Defense Commissioner for the EU? + FDP undermines renaturation law

Dear reader,

Friedrich August von Hayek is not exactly the body and soul economist of the social democrats. In his work “The Road to Serfdom”, the Austrian thinker declared socialism to be incompatible with democracy and individual freedom. Even a social market economy, Hayek argued at the time, was no longer a market economy. Today, Hayek would be described as a neoliberal.

And yet the Social Democrat Olaf Scholz is appearing today at the Friedrich August von Hayek Foundation, of all places, to mark the publication of “The Road to Serfdom” 80 years ago. After a speech on economic policy, the Federal Chancellor will be in discussion with Estonian Prime Minister Kaja Kallas, a liberal, at the Hotel de Rome in Berlin.

FDP leader Christian Lindner will then make an appearance there, before old-school regulatory politicians such as Ottmar Issing have their say in the afternoon. It was Jens Weidmann, Chairman of the Board of Trustees of the Hayek Foundation, who was able to lure the Chancellor into this ordoliberal nest. Scholz appreciates the former advisor to his predecessor Angela Merkel.

Regulatory policy or its absence is also the topic of an event organized by Table.Briefings and the European Movement Germany this morning. In our series “Top Candidates in Conversation”, this time we are talking to Green candidate Terry Reintke about the economic consequences of the Green Deal. Her discussion partner is Henning Vöpel, Director of the Center for European Politics and Chairman of the Stiftung Ordnungspolitik. It starts at 8:30 a.m. You can still register here.

We wish you a successful day!

Your
Till Hoppe

Does the EU need a Defense Commissioner?

By

Stephan Israel

Ursula von der Leyen has made up her mind. If she is given a second term as Commission President, she wants to create a new post in her college as Commissioner for Defense. The European People’s Party has also prominently included the demand for the prestigious job in its election manifesto. However, the response outside of her own party family is mixed, and there are also reservations in some member states.

Von der Leyen justifies her initiative with Russia’s war of aggression against Ukraine and the challenge this poses for Europe. The issue of Europe’s defense and the wars in the neighborhood are likely to dominate the election campaign, with the EPP’s lead candidate taking up the topic prominently. However, the Commission President has not yet specified the exact scope of her portfolio, which may have led to misunderstandings.

More than just an EU Commissioner for defense industry

MEP Michael Gahler (CDU), foreign policy spokesman for the EPP group, naturally supports his party colleague’s plan and advocates the broadest possible range of responsibilities. The portfolio should not be limited to a pure EU Commissioner for the defense industry, but rather a Commissioner for the Defense Union is needed.

The future incumbent must also be able to demand the realization of the internal market for defense equipment, which has been repeatedly undermined by the member states in recent years with reference to national security. According to Gahler, the area of military mobility should also be part of the remit of a Commissioner for Defense. The same applies to the Defense Fund, which was created to promote cooperative research and investment.

“It is crucial”, says Gahler, “that the Commissioner bundles the existing competencies of the Commission on the one hand, but also builds a bridge to the instruments and initiatives of the member states, in particular PESCO, in order to effectively focus joint efforts on strengthening European defense capabilities.” Against this backdrop, Gahler also hopes that the Security and Defense Subcommittee (SEDE) in the new Parliament will be upgraded to a Committee on Defense, which could reflect the competencies of the Commissioner for Defense.

‘Massive security risk’ for Europe

Hannah Neumann (Greens), on the other hand, is skeptical. According to the MEP, who is also a member of the SEDE subcommittee, the discussion about the post of a defense commissioner is distracting from the actual problems. Europe must produce and purchase more together and ensure that deliveries reach Ukraine first and not Qatar or Saudi Arabia, for example, simply because they ordered first.

All of this is already possible today, but the member states often lack the will. They must finally understand that going it alone represents a “massive security risk” for Europe. Only if there was a rethink in the capitals would it make sense to set up a Defense Commissioner. Otherwise, the demand would be nothing more than an election campaign maneuver.

Ursula von der Leyen is good at “declaiming headlines”, says Social Democrat Udo Bullmann. A headline is not yet a policy, but like a bad check. The Commission President must clearly state how the new figure can be made capable of acting. There is no point in compensating for the fragmentation of the arms industry with the fragmentation of responsibilities in the EU Commission.

There are neither sufficient budgetary resources for the post, nor are the member states prepared to transfer sovereignty to Brussels or create sufficient clout with Eurobonds, for example. Udo Bullmann argues “pragmatically” in favor of strengthening the post of High Representative instead.

Discussion about more money foreseeable

The goal is not a European defense minister, emphasizes Eric Maurice from the European Policy Centre (EPC). However, the EU could underline the importance of this policy area in the next legislative period with a super commissioner for the defense industry. The portfolio of Internal Market Commissioner Thierry Breton is already very broad, so the area of the defense industry could be easily separated. In addition, there will be the task of implementing the new EU defense industry program (EDIP) and the overarching strategy.

Beyond this, however, there are currently hardly any signs that the member states are prepared to relinquish additional powers. However, the discussion about more money will come, such as a fund of €100 billion, as Breton has called for.

Although the Commission President can determine the composition of the portfolios on her own authority, she cannot ignore the response from the Member States and Parliament. There are also doubts in some capitals as to whether the initiative is more than just an election campaign slogan.

Berlin and Paris react cautiously

More skeptical statements are coming from Berlin. There will not be a Commissioner for War and Peace. And with Josep Borrell, there is already someone who can chair the meetings of the defense ministers. The idea of additional funds is also not realistic. Federal Defence Minister Boris Pistorius (SPD) also pointed out that defense in the EU was organized on an intergovernmental basis. However, he could imagine a commissioner for the armaments industry who would combine existing competencies within the EU Commission, but not create any new responsibilities.

Initial reactions in Paris are also ambivalent. The post should not be associated with a transfer of sovereignty.

Frenchman Thierry Breton is considered a possible candidate for the new post in Brussels, should Emmanuel Macron send him to Brussels for a second term. The names of Polish Foreign Minister Radosław Sikorski and Estonian Prime Minister Kaja Kallas have also been mentioned.

