Table.Briefing: Europe (English)

Defense: What Merz is planning + CBAM levies

Dear reader,

The Europeans are anything but in agreement about sending peacekeeping troops to Ukraine. However, talks on this are now likely to become more concrete: According to US President Donald Trump, Russian President Vladimir Putin would agree to European peacekeeping troops to secure a possible ceasefire in Ukraine. “Yes, he would accept that,” the Republican said when asked on the sidelines of a visit by French President Emmanuel Macron in Washington.

According to his own statement, Trump wants to meet with Ukrainian President Volodymyr Zelenskiy this week or next. The meeting is about an agreement on US access to raw materials stored in Ukraine, among other things. “We are getting very close to an agreement,” said Trump.

Macron and Trump met in Washington yesterday, on the third anniversary of the start of the Russian full-scale invasion of Ukraine. “We have a role to play within the framework of the security guarantees,” said Macron. Together with its British partners, France had consulted on the guarantees in recent weeks, including the deployment of troops. At a mini-summit in Paris a few days ago, Macron wanted to win over as many partners as possible for these considerations, but was met with rejection by German Chancellor Olaf Scholz.

Things seem to be more harmonious with the likely next chancellor Friedrich Merz. Merz reported yesterday that he had discussed Macron’s messages to Trump with him and found “complete agreement.” Read Till Hoppe’s analysis to find out what Merz is planning for European defense.

I wish you a harmonious Tuesday.

Your
Sarah Schaefer
Image of Sarah  Schaefer

Feature

Future government: How Merz wants to secure Europe’s defense

Friedrich Merz is far from being Chancellor, but the winner of the Bundestag elections from the CDU is already setting the tone for his European policy. Yesterday, Merz reported that he had discussed his messages to Donald Trump with French President Emmanuel Macron and found “complete agreement.” He is also seeking close contact with Polish Prime Minister Donald Tusk and British Prime Minister Keir Starmer, Merz said, as well as with smaller countries such as the Baltic states. The message must be very clear: “Europe is united and cohesive.”

Merz wants Germany to regain a leading role in the EU under his aegis, closely coordinated with important partners. And he insists that willing member states lead the way. Always waiting for a consensus among the 27 will “not be realistic,” he said. But there is no time: “It really is high time for Europe.”

Preparing for the worst-case scenario: ‘America Alone’

The task could hardly be greater: At the latest at the NATO summit at the end of June, we will see how resilient the relationship with the USA still is, says Merz – and how the Europeans are positioning themselves for this. The staunch transatlanticist has not given up hope that US President Trump will still recognize the value of the alliance with Europe. But we must prepare for the worst-case scenario, Merz warns: That the new US administration will not only pursue an “America First” policy, but also an “America Alone” policy.

The issue of defense capability is therefore a top priority for him. The sums required are huge: A study by the think tank Bruegel with the Kiel Institute for the World Economy puts the additional financial requirement in Europe at EUR 250 billion per year in order to be able to defend itself against an attack by Russia without US support. The experts suggest raising half of this from national budgets and the other half through debt for joint arms procurement.

Blocking minority of AfD and left-wing parties

According to this, Germany alone would have to mobilize more than EUR 60 billion in additional funds. “We all know that the Bundeswehr will need a lot more money in the coming years,” said Merz. However, the blocking minority of the AfD and the Left Party in the new Bundestag makes it difficult for him to relax the debt brake or decide on a new special fund.

Merz therefore wants to discuss the option of passing the necessary amendment to the Basic Law with a two-thirds majority of the old Bundestag with the leaders of the SPD’s likely coalition partners, the Greens and the FDP this week. Even before the official exploratory negotiations with the SPD, which are due to begin after carnival on March 6, Merz wants to sound out with party leader Lars Klingbeil how the financing issues can be clarified.

The Greens had proposed an amendment to the debt brake before the new Bundestag is constituted on March 24. After the deadline, Merz would have to rely on the approval of the Left Party. This party rejects a new special fund for the Bundeswehr. A fundamental reform of the debt brake, on the other hand, would be possible with them – but the CDU/CSU is unlikely to be willing to do this.

Detour via Brussels is not a pleasant option

The route via Brussels is also not very attractive for the CDU and CSU. An exception to the EU debt rules, as promised by Commission President Ursula von der Leyen, would not help Merz, as the German debt brake continues to apply. Basically, the only option would be joint EU debt, for example in the form of defense bonds, as demanded by several EU states. However, this would mean that a CDU-led federal government would be entering the “debt union” that the party has always warned against.

