and “European sovereignty” and “strategic autonomy” have also found their way in.
But what European response does Baerbock have in mind when it comes to China or Russia? As far as China is concerned, the only “American solution” we know of so far is the boycott of the Winter Olympics in Beijing. The EU has remained silent.
The US is also setting the tone on Russia and the tensions over Ukraine. No Europeans were at the table at the video summit between US President Joe Biden and Kremlin leader Vladimir Putin on Tuesday.
Baerbock will have to change that if she wants a truly European solution. She will soon find out how difficult that is: Monday is the next regular meeting of EU foreign ministers in Brussels. And then it won’t be Germany Day. Eric Bonse
Day two of the new traffic light government is over. On Thursday, the last of the new ministers took office. In line with this, we have broken down for you the leadership levels of the ministries that are particularly relevant for the Green Deal, digitalization in Europe, and German European policy. We will continue to add to this overview in the coming weeks. You can find all further developments under this link.
The developments we can expect from the French EU Presidency were announced by French President Emmanuel Macron on Thursday. My colleague Tanja Kuchenbecker explains the most important plans. Macron wants to push for better border protection, better organization of migration, and better protection for climate-friendly, European products through a CO2 border tax. Incidentally, the new German government would prefer to achieve the latter through so-called climate clubs.
Speaking of climate, next week, the EU Commission will present another package of legislation to implement the Green Deal, including a recast of the Energy Efficiency Directive for Buildings. Timo Landenberger analyses how the Commission intends to make the building sector – the EU’s biggest energy consumer – more climate-friendly.
The Commission presented on Thursday how it intends to tackle precarious working conditions on online platforms such as Uber and Deliveroo. Around 5,5 million platform workers in the EU are currently classified as self-employed, although according to the Commission, they are, in fact, employees. Jasmin Kohl explains what social protection platform workers who are not self-employed could expect in the future.
With the presentation of its Fit for 55 package last summer, the EU Commission put a comprehensive first package of measures on the table to achieve the European climate targets. Now the Brussels authority wants to follow up and present a further legislative package on December 14th, including a new version of the directive on energy efficiency in buildings.
The regulations are eagerly awaited, as they are expected to contain specific requirements for solar installations on roofs, the use of heat pumps, minimum standards for renovations, and the availability of charging stations for electric vehicles, which is likely to have far-reaching consequences. Observers also expect detailed specifications on overall energy efficiency.
According to insiders, the proposal would require all full-time buildings with the lowest energy rating G to be renovated to a higher rating by 2030. This would require EU states to renovate millions of homes, offices, and commercial buildings, with countries affected to varying degrees. In Italy, about a third of residential buildings have the lowest energy efficiency class G, while in the Netherlands it is only four percent.
Such concrete requirements by the EU Commission are therefore causing legal disputes even before the directive is published. The Regulatory Scrutiny Board (RSB), for example, has reportedly rejected the draft legislation on several occasions, arguing that it violates the principle of subsidiarity and does not give the member states sufficient flexibility in achieving the objectives.
The principles of subsidiarity and proportionality are based on the Treaty on European Union (TEU), guaranteeing the protection of national sovereignty and providing that the EU will only legislate if the objectives of a measure can be better achieved at the EU level than by the member states themselves. However, the need for a carbon-neutral building stock in the EU to meet climate targets is a good argument that justifies top-down legislation by the EU, says Matthias Buck, director of the Europe department at the think tank Agora Energiewende. Leaving decarbonization to the member states is “a high risk”.
MEP Ciarán Cuffe also calls for EU minimum energy performance standards and insists on an even more ambitious roadmap. “We only have a decade to tackle the climate emergency,” the Irish politician, who is covering the issue for the Greens/EFA group in the EU Parliament, tells Europe.Table. “We cannot wait until 2030 for the minimum standards to be applied.” The Commission, therefore, needs to come up with a proposal that is as ambitious as possible, he said.
Markus Pieper, energy policy spokesman for the CDU/CSU in the EU Parliament, sees things differently and refers to the European Emissions Trading Scheme (ETS). The Commission plans to extend this to the building sector, which should create market-based incentives for more energy efficiency and renovation. “Massive regulatory requirements, which particularly affect the private sector, are now to be added on top of this. The member states will not go along with this,” said the MEP.
36 percent of greenhouse gas emissions in the EU are attributable to the building sector, and at the same time, according to the EU Commission, 75 percent of the building stock is not energy efficient. According to a recent study by Agora Energiewende, only three percent of houses meet the efficiency standards that would be needed in the long term to achieve the climate targets. However, energy-efficient renovations are complex and, above all, expensive. The annual modernization rate is currently just one percent.
