Table.Briefing: Europe

Criticism of RED + Data transfer with China + REMIT

Dear reader,

Perhaps this has happened to you as well. You wanted to discuss a complex matter and found yourself stumbling over your words. At times like these, organizing your thoughts with the help of a drawing can be beneficial.

J. Scott Marcus and Kamil Sekut from the Brussels-based think tank Bruegel, along with Kai Zenner, office manager of EPP MEP Axel Voss, took a similar approach. They created a graphic overview of digital legislation over the past years. The masterpiece is called “A dataset on EU legislation for the digital world“. They deserve great praise for this diligent work.

The chart not only illustrates that digitization and its regulation extend into all aspects of our lives and work. It also reveals that keeping track of this complex landscape is challenging, even for lawmakers.

The authors note various overlaps and contradictions both in the legislative process and in implementation. In short, there is a lack of coherence. This means increased effort and costs for businesses, authorities and consumers in Europe.

Hence, the authors’ directive to the next Commission is clear: Focus on analyzing and improving the legal system. Only by doing so can you ensure that you achieve your policy goals. They are likely echoing the sentiments of the tech industry.

Your
Corinna Visser
Image of Corinna  Visser

Feature

Massive criticism of EU regulation on synthetic fuels

Representatives from the industry, politics and plant construction heavily criticize the EU regulation on synthetic fuels. At the event “Ramp-up of Green Fuels for Air and Maritime Transport” at the Representation of the State of Baden-Württemberg in Brussels, Thorsten Herdan, Managing Director of High Innovative Fuel (HIF) EMEA, stated, “We need to change the Delegated Acts of the Renewable Energy Directive (RED) as quickly as possible.” Acts 27 and 28 act as trade barriers, effectively preventing the importation of synthetic fuels into the EU.

The EU’s Fit-for-55 legislation to meet climate goals relies on electricity-based synthetic fuels to drive decarbonization. The Refuel-EU aviation initiative already envisions quotas for aviation fuel from 2025. By 2025, two percent of aviation fuel should be Sustainable Aviation Fuel (SAF), sourced from renewable sources, including biogenic origins. This value is expected to increase to 70 percent by 2050. The FuelEU Maritime Regulation aims to gradually reduce CO2 emissions from 2025. If unsuccessful, mandatory quotas for synthetic fuels will also come into effect.

‘The majority of predicted facilities won’t materialize’

Winfried Hermann, Minister of Transport for Baden-Württemberg (Green Party), who hosted the event, said, “In principle, I am in favor of as strict regulations as possible for climate action. But in the phase of urgently needed scaling, the rules for calculating greenhouse gas reductions must not be too strict.” The two acts issued by the Commission in spring are too rigorous. They lead to “plants for the production of synthetic fuels in Baden-Württemberg, Germany, and large parts of the EU being uneconomical.”

Hermann warns: “The majority of the predicted facilities won’t materialize.” Baden-Württemberg is the only federal state with a roadmap for the industrial scale-up of synthetic fuels under the Automotive Industry Strategy Dialogue.

HIF plans to build industrial large-scale facilities worldwide for synthetic fuel production using green hydrogen. The potential for production in sufficient quantities to meet the EU’s climate goals exists in locations with strong wind and high sunlight outside the EU. However, EU regulations do not permit importation. Each project requires investments of over one billion euros, but there is no bank or commercial project financier willing to grant a billion-dollar loan based on the Delegated Acts with investment and depreciation periods of up to 20 years.

EU aims to establish Direct Air Capture as standard

Hermann shares this assessment. The EU regulation allows the use of CO2 from point sources of industrial production in Europe until at least 2040. For electricity-based fuels manufactured, for example, in Chile, the Commission imposes even higher hurdles: “The CO2 must be of biogenic origin or directly captured from the air, a method that will only be economical in a few years.”

Criticism is also directed at the EU’s intention to only allow imports from third countries that have an “effective system of CO2 pricing”. The German Engineering Federation (VDMA) has compiled a list of 54 countries rich in renewable energy, making them suitable for synthetic fuel production, from Algeria to Chile to Venezuela. Only eleven of these countries have an emissions trading system or CO2 pricing and thus do not meet EU conditions. Even 35 US states have not established an “efficient system of CO2 pricing”.

What is ‘effective CO2 pricing’?

“Today, investments for the European market won’t be initiated outside the EU since all investors are waiting for legal certainty,” said Peter Müller-Baum from the VDMA platform for synthetic fuels, Power-to-X for Application. With its “denial attitude,” the EU ensures that “green molecules will not be delivered to Europe for the foreseeable future”.

Bernd Kuepker, the Commission official who has been responsible for processing the Delegated Acts for the Directorate-General for Energy, reiterated the EU’s climate goals. Synthetic fuels are needed to gradually decarbonize shipping and aviation. While he understands the industry’s, the plant builders’, and the minister’s perspectives, he holds little hope for a quick change: “We believe we have made the right considerations.” The Commission does not want to jeopardize the goal of climate neutrality by 2050. Therefore, there must be an effective CO2 price for using industrial carbon for the importation of synthetic fuels from non-EU countries.

A review of the acts is scheduled no earlier than 2028. However, Kuepker hinted, “The Commission will actively support the certification system for synthetic fuels.” In addition, the accompanying text to the Delegated Acts will be supplemented with Questions and Answers (Q&A) on practical implementation. The Commission could clarify what constitutes an “effective system for CO2 pricing”. Further guidance on the sources of CO2 could also be provided.

What is written in the Q&A is not legally binding

Any clarifications announced by the Commission by the end of November are unlikely to alleviate the concerns of the industry and politics. The existing accompanying text explicitly states that it is legally neither binding nor enforceable. The definitive interpretation of EU law falls solely within the jurisdiction of the ECJ. “The views expressed in this document do not prejudge the position that the Commission could take before the Court of Justice.”

Dorothea Nold from HIF suggested establishing a format for discussions between the Commission and project developers at the working level. Companies should have the opportunity to explain to the Commission the difficulties in certifying projects outside the EU. The aim is to create an understanding on the Commission’s side for the regulatory challenges of billion-dollar investments. Commission official Kuepker agreed to discuss this proposal with officials from the Directorates-General for Energy and Climate.

EU companies hope for relaxation and clarity on data transfer

The European Union Chamber of Commerce in China (EUCCC) is hopeful for prompt clarity on rules for cross-border data transfer (CBDT) for its member companies. The recently presented draft for easing the strict laws gives cause for optimism, the chamber stated in a flash survey released on Wednesday. However, much is still unclear – especially whether the proposed simplifications will indeed materialize.

According to the survey, 55 percent of companies transfer data abroad, 31 percent do not, while 14 percent -interestingly – do not know precisely. Of those sending data abroad, 96 percent send them internally – to their headquarters or other regional offices. According to EUCCC, these transfers pose a low data security risk. Each 24 percent of respondents transfer data to suppliers or other business partners abroad.

Separation of IT systems from the rest of the world

The effects of laws enacted over the past years are already noticeable, according to the survey. 59 percent of respondents complain about increased compliance costs, 41 percent about pressure to localize IT systems or the entire operation of the China branch, thereby separating it from the rest of the world. However, 31 percent also state that the rules have improved the company’s data security management.