The Netherlands could send outgoing Defense Minister Kajsa Ollongren, who has publicly campaigned for the separate post of Defense Commissioner, into the race. The Czech Jiří Šedivý, currently Secretary General of the European Defense Agency, has also signaled his interest. The post is already attracting a lot of interest before it has even been created.

Macron’s minimum price for farmers brings more questions than answers

By

Claire Stam

It was one of the promises Macron made to protesting farmers at the Salon d’Agriculture, the country’s largest agricultural trade fair, at the end of February: a “minimum price” would apply to agricultural products in the future in order to guarantee farmers a fair income. According to Agriculture Minister Marc Fesneau, this should be based on production costs.

However, it is still unclear how exactly this will be defined. After all, production costs also vary within a sector depending on the size of the farm, location or type of farming. Agricultural associations are correspondingly unimpressed – they are calling for clarity.

Scope and calculation unclear

“For a dairy farmer who keeps his animals in the mountains, the costs are not the same as for another farmer in the flat countryside. How do we decide which figure applies?”, asks Sébastien Poutreau, grain farmer and board member of the French farmers’ association FNSEA, in the newspaper “Le Figaro“. “You will have to explain to us what this minimum price is,” emphasizes Eric Thirouin, President of the Association of Wheat Producers, in the newspaper “Le Monde“.

It also remains unclear which agricultural products the minimum price should apply to. In Thirouin’s view, this would be difficult for cereals, for example. This is because cereal producers are – at their own request – exempt from many of the regulations on pricing and market power to which the new minimum price would apply. Instead, they are part of a liberalized market in which prices are set across Europe via trading venues such as Euronext.

Amendment planned for summer

The government in Paris has until the summer to clarify all of this. The minimum price should then become part of the third reform of Egalim, the French equivalent of the German Agricultural Organizations and Supply Chains Act (AgrarOLkG). Egalim currently sets a price range: minimum and maximum limits between which the selling price can fluctuate, theoretically taking into account producer prices.

However, this only applies to beef, pork and dairy products for the time being. Producers criticize the fact that they are not involved in the annual determination of price ranges and continue to complain about price pressure from traders. In addition, the French Court of Auditors criticized the lack of sanctions in February.

Macron calls for European equality

Nevertheless, Macron sees Egalim as a model for the EU and is calling for a European version of the law. To a certain extent, this already exists: the EU Unfair Trading Practices Directive (UTP) provides the framework for national laws such as Egalim or AgrarOLkG. However, it does not go far enough for Macron.

“The reason why Macron is calling for a European Egalim law is to take action against European shopping centers“, Pascal Canfin, MEP and Macron’s party colleague, told Table.Briefings. In France, a number of players are circumventing the Egalim law by buying from purchasing centers in other EU countries. An EU-wide regulation would make this impossible, according to Canfin.

EU Commission wants to better enforce rules

The EU Commission is also looking at the problem. In a non-binding paper on strengthening farmers in the supply chain, which is available to Table.Briefings, it aims to improve cross-border enforcement of the rules on unfair trading practices as a short-term measure. It wants to achieve this through a legislative proposal that would supplement the UTP Directive and strengthen cooperation between national authorities.

It is unlikely to propose a reform of the UTP Directive itself until next year at the earliest. This is because the current public survey on the law will first be followed by an evaluation report in April and further steps towards a dialog with associations over the course of the year.

Stricter rules for binding contracts

In the short term, the Commission is also considering changes to the EU rules on contracts between farmers and traders. For example, stricter regulations are on the table to make contracts binding in more cases. The fact that contracts that stipulate delivery volumes and prices are negotiated in advance is not a matter of course on the dairy market, for example.

It also wants to set up an observatory to monitor price trends in the sector. This should make pricing more transparent.

FDP undermines EU renaturation law

The FDP is once again opposing an EU proposal in the Berlin coalition shortly before the final vote: The house of Federal Minister for Financial Affairs Christian Lindner informed the other ministries involved on Monday that it does not want to support the law to restore nature, as Table.Briefings learned from government circles. Next Monday, the Environment Council is due to take a final vote on the law; if Germany abstains, the necessary majority is unlikely to be achieved.

The project is highly controversial in both the Council and the European Parliament due to the restrictions for farmers. Several member states, including Italy, Poland and the Netherlands, have already indicated that they do not want to approve the negotiated legal text.

German government needs more time

The EU ambassadors are to discuss the Nature Restoration Law (NRL) on Wednesday before the environment ministers vote. Due to Lindner’s late decision, the German government had to ask the Belgian Council Presidency yesterday to allow more time to indicate its own voting behavior. Federal Minister for the Environment Steffi Lemke (Greens) is in favor of the law.

The vote in the Council is the final hurdle for the law. The European Parliament approved the text at the end of February. The law aims to restore at least 20 percent of land and 20 percent of sea areas in the EU by 2030. tho

CBAM: Experts call for reforming CO2 border tax

In the study “Watts Next: Securing Europe’s Energy and Competitiveness”, experts led by Karen Pittel from the Ifo Institute argue that the European Carbon Border Adjustment Mechanism (CBAM) has several deficiencies and should be replaced by a climate club. This club should include the G7 or the G20 and coordinate the regulation of emissions-intensive industries.

Currently, the CBAM only applies to parts of the industrial value chain. Moreover, non-European producers can easily deliver more emissions-intensive products to non-EU countries, resulting in no overall climate benefit. If a climate club is not established, the authors suggest reforming the CBAM. The pricing should be based on the average emissions along the entire value chain.

Critique of national climate action contracts

The experts also criticize national climate action contracts, which are intended to partially subsidize additional costs for more climate-friendly production methods. “The massive introduction of such systems at the national level would lead to unequal support and unequal protection of national industries in the European internal market,” write the scientists.

Just a week ago, German Minister for Economic Affairs Robert Habeck initiated the first round of tenders for climate action contracts worth four billion euros. ber

Commission’s CAP loosening measures could be adopted in a fast-track procedure

The legislative proposal for a relaxation of the Common Agricultural Policy (CAP), which the European Commission presented at short notice on Friday, also wants to be adopted quickly by Parliament and the Member States. Adoption before the European elections at the beginning of June is possible. Time is short, but the political will is strong, as easing the burden on farmers is an important election campaign issue.

Well-informed circles report that the EU Committee on Agriculture is to decide on an urgency procedure today, Tuesday. This would allow the dossier to be forwarded directly to the plenary for a vote.

