Table.Briefing: Europe

Dispute over party statute + Gas price cap on the verge of a breakthrough + Fit for 55 on the home stretch

  • New statute for EU parties: hardened fronts
  • Gas price cap on the verge of a breakthrough
  • Fit for 55 climate package on the home stretch
  • Trade ministers seek response to IRA
  • Lindner and Le Maire seek way out of crisis
  • Antitrust authorities intensify scrutiny of Microsoft
  • MEPs call for exit from ETC
  • European Parliament: no EU billions for Hungary
Dear reader,

There is real trouble in the negotiations between the European Parliament and the Council on the statute for European political parties. In the Parliament, it is believed that the Council has launched a campaign against the European party families – led by France, seconded by Germany. In the capitals, they probably have something against self-confident EU parties. Now that Macron has shaken up the French party landscape, it’s the EU level’s turn, it is speculated. Markus Grabitz analyzes the situation.

The energy ministers also argued fiercely – and were still unable to reach an agreement on the gas price cap. But there is cause for optimism: “We are not opening the champagne yet, but we are putting the bottle in the fridge,” said Czech Minister of Industry and Trade Jozef Sikela, who chaired the talks. Manuel Berkel shows the lines of discussion.

The Czech presidency, on the other hand, sees time pressure in the trilogue negotiations on the Fit for 55 climate package. Claire Stam has taken a look at the state of the negotiations and gives an outlook on what the sticking points are and when the next deadlines are due.

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Corinna Visser
Image of Corinna  Visser

Feature

New statute for EU parties: hardened fronts

The trilogue negotiations on the statute and financing of European parties are in danger of collapsing. The biggest point of contention is the membership of parties from non-EU countries in the European party families. The Council presidency is demanding that no party based in a non-EU country be allowed to be a member of the European party families. The European Parliament regards this as an affront

As a result, the planned trilogue on Dec. 7 may no longer take place. The fronts have hardened. The European Parliament now sees the member states’ line of negotiation as an attack on the right of European party families to organize themselves. Apparently, the member states have no interest in strong European party families.

The mandate for the Council’s party statute came into being in March, i.e. a few days after the start of the Russian war of aggression against Ukraine. The demands that parties from third countries may not be members of European party families and for a ban on money flows from these parties to the European party families are aimed at Russia. This is because Russia’s influence – including through financial support – on parties in the EU is to be prevented.

The European Parliament supports the approach of eliminating Russian influence. However, the demanded measures would also make cooperation with like-minded parties from outside the EU no longer possible.

EPP has four partner parties in Ukraine

For example, the EPP alone cooperates with four parties in Ukraine and maintains contacts with a friendly party in Switzerland and Kosovo. The Left Party has a partnership with a party in Belarus that is critical of Moscow.

Memberships of non-EU parties exist with different rights depending on the statutes of the party family – from fully associated to observer status. They are seen as an instrument of EU neighborhood policy.

As recently as 2020, parties paid small amounts, essentially membership dues, to the EU parties of which they are members. But since the ACRE ruling, European party families are no longer allowed to receive money from non-EU parties. As a compromise, the European Parliament had proposed that money flows from parties from countries that are members of the Council of Europe and not subject to sanctions be allowed. This would exclude payments from Russia.

Threshold for own funds to be lowered

Payments from non-EU parties used to play a role in party funding – and should again, according to the will of the Commission and the parties. European party families currently have to cover at least ten percent of their budgets from their own funds (membership fees, donations, proceeds from events), and they get the rest from the EU budget. If they are not allowed to accept money from outside the EU, they will have fewer claims on the EU budget.

The Commission had proposed that the minimum share of own resources should drop to five percent and be eliminated altogether in years of European elections. The Socialist party family received around €11 million from the EU budget in 2019, the EPP €15 million, the Greens €3.5 million, the Left €2.2 million.

There is also a dispute about the right of party families to campaign in referendums on EU issues. Until now, this has been prohibited. For example, they were not allowed to advertise for the EU before the Brexit referendum. The European Parliament wants this ban to be relaxed. The member states are against it.

France in particular is considered a hardliner in the negotiations on the party statute. However, the German government and other member states fully support the hard line in the Council, according to the party families. The party statute is supposed to come into force in 2024, at the time of the next European elections. In the meantime, the Parliament does not rule out the possibility that the negotiations will fail and that the current rules will still apply in 2024.

  • EU
  • European Commission

Gas price cap on the verge of a breakthrough

The disagreement was so great that the energy ministers might as well have gone home, said Czech Council President Jozef Síkela yesterday after the Council meeting. What he meant was the dispute over the Commission’s proposal on the gas price cap on Tuesday. In the end, there was a compromise: The Council reached an agreement on the content of the two laws on joint European gas purchasing and on faster approval procedures for renewable energies.

However, the two legal texts are not to be formally adopted until the next extraordinary energy Council – together with the controversial gas price cap. A whole series of supporters, such as Belgium, Greece and Spain, did not want to give up these means of exerting pressure. The extraordinary meeting will probably take place on Dec. 13, with a regular meeting of energy ministers also scheduled for Dec. 19.

Council presidency expects decision on Dec. 13

However, the Council presidency does not want to go for a majority decision in order to speed up the procedure. “I don’t expect there to be no agreement on the 13th. There is too much at stake for that,” said the Czech industry minister.

For gas and renewables legislation, the compromise reached yesterday means that further substantive negotiations “are not necessary,” according to Síkela. This is a bad result for both nature conservation and energy associations. Both camps still wanted substantial changes to the authorization law.

Germany’s State Secretary at the Ministry for Economic Affairs and Climate Action, Sven Giegold (Greens), however, sold the substantive agreement as a major success for the German government and probably for his party in particular: “The EU recognizes that renewable energies and the necessary grid infrastructure are of outstanding public interest and thus have priority in approval and planning. This will massively accelerate expansion in the coming years.”

Opponents of gas price cap show willingness to compromise

The Greens need this success for one of their central federal policy promises. But if there can only be a forced package solution with the gas price cap, Germany’s negotiating position is conceivably poor.

In any case, the front of the price cap opponents showed clear cracks yesterday. Austria’s Minister of Climate Action, Environment, Energy, Mobility, Innovation and Technology Leonore Gewessler (Greens), while reiterating that security of supply must be preserved, also said: “It is important that we leave no stone unturned to lower gas prices in Europe.”

Giegold himself let it be known that Germany is already working intensively on the criteria for a model that can be approved. For example, he said immediately before the Council meeting that a price cap should not apply for too long. Experts are nuanced about this, so a compromise could be found.

Full gas storage facilities lull governments into a sense of security

Proponents of the price cap also feel encouraged by the full gas storage facilities. Together with the mild weather so far, this winter is a good opportunity to test the functioning of the Market Correction Mechanism, said Greece’s Minister of the Environment and Energy Kostas Skrekas.

