Table.Briefing: Europe (English)

Criticism of armaments strategy + German Vote on forced labor ban? + Harassment in the EP

Dear reader,

Is the next German Vote on the horizon? On Tuesday night, the EU Parliament and Council reached an agreement on an import ban for products from forced labor – however, whether the traffic light coalition will support the agreement is highly questionable. According to government circles in Berlin, the FDP has recently raised political concerns. The Federal Ministry of Finance has pointed out that they first want to examine the outcome of the negotiations.

The Free Democrat ministers recently forced the German government to abstain on a whole series of dossiers, the most prominent of which is the Supply Chain Directive CSDDD. However, unlike there or in the case of platform work, the regulation on forced labor will likely find the necessary qualified majority in the Council even without German approval.

Berlin’s position on the Packaging Ordinance, also negotiated on Monday evening, remains to be seen. Before this, the German government had linked its approval to substantive demands. Some points have now been taken into account – for example, several companies can join forces to achieve certain goals together. However, the ministries involved were still evaluating the text agreed in the trilogue yesterday.

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Till Hoppe
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Feature

Armaments strategy: industry warns of confusion

“We have no plans to set up an arms depot in Berlaymont,” said EU Foreign Policy Chief Josep Borrell. The flippant remark was probably intended to set expectations somewhat straight on Tuesday. Vice-President Margrethe Vestager and Internal Market Commissioner Thierry Breton were also defensive at the presentation of the European Defense Industry Strategy (EDIS) and the parallel program with financial incentives (EDIP). The aim was not to call into question the prerogatives of the Member States in terms of defense policy but to promote the industrial base in Europe.

Individual elements were toned down compared to earlier drafts. The option to prioritize orders in the event of a crisis should only be voluntary and in consultation with the defense industry. And a European mechanism modeled on the US Foreign Military Sales procedure (FMS) is now only to be tested as a pilot project.

Is 1.5 billion from the MFF enough?

The aim is to have at least 40 percent of arms purchases made jointly by 2030. And Member States are encouraged to make at least half of their arms purchases within the internal market by the end of the decade, as opposed to 80 percent outside last year. For this turnaround, €1.5 billion from the MFF will initially be available for incentives.

Experts consider the amount to be too small to have an impact given the costs of procurement programs. However, Thierry Breton was confident that additional funds would be found in the next legislative period.

Concerns about non-transparent interventions by the Commission

Initial reactions from the arms industry and the capitals were mixed. “It is welcome that the EU Commission is trying to promote joint European procurement and create more predictability for the security and defense industry,” reacted Hans Christoph Atzpodien, Managing Director of the Federal Association of the German Security and Defense Industry (BDSV).

However, the “intervention logic” is unlikely to go down well in some European capitals, warned Atzpodien. Non-transparent planning and intervention options for the Commission could ultimately lead to “confusion” from an industry perspective. In other areas, the proposal does not go far enough, for example, in minimizing bureaucratic hurdles for the industry.

Jean Pie, Secretary General of the Aerospace, Security and Defense Industries Association of Europe (ASD) in Brussels, gave a positive initial assessment. The success of EDIS and EDIP now depends on the reaction of the member states. Speed and financial resources are essential for the implementation of the strategy.

Will Germany follow suit?

A French diplomat welcomed the strategy but was skeptical about its implementation in Germany. European procurement has been a core element in the EU since the Strategic Compass at the latest. Most recently, Chancellor Olaf Scholz took a different approach with the European Sky Shield Initiative and the procurement of the US Patriot air defense system.

In Berlin, the BMWK “fundamentally welcomes” the initiative to strengthen the European military capability and defense industry. However, the proposal still needs to be analyzed and evaluated in detail.

The EU Commission’s initiative is “a step in the right direction,” reacted Daniel Caspary, Chairman of the CDU/CSU group in the EU Parliament. The Russian attack on Ukraine and its consequences showed on a daily basis that Europe had neglected its defense capabilities in recent years.

The EU needs increased investment in the defense sector and more European cooperation in order to save resources and money and jointly make strategic decisions, said Hannah Neumann, Green/EFA member of the Subcommittee on Security and Defense in the EU Parliament. However, armaments should not be played off against pensions or the climate. The EU needs additional funding for the upcoming investments. Contribution: Wilhelmine Preußen and Gabriel Bub

  • Armor
  • Defense Policy
  • Security policy

Trilogue agreement on forced labor: no compensation for victims

Products manufactured using forced labor will no longer be made available on the EU internal market, sold and exported from there. The EU Parliament and Council reached an agreement on the new regulation on Tuesday night. Contrary to the demands of the Parliament and civil society, material compensation for victims of forced labor will not initially be enshrined in law.

In the future, the EU Commission and competent authorities in the member states are to identify products whose supply chain involves people in forced labor. The following criteria are to be taken into account:

  • Extent and severity of forced labor;
  • the question of whether the forced labor was initiated by the state;
  • the number or volume of products made available on the EU internal market;
  • the company’s proximity to forced labor in the supply chain and its ability to address it.

The Commission is to collect information on forced labor risks in a database and also take into account reports, for example from the International Labor Organization (ILO).

Forced labor affects dozens of large companies

The EU Commission presented the draft law in September 2022. It justifies the initiative with the UN development goal of completely eliminating forced labor by 2030. According to the ILO, around 27.6 million people were forced to work in 2021 – around 12 percent of them children. The majority of them had to work in the private sector; 3.9 million were victims of state-imposed forced labor, presumably in the Chinese region of Xinjiang.

“Finally, no more slave labor in our products,” commented Anna Cavazzini (Greens), the shadow rapporteur in Parliament, after the agreement. According to a report she commissioned in 2021, more than 80 international brand companies benefit directly or indirectly from labor forced on Uyghurs in China.

Draft law supplements supply chain directive

The still unfinalized EU Supply Chain Act would not cover the marketing and supply of such products on the internal market. The Supply Chain Act does list forced labor as a violation of international agreements and provides for sanctions if companies do not comply with their due diligence obligations. However, it focuses on corporate behavior and does not contain any options for banning such products.

The legal text deals in particular with state-initiated forced labor.

  • This is defined following the ILO Convention on the Abolition of Forced Labor of 1957.
  • Sectors in regions with state-initiated forced labor are identified by the Commission in the database.
  • The decision on a product ban for these regions will be based on less detailed data.