Support in the EU Council is considered certain

In order for the proposal to be adopted before the EU elections, the Parliament would have to finally approve it in its last plenary session at the end of April at the latest. Another prerequisite is that neither the Council nor Parliament make any major changes. The Belgian Council Presidency is aiming for adoption without any changes, as it explained at an internal meeting on Monday. The EU agriculture ministers want to discuss this at their next meeting on March 26.

Support from the majority of countries is to be expected, as they had called for many of the easing measures themselves. The French Ministry of Agriculture, among others, welcomed the proposal. Minister Cem Özdemir (Greens), on the other hand, criticized the “lowering of environmental standards“. He wants to campaign for adjustments to the draft law and maintain the current level of ambition in environmental protection, but is unlikely to find many allies.

Özdemir and environmental associations criticize lack of impact assessment

The Commission had drawn up the proposal in a fast-track procedure in response to the farmers’ protests. It refrained from carrying out a study on the consequences of the planned easing of restrictions for environmental protection and economic efficiency and from involving associations, although EU procedural standards normally require this. Commission circles justify this with an “emergency situation” and refer to the coronavirus pandemic and the war in Ukraine. When asked by journalists on Friday, a senior official did not answer why the emergency situation was acute at the moment. The lack of an impact assessment has been criticized by environmental associations and Özdemir.

Among other things, the Commission proposes relaxing several GAEC standards. Compulsory fallow land under GAEC 8 is to be completely abolished by 2027. Instead, however, the member states must offer a corresponding eco-regulation – as an incentive rather than an obligation, according to the justification. EU countries are also to be given the option of allowing crop diversity under GAEC 7 instead of prescribing crop rotation. In addition, the EU member states are to determine for themselves in the future the period during which ground cover is mandatory (GAEC 6).

DBV welcomes the abolition of mandatory fallow land

The latter makes sense due to varying vegetation periods, says Laura Henningson, agrobiodiversity officer at NABU. However, she criticizes the relaxation of GAEC 7 and 8: Reducing bureaucracy makes sense in principle, but not by reducing environmental standards. If eco-regulations were used instead of mandatory rules, at least a significantly higher budget would be needed. However, the Commission does not envisage this.

DBV Secretary General Bernhard Krüsken sees things differently. He welcomes the “selective relief” in GAEC 8, but at the same time calls for a “continuous political dialog on further relief”, he tells Table.Briefings – especially with regard to environment-related funding. jd

EU foreign ministers initiate sanctions against Israeli settlers

The EU wants to impose sanctions against extremist Israeli settlers in the West Bank for the first time. Initially, entry bans and asset freezes are planned for a small, single-digit number of settlers, according to a meeting of EU foreign ministers in Brussels on Monday. The list is ready, but the formal decision is still missing, said EU foreign affairs representative Josep Borrell.

With the sanctions, the EU is following the USA. The punitive measures are intended to prevent Israeli settlers from illegally appropriating Palestinian territories and thus making the envisaged two-state solution impossible. The EU also wants to punish violent attacks on Palestinians. The actions of the radical settlers violate international law, said Minister Baerbock in Brussels.

Association agreement with Israel will not be suspended for the time being

The political agreement that was now reached was preceded by weeks of tug-of-war. Hungary in particular had reservations but gave up its resistance in the end. In return, there are to be new sanctions against the Islamist terrorist organization Hamas. Most recently, the EU sanctioned two suspected masterminds of the Hamas massacre in Israel on Oct. 7.

There was no agreement on the question of whether the EU should also increase pressure on Israel in the Gaza war. Borrell is in favor of this. He put a debate on the EU association agreement with Jerusalem on the agenda at short notice. Spain and Ireland want to partially suspend this agreement in order to force Israel to show moderation in Gaza. Baerbock, however, firmly rejected this.

The Green politician said that efforts to achieve an urgently needed humanitarian ceasefire in Gaza require round-the-clock channels of communication. She therefore believes that anything that makes talks more difficult is wrong in the current situation. In the end, the Council spoke out in favor of seeking talks with Israel’s foreign minister. The Association Agreement will therefore not be suspended for the time being.

Sanctions in response to the death of Alexei Navalny

The EU foreign ministers also discussed Russia and Ukraine. In response to the death of Kremlin critic Alexei Navalny in a Russian prison camp, the EU wants to impose sanctions against 30 individuals and organizations. In addition, the existing EU sanctions instrument for punishing serious human rights violations is to be renamed after Navalny.

With regard to Ukraine, the EU ministers have given the final green light for the new “Ukraine Assistance Fund”, which will be created within the European Peace Facility (EPF). It will initially be endowed with €5 billion and will be used to purchase weapons and ammunition. Germany and France had previously settled a months-long dispute over the EPF. ebo

Lithuania: Change of minister could slow down German brigade

While the reasons for the resignation of Lithuanian Defense Minister Arvydas Anušauskas are still not exactly known, the outgoing minister warned of delays in the deployment of the German brigade in Lithuania. The coming months would be “critical” for the project, said Anušauskas. He emphasized that the change of minister could “delay the arrival of the brigade for some time”. It initially remained unclear to what extent the statement was politically motivated.

The 60-year-old submitted his resignation last week at the request of the Prime Minister and his party colleague Ingrida Šimonytė. Šimonytė had given the reason that “more and faster” work needed to be done for Lithuania’s security. Above all, the Minister of Defense must do more to increase the defense budget. The Prime Minister also complained that Anušauskas had not been active enough in the plans to introduce compulsory military service.

Lithuania to increase its defense budget to 3% of GDP

Anušauskas had stated that the calls for his resignation came as a surprise to him and had fueled the debate about the background by referring to his anti-corruption measures. The chairman of the Lithuanian defense committee, Laurynas Kasčiūnas, also a party colleague, is considered a likely successor. A meeting between Kasčiūnas and President Nausėda is planned for Wednesday.

The Baltic state borders the Russian exclave of Kaliningrad and Russia’s ally Belarus. The country has therefore increased its military spending since the Russian invasion of Ukraine two years ago and is continuing to arm its army. On Monday, the government also presented a plan to increase the budget from the current 2.5 percent of GDP to 3 percent.