Skrekas described €150 to €200 as a reasonable level for the price cap. In contrast, the €275 per megawatt hour over a two-week period proposed by the Commission would have meant that the mechanism would not have been activated even at the peaks in the summer – which, according to Síkela, led to “heated discussions” in the Council.

Commission: next high-price phase not like August

However, Commissioner for Energy Kadri Simson defended the chosen model yesterday: “The next period of high prices will probably not be comparable to the one in August.” She said the mechanism should not be activated again and again on a day-by-day basis, which is why the two weeks were chosen sensibly. If one parameter is changed, it would have an impact on the others, according to Simson.

However, the need to continue working on the details was emphasized by virtually all member states. “The Commission’s proposal has exactly the opposite of the desired effect. It will rather lead to an increase in gas prices,” said Spain’s Deputy Prime Minister Teresa Ribera.

Municipal utilities see risk of price increases

These concerns are also shared by the energy industry. “The so-called front-month trading on the exchange, to which the price cap applies, covers only a small part of gas trading,” said VKU head Ingbert Liebing. If the Emergency Ordinance were to come into force in this way, it was to be feared that gas purchased on the exchange could be sold at high cost and without relief for consumers in other trading places.

“It would also be conceivable that liquidity in futures trading would decline as a result of the price cap and that gas procurement would take place more in the spot market. This would increase price volatility and would be accompanied by more price risks, also for gas consumers,” said the head of the municipal utility.

Dynamic price cap as a solution

In addition to the price level, the negotiations will now focus on the so-called safeguards until Dec. 13. The safeguards include, for example, that the price cap must not lead to rationing of gas. For Giegold, the Commission’s proposal is heading in the right direction, but “minor changes” are still necessary. However, a look at the text shows that there is a lack of verifiable criteria.

Spain, among others, is against a fixed price cap. “It would make much more sense to choose a dynamic price,” Ribera said. A surcharge on the changing LNG price on the world market is conceivable, for example. However, such a surcharge is already included in the Commission’s proposal, so there will be renegotiations.

But a dynamic cap is also seen by others as insurance against a permanent politicization of the gas price (Europe.Table reported). If the criteria for price adjustments were defined in advance in the Council decision, this could prevent governments from renegotiating the cap over and over again – at least that is the current hope.

  • Energy
  • Energy policy
  • Energy Prices
  • Gasspeicher
  • Natural gas
  • Renewable energies

Fit for 55 climate package on the home stretch

“December will be the month of compromise. And everything will happen around Dec. 15, we will have a political showdown,” says Pieter de Pous. He is head of the Fossil Fuel Transition Program at think tank E3G. The outcome of the recent elections in Sweden, which saw the far right enter government, has created a sense of urgency, adds a diplomatic source. As a result, negotiations would have to be completed by the end of the Czech presidency.

Blockade in the reduction of energy consumption

The Swedes, who take over the presidency of the EU Council in January, have already indicated that the issue of energy efficiency (EED) will not be one of their priorities, the source continues. At the recent trilogue on Nov. 22, the co-legislators managed to reach a compromise on Article 3 on the principle of prioritizing energy efficiency, he says.

However, technical work is needed on Article 8 on the energy savings obligation and Article 4 on the energy savings target, the source said. This is because the Parliament is pushing for a 40 percent target for reducing energy consumption by 2030, while the Commission and Council set the target at nine percent. “Only a small number of member states are in favor of going beyond the nine percent target,” de Pous said.

  • The next trilogue will take place on either Dec. 14 or 15.

Good perspective for RED

The situation with the Renewable Energy Directive (RED) is somewhat more promising. “There is a large majority of member states that support the 45 percent renewable energy target as proposed under RED,” de Pous says. The diplomatic source reports that negotiators have managed to finalize four of the five main topics of the last trilogue, namely the use of renewable energy at sea, in buildings, for heating and cooling.

The biggest obstacle is the definition of “green hydrogen.” Rapporteur Markus Pieper (EPP) notes that member states do not agree among themselves on the definition of green hydrogen. Moreover, the Commission has still not presented a definition of it, which was originally planned for the end of 2021. It has now committed to submitting these new rules (in jargon “additionality act”) to the relevant Council expert group and the Parliament quickly – by “the end of November, beginning of December”.

The parliamentary shadow rapporteurs will put pressure on the Commission to come up with the definition urgently needed by the industry as soon as possible. This is the only way to enable the investments needed for the new sector, according to European Parliament circles. Parliamentarians will try to turn the directive into a regulation if the Commission’s delegated act is not to the satisfaction of the European Parliament, Pieper says.

Continued uncertainty about the ETS

The inclusion of the transport and building sectors in CO2 emissions trading (ETS2) continues to meet with strong resistance in some member states, above all Poland and France, which fear an increase in heating and transport costs – and a yellow vest effect like in France. “It is mainly Germany that is in favor of the ETS2 and has to compromise on the Social Climate Fund,” says Pieter de Pous.

  • The next trilogue for ETS and Social Climate Fund will take place on Nov. 29. A jumbo trilogue is also planned for Dec. 16-17, when negotiators will try to reach an agreement on the ETS, the Carbon Border Adjustment Mechanism (CBAM) and the Social Climate Fund.

Credibility is at stake

The Fit for 55 climate package is the implementation at EU level of the Paris Agreement adopted in 2015. Behind the technical aspects of the negotiations currently underway in Brussels on the climate package is a clear challenge: the credibility of European climate policy on the international stage.

“It’s about showing the weaker countries that you are making progress at home, and this is particularly important in the run-up to COP28, where the Global Stocktake will take place,” analyzes de Pous. Indeed, adopting and implementing more ambitious targets under the Fit for 55 package would be able to increase the EU’s climate contribution (NDC) by up to 60 percent.

  • Climate & Environment
  • Climate Policy
  • European policy

EU-Monitoring

Nov. 28-29, 2022
Meeting of the G7 Justice Ministers
Topics: Coordination of the investigation of core crimes under international criminal law in the Ukraine. Infos

Nov. 28-29, 2022
Council of the EU: Education, Youth, Culture and Sport
Topics: Approval of the conclusions on supporting well-being in digital education, Policy debate on the European education area in times of Russian aggression in Ukraine, Approval of the conclusions on sustainable and accessible sports infrastructure. Draft Agenda

Nov. 28-29, 2022
Meeting of the Committee on Agriculture and Rural Development (DEVE)
Topics: Draft report on ensuring food security and long term resilience of the EU agriculture, Draft opinion on the assessment of the new Commission communication on outermost regions, Draft Agenda

Nov. 28-29, 2022
Meeting of the Committee on Industry, Research and Energy (ITRE)
Topics: Draft opinion on establishing a framework for setting ecodesign requirements for sustainable products, Draft opinion on information security in the institutions, bodies, offices and agencies of the EU, Draft report on critical technologies for security and defence (state of play and future challenges). Draft Agenda