The chancellor-designate will have to find a solution in the coming weeks in order to meet his own demands. Merz has formulated the ambition of becoming more powerful again with the new federal government. To this end, he wants to strengthen the Federal Chancellery as the center of power.

Chancellery to coordinate European policy more closely

The major issues of internal and external security are to be dealt with there by a National Security Council. Merz also wants to strengthen the role of the Chancellery in positioning European policy issues. However, without completely disempowering the Federal Foreign Office and the Federal Ministry of Economic Affairs, which have coordinated European policy in the Federal Government to date. As a likely coalition partner, the SPD would hardly support this if the Social Democrats were to claim the AA for themselves.

However, Merz said in a speech at the Körber Foundation at the end of January that the Federal Chancellery should “become more involved in key European policy issues in the future.” To this end, the European Department is also to be expanded in terms of personnel.

Who could become chancellor’s advisor

Michael Clauß, the former EU ambassador in Brussels, is being touted as the Chancellor’s European policy advisor. The diplomat, who has no party affiliation, is also held in high regard by Merz. Should Clauß not be available, other candidates would come into play.

According to reports, this includes Michael Hager, currently Head of Cabinet for Economic Affairs Commissioner Valdis Dombrovskis. The former colleague of Günther Oettinger is very well connected in Brussels, but less so in Berlin. With Stefan Braun

  • EU-Schuldenregeln
  • Schuldenbremse
Translation missing.

Anniversary of the invasion: How the EU wants to continue supporting Ukraine

The EU has reaffirmed its course in its Ukraine policy, but at the same time declared its willingness to participate in possible negotiations with the USA and Russia on an end to the war. One week before a special summit on Ukraine planned for March 6 in Brussels, there is talk of a special European envoy for the first time.

“I believe that we will strengthen our European position if we manage to have a joint special envoy who represents not only the EU but also the other European countries,” said Council President António Costa in Kyiv on Monday. It initially remained unclear who could assume this position.

So far, France’s head of state Emmanuel Macron has been the main proponent of a joint negotiating position. After two crisis meetings with the EU states in Paris, he traveled to Washington on Monday for talks with US President Donald Trump. It remains to be seen whether he will also be able to represent the EU in possible negotiations.

Kallas: No peace settlement without the EU or Ukraine

It is important that Europe participates in the talks, said Costa in Kyiv. The Portuguese named “friends such as Norway, Iceland and the United Kingdom” as potential supporters of a possible special envoy. He said that details would be discussed at the special EU summit in a week’s time.

Costa traveled to Kyiv together with Commission President Ursula von der Leyen, 21 Commissioners and several European heads of state and government to express their continued and unreserved solidarity with Ukraine on the third anniversary of the Russian invasion. The EU foreign ministers met in Brussels at the same time.

This led to a number of disagreements. For example, EU High Representative for Foreign Affairs Kaja Kallas declared in Brussels that there could be no peace settlement without the EU or Ukraine. “No deal can work without us,” she said. However, Kallas did not mention a special envoy. It also remained unclear what solution the EU had in mind.

So far, only the USA has outlined a peace plan, which – as far as is known – incorporates Russia’s key demands. The EU has not presented its own plan, but has cited the “peace formula” presented by President Volodymyr Zelenskiy in 2022 and emphasized that Ukraine must decide for itself what form a solution can take.

Concerns in dealing with frozen Russian assets

“We must support Ukraine more than ever,” emphasized Kallas. In addition to the 16th package of sanctions against Russia, which was formally adopted at the meeting of foreign ministers, she announced further aid packages for Ukraine. There is talk of at least 1.5 million rounds of ammunition as well as air defense systems, missiles and drones.

Various figures are circulating regarding the financial requirements, ranging from six billion euros to 30 billion euros. According to Kallas, she expects a decision by the beginning of March. At the same time, she dampened hopes that the frozen Russian assets could be used for financing. So far there is no consensus.

Belgium and France, as well as the European Central Bank, have raised concerns about the confiscation of Russian central bank assets frozen in the EU. The ECB fears that this could shake investors’ confidence in the euro. In contrast, Kallas emphasizes that Russia must pay reparations.

Rapid integration into the single market

Commission President von der Leyen commented on Ukraine’s accession to the EU. She said in Kyiv that partial integration of the country into the internal market was already possible this year. She cited the “Roam like home” telecommunications program as an example.

At the special summit on March 6, she will present the long-awaited plan to expand European arms production and defense capacities, von der Leyen continued. She also announced a new financial injection of EUR 3.5 billion for Ukraine. The money is due to flow in March.

