Environment Council: ETS2 + Serbia acces • Table.Briefings

Dear reader,

With strong words, Volodymyr Zelenskyy addressed Chancellor Olaf Scholz and the German Bundestag today: Germany helped build a wall to isolate Ukraine and hand it over to Russia, Zelenskyy said during the live-broadcast. As an example, he cited Germany’s long holding on to the Nord Stream 2 Baltic Sea pipeline and the West’s refusal to allow Ukraine to join NATO. He concluded his roughly ten-minute speech with an appeal to German Chancellor Olaf Scholz: “Tear down this wall, support us.”

Due to rising energy prices – caused, for instance, by the Ukraine crisis – the camp of proponents of a second European emissions trading system (ETS 2) is currently shrinking. The introduction of a CO2 price in the transport and heating sectors would impose too high a social burden, the Greens and Social Democrats agree. The thing is: There is a lack of viable alternative proposals: A postponed introduction of ETS 2, an energy tax or an increase in fleet limits – all proposals have their drawbacks. Lukas Scheid analyzes the options currently available to the EU.

Serbia’s admission to the EU is a distant prospect as long as Belgrade refuses to join the Western sanctions against Russia. The problem: Serbia is fully dependent on Russian gas supplies. Falk Steiner explains why Serbia is struggling to engage with the West.

The EU Battery Regulation took a big step forward yesterday. The general orientation is in place, now a first reading for the trilogue with the EU Parliament is to be scheduled as soon as possible. Read more about the planned contents in the news section.

There was clear criticism of the enforcement of the General Data Protection Regulation at a hearing in the European Parliament’s LIBE Committee. Data protection law may be harmonized at the European level, but national administrative law is decisive when it comes to implementing data protection procedures – which means that different rules apply to procedures in almost all member states.

Your
Lisa-Martina Klein

ETS 2: cracked, but not dead yet

By

Lukas Knigge

Skepticism is growing in the EU Parliament about a second emissions trading system for road transport and heating (ETS 2). Greens and Social Democrats now agree that the social burden of a sectoral expansion of CO2 pricing would be too high. And at the meeting of EU environment and climate ministers in Brussels on Thursday, many countries also expressed strong concerns about the idea of introducing a CO2 price for certain fuels by 2026.

In addition to the permanent opponents of the European climate protection plans, such as Poland or Hungary, countries like Spain and Ireland also criticized the plans of the EU Commission. Spain called it a contradiction that some countries want to set a price signal with the ETS 2 in order to reduce emissions in the two sectors, while they talk about tax cuts in the current situation to relieve consumers when it comes to heating and buying fuel.

Ireland criticized a lack of flexibility for those countries that have already introduced a CO2 levy on fuels. Similar to Germany’s fuel emission law, Ireland, like Portugal, already has a national CO2 price for buildings and road transport. The revenue is used to finance additional climate protection measures as well as social compensation. Portugal puts some of this money into the expansion of public transport, for example.

Social imbalance caused by ETS 2

Furthermore, it is mainly countries with lower GDPs that raise concerns about ETS 2. Since a CO2 price would apply equally to all countries, the burden on richer countries would be significantly lower. Thus, the impact from rising prices in Germany would be lower than in Bulgaria, for example. Poland’s Climate Minister Adam Guibourgé-Czetwertyńsk also remarked that rich people could afford to “switch” to clean technologies and thus escape the system of higher CO2 prices.

Thus, it remains open whether there will be an agreement on the expansion of emissions trading. While the proponents are also numerous, the skeptics still dominate – albeit by a narrow margin. And because of rising energy prices, it may be difficult to convince other countries and their populations.

However, the EU Commission and the French Council Presidency have also made it clear that they would not accept a simple rejection of the EU climate protection plans of the Fit for 55 package. Those who reject parts of the package should present alternatives that do not reduce the basic ambition level of CO2 reductions. They also stress that financial and socially fair compensation for households affected by rising prices is part of the climate protection plans.

Commissioner for Environment Virginijus Sinkevičius told ministers that the richest 20 percent are responsible for 32 percent of emissions that would fall under ETS 2. The poorest 20 percent, on the other hand, were responsible for only 9 percent of emissions. The revenue from ETS 2 is intended to minimize the burden on the most vulnerable households, Sinkevičius said.

Hardly any alternatives to the ETS 2

Alternative proposals have so far been rather inadequate anyway. A later introduction of ETS 2, as demanded by Slovakia, is out of the question for the Commission due to the 2030 climate targets. Increasing the ambitions of other dossiers in the Fit for 55 package, instead of introducing ETS 2, primarily entails political conflicts.

This is demonstrated, for example, by the German Greens: Michael Bloss, environmental policy spokesman for the Greens in the EU Parliament, is known to be a critic of ETS 2 and instead demands an increase in fleet limits for passenger vehicles to still achieve emission reductions in road traffic. The German government and its Green members are considered the strongest supporters of ETS 2 and fiercely defend the proposal.

BMWK State Secretary Sven Giegold stressed on Thursday that other measures – such as raising the energy tax – could place a much heavier burden on vulnerable households without generating any revenue. He responded to calls not to create an additional burden for the population with the climate protection plans by pointing out that ETS 2 will not be introduced before 2026. Until then, countries would have enough time to adjust their national energy taxes to prevent additional burdens.

ETS rapporteur counts on price relaxation

Peter Liese (EPP), the Parliament rapporteur on ETS reform, tells Europe.Table that he is ready to compromise. He still believes that the ETS 2 is needed – without it, the 2030 targets would probably be missed. But he can certainly imagine linking the introduction of ETS 2 to lower energy prices. In any case, he counts on a relaxation of the current situation. “It’s quite possible that in 2027, energy prices will have gone down significantly again, and we’ll then need an ETS 2 to meet our climate targets.” The current discussion about its introduction despite high energy prices ignores the fact that positive development of prices is possible.

Consequently, the request from some countries for the Commission to renew its impact assessment for the introduction of ETS 2 to include the current price situation seems constructive. Austria’s proposal – to limit ETS 2 not only to fuels in road transport and heating sectors, but to all fuels – is also likely to generate further discussion. Austrian Minister for the Environment Leonore Gewessler emphasized that fuel producers would usually not differentiate their products according to their intended use. A CO2 price only for certain types of use would entail corresponding bureaucratic expense and the risk of circumvention.

Member states had not much positive to say about the Social Climate Fund. This fund is supposed to be the main compensation instrument for those most affected by rising prices under ETS 2. However, most countries see little advantage in it, as there are already effective instruments for the same purpose: Modernization Fund, Recovery Fund, and Just Transition Fund. Giegold also warned that another financial instrument would mean that the EU financial framework would have to be reopened. This has been such a complicated task that reopening it would require a long negotiation process.

The French Council Presidency is aiming for an agreement between the member states on ETS 2, if possible by the end of June 2022. However, the Czech Republic will likely complete the dossier in the second half of the year. Trilogue negotiations with the Commission and Parliament will begin afterward.

Renew wants to suspend accession talks with Serbia

By

Falk Steiner

MEPs cite as a reason that Serbia is currently “dangerously slipping into authoritarianism,” which conflicts with its intention to join the EU. Talks should remain on hold until Serbia realigns its policies to EU values with “credible, concrete and unambiguous measures.” The letter continues that “these are not just EU values, but the values on which the post-World War II international legal order was founded.” The background to the initiative is not only internal Serbian developments – but also the lack of commitment to the EU position on the Ukraine crisis.