Nov. 28-29, 2022
Meeting of the Committee on Security and Defense (SEDE)
Topics: Debate on the security and defence dimension of the strategy for the Indo-Pacific, Debate on the outcome of the European Defence Agency Steering Board, Understanding Russian nuclear policy in the context of the war of aggression against Ukraine. Draft Agenda

Nov. 28, 2022; 9 a.m.
Council of the EU: Foreign Affairs (Development)
Topics: Exchange of views on the EU-African Union summit follow-up, Exchange of views on the Team Europe in crisis response regarding Ukraine and Afghanistan. Draft Agenda

Nov. 28, 2022; 3-6:30 p.m.
Meeting of the Committe on the COVID-19 pandemic: lessons learned and recommendations for the future (COVI)
Topics: Exchange of views with experts on recommendations following from the COVID-19 pandemic. Draft Agenda

Nov. 28, 2022; 3-5 p.m.
Meeting of the Committee on Economic and Monetary Affairs (ECON)
Topics: Monetary Dialogue with Christine Lagarde (President of the European Central Bank). Draft Agenda

Nov. 29, 2022
Ministerial meeting between the Organisation of African, Caribbean and Pacific States (OACPS) and the EU
Topics: Policy debate on the current geopolitical context (including the food and energy crisis), Consultations on the EU-OACPS Partnership Agreement, Debate on the impact of the Global Gateway Strategy on the ACP states. Infos

Nov. 29, 2022
Trilogue: EU Emissions Trading System (ETS)
Topics: The inclusion of shipping in the European emissions trading system (ETS) could not be completed in this week’s trilogue round. However, the rapporteurs were confident that on Nov. 29 an agreement could be reached. A compromise on ETS 2 (buildings and road traffic) is currently still failing due to resistance from Poland and should only be seriously discussed at the two-day jumbo trialogue in mid-December.

Nov. 29, 2022
Trilogue: Climate Social Fund (SCF)
Topics: The Climate Social Fund is intended to provide relief for households and small and medium-sized enterprises due to the additional costs resulting from CO2 pricing in the buildings and road transport sectors (ETS 2). The positions of the Parliament and the Council are still far apart, so that an agreement is not expected until mid-December, when the ETS and CBAM negotiators also meet for a jumbo trilogue. Accordingly, on Tuesday, mainly technical issues of the SCF are expected to be clarified.

Nov. 29, 2022; 9 a.m.-6:30 p.m.
Meeting of the Committe on Transport and Tourism (TRAN)
Topics: Draft opinion on the assessment of the new Commission communication on outermost regions, Draft report on the new EU Urban Mobility Framework. Draft Agenda

Nov. 29, 2022; 9 a.m.-6:30 p.m.
Meeting of the Committee on the Internal Market (IMCO)
Topics: Draft opinion on the harmonised rules on fair access to and use of data (Data Act), Draft opinion on competition policy (annual report), Draft opinion on the corporate sustainability due diligence. Draft Agenda

Nov. 30-Dec. 1, 2022
Meeting of the Committe on International Trade (INTA)
Topics: Implementation report on the agreement on the withdrawal of the UK from the EU, Draft opinion on establishing a framework of measures for strengthening Europe’s semiconductor ecosystem (Chips Act), Exchange of views on EU-Taiwan trade and investment relations. Draft Agenda

Nov. 30-Dec. 1, 2022
Meeting of the Committee on Budgetary Control (CONT)
Topics: Joint Public Hearing with authorities of member states on the financial support for the treatment and accompanying of Ukrainian refugees. Draft Agenda

Nov. 30-Dec. 1, 2022
Meeting of the Committee on Environment, Public Health and Food Safety (ENVI)
Topics: Draft report on the reporting of environmental data from industrial installations and establishing an Industrial Emissions Portal, Draft report on strengthening the CO2 emission performance standards for new passenger cars and new light commercial vehicles in line with the EU’s increased climate ambition, Draft report on the shipment of waste. Draft Agenda

Nov. 30-Dec. 1, 2022
Meeting of the Committee on Foreign Affairs (AFET)
Topics: Draft report on the implementation of the common foreign and security policy (annual report 2022), Draft report on the implementation of the common security and defence policy (annual report 2022), Draft opinion on the proposals of the European Parliament for the amendment of the Treaties, report on ongoing interinstitutional negotiations. Draft Agenda

Nov. 30, 2022
Weekly Commission Meeting
Topics: Circular economy package II, Health package (Global health strategy, State of preparedness report) Draft Agenda

Nov. 30, 2022
ECJ negotiations on state aid for Frankfurt-Hahn Airport
Issues: In a decision dated July 31, 2017, the Commission approved grants from the State of Rhineland-Palatinate for Frankfurt-Hahn Airport, which is mainly used by Ryanair, without opening the formal investigation procedure. Lufthansa challenged this approval before the General Court of the EU, with success: In its ruling of May 19, 2021, the General Court declared the Commission decision null and void, as the examination carried out by the Commission had not been able to dispel all concerns regarding the compatibility of the aid in question with the internal market. The State of Rhineland-Palatinate has lodged an appeal with the Court of Justice against the judgment of the General Court. Lawsuit

Nov. 30, 2022; 9 a.m.-6:30 p.m.
Meeting of the Committee on Development (DEVE)
Topics: Draft opinion on the lessons learnt from the Pandora Papers and other revelations, Draft opinion on the protection of the environment through criminal law, Draft opinion on ensuring food security and long term resilience of the EU agriculture. Draft Agenda

Nov. 30, 2022; 9 a.m.-12:30 p.m.
Meeting of the Committee on Employment and Social Affairs (EMPL)
Topics: Amendment on establishing a Social Climate Fund, Draft report on the revision of European Works Councils Directive. Draft Agenda

Dec. 1-2, 2022
Council of the EU: Competitiveness (Internal Market, Industry, Research and Space)
Topics: General approach on the directive on corporate sustainability due diligence, Progress report on the regulation establishing a framework for setting ecodesign requirements for sustainable products, Approval of the conclusions on research infrastructures, Public consultation on the past, present and future of the European research & innovation framework programs 2014-2027. Draft Agenda

News

Trade ministers seek response to IRA

Today, EU trade ministers will discuss a response to the Inflation Reduction Act (IRA). France and Germany, in particular, are pushing for a European response: “We have to be aware that there is a risk that industrial jobs could disappear from Germany and Europe, which then won’t come back so quickly,” said SPD Chairman Lars Klingbeil after a trip to the US. He called for rapid reforms such as a capital markets union, an industrial policy agenda and investment in future technologies and infrastructure.

But in other EU countries, there are concerns about new subsidy programs for climate-friendly technologies, especially if they are tailored only to European manufacturers. “We shouldn’t copy what we don’t like in others,” said a senior EU diplomat. Otherwise, he said, we risk trade conflicts with many other countries.