This means that the building sector is responsible for 40 percent of EU-wide energy consumption, which is one of the main reasons for growing energy poverty in some parts of Europe. A problem that is currently exacerbated by record-high gas and electricity prices. “An ambitious Buildings Directive is our best answer in the fight against fuel poverty,” says Ciarán Cuffe. A higher rate of renovation will protect citizens and reduce dependence on fossil fuels.
In fact, according to the Agora study, more than 70 percent of the energy used for heating comes from fossil fuels. The number of heat pumps must increase from the current 14 million to 50 million by 2030, demands Andreas Graf, author of the study. By 2050 at the latest, the entire sector must be climate-neutral and also act as a source of renewables by using 100 percent of potential roof surfaces for solar energy.
Long-term planning is important, along with a clear roadmap that goes beyond mere targets. This includes national renovation plans as well as “certificates” on the renovation progress of one’s own properties for homeowners on the way to climate neutrality. Both are under discussion for the Buildings Directive, Graf said. And this would also give the member states sufficient flexibility.
Couriers who work for the food delivery service Deliveroo are not employees but self-employed workers, the Brussels Labour Court ruled on Wednesday. The case, which involved only 30 couriers, is emblematic of the problem posed by the emerging platform economy: Is a platform an employer and, accordingly, are its workers employees? European regulation has so far been lacking, leading to many different court rulings in the member states.
The dilemma: Many platform workers suffer from precarious employment conditions, although they would actually be entitled to employee status. Moreover, the sector is growing immensely: The European Commission estimates that revenues in the platform economy have increased fivefold between 2016 and 2020: from around €3 billion to around €14 billion. The authority is now tackling the problem: Yesterday, it presented its proposal for a directive to improve working conditions in platform work.
The core of the directive is the fight against false self-employment. The Commission estimates that around 5.5 million of the 28 million platform workers in the EU are currently wrongly classified as self-employed, although they are, in fact, employees. As a result, they miss out on social benefits such as unemployment benefits and pensions. They are also deprived of a statutory minimum wage (if available in the respective member state), collective bargaining, health insurance, regulated working hours, health protection, or paid holidays.
In order to be able to determine in the future whether a platform assumes the role of an employer in an employment relationship, the Commission provides for five criteria. If at least two of these criteria apply to a platform, it must be classified as an employer and the employees as workers.
These are the five criteria:
Platforms can challenge the classification as an employer according to the list of criteria, but then the burden of proof lies with them. In this context, the national definitions of employee status apply, as there is no European definition of the term employee.
“No one is trying to kill, stop, or hamper the growth of the platform economy,” said Employment and Social Rights Commissioner Nicolas Schmit, stressing that the proposal’s clear guidelines are intended to give legal certainty to all sides. Moreover, he said, the Commission did not want to create an instrument against self-employment by doing so. After all, platforms would still have the possibility to change their terms and conditions so that they could legally employ self-employed workers.
It is not only the business models of online platforms that are based on algorithms. They also use the automated systems as a management tool: Algorithms thus decide on the distribution of tasks, monitor and evaluate employees or impose sanctions. However, employees are largely unaware of how the algorithms work. The new rules are intended to put an end to this: Information about how they work is to be shared; only personal data directly related to the work is to be collected and processed. In addition, algorithms must be monitored by humans and algorithmic decisions must be challengeable. These transparency obligations benefit not only the employees of online platforms but also the self-employed who work with the platforms.
The alliance “Delivery Platforms Europe”, which also includes Uber Eats and Deliveroo, criticized the proposed legislation even before the Commission had presented it: A study had shown that the re-categorization of platform employees envisaged by the Commission could lead up to 250,000 couriers into unemployment. The argument: The proposed legislation would destroy the flexibility that makes the platform work function. The majority of platform workers, however, want to continue to be able to freely decide on their working hours.
“With this argument, the platforms want to turn their workers against salaried employment,” says Ludovic Voet, secretary responsible for platform work at the European Trade Union Confederation (ETUC), when asked by Europe.Table. This has nothing to do with reality, as Take Eat Easy or Just Eat already offer salaried employment and still allow their workers to choose when they want to work. “If platforms really care about their workers, they should come to the negotiating table with the unions and start collective bargaining like any other responsible employer,” Voet said.
DGB President Reiner Hoffmann expressly welcomes the proposal: “Digitalization has created a shadow labor market on labor platforms that urgently need fair rules. It is therefore high time that the EU finally wants to bring light into the darkness and that work via digital platforms no longer takes place in a legal vacuum.”