Investment aid for renewable energies

The Commission’s program also includes further support for the Ukrainian energy sector. Brussels wants to promote the filling of gas storage facilities in Ukraine: “This will lead to sufficient gas reserves, which will ensure security of supply and benefit both Ukraine and the entire region.”

EU states are also likely to be involved. Kyiv proposed to its Western partners some time ago to use the Ukrainian storage facilities for their energy security. The Commission also wants to use the Ukraine Facility to provide investment aid for renewable energies with a capacity of 1.5 gigawatts. This would correspond to around 500 new wind turbines, for example.

Ukraine is also expected to implement outstanding rules for the EU electricity market by spring 2027. Last September, the Commission had already announced aid amounting to EUR 156 million for the severely damaged Ukrainian energy system and better connections to EU countries. Ukraine and Moldova had already connected their electricity grids to those of the European Union in March 2022.

  • EU-Außenpolitik
  • EU-Beitritt

Events

Feb. 26, 2025; 2-4 p.m., Brussels (Belgium)
Committee for European Construction Equipment, Discussion Advancing the MAC Protocol
The MAC Protocol (Mining, Agriculture, and Construction Protocol) is part of the Cape Town Convention and facilitates financing for high-value mobile equipment in these industries by creating an international legal framework. During the event, experts will discuss the operational benefits of the MAC Protocol, its implications for European machinery and the necessary steps to realize its potential. Info

Feb. 26, 2025; 2-3:30 p.m., online
Heinrich Böll Foundation, Webinar Germany has voted: What next for Europe? Assessing the European consequences of Germany’s political shift
The election results and their implications for Germany’s role in Europe will be discussed. INFO & REGISTRATION

News

CBAM: EU Commission wants to postpone financial levies by one year

The levies of the European carbon border adjustment mechanism (CBAM) are not to be introduced until February 2027 instead of early 2026 as originally planned, according to the EU Commission’s draft revision of the CBAM, which is available to Table.Briefings and will be presented on Wednesday (Feb. 26).

The test phase of the CBAM is currently underway, in which importers of products subject to CBAM must report the emissions during production but do not yet have to pay a levy. The Commission wants to reduce the bureaucratic burden on small and medium-sized companies in particular and is therefore proposing numerous changes to the CBAM.

Higher CBAM bagatelle limits

The draft provides for:

  • Small importers are to be exempt from CBAM levies: Companies whose imported products subject to CBAM emit less than 100 tons of CO₂ equivalent or whose total weight is less than 50 tons are to be exempt. According to the Commission, the vast majority of importers would be exempt from reporting obligations, while 99% of emissions would continue to be recorded.
  • Importers subject to CBAM can delegate reporting to third parties, but retain legal responsibility for submitting the documents. For example, management consultancies could be commissioned with the reporting.
  • The use of default values is to be expanded: If companies are unable to collect reliable information on the emissions intensity of imported products, they may use default values. These values are defined for each exporting country and for each product.
  • Extended consideration of CO₂ levies already paid: For a CO₂ price already paid in the country of origin, a corresponding discount is provided for in the CBAM. In the future, companies will also be able to claim CO₂ levies paid in third countries for the CBAM rebate. The Commission provides the basis for calculating this.
  • Adjustment in the calculation of emissions from steel and aluminum products: Some downstream goods and manufacturing processes that are not covered by European emissions trading are also to be excluded from CBAM.

CBAM extension until 2026 under review

To give companies sufficient time to implement the changes, the mandatory purchase of CBAM certificates for imports into the EU internal market is to be postponed by one year. The EU Parliament and Council still have to approve the proposals. The regular review and potential extension of the CBAM to other sectors should continue to take place as planned in 2026. luk

  • EU-Binnenmarkt
  • Nachhaltigkeitsberichterstattung

Jørgensen calls for US cooperation on energy security

In a guest article for the Atlantic Council think tank, Energy Commissioner Dan Jørgensen calls for continuity in the EU’s relations with the USA on energy security issues. In the piece published on Thursday, Jørgensen only mentions direct cooperation in the field of renewable energies in passing. First and foremost, he mentions the joint support for the reconstruction of the badly damaged energy sector in Ukraine: “The continuation of this cooperation in the coming years to support the reconstruction and reform of the Ukrainian energy sector will be equally crucial.”

Jørgensen also emphasizes the importance of the EU-US dialogue on cybersecurity for the digitalization of the European energy system. LNG from the US could continue to play an “important role in achieving our REPowerEU goal of phasing out Russian energy supplies to the EU.” However, environmental NGOs around CAN Europe recently warned the Commission in an open letter that additional LNG imports would increase Europe’s dependency.