The laws in question are three, some of whose contents are still vaguely formulated:

  • According to the Cybersecurity Law (CSL) of 2017, companies must store their relevant data in China and may only export it under special conditions.
  • The Data Security Law (DSL) requires the formulation of a catalog of “important data”. However, it remains unclear what this term means.
  • The Personal Information Protection Law (PIPL) of 2021 obliges companies with a certain amount of data exports to undergo various security assessments and certification mechanisms. Only then do they get approval for data export abroad.

Draft by cyber authority promises easing

At the end of September, the Cybersecurity Administration of China (CAC) raised hopes with a draft for easing and a lenient interpretation of general provisions for CBDT for foreign companies. Among other things, a list of exceptions from relevant obligations was discussed.

Moreover, the changes should bring more clarity about how data processors can check which data the authorities classify as “important”. However, only six percent of companies send what they themselves consider “important data” abroad, 81 percent would like to understand the term better.

The laws are frighteningly unclear

According to consultants from Dezan Shira, the PIPL currently refers to “data that can endanger national security, economic operations, social stability or public health and safety once manipulated, destroyed, leaked or illegally obtained or used”. This can be almost anything with a strict interpretation. 59 percent of surveyed companies also want to know more precisely what the PIPL means by “personal information”.

Among the surveyed companies, 78 percent send employee data abroad, as well as 67 percent personal data of suppliers and customers. The EU Chamber concludes that these transfers are necessary for personnel purposes or to fulfill contracts, thus requiring an exemption for such transfers. The hope now is that the planned easing will bring precisely these exemptions.

Abolition of the personal data rule under discussion

The EU Chamber of Commerce aims to ensure that the relaxations are implemented as announced. “It is positive that China’s relevant authorities signal the intention to optimize the country’s data regulations,” said Chamber Vice President Stefan Bernhart. “European companies hope for more clarity on the associated terms and that their legitimate business needs will be considered both in sectoral regulations and compliance deadlines.”

According to the paper, security checks for data exports could now be relaxed

  • as part of trade transactions,
  • in academic collaboration,
  • in cross-border production,
  • and in marketing.

This applies, at least, when these do not include personal or “important” data. Additionally, the CAC may also consider completely abolishing security checks for personal data in certain situations, such as cross-border purchases, hotel reservations, hiring employees, or processing visa applications.

All of this would represent a significant improvement over the current legal situation. The EU Chamber is calling for the prompt adoption of the draft.

  • China
  • Data
  • Digitization

EU Monitoring

Nov. 20, 2023
Ministerial meeting between the African Union and the European Union
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European Economic Area Council
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Nov. 21, 2023; 9 a.m.-10 p.m.
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Nov. 22, 2023; 9 a.m.-10 p.m.
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News

Electricity market: results in REMIT trilogue

To more effectively monitor energy wholesale markets, the European regulatory agency ACER (Agency for the Cooperation of Energy Regulators) is granted additional powers. Yesterday, the Council and Parliament reached a provisional position on the REMIT (Regulation on Wholesale Energy Market Integrity and Transparency) as part of the electricity market reform. For the first time, ACER will have enforcement powers in specific areas, stated rapporteur Maria da Graça Carvalho (EPP) after the final trilogue session.

ACER gains the right to investigate cases of market abuse affecting at least two member states. The agency will have information rights and can conduct on-site inspections, as announced by the Council. In case of insufficient cooperation, ACER can impose fines.

Learning from the Gazprom case

However, the authority to impose fines for violations of the directive’s substantive obligations remains with the member states. National regulatory authorities can still prevent ACER’s actions if they are already conducting their investigations.

Another obligation concerns energy traders and other market participants from third countries. To prevent them from using intermediaries to hinder the enforcement of EU law, they must now register an authorized representative in an EU state – a lesson learned from the Gazprom case. ber

EU Commission approves glyphosate for another ten years

The Brussels authority responded promptly on Thursday. After no qualified majority was reached among EU member states for a renewed approval of the controversial herbicide in the appeal committee, the EU Commission announced its decision to approve the active ingredient glyphosate for another ten years. In Germany, plant protection products containing the active ingredient glyphosate must now be reapproved following the Brussels ruling.

“It’s astonishing that the EU Commission wants to push through its plan for a ten-year extension of glyphosate despite a clear majority of the EU population being against it,” said German Agriculture Minister Cem Özdemir (Greens). The EU Commission cannot rule out that glyphosate harms biodiversity, according to the minister. He now wants to examine exactly what “national options we have to implement the coalition agreement as much as possible.

In line with Brussels’ rulings, his department must amend the Plant Protection Application Ordinance to allow glyphosate to continue to be used in agriculture. Currently, the regulation provides for a glyphosate ban from 2024.

Legally non-binding guidelines

The renewed approval of the controversial active ingredient is subject to the following restrictions by the Brussels authority:

  • Maximum values for five toxicologically relevant impurities in glyphosate after production are proposed.
  • Member states must focus on the undesirable effects of the additives in the plant protection product.
  • They must clarify the potential consumer exposure to glyphosate residues that could also be found in subsequent crops.
  • Attention should also be given to the protection of groundwater and small herbivores.
  • Protection of land and aquatic plants that could come into contact with glyphosate during application through spray drift should be ensured.
  • Indirect effects on biodiversity through interactions in the food chain should be considered and, if necessary, avoided through local regulations.
  • The so-called desiccation – treatment immediately before harvest for faster ripening, already allowed in Germany only in exceptional cases – should be completely prohibited. In addition, a buffer strip of at least five to ten meters wide, not sprayed with glyphosate, should be left at the field edge.

These guidelines from the Brussels authority are, however, legally non-binding, except for the prohibition of desiccation, which already applies in Germany. has

  • Climate & Environment

Climate financing: 100 billion target possibly achieved

The industrialized nations may have already fulfilled their promise to help poorer countries cope with climate change by providing $100 billion annually, as of 2022, according to the OECD. The assessment is likely to boost morale just ahead of COP28. “Based on preliminary and as yet unverified data, the goal looks likely to have already been met as of 2022,” said Mathias Cormann, Secretary-General of the Organisation for Economic Co-operation and Development.

Germany and Canada, jointly leading an international initiative to achieve the $100 billion goal, referred to the statement as a “welcome update” while also pointing out that the global need for climate financing is significant and growing rapidly. “We need action and cooperation from all actors – domestic, international, public and private – to shift the trillions of dollars required to transition to a net-zero and climate-resilient world,” they stated in an open letter.

Actual need is much higher

According to the OECD, the actual need for climate investments in poor countries could amount to $1 trillion per year by 2025. The industrialized nations had pledged to provide $100 billion annually between 2020 and 2025. However, they missed this goal in the first two years, leading to significant criticism of richer countries and a loss of trust in the global South.

The discussion on post-2025 follow-up financing will continue in Dubai at COP28. rtr/luk

Short-term rentals: Trilogue agreement on new rules for Airbnb and Expedia

The Council and the Parliament have reached an agreement in the trilogue on new rules for short-term rentals (Short Term Rentals). The upcoming EU regulation provides clear rules for hosts and platforms like Airbnb, Booking, or Expedia regarding the short-term rental of accommodations in the EU, specifically focusing on the collection and sharing of data. The goal of the regulation is to increase transparency in this sector and promote sustainable and intelligent tourism.

Short-term rentals are becoming increasingly popular, already constituting about a quarter of all tourist accommodations in the EU, with a rising trend across Europe. While hosts and travelers appreciate this, it poses significant challenges for many municipalities. Cities and communities want to prevent rents in sought-after locations from becoming unaffordable due to the increasing number of illegal vacation rentals. Additionally, the growing influx of tourists into residential areas has caused dissatisfaction among some residents.