The trade ministers are not expected to decide on any measures today. They want to wait and see how the talks between the EU Commission and the US government in the task force set up for this purpose are going and assess the progress after the meeting of the Transatlantic Trade and Technology Council (TTC) on Dec. 5, they said in Brussels. So far, Washington has hardly met the Europeans’ demands.

The latter are particularly bothered by the fact that many of the subsidies in the IRA are linked to a production site in North America and are calling for exemptions for their own industry, such as those granted to Canada and Mexico. The IRA is also expected to occupy the EU summit in mid-December.

The trade ministers will also discuss bilateral negotiations on free trade agreements. The Czech presidency hopes to conclude talks with Chile this year, and progress is also being made with Australia. It is still unclear how the Mercosur agreement, which German industry is pushing for, will proceed. tho/rtr

  • Climate & Environment
  • Climate protection

Lindner and Le Maire seek way out of crisis

Against the backdrop of Franco-German disagreements, German Federal Minister of Finance Christian Lindner (FDP) has sought a common course in the crisis with his Parisian counterpart Bruno Le Maire. At the meeting in Paris on Thursday, both cited the fight against inflation as a top priority, as well as more targeted aid for distressed households and companies and a return to balanced public finances. Aid for companies should not lead to a distortion of competition between Germany and France, he said. On this French point of concern, Lindner said that this was not the German intention.

In a statement, both ministers emphasized the need for Franco-German solidarity and fundamental agreement on the goals of economic and financial policy. However, they did not present a joint concept for reforming the EU’s Stability and Growth Pact, nor did they present a joint response to the US Inflation Reduction Act, because of which European companies are feared to be migrating to the United States. In this context, Le Maire had spoken out in favor of steps to favor European companies, Lindner proposed an improvement in private and public corporate financing. dpa

  • Economy
  • France
  • Germany

Antitrust authorities intensify scrutiny of Microsoft

Microsoft is likely to face an EU antitrust investigation as regulators intensify their scrutiny into its practices in a case triggered by Salesforce.com’s workspace messaging app Slack, people familiar with the matter said on Thursday.

Last year, Slack complained to the European Commission, saying that Microsoft has unfairly integrated its workplace chat and video app Teams into its Office product. Microsoft introduced Teams in 2017, seeking a slice of the fast-growing and lucrative workplace collaboration market.

Slack urged the EU competition enforcer to order the US software giant to separate Teams from the Office Suit and sell it separately at fair commercial prices. The Commission last month sent out another batch of questionnaires in a follow-up to those sent out in October last year, a sign that the EU competition enforcer is preparing the ground for opening a formal investigation, the people said.

The Commission as well as Microsoft, which has been fined €2.2 billion for cases involving so-called tying and other practices in the previous decade, declined to comment. rtr

  • Competition
  • Competition policy
  • Competition procedure
  • Microsoft

MEPs call for exit from ETC

The EU Parliament will support the EU’s withdrawal from the Energy Charter Treaty (ECT) if asked to do so. MEPs adopted a resolution to this effect on Thursday. They call on the Commission to start the process for a coordinated EU exit from the Energy Charter Treaty without delay and appeal to the Council to support such a proposal.

MEPs believe this is the best option for the EU to gain legal certainty and prevent the European Economic Area Treaty from further jeopardizing the EU’s climate and energy security goals. They consider the current ECT to be an outdated instrument that no longer serves the interests of the European Union, especially with regard to the goal of becoming climate neutral by 2050. vis

  • Climate Policy
  • Energy
  • Energy Charter
  • Energy policy
  • European Parliament

European Parliament: no EU billions for Hungary

EU states are to freeze several billion euros because of rule of law deficiencies in Hungary, according to the European Parliament. The measures proposed by Hungary for a better rule of law are not sufficient to address existing systemic risks, the EU Parliament said. Earlier, a majority of MEPs approved a resolution to that effect on Thursday.

“Viktor Orbán is destroying the Hungarian rule of law, courting Putin, allowing EU funds to be paid out to friends,” criticized FDP MEP Moritz Körner. With the Hungarian Prime Minister Orbán, no constitutional state is to be made. His Green counterpart Daniel Freund said: “It’s high time that Viktor Orbán finally gets the receipt from Brussels for his authoritarian course.”

The promises of the Orbán government would not be kept. However, it is becoming clear that the EU Commission will follow the line of the European Parliament. That means it is now up to EU states to freeze EU funds for Hungary so they are not “misused to destroy democracy,” he said. A spokeswoman for the EU Commission said Thursday that a decision may be made next week. dpa

  • European policy
  • Finance
  • Hungary
  • Rule of Law

Column

What’s cooking in Brussels

By Claire Stam
Schwarz-weiß Portrait von Claire Stam

Café culture in Brussels. Temperatures are dropping – and the number of remotely working employees in cafés is rising. They stay late, consume little and save money: In view of rising electricity prices, which have more than doubled in the space of a year, employees are particularly keen to lighten the load on their wallets. When he asks his guests whether they will stay long, the answers are always the same, says the owner of a café not far from the famous Place Flagey. They do it because it is nicer than staying at home and also cheaper. The situation is similar in the Centre and Saint-Gilles neighborhoods when the same question is asked at the counter.

Some café owners have reacted to the “squatteurs de table” – which could be roughly translated as table squatters – by turning up the music so that some patrons are already sitting in the café with headphones. Or they turn off the WiFi. Or they take an educational approach and ask the guests to pack their things. This is especially true at lunchtime, to keep the tables free for guests who actually come to eat.

What may seem like an amusing anecdote at first glance, however, harbors an ice-cold reality in the thermal and political sense of the word: While Germany is preparing to introduce an electricity price cap, which is already being implemented in France, Belgium only has social tariffs for low-income households. The middle class and a large number of companies, on the other hand, are feeling the full force of rising energy prices. Inflation in Belgium rose from 11.3 percent to 12.3 percent in October, its highest level since June 1975, when it was 12.50 percent.

Translated to the level of cafés, for example, this means that the electricity and gas bill of our café owner near Place Flagey has risen from €2,500 to €6,500 per month in one year. And it’s not just cafés that are affected, but also food shops, bakeries, artisans. All are experiencing how the prices for raw materials are skyrocketing.

The Belgian government does not have the same economic and financial leeway as its two large neighbors. It is therefore not surprising that Belgian Prime Minister Alexander De Croo and his Energy Minister Tinne Van der Straeten are calling for a European solution. They are aware of the great social instability that the price hike may trigger in their country. After all the energy summits, Belgians have yet to see concrete results – prices are still high. And they need results that have an immediate impact.

