Table.Briefing: Europe

DSA + Chinese EVs + Vote of no confidence

Dear reader,

This week marks the EU Parliament’s Green Week, a period when MEPs engage in activities beyond the confines of the Parliament. They visit their constituencies and join official delegations abroad to foster the Parliament’s international ties. During these weeks, the spotlight often shifts from the Parliament to the Commission, although there is still noteworthy news emanating from the Parliament.

Today, we have a significant update from the Green MEP Piernicola Pedicini, as reported by Markus Grabitz. Pedicini is leading the charge to initiate a vote of no confidence against Commission President Ursula von der Leyen due to her handling of the EU’s policy towards Israel. Pedicini, joined by other MEPs, accuses von der Leyen of overstepping her authority by failing to align her Israel policy with the member states.

Meanwhile, von der Leyen is currently navigating the Balkans, having recently delivered a stern message to Serbia and Kosovo while in Belgrade. She called upon both nations to intensify their efforts to normalize relations, underscoring the importance of regional stability.

Transitioning from this context, I’d like to highlight the Analysis of my colleague, Falk Steiner. In his report, Steiner meticulously examines the ongoing disputes related to competencies in the implementation of the Digital Services Act (DSA) in Germany. Observing the situation, one might feel compelled to remind the decision-makers in Berlin of the critical and far more pressing issues at hand, particularly in the realm of digitization.

Your
Corinna Visser
Image of Corinna  Visser

Feature

DSA: competence wrangling at an inopportune time

If there is one political constant in Germany, it is the dispute over competencies. It is annoying when this blocks an important legislative project, such as the current “Digitale-Dienste-Gesetz” (DDG, lit. “digital services law”). All during a time when effective digital regulation seems urgently needed in the context of the disputes between Israel and Hamas.

The DDG is actually supposed to regulate the national portions of the Digital Services Act (DSA). But that could take even longer. The number of agencies whose responsibilities are to be taken into account is almost endless.

Central contact for decentralized implementation

Even before the DSA was adopted at the European level, it was clear that there would be a dispute over the division of responsibilities. Because insofar as the DSA deals with media regulation, it is actually up to the federal states under the German constitution. They have outsourced media supervision to the state media authorities – but there is no exact federal counterpart.

Which is why the Federal Ministry of Digital Affairs decided to appoint another authority involved in digital regulation in other areas as the Digital Services Coordinator (DSC) for the Federal Republic: a position to be created specifically at the Federal Network Agency in Bonn.

In the future, this is to ensure that both the EU Commission and the authorities of other member states have a central telephone number they can call in cross-border cases. The state media authorities were less than enthusiastic about what was happening – above all the director of the largest state media authority, Tobias Schmid, in NRW.

BzKJ as ‘primus inter pares’?

During the deliberations in the federal government, it recently became apparent that the discussion “BNetzA or LMA” was still undercomplex: The Federal Ministry for Family Affairs has been advocating for weeks that the Federal Agency for the Protection of Children and Young People in the Media (BzKJ) should play an essential role. It should preside over the area of content supervision as a “primus inter pares”, the Federal Family Ministry demands.

Unlike the state media authorities, the BzKJ is a classic youth protection authority. Most readers will know it by its former names: Federal Review Board for Publications Harmful to Young People (BPjS) or Federal Review Board for Media Harmful to Young People (BPjM). As such, it was responsible for numerous indexing of records, CDs, computer games and other content in accordance with the Federal Youth Protection Act, which in some cases strongly divided the public. But even hard-nosed negotiators in Berlin don’t understand why the BPjM is now to be put in charge of the state media authorities.

State media authorities seek allies

So the state media authorities are currently seeking allies for good reason. Last week, for example, the media institutions announced that, in anticipation of DSA trials, they had already successfully taken action against hate on the net together with the Central Reporting Office for Punishable Content on the Internet (ZMI) – in the context of the events in Israel.

The director of the NRW State Media Authority made it clear who he considers to be the best content supervisor: “Clear work processes and many years of experience are crucial. It is not at all surprising that we have managed to react quickly to the current situation in the community of media institutions“, said Tobias Schmid. Who this was intended to address is obvious.

However, the disputes over competencies for content regulation are not enough: the DSA also contains standards that are more likely to be assigned to the area of data protection. The Federal Data Protection Commissioner, Ulrich Kelber, is supposed to be responsible for these – after all, he has a certain amount of practice coordinating with the state data protection supervisory authorities responsible for most private companies.

EU Commission cooperates with BNetzA and LMAs

Meanwhile, the EU Commission is hoping that Germany will soon be ready for work. For now, the Federal Network Agency has been named by the Federal Ministry of Digital Affairs for the informal body proposed by the European Commission. For content enforcement, the EU Commission has approached the state media authorities. What will become of the offices responsible for the Network Enforcement Act (NetzDG) at the Federal Office of Justice remains open for the time being.

Just like the question of whether the Digital Services Act will even be in force in time for Feb. 17, 2024. A cabinet referral planned for last week had to disappear from the agenda again. When the Bundestag and Bundesrat may exercise their responsibilities in the DDG legislative process remains unclear.

France excludes Chinese EVs from car subsidy scheme

France plans to deliberately disadvantage Chinese manufacturers when subsidizing EVs. While most European countries subsidize the purchase of EVs irrespective of additional environmental criteria, the government in Paris will add other criteria:

  • the shipping distance,
  • and the energy mix in the country of origin.

To this end, the “Bonus écologique”, the French environmental premium, has been revised. “We will stop subsidizing electric vehicles with a bad carbon footprint,” emphasized French Economy Minister Bruno Le Maire at the presentation of the measures in September 2023. “French taxpayers’ money should not be used to finance vehicles 70 percent of which come from China“, Le Maire stated with conviction.