Parliament had originally called for high-risk sectors to be identified in regions with predominantly state-initiated forced labor. This is because in Xinjiang, for example, it is generally impossible to collect the necessary evidence. The wording that has now been found therefore goes some way towards meeting Parliament’s demands.

Criticism of missing regulation for compensation

However, Parliament was unable to push through its demand to enshrine compensation for victims of forced labor in law. According to the agreement, companies should only make voluntary compensation payments. The agreement also contains a review clause for the potential inclusion of a reparation regulation at a later date.

A number of companies and NGOs had urged for effective compensation in a joint statement in February. “Reparation is an important step in human rights due diligence,” it said, referring to the UN Guiding Principles on Business and Human Rights and the OECD Due Diligence Guidance.

The Institute for Human Rights criticizes the lack of a reparation provision. This “harbors the risk that companies will disengage from problematic business partners without any improvement for those affected,” explained Deputy Director Michael Windfuhr. Depending on the situation, restitution could include, for example, the return of withheld identity documents and wages, release from debt bondage and the improvement of working and living conditions. Despite the lack of regulation, Windfuhr described the final agreement as a “decisive step towards ensuring that the EU internal market is not a sales market for products manufactured using forced labor.”

Abstention of the Federal Government likely

Jörgen Warborn, the shadow rapporteur for the EPP group, particularly praised the measures to support small and medium-sized enterprises. “This includes specific provisions for SMEs, such as a hotline based in their own country, which enables them to receive live support in complying with the regulation,” he explained.

The competent authorities are to be given three years to implement the regulation, after which it will come into force. However, the Council and Parliament must first adopt the outcome of the trilogue negotiations. On March 20, the lead committees for the internal market and international trade will vote first.

It is still unclear whether the law will receive the necessary majority in the Council. Germany had already abstained in the vote on the Council’s negotiating mandate; supporters of the regulation now fear that another abstention by the German government under pressure from the FDP could cause the project to falter, similar to the EU Supply Chain Act. As things stand at present, however, a qualified majority would probably be achieved even without Germany. The Federal Ministry of Finance said that the result still had to be assessed.

  • Economy
  • EU
  • Forced Labor
  • ILO
  • Trade policy
  • Uiguren
  • Work

John Clarke: ‘subsidisers like the US, China and India are content with the status quo’

John Clarke: Director for International Affairs in the EU Commission’s AGRI Directorate-General until 2023, previously WTO Head of Delegation.

The WTO Ministerial Conference ended on Friday night without any results on agriculture. The topics discussed included restricting national subsidies. What do you make of this outcome?

John Clarke: There was not even an agreement or a text committing WTO members to continue negotiations. Several major subsidisers like the US, China and India are content with the status quo and did not want to see progress. So we are back to square one.

What does this mean for the future?

There needs to be a rethink at the WTO. Business as usual clearly does not work. Perhaps there needs to be a new focus on what kind of agricultural reforms will benefit global food security or the environment.

And perhaps there needs to be now an incremental approach beginning with more achievable issues. For example, instead of trying to achieve that countries like Argentina or India no longer impose export restrictions on food, we could at least aim to get the least developed countries exempted.

Above all, there needs to be a rebuilding of trust between Members, without which no negotiations can succeed.

How can this be achieved?

That takes time. Moreover, ambassadors must be empowered again, rather than national ministers “micromanaging” the negotiations or the WTO Directorate-General wanting to control everything. This approach has been successful in the past.

‘The EU cannot afford retaliatory measures’

Should the EU assert its interests in international trade more strongly through mirror clauses, as protesting farmers are demanding?

The situation is not black and white. One needs to look on a case-by-case basis at the legality of mirror clauses. In principle, you cannot ban a product because you disagree with the way it is produced, where that production method has no effect on the imported product. The WTO for very good reasons prohibits that kind of approach which can slide quickly into protectionism. As the biggest and most successful agricultural exporter in the world, the EU cannot afford retaliatory measures.

But there are exceptions.

The EU law on deforestation-free supply chains prohibits the import of beef, soy, palm oil and other products if forests are cut down for their production.  This can be done without violating WTO law because climate protection is a global good. The use of antibiotics to promote growth is also prohibited for imports because of its risk to global health.

As regards animal welfare, the EU imposes on imported meat equivalent standards as those in the EU on the slaughter and transportation of farm animals. If the EU hopefully bans cage farming soon, the same should apply to the production of imported goods. There is no reason not to do so.

The decisive factor here is that these practices are cruel to animals in the eyes of the European public. If the EU invokes this “public morals” justification of the WTO when banning imports, it must be able to prove this in the event of WTO proceedings. For example, the petition to “End the cage age”, which one million people have signed is good evidence of the public’s objection to such practices.

‘There is no a systematic problem of unfair competition’

The EU Commission has banned residues of two insecticides in imported goods, citing species protection as a global good. Could this set a trend?

Perhaps. However, I do not believe that such an approach to pesticide residues or the banning of certain pesticides can be applied systematically, but only on a case-by-case basis. Each time, we would have to ask the question: Does the use of this banned pesticide abroad really affect the environment in Europe, and not just, for example, in Argentina or Ghana?

In my view, the recent ban on the two bee-harmful insecticides is quite near the margin of what is legal.

Would you agree that farmers in the EU are at a disadvantage on international markets because of higher production standards?

I do not believe that there is a systematic problem of unfair competition. Here and there perhaps, but not structurally. Moreover, other countries have the right to have different priorities than we do.

The protesting farmers in the EU have a different view. Do you understand their concern?

We should bear in mind that we are a very successful and competitive trading power in the agricultural sector and that imports already have to meet our food safety and health standards as well as certain animal welfare standards.

That being said, there are cases where producers in other countries have lower standards and therefore have an advantage. But this is not necessarily a negative thing. 

‘Trading partners are concerned about their reputation’

Why not?

The strength of the EU lies in high production standards. It’s a fantastic tool for global marketing! I also believe that countries that export to the EU are concerned about their reputation and make an effort to maintain high production standards at least for our market.

How can the EU ensure a level playing field in international agricultural trade?

We need to work together to agree on global standards. Admittedly: that may take time. But if we do not want trade wars, or Europe going it alone, there is no alternative.

In addition, in some areas, we can create incentives for other countries to voluntarily adhere to our standards, which are often the de facto international standard anyway due to the size of our market. This is known as the Brussels effect!