Nuclear energy and raw materials for renewables

Together, the US and the EU could also more easily secure the supply of critical raw materials for the energy sector and “reward responsible economic actors by sharing the benefits of next-generation energy.” It is the most concrete reference to renewable energy.

In the area of nuclear energy, Jørgensen is now pursuing a different line than he did in his confirmation hearing in the EU Parliament. In November, he had said that he would examine whether Europe could achieve strategic autonomy in the nuclear supply chain. In the guest article, he now declares cooperation with the USA on the use of nuclear energy to be a “priority” – including on the topics of SMRs and fusion reactors. ber

  • Kernfusion

Genetic engineering: Council agreement could be imminent

At a working meeting on Friday, a majority of EU member states agreed to the Polish Council Presidency’s compromise proposal on new genetic technologies (NGT). This was confirmed by several sources from Council circles. Some countries have not yet made a final decision. If everything goes according to the Polish plan, the Permanent Representatives of the member states could vote on the Council’s position in March.

A Council agreement would bring the proposal to deregulate new breeding techniques a decisive step closer to adoption. While the European Parliament had already adopted its negotiating position around a year ago, talks between the member states had been deadlocked for a long time.

Nevertheless, there would still be difficult negotiations between the Council and Parliament. The Polish compromise is comparatively close to the Commission’s proposal. It wants to comprehensively deregulate category 1 genetically modified plants, which are considered comparable to conventional breeds. The Parliament, on the other hand, is calling for mandatory labeling of genetically modified products along the entire supply chain and a ban on patents for genetically modified plants and seeds. jd

  • Europäisches Parlament

CO₂ fleet regulation: ACEA makes proposals to avert fines

The industry association ACEA is submitting two technical proposals to the Commission to avert the penalties that manufacturers will have to pay for failing to meet the 2025 climate targets. The proposals are:

  • Gradual phase-in of the limit values
  • Introduction of an average fulfillment mechanism for the years 2025-2029

The gradual phase-in of the limit values, which vary from manufacturer to manufacturer depending on the average weight of the fleet, works like this: The average fleet limit of 93.6 grams of CO₂ per kilometer driven by new vehicles will only apply to 90 percent of manufacturers’ registered new vehicles in 2025. In 2026, the limit will apply to 95 percent of new vehicles. From 2027, the CO₂ fleet limit will apply to all newly registered vehicles from a manufacturer. There was also a delayed phase-in of the limit values in 2020.

The average compliance mechanism would mean It remains the case that manufacturers must reduce the fuel consumption of vehicles by 15 percent between 2025 and 2030. However, it is up to them whether they achieve the full reduction in 2025 or compensate for it in subsequent years.

Penalties in the billions

It is expected that Volkswagen, Renault and Mercedes will not comply with the CO₂ fleet limits, which will be tightened in 2025. This could result in fines of up to EUR 16 billion. The industry assumes that fines of up to EUR 13 billion could be incurred for 2025 for failing to meet the targets for passenger cars and up to three billion euros for vans. BMW and Stellantis expect to be able to meet the 2025 climate targets.

Across the EU, battery electric vehicles (EVs) accounted for 15% of new vehicles in January. This figure has been stagnating for months. In 2024, the EV share was below 14 percent on an annual average. To reach the 2025 target, the EV share would have to rise to around 25 percent in 2025. From 2030, EU legislation provides for a reduction in the CO₂ fleet limit value from 93.6 to an average of 49.5 grams of CO₂ per kilometer driven. To achieve this, it is estimated that the proportion of EVs must increase to 60 to 75 percent.

If the EU maintains the fines unchanged, the industry has three options, argues ACEA:

  • accepting fines and thus weakening their own competitiveness
  • pooling with Tesla or other EV manufacturers, which can roughly halve the costs compared to fines
  • drastic restrictions on the registration of combustion vehicles in order to meet the targets – with consequences for factory capacity utilization and jobs; OEMs would have to produce an estimated two million fewer cars and 700,000 fewer vans in 2025 than in 2024
  • drastic price cuts for EVs to boost sales

ACEA points out that, according to an investigation by the Commission, EU manufacturers have already sold EVs at a loss in 2020, 2021 and 2022. If the industry were forced to make further price cuts, this would jeopardize investments in the transformation. mgr

  • Europäische Kommission

Europe.Table Editorial Team

EUROPE.TABLE EDITORIAL OFFICE

Licenses:
    Dear reader,

    The Europeans are anything but in agreement about sending peacekeeping troops to Ukraine. However, talks on this are now likely to become more concrete: According to US President Donald Trump, Russian President Vladimir Putin would agree to European peacekeeping troops to secure a possible ceasefire in Ukraine. “Yes, he would accept that,” the Republican said when asked on the sidelines of a visit by French President Emmanuel Macron in Washington.