There is no room for cowering down, says Nicola Beer (FDP/Renew), EP Vice-President and member of the Committee on Foreign Affairs: “As EU accession candidate, the time has come to clearly show colors: To European values, against criminal autocrats. This is where Belgrade persists in a dangerous ambiguity.” It is good that Serbia wants to become an EU member, but this is bound by values, Beer said: “As long as Belgrade flirts dangerously with an authoritarian Moscow, rejects sanctions and thus unabashedly flames European values as an EU accession candidate, it must experience clear consequences on the part of the EU: A temporary suspension of accession talks is thus necessary at this point as a warning to Belgrade.”

Serbia is the Western Balkan country with the closest political, economic and cultural ties to the Russian Federation. Since the collapse of Yugoslavia, the war in Bosnia and Herzegovina, and the secession of Kosovo, the country’s population and political elite have had mixed and sometimes contradictory attitudes toward EU accession.

Suspensions would have serious repercussions

Suspending accession talks would have very serious repercussions for Serbia, says Simon Ilse of the Belgrade office of the green-affiliated Heinrich Boell Foundation: “It should not be forgotten that President Aleksandar Vučić and his ruling SNS party have built a large part of their legitimacy on the EU accession process. If the accession process is frozen now, this goal will be in great danger.”

It is above all, but not only, Serbia’s task to find a solution. As far as the accession talks are concerned: “Those who do not deliver or do not position themselves also have to be sanctioned,” says Ilse. “Part of the accession process is also to fulfill the conditions in all chapters, including Chapter 31 of the Common Foreign and Security Policy.”

Progress in the accession talks, which have been ongoing since candidate status was granted in 2007, has been slow of late. In the wake of Russia’s attack on Ukraine, however, Serbia has been reluctant to support the EU’s sanctions. Both Serbia’s Air Serbia and Russia’s Aeroflot continue to operate flights between Russia and Serbia.

‘Gas from Putin – or freeze‘

Serbia’s economy is largely dependent on Russia, and the Russian company Gazprom is the country’s sole supplier. As recently as November, Vladimir Putin had promised Serbia gas supplies far below the current market price for another six months, for which President Aleksandar Vučić thanked him. For Simon Ilse of the Boell Foundation, one thing is certain: “Serbia would suffer greatly if it were to accept the sanctions tomorrow, for example, if Putin were to shut the gas valve.” For Germany, he said, there are alternatives such as LNG terminals. “For Serbia, the alternative is gas from Putin – or freeze. So it’s about reducing dependence on Russia and figuring out common approaches.”

Serbia will hold parliamentary elections in just over two weeks. “Realistically, there will be no majority for a clear, pro-European alternative in the parliamentary elections on April 3,” says Ilse. There are signs of respectable successes for such parties, for example in Belgrade. But the fact that Serbia itself has already been the target of sanctions must always be taken into account: “Even among the progressive forces, there is experience with sanctions dating back to the 1990s, and hence doubts about the instrument.”

German Foreign Minister Annalena Baerbock (Greens) had only a week ago during a visit to the largest former constituent state of the former South Slavic state, which officially existed from 1918 to 2003, still informed that one wishes a full EU membership of Serbia. For this, however, certain conditions have to be met.

EU Battery Regulation in final stages

EU Environment Ministers have agreed in Brussels on the general direction of the new battery regulation. “I note unanimous support for this text,” said French Minister for the Environment Barbara Pompili in Brussels on Thursday.

The French Council Presidency was able to report an important success in the deliberations on the draft Battery Regulation. Following agreement on the general approach, a first reading for the trilogue with the EU Parliament is now to be scheduled quickly.

The EU proved that the future of the European economy will be ecological, said Barbara Pompili. The minister stressed that with the future regulation, the manufacturing of a product will for the first time be “responsible towards the environment” for the entire life cycle – from the extraction of raw materials to recycling. The regulation will “create many jobs” and reduce Europe’s dependence, she added.

Mandatory labeling from 2024

Similarly, German Minister Steffi Lemke said the regulation would make a major contribution to the EU’s sustainability, but also competitiveness and strategic autonomy. “In the EU, we want to produce batteries as sustainably as possible in the future.” Batteries are a central building block for the energy transition, she said. The minister expects that the new legal basis will enable the rapid development of sustainable battery production in Europe and in Germany. She emphasized that labeling for the CO2 footprint of EVs would be possible quickly.

According to the draft, the labeling obligation is to start July 1, 2024. The right to repair strengthens interchangeability for all batteries, even for light vehicles such as scooters and electric bicycles. The regulation sets ambitious recycling targets, with minimum collection rates of 85 percent by 2030. There will also be specific targets for individual components such as cobalt, lead, lithium, and nickel. The aim is to reduce primary raw material consumption. The battery regulation is seen as a blueprint for the circular economy action plan that the EU Commission plans to present on March 30.

Battery with origin passport

With regard to the raw material supply chains and the due diligence obligations of suppliers, Minister Steffi Lemke spoke of a milestone, stating that Europe is taking on a global leading role in this area. A passport in the form of a QR code on each battery will provide information, for example, about the origin of the raw materials.

The Council of Member States now has a strong mandate for negotiations with the EU Parliament, which already defined its position last week. Among other things, Parliament wants batteries in devices such as smartphones or e-bikes to be fully replaceable as early as 2024.

France’s Minister for the Environment Barbara Pompili did not yet want to announce a date for the start of the trialogue. The Council Presidency wishes to reach a conclusion in the first half of the year. However, an agreement on the battery regulation in the second half of the year under the Czech Council presidency is probably more realistic. sti

Federal government supports phasing out of internal combustion engines in 2035

On behalf of the German government, Minister Steffi Lemke (Greens) has expressly supported the end of the combustion engine in cars and vans from 2035. “When it comes to climate protection in transport, the EU fleet limits have proven to be an effective instrument for reducing CO2 emissions,” she said at the Environment Council in Brussels on Thursday.

The German government had already announced in its coalition agreement the intention to support the EU Commission’s climate protection plans. The tightening of fleet limits is part of the Fit for 55 package. It stipulates that only zero-emission vehicles may be newly registered in 2035. EU countries and the EU Parliament still have to approve the proposal.

Currently, only cars with purely battery-electric drive systems are considered emission-free – hybrid vehicles are not included. However, the Commission also states that leading markets – and that includes Germany – should achieve an emission-free new car fleet sooner. Lemke did not comment on a specific date for this. According to Greenpeace, no more climate-damaging cars with internal combustion engines should be sold in Europe after 2028 in order to meet the 1.5-degree target.

Lemke also announced, “Internal combustion engines powered by e-fuels are only an option outside the CO2 fleet limits after 2035.” With this, the German government is now taking a clear position; previously, there had been debates within the government about the use of e-fuels in passenger cars. This would mean that e-fuels could only be used in heavy-duty transport, tractors, or construction vehicles. dpa/luk

ECB: Climate change and Ukraine crisis drive energy price inflation

The trend to move away from climate-harming energy sources, which has been accelerated in the wake of the Ukraine crisis, will come at a high price, according to ECB Director Isabel Schnabel. The measures to protect the planet and for the self-determination of free societies would usher in a “new era of energy price inflation,” the German economist warned on Thursday at the monetary policy conference “The ECB and its Watchers” in Frankfurt. “Steering through this phase will require solidarity and political cooperation at all levels – in Europe and at the national level,” she added.

Monetary policy will also play its part in the transition to a climate-friendly economy. It will ensure that consumers’ purchasing power is protected and that the expectation of high inflation does not take root in people’s minds. At the same time, monetary policy will continue to support growth and employment.

The Russian invasion of Ukraine is already making energy noticeably more expensive, driving up inflation. The Institute for the World Economy (IfW) has lowered its growth forecast for Germany in 2022 to 2.1 percent as a result of the Russian war, cutting it nearly by half. The conflict is also exacerbating already existing problems for Germany’s highly interconnected industry. Around 60 percent of companies report additional disruptions in the supply chain and logistics as a result of the war, according to a survey by the Association of German Chambers of Industry and Commerce (DIHK).