An example?

The EU’s internal ban on the use of hormones and growth promoters in animal husbandry also applies to many of our trade agreements. Our trading partners accept this and implement our rules because that way, they gain access to the European market.

  • European Commission
  • Farmer protests
  • Trade policy
  • WTO

News

MeTooEP survey in the EP: many employees complain of harassment

Sexual and psychological harassment continues in the European Parliament. A now-presented survey of staff and MEPs conducted between June and August 2023 by the MeTooEP group, shows that half of the respondents have experienced bullying at least once (49.5 percent), eight percent at least one case of physical violence and 15 percent sexual harassment. Almost half of the respondents had witnessed harassment (42.43 percent).

The questionnaire was sent to all employees of the European Parliament and MEPs. In the first week alone, around ten percent of contacted employees completed it, MeTooEP announced on Tuesday when presenting the data. A total of 1,135 people took part in the survey.

MeTooEP is a group of European Parliament staff fighting against sexual harassment and all forms of abuse in the Parliament. The alliance has been around since 2018 and advocates for mandatory anti-harassment training, external and independent audits and an independent structure to deal with all forms of harassment in the European Parliament. They also call for sexual harassment to be considered a criminal offense and for effective support for victims.

‘Still too many barriers’

The group explains that the survey revealed various responses to reported sexual harassment. Either no action was taken or the allegations were not taken seriously in the professional environment, in some cases, there was punitive action on the part of the superior.

Sexual harassment and bullying continue because “measures to protect victims are insufficient,” explained Nathalie de Montigny, a lawyer for European civil law, at the presentation of the survey. “There are still too many barriers” that prevent victims from defending themselves, continues Myrthe Bovendeaard, a former parliamentary assistant to the Green Group in the European Parliament and initiator of a new network to support victims of harassment, the “Harassment Support Network.”

Bovendeaard points out, for example, the difficulties in gathering evidence or the lack of protection for victims while an investigation is ongoing. The legal channels for holding harassers to account are insufficient, adds Nicholas Aiossa, Director of Transparency International and former assistant in the European Parliament.

Targeting the Greens

The publication of the survey came just days after MEP Malte Gallé (Greens) resigned after Stern magazine published allegations of sexual harassment against him by a dozen female assistants and interns. Although the Greens have put the fight against sexual and psychological harassment at the top of their political agenda, they were accused of at best ignoring the problem and at worst covering it up.

“The anonymous reports are very concerning and affect me and us. In the Greens/EFA Group, we are united by the goal of protecting people in the workplace from harassment and inappropriate behavior,” writes Terry Reintke at the request of Table.Briefings. “Due to recent developments, the Group Executive Committee will evaluate existing processes and strengthen internal procedures. The Group Executive Board will present appropriate measures and incorporate feedback from our employees,” Reintke continues. cst

  • Arbeitnehmerrechte

EPP assigns Commission homework for AI regulation

Axel Voss, the EPP shadow rapporteur for the AI Act, has drawn up a ten-point roadmap to make it a little easier for EPP MEPs to approve the AI Act. In it, he sets out how the Commission can address the weak points of the AI Act in its work. The final vote in the plenary session of the European Parliament is scheduled for March 13.

The AI Act is a complex and complicated piece of legislation that could jeopardize the competitiveness of the European AI ecosystem, writes Voss. The application for developers and users of AI must therefore be simplified. Unnecessary bureaucracy must be avoided, legal uncertainties clarified and innovations supported. Voss therefore calls on the Commission to carry out a thorough gap analysis and to identify and clarify contradictions and overlaps between the AI Act and other horizontal or sector-specific laws.

Voss: more money for Digital Europe

Voss is also calling on the Commission to develop a concrete strategy for innovation in AI. The latest communication on AI start-ups and innovation is rather vague and misses the opportunity to link the few innovation aspects of the AI law with concrete practical measures. The Commission should therefore present a comprehensive AI roadmap for the EU. This should also include concrete investment sums and strategies for attracting more venture capital.

The upcoming political discussions on the Multiannual Financial Framework (MFF) should take into account the new expenditure for the AI Office, regulatory test beds and HPC capacities, writes Voss. “In particular, the budget of the Digital Europe program must be significantly increased.vis

Back-up power plants: Commission wants a more differentiated risk assessment

When approving capacity mechanisms for the electricity market, the EU Commission wants a more differentiated risk assessment of the security of supply in the EU. “We have different risks in the member states,” Catharina Sikow-Magny, Director of the Directorate-General for Energy, told Table.Briefings on Tuesday on the sidelines of a solar conference in Brussels. An interruption of Russian gas supplies, for example, had not been taken into account in the central scenario of the European assessment of the adequacy of resources.

Whether the Commission approves aid for the construction of power plants to secure the power supply during blackouts or crises depends largely on this assessment. In Germany, the Federal Ministry of Economics is planning the construction of new gas-fired power plants and is dependent on approvals from Brussels.

The latest amendment to the Electricity Market Regulation has already obliged the European regulatory agency ACER to revise the methodology for assessing the security of supply. According to Sikow-Magny, the Directorates-General for Energy and Competition are also working on adapting their internal processes to speed up the approval of capacity mechanisms. ber

  • Electricity market
  • Natural gas
  • Power
  • State aid law
  • Wasserstoff

Solar industry: Commission urges Member States to hurry

Given the expiry of state aid options, the Commission believes that the EU states must make decisions on the promotion of the solar industry and other green production sectors quickly. “The deadline is approaching for the temporary framework TCTF, and the Recovery and Resilience Facility will also expire soon,” said Maive Rute, Deputy Director-General of the Directorate-General for the Internal Market, at a solar congress in Brussels on Tuesday.

In the Net-Zero Industry Act, the EU member states have committed to massively expanding production capacities for solar technology by 2030. In a letter to the Member States, Commissioners Kadri Simson and Thierry Breton had already urged the national governments to put up their own money and make full use of the possibilities offered by the TCTF for increased subsidies. The aid framework is limited until the end of 2025. The possibility of promoting investments with EU funds from the ARF expires one year later.