“Short-term rentals are an essential part of the tourist ecosystem but should not come at the expense of local communities,” said EU Internal Market Commissioner Thierry Breton, who presented the proposal a year ago. The regulation will enable local authorities to manage short-term rentals effectively and appropriately. Building on the Digital Services Act (DSA), it ensures that online rental platforms “fulfill their responsibility, exchange data, and contribute to combating illegal offerings.”

Cities can better enforce compliance with the rules

Anna Cavazzini, Green Member of the European Parliament and Chair of the Committee on the Internal Market and Consumer Protection, called the law a “breakthrough for livable cities”. This ensures that housing remains available for the people living in the cities. So far, rental platforms have regularly refused to share data, making it difficult to enforce local regulations. “With today’s trilogue agreement, it is no longer the big tech companies that decide on the rules, but the cities themselves,” Cavazzini said.

The law will allow cities to act more quickly when rules are violated. They can instruct platforms to suspend landlords or remove rule-breaking advertisements for housing from their sites. The data exchange will empower local authorities to control the impact of short-term rentals on their community. At the same time, the law aims to make it easier for smaller providers to comply with the rules.

After the regulation comes into effect, member states have 24 months to establish the mechanisms for data exchange, with support from the Commission. vis

AI Act: Industry calls for new approach to foundation models

The German and French industry associations see the future viability of the European economy at risk. In a letter to the negotiators of the AI Act in the Commission, the EU Parliament and the German government, BDI and MEDEF have opposed the two-tier approach of foundational models and general-purpose AI (GPAI) discussed in the negotiations.

The two-tier regulatory approach is apparently being pushed forward “without sufficient consultation of relevant stakeholders in favor of a quick political deal,” they criticize. They urge the negotiators to “fully utilize the available time frame”.

‘Two-tier approach does not fit the risk-based nature of the AI Act’

Both associations reject the accusation that they are only resisting this type of regulation to protect their emerging national champions. They are referring to the AI companies Mistral in France and Aleph Alpha in Germany, both of which raised triple-digit million amounts from investors this year. The assumption that the two-tier approach only imposes comprehensive compliance obligations on very large model providers is a dangerous misconception. Rather, the strong regulation of certain foundation models (FM) also affects a large portion of users because these models represent a widely used basic technology in the industry.

The two-tier approach does not fit the risk-based nature of the AI Act. And adopting thresholds from existing laws like the DSA can lead to unintended consequences. BDI and MEDEF emphasize “that, unlike search engines and online platforms, foundation models serve as basic technologies without direct consumer interaction“. Criteria such as “high-impact” or “systemic” are unsuitable for determining the risk of foundation models. The associations also find the other criteria questionable or unrealistic.

Self-regulation of foundation models does not gain a majority in Parliament

In an initial reaction from the Greens in the European Parliament, it was stated that the BDI’s argumentation is not compelling. The application-specific regulation of GPAI and FM in the Parliament’s proposal follows the risk-based approach. The other criteria by which the models should be classified are considered appropriate, tested and feasible.

On the other hand, FDP MEP Svenja Hahn said she shares the BDI’s goals of not bureaucratically burdening European companies. She finds both the two-tier approach and the proposal, which is also circulating, to completely remove foundation models from the AI Act and transfer them to a “regulated self-regulation” to be “content-wise viable”. However, since a very large majority of Parliament supports the regulation of foundation models in the AI Act, she currently considers Parliament’s approval of complete self-regulation to be unlikely. vis

Ylva Johansson faces backlash from data protection advocates

The targeted microtargeting by the Directorate-General for Home Affairs on platform X is now having consequences: Austrian data protection activists from None of Your Business (NOYB) have filed a complaint with the European Data Protection Supervisor.

The reason for the action by the data protection advocates is the use of microtargeting by the DG Home on the X platform (formerly Twitter) in late summer. The DG Home had run targeted advertising in several member states. Critics believe that this was an undue attempt to influence political decision-making processes related to the CSA regulation. The regulation aims to strengthen the fight against online sexual abuse, but many members of the European Parliament accuse Ylva Johansson of wanting to open the door to mass surveillance through it.

According to NOYB, the complainant is a affected Dutch user. The European Data Protection Supervisor confirmed the receipt of the complaint. In October, the supervisory authority had already sent a questionnaire to the DG Home. Currently, they are evaluating the response, according to a spokesperson.

The DG Home initially considered the advertising campaign unproblematic. However, during an appearance in the LIBE Committee of the European Parliament, Johansson announced a new internal investigation. A spokesperson for the Commission stated that this investigation is ongoing, and they are conducting a careful review of the advertising campaign.

Commission stops microtargeting

Due to the alarming increase in disinformation and hate speech on social media platforms in recent weeks, they have “instructed the Commission services to refrain from advertisements with such content for now“, said a spokesperson. The instructions are regularly revised on a case-by-case basis. They are intended to ensure that social media managers of the authority and external service providers adhere to internal rules on all platforms.

In the advertising campaign on X in September, the Commission ran ads in several member states where the position on the CSA regulation in the Council was particularly controversial. Political terms were used as exclusion criteria for the target audience. The existence of this advertising campaign and the criteria used were only revealed by third parties based on the transparency data of the platform.

Microtargeting based on political beliefs has been explicitly banned on major platforms since August under the Digital Services Act. The Commission’s proposal for the regulation of political advertising explicitly warns against the “power and potential for abuse through targeting, including through microtargeting”. fst

  • Data protection
  • Digital policy

DMA: TikTok objects to being classified as gatekeeper

TikTok does not want to be classified as a gatekeeper. On Thursday, the short-video platform resisted against enhanced EU regulation. Just before the deadline, TikTok joined the objection raised by Facebook’s parent company, Meta.

Platforms are considered gatekeepers when they reach a certain size, subjecting them to stricter requirements under the Digital Markets Act (DMA). In September, the Commission identified 22 key platforms operated by six of the world’s largest technology companies that are now subject to the new DMA rules.

However, TikTok’s popularity is on the rise. A study by the Pew Research Center found that the share of US adults who regularly get their news from TikTok is growing. In three years, this share has more than quadrupled, from three percent to the current 14 percent. This means TikTok has surpassed X (formerly Twitter), which is used as a news source by 12 percent of Americans.

The younger the users, the more intensively they use TikTok: Among those under 30, the share is one-third. cyb/rtr

Daimler CEO: ‘Tariffs will never help our companies’

At an event organized by the German CDU/CSU parliamentary group on Thursday, the different perspectives of companies and politicians on dealing with China came to light. Company representatives such as Daimler boss Ola Kallenius defended their economic involvement in the People’s Republic and their advocacy of continued close cooperation. They emphasized that they were not politicians, but ran companies for whose success they were responsible.

On the other hand, EU Commission President Ursula von der Leyen justified Brussels’ increasingly critical view of Beijing and the Commission’s response to distortions in competition between Chinese and European car manufacturers with potential countermeasures.

The CEO of Daimler firmly rejected this. “Tariffs will never help our companies,” says Källenius, “only creativity and free thinking.” He emphasized that nothing is more important than open markets. That is why he is strictly against higher tariffs imposed by the EU, even if China does, in fact, unfairly support its own companies with tariffs. “That only harms us all.” In such a case, he argued that the Chinese should be persuaded to impose lower tariffs instead of triggering an upward spiral.

