The liberal Renew Group in the European Parliament wants to find a new chairperson by mid-next week. Following extensive discussions, the group’s extended leadership team, the so-called Bureau, agreed on this yesterday. The leadership post in the third-largest group became vacant a week ago because the previous chair, Stéphane Séjourné, was appointed French Foreign Minister.
The French delegation will probably continue to claim the post – although this is certainly controversial among its own MEPs. After all, the cards will be reshuffled after the European elections in less than six months and Emmanuel Macron’s party colleagues will have to do a lot of convincing: The French claim to power is not only met with little approval from certain MEPs in the parliamentary group.
According to reports, the favorite at Renaissance is budget politician Valérie Hayer. It is still unclear whether Séjourné’s previous first deputy, Malik Azmani, will run for the post. The Dutchman’s opponents point to a possible collaboration between his VVD party and the radical Geert Wilders in The Hague.
We hope you have a wonderful day!
The efforts of the EU member states to achieve their ambitious climate targets have not yet been sufficient. This is not only revealed by the inadequate national energy and climate plans of the EU member states (NECP), which show gaping holes, particularly in measures against transport and building emissions, to achieve the 2030 targets. Now the European Science Advisory Board on Climate Change (ESABCC) has also criticized that there are shortcomings in existing and planned legislation relating to the EU’s climate neutrality targets for 2050.
To achieve the EU’s climate targets, greater efforts are needed in all sectors, particularly in the areas of buildings, transport, agriculture and forestry, according to the report published on Thursday. “To stay on track, we need to ensure that today’s measures are in line with our long-term goals and prepare for even greater reductions after 2030″, analyzes the Chairman of the Advisory Board and environmental economist Ottmar Edenhofer.
Specifically, the committee makes 13 key recommendations, both short-term and long-term. Among them are:
For economist Edenhofer, the expansion and further revision of European CO2 pricing in the EU Emissions Trading Scheme (ETS) plays a crucial role. A comprehensive system for CO2 pricing would also leave fewer loopholes for the unsustainable excessive use of biomass, for example, he explains. In addition to the agricultural and land use sector, the ETS must also be expanded to include so-called diffuse emissions from the use of fossil fuels. Extending the Carbon Border Adjustment Mechanism (CBAM) to fossil fuel imports would also provide incentives for more climate protection abroad and open up revenue opportunities for the EU.
Edenhofer also emphasizes that compensation measures are urgently needed for the increased cost of living due to rising CO2 prices, especially if they are extended to the agricultural sector. A just and fair transition is necessary to maintain public support for climate protection measures. To ensure that people on low incomes are not burdened more, revenue from carbon pricing must be used to make low-emission alternatives affordable, the report states – in other words, a kind of climate fund. The scientists also call for revenues from the CBAM to be explicitly reserved for climate protection measures.
The Social Climate Fund, which is fed by revenue from ETS 2, is already an instrument for cushioning price increases in the transport and building sectors. However, it is still completely unclear whether the resources are even sufficient for the fund’s current targets (around €87 billion) – let alone if the ETS is expanded. The researchers see a need for rapid clarification here.
The role of technological CO2 removal and its storage or use must also be clarified quickly, writes the expert panel. Until 2050, CCU/CCS will only play a limited role in the energy supply, as the technologies are less efficient than renewable energies and pose higher risks. An EU definition for unavoidable residual emissions, for example from the agricultural sector or industry, for which CO2 capture is necessary, is therefore needed as soon as possible.
Everyone involved was aware that an own-initiative motion from the European Parliament three months before the last plenary session had no chance of being considered by the Commission with a legislative proposal in this legislative period. And yet it was important for the European Parliament to demand that the Commission address the issue of remuneration for streaming services with a broad majority (530 votes). However, the broad, intergroup agreement was bought at a high price: instead of concrete demands, the text adopted on Wednesday afternoon mainly contains requests for examination.
The EU Commission is to examine whether and to what extent the streaming ecosystem is damaging cultural diversity and whether artists and authors are being remunerated appropriately. In principle, streaming services pay their contractual partners, usually larger music labels, a small sum, usually a fraction of a euro cent for each track accessed. The market leader Spotify from Sweden in particular is regularly criticized: the remuneration rules would benefit the most popular artists, such as Taylor Swift or Ed Sheeran, while unduly disadvantaging artists at the lower end of the popularity scale.