However, the solar industry is bothered by the fact that the TCTF does not allow any funding for running costs. The argument is that banks would find it easier to finance investments as a result of the longer period of security. Behind closed doors, there is also criticism of the fact that the highest funding rates are only possible for projects in disadvantaged regions. “If you have to invest away from industrial centers, this drives up the costs of setting up a closed supply chain enormously,” said a solar manager on the sidelines of the Brussels conference. ber

  • Beihilfen

Germany and France want to procure ammunition for Ukraine

Germany and France want to work together to procure ammunition for Ukraine on the world market. This was agreed by Foreign Minister Annalena Baerbock and the French head of department Stéphane Séjourné at a meeting in Paris on Tuesday, according to delegation circles. The talks focused on how Germany and France could support Ukraine “with very concrete measures”, “for example, through the worldwide procurement of ammunition”, it was reported.

Ukraine is currently also complaining about the lack of ammunition, which is why the Russian armed forces have repeatedly made territorial gains, particularly on the eastern front. In their “good and trusting conversation,” Baerbock and Séjourné also discussed how Germany and France could contribute to the European Union’s peace fund for Ukraine (European Peace Facility), according to delegation circles. They also discussed how both countries could “counteract attempts to destabilize Moldova.”

On Tuesday morning, Baerbock countered the impression that relations between Germany and France were under serious strain. “Deep friendship and solidarity are not expressed by always agreeing with each other,” said Baerbock during a visit to Sarajevo. rtr

  • Verteidigungspolitik

WTO agrees with EU: palm oil diesel is not renewable due to deforestation

The EU may exclude biodiesel from Malaysia as a renewable biofuel. The European Union won a corresponding victory at the World Trade Organization (WTO) on Tuesday when an adjudicating panel rejected a Malaysian complaint against an EU ruling.

In the first WTO ruling on deforestation, a three-member panel voted two to one to reject Malaysia’s substantive claims. However, they agreed with Malaysia’s complaint about the way the measures were prepared, published and administered. Indonesia, which had also complained, subsequently dropped its complaint and requested the suspension of the panel’s work.

The background to this is that, in the future, a ten percent share of fuels across the EU is to come from renewable energy sources, including plant-based biofuels. The EU excludes crops grown on deforested land or having a high risk of displacing food crops grown on deforested land. The EU has therefore stipulated that palm oil-based biofuel should no longer count as a renewable energy source by 2030. Malaysia and Indonesia, the world’s two largest palm oil producers, then filed a complaint against the European Union with the WTO. rtr/lei

  • Umweltschutz

Opinion

Stefanie Babst: NATO must become ‘Trump proof’

Stefanie Babst
Stephanie Babst worked for 22 years in various management positions in NATO.

With every primary election that Donald Trump wins, the dark cloud over NATO becomes more threatening. Will the Europeans be able to rely on their strongest ally in the future? What political tactics could they use to best prepare for Trump’s possible return to the White House?

Opinions differ: while some – including the government in Berlin – hope to impress the unpredictable Trump with increased defense spending, Erdoğan, Orbán and Fico would probably happily rush to meet the right-wing populist in Washington. In Poland, the Baltic states and Eastern and Northern Europe, on the other hand, there is a deep concern: would the already fragile consensus on supporting Ukraine continue to hold with Trump?

‘Make America Great Again’ harms NATO

The Western defense alliance only just survived its first meeting with Donald Trump. On several occasions, he was on the verge of turning his back on what he saw as the “obsolete NATO.” Former President Trump regularly insulted his European partners as free riders and claimed that they owed him money. Trump went it alone with his grandly announced “deals” with North Korea and Russia as well as his “peace initiative” in the Middle East.

He also left the European NATO allies uninvolved in the withdrawal of Western troops from Afghanistan negotiated with the Taliban. The result was a strategic disaster for the West. No, Trump’s credo “Make America Great Again” has not gone down well with NATO.

Can Mark Rutte save NATO?

With the former Dutch head of government Mark Rutte, who is likely to be chosen as the new NATO Secretary General, some Europeans are now hoping to somehow catch Trump. According to Rutte, all they have to do is patiently explain to him that the European allies have spent a lot more money on their defense in recent years and are prepared to take on more responsibility for their own security in the future.

It is doubtful whether the Dutchman, who is also known as the “Trump whisperer,” will be able to get this point across convincingly. After Rutte took over the reins of government in The Hague in 2010, Dutch defense spending continued to plummet for years (in 2015, it stood at 1.13 percent). In the last two years, it has also remained well below two percent.

Trump’s opportunities to harm NATO

With a charm offensive, the Europeans will hardly be able to stop Trump from putting NATO under pressure and possibly even causing lasting damage. Why? Firstly, Trump is and remains a man of conviction – a foreign policy isolationist who is fundamentally hostile to multilateral organizations. He believes in “dealmaking among the big players” and not in complicated “consensus-building at 32.”

Secondly, Trump and his supporters have been preparing intensively for a return to the White House, including in terms of defense policy. His MAGA circle has been propagating for some time that Trump would prefer to “put NATO to sleep.” In the future, the Europeans should defend their continent conventionally themselves. Only the nuclear umbrella would be maintained by the USA in Europe.

Thirdly, Trump would have several opportunities to cause concrete damage to NATO. These range from reducing US troop levels in Europe, a US “no show” at important NATO meetings, cutting funding for NATO’s military and civilian budget, to deliberately sowing public doubt about the USA’s loyalty to the alliance. Are the allies prepared for such scenarios? Hardly, because there is no official discussion of this at NATO headquarters.

The strategic problem is how to deal with Russia

NATO will certainly not flounder over future financial burden-sharing. The rift that is deepening between the allies concerns fundamental strategic issues: the fate of Ukraine and how to deal with Russia. Trump’s announcement that he wants to quickly make a “deal” with the mafia regime in Moscow after winning the election not only makes the Ukrainians’ blood run cold but also the British, Balts, Poles, Scandinavians and East Central Europeans: in other words, all those who do not want to avoid confrontation with Russia.

For this group of countries (to which I do not count Germany), making the alliance “Trump proof” means keeping their ranks tightly closed against Moscow and making concrete preparations for all eventualities – even without American help if necessary. They already have their weatherproof storm jackets at the ready.

Dr. Stefanie Babst is the former Deputy Secretary General of NATO, strategic advisor and publicist.