Global economy is slowing down

The war in Ukraine will also slow down the global economy, according to the OECD. Global economic growth is likely to be more than one percentage point lower in 2022 as a result of the conflict, an OECD spokesman said on Thursday. In addition, “inflation, which was already high at the beginning of the year, could increase by at least another two percentage points.” Commodity prices have risen dramatically, and Russia and Ukraine collectively account for about one-third of global wheat exports. “Disruptions in wheat, maize and fertilizer supplies pose a risk to global food security and threaten to exacerbate famine.”

Rising metal prices could cause problems in many economic sectors, such as aircraft and vehicle manufacturing and semiconductor production. “The supply shortage of raw materials triggered by the war is further exacerbating pandemic-related supply disruptions,” the Organization for Economic Co-operation and Development (OECD) said.

ECB signals flexible course

The ECB will keep a focus on the impact of the war in Ukraine in its policy orientation. If necessary, all necessary steps will be taken should the consequences of the conflict intensify and threaten to stall the economic recovery, ECB chief Christine Lagarde said at the conference “The ECB and its Watchers”. The ECB will ensure that monetary policy is implemented smoothly. If necessary, new instruments could also be created.

At 5.9 percent, the inflation rate in the eurozone has recently already shot miles above the ECB’s target of 2.0 percent. Against this backdrop, the central bank has decided to scale back its multi-billion bond purchases more quickly and end them in the summer if the inflation outlook permits. This would pave the way for the interest rate reversal, which the US Federal Reserve already completed on Wednesday. Similar to Europe, energy is also a strong price driver there. rtr

Sanctions: Commission task force intensifies efforts

The European Commission’s ‘Freeze and Seize Task Force‘ has intensified its activities at the international level, the EU Commission announced on Thursday. The task force was established to coordinate the enforcement of sanctions against Russian and Belarusian oligarchs at the EU level. It will cooperate with the newly established Task Force on Russian Elites, Proxies and Oligarchs (REPO), in which the EU, in turn, cooperates with G7 countries as well as Australia. Its goal is to ensure the effectiveness of the sanctions imposed on both sides of the Atlantic, the Commission says.

The Freeze and Seize Task Force is composed of the Commission, the national contact points of each Member State, Eurojust and Europol, and other EU bodies. Its purpose is to seize the assets of Russian and Belarusian oligarchs and, where permitted by national law. Under EU sanctions, all assets belonging to or controlled by listed persons are to be frozen. Currently, under EU sanctions related to Russian aggression against Ukraine, the assets of 877 individuals and 62 entities are frozen. klm

Data protection: enforcement problems occupy LIBE committee

At a hearing in the European Parliament’s LIBE Committee, experts voiced strong criticism of the enforcement of the General Data Protection Regulation (GDPR). Although data protection law has been harmonized at the European level, implementation is lacking in several areas.

National administrative law plays a special role in this regard: It is decisive in the implementation of data protection procedures – but is not harmonized at the European level. Almost every member state has different rules, for example, on the duration of procedures or who can participate in them. “Procedural rules are currently the biggest bottleneck,” complained Max Schrems of the Austrian organization None of Your Business (NOYB). In Ireland, for example, NOYB has been arguing with the data protection supervisory authority for three years over whether it is the main supervisory authority for Google. NOYB claimed to have never even received an answer from the Bulgarian data protection supervisory authority, and is considering going there in the future.

“National procedural rules determine how quickly and firmly cases under European law are handled,” said Tobias Ludin of the Norwegian Data Protection Authority, which operates jointly with EU member state authorities on data protection law, for example. Maria Magierska of the European University Institute also called it “not helpful that no specific deadlines exist for a draft decision” in the GDPR.

Mix of success and failure

In particular, whether the current method, under which the data protection supervisory authority of a member state is solely responsible for the procedure where a company has its headquarters or principal place of business within the EU, prompted some critical comments from the experts. Tobias Ludin suggested that other procedures might make more sense if, for example, affected parties were located in all or at least two-thirds of the states. The experts also praised the role of the European Data Protection Board, but stated that the will for cooperation among the individual authorities was essential and that the cooperation body of the data protection supervisory authorities was not sufficiently equipped either.

Overall, the GDPR is a mixture of success and failure, according to Ursula Pachl from the European consumer umbrella organization BEUC. Positive is the increased attention for the issue and the global impact of the GDPR. On the negative side, however, she said that some supervisory authorities were acting solely on their own account, that companies were still trying to maximize data collection, and that the enforcement mechanisms were not rigid enough.

From a corporate perspective, Vodafone’s Global Privacy Officer Mikko Niva explained that the GDPR has been established as the basic standard for global business. There are practical problems, especially with information requests, where large amounts of data have to be sorted manually. Structurally, data portability, in particular, is not sufficiently regulated; successful portability rules such as those for number portability or the PSD2 directive would be specifically geared to certain cases and more successful.

Problems also relevant for DSA and AI Act

Experts also criticized the fact that in some cases, the data protection commissioners are still inadequately equipped by the member states. For example, the head of the Spanish data protection supervisory authority reported that she had had to deal with almost 15,000 complaints last year. However, it is not only a question of material and staff resources, but also a question of efficiency, according to other experts: Spain has managed to achieve significantly more cases with comparable resources than the Irish DPC, according to Max Schrems.

The majority of invited experts doubted that the problems with data protection supervision would be resolved in the foreseeable future. Max Schrems said that there was currently a trend toward civil lawsuits. This would mean that the data protection supervisory authorities would hand over their influence to the courts, which, however, would not necessarily be well-positioned to deal with the issue either.

Looking ahead to other upcoming EU legislation, Maria Magierska stressed that the problems now identified with the GDPR enforcement are also representative of upcoming legislations, for example with regard to the Digital Services Act and the AI Regulation: “We have to keep in mind that all this is just the beginning of our problems with digital human rights enforcement.”

Commission proposal: article X to regulate messenger interoperability in DMA

The organization Lobbycontrol has published a proposal from the EU Commission for the ongoing trilogue on the Digital Markets Act (DMA), which is intended to clarify the rules for interoperability regulations between messenger services. Article X, which means it is not yet numbered, includes much more specific rules on interoperability than the proposal of the European Parliament. So-called “number-independent interpersonal communications services” provided by gatekeepers should, according to the Commission’s proposal, have to fulfill interoperability with other providers in the following areas:

End-to-end text messaging between two individual users
End-to-end voice telephony between two individual users
End-to-end video telephony between two individual users
End-to-end image and video sharing between two individual users
End-to-end encryption for the above functionalities

This would fall well short of the requirements set by the MEPs. In their negotiating position, they had envisaged considerably broader interoperability requirements for messenger services and social networks: Connection option should enable “functional interaction with these services” under “objectively the same conditions and in the quality that is available to or used by the gatekeeper, associated company or its partners.” This would include the full scope of the respective services.

“This proposal by the Commission would be a step backward,” says Max Bank of Lobbycontrol. “It’s missing a key point, which is group messaging. If it is not included, it is a farce. Audio messaging is also not included.” Moreover, the list would need to be expandable with future functionality, Bank demands. For the Lobbycontrol representative, one thing is certain: “This Commission proposal is unacceptable if gatekeepers are to be denied their market power. Parliament cannot accept this.” fst

Activists accuse Facebook of double standards for crisis areas

Facebook owner Meta Platforms is temporarily allowing Facebook and Instagram users in some countries to incite violence against Russians and Russian soldiers in connection with the invasion of Ukraine. It also reportedly allows praise of the far-right Azov Battalion “exclusively in connection with the defense of Ukraine” – a decision that experts say highlights the platform’s bias.