“From my point of view, this is absolutely a step in the right direction,” commented Dennis Radtke (CDU), MEP and social policy spokesman for the EPP Group, in response to a question from Europe.Table. As shadow rapporteur for the EPP, he played a decisive role in the own-initiative report, with which the European Parliament had already formulated concrete demands to the Commission in mid-September on how working conditions on online platforms should be improved. “The proposal takes up in many places what we as a Parliament also demanded in our own-initiative report. Together, we now have a great opportunity to improve the rules of the game in the platform economy – both for employees and with a view to fair competition,” said Radtke.
Before the directive can enter into force, it still has to be negotiated in the European Parliament and the Council. Once the two co-legislators in the trilogue find a common position with the Commission, the member states will have two years to implement the law.
For the first time since the beginning of the pandemic, Emmanuel Macron held a press conference in the grand setting of the Élysée Palace. The president looked confident. His tone was firm and positive. For an hour, he spoke about Europe and his plans for France’s upcoming EU presidency. “For the first time, there are existential problems,” Macron said, including climate and health. Europe must therefore change from the ground up, he said. On January 19th, he wants to present his concept to the EU Parliament in Strasbourg. On Thursday, he already gave a glimpse of the priorities he will set.
His main goal: a more sovereign Europe. This Europe must be able to protect its borders, Macron said. With regard to the migration crisis between Poland and Belarus, he announced that France would propose the establishment of a rapid reaction system to help with crises at the borders. There would also be regular meetings to take joint policy decisions. “If a member state has problems, it must be able to count on Frontex, but it must also be able to count on the support of the other member states.” Better organization of Europe on migration must be the goal, Macron said.
The second element of a more sovereign Europe for the French President is “progress in defense policy”. He called for a defense policy inventory listing threats and precise details of threatening organizations and discussing strategies. A strengthening of European defense policy is necessary, Macron said.
Europe must also defend its economy and its social system, he continued. In March, there would be a summit of European heads of state in France. The topic: “The new European model of growth and investment”. The economy, industry, technology, and jobs should be strengthened. To achieve this, the integration of Europe must continue, Macron said, without giving specific details.
If the head of state has his way, Europe must also become a “digital power”. To this end, “digital champions” should be created and start-ups supported. There are no European champions in the tech world so far, Macron said. Therefore, talent must be promoted, and financing must be ensured. Europe itself must define the rules for the digital world.
Macron also wants to campaign for the protection of climate-friendly European products during the French EU Council Presidency. He said he wanted to create a CO2 levy on imports so that Europe is not at a disadvantage compared to other countries that cause more emissions during production. He declared the border adjustment mechanism (CBAM) to be a central component of the EU strategy for the transition to a climate-friendly industry.
A new German-French bone of contention could emerge on the subject of border adjustment. Sven Giegold, Germany’s newly appointed state secretary for economic affairs, spoke out on Thursday in favor of so-called climate clubs instead of a European CO2 border tax. According to Giegold, the disadvantage of the border tax is that it does not protect the German export industry in non-European markets in competition with less climate-friendly countries. “There, we also tend to have a different interest position with France, as we are stronger exporters.” Under the Climate Club idea, the world’s leading economies could agree on standards for climate-friendly production so that there would be a level playing field in this field. Tanja Kuchenbecker with rtr
Our editorial team will supplement this overview in the coming weeks with further names and functions as soon as they are known.
If you want to keep track of further personnel developments, check this link regularly to see what further developments we can share with you.
You are also welcome to send further suggestions for additions to editorial director Till Hoppe if you know of any other personnel decisions before we do.
Almost 50 non-governmental organizations have criticized the renewed delay of the EU supply chain law. It is “unacceptable” that the European Commission is delaying such an important piece of legislation for the third time, they say in an open letter to its president Ursula von der Leyen. The signatories include Oxfam, Global Witness, the Supply Chain Law Initiative, and the European Trade Union Confederation.
The Commission had again postponed the presentation of the bill, which was last planned for December because the internal committee for regulatory control raised objections against the project (Europe.Table reported). The presentation is now scheduled for the end of February. It is worrying that the exact reasons for the decision remain in the dark, the NOGs said. They criticize “a complete lack of transparency”.
There are considerable reservations in the industry about the proposed legislation. Non-governmental organizations, on the other hand, are in favor of imposing due diligence obligations on all companies operating in the EU in order to prevent human rights violations and environmental damage. In addition, the access of victims to justice should be improved. tho
EU states want to limit the validity of COVID vaccination certificates for travel to nine months, according to insiders. A commission representative and an EU diplomat told Reuters news agency on Thursday that EU governments are expected to agree on this as early as this Friday. However, some countries with lower vaccination rates are still concerned about the impact this could have on travel, a third EU diplomat said.