  • Trump 2024

Europe.table editorial team

EUROPE.TABLE EDITORIAL OFFICE

Licenses:
    Dear reader,

    Is the next German Vote on the horizon? On Tuesday night, the EU Parliament and Council reached an agreement on an import ban for products from forced labor – however, whether the traffic light coalition will support the agreement is highly questionable. According to government circles in Berlin, the FDP has recently raised political concerns. The Federal Ministry of Finance has pointed out that they first want to examine the outcome of the negotiations.

    The Free Democrat ministers recently forced the German government to abstain on a whole series of dossiers, the most prominent of which is the Supply Chain Directive CSDDD. However, unlike there or in the case of platform work, the regulation on forced labor will likely find the necessary qualified majority in the Council even without German approval.

    Berlin’s position on the Packaging Ordinance, also negotiated on Monday evening, remains to be seen. Before this, the German government had linked its approval to substantive demands. Some points have now been taken into account – for example, several companies can join forces to achieve certain goals together. However, the ministries involved were still evaluating the text agreed in the trilogue yesterday.

    Your
    Till Hoppe
    Image of Till  Hoppe

    Feature

    Armaments strategy: industry warns of confusion

    “We have no plans to set up an arms depot in Berlaymont,” said EU Foreign Policy Chief Josep Borrell. The flippant remark was probably intended to set expectations somewhat straight on Tuesday. Vice-President Margrethe Vestager and Internal Market Commissioner Thierry Breton were also defensive at the presentation of the European Defense Industry Strategy (EDIS) and the parallel program with financial incentives (EDIP). The aim was not to call into question the prerogatives of the Member States in terms of defense policy but to promote the industrial base in Europe.

    Individual elements were toned down compared to earlier drafts. The option to prioritize orders in the event of a crisis should only be voluntary and in consultation with the defense industry. And a European mechanism modeled on the US Foreign Military Sales procedure (FMS) is now only to be tested as a pilot project.

    Is 1.5 billion from the MFF enough?

    The aim is to have at least 40 percent of arms purchases made jointly by 2030. And Member States are encouraged to make at least half of their arms purchases within the internal market by the end of the decade, as opposed to 80 percent outside last year. For this turnaround, €1.5 billion from the MFF will initially be available for incentives.

    Experts consider the amount to be too small to have an impact given the costs of procurement programs. However, Thierry Breton was confident that additional funds would be found in the next legislative period.

    Concerns about non-transparent interventions by the Commission

    Initial reactions from the arms industry and the capitals were mixed. “It is welcome that the EU Commission is trying to promote joint European procurement and create more predictability for the security and defense industry,” reacted Hans Christoph Atzpodien, Managing Director of the Federal Association of the German Security and Defense Industry (BDSV).

    However, the “intervention logic” is unlikely to go down well in some European capitals, warned Atzpodien. Non-transparent planning and intervention options for the Commission could ultimately lead to “confusion” from an industry perspective. In other areas, the proposal does not go far enough, for example, in minimizing bureaucratic hurdles for the industry.

    Jean Pie, Secretary General of the Aerospace, Security and Defense Industries Association of Europe (ASD) in Brussels, gave a positive initial assessment. The success of EDIS and EDIP now depends on the reaction of the member states. Speed and financial resources are essential for the implementation of the strategy.

    Will Germany follow suit?

    A French diplomat welcomed the strategy but was skeptical about its implementation in Germany. European procurement has been a core element in the EU since the Strategic Compass at the latest. Most recently, Chancellor Olaf Scholz took a different approach with the European Sky Shield Initiative and the procurement of the US Patriot air defense system.

    In Berlin, the BMWK “fundamentally welcomes” the initiative to strengthen the European military capability and defense industry. However, the proposal still needs to be analyzed and evaluated in detail.

    The EU Commission’s initiative is “a step in the right direction,” reacted Daniel Caspary, Chairman of the CDU/CSU group in the EU Parliament. The Russian attack on Ukraine and its consequences showed on a daily basis that Europe had neglected its defense capabilities in recent years.

    The EU needs increased investment in the defense sector and more European cooperation in order to save resources and money and jointly make strategic decisions, said Hannah Neumann, Green/EFA member of the Subcommittee on Security and Defense in the EU Parliament. However, armaments should not be played off against pensions or the climate. The EU needs additional funding for the upcoming investments. Contribution: Wilhelmine Preußen and Gabriel Bub

    • Armor
    • Defense Policy
    • Security policy

    Trilogue agreement on forced labor: no compensation for victims

    Products manufactured using forced labor will no longer be made available on the EU internal market, sold and exported from there. The EU Parliament and Council reached an agreement on the new regulation on Tuesday night. Contrary to the demands of the Parliament and civil society, material compensation for victims of forced labor will not initially be enshrined in law.

    In the future, the EU Commission and competent authorities in the member states are to identify products whose supply chain involves people in forced labor. The following criteria are to be taken into account:

    • Extent and severity of forced labor;
    • the question of whether the forced labor was initiated by the state;
    • the number or volume of products made available on the EU internal market;
    • the company’s proximity to forced labor in the supply chain and its ability to address it.

    The Commission is to collect information on forced labor risks in a database and also take into account reports, for example from the International Labor Organization (ILO).

    Forced labor affects dozens of large companies

    The EU Commission presented the draft law in September 2022. It justifies the initiative with the UN development goal of completely eliminating forced labor by 2030. According to the ILO, around 27.6 million people were forced to work in 2021 – around 12 percent of them children. The majority of them had to work in the private sector; 3.9 million were victims of state-imposed forced labor, presumably in the Chinese region of Xinjiang.

    “Finally, no more slave labor in our products,” commented Anna Cavazzini (Greens), the shadow rapporteur in Parliament, after the agreement. According to a report she commissioned in 2021, more than 80 international brand companies benefit directly or indirectly from labor forced on Uyghurs in China.

    Draft law supplements supply chain directive

    The still unfinalized EU Supply Chain Act would not cover the marketing and supply of such products on the internal market. The Supply Chain Act does list forced labor as a violation of international agreements and provides for sanctions if companies do not comply with their due diligence obligations. However, it focuses on corporate behavior and does not contain any options for banning such products.

    The legal text deals in particular with state-initiated forced labor.

    • This is defined following the ILO Convention on the Abolition of Forced Labor of 1957.
    • Sectors in regions with state-initiated forced labor are identified by the Commission in the database.
    • The decision on a product ban for these regions will be based on less detailed data.