The rapporteur, S&D MEP Iban García del Blanco, highlights one point of criticism: The aim is to “ensure transparency in the algorithms and recommendation tools of streaming services”. From the artists’ point of view, there is a major problem here: the streaming providers’ recommendation mechanisms are black boxes, and it is assumed that particularly popular artists are regularly given a higher weighting and recommended to users – which in turn would benefit them in terms of revenue. However, the parliamentarians refrained from making more specific reform proposals on how fees should be distributed more fairly in favor of the broad consensus.
However, some MEPs believe that a quota system is a relevant lever: The musicians with the widest reach on the platforms are often US or UK artists – with a few exceptions, such as in the case of India. The own-initiative report therefore also calls on the Commission to ensure European cultural diversity.
This could be achieved through quotas in the recommendation systems, for example, if the user gave regional artists priority depending on their location. Niche artists must be able to make a living from their work, demands shadow rapporteur Niklas Nienaß (Greens), which is why such regional quotas are needed, among other things.
In their text, MEPs also call for an analysis of the impact of artificial intelligence on the music market. But much is still unclear here. However, MEPs would like to see mandatory labeling of AI content, and the legal status of artists should also be expanded.
There is still a lot of confusion here. With the DSM Directive, the EU created a copyright text and data mining barrier in 2019, which AI companies read as a carte blanche for the analysis of works. New works are now being created automatically on this basis without the originals even having to be stored as samples. However, does the copyright barrier really justify this use? What copyright claims can be asserted at all for a work without a human author? What could an appropriate remuneration arrangement look like? That depends both on the final text of the AI Act and on the legal assessment – a lot of material for the Commission’s legal service to examine.
On the surface, the parliamentarians’ criticism is therefore directed at Spotify, Apple Music, Deezer and similar providers. However, they are actually referring to many other players – not least the major labels, who conduct the key negotiations with the service providers. According to all those involved, they would prefer it if legislation could be dispensed with in the end – by the industry itself resolving the problems raised.
Industry leader Spotify would certainly agree with this – but is letting the industry association Digital Music Europe take the lead in its assessment of the EP’s own-initiative report: European music is flourishing because European fans love European and especially local music and consistently choose to listen to it, according to its chair Olivia Regnier.
“We therefore question the report’s suggestions that regulation of music streaming is necessary and call on policymakers to conduct a thorough analysis of the diversity and artistic success of music streaming to obtain objective facts before considering any action.” Parliamentarians will find this recommendation all too familiar, as Regnier is also still a stakeholder at Spotify.
Jan. 22-23, 2024; Cologne (Germany)
EASA, Workshop RefuelEU Aviation environmental labeling scheme
The European Authority for aviation safety (EASA) addresses the status, the methodology, data ingestion and treatment as well as the integration of the labeling into the ecosystem of emissions communication. INFO & REGISTRATION
Jan. 23-25, 2024; Berlin (Germany)/online
PE, Symposium Berlin Demography Days 2024: Overcoming crises – shaping policy for an uncertain future
Population Europe (PE) provides information on the effects of crises on population policy and vice versa. INFO & REGISTRATION
Jan. 23, 2024; 8:30 a.m.-7 p.m., Brussels (Belgium)
EIT, Conference EdTech Conference
The European Institute of Innovation & Technology (EIT) discusses the current state of EdTech in Europe. INFO & REGISTRATION
Jan. 23, 2024; 1-2:30 p.m., Brussels (Belgium)
ECFR, Conference Re-Engaging with Neighbors in a State of War and Geopolitical Tensions
The European Council on Foreign Relations (ECFR) intends to assist the EU in refining its foreign policy toolbox, including its enlargement and neighborhood policies. INFO & REGISTRATION
Jan. 23, 2024; 3-5:30 p.m., online
ERCST, Workshop State of the European Hydrogen Market – Stakeholder consultation
The Roundtable on Climate Change and Sustainable Transition (ERCST) brainstorms on the outline and content of the 2024 State of the European Hydrogen Market Report. INFO & REGISTRATION
Jan. 23, 2024; 5:30 p.m., Brussels (Belgium)
ECSA New Year’s Reception 2024
The European Community Shipowners’ Associations (ECSA) hosts its New Year’s Reception 2024. INFO & REGISTRATION
The European Parliament wants to massively increase its influence in the coordination of economic and budgetary policy as part of the new European debt rules. This is set out in the mandate for the negotiations on the new EU fiscal rules, which MEPs agreed on in Strasbourg.