The EU Commission is pushing for a uniform approach by all member states, as it otherwise fears negative consequences for travel due to differing restrictions. “Our main goal is to avoid divergent measures across the EU,” said Justice Commissioner Didier Reynders. Therefore, a standard validity period of nine months has been proposed for vaccination certificates issued after the completion of the first vaccination series.
Different rules currently apply in the EU countries. France, for example, has set a deadline of seven months. It is to apply from January 15th, while the Commission has proposed a start on January 10th. In Cyprus, the certificate would also be valid for seven months, while in Greece, it would expire after six months for older people. An EU official said both countries were now ready to move to a common EU limit. rtr
The Italian antitrust authority has fined Amazon €1.13 billion for abuse of a dominant position. This is one of the highest fines imposed on a US tech giant in Europe. Amazon said it would appeal.
According to the Italian regulator, Amazon has abused its strong position as a platform for other retailers to favor its own logistics service “Fulfilment by Amazon” and disadvantage competing logistics providers. According to the report, Amazon has linked the use of its logistics service to access to a number of exclusive benefits, including the Prime label, which helps to increase the visibility of products.
Other providers, however, would be prevented from linking the Prime label to offers, the authority said. The antitrust authority is now imposing remedies on the group, which will be overseen by a trustee. Amazon countered that Fulfilment by Amazon is a voluntary service that is not used by the majority of third-party sellers on Amazon. “When sellers choose FBA, they do so because it is efficient, convenient, and competitively priced,” the US company said in a statement.
The EU Commission had launched a similar investigation against Amazon a little over a year ago that extended beyond Italy. A spokeswoman for the Commission said that it had worked closely with the Italian authorities. In addition, the Brussels competition authorities accuse the company of abusing its access to business data of other retailers on its platform for its own benefit. rtr/tho
The German Federal Cartel Office wants to investigate the impact of Facebook’s takeover of US startup Kustomer on the German market. “Our preliminary examination has shown that Kustomer is also active in Germany,” Kartellamt chief Andreas Mundt said on Thursday. He said the planned takeover fell within the scope of German merger control and would have to be notified by Facebook to the Cartel Office for examination.
The US group, which is currently renaming itself Meta, would have to “submit appropriate documentation without delay”. The EU Commission is already taking a close look at the plans for the merger. The takeover of customer management specialist Kustomer by the world’s largest social network could restrict competition and increase Facebook’s market power in online advertising, the EU competition watchdog had warned. The British competition authority CMA is also investigating the case. rtr
Early Thursday morning, Parliament, Council, and Commission agreed on amendments to the Roaming Regulation. The revision mainly includes minor changes to the regulation, which prescribes how mobile providers must treat and bill each other for voice and data traffic of users from other EU countries. In the future, guest network operators must ensure the same quality that is available to the user in the home network.
Extensive deletions to the old regulation make it somewhat more general. Over the coming years, the price caps for voice minutes and data traffic that customers’ contract partners in the home country have to pay to the host network operator will be further reduced.
In addition, new information requirements on the use of value-added services abroad that are not covered by roaming will be included. Also new are provisions for references to the emergency number 112, which can be used throughout Europe and will take effect from mid-2022. A cap on roaming charges for intra-EU calls demanded by the European Parliament, however, was not included in the regulation. The Commission is to examine this by 2024. fst
One of the most striking messages from the new German coalition agreement refers to the rule of law in the European Union. The so-called traffic light parties not only urge the EU Commission “to use the existing rule of law instruments more consistently and in a timely manner,” but they also maintain that Berlin will only agree to release recovery fund money for countries like Hungary and Poland “if preconditions such as an independent judiciary are met”.
This wording echoes Dutch Prime Minister Mark Rutte’s statement from late October, claiming that he could not see the money for those countries being disbursed as long as the dispute over the rule of law persists. His Belgian peer Alexander De Croo was even more blunt. “This is a fundamental political problem that needs to be solved politically, by the European Council and by the European Parliament,” he said in a speech which shocked Warsaw to the extent that the Belgian ambassador was summoned by the Polish ministry of foreign affairs.
No doubt, there is a new tone in the European debate on the EU’s fundamental norms and values. Until recently the battle over the rule of law was exclusive territory of supranational institutions – the Commission, Court of Justice of the European Union, and the European Parliament. The EU member states happily outsourced to them this unthankful job of bringing EU’s black sheep to the fold. Angela Merkel was most instrumental in stressing that the rule of law is a European issue and thus the EU institutions should deal with that – as if the member states were not the real masters of the EU treaties.