    According to his own statement, Trump wants to meet with Ukrainian President Volodymyr Zelenskiy this week or next. The meeting is about an agreement on US access to raw materials stored in Ukraine, among other things. “We are getting very close to an agreement,” said Trump.

    Macron and Trump met in Washington yesterday, on the third anniversary of the start of the Russian full-scale invasion of Ukraine. “We have a role to play within the framework of the security guarantees,” said Macron. Together with its British partners, France had consulted on the guarantees in recent weeks, including the deployment of troops. At a mini-summit in Paris a few days ago, Macron wanted to win over as many partners as possible for these considerations, but was met with rejection by German Chancellor Olaf Scholz.

    Things seem to be more harmonious with the likely next chancellor Friedrich Merz. Merz reported yesterday that he had discussed Macron’s messages to Trump with him and found “complete agreement.” Read Till Hoppe’s analysis to find out what Merz is planning for European defense.

    I wish you a harmonious Tuesday.

    Your
    Sarah Schaefer
    Image of Sarah  Schaefer

    Feature

    Future government: How Merz wants to secure Europe’s defense

    Friedrich Merz is far from being Chancellor, but the winner of the Bundestag elections from the CDU is already setting the tone for his European policy. Yesterday, Merz reported that he had discussed his messages to Donald Trump with French President Emmanuel Macron and found “complete agreement.” He is also seeking close contact with Polish Prime Minister Donald Tusk and British Prime Minister Keir Starmer, Merz said, as well as with smaller countries such as the Baltic states. The message must be very clear: “Europe is united and cohesive.”

    Merz wants Germany to regain a leading role in the EU under his aegis, closely coordinated with important partners. And he insists that willing member states lead the way. Always waiting for a consensus among the 27 will “not be realistic,” he said. But there is no time: “It really is high time for Europe.”

    Preparing for the worst-case scenario: ‘America Alone’

    The task could hardly be greater: At the latest at the NATO summit at the end of June, we will see how resilient the relationship with the USA still is, says Merz – and how the Europeans are positioning themselves for this. The staunch transatlanticist has not given up hope that US President Trump will still recognize the value of the alliance with Europe. But we must prepare for the worst-case scenario, Merz warns: That the new US administration will not only pursue an “America First” policy, but also an “America Alone” policy.

    The issue of defense capability is therefore a top priority for him. The sums required are huge: A study by the think tank Bruegel with the Kiel Institute for the World Economy puts the additional financial requirement in Europe at EUR 250 billion per year in order to be able to defend itself against an attack by Russia without US support. The experts suggest raising half of this from national budgets and the other half through debt for joint arms procurement.

    Blocking minority of AfD and left-wing parties

    According to this, Germany alone would have to mobilize more than EUR 60 billion in additional funds. “We all know that the Bundeswehr will need a lot more money in the coming years,” said Merz. However, the blocking minority of the AfD and the Left Party in the new Bundestag makes it difficult for him to relax the debt brake or decide on a new special fund.

    Merz therefore wants to discuss the option of passing the necessary amendment to the Basic Law with a two-thirds majority of the old Bundestag with the leaders of the SPD’s likely coalition partners, the Greens and the FDP this week. Even before the official exploratory negotiations with the SPD, which are due to begin after carnival on March 6, Merz wants to sound out with party leader Lars Klingbeil how the financing issues can be clarified.

    The Greens had proposed an amendment to the debt brake before the new Bundestag is constituted on March 24. After the deadline, Merz would have to rely on the approval of the Left Party. This party rejects a new special fund for the Bundeswehr. A fundamental reform of the debt brake, on the other hand, would be possible with them – but the CDU/CSU is unlikely to be willing to do this.

    Detour via Brussels is not a pleasant option

    The route via Brussels is also not very attractive for the CDU and CSU. An exception to the EU debt rules, as promised by Commission President Ursula von der Leyen, would not help Merz, as the German debt brake continues to apply. Basically, the only option would be joint EU debt, for example in the form of defense bonds, as demanded by several EU states. However, this would mean that a CDU-led federal government would be entering the “debt union” that the party has always warned against.

    The chancellor-designate will have to find a solution in the coming weeks in order to meet his own demands. Merz has formulated the ambition of becoming more powerful again with the new federal government. To this end, he wants to strengthen the Federal Chancellery as the center of power.