Environmental score rules out production in China

To be eligible for the environmental bonus, EVs must score a minimum number of environmental points starting in 2024. These are determined by the greenhouse gas emissions in the supply chain, i.e., the carbon footprint of the materials used, as well as the emissions during production and shipping of a car. Only a “score environmental” of 60 out of 100 possible points qualifies for the environmental bonus of up to €7,000.

Above all, two criteria of the revised environmental bonus are expected to exclude Chinese-manufactured EVs from the subsidy. Firstly, the carbon emission factor of the energy mix in the country of origin is considered in the rating. China scores very poorly here because it generates much of its electricity from coal. Added to this are the carbon emissions generated during shipping from production to the distribution site in France.

The French energy agency ADEME is responsible for calculating the environmental points. Car manufacturers must submit all relevant data to ADEME as of October 2023. A list of the EVs that will still be eligible for subsidies will be published on 15 December 2023.

It is already known that they must not only meet the new criteria for the environmental bonus. Their price cannot exceed 47,000 euros and their weight must not exceed 2.4 tons. This means German-made models such as Volkswagen’s ID.3 or the 2024 Mini Countryman E should have a good chance.

Protectionism in the carbon-focused subsidy scheme

Germany’s IG Metall trade union, which has traditionally enjoyed a strong position in the German automotive industry, believes the French government’s approach is appropriate. “The carbon footprint of production, energy mix and transport should be taken into account both in the carbon pricing of imports and in the design of subsidies and instruments,” it told Table.Media. It is no anti-China tariff, but a carbon-oriented subsidy system that promotes the development of regional and local value chains.

The German Association of the Automotive Industry (VDA) believes the new French regulations go too far. While promoting the switch to alternative drive systems makes sense in principle, the same conditions must apply to all, said a VDA spokeswoman. “Protectionism is not the right way. Europe must stand for the value of international, free and fair trade and open markets.” But Juergen Matthes, Head of International Economic Policy, Financial and Real Estate Markets at the German Economic Institute (IW), is no longer sure about that. Upon a question from Table.Medias, he said that typically such an approach “would be branded as sheer protectionism.”

Matthes: China and the USA subsidize their economy

But it’s not that simple because the other big players don’t play by the rules either. “The United States promotes EVs with similar regulations. And China has also heavily subsidized the production side of EVs,” Matthes said.

The EU Commission now also sees China’s subsidies as a problem. According to its calculations, Chinese EV imports are sold on average 20 percent below the price of European cars in the EU. Their market share could increase from 8 to 15 percent in the next few years.

EU investigates Chinese subsidies

Commission President Ursula von der Leyen attributes this to unfair practices. “Their price is kept artificially low by huge state subsidies. This is distorting our market,” she criticized in mid-September before the EU Parliament in Strasbourg.

Consequently, the Commission initiated a formal anti-subsidy proceeding against China on 4 October 2023. The declared aim is to protect companies producing in the EU. “Wherever we find evidence that they are being hampered by market distortions and unfair competition, we will act decisively,” von der Leyen stressed.

While France has lobbied extensively for this step, Germany has been rather reluctant for fear of countermeasures. Moreover, it is currently unclear to what extent non-Chinese car manufacturers such as BMW or VW, which manufacture EVs in China for the global market, benefit from such Chinese subsidies.

EV for a hundred euros a month

In addition to the environmental bonus, a second subsidy instrument will also exclude vehicles manufactured in China in the future. Only vehicles manufactured in the EU are explicitly eligible for the newly created “social leasing” scheme. The aim of social leasing is the democratization of electromobility, something that has been much discussed in France.

It is intended to enable households with an annual income of less than 20,850 euros to lease a new EV for 100 euros a month. This is one of President Emmanuel Macron’s election campaign promises from last year.

Social subsidy primarily for Citroën and Renault

For 2024, the government anticipates approximately 20,000 social leasing contracts. In the following years, the number of subsidized lease cars is set to increase to 100,000 per year. A budget of 50 million euros has been earmarked for this. With this funding, the French government covers the initial down payment. However, this down payment must not exceed 16 percent of the vehicle price or 5,000 euros. This is why small, fuel-efficient vehicles are the primary beneficiaries of the program. The Citroën ë-C3, the Renault Twingo E-Tech and the Fiat 500e are some of the vehicles under consideration.

The subsidy regulations will be published in November. The application process will also start then. As with the environmental bonus, a list of eligible models is expected in mid-December.

No social leasing for German EVs

It is unlikely that a German EV will qualify for social leasing after VW announced the end of the e-Up a few weeks ago. Instead, high-margin SUVs and luxury cars dominate the product range of German carmakers.

IG Metall sees this as a mistake. From their perspective, “there needs to be a quick addition to the model policy toward affordable vehicles.” IG Metall believes this will determine the future viability and market position of companies.

  • China
  • E-cars
  • Electromobility
  • Transport turnaround

News

Von der Leyen’s Israel policy: MEPs want vote of no confidence

Green MEP Piernicola Pedicini wants to introduce a vote of no confidence in the European Parliament against Commission President Ursula von der Leyen because of her Israel policy. Pedicini and other MEPs are canvassing for supporters among the Greens, the Left, and the Social Democrats. The text, which Table.Media has obtained, accuses von der Leyen of paying a solidarity visit to Israel after the Oct. 7 terrorist attack without first consulting the member states.