This move represents a “glaring” double standard compared to Meta’s failure to curb hate speech in other war zones, said Marwa Fatafta of Access Now. “The disparity of action compared to Palestine, Syria, or other non-Western conflicts underlines that inequality and discrimination by tech platforms is a characteristic, not a mistake,” said Fatafta, Policy Manager for the Middle East and North Africa.

Last year, hundreds of posts by Palestinians protesting displacement from East Jerusalem were removed by Instagram and Twitter, which later claimed technical errors were to blame. Digital rights groups criticized the censorship and pushed for more transparency in setting and enforcing moderation policies.

A policy for all?

Facebook had come under criticism for failing to curb incitement to conflict from Ethiopia to Myanmar. United Nations investigators said Facebook played a key role in spreading hate speech that fueled violence against Rohingya Muslims. In December, Rohingya refugees filed a $150 billion class-action lawsuit in California accusing Facebook of failures to monitor content and against the minority in 2017. Meta recently announced it would “explore the feasibility” of an independent human rights review of its work in Ethiopia after its oversight panel recommended a review.

Exception for Ukraine

In a report Wednesday, Human Rights Watch said tech companies must demonstrate that their actions in Ukraine are “procedurally fair” and that they avoid “arbitrary, biased or selective decisions” by relying on clear, established and transparent processes.

In the case of Ukraine, Meta explained that native Russian and Ukrainian speakers monitor the platform around the clock and that the temporary change was to allow forms of political expression. “This is a temporary decision made under extraordinary and unprecedented circumstances,” Nick Clegg, president of global affairs at Meta, said in a tweet, adding that the company was focused on “protecting people’s rights to speech” in Ukraine. Russian authorities have blocked Facebook, Instagram and Twitter in Russia. rtr

EU raises tariffs on stainless steel imports from India and Indonesia

The European Union will increase tariffs on stainless steel products from India and Indonesia after determining they benefited from unfair subsidies, including some from China under its Belt and Road investment program.

The European Commission, which conducted the investigation, has set the anti-subsidy duties on stainless steel cold-rolled flat products at rates of between 4.3% and 21.4%, the EU official journal said on Wednesday. They will add to anti-dumping tariffs already in place.

Indonesia’s IRNC faces a new tariff of 21.4%, bringing the overall rate, including anti-dumping duties, to 30.7%. The new rates for India’s Jindal Stainless Ltd and Jindal Stainless Hisar Ltd are 4.3%, taking the total tariff to 14.3%.

The Commission said the subsidies took the form of preferential loans, duty exemptions and cheap provision of raw materials, partly because of export restrictions for those materials. Indonesia also benefited from subsidies to help build up its stainless steel industry from China, which in return benefited from taking up a larger share of Indonesia’s nickel ore exports.

Measures against unfair subsidies

This is the European Union’s second investigation into trans-national Chinese subsidies. In 2020, the bloc imposed duties on glass fibre fabrics and products from Chinese companies or joint venture operations in Egypt. The Commission said that the new tariffs, to take effect from Thursday, aim to remedy damage caused to EU producers such as Acerinox and Outokumpu.

“Today we are taking action to counter unfair state-sponsored subsidies in India and Indonesia that directly hurt our workers and companies in this vital industrial sector,” EU trade chief Valdis Dombrovskis said.

Indonesia said the findings of the EU’s investigation did not take into account arguments and evidence its government had presented during the investigation. That had “clearly proved that there is no subsidy from the Indonesian government to the Indonesian stainless steel industry,” said Natan Kambuno, a director at the Trade Ministry. He said the government would coordinate with the affected company regarding the duties. rtr

Markus Pieper: a conservative for renewables

Markus Pieper travels a lot in his day-to-day work, between Brussels, Berlin, Düsseldorf and Münster. The 58-year-old is active at the European level as well as in federal, state and local politics. This can be quite challenging, especially when it comes to his favorite topic, energy policy: “The pan-European view of energy policy is different from the German one, and it’s again different from the North Rhine-Westphalian and Muenster ones,” emphasizes the father of three, who lives in the municipality of Lotte near Osnabrueck and is the Parliamentary Secretary of the CDU/CSU Group in the EU Parliament in Brussels.

Last November, the CDU politician spoke about the Renewable Energies Directive in an interview with Europe.Table. At that time, no one would have believed that Putin would attack Ukraine and that the European Union would respond by accelerating its energy transition.

Europe wants to become independent of Russian gas, while Germany is in the process of phasing out nuclear power and coal, energy-intensive companies in North Rhine-Westphalia require cost-compatible solutions, and the Muenster region is strongly committed to the expansion of renewable energies. “For me, in my day-to-day work, the trick is to bring the various expectations together and provide the appropriate answers at each level,” Markus Pieper explains.

Market-based solutions for climate protection

Clear guidelines help him to achieve this: These include a clear commitment to Europe as a community of peace and values and a commitment to free-market solutions, also and especially in climate protection, he emphasizes. On the subject of understanding values: “I joined the CDU because my eldest daughter’s kindergarten was not allowed to celebrate a Christian Christmas – and that in a small village with 1,200 people, where the nativity play was banned, like everything else related to religion,” recalls Markus Pieper, whose eldest daughter is now 27 years old.

To him, it is the Christian history that culturally shapes our society – and in the CDU, which sees itself as a people’s party, he still feels in good hands today. The party successfully combines social, liberal and value-oriented positions in the interests of society as a whole.

For fifteen years, Markus Pieper himself worked in business, for example as IHK Managing Director, before a happy coincidence led him into politics more than two decades ago. “In Muensterland, a candidate had dropped out at short notice. I was brought into the picture by Karl-Josef Laumann, the CDU district chairman, because of my experience with small and medium-sized businesses, and was then able to prevail against six other candidates,” he recounts.

As a politician, he says, he benefits from the fact that he knows the perspectives of the companies and the chambers of industry and commerce and can always combine this with environmental and employee concerns, as is the case now with the shortage of skilled workers in the wake of the expansion of renewable energies. This makes Markus Pieper a border crosser who has to wear many different glasses and who is always able to reconcile different perspectives. Janna Degener-Storr

EUROPE.TABLE EDITORS

Till
Hoppe

Charlotte
Wirth

Falk
Steiner

Timo
Landenberger

Corinna
Visser

Lukas
Knigge

Eric
Bonse

Sarah
Schaefer

Manuel
Berkel

Lisa-Martina
Klein

Markus
Grabitz

Stephan
Israel

Claire
Stam

Dear reader,

With strong words, Volodymyr Zelenskyy addressed Chancellor Olaf Scholz and the German Bundestag today: Germany helped build a wall to isolate Ukraine and hand it over to Russia, Zelenskyy said during the live-broadcast. As an example, he cited Germany’s long holding on to the Nord Stream 2 Baltic Sea pipeline and the West’s refusal to allow Ukraine to join NATO. He concluded his roughly ten-minute speech with an appeal to German Chancellor Olaf Scholz: “Tear down this wall, support us.”

Due to rising energy prices – caused, for instance, by the Ukraine crisis – the camp of proponents of a second European emissions trading system (ETS 2) is currently shrinking. The introduction of a CO2 price in the transport and heating sectors would impose too high a social burden, the Greens and Social Democrats agree. The thing is: There is a lack of viable alternative proposals: A postponed introduction of ETS 2, an energy tax or an increase in fleet limits – all proposals have their drawbacks. Lukas Scheid analyzes the options currently available to the EU.

Serbia’s admission to the EU is a distant prospect as long as Belgrade refuses to join the Western sanctions against Russia. The problem: Serbia is fully dependent on Russian gas supplies. Falk Steiner explains why Serbia is struggling to engage with the West.