Subject to appropriate confidentiality rules, the Commission is to provide Parliament with all necessary relevant documents and information “at the same time and under the same conditions” as the Council, for example in the case of medium-term budgetary structural plans. Currently, Parliament does not have access to a great deal of internal information on the coordination of economic and budgetary policy.
With the mandate from Parliament, the way is now clear to establish the legal framework for the new EU fiscal rules. Parliament and the member states have until April at the latest to do this with the mediation of the Commission, as the House of Representatives will then dissolve given the upcoming European elections. EU Vice-President Valdis Dombrovskis recently made it clear once again on the fringes of the Ecofin that time is of the essence. The background to this is that the new debt rules should already be applied for the 2025 financial year if possible. The Commission intends to present its position on this in February.
The realignment of the EU fiscal regime had become necessary as the previous rules of the Stability and Growth Pact had proven to be too strict and rigid. The new rules are intended to align the budget plans more closely with the individual starting position in the individual member states without undermining the stability and sustainability of the budgets. The EU member states agreed on this approach at the end of December after months of controversial discussion.
With the new fiscal rules, the core figures of the current Stability and Growth Pact remain untouched: A maximum debt of 60% of gross domestic product (GDP) and a maximum new debt of 3% of GDP. However, in order to ensure a consistent consolidation policy, countries with a debt ratio of over 90 percent of GDP are to reduce their debt level by one percentage point per year. For countries with a ratio of 60 to 90 percent of GDP, the reduction is 0.5 percentage points.
This safeguarding of a targeted consolidation of public finances, which Germany in particular had insisted on, was also adopted by the MEPs. In other points, in addition to their own greater involvement, which should also extend to the entire European Semester process, they also go well beyond the position of the member states. For example, MEPs are calling for the establishment of an independent European Fiscal Board, which must not receive instructions from either the Commission or the member states.
The committee is to assume an advisory function for the coordination of European economic policy and thus create a neutral perspective on the work of the Commission. The Commission should have a seat on the committee, albeit without voting rights. To increase transparency in the implementation of the multi-annual national budget plans, MEPs are also in favor of setting up a scoreboard to document progress in the implementation of the medium-term national budget structure plans, including the current status of the net expenditure path as well as investments and reforms. The scoreboard is to be updated twice a year and will be launched this year.
In their mandate, MEPs once again make it clear that a high level of public investment is necessary to achieve the European goals of the green and digital transitions. Against this backdrop, they advocate the creation of a common investment instrument at EU level to strengthen the investment framework. The experiences of instruments such as NextGenerationEU and SURE should serve as inspiration for this. However, the establishment of further EU bonds is strictly rejected by several member states, including Germany. cr
At the beginning of February, the EU Commission presented its proposal for the EU’s 2040 climate target as well as a strategy for dealing with industrial emissions in order to close the legal loopholes for CCS. A draft of this industrial carbon management strategy, which is available to Table.Media, shows that the EU will have to capture up to 450 million tons per year by 2050 in order to be climate-neutral in the same year.
The establishment of a “cross-border, freely accessible CO2 transport network” is intended to create an internal market for captured carbon, which is then either stored underground or processed industrially. The details of the necessary investment sums and pipeline kilometers are still open in the draft.
The EU is currently planning to use the Net-Zero Industry Act to store 50 million tons of CO2 underground every year from 2030. According to the draft, however, the Commission apparently expects to be able to capture 80 million tons of CO2 per year. According to the draft, it is therefore planning to provide more economic incentives for the identification and construction of additional storage capacities.