Von der Leyen’s attitude toward Israel was also criticized: she had shown Israel “unreserved solidarity on behalf of the entire EU”. At the same time, the “inappropriate reaction of the government of Israel against two to three million Palestinian civilians trapped in the Gaza Strip is regarded by many observers as a war crime”. The Commission President was showing the Commission’s “unconditional support for one of two parties” and thus did not represent the “attitude of the EU as a whole”.

The text stresses that von der Leyen is not responsible for foreign policy: “Foreign policy positions are determined by the European Council and the Council of Foreign Ministers because EU foreign policy is an intergovernmental competence.” In addition, the text points out that Foreign Affairs Commissioner Josep Borrell represents a different position than von der Leyen. His position is that international law and international humanitarian law limit Israel’s right to self-defense. mgr

Hydrogen bank: Researchers warn against too many subsidies

The promotion of green hydrogen by the European Hydrogen Bank threatens to waste public money, experts say. There is a risk of over-subsidization of large producers and promotion in regions with poor conditions for renewable energy, according to a statement by the Center for European Policy (cep) on Tuesday.

On November 23, the EU Commission launches the first tender of the Hydrogen Bank. Initially, €800 million is available, from which producers can receive a fixed premium for each kilogram of hydrogen. For its current study, cep examined regional production costs in the EU. According to the study, in most regions, a subsidy at the fixed maximum level would be inappropriately high.

Commission should lower subsidy rate

The maximum subsidy rate should therefore be lowered significantly, they said. “At the same time, the restrictions on participation should be relaxed in order to strengthen competition. This applies in particular to the minimum size of electrolysis capacities, so that small producers can also benefit from the subsidy“, the paper adds.

However, German producers in particular could benefit from the current auction design. “It could be that projects in the south of Germany are promoted, although they are not the ideal locations in a European comparison”, study author André Wolf told Table.Media.

Disadvantage for industry compared to other sectors

Another grievance, according to the study, would be that the hydrogen bank could in the future steer the scarce energy carrier away from industrial applications into sectors where more efficient technologies are available. The background to this is a strict ban on double subsidies.

If, for example, a chemical or steel company has its production conversion to hydrogen subsidized with a so-called CCfD, it would no longer be allowed to use hydrogen that has already benefited from the hydrogen bank. “I therefore advocate that the criteria to avoid double subsidies should then be made somewhat softer”, Wolf said. One possibility, he said, is to automatically adjust the subsidy to the future development of the hydrogen price. ber

  • Grüner Wasserstoff

Von der Leyen finds clear words for Serbia and Kosovo

Both Serbia and Kosovo would have to step up efforts to normalize relations after the recent upsurge in violence if they want to join the European Union, Commission President Ursula von der Leyen said on the second day of her Balkans trip.

Von der Leyen’s visit to Belgrade comes just days after the heads of state and government of France, Germany, and Italy called on Serbia to achieve “de facto recognition” of Kosovo.

Parties involved to go to court

Von der Leyen said those involved in a clash between armed Serbs and Kosovo police on Sept. 24 “must be held accountable and brought to justice. This is absolutely critical for both [Kosovo and Serbia] to engage and move down the path of normalization”, she said at a press conference after meeting with Serbia’s President Aleksandar Vučić.

Belgrade had previously agreed to take steps to normalize relations with Pristina, including recognition of personal documents, car license plates, and diplomas. However, the Serbian government is demanding the establishment of an association of Serbian municipalities, which Kosovo has so far rejected. rtr

New government in Montenegro relies on pro-Serbian alliance

After a long tug-of-war, the parliament in the NATO and Balkan country of Montenegro has elected the centrist Milojko Spajic as its new prime minister. The decisive vote was cast by the deputies of the openly pro-Serbian and pro-Russian alliance ZBCG (formerly DF). Although this alliance is not formally part of Spajic’s new center-right coalition, it will receive important positions in the state administration and in state-owned and state-related companies in return for its support.

Spajic’s Europe Now (PES) party won the parliamentary election in June. But a government led by it is dependent on coalition partners. A governing alliance with smaller pro-Serbian parties and the parties of the ethnic minorities-Bosniaks, Albanians and Croats would also have been possible, at least mathematically. Spajic had originally sought such a coalition.

Belgrade intervened in Montenegro

However, interventions by the government in Belgrade and Montenegrin President Jakov Milatovic, who came from the PES, led Spajic to ultimately decide to include the ZBCG alliance. His center party PES as such is not homogeneous; Milatovic represents its pro-Serb wing.

In the course of the agreement with the alliance ZBCG, which is also friendly to Russia, the parliament elected its co-chairman Andrija Mandic as parliamentary speaker on Monday. Observers point out that in this function he will gain insight into secret security documents, which, for example, also concern questions of cooperation within NATO. dpa

Billions in profits at Uniper: German government to present exit strategy

Almost a year after being rescued with German state funds, energy group Uniper is posting record profits. In the first nine months, consolidated net income rose to €9.8 billion, the company announced on Tuesday. In the same period last year, the group had posted a loss of €40.3 billion.

The reason for this was that Uniper had to purchase expensive replacement volumes following the Russian gas supply stoppage. This brought the Group to the brink of insolvency. But in the meantime, Uniper is benefiting from significantly lower prices for hedging supply obligations and can release provisions.

Uniper had already published preliminary figures last week and raised its forecast. The Group is targeting full-year adjusted EBIT in a range of six to seven billion euros and net income between four and five billion euros.

Exit strategy by the end of the year

The German government had saved the utility from bankruptcy last year with financial aid of €20 billion and now holds 99 percent of the shares in the Düsseldorf-based company. Under an agreement with the EU Commission, the German government is to reduce its stake to below 25 percent by 2028. The federal government must submit an exit plan to Brussels’ competition watchdogs by the end of the year, said Uniper CFO Jutta Dönges.