Era of ‘security and order’

The CEO also refuted EU Commission President Ursula von der Leyen’s assessment that China was pursuing imperial ambitions and should be treated with caution. “I don’t believe that their primary goal is to come to Germany and introduce their system here,” said Källenius.

The EU Commission President had previously painted a differentiated and, at the same time, much more critical picture of the situation. “The clear goal of the Chinese Communist Party is a systemic change in the international order with China at the center.” Beijing has now ended the phase of “reform and opening up” and is in an era of “security and order”. The country is pursuing the strategy of “reducing its dependency on the world while increasing the world’s dependency on itself”.

This explained the strategically acquired dominance in rare earths, certain technologies and near-monopolies in critical raw materials“Geopolitics and geoeconomics cannot be seen as separate anymore,” said von der Leyen. In her view, this means that in the event of economic coercion by Beijing, Europe should “not only rely on WTO proceedings, but also be prepared to take robust, coordinated countermeasures.”

You can read Stefan Braun‘s detailed Feature in today’s China.table.

Sánchez reconfirmed as prime minister in Spain

Pedro Sánchez has been reconfirmed as prime minister in Spain for another four years. The lower house in Madrid voted on Thursday, nearly four months after the parliamentary election, with 179 votes in favor and 171 against, supporting the continuation of the left-wing government. The 51-year-old leader of the Spanish Socialist Workers’ Party (PSOE) has been governing the fourth-largest economy in the EU with minority governments since mid-2018.

In the snap parliamentary election on July 23, the PSOE, while only securing the second position behind the conservative People’s Party (PP) led by opposition leader Alberto Núñez Feijóo, managed to maintain power. However, Feijóo failed to organize a majority in the lower house.

On the other hand, Socialist Sánchez secured the necessary votes by making controversial concessions to separatist parties. However, the majority is very slim, with only three votes. The PSOE leader had agreed to amnesty with Junts and Esquerra Republicana por Catalunya (ERC), which would erase all crimes committed by those involved in the Catalan separatist process since 2014. This move was criticized by many legal experts as a violation of judicial independence.

EU Parliament discusses agreement

The EU Commission is currently examining the draft amnesty law for possible violations of the rule of law standards. The leaders of the political groups in the European Parliament also decided to schedule a plenary debate next week in Strasbourg on the “threat to the rule of law as a result of the government agreement in Spain”.

Puigdemont, the leader of Junts, has also assigned an international team of inspectors to the incumbent EU Council President Sánchez to monitor compliance with the amnesty agreements. According to the online medium “Ok Diario,” the first meeting between representatives of Junts and PSOE and the four-member international assessment team will take place next Monday in Geneva.

Sánchez’s speech during the inauguration debate on Wednesday lasted just over an hour and a half. It was only in the 85th minute that he mentioned Catalonia and the amnesty pacts. He justified the deal with the separatists by the need to “build a wall against the far right”.

Feijóo had sought an alliance with the right-wing nationalist party Vox. The opposition leader accused Sánchez on Thursday that his inauguration was based “on a fraud”. Feijóo claimed that Sánchez had repeatedly pledged during the campaign that his government would never make such a concession to the separatists. iccc/dpa

Executive Moves

Thomas Nowak, Secretary General of the Heat Pump Association EHPA, will be leaving his post in the coming months. The association announced this yesterday. Nowak will join Swedish heat pump manufacturer Qvantum as Vice President for Public Affairs and Government Relations in the first half of 2024.

Is something changing in your organization? Let us know at heads@table.media!

Dessert

The pitfalls of the rail connection to Belgium

Recently, the question was raised why a reasonably punctual arrival with rail transport in the EU metropolis Brussels from the direction of Germany is a matter of luck. The knowledgeable reader Dieter F. was kind enough to provide an explanation by email, a few hours after the publication of our briefing, in simple language and extremely humorously. As an “old hobby train enthusiast, former Federal Railways employee and current active and convinced non-user of Deutsche Bahn”, he could help.

Belgium uses a different overhead voltage and different train safety systems. Train safety systems refer to how it is controlled whether the train driver reacts correctly to the signals. From Aachen, after the border, the ICE has to handle the ascent to the High Fens with 3,000 volts direct current (DC) from the Belgian overhead line, instead of 15,000 volts alternating current (AC) from the German overhead line.

Return journey already in Liège

Once on the plateau, the next system change follows: From now on, 25,000-volt alternating current (AC) flows, and there is a train safety system for speeds up to 300 kilometers per hour, which differs from the Belgian system. However, only a few ICE trains have this facility.

The remaining multi-system ICE trains, also used on the route to Amsterdam, have to cope with 1,500 volts direct current, half the Belgian voltage, and the Dutch train safety system, which is similar to the Belgian one. However, they only need the German high-speed train safety system and do not operate under 25,000-volt alternating current.

If one of the Belgium-compatible ICE trains fails and is replaced by an ICE for the Amsterdam route, it has to cope with 3,000 volts and the standard Belgian train safety system when ascending to the High Fens. “There is no way to avoid an hour of travel time extension.” To get back on time, the return journey must already be started in Liège, and the passengers in Brussels will be left in the lurch. However, a remedy is in sight. New trains that cope better with the system change have already been ordered.

Many thanks to our attentive reader Dieter F.! Markus Grabitz

Europe.table editorial team

EUROPE.TABLE EDITORS

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    Dear reader,

    Perhaps this has happened to you as well. You wanted to discuss a complex matter and found yourself stumbling over your words. At times like these, organizing your thoughts with the help of a drawing can be beneficial.

    J. Scott Marcus and Kamil Sekut from the Brussels-based think tank Bruegel, along with Kai Zenner, office manager of EPP MEP Axel Voss, took a similar approach. They created a graphic overview of digital legislation over the past years. The masterpiece is called “A dataset on EU legislation for the digital world“. They deserve great praise for this diligent work.

    The chart not only illustrates that digitization and its regulation extend into all aspects of our lives and work. It also reveals that keeping track of this complex landscape is challenging, even for lawmakers.

    The authors note various overlaps and contradictions both in the legislative process and in implementation. In short, there is a lack of coherence. This means increased effort and costs for businesses, authorities and consumers in Europe.

    Hence, the authors’ directive to the next Commission is clear: Focus on analyzing and improving the legal system. Only by doing so can you ensure that you achieve your policy goals. They are likely echoing the sentiments of the tech industry.

    Your
    Corinna Visser
    Image of Corinna  Visser

    Feature

    Massive criticism of EU regulation on synthetic fuels

    Representatives from the industry, politics and plant construction heavily criticize the EU regulation on synthetic fuels. At the event “Ramp-up of Green Fuels for Air and Maritime Transport” at the Representation of the State of Baden-Württemberg in Brussels, Thorsten Herdan, Managing Director of High Innovative Fuel (HIF) EMEA, stated, “We need to change the Delegated Acts of the Renewable Energy Directive (RED) as quickly as possible.” Acts 27 and 28 act as trade barriers, effectively preventing the importation of synthetic fuels into the EU.

    The EU’s Fit-for-55 legislation to meet climate goals relies on electricity-based synthetic fuels to drive decarbonization. The Refuel-EU aviation initiative already envisions quotas for aviation fuel from 2025. By 2025, two percent of aviation fuel should be Sustainable Aviation Fuel (SAF), sourced from renewable sources, including biogenic origins. This value is expected to increase to 70 percent by 2050. The FuelEU Maritime Regulation aims to gradually reduce CO2 emissions from 2025. If unsuccessful, mandatory quotas for synthetic fuels will also come into effect.