The EU Battery Regulation took a big step forward yesterday. The general orientation is in place, now a first reading for the trilogue with the EU Parliament is to be scheduled as soon as possible. Read more about the planned contents in the news section.

There was clear criticism of the enforcement of the General Data Protection Regulation at a hearing in the European Parliament’s LIBE Committee. Data protection law may be harmonized at the European level, but national administrative law is decisive when it comes to implementing data protection procedures – which means that different rules apply to procedures in almost all member states.

Your
Lisa-Martina Klein

ETS 2: cracked, but not dead yet

By

Lukas Knigge

Skepticism is growing in the EU Parliament about a second emissions trading system for road transport and heating (ETS 2). Greens and Social Democrats now agree that the social burden of a sectoral expansion of CO2 pricing would be too high. And at the meeting of EU environment and climate ministers in Brussels on Thursday, many countries also expressed strong concerns about the idea of introducing a CO2 price for certain fuels by 2026.

In addition to the permanent opponents of the European climate protection plans, such as Poland or Hungary, countries like Spain and Ireland also criticized the plans of the EU Commission. Spain called it a contradiction that some countries want to set a price signal with the ETS 2 in order to reduce emissions in the two sectors, while they talk about tax cuts in the current situation to relieve consumers when it comes to heating and buying fuel.

Ireland criticized a lack of flexibility for those countries that have already introduced a CO2 levy on fuels. Similar to Germany’s fuel emission law, Ireland, like Portugal, already has a national CO2 price for buildings and road transport. The revenue is used to finance additional climate protection measures as well as social compensation. Portugal puts some of this money into the expansion of public transport, for example.

Social imbalance caused by ETS 2

Furthermore, it is mainly countries with lower GDPs that raise concerns about ETS 2. Since a CO2 price would apply equally to all countries, the burden on richer countries would be significantly lower. Thus, the impact from rising prices in Germany would be lower than in Bulgaria, for example. Poland’s Climate Minister Adam Guibourgé-Czetwertyńsk also remarked that rich people could afford to “switch” to clean technologies and thus escape the system of higher CO2 prices.

Thus, it remains open whether there will be an agreement on the expansion of emissions trading. While the proponents are also numerous, the skeptics still dominate – albeit by a narrow margin. And because of rising energy prices, it may be difficult to convince other countries and their populations.

However, the EU Commission and the French Council Presidency have also made it clear that they would not accept a simple rejection of the EU climate protection plans of the Fit for 55 package. Those who reject parts of the package should present alternatives that do not reduce the basic ambition level of CO2 reductions. They also stress that financial and socially fair compensation for households affected by rising prices is part of the climate protection plans.

Commissioner for Environment Virginijus Sinkevičius told ministers that the richest 20 percent are responsible for 32 percent of emissions that would fall under ETS 2. The poorest 20 percent, on the other hand, were responsible for only 9 percent of emissions. The revenue from ETS 2 is intended to minimize the burden on the most vulnerable households, Sinkevičius said.

Hardly any alternatives to the ETS 2

Alternative proposals have so far been rather inadequate anyway. A later introduction of ETS 2, as demanded by Slovakia, is out of the question for the Commission due to the 2030 climate targets. Increasing the ambitions of other dossiers in the Fit for 55 package, instead of introducing ETS 2, primarily entails political conflicts.

This is demonstrated, for example, by the German Greens: Michael Bloss, environmental policy spokesman for the Greens in the EU Parliament, is known to be a critic of ETS 2 and instead demands an increase in fleet limits for passenger vehicles to still achieve emission reductions in road traffic. The German government and its Green members are considered the strongest supporters of ETS 2 and fiercely defend the proposal.

BMWK State Secretary Sven Giegold stressed on Thursday that other measures – such as raising the energy tax – could place a much heavier burden on vulnerable households without generating any revenue. He responded to calls not to create an additional burden for the population with the climate protection plans by pointing out that ETS 2 will not be introduced before 2026. Until then, countries would have enough time to adjust their national energy taxes to prevent additional burdens.

ETS rapporteur counts on price relaxation

Peter Liese (EPP), the Parliament rapporteur on ETS reform, tells Europe.Table that he is ready to compromise. He still believes that the ETS 2 is needed – without it, the 2030 targets would probably be missed. But he can certainly imagine linking the introduction of ETS 2 to lower energy prices. In any case, he counts on a relaxation of the current situation. “It’s quite possible that in 2027, energy prices will have gone down significantly again, and we’ll then need an ETS 2 to meet our climate targets.” The current discussion about its introduction despite high energy prices ignores the fact that positive development of prices is possible.

Consequently, the request from some countries for the Commission to renew its impact assessment for the introduction of ETS 2 to include the current price situation seems constructive. Austria’s proposal – to limit ETS 2 not only to fuels in road transport and heating sectors, but to all fuels – is also likely to generate further discussion. Austrian Minister for the Environment Leonore Gewessler emphasized that fuel producers would usually not differentiate their products according to their intended use. A CO2 price only for certain types of use would entail corresponding bureaucratic expense and the risk of circumvention.

Member states had not much positive to say about the Social Climate Fund. This fund is supposed to be the main compensation instrument for those most affected by rising prices under ETS 2. However, most countries see little advantage in it, as there are already effective instruments for the same purpose: Modernization Fund, Recovery Fund, and Just Transition Fund. Giegold also warned that another financial instrument would mean that the EU financial framework would have to be reopened. This has been such a complicated task that reopening it would require a long negotiation process.

The French Council Presidency is aiming for an agreement between the member states on ETS 2, if possible by the end of June 2022. However, the Czech Republic will likely complete the dossier in the second half of the year. Trilogue negotiations with the Commission and Parliament will begin afterward.

Renew wants to suspend accession talks with Serbia

By

Falk Steiner

MEPs cite as a reason that Serbia is currently “dangerously slipping into authoritarianism,” which conflicts with its intention to join the EU. Talks should remain on hold until Serbia realigns its policies to EU values with “credible, concrete and unambiguous measures.” The letter continues that “these are not just EU values, but the values on which the post-World War II international legal order was founded.” The background to the initiative is not only internal Serbian developments – but also the lack of commitment to the EU position on the Ukraine crisis.

There is no room for cowering down, says Nicola Beer (FDP/Renew), EP Vice-President and member of the Committee on Foreign Affairs: “As EU accession candidate, the time has come to clearly show colors: To European values, against criminal autocrats. This is where Belgrade persists in a dangerous ambiguity.” It is good that Serbia wants to become an EU member, but this is bound by values, Beer said: “As long as Belgrade flirts dangerously with an authoritarian Moscow, rejects sanctions and thus unabashedly flames European values as an EU accession candidate, it must experience clear consequences on the part of the EU: A temporary suspension of accession talks is thus necessary at this point as a warning to Belgrade.”

Serbia is the Western Balkan country with the closest political, economic and cultural ties to the Russian Federation. Since the collapse of Yugoslavia, the war in Bosnia and Herzegovina, and the secession of Kosovo, the country’s population and political elite have had mixed and sometimes contradictory attitudes toward EU accession.

Suspensions would have serious repercussions

Suspending accession talks would have very serious repercussions for Serbia, says Simon Ilse of the Belgrade office of the green-affiliated Heinrich Boell Foundation: “It should not be forgotten that President Aleksandar Vučić and his ruling SNS party have built a large part of their legitimacy on the EU accession process. If the accession process is frozen now, this goal will be in great danger.”

It is above all, but not only, Serbia’s task to find a solution. As far as the accession talks are concerned: “Those who do not deliver or do not position themselves also have to be sanctioned,” says Ilse. “Part of the accession process is also to fulfill the conditions in all chapters, including Chapter 31 of the Common Foreign and Security Policy.”