On Dec. 8, an extraordinary general meeting is to approve a capital cut to pave the way for an exit. Uniper has also committed to a number of disposals, including the Datteln 4 coal-fired power plant, which has been controversial for years. rtr

EU begins negotiations on digital trade with Korea

Just days after concluding an agreement with Japan on cross-border data flows, the EU has now started negotiations with Korea on a digital trade agreement. This was announced by Executive Vice President and EU Trade Commissioner Valdis Dombrovskis and South Korea’s Trade Minister Ahn Duk Geun on Tuesday in Seoul on the sidelines of a bilateral trade meeting.

“We are aiming for binding rules for more consumer confidence, more legal certainty for businesses, and the elimination of unjustified barriers to digital trade”, Dombrovskis wrote on X. The agreement is expected to build on the principles for digital trade agreed with Korea. This is a further step in the EU’s commitment to shaping global rules for digital trade, the Commission said.

First Seoul, then Hanoi

The EU has had a free trade agreement with South Korea, Asia’s fourth-largest economy, since 2011. Since then, tariffs have been abolished on almost all products traded between the two sides.

Dombrovskis also delivered a speech at Korea University on EU-Korea economic and trade relations in the current geopolitical context. “In a world of geopolitical uncertainty, we need even more cooperation with our strategic ally Korea”, he said.

He also spoke with EU business leaders at the European Chamber of Commerce in Korea. Further consultations have been announced for today, Wednesday. Dombrovskis will then travel to Vietnam on Nov. 2, for the opening session of the Green Economy Forum in Hanoi. vis

Personnel

Holger Krahmer, a former FDP member of the European Parliament and most recently a car lobbyist, will be the new secretary general of EBAA (European Business Aviation Association). Krahmer, who is considered one of the best-connected lobbyists in EU operations, will head the business aviation trade association starting in January. Until now, Krahmer has headed the Brussels office of Mercedes and is responsible for political contacts. mgr

Is something changing in your organization? Why not send a note for our staff section to heads@table.media!

Opinion

KsNI – Schrödinger’s cat in the transport sector

Kim Kohlmeyer
Kim Kohlmeyer is Division Manager for Commercial Vehicles at T&E Germany.

Time and again, I hear industry voices proclaiming: “We need a comprehensive strategy for the transport sector!” Yet, such a framework has long been in place. Negotiations are currently underway at the European level regarding limits for truck fleets, the German parliament has recently approved an expansion of the truck toll, and the German government has laid out ambitious plans for expanding charging infrastructure in its Master Plan for Charging Infrastructure II. Moreover, the funding program for climate-friendly commercial vehicles and infrastructure (KsNI) by the Ministry of Transport is already operational – or at least, it was operational. This is precisely where the comprehensive strategy starts to falter.

In order to make a significant dent in CO2 emissions from road freight transport, a shift from internal combustion engines to zero-emission trucks is imperative. As with any significant transformation, this transition will initially be costly. This holds true for e-trucks as well, which are more expensive to purchase but will become cost-effective in terms of total operating costs when compared to combustion engines by 2024.

The KsNI program is designed to assist companies in managing the hefty initial investment required for new trucks. The program has even received positive reviews abroad. However, anyone currently seeking KsNI funds will quickly discover that the coffers are empty. After just two funding calls within a span of eighteen months, all the allocated funds have already been depleted.

Is another funding call coming at all?

The program has been so well received by the industry that funding from the 2024 budget has already been allocated. Originally, a call was planned per quarter. However, the Ministry of Transport is currently leaving companies completely in the dark about whether a third funding call will be made. This is bitter, as it turns the KsNI support into Schrödinger’s cat: it is both there and not there.

As an environmental association, T&E is often not among the first to call for comprehensive funding programs for industry. However, transformation cannot be half-hearted, and as a former entrepreneur, I know that planning with Schrödinger’s cat is impossible. Uncertainty slows down and leads to investments being postponed or canceled.

And time is of the essence – both from a climate and an economic perspective. The Bundestag has decided to start the truck toll in December. It includes an additional CO2 surcharge for diesel trucks and significantly favors emission-free trucks. At the same time, the European truck fleet limits are expected to be decided by EU institutions in the coming months.

Germany in pole position for decarbonization

After the latest negotiations in the Council and the Environment Committee of the EU Parliament, the law is likely to require truck manufacturers to produce significantly more emission-free trucks. In confidential conversations with the Ministry of Transport, manufacturers have already confirmed that they can meet and even exceed these limits. They must also do so, as competition from China and the USA is significant. However, for the transition phase, in which production increases to the point where prices fall, the promised financial aid for the domestic market is crucial.

A comprehensive concept can only work if all pillars are clearly and reliably implemented. We currently have the opportunity to transform road freight transport so that it is better for the climate and the economy. With the CO2 toll and the upcoming truck fleet limits, Germany is currently in the pole position to decarbonize road freight transport and at the same time make the local truck industry fit for the future.

To ensure we don’t stop halfway, we must also promote charging infrastructure and vehicles. Mr. Wissing, it is in your hands whether Germany brings its lead to the finish line or not.

Kim Kohlmeyer has been working at Transport & Environment Germany (T&E) since 2023, after having worked in various capacities as a lawyer, consultant, and as the founder and CEO of her own urban logistics company. T&E Germany is an independent think tank for transport policy and climate protection based in Berlin and part of Transport & Environment, Europe’s largest environmental umbrella organization.