    ‘The majority of predicted facilities won’t materialize’

    Winfried Hermann, Minister of Transport for Baden-Württemberg (Green Party), who hosted the event, said, “In principle, I am in favor of as strict regulations as possible for climate action. But in the phase of urgently needed scaling, the rules for calculating greenhouse gas reductions must not be too strict.” The two acts issued by the Commission in spring are too rigorous. They lead to “plants for the production of synthetic fuels in Baden-Württemberg, Germany, and large parts of the EU being uneconomical.”

    Hermann warns: “The majority of the predicted facilities won’t materialize.” Baden-Württemberg is the only federal state with a roadmap for the industrial scale-up of synthetic fuels under the Automotive Industry Strategy Dialogue.

    HIF plans to build industrial large-scale facilities worldwide for synthetic fuel production using green hydrogen. The potential for production in sufficient quantities to meet the EU’s climate goals exists in locations with strong wind and high sunlight outside the EU. However, EU regulations do not permit importation. Each project requires investments of over one billion euros, but there is no bank or commercial project financier willing to grant a billion-dollar loan based on the Delegated Acts with investment and depreciation periods of up to 20 years.

    EU aims to establish Direct Air Capture as standard

    Hermann shares this assessment. The EU regulation allows the use of CO2 from point sources of industrial production in Europe until at least 2040. For electricity-based fuels manufactured, for example, in Chile, the Commission imposes even higher hurdles: “The CO2 must be of biogenic origin or directly captured from the air, a method that will only be economical in a few years.”

    Criticism is also directed at the EU’s intention to only allow imports from third countries that have an “effective system of CO2 pricing”. The German Engineering Federation (VDMA) has compiled a list of 54 countries rich in renewable energy, making them suitable for synthetic fuel production, from Algeria to Chile to Venezuela. Only eleven of these countries have an emissions trading system or CO2 pricing and thus do not meet EU conditions. Even 35 US states have not established an “efficient system of CO2 pricing”.

    What is ‘effective CO2 pricing’?

    “Today, investments for the European market won’t be initiated outside the EU since all investors are waiting for legal certainty,” said Peter Müller-Baum from the VDMA platform for synthetic fuels, Power-to-X for Application. With its “denial attitude,” the EU ensures that “green molecules will not be delivered to Europe for the foreseeable future”.

    Bernd Kuepker, the Commission official who has been responsible for processing the Delegated Acts for the Directorate-General for Energy, reiterated the EU’s climate goals. Synthetic fuels are needed to gradually decarbonize shipping and aviation. While he understands the industry’s, the plant builders’, and the minister’s perspectives, he holds little hope for a quick change: “We believe we have made the right considerations.” The Commission does not want to jeopardize the goal of climate neutrality by 2050. Therefore, there must be an effective CO2 price for using industrial carbon for the importation of synthetic fuels from non-EU countries.

    A review of the acts is scheduled no earlier than 2028. However, Kuepker hinted, “The Commission will actively support the certification system for synthetic fuels.” In addition, the accompanying text to the Delegated Acts will be supplemented with Questions and Answers (Q&A) on practical implementation. The Commission could clarify what constitutes an “effective system for CO2 pricing”. Further guidance on the sources of CO2 could also be provided.

    What is written in the Q&A is not legally binding

    Any clarifications announced by the Commission by the end of November are unlikely to alleviate the concerns of the industry and politics. The existing accompanying text explicitly states that it is legally neither binding nor enforceable. The definitive interpretation of EU law falls solely within the jurisdiction of the ECJ. “The views expressed in this document do not prejudge the position that the Commission could take before the Court of Justice.”

    Dorothea Nold from HIF suggested establishing a format for discussions between the Commission and project developers at the working level. Companies should have the opportunity to explain to the Commission the difficulties in certifying projects outside the EU. The aim is to create an understanding on the Commission’s side for the regulatory challenges of billion-dollar investments. Commission official Kuepker agreed to discuss this proposal with officials from the Directorates-General for Energy and Climate.

    EU companies hope for relaxation and clarity on data transfer

    The European Union Chamber of Commerce in China (EUCCC) is hopeful for prompt clarity on rules for cross-border data transfer (CBDT) for its member companies. The recently presented draft for easing the strict laws gives cause for optimism, the chamber stated in a flash survey released on Wednesday. However, much is still unclear – especially whether the proposed simplifications will indeed materialize.

    According to the survey, 55 percent of companies transfer data abroad, 31 percent do not, while 14 percent -interestingly – do not know precisely. Of those sending data abroad, 96 percent send them internally – to their headquarters or other regional offices. According to EUCCC, these transfers pose a low data security risk. Each 24 percent of respondents transfer data to suppliers or other business partners abroad.

    Separation of IT systems from the rest of the world

    The effects of laws enacted over the past years are already noticeable, according to the survey. 59 percent of respondents complain about increased compliance costs, 41 percent about pressure to localize IT systems or the entire operation of the China branch, thereby separating it from the rest of the world. However, 31 percent also state that the rules have improved the company’s data security management.

    The laws in question are three, some of whose contents are still vaguely formulated:

    • According to the Cybersecurity Law (CSL) of 2017, companies must store their relevant data in China and may only export it under special conditions.
    • The Data Security Law (DSL) requires the formulation of a catalog of “important data”. However, it remains unclear what this term means.
    • The Personal Information Protection Law (PIPL) of 2021 obliges companies with a certain amount of data exports to undergo various security assessments and certification mechanisms. Only then do they get approval for data export abroad.

    Draft by cyber authority promises easing

    At the end of September, the Cybersecurity Administration of China (CAC) raised hopes with a draft for easing and a lenient interpretation of general provisions for CBDT for foreign companies. Among other things, a list of exceptions from relevant obligations was discussed.

    Moreover, the changes should bring more clarity about how data processors can check which data the authorities classify as “important”. However, only six percent of companies send what they themselves consider “important data” abroad, 81 percent would like to understand the term better.

    The laws are frighteningly unclear

    According to consultants from Dezan Shira, the PIPL currently refers to “data that can endanger national security, economic operations, social stability or public health and safety once manipulated, destroyed, leaked or illegally obtained or used”. This can be almost anything with a strict interpretation. 59 percent of surveyed companies also want to know more precisely what the PIPL means by “personal information”.

    Among the surveyed companies, 78 percent send employee data abroad, as well as 67 percent personal data of suppliers and customers. The EU Chamber concludes that these transfers are necessary for personnel purposes or to fulfill contracts, thus requiring an exemption for such transfers. The hope now is that the planned easing will bring precisely these exemptions.

    Abolition of the personal data rule under discussion

    The EU Chamber of Commerce aims to ensure that the relaxations are implemented as announced. “It is positive that China’s relevant authorities signal the intention to optimize the country’s data regulations,” said Chamber Vice President Stefan Bernhart. “European companies hope for more clarity on the associated terms and that their legitimate business needs will be considered both in sectoral regulations and compliance deadlines.”

    According to the paper, security checks for data exports could now be relaxed

    • as part of trade transactions,
    • in academic collaboration,
    • in cross-border production,
    • and in marketing.

    This applies, at least, when these do not include personal or “important” data. Additionally, the CAC may also consider completely abolishing security checks for personal data in certain situations, such as cross-border purchases, hotel reservations, hiring employees, or processing visa applications.