    Chancellery to coordinate European policy more closely

    The major issues of internal and external security are to be dealt with there by a National Security Council. Merz also wants to strengthen the role of the Chancellery in positioning European policy issues. However, without completely disempowering the Federal Foreign Office and the Federal Ministry of Economic Affairs, which have coordinated European policy in the Federal Government to date. As a likely coalition partner, the SPD would hardly support this if the Social Democrats were to claim the AA for themselves.

    However, Merz said in a speech at the Körber Foundation at the end of January that the Federal Chancellery should “become more involved in key European policy issues in the future.” To this end, the European Department is also to be expanded in terms of personnel.

    Who could become chancellor’s advisor

    Michael Clauß, the former EU ambassador in Brussels, is being touted as the Chancellor’s European policy advisor. The diplomat, who has no party affiliation, is also held in high regard by Merz. Should Clauß not be available, other candidates would come into play.

    According to reports, this includes Michael Hager, currently Head of Cabinet for Economic Affairs Commissioner Valdis Dombrovskis. The former colleague of Günther Oettinger is very well connected in Brussels, but less so in Berlin. With Stefan Braun

    • EU-Schuldenregeln
    • Schuldenbremse
    Translation missing.

    Anniversary of the invasion: How the EU wants to continue supporting Ukraine

    The EU has reaffirmed its course in its Ukraine policy, but at the same time declared its willingness to participate in possible negotiations with the USA and Russia on an end to the war. One week before a special summit on Ukraine planned for March 6 in Brussels, there is talk of a special European envoy for the first time.

    “I believe that we will strengthen our European position if we manage to have a joint special envoy who represents not only the EU but also the other European countries,” said Council President António Costa in Kyiv on Monday. It initially remained unclear who could assume this position.

    So far, France’s head of state Emmanuel Macron has been the main proponent of a joint negotiating position. After two crisis meetings with the EU states in Paris, he traveled to Washington on Monday for talks with US President Donald Trump. It remains to be seen whether he will also be able to represent the EU in possible negotiations.

    Kallas: No peace settlement without the EU or Ukraine

    It is important that Europe participates in the talks, said Costa in Kyiv. The Portuguese named “friends such as Norway, Iceland and the United Kingdom” as potential supporters of a possible special envoy. He said that details would be discussed at the special EU summit in a week’s time.

    Costa traveled to Kyiv together with Commission President Ursula von der Leyen, 21 Commissioners and several European heads of state and government to express their continued and unreserved solidarity with Ukraine on the third anniversary of the Russian invasion. The EU foreign ministers met in Brussels at the same time.

    This led to a number of disagreements. For example, EU High Representative for Foreign Affairs Kaja Kallas declared in Brussels that there could be no peace settlement without the EU or Ukraine. “No deal can work without us,” she said. However, Kallas did not mention a special envoy. It also remained unclear what solution the EU had in mind.

    So far, only the USA has outlined a peace plan, which – as far as is known – incorporates Russia’s key demands. The EU has not presented its own plan, but has cited the “peace formula” presented by President Volodymyr Zelenskiy in 2022 and emphasized that Ukraine must decide for itself what form a solution can take.

    Concerns in dealing with frozen Russian assets

    “We must support Ukraine more than ever,” emphasized Kallas. In addition to the 16th package of sanctions against Russia, which was formally adopted at the meeting of foreign ministers, she announced further aid packages for Ukraine. There is talk of at least 1.5 million rounds of ammunition as well as air defense systems, missiles and drones.

    Various figures are circulating regarding the financial requirements, ranging from six billion euros to 30 billion euros. According to Kallas, she expects a decision by the beginning of March. At the same time, she dampened hopes that the frozen Russian assets could be used for financing. So far there is no consensus.

    Belgium and France, as well as the European Central Bank, have raised concerns about the confiscation of Russian central bank assets frozen in the EU. The ECB fears that this could shake investors’ confidence in the euro. In contrast, Kallas emphasizes that Russia must pay reparations.

    Rapid integration into the single market

    Commission President von der Leyen commented on Ukraine’s accession to the EU. She said in Kyiv that partial integration of the country into the internal market was already possible this year. She cited the “Roam like home” telecommunications program as an example.

    At the special summit on March 6, she will present the long-awaited plan to expand European arms production and defense capacities, von der Leyen continued. She also announced a new financial injection of EUR 3.5 billion for Ukraine. The money is due to flow in March.

    Investment aid for renewable energies

    The Commission’s program also includes further support for the Ukrainian energy sector. Brussels wants to promote the filling of gas storage facilities in Ukraine: “This will lead to sufficient gas reserves, which will ensure security of supply and benefit both Ukraine and the entire region.”