Germany wants to station up to 5,000 members of the German armed forces in Lithuania by 2027 in order to strengthen NATO’s eastern flank. The financing of the project has repeatedly caused disagreements. The preliminary command, consisting of eight to 15 people, is to be deployed to Lithuania on April 8. A deployment team is also to follow this year. wp

EU resumes free trade negotiations with the Philippines

The European Union and the Philippines will resume negotiations on a free trade agreement (FTA). The agreement is to include “ambitious market access for goods, services, investment and government procurement“, the EU Commission announced on Monday. In addition, digital trade and trade in raw materials and energy are to be simplified.

Closer cooperation with Indo-Pacific countries is part of Brussels’ and Germany’s China strategy. The goal is to become more independent of China. Last week, German Chancellor Olaf Scholz met with Philippine President Ferdinand Marcos Jr. in Berlin, among others.

In light of current opposition to free trade agreements in Europe, Commission Vice-President Valdis Dombrovskis emphasized the EU’s high sustainability standards. However, Dombrovskis expressed reservations about mirror clauses, such as those demanded by the French government in trade agreements, especially for agricultural products.

Concerns about human rights under President Duterte

The Philippines’ main concern is to secure the preferential market access it currently enjoys as a low-income country under the EU’s Generalized System of Preferences (GSP+). As the Philippines will probably soon cross the threshold to become a middle-income country, it wants to secure the low tariffs through a free trade agreement before it drops out of the GSP.

According to the EU Commission, bilateral goods trade between the EU and the Southeast Asian country was worth more than €18.4 billion in 2022 and trade in services €4.7 billion in 2021. The EU and the Philippines entered into negotiations on a free trade agreement in 2015. Due to concerns about human rights violations under President Duterte, the EU shelved the talks in 2017. The first round of new negotiations is expected to take place this year. ari/jaa

Ex-Commissioner Gabriel receives government mandate in Bulgaria

The former Bulgarian EU Commissioner and previous deputy head of government Mariya Gabriel has been tasked with forming a new government. President Rumen Radev said in Sofia on Monday that Gabriel now has seven days.

The previous pro-Western government of Prime Minister Nikolai Denkov resigned as planned two weeks ago. This is to enable a rotation of the office of Prime Minister agreed between the government partners in 2023.

Agreement on support for Ukraine

The 44-year-old had been nominated for the post of Prime Minister by the center-right Gerb party. According to the “gentlemen’s agreement” between the two rival blocs GERB-SDS and PP-DB, the previous head of government Nikolai Denkov is now to become Deputy Prime Minister.

According to media reports, ministerial quotas, personal details and the signing of a joint document are points of conflict in the new government talks between the political arch-enemies. However, all sides agree on continued consistent support for Ukraine.

If a new pro-Western government is successfully formed, a sixth parliamentary election within three years would be avoided in the EU country. dpa

Bruno Le Maire’s writing frenzy as a strategy

The French Minister of the Economy, the Germanophile Bruno Le Maire, traveled to Berlin yesterday to visit his German counterpart Christian Lindner. Today he is speaking at the “Europe 2024” conference. But before he flew to the German capital, he presented his new book to the French press, which will be published in Paris tomorrow.

“La voie française” (“The French Way”) is “a profession of faith” and an “alarm call to the 27 countries of the European Union”, Le Maire summarized – very modestly. In the book, he describes the economic and social state of the country and proposes reform approaches. It is the sixth book that Bruno Le Maire has published since he became Minister of Economic Affairs in 2017. In the corridors of government in Paris, people are a little surprised that the minister finds so much time to write.

But we can assume that Le Maire is pursuing a strategy with his books. French ministers are often characterized above all by their loyalty to the president. If they want to be recognized as individuals, they have to fight for their visibility.

Le Maire’s advantage over Macron

Writing a book allows Le Maire to present himself as an intellectual mind. It helps him to step out of Emmanuel Macron’s shadow. In other words, Le Maire can work on his presidential stature.

In France, books by politicians have a long and significant history, such as “Mémoires de Guerre” by Charles de Gaulle. President Macron has repeatedly referred to his missed vocation as a writer and at the same time made clear his fondness for literature. For his official portrait photo, he personally put important literary works in the right light, such as “Les Nourritures terrestres” by André Gide and the same memoirs by de Gaulle.

Mais voilà. A president who writes would be suspected of not taking his job seriously enough and isolating himself from the population – for him, the aura of the man of letters is no bonus. The situation is different for Bruno Le Maire, who understood this very well… and who is probably thinking about the end of his boss Macron’s second and final term in office. Claire Stam

EUROPE.TABLE EDITORIAL OFFICE

Till
Hoppe

Sarah
Schaefer

Lukas
Knigge

Corinna
Visser

Markus
Grabitz

Alina
Leimbach

Eric
Bonse

Manuel
Berkel

Stephan
Israel

Claire
Stam

János
Allenbach-Ammann

Dear reader,

Friedrich August von Hayek is not exactly the body and soul economist of the social democrats. In his work “The Road to Serfdom”, the Austrian thinker declared socialism to be incompatible with democracy and individual freedom. Even a social market economy, Hayek argued at the time, was no longer a market economy. Today, Hayek would be described as a neoliberal.

And yet the Social Democrat Olaf Scholz is appearing today at the Friedrich August von Hayek Foundation, of all places, to mark the publication of “The Road to Serfdom” 80 years ago. After a speech on economic policy, the Federal Chancellor will be in discussion with Estonian Prime Minister Kaja Kallas, a liberal, at the Hotel de Rome in Berlin.

FDP leader Christian Lindner will then make an appearance there, before old-school regulatory politicians such as Ottmar Issing have their say in the afternoon. It was Jens Weidmann, Chairman of the Board of Trustees of the Hayek Foundation, who was able to lure the Chancellor into this ordoliberal nest. Scholz appreciates the former advisor to his predecessor Angela Merkel.

Regulatory policy or its absence is also the topic of an event organized by Table.Briefings and the European Movement Germany this morning. In our series “Top Candidates in Conversation”, this time we are talking to Green candidate Terry Reintke about the economic consequences of the Green Deal. Her discussion partner is Henning Vöpel, Director of the Center for European Politics and Chairman of the Stiftung Ordnungspolitik. It starts at 8:30 a.m. You can still register here.