Europe.Table Editorial Office

EUROPE.TABLE EDITORS

Licenses:
    Dear reader,

    This week marks the EU Parliament’s Green Week, a period when MEPs engage in activities beyond the confines of the Parliament. They visit their constituencies and join official delegations abroad to foster the Parliament’s international ties. During these weeks, the spotlight often shifts from the Parliament to the Commission, although there is still noteworthy news emanating from the Parliament.

    Today, we have a significant update from the Green MEP Piernicola Pedicini, as reported by Markus Grabitz. Pedicini is leading the charge to initiate a vote of no confidence against Commission President Ursula von der Leyen due to her handling of the EU’s policy towards Israel. Pedicini, joined by other MEPs, accuses von der Leyen of overstepping her authority by failing to align her Israel policy with the member states.

    Meanwhile, von der Leyen is currently navigating the Balkans, having recently delivered a stern message to Serbia and Kosovo while in Belgrade. She called upon both nations to intensify their efforts to normalize relations, underscoring the importance of regional stability.

    Transitioning from this context, I’d like to highlight the Analysis of my colleague, Falk Steiner. In his report, Steiner meticulously examines the ongoing disputes related to competencies in the implementation of the Digital Services Act (DSA) in Germany. Observing the situation, one might feel compelled to remind the decision-makers in Berlin of the critical and far more pressing issues at hand, particularly in the realm of digitization.

    Your
    Corinna Visser
    Image of Corinna  Visser

    Feature

    DSA: competence wrangling at an inopportune time

    If there is one political constant in Germany, it is the dispute over competencies. It is annoying when this blocks an important legislative project, such as the current “Digitale-Dienste-Gesetz” (DDG, lit. “digital services law”). All during a time when effective digital regulation seems urgently needed in the context of the disputes between Israel and Hamas.

    The DDG is actually supposed to regulate the national portions of the Digital Services Act (DSA). But that could take even longer. The number of agencies whose responsibilities are to be taken into account is almost endless.

    Central contact for decentralized implementation

    Even before the DSA was adopted at the European level, it was clear that there would be a dispute over the division of responsibilities. Because insofar as the DSA deals with media regulation, it is actually up to the federal states under the German constitution. They have outsourced media supervision to the state media authorities – but there is no exact federal counterpart.

    Which is why the Federal Ministry of Digital Affairs decided to appoint another authority involved in digital regulation in other areas as the Digital Services Coordinator (DSC) for the Federal Republic: a position to be created specifically at the Federal Network Agency in Bonn.

    In the future, this is to ensure that both the EU Commission and the authorities of other member states have a central telephone number they can call in cross-border cases. The state media authorities were less than enthusiastic about what was happening – above all the director of the largest state media authority, Tobias Schmid, in NRW.

    BzKJ as ‘primus inter pares’?

    During the deliberations in the federal government, it recently became apparent that the discussion “BNetzA or LMA” was still undercomplex: The Federal Ministry for Family Affairs has been advocating for weeks that the Federal Agency for the Protection of Children and Young People in the Media (BzKJ) should play an essential role. It should preside over the area of content supervision as a “primus inter pares”, the Federal Family Ministry demands.

    Unlike the state media authorities, the BzKJ is a classic youth protection authority. Most readers will know it by its former names: Federal Review Board for Publications Harmful to Young People (BPjS) or Federal Review Board for Media Harmful to Young People (BPjM). As such, it was responsible for numerous indexing of records, CDs, computer games and other content in accordance with the Federal Youth Protection Act, which in some cases strongly divided the public. But even hard-nosed negotiators in Berlin don’t understand why the BPjM is now to be put in charge of the state media authorities.

    State media authorities seek allies

    So the state media authorities are currently seeking allies for good reason. Last week, for example, the media institutions announced that, in anticipation of DSA trials, they had already successfully taken action against hate on the net together with the Central Reporting Office for Punishable Content on the Internet (ZMI) – in the context of the events in Israel.

    The director of the NRW State Media Authority made it clear who he considers to be the best content supervisor: “Clear work processes and many years of experience are crucial. It is not at all surprising that we have managed to react quickly to the current situation in the community of media institutions“, said Tobias Schmid. Who this was intended to address is obvious.

    However, the disputes over competencies for content regulation are not enough: the DSA also contains standards that are more likely to be assigned to the area of data protection. The Federal Data Protection Commissioner, Ulrich Kelber, is supposed to be responsible for these – after all, he has a certain amount of practice coordinating with the state data protection supervisory authorities responsible for most private companies.

    EU Commission cooperates with BNetzA and LMAs

    Meanwhile, the EU Commission is hoping that Germany will soon be ready for work. For now, the Federal Network Agency has been named by the Federal Ministry of Digital Affairs for the informal body proposed by the European Commission. For content enforcement, the EU Commission has approached the state media authorities. What will become of the offices responsible for the Network Enforcement Act (NetzDG) at the Federal Office of Justice remains open for the time being.

    Just like the question of whether the Digital Services Act will even be in force in time for Feb. 17, 2024. A cabinet referral planned for last week had to disappear from the agenda again. When the Bundestag and Bundesrat may exercise their responsibilities in the DDG legislative process remains unclear.

    France excludes Chinese EVs from car subsidy scheme

    France plans to deliberately disadvantage Chinese manufacturers when subsidizing EVs. While most European countries subsidize the purchase of EVs irrespective of additional environmental criteria, the government in Paris will add other criteria:

    • the shipping distance,
    • and the energy mix in the country of origin.

    To this end, the “Bonus écologique”, the French environmental premium, has been revised. “We will stop subsidizing electric vehicles with a bad carbon footprint,” emphasized French Economy Minister Bruno Le Maire at the presentation of the measures in September 2023. “French taxpayers’ money should not be used to finance vehicles 70 percent of which come from China“, Le Maire stated with conviction.