    Parliament had originally called for high-risk sectors to be identified in regions with predominantly state-initiated forced labor. This is because in Xinjiang, for example, it is generally impossible to collect the necessary evidence. The wording that has now been found therefore goes some way towards meeting Parliament’s demands.

    Criticism of missing regulation for compensation

    However, Parliament was unable to push through its demand to enshrine compensation for victims of forced labor in law. According to the agreement, companies should only make voluntary compensation payments. The agreement also contains a review clause for the potential inclusion of a reparation regulation at a later date.

    A number of companies and NGOs had urged for effective compensation in a joint statement in February. “Reparation is an important step in human rights due diligence,” it said, referring to the UN Guiding Principles on Business and Human Rights and the OECD Due Diligence Guidance.

    The Institute for Human Rights criticizes the lack of a reparation provision. This “harbors the risk that companies will disengage from problematic business partners without any improvement for those affected,” explained Deputy Director Michael Windfuhr. Depending on the situation, restitution could include, for example, the return of withheld identity documents and wages, release from debt bondage and the improvement of working and living conditions. Despite the lack of regulation, Windfuhr described the final agreement as a “decisive step towards ensuring that the EU internal market is not a sales market for products manufactured using forced labor.”

    Abstention of the Federal Government likely

    Jörgen Warborn, the shadow rapporteur for the EPP group, particularly praised the measures to support small and medium-sized enterprises. “This includes specific provisions for SMEs, such as a hotline based in their own country, which enables them to receive live support in complying with the regulation,” he explained.

    The competent authorities are to be given three years to implement the regulation, after which it will come into force. However, the Council and Parliament must first adopt the outcome of the trilogue negotiations. On March 20, the lead committees for the internal market and international trade will vote first.

    It is still unclear whether the law will receive the necessary majority in the Council. Germany had already abstained in the vote on the Council’s negotiating mandate; supporters of the regulation now fear that another abstention by the German government under pressure from the FDP could cause the project to falter, similar to the EU Supply Chain Act. As things stand at present, however, a qualified majority would probably be achieved even without Germany. The Federal Ministry of Finance said that the result still had to be assessed.

    • Economy
    • EU
    • Forced Labor
    • ILO
    • Trade policy
    • Uiguren
    • Work

    John Clarke: ‘subsidisers like the US, China and India are content with the status quo’

    John Clarke: Director for International Affairs in the EU Commission’s AGRI Directorate-General until 2023, previously WTO Head of Delegation.

    The WTO Ministerial Conference ended on Friday night without any results on agriculture. The topics discussed included restricting national subsidies. What do you make of this outcome?

    John Clarke: There was not even an agreement or a text committing WTO members to continue negotiations. Several major subsidisers like the US, China and India are content with the status quo and did not want to see progress. So we are back to square one.

    What does this mean for the future?

    There needs to be a rethink at the WTO. Business as usual clearly does not work. Perhaps there needs to be a new focus on what kind of agricultural reforms will benefit global food security or the environment.

    And perhaps there needs to be now an incremental approach beginning with more achievable issues. For example, instead of trying to achieve that countries like Argentina or India no longer impose export restrictions on food, we could at least aim to get the least developed countries exempted.

    Above all, there needs to be a rebuilding of trust between Members, without which no negotiations can succeed.

    How can this be achieved?

    That takes time. Moreover, ambassadors must be empowered again, rather than national ministers “micromanaging” the negotiations or the WTO Directorate-General wanting to control everything. This approach has been successful in the past.

    ‘The EU cannot afford retaliatory measures’

    Should the EU assert its interests in international trade more strongly through mirror clauses, as protesting farmers are demanding?

    The situation is not black and white. One needs to look on a case-by-case basis at the legality of mirror clauses. In principle, you cannot ban a product because you disagree with the way it is produced, where that production method has no effect on the imported product. The WTO for very good reasons prohibits that kind of approach which can slide quickly into protectionism. As the biggest and most successful agricultural exporter in the world, the EU cannot afford retaliatory measures.

    But there are exceptions.

    The EU law on deforestation-free supply chains prohibits the import of beef, soy, palm oil and other products if forests are cut down for their production.  This can be done without violating WTO law because climate protection is a global good. The use of antibiotics to promote growth is also prohibited for imports because of its risk to global health.

    As regards animal welfare, the EU imposes on imported meat equivalent standards as those in the EU on the slaughter and transportation of farm animals. If the EU hopefully bans cage farming soon, the same should apply to the production of imported goods. There is no reason not to do so.

    The decisive factor here is that these practices are cruel to animals in the eyes of the European public. If the EU invokes this “public morals” justification of the WTO when banning imports, it must be able to prove this in the event of WTO proceedings. For example, the petition to “End the cage age”, which one million people have signed is good evidence of the public’s objection to such practices.

    ‘There is no a systematic problem of unfair competition’

    The EU Commission has banned residues of two insecticides in imported goods, citing species protection as a global good. Could this set a trend?

    Perhaps. However, I do not believe that such an approach to pesticide residues or the banning of certain pesticides can be applied systematically, but only on a case-by-case basis. Each time, we would have to ask the question: Does the use of this banned pesticide abroad really affect the environment in Europe, and not just, for example, in Argentina or Ghana?

    In my view, the recent ban on the two bee-harmful insecticides is quite near the margin of what is legal.

    Would you agree that farmers in the EU are at a disadvantage on international markets because of higher production standards?

    I do not believe that there is a systematic problem of unfair competition. Here and there perhaps, but not structurally. Moreover, other countries have the right to have different priorities than we do.

    The protesting farmers in the EU have a different view. Do you understand their concern?

    We should bear in mind that we are a very successful and competitive trading power in the agricultural sector and that imports already have to meet our food safety and health standards as well as certain animal welfare standards.

    That being said, there are cases where producers in other countries have lower standards and therefore have an advantage. But this is not necessarily a negative thing. 

    ‘Trading partners are concerned about their reputation’

    Why not?

    The strength of the EU lies in high production standards. It’s a fantastic tool for global marketing! I also believe that countries that export to the EU are concerned about their reputation and make an effort to maintain high production standards at least for our market.

    How can the EU ensure a level playing field in international agricultural trade?

    We need to work together to agree on global standards. Admittedly: that may take time. But if we do not want trade wars, or Europe going it alone, there is no alternative.

    In addition, in some areas, we can create incentives for other countries to voluntarily adhere to our standards, which are often the de facto international standard anyway due to the size of our market. This is known as the Brussels effect!