We wish you a successful day!

Your
Till Hoppe

Does the EU need a Defense Commissioner?

By

Stephan Israel

Ursula von der Leyen has made up her mind. If she is given a second term as Commission President, she wants to create a new post in her college as Commissioner for Defense. The European People’s Party has also prominently included the demand for the prestigious job in its election manifesto. However, the response outside of her own party family is mixed, and there are also reservations in some member states.

Von der Leyen justifies her initiative with Russia’s war of aggression against Ukraine and the challenge this poses for Europe. The issue of Europe’s defense and the wars in the neighborhood are likely to dominate the election campaign, with the EPP’s lead candidate taking up the topic prominently. However, the Commission President has not yet specified the exact scope of her portfolio, which may have led to misunderstandings.

More than just an EU Commissioner for defense industry

MEP Michael Gahler (CDU), foreign policy spokesman for the EPP group, naturally supports his party colleague’s plan and advocates the broadest possible range of responsibilities. The portfolio should not be limited to a pure EU Commissioner for the defense industry, but rather a Commissioner for the Defense Union is needed.

The future incumbent must also be able to demand the realization of the internal market for defense equipment, which has been repeatedly undermined by the member states in recent years with reference to national security. According to Gahler, the area of military mobility should also be part of the remit of a Commissioner for Defense. The same applies to the Defense Fund, which was created to promote cooperative research and investment.

“It is crucial”, says Gahler, “that the Commissioner bundles the existing competencies of the Commission on the one hand, but also builds a bridge to the instruments and initiatives of the member states, in particular PESCO, in order to effectively focus joint efforts on strengthening European defense capabilities.” Against this backdrop, Gahler also hopes that the Security and Defense Subcommittee (SEDE) in the new Parliament will be upgraded to a Committee on Defense, which could reflect the competencies of the Commissioner for Defense.

‘Massive security risk’ for Europe

Hannah Neumann (Greens), on the other hand, is skeptical. According to the MEP, who is also a member of the SEDE subcommittee, the discussion about the post of a defense commissioner is distracting from the actual problems. Europe must produce and purchase more together and ensure that deliveries reach Ukraine first and not Qatar or Saudi Arabia, for example, simply because they ordered first.

All of this is already possible today, but the member states often lack the will. They must finally understand that going it alone represents a “massive security risk” for Europe. Only if there was a rethink in the capitals would it make sense to set up a Defense Commissioner. Otherwise, the demand would be nothing more than an election campaign maneuver.

Ursula von der Leyen is good at “declaiming headlines”, says Social Democrat Udo Bullmann. A headline is not yet a policy, but like a bad check. The Commission President must clearly state how the new figure can be made capable of acting. There is no point in compensating for the fragmentation of the arms industry with the fragmentation of responsibilities in the EU Commission.

There are neither sufficient budgetary resources for the post, nor are the member states prepared to transfer sovereignty to Brussels or create sufficient clout with Eurobonds, for example. Udo Bullmann argues “pragmatically” in favor of strengthening the post of High Representative instead.

Discussion about more money foreseeable

The goal is not a European defense minister, emphasizes Eric Maurice from the European Policy Centre (EPC). However, the EU could underline the importance of this policy area in the next legislative period with a super commissioner for the defense industry. The portfolio of Internal Market Commissioner Thierry Breton is already very broad, so the area of the defense industry could be easily separated. In addition, there will be the task of implementing the new EU defense industry program (EDIP) and the overarching strategy.

Beyond this, however, there are currently hardly any signs that the member states are prepared to relinquish additional powers. However, the discussion about more money will come, such as a fund of €100 billion, as Breton has called for.

Although the Commission President can determine the composition of the portfolios on her own authority, she cannot ignore the response from the Member States and Parliament. There are also doubts in some capitals as to whether the initiative is more than just an election campaign slogan.

Berlin and Paris react cautiously

More skeptical statements are coming from Berlin. There will not be a Commissioner for War and Peace. And with Josep Borrell, there is already someone who can chair the meetings of the defense ministers. The idea of additional funds is also not realistic. Federal Defence Minister Boris Pistorius (SPD) also pointed out that defense in the EU was organized on an intergovernmental basis. However, he could imagine a commissioner for the armaments industry who would combine existing competencies within the EU Commission, but not create any new responsibilities.

Initial reactions in Paris are also ambivalent. The post should not be associated with a transfer of sovereignty.

Frenchman Thierry Breton is considered a possible candidate for the new post in Brussels, should Emmanuel Macron send him to Brussels for a second term. The names of Polish Foreign Minister Radosław Sikorski and Estonian Prime Minister Kaja Kallas have also been mentioned.

The Netherlands could send outgoing Defense Minister Kajsa Ollongren, who has publicly campaigned for the separate post of Defense Commissioner, into the race. The Czech Jiří Šedivý, currently Secretary General of the European Defense Agency, has also signaled his interest. The post is already attracting a lot of interest before it has even been created.

Macron’s minimum price for farmers brings more questions than answers

By

Claire Stam

It was one of the promises Macron made to protesting farmers at the Salon d’Agriculture, the country’s largest agricultural trade fair, at the end of February: a “minimum price” would apply to agricultural products in the future in order to guarantee farmers a fair income. According to Agriculture Minister Marc Fesneau, this should be based on production costs.

However, it is still unclear how exactly this will be defined. After all, production costs also vary within a sector depending on the size of the farm, location or type of farming. Agricultural associations are correspondingly unimpressed – they are calling for clarity.

Scope and calculation unclear

“For a dairy farmer who keeps his animals in the mountains, the costs are not the same as for another farmer in the flat countryside. How do we decide which figure applies?”, asks Sébastien Poutreau, grain farmer and board member of the French farmers’ association FNSEA, in the newspaper “Le Figaro“. “You will have to explain to us what this minimum price is,” emphasizes Eric Thirouin, President of the Association of Wheat Producers, in the newspaper “Le Monde“.

It also remains unclear which agricultural products the minimum price should apply to. In Thirouin’s view, this would be difficult for cereals, for example. This is because cereal producers are – at their own request – exempt from many of the regulations on pricing and market power to which the new minimum price would apply. Instead, they are part of a liberalized market in which prices are set across Europe via trading venues such as Euronext.