Progress in the accession talks, which have been ongoing since candidate status was granted in 2007, has been slow of late. In the wake of Russia’s attack on Ukraine, however, Serbia has been reluctant to support the EU’s sanctions. Both Serbia’s Air Serbia and Russia’s Aeroflot continue to operate flights between Russia and Serbia.

‘Gas from Putin – or freeze‘

Serbia’s economy is largely dependent on Russia, and the Russian company Gazprom is the country’s sole supplier. As recently as November, Vladimir Putin had promised Serbia gas supplies far below the current market price for another six months, for which President Aleksandar Vučić thanked him. For Simon Ilse of the Boell Foundation, one thing is certain: “Serbia would suffer greatly if it were to accept the sanctions tomorrow, for example, if Putin were to shut the gas valve.” For Germany, he said, there are alternatives such as LNG terminals. “For Serbia, the alternative is gas from Putin – or freeze. So it’s about reducing dependence on Russia and figuring out common approaches.”

Serbia will hold parliamentary elections in just over two weeks. “Realistically, there will be no majority for a clear, pro-European alternative in the parliamentary elections on April 3,” says Ilse. There are signs of respectable successes for such parties, for example in Belgrade. But the fact that Serbia itself has already been the target of sanctions must always be taken into account: “Even among the progressive forces, there is experience with sanctions dating back to the 1990s, and hence doubts about the instrument.”

German Foreign Minister Annalena Baerbock (Greens) had only a week ago during a visit to the largest former constituent state of the former South Slavic state, which officially existed from 1918 to 2003, still informed that one wishes a full EU membership of Serbia. For this, however, certain conditions have to be met.

EU Battery Regulation in final stages

EU Environment Ministers have agreed in Brussels on the general direction of the new battery regulation. “I note unanimous support for this text,” said French Minister for the Environment Barbara Pompili in Brussels on Thursday.

The French Council Presidency was able to report an important success in the deliberations on the draft Battery Regulation. Following agreement on the general approach, a first reading for the trilogue with the EU Parliament is now to be scheduled quickly.

The EU proved that the future of the European economy will be ecological, said Barbara Pompili. The minister stressed that with the future regulation, the manufacturing of a product will for the first time be “responsible towards the environment” for the entire life cycle – from the extraction of raw materials to recycling. The regulation will “create many jobs” and reduce Europe’s dependence, she added.

Mandatory labeling from 2024

Similarly, German Minister Steffi Lemke said the regulation would make a major contribution to the EU’s sustainability, but also competitiveness and strategic autonomy. “In the EU, we want to produce batteries as sustainably as possible in the future.” Batteries are a central building block for the energy transition, she said. The minister expects that the new legal basis will enable the rapid development of sustainable battery production in Europe and in Germany. She emphasized that labeling for the CO2 footprint of EVs would be possible quickly.

According to the draft, the labeling obligation is to start July 1, 2024. The right to repair strengthens interchangeability for all batteries, even for light vehicles such as scooters and electric bicycles. The regulation sets ambitious recycling targets, with minimum collection rates of 85 percent by 2030. There will also be specific targets for individual components such as cobalt, lead, lithium, and nickel. The aim is to reduce primary raw material consumption. The battery regulation is seen as a blueprint for the circular economy action plan that the EU Commission plans to present on March 30.

Battery with origin passport

With regard to the raw material supply chains and the due diligence obligations of suppliers, Minister Steffi Lemke spoke of a milestone, stating that Europe is taking on a global leading role in this area. A passport in the form of a QR code on each battery will provide information, for example, about the origin of the raw materials.

The Council of Member States now has a strong mandate for negotiations with the EU Parliament, which already defined its position last week. Among other things, Parliament wants batteries in devices such as smartphones or e-bikes to be fully replaceable as early as 2024.

France’s Minister for the Environment Barbara Pompili did not yet want to announce a date for the start of the trialogue. The Council Presidency wishes to reach a conclusion in the first half of the year. However, an agreement on the battery regulation in the second half of the year under the Czech Council presidency is probably more realistic. sti

Federal government supports phasing out of internal combustion engines in 2035

On behalf of the German government, Minister Steffi Lemke (Greens) has expressly supported the end of the combustion engine in cars and vans from 2035. “When it comes to climate protection in transport, the EU fleet limits have proven to be an effective instrument for reducing CO2 emissions,” she said at the Environment Council in Brussels on Thursday.

The German government had already announced in its coalition agreement the intention to support the EU Commission’s climate protection plans. The tightening of fleet limits is part of the Fit for 55 package. It stipulates that only zero-emission vehicles may be newly registered in 2035. EU countries and the EU Parliament still have to approve the proposal.

Currently, only cars with purely battery-electric drive systems are considered emission-free – hybrid vehicles are not included. However, the Commission also states that leading markets – and that includes Germany – should achieve an emission-free new car fleet sooner. Lemke did not comment on a specific date for this. According to Greenpeace, no more climate-damaging cars with internal combustion engines should be sold in Europe after 2028 in order to meet the 1.5-degree target.

Lemke also announced, “Internal combustion engines powered by e-fuels are only an option outside the CO2 fleet limits after 2035.” With this, the German government is now taking a clear position; previously, there had been debates within the government about the use of e-fuels in passenger cars. This would mean that e-fuels could only be used in heavy-duty transport, tractors, or construction vehicles. dpa/luk

ECB: Climate change and Ukraine crisis drive energy price inflation

The trend to move away from climate-harming energy sources, which has been accelerated in the wake of the Ukraine crisis, will come at a high price, according to ECB Director Isabel Schnabel. The measures to protect the planet and for the self-determination of free societies would usher in a “new era of energy price inflation,” the German economist warned on Thursday at the monetary policy conference “The ECB and its Watchers” in Frankfurt. “Steering through this phase will require solidarity and political cooperation at all levels – in Europe and at the national level,” she added.

Monetary policy will also play its part in the transition to a climate-friendly economy. It will ensure that consumers’ purchasing power is protected and that the expectation of high inflation does not take root in people’s minds. At the same time, monetary policy will continue to support growth and employment.

The Russian invasion of Ukraine is already making energy noticeably more expensive, driving up inflation. The Institute for the World Economy (IfW) has lowered its growth forecast for Germany in 2022 to 2.1 percent as a result of the Russian war, cutting it nearly by half. The conflict is also exacerbating already existing problems for Germany’s highly interconnected industry. Around 60 percent of companies report additional disruptions in the supply chain and logistics as a result of the war, according to a survey by the Association of German Chambers of Industry and Commerce (DIHK).

Global economy is slowing down

The war in Ukraine will also slow down the global economy, according to the OECD. Global economic growth is likely to be more than one percentage point lower in 2022 as a result of the conflict, an OECD spokesman said on Thursday. In addition, “inflation, which was already high at the beginning of the year, could increase by at least another two percentage points.” Commodity prices have risen dramatically, and Russia and Ukraine collectively account for about one-third of global wheat exports. “Disruptions in wheat, maize and fertilizer supplies pose a risk to global food security and threaten to exacerbate famine.”

Rising metal prices could cause problems in many economic sectors, such as aircraft and vehicle manufacturing and semiconductor production. “The supply shortage of raw materials triggered by the war is further exacerbating pandemic-related supply disruptions,” the Organization for Economic Co-operation and Development (OECD) said.

ECB signals flexible course

The ECB will keep a focus on the impact of the war in Ukraine in its policy orientation. If necessary, all necessary steps will be taken should the consequences of the conflict intensify and threaten to stall the economic recovery, ECB chief Christine Lagarde said at the conference “The ECB and its Watchers”. The ECB will ensure that monetary policy is implemented smoothly. If necessary, new instruments could also be created.