  • Belgium
  • Energy crisis
  • EU
  • Europäische Kommission
  • Inflation

Europe.Table Editorial Office

EUROPE.TABLE EDITORS

Licenses:
    • New statute for EU parties: hardened fronts
    • Gas price cap on the verge of a breakthrough
    • Fit for 55 climate package on the home stretch
    • Trade ministers seek response to IRA
    • Lindner and Le Maire seek way out of crisis
    • Antitrust authorities intensify scrutiny of Microsoft
    • MEPs call for exit from ETC
    • European Parliament: no EU billions for Hungary
    Dear reader,

    There is real trouble in the negotiations between the European Parliament and the Council on the statute for European political parties. In the Parliament, it is believed that the Council has launched a campaign against the European party families – led by France, seconded by Germany. In the capitals, they probably have something against self-confident EU parties. Now that Macron has shaken up the French party landscape, it’s the EU level’s turn, it is speculated. Markus Grabitz analyzes the situation.

    The energy ministers also argued fiercely – and were still unable to reach an agreement on the gas price cap. But there is cause for optimism: “We are not opening the champagne yet, but we are putting the bottle in the fridge,” said Czech Minister of Industry and Trade Jozef Sikela, who chaired the talks. Manuel Berkel shows the lines of discussion.

    The Czech presidency, on the other hand, sees time pressure in the trilogue negotiations on the Fit for 55 climate package. Claire Stam has taken a look at the state of the negotiations and gives an outlook on what the sticking points are and when the next deadlines are due.

    Your
    Corinna Visser
    Image of Corinna  Visser

    Feature

    New statute for EU parties: hardened fronts

    The trilogue negotiations on the statute and financing of European parties are in danger of collapsing. The biggest point of contention is the membership of parties from non-EU countries in the European party families. The Council presidency is demanding that no party based in a non-EU country be allowed to be a member of the European party families. The European Parliament regards this as an affront

    As a result, the planned trilogue on Dec. 7 may no longer take place. The fronts have hardened. The European Parliament now sees the member states’ line of negotiation as an attack on the right of European party families to organize themselves. Apparently, the member states have no interest in strong European party families.

    The mandate for the Council’s party statute came into being in March, i.e. a few days after the start of the Russian war of aggression against Ukraine. The demands that parties from third countries may not be members of European party families and for a ban on money flows from these parties to the European party families are aimed at Russia. This is because Russia’s influence – including through financial support – on parties in the EU is to be prevented.

    The European Parliament supports the approach of eliminating Russian influence. However, the demanded measures would also make cooperation with like-minded parties from outside the EU no longer possible.

    EPP has four partner parties in Ukraine

    For example, the EPP alone cooperates with four parties in Ukraine and maintains contacts with a friendly party in Switzerland and Kosovo. The Left Party has a partnership with a party in Belarus that is critical of Moscow.

    Memberships of non-EU parties exist with different rights depending on the statutes of the party family – from fully associated to observer status. They are seen as an instrument of EU neighborhood policy.

    As recently as 2020, parties paid small amounts, essentially membership dues, to the EU parties of which they are members. But since the ACRE ruling, European party families are no longer allowed to receive money from non-EU parties. As a compromise, the European Parliament had proposed that money flows from parties from countries that are members of the Council of Europe and not subject to sanctions be allowed. This would exclude payments from Russia.

    Threshold for own funds to be lowered

    Payments from non-EU parties used to play a role in party funding – and should again, according to the will of the Commission and the parties. European party families currently have to cover at least ten percent of their budgets from their own funds (membership fees, donations, proceeds from events), and they get the rest from the EU budget. If they are not allowed to accept money from outside the EU, they will have fewer claims on the EU budget.

    The Commission had proposed that the minimum share of own resources should drop to five percent and be eliminated altogether in years of European elections. The Socialist party family received around €11 million from the EU budget in 2019, the EPP €15 million, the Greens €3.5 million, the Left €2.2 million.

    There is also a dispute about the right of party families to campaign in referendums on EU issues. Until now, this has been prohibited. For example, they were not allowed to advertise for the EU before the Brexit referendum. The European Parliament wants this ban to be relaxed. The member states are against it.

    France in particular is considered a hardliner in the negotiations on the party statute. However, the German government and other member states fully support the hard line in the Council, according to the party families. The party statute is supposed to come into force in 2024, at the time of the next European elections. In the meantime, the Parliament does not rule out the possibility that the negotiations will fail and that the current rules will still apply in 2024.

    • EU
    • European Commission

    Gas price cap on the verge of a breakthrough

    The disagreement was so great that the energy ministers might as well have gone home, said Czech Council President Jozef Síkela yesterday after the Council meeting. What he meant was the dispute over the Commission’s proposal on the gas price cap on Tuesday. In the end, there was a compromise: The Council reached an agreement on the content of the two laws on joint European gas purchasing and on faster approval procedures for renewable energies.

    However, the two legal texts are not to be formally adopted until the next extraordinary energy Council – together with the controversial gas price cap. A whole series of supporters, such as Belgium, Greece and Spain, did not want to give up these means of exerting pressure. The extraordinary meeting will probably take place on Dec. 13, with a regular meeting of energy ministers also scheduled for Dec. 19.

    Council presidency expects decision on Dec. 13

    However, the Council presidency does not want to go for a majority decision in order to speed up the procedure. “I don’t expect there to be no agreement on the 13th. There is too much at stake for that,” said the Czech industry minister.

    For gas and renewables legislation, the compromise reached yesterday means that further substantive negotiations “are not necessary,” according to Síkela. This is a bad result for both nature conservation and energy associations. Both camps still wanted substantial changes to the authorization law.

    Germany’s State Secretary at the Ministry for Economic Affairs and Climate Action, Sven Giegold (Greens), however, sold the substantive agreement as a major success for the German government and probably for his party in particular: “The EU recognizes that renewable energies and the necessary grid infrastructure are of outstanding public interest and thus have priority in approval and planning. This will massively accelerate expansion in the coming years.”

    Opponents of gas price cap show willingness to compromise

    The Greens need this success for one of their central federal policy promises. But if there can only be a forced package solution with the gas price cap, Germany’s negotiating position is conceivably poor.

    In any case, the front of the price cap opponents showed clear cracks yesterday. Austria’s Minister of Climate Action, Environment, Energy, Mobility, Innovation and Technology Leonore Gewessler (Greens), while reiterating that security of supply must be preserved, also said: “It is important that we leave no stone unturned to lower gas prices in Europe.”

    Giegold himself let it be known that Germany is already working intensively on the criteria for a model that can be approved. For example, he said immediately before the Council meeting that a price cap should not apply for too long. Experts are nuanced about this, so a compromise could be found.

    Full gas storage facilities lull governments into a sense of security

    Proponents of the price cap also feel encouraged by the full gas storage facilities. Together with the mild weather so far, this winter is a good opportunity to test the functioning of the Market Correction Mechanism, said Greece’s Minister of the Environment and Energy Kostas Skrekas.

    Skrekas described €150 to €200 as a reasonable level for the price cap. In contrast, the €275 per megawatt hour over a two-week period proposed by the Commission would have meant that the mechanism would not have been activated even at the peaks in the summer – which, according to Síkela, led to “heated discussions” in the Council.