    Environmental score rules out production in China

    To be eligible for the environmental bonus, EVs must score a minimum number of environmental points starting in 2024. These are determined by the greenhouse gas emissions in the supply chain, i.e., the carbon footprint of the materials used, as well as the emissions during production and shipping of a car. Only a “score environmental” of 60 out of 100 possible points qualifies for the environmental bonus of up to €7,000.

    Above all, two criteria of the revised environmental bonus are expected to exclude Chinese-manufactured EVs from the subsidy. Firstly, the carbon emission factor of the energy mix in the country of origin is considered in the rating. China scores very poorly here because it generates much of its electricity from coal. Added to this are the carbon emissions generated during shipping from production to the distribution site in France.

    The French energy agency ADEME is responsible for calculating the environmental points. Car manufacturers must submit all relevant data to ADEME as of October 2023. A list of the EVs that will still be eligible for subsidies will be published on 15 December 2023.

    It is already known that they must not only meet the new criteria for the environmental bonus. Their price cannot exceed 47,000 euros and their weight must not exceed 2.4 tons. This means German-made models such as Volkswagen’s ID.3 or the 2024 Mini Countryman E should have a good chance.

    Protectionism in the carbon-focused subsidy scheme

    Germany’s IG Metall trade union, which has traditionally enjoyed a strong position in the German automotive industry, believes the French government’s approach is appropriate. “The carbon footprint of production, energy mix and transport should be taken into account both in the carbon pricing of imports and in the design of subsidies and instruments,” it told Table.Media. It is no anti-China tariff, but a carbon-oriented subsidy system that promotes the development of regional and local value chains.

    The German Association of the Automotive Industry (VDA) believes the new French regulations go too far. While promoting the switch to alternative drive systems makes sense in principle, the same conditions must apply to all, said a VDA spokeswoman. “Protectionism is not the right way. Europe must stand for the value of international, free and fair trade and open markets.” But Juergen Matthes, Head of International Economic Policy, Financial and Real Estate Markets at the German Economic Institute (IW), is no longer sure about that. Upon a question from Table.Medias, he said that typically such an approach “would be branded as sheer protectionism.”

    Matthes: China and the USA subsidize their economy

    But it’s not that simple because the other big players don’t play by the rules either. “The United States promotes EVs with similar regulations. And China has also heavily subsidized the production side of EVs,” Matthes said.

    The EU Commission now also sees China’s subsidies as a problem. According to its calculations, Chinese EV imports are sold on average 20 percent below the price of European cars in the EU. Their market share could increase from 8 to 15 percent in the next few years.

    EU investigates Chinese subsidies

    Commission President Ursula von der Leyen attributes this to unfair practices. “Their price is kept artificially low by huge state subsidies. This is distorting our market,” she criticized in mid-September before the EU Parliament in Strasbourg.

    Consequently, the Commission initiated a formal anti-subsidy proceeding against China on 4 October 2023. The declared aim is to protect companies producing in the EU. “Wherever we find evidence that they are being hampered by market distortions and unfair competition, we will act decisively,” von der Leyen stressed.

    While France has lobbied extensively for this step, Germany has been rather reluctant for fear of countermeasures. Moreover, it is currently unclear to what extent non-Chinese car manufacturers such as BMW or VW, which manufacture EVs in China for the global market, benefit from such Chinese subsidies.

    EV for a hundred euros a month

    In addition to the environmental bonus, a second subsidy instrument will also exclude vehicles manufactured in China in the future. Only vehicles manufactured in the EU are explicitly eligible for the newly created “social leasing” scheme. The aim of social leasing is the democratization of electromobility, something that has been much discussed in France.

    It is intended to enable households with an annual income of less than 20,850 euros to lease a new EV for 100 euros a month. This is one of President Emmanuel Macron’s election campaign promises from last year.

    Social subsidy primarily for Citroën and Renault

    For 2024, the government anticipates approximately 20,000 social leasing contracts. In the following years, the number of subsidized lease cars is set to increase to 100,000 per year. A budget of 50 million euros has been earmarked for this. With this funding, the French government covers the initial down payment. However, this down payment must not exceed 16 percent of the vehicle price or 5,000 euros. This is why small, fuel-efficient vehicles are the primary beneficiaries of the program. The Citroën ë-C3, the Renault Twingo E-Tech and the Fiat 500e are some of the vehicles under consideration.

    The subsidy regulations will be published in November. The application process will also start then. As with the environmental bonus, a list of eligible models is expected in mid-December.

    No social leasing for German EVs

    It is unlikely that a German EV will qualify for social leasing after VW announced the end of the e-Up a few weeks ago. Instead, high-margin SUVs and luxury cars dominate the product range of German carmakers.

    IG Metall sees this as a mistake. From their perspective, “there needs to be a quick addition to the model policy toward affordable vehicles.” IG Metall believes this will determine the future viability and market position of companies.

    • China
    • E-cars
    • Electromobility
    • Transport turnaround

    News

    Von der Leyen’s Israel policy: MEPs want vote of no confidence

    Green MEP Piernicola Pedicini wants to introduce a vote of no confidence in the European Parliament against Commission President Ursula von der Leyen because of her Israel policy. Pedicini and other MEPs are canvassing for supporters among the Greens, the Left, and the Social Democrats. The text, which Table.Media has obtained, accuses von der Leyen of paying a solidarity visit to Israel after the Oct. 7 terrorist attack without first consulting the member states.