At 5.9 percent, the inflation rate in the eurozone has recently already shot miles above the ECB’s target of 2.0 percent. Against this backdrop, the central bank has decided to scale back its multi-billion bond purchases more quickly and end them in the summer if the inflation outlook permits. This would pave the way for the interest rate reversal, which the US Federal Reserve already completed on Wednesday. Similar to Europe, energy is also a strong price driver there. rtr

Sanctions: Commission task force intensifies efforts

The European Commission’s ‘Freeze and Seize Task Force‘ has intensified its activities at the international level, the EU Commission announced on Thursday. The task force was established to coordinate the enforcement of sanctions against Russian and Belarusian oligarchs at the EU level. It will cooperate with the newly established Task Force on Russian Elites, Proxies and Oligarchs (REPO), in which the EU, in turn, cooperates with G7 countries as well as Australia. Its goal is to ensure the effectiveness of the sanctions imposed on both sides of the Atlantic, the Commission says.

The Freeze and Seize Task Force is composed of the Commission, the national contact points of each Member State, Eurojust and Europol, and other EU bodies. Its purpose is to seize the assets of Russian and Belarusian oligarchs and, where permitted by national law. Under EU sanctions, all assets belonging to or controlled by listed persons are to be frozen. Currently, under EU sanctions related to Russian aggression against Ukraine, the assets of 877 individuals and 62 entities are frozen. klm

Data protection: enforcement problems occupy LIBE committee

At a hearing in the European Parliament’s LIBE Committee, experts voiced strong criticism of the enforcement of the General Data Protection Regulation (GDPR). Although data protection law has been harmonized at the European level, implementation is lacking in several areas.

National administrative law plays a special role in this regard: It is decisive in the implementation of data protection procedures – but is not harmonized at the European level. Almost every member state has different rules, for example, on the duration of procedures or who can participate in them. “Procedural rules are currently the biggest bottleneck,” complained Max Schrems of the Austrian organization None of Your Business (NOYB). In Ireland, for example, NOYB has been arguing with the data protection supervisory authority for three years over whether it is the main supervisory authority for Google. NOYB claimed to have never even received an answer from the Bulgarian data protection supervisory authority, and is considering going there in the future.

“National procedural rules determine how quickly and firmly cases under European law are handled,” said Tobias Ludin of the Norwegian Data Protection Authority, which operates jointly with EU member state authorities on data protection law, for example. Maria Magierska of the European University Institute also called it “not helpful that no specific deadlines exist for a draft decision” in the GDPR.

Mix of success and failure

In particular, whether the current method, under which the data protection supervisory authority of a member state is solely responsible for the procedure where a company has its headquarters or principal place of business within the EU, prompted some critical comments from the experts. Tobias Ludin suggested that other procedures might make more sense if, for example, affected parties were located in all or at least two-thirds of the states. The experts also praised the role of the European Data Protection Board, but stated that the will for cooperation among the individual authorities was essential and that the cooperation body of the data protection supervisory authorities was not sufficiently equipped either.

Overall, the GDPR is a mixture of success and failure, according to Ursula Pachl from the European consumer umbrella organization BEUC. Positive is the increased attention for the issue and the global impact of the GDPR. On the negative side, however, she said that some supervisory authorities were acting solely on their own account, that companies were still trying to maximize data collection, and that the enforcement mechanisms were not rigid enough.

From a corporate perspective, Vodafone’s Global Privacy Officer Mikko Niva explained that the GDPR has been established as the basic standard for global business. There are practical problems, especially with information requests, where large amounts of data have to be sorted manually. Structurally, data portability, in particular, is not sufficiently regulated; successful portability rules such as those for number portability or the PSD2 directive would be specifically geared to certain cases and more successful.

Problems also relevant for DSA and AI Act

Experts also criticized the fact that in some cases, the data protection commissioners are still inadequately equipped by the member states. For example, the head of the Spanish data protection supervisory authority reported that she had had to deal with almost 15,000 complaints last year. However, it is not only a question of material and staff resources, but also a question of efficiency, according to other experts: Spain has managed to achieve significantly more cases with comparable resources than the Irish DPC, according to Max Schrems.

The majority of invited experts doubted that the problems with data protection supervision would be resolved in the foreseeable future. Max Schrems said that there was currently a trend toward civil lawsuits. This would mean that the data protection supervisory authorities would hand over their influence to the courts, which, however, would not necessarily be well-positioned to deal with the issue either.

Looking ahead to other upcoming EU legislation, Maria Magierska stressed that the problems now identified with the GDPR enforcement are also representative of upcoming legislations, for example with regard to the Digital Services Act and the AI Regulation: “We have to keep in mind that all this is just the beginning of our problems with digital human rights enforcement.”

Commission proposal: article X to regulate messenger interoperability in DMA

The organization Lobbycontrol has published a proposal from the EU Commission for the ongoing trilogue on the Digital Markets Act (DMA), which is intended to clarify the rules for interoperability regulations between messenger services. Article X, which means it is not yet numbered, includes much more specific rules on interoperability than the proposal of the European Parliament. So-called “number-independent interpersonal communications services” provided by gatekeepers should, according to the Commission’s proposal, have to fulfill interoperability with other providers in the following areas:

End-to-end text messaging between two individual users
End-to-end voice telephony between two individual users
End-to-end video telephony between two individual users
End-to-end image and video sharing between two individual users
End-to-end encryption for the above functionalities

This would fall well short of the requirements set by the MEPs. In their negotiating position, they had envisaged considerably broader interoperability requirements for messenger services and social networks: Connection option should enable “functional interaction with these services” under “objectively the same conditions and in the quality that is available to or used by the gatekeeper, associated company or its partners.” This would include the full scope of the respective services.

“This proposal by the Commission would be a step backward,” says Max Bank of Lobbycontrol. “It’s missing a key point, which is group messaging. If it is not included, it is a farce. Audio messaging is also not included.” Moreover, the list would need to be expandable with future functionality, Bank demands. For the Lobbycontrol representative, one thing is certain: “This Commission proposal is unacceptable if gatekeepers are to be denied their market power. Parliament cannot accept this.” fst

Activists accuse Facebook of double standards for crisis areas

Facebook owner Meta Platforms is temporarily allowing Facebook and Instagram users in some countries to incite violence against Russians and Russian soldiers in connection with the invasion of Ukraine. It also reportedly allows praise of the far-right Azov Battalion “exclusively in connection with the defense of Ukraine” – a decision that experts say highlights the platform’s bias.

This move represents a “glaring” double standard compared to Meta’s failure to curb hate speech in other war zones, said Marwa Fatafta of Access Now. “The disparity of action compared to Palestine, Syria, or other non-Western conflicts underlines that inequality and discrimination by tech platforms is a characteristic, not a mistake,” said Fatafta, Policy Manager for the Middle East and North Africa.

Last year, hundreds of posts by Palestinians protesting displacement from East Jerusalem were removed by Instagram and Twitter, which later claimed technical errors were to blame. Digital rights groups criticized the censorship and pushed for more transparency in setting and enforcing moderation policies.

A policy for all?

Facebook had come under criticism for failing to curb incitement to conflict from Ethiopia to Myanmar. United Nations investigators said Facebook played a key role in spreading hate speech that fueled violence against Rohingya Muslims. In December, Rohingya refugees filed a $150 billion class-action lawsuit in California accusing Facebook of failures to monitor content and against the minority in 2017. Meta recently announced it would “explore the feasibility” of an independent human rights review of its work in Ethiopia after its oversight panel recommended a review.

Exception for Ukraine

In a report Wednesday, Human Rights Watch said tech companies must demonstrate that their actions in Ukraine are “procedurally fair” and that they avoid “arbitrary, biased or selective decisions” by relying on clear, established and transparent processes.