    All of this would represent a significant improvement over the current legal situation. The EU Chamber is calling for the prompt adoption of the draft.

    • China
    • Data
    • Digitization

    EU Monitoring

    Nov. 20, 2023
    Ministerial meeting between the African Union and the European Union
    Topics: The foreign ministers of the African Union states and the EU states meet for consultations. Infos

    Nov. 20, 2023
    European Economic Area Council
    Topics: Discussion of the overall functioning of the EEA Agreement, Orientation debate on economic security. Infos

    Nov. 20, 2023; 9.20 a.m.-2.40 p.m.
    G20 Compact with Africa 2023
    Topics: Fostering local value chains in Africa: The role of the German Private Sector, Energy supply and beyond: trade and investment opportunities in African emerging markets. Draft Agenda

    Nov. 20, 2023; 10 a.m.
    Council of the EU: Agriculture and Fisheries
    Topics: Information from the Presidency on the regulation on plants obtained by certain new genomic techniques and their food and feed products, Information from the Commission on the implementation of the EU Forest Strategy for 2030, Information from the Presidency on the non-Wood Forest Products. Draft Agenda

    Nov. 20, 2023; 5-10 p.m.
    Plenary Session of the EU Parliament: Repair of goods, Certification of carbon removals, Cross-border judicial cooperation
    Topics: Debate on common rules promoting the repair of goods, Debate on the Union certification framework for carbon removals, Debate on the digitalisation of cross-border judicial cooperation. Draft Agenda

    Nov. 20, 2023; 6-9.30 p.m.
    Meeting of the Commission on the Environment, Public Health and Food Safety
    Topics: Report back on ongoing interinstitutional negotiations, Draft report on Soil Monitoring and Resilience (Soil Monitoring Law), Draft report on amending a regulation on mercury as regards dental amalgam and other mercury-added products subject to manufacturing, import and export restrictions Draft Agenda

    Nov. 21, 2023
    Weekly Commission Meeting
    Topics: European Semester autumn package, Forest monitoring framework. Draft Agenda

    Nov. 21, 2023; 9 a.m.-10 p.m.
    Plenary Session of the EU Parliament: Cybersecurity level in the EU, EU defence capabilities, Strengthening of the CO2 emission performance targets
    Topics: Vote on a high common level of cybersecurity at the institutions, bodies, offices and agencies of the Union, Vote on the strategic Compass and EU space-based defence capabilities, Debate on strengthening the CO2 emission performance targets for new heavy-duty vehicles. Draft Agenda

    Nov. 21, 2023; 9.15 a.m.
    Council of the EU: Foreign Affairs
    Topics: Exchange of views on the Team Europe engagement in complex environments in Africa. Draft Agenda

    Nov. 22, 2023
    Trilogue: Corporate Sustainability Due Diligence Directive (CSDDD)

    Nov. 22, 2023; 9 a.m.-10 p.m.
    Plenary Session of the EU Parliament: Globalisation Adjustment Fund, EU-UK Agreement, Job creation
    Topics: Vote on the mobilisation of the European Globalisation Adjustment Fund, Vote on the implementation of the EU-UK Trade and Cooperation Agreement, Vote on job creation – the just transition and impact investments. Draft Agenda

    Nov. 23-24, 2023
    EU-Canada summit
    Topics: EU-Canada’s shared commitment to democratic values, multilateralism and the international rule-based order, EU-Canada long-term commitment and unwavering support to Ukraine as it defends its sovereignty, Cooperation towards open and resilient economies. Infos

    Nov. 23-24, 2023
    Council of the EU: Education, Youth, Culture and Sport
    Topics: Adoption of a council Recommendation on the key enabling factors for successful
    digital education and training, Approval of conclusions on promoting youth mainstreaming in policy
    decision-making processes in the European Union, Information from the Belgian delegation on the work programme of the incoming Presidency.
    Draft Agenda

    Nov. 23-24, 2023
    Informal meeting of equality ministers
    Topics: Data collection and specialised services for victims of violence against women, Emerging violence. Draft Agenda

    Nov. 23, 2023; 9 a.m.-4 p.m.
    Plenary Session of the EU Parliament:
    Topics: Debate on proposals of the European Parliament for the amendment of the Treaties, Vote on reducing inequalities and promoting social inclusion in times of crisis for children and their families, Debate on major interpellations. Draft Agenda

    News

    Electricity market: results in REMIT trilogue

    To more effectively monitor energy wholesale markets, the European regulatory agency ACER (Agency for the Cooperation of Energy Regulators) is granted additional powers. Yesterday, the Council and Parliament reached a provisional position on the REMIT (Regulation on Wholesale Energy Market Integrity and Transparency) as part of the electricity market reform. For the first time, ACER will have enforcement powers in specific areas, stated rapporteur Maria da Graça Carvalho (EPP) after the final trilogue session.

    ACER gains the right to investigate cases of market abuse affecting at least two member states. The agency will have information rights and can conduct on-site inspections, as announced by the Council. In case of insufficient cooperation, ACER can impose fines.

    Learning from the Gazprom case

    However, the authority to impose fines for violations of the directive’s substantive obligations remains with the member states. National regulatory authorities can still prevent ACER’s actions if they are already conducting their investigations.

    Another obligation concerns energy traders and other market participants from third countries. To prevent them from using intermediaries to hinder the enforcement of EU law, they must now register an authorized representative in an EU state – a lesson learned from the Gazprom case. ber

    EU Commission approves glyphosate for another ten years

    The Brussels authority responded promptly on Thursday. After no qualified majority was reached among EU member states for a renewed approval of the controversial herbicide in the appeal committee, the EU Commission announced its decision to approve the active ingredient glyphosate for another ten years. In Germany, plant protection products containing the active ingredient glyphosate must now be reapproved following the Brussels ruling.

    “It’s astonishing that the EU Commission wants to push through its plan for a ten-year extension of glyphosate despite a clear majority of the EU population being against it,” said German Agriculture Minister Cem Özdemir (Greens). The EU Commission cannot rule out that glyphosate harms biodiversity, according to the minister. He now wants to examine exactly what “national options we have to implement the coalition agreement as much as possible.

    In line with Brussels’ rulings, his department must amend the Plant Protection Application Ordinance to allow glyphosate to continue to be used in agriculture. Currently, the regulation provides for a glyphosate ban from 2024.

    Legally non-binding guidelines

    The renewed approval of the controversial active ingredient is subject to the following restrictions by the Brussels authority:

    • Maximum values for five toxicologically relevant impurities in glyphosate after production are proposed.
    • Member states must focus on the undesirable effects of the additives in the plant protection product.
    • They must clarify the potential consumer exposure to glyphosate residues that could also be found in subsequent crops.
    • Attention should also be given to the protection of groundwater and small herbivores.
    • Protection of land and aquatic plants that could come into contact with glyphosate during application through spray drift should be ensured.
    • Indirect effects on biodiversity through interactions in the food chain should be considered and, if necessary, avoided through local regulations.
    • The so-called desiccation – treatment immediately before harvest for faster ripening, already allowed in Germany only in exceptional cases – should be completely prohibited. In addition, a buffer strip of at least five to ten meters wide, not sprayed with glyphosate, should be left at the field edge.