    Commission: next high-price phase not like August

    However, Commissioner for Energy Kadri Simson defended the chosen model yesterday: “The next period of high prices will probably not be comparable to the one in August.” She said the mechanism should not be activated again and again on a day-by-day basis, which is why the two weeks were chosen sensibly. If one parameter is changed, it would have an impact on the others, according to Simson.

    However, the need to continue working on the details was emphasized by virtually all member states. “The Commission’s proposal has exactly the opposite of the desired effect. It will rather lead to an increase in gas prices,” said Spain’s Deputy Prime Minister Teresa Ribera.

    Municipal utilities see risk of price increases

    These concerns are also shared by the energy industry. “The so-called front-month trading on the exchange, to which the price cap applies, covers only a small part of gas trading,” said VKU head Ingbert Liebing. If the Emergency Ordinance were to come into force in this way, it was to be feared that gas purchased on the exchange could be sold at high cost and without relief for consumers in other trading places.

    “It would also be conceivable that liquidity in futures trading would decline as a result of the price cap and that gas procurement would take place more in the spot market. This would increase price volatility and would be accompanied by more price risks, also for gas consumers,” said the head of the municipal utility.

    Dynamic price cap as a solution

    In addition to the price level, the negotiations will now focus on the so-called safeguards until Dec. 13. The safeguards include, for example, that the price cap must not lead to rationing of gas. For Giegold, the Commission’s proposal is heading in the right direction, but “minor changes” are still necessary. However, a look at the text shows that there is a lack of verifiable criteria.

    Spain, among others, is against a fixed price cap. “It would make much more sense to choose a dynamic price,” Ribera said. A surcharge on the changing LNG price on the world market is conceivable, for example. However, such a surcharge is already included in the Commission’s proposal, so there will be renegotiations.

    But a dynamic cap is also seen by others as insurance against a permanent politicization of the gas price (Europe.Table reported). If the criteria for price adjustments were defined in advance in the Council decision, this could prevent governments from renegotiating the cap over and over again – at least that is the current hope.

    • Energy
    • Energy policy
    • Energy Prices
    • Gasspeicher
    • Natural gas
    • Renewable energies

    Fit for 55 climate package on the home stretch

    “December will be the month of compromise. And everything will happen around Dec. 15, we will have a political showdown,” says Pieter de Pous. He is head of the Fossil Fuel Transition Program at think tank E3G. The outcome of the recent elections in Sweden, which saw the far right enter government, has created a sense of urgency, adds a diplomatic source. As a result, negotiations would have to be completed by the end of the Czech presidency.

    Blockade in the reduction of energy consumption

    The Swedes, who take over the presidency of the EU Council in January, have already indicated that the issue of energy efficiency (EED) will not be one of their priorities, the source continues. At the recent trilogue on Nov. 22, the co-legislators managed to reach a compromise on Article 3 on the principle of prioritizing energy efficiency, he says.

    However, technical work is needed on Article 8 on the energy savings obligation and Article 4 on the energy savings target, the source said. This is because the Parliament is pushing for a 40 percent target for reducing energy consumption by 2030, while the Commission and Council set the target at nine percent. “Only a small number of member states are in favor of going beyond the nine percent target,” de Pous said.

    • The next trilogue will take place on either Dec. 14 or 15.

    Good perspective for RED

    The situation with the Renewable Energy Directive (RED) is somewhat more promising. “There is a large majority of member states that support the 45 percent renewable energy target as proposed under RED,” de Pous says. The diplomatic source reports that negotiators have managed to finalize four of the five main topics of the last trilogue, namely the use of renewable energy at sea, in buildings, for heating and cooling.

    The biggest obstacle is the definition of “green hydrogen.” Rapporteur Markus Pieper (EPP) notes that member states do not agree among themselves on the definition of green hydrogen. Moreover, the Commission has still not presented a definition of it, which was originally planned for the end of 2021. It has now committed to submitting these new rules (in jargon “additionality act”) to the relevant Council expert group and the Parliament quickly – by “the end of November, beginning of December”.

    The parliamentary shadow rapporteurs will put pressure on the Commission to come up with the definition urgently needed by the industry as soon as possible. This is the only way to enable the investments needed for the new sector, according to European Parliament circles. Parliamentarians will try to turn the directive into a regulation if the Commission’s delegated act is not to the satisfaction of the European Parliament, Pieper says.

    Continued uncertainty about the ETS

    The inclusion of the transport and building sectors in CO2 emissions trading (ETS2) continues to meet with strong resistance in some member states, above all Poland and France, which fear an increase in heating and transport costs – and a yellow vest effect like in France. “It is mainly Germany that is in favor of the ETS2 and has to compromise on the Social Climate Fund,” says Pieter de Pous.

    • The next trilogue for ETS and Social Climate Fund will take place on Nov. 29. A jumbo trilogue is also planned for Dec. 16-17, when negotiators will try to reach an agreement on the ETS, the Carbon Border Adjustment Mechanism (CBAM) and the Social Climate Fund.

    Credibility is at stake

    The Fit for 55 climate package is the implementation at EU level of the Paris Agreement adopted in 2015. Behind the technical aspects of the negotiations currently underway in Brussels on the climate package is a clear challenge: the credibility of European climate policy on the international stage.

    “It’s about showing the weaker countries that you are making progress at home, and this is particularly important in the run-up to COP28, where the Global Stocktake will take place,” analyzes de Pous. Indeed, adopting and implementing more ambitious targets under the Fit for 55 package would be able to increase the EU’s climate contribution (NDC) by up to 60 percent.

    • Climate & Environment
    • Climate Policy
    • European policy

    EU-Monitoring

    Nov. 28-29, 2022
    Meeting of the G7 Justice Ministers
    Topics: Coordination of the investigation of core crimes under international criminal law in the Ukraine. Infos

    Nov. 28-29, 2022
    Council of the EU: Education, Youth, Culture and Sport
    Topics: Approval of the conclusions on supporting well-being in digital education, Policy debate on the European education area in times of Russian aggression in Ukraine, Approval of the conclusions on sustainable and accessible sports infrastructure. Draft Agenda

    Nov. 28-29, 2022
    Meeting of the Committee on Agriculture and Rural Development (DEVE)
    Topics: Draft report on ensuring food security and long term resilience of the EU agriculture, Draft opinion on the assessment of the new Commission communication on outermost regions, Draft Agenda

    Nov. 28-29, 2022
    Meeting of the Committee on Industry, Research and Energy (ITRE)
    Topics: Draft opinion on establishing a framework for setting ecodesign requirements for sustainable products, Draft opinion on information security in the institutions, bodies, offices and agencies of the EU, Draft report on critical technologies for security and defence (state of play and future challenges). Draft Agenda