Behind the curtains, Germany stepped on the brake in the conviction that an escalation of the conflict would tear the EU apart. This depoliticization of the rule of law issues – delegating them to technocratic and judicial bodies instead – resulted in those bodies expanding the use of their instruments and powers.
The Commission resorted to infringement procedures, usually used to ensure compliance with boring sectoral regulations, to defend independent courts and thus foundations of the democratic order. The CJEU stepped in with rulings requiring dismantling some key pillars of Poland’s judicial system – only a few years ago, an unthinkable move even for those most critical about the court’s alleged power grab.
While European politicians were holding back, a silent institutional revolution was underway. To be sure, principled defenders of democracy criticized the lack of enthusiasm and slowness with which the Commission was rising to the rule of law challenge.
But the belief that technocrats and judges could solve the largest political problem of our time, the rise of neo-authoritarianism in the center of Europe, while democratically elected leaders would play good cops, may have always been no more than a dangerous illusion.
Indeed, the crisis has only escalated. The Polish government demolished the guarantees of judicial independence, granted the minister of justice full control of the disciplinary system of judges and persecutes those who protest against this autocratic power grab. The backlash against the supremacy of EU law is spreading across the continent. In France, most contenders of Emmanuel Macron point to the Polish example as the way to go.
The collapse of the independent judiciary in an EU member state is the most serious blow to EU’s legal order. Denying the authority of the CJEU would make its breakdown perfect. No wonder that the politics of the rule of law are now hunting European leaders. They slowly realize that their strategy of waiting it out was akin to turkeys voting for Thanksgiving. It was this strategy which led the crisis swell to the extent that it cannot be contained without risky political involvement.
The time of reckoning is coming. Sooner rather than later, EU member states will have to decide whether to use financial leverage against misbehaving countries. Many believe that an open confrontation would destroy the EU. Emmanuel Macron is afraid that the Polish government could wreck the French EU presidency just ahead of the presidential election.
The Germans tend to hide behind their terrible past as an excuse for a light touch approach. Others fear that new exits from the EU could follow as a reaction against too much of insistence on what actually makes the European project. Or believe that allowing the Court of Justice of the EU to have too much say regarding national judges would destroy the institutional balance of power and pave the way for the federalisation by stealth.
These may all be noble objections. But their proponents do not see the forest through the trees. At stake is not least the question of whether the EU remains a bloc of democracies or starts eroding towards an association without a common destiny. Dismantling of the separation of power paves the way for authoritarianism.
The EU has always perceived itself as a gentlemen’s club taking respect for its internal rules for granted. But this image is outdated. European democratic leaders have no other choice than politically face up to them.
Most importantly, they should strongly endorse and defend the key role of the CJEU as the ultimate arbiter on the rule of law. This crisis has thought us – also because of the unwillingness of the EU member states to engage in political disputes – that there is no better way to protect the EU’s foundations. The fear of an escalation of a conflict is understandable.
But if the EU is a political family, then it must finally accept that even big quarrels very often have a purifying effect. The EU needs it more than ever.
Piotr Buras is the head of the Warsaw office of the European Council on Foreign Relations (ECFR). This article text is part of a cooperation between Europe.Table and the ECFR Annual Council Meeting on 9 and 10 December.
Thursday was Germany Day in Brussels. Two freshly minted ministers of the new traffic light government – Annalena Baerbock and Nancy Faeser – paid their inaugural visit to the EU institutions. Foreign Minister Baerbock was in the spotlight. After all, she is the first woman to hold this office, and after all, for some time, she was considered to be Angela Merkel’s successor. That arouses curiosity.
Unfortunately, there was not much news. After a meeting with EU chief diplomat Josep Borrell, Baerbock made a commitment to Europe. The EU is a “success story” and is very close to her heart, Baerbock said. So far, so predictable. Those who travel to Brussels declare their support for the EU and NATO – what else? It was also to be expected that Heiko Maas’ successor in office would call for “European solutions” in foreign policy. After all, that’s already in the coalition agreement. “Europe” appears no less than 71 times in it, and “European sovereignty” and “strategic autonomy” have also found their way in.
But what European response does Baerbock have in mind when it comes to China or Russia? As far as China is concerned, the only “American solution” we know of so far is the boycott of the Winter Olympics in Beijing. The EU has remained silent.
The US is also setting the tone on Russia and the tensions over Ukraine. No Europeans were at the table at the video summit between US President Joe Biden and Kremlin leader Vladimir Putin on Tuesday.
Baerbock will have to change that if she wants a truly European solution. She will soon find out how difficult that is: Monday is the next regular meeting of EU foreign ministers in Brussels. And then it won’t be Germany Day. Eric Bonse