    These guidelines from the Brussels authority are, however, legally non-binding, except for the prohibition of desiccation, which already applies in Germany. has

    • Climate & Environment

    Climate financing: 100 billion target possibly achieved

    The industrialized nations may have already fulfilled their promise to help poorer countries cope with climate change by providing $100 billion annually, as of 2022, according to the OECD. The assessment is likely to boost morale just ahead of COP28. “Based on preliminary and as yet unverified data, the goal looks likely to have already been met as of 2022,” said Mathias Cormann, Secretary-General of the Organisation for Economic Co-operation and Development.

    Germany and Canada, jointly leading an international initiative to achieve the $100 billion goal, referred to the statement as a “welcome update” while also pointing out that the global need for climate financing is significant and growing rapidly. “We need action and cooperation from all actors – domestic, international, public and private – to shift the trillions of dollars required to transition to a net-zero and climate-resilient world,” they stated in an open letter.

    Actual need is much higher

    According to the OECD, the actual need for climate investments in poor countries could amount to $1 trillion per year by 2025. The industrialized nations had pledged to provide $100 billion annually between 2020 and 2025. However, they missed this goal in the first two years, leading to significant criticism of richer countries and a loss of trust in the global South.

    The discussion on post-2025 follow-up financing will continue in Dubai at COP28. rtr/luk

    Short-term rentals: Trilogue agreement on new rules for Airbnb and Expedia

    The Council and the Parliament have reached an agreement in the trilogue on new rules for short-term rentals (Short Term Rentals). The upcoming EU regulation provides clear rules for hosts and platforms like Airbnb, Booking, or Expedia regarding the short-term rental of accommodations in the EU, specifically focusing on the collection and sharing of data. The goal of the regulation is to increase transparency in this sector and promote sustainable and intelligent tourism.

    Short-term rentals are becoming increasingly popular, already constituting about a quarter of all tourist accommodations in the EU, with a rising trend across Europe. While hosts and travelers appreciate this, it poses significant challenges for many municipalities. Cities and communities want to prevent rents in sought-after locations from becoming unaffordable due to the increasing number of illegal vacation rentals. Additionally, the growing influx of tourists into residential areas has caused dissatisfaction among some residents.

    “Short-term rentals are an essential part of the tourist ecosystem but should not come at the expense of local communities,” said EU Internal Market Commissioner Thierry Breton, who presented the proposal a year ago. The regulation will enable local authorities to manage short-term rentals effectively and appropriately. Building on the Digital Services Act (DSA), it ensures that online rental platforms “fulfill their responsibility, exchange data, and contribute to combating illegal offerings.”

    Cities can better enforce compliance with the rules

    Anna Cavazzini, Green Member of the European Parliament and Chair of the Committee on the Internal Market and Consumer Protection, called the law a “breakthrough for livable cities”. This ensures that housing remains available for the people living in the cities. So far, rental platforms have regularly refused to share data, making it difficult to enforce local regulations. “With today’s trilogue agreement, it is no longer the big tech companies that decide on the rules, but the cities themselves,” Cavazzini said.

    The law will allow cities to act more quickly when rules are violated. They can instruct platforms to suspend landlords or remove rule-breaking advertisements for housing from their sites. The data exchange will empower local authorities to control the impact of short-term rentals on their community. At the same time, the law aims to make it easier for smaller providers to comply with the rules.

    After the regulation comes into effect, member states have 24 months to establish the mechanisms for data exchange, with support from the Commission. vis

    AI Act: Industry calls for new approach to foundation models

    The German and French industry associations see the future viability of the European economy at risk. In a letter to the negotiators of the AI Act in the Commission, the EU Parliament and the German government, BDI and MEDEF have opposed the two-tier approach of foundational models and general-purpose AI (GPAI) discussed in the negotiations.

    The two-tier regulatory approach is apparently being pushed forward “without sufficient consultation of relevant stakeholders in favor of a quick political deal,” they criticize. They urge the negotiators to “fully utilize the available time frame”.

    ‘Two-tier approach does not fit the risk-based nature of the AI Act’

    Both associations reject the accusation that they are only resisting this type of regulation to protect their emerging national champions. They are referring to the AI companies Mistral in France and Aleph Alpha in Germany, both of which raised triple-digit million amounts from investors this year. The assumption that the two-tier approach only imposes comprehensive compliance obligations on very large model providers is a dangerous misconception. Rather, the strong regulation of certain foundation models (FM) also affects a large portion of users because these models represent a widely used basic technology in the industry.

    The two-tier approach does not fit the risk-based nature of the AI Act. And adopting thresholds from existing laws like the DSA can lead to unintended consequences. BDI and MEDEF emphasize “that, unlike search engines and online platforms, foundation models serve as basic technologies without direct consumer interaction“. Criteria such as “high-impact” or “systemic” are unsuitable for determining the risk of foundation models. The associations also find the other criteria questionable or unrealistic.

    Self-regulation of foundation models does not gain a majority in Parliament

    In an initial reaction from the Greens in the European Parliament, it was stated that the BDI’s argumentation is not compelling. The application-specific regulation of GPAI and FM in the Parliament’s proposal follows the risk-based approach. The other criteria by which the models should be classified are considered appropriate, tested and feasible.

    On the other hand, FDP MEP Svenja Hahn said she shares the BDI’s goals of not bureaucratically burdening European companies. She finds both the two-tier approach and the proposal, which is also circulating, to completely remove foundation models from the AI Act and transfer them to a “regulated self-regulation” to be “content-wise viable”. However, since a very large majority of Parliament supports the regulation of foundation models in the AI Act, she currently considers Parliament’s approval of complete self-regulation to be unlikely. vis

    Ylva Johansson faces backlash from data protection advocates

    The targeted microtargeting by the Directorate-General for Home Affairs on platform X is now having consequences: Austrian data protection activists from None of Your Business (NOYB) have filed a complaint with the European Data Protection Supervisor.

    The reason for the action by the data protection advocates is the use of microtargeting by the DG Home on the X platform (formerly Twitter) in late summer. The DG Home had run targeted advertising in several member states. Critics believe that this was an undue attempt to influence political decision-making processes related to the CSA regulation. The regulation aims to strengthen the fight against online sexual abuse, but many members of the European Parliament accuse Ylva Johansson of wanting to open the door to mass surveillance through it.

    According to NOYB, the complainant is a affected Dutch user. The European Data Protection Supervisor confirmed the receipt of the complaint. In October, the supervisory authority had already sent a questionnaire to the DG Home. Currently, they are evaluating the response, according to a spokesperson.

    The DG Home initially considered the advertising campaign unproblematic. However, during an appearance in the LIBE Committee of the European Parliament, Johansson announced a new internal investigation. A spokesperson for the Commission stated that this investigation is ongoing, and they are conducting a careful review of the advertising campaign.

    Commission stops microtargeting

    Due to the alarming increase in disinformation and hate speech on social media platforms in recent weeks, they have “instructed the Commission services to refrain from advertisements with such content for now“, said a spokesperson. The instructions are regularly revised on a case-by-case basis. They are intended to ensure that social media managers of the authority and external service providers adhere to internal rules on all platforms.

    In the advertising campaign on X in September, the Commission ran ads in several member states where the position on the CSA regulation in the Council was particularly controversial. Political terms were used as exclusion criteria for the target audience. The existence of this advertising campaign and the criteria used were only revealed by third parties based on the transparency data of the platform.