Amendment planned for summer

The government in Paris has until the summer to clarify all of this. The minimum price should then become part of the third reform of Egalim, the French equivalent of the German Agricultural Organizations and Supply Chains Act (AgrarOLkG). Egalim currently sets a price range: minimum and maximum limits between which the selling price can fluctuate, theoretically taking into account producer prices.

However, this only applies to beef, pork and dairy products for the time being. Producers criticize the fact that they are not involved in the annual determination of price ranges and continue to complain about price pressure from traders. In addition, the French Court of Auditors criticized the lack of sanctions in February.

Macron calls for European equality

Nevertheless, Macron sees Egalim as a model for the EU and is calling for a European version of the law. To a certain extent, this already exists: the EU Unfair Trading Practices Directive (UTP) provides the framework for national laws such as Egalim or AgrarOLkG. However, it does not go far enough for Macron.

“The reason why Macron is calling for a European Egalim law is to take action against European shopping centers“, Pascal Canfin, MEP and Macron’s party colleague, told Table.Briefings. In France, a number of players are circumventing the Egalim law by buying from purchasing centers in other EU countries. An EU-wide regulation would make this impossible, according to Canfin.

EU Commission wants to better enforce rules

The EU Commission is also looking at the problem. In a non-binding paper on strengthening farmers in the supply chain, which is available to Table.Briefings, it aims to improve cross-border enforcement of the rules on unfair trading practices as a short-term measure. It wants to achieve this through a legislative proposal that would supplement the UTP Directive and strengthen cooperation between national authorities.

It is unlikely to propose a reform of the UTP Directive itself until next year at the earliest. This is because the current public survey on the law will first be followed by an evaluation report in April and further steps towards a dialog with associations over the course of the year.

Stricter rules for binding contracts

In the short term, the Commission is also considering changes to the EU rules on contracts between farmers and traders. For example, stricter regulations are on the table to make contracts binding in more cases. The fact that contracts that stipulate delivery volumes and prices are negotiated in advance is not a matter of course on the dairy market, for example.

It also wants to set up an observatory to monitor price trends in the sector. This should make pricing more transparent.

FDP undermines EU renaturation law

The FDP is once again opposing an EU proposal in the Berlin coalition shortly before the final vote: The house of Federal Minister for Financial Affairs Christian Lindner informed the other ministries involved on Monday that it does not want to support the law to restore nature, as Table.Briefings learned from government circles. Next Monday, the Environment Council is due to take a final vote on the law; if Germany abstains, the necessary majority is unlikely to be achieved.

The project is highly controversial in both the Council and the European Parliament due to the restrictions for farmers. Several member states, including Italy, Poland and the Netherlands, have already indicated that they do not want to approve the negotiated legal text.

German government needs more time

The EU ambassadors are to discuss the Nature Restoration Law (NRL) on Wednesday before the environment ministers vote. Due to Lindner’s late decision, the German government had to ask the Belgian Council Presidency yesterday to allow more time to indicate its own voting behavior. Federal Minister for the Environment Steffi Lemke (Greens) is in favor of the law.

The vote in the Council is the final hurdle for the law. The European Parliament approved the text at the end of February. The law aims to restore at least 20 percent of land and 20 percent of sea areas in the EU by 2030. tho

CBAM: Experts call for reforming CO2 border tax

In the study “Watts Next: Securing Europe’s Energy and Competitiveness”, experts led by Karen Pittel from the Ifo Institute argue that the European Carbon Border Adjustment Mechanism (CBAM) has several deficiencies and should be replaced by a climate club. This club should include the G7 or the G20 and coordinate the regulation of emissions-intensive industries.

Currently, the CBAM only applies to parts of the industrial value chain. Moreover, non-European producers can easily deliver more emissions-intensive products to non-EU countries, resulting in no overall climate benefit. If a climate club is not established, the authors suggest reforming the CBAM. The pricing should be based on the average emissions along the entire value chain.

Critique of national climate action contracts

The experts also criticize national climate action contracts, which are intended to partially subsidize additional costs for more climate-friendly production methods. “The massive introduction of such systems at the national level would lead to unequal support and unequal protection of national industries in the European internal market,” write the scientists.

Just a week ago, German Minister for Economic Affairs Robert Habeck initiated the first round of tenders for climate action contracts worth four billion euros. ber

Commission’s CAP loosening measures could be adopted in a fast-track procedure

The legislative proposal for a relaxation of the Common Agricultural Policy (CAP), which the European Commission presented at short notice on Friday, also wants to be adopted quickly by Parliament and the Member States. Adoption before the European elections at the beginning of June is possible. Time is short, but the political will is strong, as easing the burden on farmers is an important election campaign issue.

Well-informed circles report that the EU Committee on Agriculture is to decide on an urgency procedure today, Tuesday. This would allow the dossier to be forwarded directly to the plenary for a vote.

Support in the EU Council is considered certain

In order for the proposal to be adopted before the EU elections, the Parliament would have to finally approve it in its last plenary session at the end of April at the latest. Another prerequisite is that neither the Council nor Parliament make any major changes. The Belgian Council Presidency is aiming for adoption without any changes, as it explained at an internal meeting on Monday. The EU agriculture ministers want to discuss this at their next meeting on March 26.

Support from the majority of countries is to be expected, as they had called for many of the easing measures themselves. The French Ministry of Agriculture, among others, welcomed the proposal. Minister Cem Özdemir (Greens), on the other hand, criticized the “lowering of environmental standards“. He wants to campaign for adjustments to the draft law and maintain the current level of ambition in environmental protection, but is unlikely to find many allies.

Özdemir and environmental associations criticize lack of impact assessment

The Commission had drawn up the proposal in a fast-track procedure in response to the farmers’ protests. It refrained from carrying out a study on the consequences of the planned easing of restrictions for environmental protection and economic efficiency and from involving associations, although EU procedural standards normally require this. Commission circles justify this with an “emergency situation” and refer to the coronavirus pandemic and the war in Ukraine. When asked by journalists on Friday, a senior official did not answer why the emergency situation was acute at the moment. The lack of an impact assessment has been criticized by environmental associations and Özdemir.