    Nov. 28-29, 2022
    Meeting of the Committee on Security and Defense (SEDE)
    Topics: Debate on the security and defence dimension of the strategy for the Indo-Pacific, Debate on the outcome of the European Defence Agency Steering Board, Understanding Russian nuclear policy in the context of the war of aggression against Ukraine. Draft Agenda

    Nov. 28, 2022; 9 a.m.
    Council of the EU: Foreign Affairs (Development)
    Topics: Exchange of views on the EU-African Union summit follow-up, Exchange of views on the Team Europe in crisis response regarding Ukraine and Afghanistan. Draft Agenda

    Nov. 28, 2022; 3-6:30 p.m.
    Meeting of the Committe on the COVID-19 pandemic: lessons learned and recommendations for the future (COVI)
    Topics: Exchange of views with experts on recommendations following from the COVID-19 pandemic. Draft Agenda

    Nov. 28, 2022; 3-5 p.m.
    Meeting of the Committee on Economic and Monetary Affairs (ECON)
    Topics: Monetary Dialogue with Christine Lagarde (President of the European Central Bank). Draft Agenda

    Nov. 29, 2022
    Ministerial meeting between the Organisation of African, Caribbean and Pacific States (OACPS) and the EU
    Topics: Policy debate on the current geopolitical context (including the food and energy crisis), Consultations on the EU-OACPS Partnership Agreement, Debate on the impact of the Global Gateway Strategy on the ACP states. Infos

    Nov. 29, 2022
    Trilogue: EU Emissions Trading System (ETS)
    Topics: The inclusion of shipping in the European emissions trading system (ETS) could not be completed in this week’s trilogue round. However, the rapporteurs were confident that on Nov. 29 an agreement could be reached. A compromise on ETS 2 (buildings and road traffic) is currently still failing due to resistance from Poland and should only be seriously discussed at the two-day jumbo trialogue in mid-December.

    Nov. 29, 2022
    Trilogue: Climate Social Fund (SCF)
    Topics: The Climate Social Fund is intended to provide relief for households and small and medium-sized enterprises due to the additional costs resulting from CO2 pricing in the buildings and road transport sectors (ETS 2). The positions of the Parliament and the Council are still far apart, so that an agreement is not expected until mid-December, when the ETS and CBAM negotiators also meet for a jumbo trilogue. Accordingly, on Tuesday, mainly technical issues of the SCF are expected to be clarified.

    Nov. 29, 2022; 9 a.m.-6:30 p.m.
    Meeting of the Committe on Transport and Tourism (TRAN)
    Topics: Draft opinion on the assessment of the new Commission communication on outermost regions, Draft report on the new EU Urban Mobility Framework. Draft Agenda

    Nov. 29, 2022; 9 a.m.-6:30 p.m.
    Meeting of the Committee on the Internal Market (IMCO)
    Topics: Draft opinion on the harmonised rules on fair access to and use of data (Data Act), Draft opinion on competition policy (annual report), Draft opinion on the corporate sustainability due diligence. Draft Agenda

    Nov. 30-Dec. 1, 2022
    Meeting of the Committe on International Trade (INTA)
    Topics: Implementation report on the agreement on the withdrawal of the UK from the EU, Draft opinion on establishing a framework of measures for strengthening Europe’s semiconductor ecosystem (Chips Act), Exchange of views on EU-Taiwan trade and investment relations. Draft Agenda

    Nov. 30-Dec. 1, 2022
    Meeting of the Committee on Budgetary Control (CONT)
    Topics: Joint Public Hearing with authorities of member states on the financial support for the treatment and accompanying of Ukrainian refugees. Draft Agenda

    Nov. 30-Dec. 1, 2022
    Meeting of the Committee on Environment, Public Health and Food Safety (ENVI)
    Topics: Draft report on the reporting of environmental data from industrial installations and establishing an Industrial Emissions Portal, Draft report on strengthening the CO2 emission performance standards for new passenger cars and new light commercial vehicles in line with the EU’s increased climate ambition, Draft report on the shipment of waste. Draft Agenda

    Nov. 30-Dec. 1, 2022
    Meeting of the Committee on Foreign Affairs (AFET)
    Topics: Draft report on the implementation of the common foreign and security policy (annual report 2022), Draft report on the implementation of the common security and defence policy (annual report 2022), Draft opinion on the proposals of the European Parliament for the amendment of the Treaties, report on ongoing interinstitutional negotiations. Draft Agenda

    Nov. 30, 2022
    Weekly Commission Meeting
    Topics: Circular economy package II, Health package (Global health strategy, State of preparedness report) Draft Agenda

    Nov. 30, 2022
    ECJ negotiations on state aid for Frankfurt-Hahn Airport
    Issues: In a decision dated July 31, 2017, the Commission approved grants from the State of Rhineland-Palatinate for Frankfurt-Hahn Airport, which is mainly used by Ryanair, without opening the formal investigation procedure. Lufthansa challenged this approval before the General Court of the EU, with success: In its ruling of May 19, 2021, the General Court declared the Commission decision null and void, as the examination carried out by the Commission had not been able to dispel all concerns regarding the compatibility of the aid in question with the internal market. The State of Rhineland-Palatinate has lodged an appeal with the Court of Justice against the judgment of the General Court. Lawsuit

    Nov. 30, 2022; 9 a.m.-6:30 p.m.
    Meeting of the Committee on Development (DEVE)
    Topics: Draft opinion on the lessons learnt from the Pandora Papers and other revelations, Draft opinion on the protection of the environment through criminal law, Draft opinion on ensuring food security and long term resilience of the EU agriculture. Draft Agenda

    Nov. 30, 2022; 9 a.m.-12:30 p.m.
    Meeting of the Committee on Employment and Social Affairs (EMPL)
    Topics: Amendment on establishing a Social Climate Fund, Draft report on the revision of European Works Councils Directive. Draft Agenda

    Dec. 1-2, 2022
    Council of the EU: Competitiveness (Internal Market, Industry, Research and Space)
    Topics: General approach on the directive on corporate sustainability due diligence, Progress report on the regulation establishing a framework for setting ecodesign requirements for sustainable products, Approval of the conclusions on research infrastructures, Public consultation on the past, present and future of the European research & innovation framework programs 2014-2027. Draft Agenda

    News

    Trade ministers seek response to IRA

    Today, EU trade ministers will discuss a response to the Inflation Reduction Act (IRA). France and Germany, in particular, are pushing for a European response: “We have to be aware that there is a risk that industrial jobs could disappear from Germany and Europe, which then won’t come back so quickly,” said SPD Chairman Lars Klingbeil after a trip to the US. He called for rapid reforms such as a capital markets union, an industrial policy agenda and investment in future technologies and infrastructure.

    But in other EU countries, there are concerns about new subsidy programs for climate-friendly technologies, especially if they are tailored only to European manufacturers. “We shouldn’t copy what we don’t like in others,” said a senior EU diplomat. Otherwise, he said, we risk trade conflicts with many other countries.