In the case of Ukraine, Meta explained that native Russian and Ukrainian speakers monitor the platform around the clock and that the temporary change was to allow forms of political expression. “This is a temporary decision made under extraordinary and unprecedented circumstances,” Nick Clegg, president of global affairs at Meta, said in a tweet, adding that the company was focused on “protecting people’s rights to speech” in Ukraine. Russian authorities have blocked Facebook, Instagram and Twitter in Russia. rtr

EU raises tariffs on stainless steel imports from India and Indonesia

The European Union will increase tariffs on stainless steel products from India and Indonesia after determining they benefited from unfair subsidies, including some from China under its Belt and Road investment program.

The European Commission, which conducted the investigation, has set the anti-subsidy duties on stainless steel cold-rolled flat products at rates of between 4.3% and 21.4%, the EU official journal said on Wednesday. They will add to anti-dumping tariffs already in place.

Indonesia’s IRNC faces a new tariff of 21.4%, bringing the overall rate, including anti-dumping duties, to 30.7%. The new rates for India’s Jindal Stainless Ltd and Jindal Stainless Hisar Ltd are 4.3%, taking the total tariff to 14.3%.

The Commission said the subsidies took the form of preferential loans, duty exemptions and cheap provision of raw materials, partly because of export restrictions for those materials. Indonesia also benefited from subsidies to help build up its stainless steel industry from China, which in return benefited from taking up a larger share of Indonesia’s nickel ore exports.

Measures against unfair subsidies

This is the European Union’s second investigation into trans-national Chinese subsidies. In 2020, the bloc imposed duties on glass fibre fabrics and products from Chinese companies or joint venture operations in Egypt. The Commission said that the new tariffs, to take effect from Thursday, aim to remedy damage caused to EU producers such as Acerinox and Outokumpu.

“Today we are taking action to counter unfair state-sponsored subsidies in India and Indonesia that directly hurt our workers and companies in this vital industrial sector,” EU trade chief Valdis Dombrovskis said.

Indonesia said the findings of the EU’s investigation did not take into account arguments and evidence its government had presented during the investigation. That had “clearly proved that there is no subsidy from the Indonesian government to the Indonesian stainless steel industry,” said Natan Kambuno, a director at the Trade Ministry. He said the government would coordinate with the affected company regarding the duties. rtr

Markus Pieper: a conservative for renewables

Markus Pieper travels a lot in his day-to-day work, between Brussels, Berlin, Düsseldorf and Münster. The 58-year-old is active at the European level as well as in federal, state and local politics. This can be quite challenging, especially when it comes to his favorite topic, energy policy: “The pan-European view of energy policy is different from the German one, and it’s again different from the North Rhine-Westphalian and Muenster ones,” emphasizes the father of three, who lives in the municipality of Lotte near Osnabrueck and is the Parliamentary Secretary of the CDU/CSU Group in the EU Parliament in Brussels.

Last November, the CDU politician spoke about the Renewable Energies Directive in an interview with Europe.Table. At that time, no one would have believed that Putin would attack Ukraine and that the European Union would respond by accelerating its energy transition.

Europe wants to become independent of Russian gas, while Germany is in the process of phasing out nuclear power and coal, energy-intensive companies in North Rhine-Westphalia require cost-compatible solutions, and the Muenster region is strongly committed to the expansion of renewable energies. “For me, in my day-to-day work, the trick is to bring the various expectations together and provide the appropriate answers at each level,” Markus Pieper explains.

Market-based solutions for climate protection

Clear guidelines help him to achieve this: These include a clear commitment to Europe as a community of peace and values and a commitment to free-market solutions, also and especially in climate protection, he emphasizes. On the subject of understanding values: “I joined the CDU because my eldest daughter’s kindergarten was not allowed to celebrate a Christian Christmas – and that in a small village with 1,200 people, where the nativity play was banned, like everything else related to religion,” recalls Markus Pieper, whose eldest daughter is now 27 years old.

To him, it is the Christian history that culturally shapes our society – and in the CDU, which sees itself as a people’s party, he still feels in good hands today. The party successfully combines social, liberal and value-oriented positions in the interests of society as a whole.

For fifteen years, Markus Pieper himself worked in business, for example as IHK Managing Director, before a happy coincidence led him into politics more than two decades ago. “In Muensterland, a candidate had dropped out at short notice. I was brought into the picture by Karl-Josef Laumann, the CDU district chairman, because of my experience with small and medium-sized businesses, and was then able to prevail against six other candidates,” he recounts.

As a politician, he says, he benefits from the fact that he knows the perspectives of the companies and the chambers of industry and commerce and can always combine this with environmental and employee concerns, as is the case now with the shortage of skilled workers in the wake of the expansion of renewable energies. This makes Markus Pieper a border crosser who has to wear many different glasses and who is always able to reconcile different perspectives. Janna Degener-Storr

EUROPE.TABLE EDITORS

Till
Hoppe

Charlotte
Wirth

Falk
Steiner

Timo
Landenberger

Corinna
Visser

Lukas
Knigge

Eric
Bonse

Sarah
Schaefer

Manuel
Berkel

Lisa-Martina
Klein

Markus
Grabitz

Stephan
Israel

Claire
Stam

Environment Council: ETS2 + Serbia accession talks + Battery regulation + Data protection

Feature

ETS 2: cracked, but not dead yet

Social imbalance caused by ETS 2

Hardly any alternatives to the ETS 2

ETS rapporteur counts on price relaxation

Great skepticism about the Social Climate Fund

Renew wants to suspend accession talks with Serbia

Suspensions would have serious repercussions

‘Gas from Putin – or freeze‘

EU-Monitoring

18.03.2022_Monitoring

News

EU Battery Regulation in final stages

Mandatory labeling from 2024

Battery with origin passport

Federal government supports phasing out of internal combustion engines in 2035

ECB: Climate change and Ukraine crisis drive energy price inflation

Global economy is slowing down

ECB signals flexible course

Sanctions: Commission task force intensifies efforts

Data protection: enforcement problems occupy LIBE committee

Mix of success and failure

Problems also relevant for DSA and AI Act

Commission proposal: article X to regulate messenger interoperability in DMA

Activists accuse Facebook of double standards for crisis areas

A policy for all?

Exception for Ukraine

EU raises tariffs on stainless steel imports from India and Indonesia

Measures against unfair subsidies

Profile

Markus Pieper: a conservative for renewables

Market-based solutions for climate protection

Europe.Table Editorial Office

EUROPE.TABLE EDITORS

Feature

ETS 2: cracked, but not dead yet

Social imbalance caused by ETS 2

Hardly any alternatives to the ETS 2

ETS rapporteur counts on price relaxation

Great skepticism about the Social Climate Fund

Renew wants to suspend accession talks with Serbia

Suspensions would have serious repercussions

‘Gas from Putin – or freeze‘

EU-Monitoring

18.03.2022_Monitoring

News

EU Battery Regulation in final stages

Mandatory labeling from 2024

Battery with origin passport

Federal government supports phasing out of internal combustion engines in 2035

ECB: Climate change and Ukraine crisis drive energy price inflation

Global economy is slowing down

ECB signals flexible course

Sanctions: Commission task force intensifies efforts

Data protection: enforcement problems occupy LIBE committee

Mix of success and failure

Problems also relevant for DSA and AI Act

Commission proposal: article X to regulate messenger interoperability in DMA

Activists accuse Facebook of double standards for crisis areas

A policy for all?

Exception for Ukraine

EU raises tariffs on stainless steel imports from India and Indonesia

Measures against unfair subsidies

Profile

Markus Pieper: a conservative for renewables

Market-based solutions for climate protection

Europe.Table Editorial Office

EUROPE.TABLE EDITORS

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