Among other things, the Commission proposes relaxing several GAEC standards. Compulsory fallow land under GAEC 8 is to be completely abolished by 2027. Instead, however, the member states must offer a corresponding eco-regulation – as an incentive rather than an obligation, according to the justification. EU countries are also to be given the option of allowing crop diversity under GAEC 7 instead of prescribing crop rotation. In addition, the EU member states are to determine for themselves in the future the period during which ground cover is mandatory (GAEC 6).

DBV welcomes the abolition of mandatory fallow land

The latter makes sense due to varying vegetation periods, says Laura Henningson, agrobiodiversity officer at NABU. However, she criticizes the relaxation of GAEC 7 and 8: Reducing bureaucracy makes sense in principle, but not by reducing environmental standards. If eco-regulations were used instead of mandatory rules, at least a significantly higher budget would be needed. However, the Commission does not envisage this.

DBV Secretary General Bernhard Krüsken sees things differently. He welcomes the “selective relief” in GAEC 8, but at the same time calls for a “continuous political dialog on further relief”, he tells Table.Briefings – especially with regard to environment-related funding. jd

EU foreign ministers initiate sanctions against Israeli settlers

The EU wants to impose sanctions against extremist Israeli settlers in the West Bank for the first time. Initially, entry bans and asset freezes are planned for a small, single-digit number of settlers, according to a meeting of EU foreign ministers in Brussels on Monday. The list is ready, but the formal decision is still missing, said EU foreign affairs representative Josep Borrell.

With the sanctions, the EU is following the USA. The punitive measures are intended to prevent Israeli settlers from illegally appropriating Palestinian territories and thus making the envisaged two-state solution impossible. The EU also wants to punish violent attacks on Palestinians. The actions of the radical settlers violate international law, said Minister Baerbock in Brussels.

Association agreement with Israel will not be suspended for the time being

The political agreement that was now reached was preceded by weeks of tug-of-war. Hungary in particular had reservations but gave up its resistance in the end. In return, there are to be new sanctions against the Islamist terrorist organization Hamas. Most recently, the EU sanctioned two suspected masterminds of the Hamas massacre in Israel on Oct. 7.

There was no agreement on the question of whether the EU should also increase pressure on Israel in the Gaza war. Borrell is in favor of this. He put a debate on the EU association agreement with Jerusalem on the agenda at short notice. Spain and Ireland want to partially suspend this agreement in order to force Israel to show moderation in Gaza. Baerbock, however, firmly rejected this.

The Green politician said that efforts to achieve an urgently needed humanitarian ceasefire in Gaza require round-the-clock channels of communication. She therefore believes that anything that makes talks more difficult is wrong in the current situation. In the end, the Council spoke out in favor of seeking talks with Israel’s foreign minister. The Association Agreement will therefore not be suspended for the time being.

Sanctions in response to the death of Alexei Navalny

The EU foreign ministers also discussed Russia and Ukraine. In response to the death of Kremlin critic Alexei Navalny in a Russian prison camp, the EU wants to impose sanctions against 30 individuals and organizations. In addition, the existing EU sanctions instrument for punishing serious human rights violations is to be renamed after Navalny.

With regard to Ukraine, the EU ministers have given the final green light for the new “Ukraine Assistance Fund”, which will be created within the European Peace Facility (EPF). It will initially be endowed with €5 billion and will be used to purchase weapons and ammunition. Germany and France had previously settled a months-long dispute over the EPF. ebo

Lithuania: Change of minister could slow down German brigade

While the reasons for the resignation of Lithuanian Defense Minister Arvydas Anušauskas are still not exactly known, the outgoing minister warned of delays in the deployment of the German brigade in Lithuania. The coming months would be “critical” for the project, said Anušauskas. He emphasized that the change of minister could “delay the arrival of the brigade for some time”. It initially remained unclear to what extent the statement was politically motivated.

The 60-year-old submitted his resignation last week at the request of the Prime Minister and his party colleague Ingrida Šimonytė. Šimonytė had given the reason that “more and faster” work needed to be done for Lithuania’s security. Above all, the Minister of Defense must do more to increase the defense budget. The Prime Minister also complained that Anušauskas had not been active enough in the plans to introduce compulsory military service.

Lithuania to increase its defense budget to 3% of GDP

Anušauskas had stated that the calls for his resignation came as a surprise to him and had fueled the debate about the background by referring to his anti-corruption measures. The chairman of the Lithuanian defense committee, Laurynas Kasčiūnas, also a party colleague, is considered a likely successor. A meeting between Kasčiūnas and President Nausėda is planned for Wednesday.

The Baltic state borders the Russian exclave of Kaliningrad and Russia’s ally Belarus. The country has therefore increased its military spending since the Russian invasion of Ukraine two years ago and is continuing to arm its army. On Monday, the government also presented a plan to increase the budget from the current 2.5 percent of GDP to 3 percent.

Germany wants to station up to 5,000 members of the German armed forces in Lithuania by 2027 in order to strengthen NATO’s eastern flank. The financing of the project has repeatedly caused disagreements. The preliminary command, consisting of eight to 15 people, is to be deployed to Lithuania on April 8. A deployment team is also to follow this year. wp

EU resumes free trade negotiations with the Philippines

The European Union and the Philippines will resume negotiations on a free trade agreement (FTA). The agreement is to include “ambitious market access for goods, services, investment and government procurement“, the EU Commission announced on Monday. In addition, digital trade and trade in raw materials and energy are to be simplified.

Closer cooperation with Indo-Pacific countries is part of Brussels’ and Germany’s China strategy. The goal is to become more independent of China. Last week, German Chancellor Olaf Scholz met with Philippine President Ferdinand Marcos Jr. in Berlin, among others.

In light of current opposition to free trade agreements in Europe, Commission Vice-President Valdis Dombrovskis emphasized the EU’s high sustainability standards. However, Dombrovskis expressed reservations about mirror clauses, such as those demanded by the French government in trade agreements, especially for agricultural products.

Concerns about human rights under President Duterte

The Philippines’ main concern is to secure the preferential market access it currently enjoys as a low-income country under the EU’s Generalized System of Preferences (GSP+). As the Philippines will probably soon cross the threshold to become a middle-income country, it wants to secure the low tariffs through a free trade agreement before it drops out of the GSP.