    EU states are also likely to be involved. Kyiv proposed to its Western partners some time ago to use the Ukrainian storage facilities for their energy security. The Commission also wants to use the Ukraine Facility to provide investment aid for renewable energies with a capacity of 1.5 gigawatts. This would correspond to around 500 new wind turbines, for example.

    Ukraine is also expected to implement outstanding rules for the EU electricity market by spring 2027. Last September, the Commission had already announced aid amounting to EUR 156 million for the severely damaged Ukrainian energy system and better connections to EU countries. Ukraine and Moldova had already connected their electricity grids to those of the European Union in March 2022.

    • EU-Außenpolitik
    • EU-Beitritt

    Events

    Feb. 26, 2025; 2-4 p.m., Brussels (Belgium)
    Committee for European Construction Equipment, Discussion Advancing the MAC Protocol
    The MAC Protocol (Mining, Agriculture, and Construction Protocol) is part of the Cape Town Convention and facilitates financing for high-value mobile equipment in these industries by creating an international legal framework. During the event, experts will discuss the operational benefits of the MAC Protocol, its implications for European machinery and the necessary steps to realize its potential. Info

    Feb. 26, 2025; 2-3:30 p.m., online
    Heinrich Böll Foundation, Webinar Germany has voted: What next for Europe? Assessing the European consequences of Germany’s political shift
    The election results and their implications for Germany’s role in Europe will be discussed. INFO & REGISTRATION

    News

    CBAM: EU Commission wants to postpone financial levies by one year

    The levies of the European carbon border adjustment mechanism (CBAM) are not to be introduced until February 2027 instead of early 2026 as originally planned, according to the EU Commission’s draft revision of the CBAM, which is available to Table.Briefings and will be presented on Wednesday (Feb. 26).

    The test phase of the CBAM is currently underway, in which importers of products subject to CBAM must report the emissions during production but do not yet have to pay a levy. The Commission wants to reduce the bureaucratic burden on small and medium-sized companies in particular and is therefore proposing numerous changes to the CBAM.

    Higher CBAM bagatelle limits

    The draft provides for:

    • Small importers are to be exempt from CBAM levies: Companies whose imported products subject to CBAM emit less than 100 tons of CO₂ equivalent or whose total weight is less than 50 tons are to be exempt. According to the Commission, the vast majority of importers would be exempt from reporting obligations, while 99% of emissions would continue to be recorded.
    • Importers subject to CBAM can delegate reporting to third parties, but retain legal responsibility for submitting the documents. For example, management consultancies could be commissioned with the reporting.
    • The use of default values is to be expanded: If companies are unable to collect reliable information on the emissions intensity of imported products, they may use default values. These values are defined for each exporting country and for each product.
    • Extended consideration of CO₂ levies already paid: For a CO₂ price already paid in the country of origin, a corresponding discount is provided for in the CBAM. In the future, companies will also be able to claim CO₂ levies paid in third countries for the CBAM rebate. The Commission provides the basis for calculating this.
    • Adjustment in the calculation of emissions from steel and aluminum products: Some downstream goods and manufacturing processes that are not covered by European emissions trading are also to be excluded from CBAM.

    CBAM extension until 2026 under review

    To give companies sufficient time to implement the changes, the mandatory purchase of CBAM certificates for imports into the EU internal market is to be postponed by one year. The EU Parliament and Council still have to approve the proposals. The regular review and potential extension of the CBAM to other sectors should continue to take place as planned in 2026. luk

    • EU-Binnenmarkt
    • Nachhaltigkeitsberichterstattung

    Jørgensen calls for US cooperation on energy security

    In a guest article for the Atlantic Council think tank, Energy Commissioner Dan Jørgensen calls for continuity in the EU’s relations with the USA on energy security issues. In the piece published on Thursday, Jørgensen only mentions direct cooperation in the field of renewable energies in passing. First and foremost, he mentions the joint support for the reconstruction of the badly damaged energy sector in Ukraine: “The continuation of this cooperation in the coming years to support the reconstruction and reform of the Ukrainian energy sector will be equally crucial.”

    Jørgensen also emphasizes the importance of the EU-US dialogue on cybersecurity for the digitalization of the European energy system. LNG from the US could continue to play an “important role in achieving our REPowerEU goal of phasing out Russian energy supplies to the EU.” However, environmental NGOs around CAN Europe recently warned the Commission in an open letter that additional LNG imports would increase Europe’s dependency.