    An example?

    The EU’s internal ban on the use of hormones and growth promoters in animal husbandry also applies to many of our trade agreements. Our trading partners accept this and implement our rules because that way, they gain access to the European market.

    • European Commission
    • Farmer protests
    • Trade policy
    • WTO

    News

    MeTooEP survey in the EP: many employees complain of harassment

    Sexual and psychological harassment continues in the European Parliament. A now-presented survey of staff and MEPs conducted between June and August 2023 by the MeTooEP group, shows that half of the respondents have experienced bullying at least once (49.5 percent), eight percent at least one case of physical violence and 15 percent sexual harassment. Almost half of the respondents had witnessed harassment (42.43 percent).

    The questionnaire was sent to all employees of the European Parliament and MEPs. In the first week alone, around ten percent of contacted employees completed it, MeTooEP announced on Tuesday when presenting the data. A total of 1,135 people took part in the survey.

    MeTooEP is a group of European Parliament staff fighting against sexual harassment and all forms of abuse in the Parliament. The alliance has been around since 2018 and advocates for mandatory anti-harassment training, external and independent audits and an independent structure to deal with all forms of harassment in the European Parliament. They also call for sexual harassment to be considered a criminal offense and for effective support for victims.

    ‘Still too many barriers’

    The group explains that the survey revealed various responses to reported sexual harassment. Either no action was taken or the allegations were not taken seriously in the professional environment, in some cases, there was punitive action on the part of the superior.

    Sexual harassment and bullying continue because “measures to protect victims are insufficient,” explained Nathalie de Montigny, a lawyer for European civil law, at the presentation of the survey. “There are still too many barriers” that prevent victims from defending themselves, continues Myrthe Bovendeaard, a former parliamentary assistant to the Green Group in the European Parliament and initiator of a new network to support victims of harassment, the “Harassment Support Network.”

    Bovendeaard points out, for example, the difficulties in gathering evidence or the lack of protection for victims while an investigation is ongoing. The legal channels for holding harassers to account are insufficient, adds Nicholas Aiossa, Director of Transparency International and former assistant in the European Parliament.

    Targeting the Greens

    The publication of the survey came just days after MEP Malte Gallé (Greens) resigned after Stern magazine published allegations of sexual harassment against him by a dozen female assistants and interns. Although the Greens have put the fight against sexual and psychological harassment at the top of their political agenda, they were accused of at best ignoring the problem and at worst covering it up.

    “The anonymous reports are very concerning and affect me and us. In the Greens/EFA Group, we are united by the goal of protecting people in the workplace from harassment and inappropriate behavior,” writes Terry Reintke at the request of Table.Briefings. “Due to recent developments, the Group Executive Committee will evaluate existing processes and strengthen internal procedures. The Group Executive Board will present appropriate measures and incorporate feedback from our employees,” Reintke continues. cst

    • Arbeitnehmerrechte

    EPP assigns Commission homework for AI regulation

    Axel Voss, the EPP shadow rapporteur for the AI Act, has drawn up a ten-point roadmap to make it a little easier for EPP MEPs to approve the AI Act. In it, he sets out how the Commission can address the weak points of the AI Act in its work. The final vote in the plenary session of the European Parliament is scheduled for March 13.

    The AI Act is a complex and complicated piece of legislation that could jeopardize the competitiveness of the European AI ecosystem, writes Voss. The application for developers and users of AI must therefore be simplified. Unnecessary bureaucracy must be avoided, legal uncertainties clarified and innovations supported. Voss therefore calls on the Commission to carry out a thorough gap analysis and to identify and clarify contradictions and overlaps between the AI Act and other horizontal or sector-specific laws.

    Voss: more money for Digital Europe

    Voss is also calling on the Commission to develop a concrete strategy for innovation in AI. The latest communication on AI start-ups and innovation is rather vague and misses the opportunity to link the few innovation aspects of the AI law with concrete practical measures. The Commission should therefore present a comprehensive AI roadmap for the EU. This should also include concrete investment sums and strategies for attracting more venture capital.

    The upcoming political discussions on the Multiannual Financial Framework (MFF) should take into account the new expenditure for the AI Office, regulatory test beds and HPC capacities, writes Voss. “In particular, the budget of the Digital Europe program must be significantly increased.vis

    Back-up power plants: Commission wants a more differentiated risk assessment

    When approving capacity mechanisms for the electricity market, the EU Commission wants a more differentiated risk assessment of the security of supply in the EU. “We have different risks in the member states,” Catharina Sikow-Magny, Director of the Directorate-General for Energy, told Table.Briefings on Tuesday on the sidelines of a solar conference in Brussels. An interruption of Russian gas supplies, for example, had not been taken into account in the central scenario of the European assessment of the adequacy of resources.

    Whether the Commission approves aid for the construction of power plants to secure the power supply during blackouts or crises depends largely on this assessment. In Germany, the Federal Ministry of Economics is planning the construction of new gas-fired power plants and is dependent on approvals from Brussels.

    The latest amendment to the Electricity Market Regulation has already obliged the European regulatory agency ACER to revise the methodology for assessing the security of supply. According to Sikow-Magny, the Directorates-General for Energy and Competition are also working on adapting their internal processes to speed up the approval of capacity mechanisms. ber

    • Electricity market
    • Natural gas
    • Power
    • State aid law
    • Wasserstoff

    Solar industry: Commission urges Member States to hurry

    Given the expiry of state aid options, the Commission believes that the EU states must make decisions on the promotion of the solar industry and other green production sectors quickly. “The deadline is approaching for the temporary framework TCTF, and the Recovery and Resilience Facility will also expire soon,” said Maive Rute, Deputy Director-General of the Directorate-General for the Internal Market, at a solar congress in Brussels on Tuesday.

    In the Net-Zero Industry Act, the EU member states have committed to massively expanding production capacities for solar technology by 2030. In a letter to the Member States, Commissioners Kadri Simson and Thierry Breton had already urged the national governments to put up their own money and make full use of the possibilities offered by the TCTF for increased subsidies. The aid framework is limited until the end of 2025. The possibility of promoting investments with EU funds from the ARF expires one year later.