    The trade ministers are not expected to decide on any measures today. They want to wait and see how the talks between the EU Commission and the US government in the task force set up for this purpose are going and assess the progress after the meeting of the Transatlantic Trade and Technology Council (TTC) on Dec. 5, they said in Brussels. So far, Washington has hardly met the Europeans’ demands.

    The latter are particularly bothered by the fact that many of the subsidies in the IRA are linked to a production site in North America and are calling for exemptions for their own industry, such as those granted to Canada and Mexico. The IRA is also expected to occupy the EU summit in mid-December.

    The trade ministers will also discuss bilateral negotiations on free trade agreements. The Czech presidency hopes to conclude talks with Chile this year, and progress is also being made with Australia. It is still unclear how the Mercosur agreement, which German industry is pushing for, will proceed. tho/rtr

    • Climate & Environment
    • Climate protection

    Lindner and Le Maire seek way out of crisis

    Against the backdrop of Franco-German disagreements, German Federal Minister of Finance Christian Lindner (FDP) has sought a common course in the crisis with his Parisian counterpart Bruno Le Maire. At the meeting in Paris on Thursday, both cited the fight against inflation as a top priority, as well as more targeted aid for distressed households and companies and a return to balanced public finances. Aid for companies should not lead to a distortion of competition between Germany and France, he said. On this French point of concern, Lindner said that this was not the German intention.

    In a statement, both ministers emphasized the need for Franco-German solidarity and fundamental agreement on the goals of economic and financial policy. However, they did not present a joint concept for reforming the EU’s Stability and Growth Pact, nor did they present a joint response to the US Inflation Reduction Act, because of which European companies are feared to be migrating to the United States. In this context, Le Maire had spoken out in favor of steps to favor European companies, Lindner proposed an improvement in private and public corporate financing. dpa

    • Economy
    • France
    • Germany

    Antitrust authorities intensify scrutiny of Microsoft

    Microsoft is likely to face an EU antitrust investigation as regulators intensify their scrutiny into its practices in a case triggered by Salesforce.com’s workspace messaging app Slack, people familiar with the matter said on Thursday.

    Last year, Slack complained to the European Commission, saying that Microsoft has unfairly integrated its workplace chat and video app Teams into its Office product. Microsoft introduced Teams in 2017, seeking a slice of the fast-growing and lucrative workplace collaboration market.

    Slack urged the EU competition enforcer to order the US software giant to separate Teams from the Office Suit and sell it separately at fair commercial prices. The Commission last month sent out another batch of questionnaires in a follow-up to those sent out in October last year, a sign that the EU competition enforcer is preparing the ground for opening a formal investigation, the people said.

    The Commission as well as Microsoft, which has been fined €2.2 billion for cases involving so-called tying and other practices in the previous decade, declined to comment. rtr

    • Competition
    • Competition policy
    • Competition procedure
    • Microsoft

    MEPs call for exit from ETC

    The EU Parliament will support the EU’s withdrawal from the Energy Charter Treaty (ECT) if asked to do so. MEPs adopted a resolution to this effect on Thursday. They call on the Commission to start the process for a coordinated EU exit from the Energy Charter Treaty without delay and appeal to the Council to support such a proposal.

    MEPs believe this is the best option for the EU to gain legal certainty and prevent the European Economic Area Treaty from further jeopardizing the EU’s climate and energy security goals. They consider the current ECT to be an outdated instrument that no longer serves the interests of the European Union, especially with regard to the goal of becoming climate neutral by 2050. vis

    • Climate Policy
    • Energy
    • Energy Charter
    • Energy policy
    • European Parliament

    European Parliament: no EU billions for Hungary

    EU states are to freeze several billion euros because of rule of law deficiencies in Hungary, according to the European Parliament. The measures proposed by Hungary for a better rule of law are not sufficient to address existing systemic risks, the EU Parliament said. Earlier, a majority of MEPs approved a resolution to that effect on Thursday.

    “Viktor Orbán is destroying the Hungarian rule of law, courting Putin, allowing EU funds to be paid out to friends,” criticized FDP MEP Moritz Körner. With the Hungarian Prime Minister Orbán, no constitutional state is to be made. His Green counterpart Daniel Freund said: “It’s high time that Viktor Orbán finally gets the receipt from Brussels for his authoritarian course.”

    The promises of the Orbán government would not be kept. However, it is becoming clear that the EU Commission will follow the line of the European Parliament. That means it is now up to EU states to freeze EU funds for Hungary so they are not “misused to destroy democracy,” he said. A spokeswoman for the EU Commission said Thursday that a decision may be made next week. dpa

    • European policy
    • Finance
    • Hungary
    • Rule of Law

    Column

    What’s cooking in Brussels

    By Claire Stam
    Schwarz-weiß Portrait von Claire Stam

    Café culture in Brussels. Temperatures are dropping – and the number of remotely working employees in cafés is rising. They stay late, consume little and save money: In view of rising electricity prices, which have more than doubled in the space of a year, employees are particularly keen to lighten the load on their wallets. When he asks his guests whether they will stay long, the answers are always the same, says the owner of a café not far from the famous Place Flagey. They do it because it is nicer than staying at home and also cheaper. The situation is similar in the Centre and Saint-Gilles neighborhoods when the same question is asked at the counter.

    Some café owners have reacted to the “squatteurs de table” – which could be roughly translated as table squatters – by turning up the music so that some patrons are already sitting in the café with headphones. Or they turn off the WiFi. Or they take an educational approach and ask the guests to pack their things. This is especially true at lunchtime, to keep the tables free for guests who actually come to eat.

    What may seem like an amusing anecdote at first glance, however, harbors an ice-cold reality in the thermal and political sense of the word: While Germany is preparing to introduce an electricity price cap, which is already being implemented in France, Belgium only has social tariffs for low-income households. The middle class and a large number of companies, on the other hand, are feeling the full force of rising energy prices. Inflation in Belgium rose from 11.3 percent to 12.3 percent in October, its highest level since June 1975, when it was 12.50 percent.

    Translated to the level of cafés, for example, this means that the electricity and gas bill of our café owner near Place Flagey has risen from €2,500 to €6,500 per month in one year. And it’s not just cafés that are affected, but also food shops, bakeries, artisans. All are experiencing how the prices for raw materials are skyrocketing.

    The Belgian government does not have the same economic and financial leeway as its two large neighbors. It is therefore not surprising that Belgian Prime Minister Alexander De Croo and his Energy Minister Tinne Van der Straeten are calling for a European solution. They are aware of the great social instability that the price hike may trigger in their country. After all the energy summits, Belgians have yet to see concrete results – prices are still high. And they need results that have an immediate impact.

    • Belgium
    • Energy crisis
    • EU
    • Europäische Kommission
    • Inflation

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