    Nuclear energy and raw materials for renewables

    Together, the US and the EU could also more easily secure the supply of critical raw materials for the energy sector and “reward responsible economic actors by sharing the benefits of next-generation energy.” It is the most concrete reference to renewable energy.

    In the area of nuclear energy, Jørgensen is now pursuing a different line than he did in his confirmation hearing in the EU Parliament. In November, he had said that he would examine whether Europe could achieve strategic autonomy in the nuclear supply chain. In the guest article, he now declares cooperation with the USA on the use of nuclear energy to be a “priority” – including on the topics of SMRs and fusion reactors. ber

    • Kernfusion

    Genetic engineering: Council agreement could be imminent

    At a working meeting on Friday, a majority of EU member states agreed to the Polish Council Presidency’s compromise proposal on new genetic technologies (NGT). This was confirmed by several sources from Council circles. Some countries have not yet made a final decision. If everything goes according to the Polish plan, the Permanent Representatives of the member states could vote on the Council’s position in March.

    A Council agreement would bring the proposal to deregulate new breeding techniques a decisive step closer to adoption. While the European Parliament had already adopted its negotiating position around a year ago, talks between the member states had been deadlocked for a long time.

    Nevertheless, there would still be difficult negotiations between the Council and Parliament. The Polish compromise is comparatively close to the Commission’s proposal. It wants to comprehensively deregulate category 1 genetically modified plants, which are considered comparable to conventional breeds. The Parliament, on the other hand, is calling for mandatory labeling of genetically modified products along the entire supply chain and a ban on patents for genetically modified plants and seeds. jd

    • Europäisches Parlament

    CO₂ fleet regulation: ACEA makes proposals to avert fines

    The industry association ACEA is submitting two technical proposals to the Commission to avert the penalties that manufacturers will have to pay for failing to meet the 2025 climate targets. The proposals are:

    • Gradual phase-in of the limit values
    • Introduction of an average fulfillment mechanism for the years 2025-2029

    The gradual phase-in of the limit values, which vary from manufacturer to manufacturer depending on the average weight of the fleet, works like this: The average fleet limit of 93.6 grams of CO₂ per kilometer driven by new vehicles will only apply to 90 percent of manufacturers’ registered new vehicles in 2025. In 2026, the limit will apply to 95 percent of new vehicles. From 2027, the CO₂ fleet limit will apply to all newly registered vehicles from a manufacturer. There was also a delayed phase-in of the limit values in 2020.

    The average compliance mechanism would mean It remains the case that manufacturers must reduce the fuel consumption of vehicles by 15 percent between 2025 and 2030. However, it is up to them whether they achieve the full reduction in 2025 or compensate for it in subsequent years.

    Penalties in the billions

    It is expected that Volkswagen, Renault and Mercedes will not comply with the CO₂ fleet limits, which will be tightened in 2025. This could result in fines of up to EUR 16 billion. The industry assumes that fines of up to EUR 13 billion could be incurred for 2025 for failing to meet the targets for passenger cars and up to three billion euros for vans. BMW and Stellantis expect to be able to meet the 2025 climate targets.

    Across the EU, battery electric vehicles (EVs) accounted for 15% of new vehicles in January. This figure has been stagnating for months. In 2024, the EV share was below 14 percent on an annual average. To reach the 2025 target, the EV share would have to rise to around 25 percent in 2025. From 2030, EU legislation provides for a reduction in the CO₂ fleet limit value from 93.6 to an average of 49.5 grams of CO₂ per kilometer driven. To achieve this, it is estimated that the proportion of EVs must increase to 60 to 75 percent.

    If the EU maintains the fines unchanged, the industry has three options, argues ACEA:

    • accepting fines and thus weakening their own competitiveness
    • pooling with Tesla or other EV manufacturers, which can roughly halve the costs compared to fines
    • drastic restrictions on the registration of combustion vehicles in order to meet the targets – with consequences for factory capacity utilization and jobs; OEMs would have to produce an estimated two million fewer cars and 700,000 fewer vans in 2025 than in 2024
    • drastic price cuts for EVs to boost sales

    ACEA points out that, according to an investigation by the Commission, EU manufacturers have already sold EVs at a loss in 2020, 2021 and 2022. If the industry were forced to make further price cuts, this would jeopardize investments in the transformation. mgr

    • Europäische Kommission

    Europe.Table Editorial Team

    EUROPE.TABLE EDITORIAL OFFICE

    Licenses:

      Sign up now and continue reading immediately

      No credit card details required. No automatic renewal.

      Sie haben bereits das Table.Briefing Abonnement?

      Anmelden und weiterlesen