    However, the solar industry is bothered by the fact that the TCTF does not allow any funding for running costs. The argument is that banks would find it easier to finance investments as a result of the longer period of security. Behind closed doors, there is also criticism of the fact that the highest funding rates are only possible for projects in disadvantaged regions. “If you have to invest away from industrial centers, this drives up the costs of setting up a closed supply chain enormously,” said a solar manager on the sidelines of the Brussels conference. ber

    • Beihilfen

    Germany and France want to procure ammunition for Ukraine

    Germany and France want to work together to procure ammunition for Ukraine on the world market. This was agreed by Foreign Minister Annalena Baerbock and the French head of department Stéphane Séjourné at a meeting in Paris on Tuesday, according to delegation circles. The talks focused on how Germany and France could support Ukraine “with very concrete measures”, “for example, through the worldwide procurement of ammunition”, it was reported.

    Ukraine is currently also complaining about the lack of ammunition, which is why the Russian armed forces have repeatedly made territorial gains, particularly on the eastern front. In their “good and trusting conversation,” Baerbock and Séjourné also discussed how Germany and France could contribute to the European Union’s peace fund for Ukraine (European Peace Facility), according to delegation circles. They also discussed how both countries could “counteract attempts to destabilize Moldova.”

    On Tuesday morning, Baerbock countered the impression that relations between Germany and France were under serious strain. “Deep friendship and solidarity are not expressed by always agreeing with each other,” said Baerbock during a visit to Sarajevo. rtr

    • Verteidigungspolitik

    WTO agrees with EU: palm oil diesel is not renewable due to deforestation

    The EU may exclude biodiesel from Malaysia as a renewable biofuel. The European Union won a corresponding victory at the World Trade Organization (WTO) on Tuesday when an adjudicating panel rejected a Malaysian complaint against an EU ruling.

    In the first WTO ruling on deforestation, a three-member panel voted two to one to reject Malaysia’s substantive claims. However, they agreed with Malaysia’s complaint about the way the measures were prepared, published and administered. Indonesia, which had also complained, subsequently dropped its complaint and requested the suspension of the panel’s work.

    The background to this is that, in the future, a ten percent share of fuels across the EU is to come from renewable energy sources, including plant-based biofuels. The EU excludes crops grown on deforested land or having a high risk of displacing food crops grown on deforested land. The EU has therefore stipulated that palm oil-based biofuel should no longer count as a renewable energy source by 2030. Malaysia and Indonesia, the world’s two largest palm oil producers, then filed a complaint against the European Union with the WTO. rtr/lei

    • Umweltschutz

    Opinion

    Stefanie Babst: NATO must become ‘Trump proof’

    Stefanie Babst
    Stephanie Babst worked for 22 years in various management positions in NATO.

    With every primary election that Donald Trump wins, the dark cloud over NATO becomes more threatening. Will the Europeans be able to rely on their strongest ally in the future? What political tactics could they use to best prepare for Trump’s possible return to the White House?

    Opinions differ: while some – including the government in Berlin – hope to impress the unpredictable Trump with increased defense spending, Erdoğan, Orbán and Fico would probably happily rush to meet the right-wing populist in Washington. In Poland, the Baltic states and Eastern and Northern Europe, on the other hand, there is a deep concern: would the already fragile consensus on supporting Ukraine continue to hold with Trump?

    ‘Make America Great Again’ harms NATO

    The Western defense alliance only just survived its first meeting with Donald Trump. On several occasions, he was on the verge of turning his back on what he saw as the “obsolete NATO.” Former President Trump regularly insulted his European partners as free riders and claimed that they owed him money. Trump went it alone with his grandly announced “deals” with North Korea and Russia as well as his “peace initiative” in the Middle East.

    He also left the European NATO allies uninvolved in the withdrawal of Western troops from Afghanistan negotiated with the Taliban. The result was a strategic disaster for the West. No, Trump’s credo “Make America Great Again” has not gone down well with NATO.

    Can Mark Rutte save NATO?

    With the former Dutch head of government Mark Rutte, who is likely to be chosen as the new NATO Secretary General, some Europeans are now hoping to somehow catch Trump. According to Rutte, all they have to do is patiently explain to him that the European allies have spent a lot more money on their defense in recent years and are prepared to take on more responsibility for their own security in the future.

    It is doubtful whether the Dutchman, who is also known as the “Trump whisperer,” will be able to get this point across convincingly. After Rutte took over the reins of government in The Hague in 2010, Dutch defense spending continued to plummet for years (in 2015, it stood at 1.13 percent). In the last two years, it has also remained well below two percent.

    Trump’s opportunities to harm NATO

    With a charm offensive, the Europeans will hardly be able to stop Trump from putting NATO under pressure and possibly even causing lasting damage. Why? Firstly, Trump is and remains a man of conviction – a foreign policy isolationist who is fundamentally hostile to multilateral organizations. He believes in “dealmaking among the big players” and not in complicated “consensus-building at 32.”

    Secondly, Trump and his supporters have been preparing intensively for a return to the White House, including in terms of defense policy. His MAGA circle has been propagating for some time that Trump would prefer to “put NATO to sleep.” In the future, the Europeans should defend their continent conventionally themselves. Only the nuclear umbrella would be maintained by the USA in Europe.

    Thirdly, Trump would have several opportunities to cause concrete damage to NATO. These range from reducing US troop levels in Europe, a US “no show” at important NATO meetings, cutting funding for NATO’s military and civilian budget, to deliberately sowing public doubt about the USA’s loyalty to the alliance. Are the allies prepared for such scenarios? Hardly, because there is no official discussion of this at NATO headquarters.

    The strategic problem is how to deal with Russia

    NATO will certainly not flounder over future financial burden-sharing. The rift that is deepening between the allies concerns fundamental strategic issues: the fate of Ukraine and how to deal with Russia. Trump’s announcement that he wants to quickly make a “deal” with the mafia regime in Moscow after winning the election not only makes the Ukrainians’ blood run cold but also the British, Balts, Poles, Scandinavians and East Central Europeans: in other words, all those who do not want to avoid confrontation with Russia.

    For this group of countries (to which I do not count Germany), making the alliance “Trump proof” means keeping their ranks tightly closed against Moscow and making concrete preparations for all eventualities – even without American help if necessary. They already have their weatherproof storm jackets at the ready.

    Dr. Stefanie Babst is the former Deputy Secretary General of NATO, strategic advisor and publicist.

    • Trump 2024

    Europe.table editorial team

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