    Microtargeting based on political beliefs has been explicitly banned on major platforms since August under the Digital Services Act. The Commission’s proposal for the regulation of political advertising explicitly warns against the “power and potential for abuse through targeting, including through microtargeting”. fst

    • Data protection
    • Digital policy

    DMA: TikTok objects to being classified as gatekeeper

    TikTok does not want to be classified as a gatekeeper. On Thursday, the short-video platform resisted against enhanced EU regulation. Just before the deadline, TikTok joined the objection raised by Facebook’s parent company, Meta.

    Platforms are considered gatekeepers when they reach a certain size, subjecting them to stricter requirements under the Digital Markets Act (DMA). In September, the Commission identified 22 key platforms operated by six of the world’s largest technology companies that are now subject to the new DMA rules.

    However, TikTok’s popularity is on the rise. A study by the Pew Research Center found that the share of US adults who regularly get their news from TikTok is growing. In three years, this share has more than quadrupled, from three percent to the current 14 percent. This means TikTok has surpassed X (formerly Twitter), which is used as a news source by 12 percent of Americans.

    The younger the users, the more intensively they use TikTok: Among those under 30, the share is one-third. cyb/rtr

    Daimler CEO: ‘Tariffs will never help our companies’

    At an event organized by the German CDU/CSU parliamentary group on Thursday, the different perspectives of companies and politicians on dealing with China came to light. Company representatives such as Daimler boss Ola Kallenius defended their economic involvement in the People’s Republic and their advocacy of continued close cooperation. They emphasized that they were not politicians, but ran companies for whose success they were responsible.

    On the other hand, EU Commission President Ursula von der Leyen justified Brussels’ increasingly critical view of Beijing and the Commission’s response to distortions in competition between Chinese and European car manufacturers with potential countermeasures.

    The CEO of Daimler firmly rejected this. “Tariffs will never help our companies,” says Källenius, “only creativity and free thinking.” He emphasized that nothing is more important than open markets. That is why he is strictly against higher tariffs imposed by the EU, even if China does, in fact, unfairly support its own companies with tariffs. “That only harms us all.” In such a case, he argued that the Chinese should be persuaded to impose lower tariffs instead of triggering an upward spiral.

    Era of ‘security and order’

    The CEO also refuted EU Commission President Ursula von der Leyen’s assessment that China was pursuing imperial ambitions and should be treated with caution. “I don’t believe that their primary goal is to come to Germany and introduce their system here,” said Källenius.

    The EU Commission President had previously painted a differentiated and, at the same time, much more critical picture of the situation. “The clear goal of the Chinese Communist Party is a systemic change in the international order with China at the center.” Beijing has now ended the phase of “reform and opening up” and is in an era of “security and order”. The country is pursuing the strategy of “reducing its dependency on the world while increasing the world’s dependency on itself”.

    This explained the strategically acquired dominance in rare earths, certain technologies and near-monopolies in critical raw materials“Geopolitics and geoeconomics cannot be seen as separate anymore,” said von der Leyen. In her view, this means that in the event of economic coercion by Beijing, Europe should “not only rely on WTO proceedings, but also be prepared to take robust, coordinated countermeasures.”

    You can read Stefan Braun‘s detailed Feature in today’s China.table.

    Sánchez reconfirmed as prime minister in Spain

    Pedro Sánchez has been reconfirmed as prime minister in Spain for another four years. The lower house in Madrid voted on Thursday, nearly four months after the parliamentary election, with 179 votes in favor and 171 against, supporting the continuation of the left-wing government. The 51-year-old leader of the Spanish Socialist Workers’ Party (PSOE) has been governing the fourth-largest economy in the EU with minority governments since mid-2018.

    In the snap parliamentary election on July 23, the PSOE, while only securing the second position behind the conservative People’s Party (PP) led by opposition leader Alberto Núñez Feijóo, managed to maintain power. However, Feijóo failed to organize a majority in the lower house.

    On the other hand, Socialist Sánchez secured the necessary votes by making controversial concessions to separatist parties. However, the majority is very slim, with only three votes. The PSOE leader had agreed to amnesty with Junts and Esquerra Republicana por Catalunya (ERC), which would erase all crimes committed by those involved in the Catalan separatist process since 2014. This move was criticized by many legal experts as a violation of judicial independence.

    EU Parliament discusses agreement

    The EU Commission is currently examining the draft amnesty law for possible violations of the rule of law standards. The leaders of the political groups in the European Parliament also decided to schedule a plenary debate next week in Strasbourg on the “threat to the rule of law as a result of the government agreement in Spain”.

    Puigdemont, the leader of Junts, has also assigned an international team of inspectors to the incumbent EU Council President Sánchez to monitor compliance with the amnesty agreements. According to the online medium “Ok Diario,” the first meeting between representatives of Junts and PSOE and the four-member international assessment team will take place next Monday in Geneva.

    Sánchez’s speech during the inauguration debate on Wednesday lasted just over an hour and a half. It was only in the 85th minute that he mentioned Catalonia and the amnesty pacts. He justified the deal with the separatists by the need to “build a wall against the far right”.

    Feijóo had sought an alliance with the right-wing nationalist party Vox. The opposition leader accused Sánchez on Thursday that his inauguration was based “on a fraud”. Feijóo claimed that Sánchez had repeatedly pledged during the campaign that his government would never make such a concession to the separatists. iccc/dpa

    Executive Moves

    Thomas Nowak, Secretary General of the Heat Pump Association EHPA, will be leaving his post in the coming months. The association announced this yesterday. Nowak will join Swedish heat pump manufacturer Qvantum as Vice President for Public Affairs and Government Relations in the first half of 2024.

    Is something changing in your organization? Let us know at heads@table.media!

    Dessert

    The pitfalls of the rail connection to Belgium

    Recently, the question was raised why a reasonably punctual arrival with rail transport in the EU metropolis Brussels from the direction of Germany is a matter of luck. The knowledgeable reader Dieter F. was kind enough to provide an explanation by email, a few hours after the publication of our briefing, in simple language and extremely humorously. As an “old hobby train enthusiast, former Federal Railways employee and current active and convinced non-user of Deutsche Bahn”, he could help.

    Belgium uses a different overhead voltage and different train safety systems. Train safety systems refer to how it is controlled whether the train driver reacts correctly to the signals. From Aachen, after the border, the ICE has to handle the ascent to the High Fens with 3,000 volts direct current (DC) from the Belgian overhead line, instead of 15,000 volts alternating current (AC) from the German overhead line.

    Return journey already in Liège

    Once on the plateau, the next system change follows: From now on, 25,000-volt alternating current (AC) flows, and there is a train safety system for speeds up to 300 kilometers per hour, which differs from the Belgian system. However, only a few ICE trains have this facility.

    The remaining multi-system ICE trains, also used on the route to Amsterdam, have to cope with 1,500 volts direct current, half the Belgian voltage, and the Dutch train safety system, which is similar to the Belgian one. However, they only need the German high-speed train safety system and do not operate under 25,000-volt alternating current.

    If one of the Belgium-compatible ICE trains fails and is replaced by an ICE for the Amsterdam route, it has to cope with 3,000 volts and the standard Belgian train safety system when ascending to the High Fens. “There is no way to avoid an hour of travel time extension.” To get back on time, the return journey must already be started in Liège, and the passengers in Brussels will be left in the lurch. However, a remedy is in sight. New trains that cope better with the system change have already been ordered.

    Many thanks to our attentive reader Dieter F.! Markus Grabitz

    Europe.table editorial team

    EUROPE.TABLE EDITORS

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