    Von der Leyen’s attitude toward Israel was also criticized: she had shown Israel “unreserved solidarity on behalf of the entire EU”. At the same time, the “inappropriate reaction of the government of Israel against two to three million Palestinian civilians trapped in the Gaza Strip is regarded by many observers as a war crime”. The Commission President was showing the Commission’s “unconditional support for one of two parties” and thus did not represent the “attitude of the EU as a whole”.

    The text stresses that von der Leyen is not responsible for foreign policy: “Foreign policy positions are determined by the European Council and the Council of Foreign Ministers because EU foreign policy is an intergovernmental competence.” In addition, the text points out that Foreign Affairs Commissioner Josep Borrell represents a different position than von der Leyen. His position is that international law and international humanitarian law limit Israel’s right to self-defense. mgr

    Hydrogen bank: Researchers warn against too many subsidies

    The promotion of green hydrogen by the European Hydrogen Bank threatens to waste public money, experts say. There is a risk of over-subsidization of large producers and promotion in regions with poor conditions for renewable energy, according to a statement by the Center for European Policy (cep) on Tuesday.

    On November 23, the EU Commission launches the first tender of the Hydrogen Bank. Initially, €800 million is available, from which producers can receive a fixed premium for each kilogram of hydrogen. For its current study, cep examined regional production costs in the EU. According to the study, in most regions, a subsidy at the fixed maximum level would be inappropriately high.

    Commission should lower subsidy rate

    The maximum subsidy rate should therefore be lowered significantly, they said. “At the same time, the restrictions on participation should be relaxed in order to strengthen competition. This applies in particular to the minimum size of electrolysis capacities, so that small producers can also benefit from the subsidy“, the paper adds.

    However, German producers in particular could benefit from the current auction design. “It could be that projects in the south of Germany are promoted, although they are not the ideal locations in a European comparison”, study author André Wolf told Table.Media.

    Disadvantage for industry compared to other sectors

    Another grievance, according to the study, would be that the hydrogen bank could in the future steer the scarce energy carrier away from industrial applications into sectors where more efficient technologies are available. The background to this is a strict ban on double subsidies.

    If, for example, a chemical or steel company has its production conversion to hydrogen subsidized with a so-called CCfD, it would no longer be allowed to use hydrogen that has already benefited from the hydrogen bank. “I therefore advocate that the criteria to avoid double subsidies should then be made somewhat softer”, Wolf said. One possibility, he said, is to automatically adjust the subsidy to the future development of the hydrogen price. ber

    • Grüner Wasserstoff

    Von der Leyen finds clear words for Serbia and Kosovo

    Both Serbia and Kosovo would have to step up efforts to normalize relations after the recent upsurge in violence if they want to join the European Union, Commission President Ursula von der Leyen said on the second day of her Balkans trip.

    Von der Leyen’s visit to Belgrade comes just days after the heads of state and government of France, Germany, and Italy called on Serbia to achieve “de facto recognition” of Kosovo.

    Parties involved to go to court

    Von der Leyen said those involved in a clash between armed Serbs and Kosovo police on Sept. 24 “must be held accountable and brought to justice. This is absolutely critical for both [Kosovo and Serbia] to engage and move down the path of normalization”, she said at a press conference after meeting with Serbia’s President Aleksandar Vučić.

    Belgrade had previously agreed to take steps to normalize relations with Pristina, including recognition of personal documents, car license plates, and diplomas. However, the Serbian government is demanding the establishment of an association of Serbian municipalities, which Kosovo has so far rejected. rtr

    New government in Montenegro relies on pro-Serbian alliance

    After a long tug-of-war, the parliament in the NATO and Balkan country of Montenegro has elected the centrist Milojko Spajic as its new prime minister. The decisive vote was cast by the deputies of the openly pro-Serbian and pro-Russian alliance ZBCG (formerly DF). Although this alliance is not formally part of Spajic’s new center-right coalition, it will receive important positions in the state administration and in state-owned and state-related companies in return for its support.

    Spajic’s Europe Now (PES) party won the parliamentary election in June. But a government led by it is dependent on coalition partners. A governing alliance with smaller pro-Serbian parties and the parties of the ethnic minorities-Bosniaks, Albanians and Croats would also have been possible, at least mathematically. Spajic had originally sought such a coalition.

    Belgrade intervened in Montenegro

    However, interventions by the government in Belgrade and Montenegrin President Jakov Milatovic, who came from the PES, led Spajic to ultimately decide to include the ZBCG alliance. His center party PES as such is not homogeneous; Milatovic represents its pro-Serb wing.

    In the course of the agreement with the alliance ZBCG, which is also friendly to Russia, the parliament elected its co-chairman Andrija Mandic as parliamentary speaker on Monday. Observers point out that in this function he will gain insight into secret security documents, which, for example, also concern questions of cooperation within NATO. dpa

    Billions in profits at Uniper: German government to present exit strategy

    Almost a year after being rescued with German state funds, energy group Uniper is posting record profits. In the first nine months, consolidated net income rose to €9.8 billion, the company announced on Tuesday. In the same period last year, the group had posted a loss of €40.3 billion.

    The reason for this was that Uniper had to purchase expensive replacement volumes following the Russian gas supply stoppage. This brought the Group to the brink of insolvency. But in the meantime, Uniper is benefiting from significantly lower prices for hedging supply obligations and can release provisions.

    Uniper had already published preliminary figures last week and raised its forecast. The Group is targeting full-year adjusted EBIT in a range of six to seven billion euros and net income between four and five billion euros.

    Exit strategy by the end of the year

    The German government had saved the utility from bankruptcy last year with financial aid of €20 billion and now holds 99 percent of the shares in the Düsseldorf-based company. Under an agreement with the EU Commission, the German government is to reduce its stake to below 25 percent by 2028. The federal government must submit an exit plan to Brussels’ competition watchdogs by the end of the year, said Uniper CFO Jutta Dönges.