According to the EU Commission, bilateral goods trade between the EU and the Southeast Asian country was worth more than €18.4 billion in 2022 and trade in services €4.7 billion in 2021. The EU and the Philippines entered into negotiations on a free trade agreement in 2015. Due to concerns about human rights violations under President Duterte, the EU shelved the talks in 2017. The first round of new negotiations is expected to take place this year. ari/jaa

Ex-Commissioner Gabriel receives government mandate in Bulgaria

The former Bulgarian EU Commissioner and previous deputy head of government Mariya Gabriel has been tasked with forming a new government. President Rumen Radev said in Sofia on Monday that Gabriel now has seven days.

The previous pro-Western government of Prime Minister Nikolai Denkov resigned as planned two weeks ago. This is to enable a rotation of the office of Prime Minister agreed between the government partners in 2023.

Agreement on support for Ukraine

The 44-year-old had been nominated for the post of Prime Minister by the center-right Gerb party. According to the “gentlemen’s agreement” between the two rival blocs GERB-SDS and PP-DB, the previous head of government Nikolai Denkov is now to become Deputy Prime Minister.

According to media reports, ministerial quotas, personal details and the signing of a joint document are points of conflict in the new government talks between the political arch-enemies. However, all sides agree on continued consistent support for Ukraine.

If a new pro-Western government is successfully formed, a sixth parliamentary election within three years would be avoided in the EU country. dpa

Bruno Le Maire’s writing frenzy as a strategy

The French Minister of the Economy, the Germanophile Bruno Le Maire, traveled to Berlin yesterday to visit his German counterpart Christian Lindner. Today he is speaking at the “Europe 2024” conference. But before he flew to the German capital, he presented his new book to the French press, which will be published in Paris tomorrow.

“La voie française” (“The French Way”) is “a profession of faith” and an “alarm call to the 27 countries of the European Union”, Le Maire summarized – very modestly. In the book, he describes the economic and social state of the country and proposes reform approaches. It is the sixth book that Bruno Le Maire has published since he became Minister of Economic Affairs in 2017. In the corridors of government in Paris, people are a little surprised that the minister finds so much time to write.

But we can assume that Le Maire is pursuing a strategy with his books. French ministers are often characterized above all by their loyalty to the president. If they want to be recognized as individuals, they have to fight for their visibility.

Le Maire’s advantage over Macron

Writing a book allows Le Maire to present himself as an intellectual mind. It helps him to step out of Emmanuel Macron’s shadow. In other words, Le Maire can work on his presidential stature.

In France, books by politicians have a long and significant history, such as “Mémoires de Guerre” by Charles de Gaulle. President Macron has repeatedly referred to his missed vocation as a writer and at the same time made clear his fondness for literature. For his official portrait photo, he personally put important literary works in the right light, such as “Les Nourritures terrestres” by André Gide and the same memoirs by de Gaulle.

Mais voilà. A president who writes would be suspected of not taking his job seriously enough and isolating himself from the population – for him, the aura of the man of letters is no bonus. The situation is different for Bruno Le Maire, who understood this very well… and who is probably thinking about the end of his boss Macron’s second and final term in office. Claire Stam

EUROPE.TABLE EDITORIAL OFFICE

Till
Hoppe

Sarah
Schaefer

Lukas
Knigge

Corinna
Visser

Markus
Grabitz

Alina
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Eric
Bonse

Manuel
Berkel

Stephan
Israel

Claire
Stam

János
Allenbach-Ammann

Feature

Does the EU need a Defense Commissioner?

More than just an EU Commissioner for defense industry

‘Massive security risk’ for Europe

Discussion about more money foreseeable

Berlin and Paris react cautiously

Macron’s minimum price for farmers brings more questions than answers

Scope and calculation unclear

Amendment planned for summer

Macron calls for European equality

EU Commission wants to better enforce rules

Stricter rules for binding contracts

Events

News

FDP undermines EU renaturation law

German government needs more time

CBAM: Experts call for reforming CO2 border tax

Critique of national climate action contracts

Commission’s CAP loosening measures could be adopted in a fast-track procedure

Support in the EU Council is considered certain

Özdemir and environmental associations criticize lack of impact assessment

DBV welcomes the abolition of mandatory fallow land

EU foreign ministers initiate sanctions against Israeli settlers

Association agreement with Israel will not be suspended for the time being

Sanctions in response to the death of Alexei Navalny

Lithuania: Change of minister could slow down German brigade

Lithuania to increase its defense budget to 3% of GDP

EU resumes free trade negotiations with the Philippines

Concerns about human rights under President Duterte

Ex-Commissioner Gabriel receives government mandate in Bulgaria

Agreement on support for Ukraine

Dessert

Bruno Le Maire’s writing frenzy as a strategy

Le Maire’s advantage over Macron

Europe.Table Editorial Team

EUROPE.TABLE EDITORIAL OFFICE

Feature

Does the EU need a Defense Commissioner?

More than just an EU Commissioner for defense industry

‘Massive security risk’ for Europe

Discussion about more money foreseeable

Berlin and Paris react cautiously

Macron’s minimum price for farmers brings more questions than answers

Scope and calculation unclear

Amendment planned for summer

Macron calls for European equality

EU Commission wants to better enforce rules

Stricter rules for binding contracts

Events

News

FDP undermines EU renaturation law

German government needs more time

CBAM: Experts call for reforming CO2 border tax

Critique of national climate action contracts

Commission’s CAP loosening measures could be adopted in a fast-track procedure

Support in the EU Council is considered certain

Özdemir and environmental associations criticize lack of impact assessment

DBV welcomes the abolition of mandatory fallow land

EU foreign ministers initiate sanctions against Israeli settlers

Association agreement with Israel will not be suspended for the time being

Sanctions in response to the death of Alexei Navalny

Lithuania: Change of minister could slow down German brigade

Lithuania to increase its defense budget to 3% of GDP

EU resumes free trade negotiations with the Philippines

Concerns about human rights under President Duterte

Ex-Commissioner Gabriel receives government mandate in Bulgaria

Agreement on support for Ukraine

Dessert

Bruno Le Maire’s writing frenzy as a strategy

Le Maire’s advantage over Macron

Europe.Table Editorial Team

EUROPE.TABLE EDITORIAL OFFICE

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