    On Dec. 8, an extraordinary general meeting is to approve a capital cut to pave the way for an exit. Uniper has also committed to a number of disposals, including the Datteln 4 coal-fired power plant, which has been controversial for years. rtr

    EU begins negotiations on digital trade with Korea

    Just days after concluding an agreement with Japan on cross-border data flows, the EU has now started negotiations with Korea on a digital trade agreement. This was announced by Executive Vice President and EU Trade Commissioner Valdis Dombrovskis and South Korea’s Trade Minister Ahn Duk Geun on Tuesday in Seoul on the sidelines of a bilateral trade meeting.

    “We are aiming for binding rules for more consumer confidence, more legal certainty for businesses, and the elimination of unjustified barriers to digital trade”, Dombrovskis wrote on X. The agreement is expected to build on the principles for digital trade agreed with Korea. This is a further step in the EU’s commitment to shaping global rules for digital trade, the Commission said.

    First Seoul, then Hanoi

    The EU has had a free trade agreement with South Korea, Asia’s fourth-largest economy, since 2011. Since then, tariffs have been abolished on almost all products traded between the two sides.

    Dombrovskis also delivered a speech at Korea University on EU-Korea economic and trade relations in the current geopolitical context. “In a world of geopolitical uncertainty, we need even more cooperation with our strategic ally Korea”, he said.

    He also spoke with EU business leaders at the European Chamber of Commerce in Korea. Further consultations have been announced for today, Wednesday. Dombrovskis will then travel to Vietnam on Nov. 2, for the opening session of the Green Economy Forum in Hanoi. vis

    Personnel

    Holger Krahmer, a former FDP member of the European Parliament and most recently a car lobbyist, will be the new secretary general of EBAA (European Business Aviation Association). Krahmer, who is considered one of the best-connected lobbyists in EU operations, will head the business aviation trade association starting in January. Until now, Krahmer has headed the Brussels office of Mercedes and is responsible for political contacts. mgr

    Is something changing in your organization? Why not send a note for our staff section to heads@table.media!

    Opinion

    KsNI – Schrödinger’s cat in the transport sector

    Kim Kohlmeyer
    Kim Kohlmeyer is Division Manager for Commercial Vehicles at T&E Germany.

    Time and again, I hear industry voices proclaiming: “We need a comprehensive strategy for the transport sector!” Yet, such a framework has long been in place. Negotiations are currently underway at the European level regarding limits for truck fleets, the German parliament has recently approved an expansion of the truck toll, and the German government has laid out ambitious plans for expanding charging infrastructure in its Master Plan for Charging Infrastructure II. Moreover, the funding program for climate-friendly commercial vehicles and infrastructure (KsNI) by the Ministry of Transport is already operational – or at least, it was operational. This is precisely where the comprehensive strategy starts to falter.

    In order to make a significant dent in CO2 emissions from road freight transport, a shift from internal combustion engines to zero-emission trucks is imperative. As with any significant transformation, this transition will initially be costly. This holds true for e-trucks as well, which are more expensive to purchase but will become cost-effective in terms of total operating costs when compared to combustion engines by 2024.

    The KsNI program is designed to assist companies in managing the hefty initial investment required for new trucks. The program has even received positive reviews abroad. However, anyone currently seeking KsNI funds will quickly discover that the coffers are empty. After just two funding calls within a span of eighteen months, all the allocated funds have already been depleted.

    Is another funding call coming at all?

    The program has been so well received by the industry that funding from the 2024 budget has already been allocated. Originally, a call was planned per quarter. However, the Ministry of Transport is currently leaving companies completely in the dark about whether a third funding call will be made. This is bitter, as it turns the KsNI support into Schrödinger’s cat: it is both there and not there.

    As an environmental association, T&E is often not among the first to call for comprehensive funding programs for industry. However, transformation cannot be half-hearted, and as a former entrepreneur, I know that planning with Schrödinger’s cat is impossible. Uncertainty slows down and leads to investments being postponed or canceled.

    And time is of the essence – both from a climate and an economic perspective. The Bundestag has decided to start the truck toll in December. It includes an additional CO2 surcharge for diesel trucks and significantly favors emission-free trucks. At the same time, the European truck fleet limits are expected to be decided by EU institutions in the coming months.

    Germany in pole position for decarbonization

    After the latest negotiations in the Council and the Environment Committee of the EU Parliament, the law is likely to require truck manufacturers to produce significantly more emission-free trucks. In confidential conversations with the Ministry of Transport, manufacturers have already confirmed that they can meet and even exceed these limits. They must also do so, as competition from China and the USA is significant. However, for the transition phase, in which production increases to the point where prices fall, the promised financial aid for the domestic market is crucial.

    A comprehensive concept can only work if all pillars are clearly and reliably implemented. We currently have the opportunity to transform road freight transport so that it is better for the climate and the economy. With the CO2 toll and the upcoming truck fleet limits, Germany is currently in the pole position to decarbonize road freight transport and at the same time make the local truck industry fit for the future.

    To ensure we don’t stop halfway, we must also promote charging infrastructure and vehicles. Mr. Wissing, it is in your hands whether Germany brings its lead to the finish line or not.

    Kim Kohlmeyer has been working at Transport & Environment Germany (T&E) since 2023, after having worked in various capacities as a lawyer, consultant, and as the founder and CEO of her own urban logistics company. T&E Germany is an independent think tank for transport policy and climate protection based in Berlin and part of Transport & Environment, Europe’s largest environmental umbrella organization.

    Europe.Table Editorial Office

    EUROPE.TABLE EDITORS

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