This could be done either by integrating CO2 removal certificates into the ETS or by creating a separate trading mechanism that would be directly or indirectly linked to the ETS. Finally, at least 200 million tons of CO2 should be stored each year by 2040, according to the draft strategy.
Apparently, the Commission is also planning to expand the industrial use of captured carbon. It says that “additional measures” are needed to recognize the climate benefits of capturing CO2 instead of fossil carbon for other applications. For example, it could be used as a raw material for the chemical industry, for the production of polymers, plastics, solvents, paints, cleaning agents, cosmetics and pharmaceuticals. The Commission estimates that the chemical sector alone requires around 125 million tons of CO2 per year, or around 450 million tons of CO2 equivalents. This demand is currently covered by fossil CO2.
The Commission therefore wants to create a legal framework to track the origin, transport and use of captured CO2 and create a price incentive for its use. luk/ber
On Wednesday, the EU Parliament adopted the trilogue agreement on the ban on greenwashing and misleading product information (“Empowering Consumers for the Green Transition“). The Council must now also give its approval before the directive can enter into force.
The law is intended to protect consumers from misleading advertising and help them make better purchasing decisions. Among other things, several practices related to greenwashing and the planned wear and tear of products will be added to the EU list of unfair commercial practices. General environmental claims such as “environmentally friendly”, “natural”, “biodegradable”, “climate neutral” or “eco” will be banned unless they are substantiated.
Unfounded statements about shelf life will also be prohibited in the future: For example, manufacturers will no longer be allowed to encourage products to be replaced earlier than absolutely necessary. This is often the case with printer ink, for example.
In addition, only sustainability labels based on recognized certification systems or introduced by government agencies will be permitted. A new label will be introduced to highlight guarantees that go beyond the statutory warranty.
If the directive is finally adopted by the Council, it will then be published in the Official Journal. The member states then have 24 months to transpose it into national law. leo
In the future, NGOs that receive money from the EU budget will have to disclose the use of the funds down to the last recipient as well as the origin of all funding. In addition, recipients of EU taxpayers’ money will be required to make all meetings with MEPs, employees and representatives of other EU institutions transparent if EU legislation is affected. This is provided for in the own-initiative report by Markus Pieper (CDU), which was adopted by the European Parliament.
Pieper was unable to push through the plan to call on the Commission to submit a legislative proposal for the regulation of NGOs. The reference to an NGO in the draft report, which the Commission had founded specifically to lobby MEPs on the Nature Restoration Act, was also deleted. mgr
Commission President Ursula von der Leyen has justified the Commission’s release of €10.2 billion to Hungary in the European Parliament. “Since the beginning of the mandate, the Commission’s aim has always been to persuade the Hungarian government to implement reforms.” In May, for example, the Commission called on Hungary to implement reforms to restore the independence of the judiciary in the country. As a result, the Hungarian government has also implemented the requested reforms in the area of the judiciary. “Hungary has delivered what the Commission asked for.”
This was von der Leyen’s response to the massive criticism of the Commission’s decision by all pro-European groups in the European Parliament immediately before the regular EU summit in December. Von der Leyen went on to explain that the Commissioners involved in the decision, Didier Reynders (Justice), Nicolas Schmit (Social Affairs) and Elisa Ferreira (Cohesion), were prepared to give an account of their actions to the Parliament. This Thursday, the European Parliament will vote on a resolution that massively criticizes the release of the funds, calls on the Commission to be accountable to the Parliament and calls on the Parliament’s Committee on Legal Affairs to examine an action before the European Court of Justice (ECJ) and, if necessary, to take the necessary steps.
The Commission continues to withhold further EU funds for Hungary amounting to around €20 billion due to violations of the rule of law. Von der Leyen made it clear: “These funds will be blocked until the government in Hungary has completed the required reforms.”
EPP group leader Manfred Weber said: “It is important that the Commission now presents a fact-based review of the criteria according to which the release was made .” Weber also appealed to the Council: “The Council has had a motion on the table for a long time to pursue the Article 7(1) procedure against Hungary.” The heads of state and government must now finally summon up the courage to act. Guy Verhofstadt from Renew accused von der Leyen of allowing herself to be blackmailed by Hungarian Prime Minister Viktor Orbán. The funds had been released in return for Hungary giving up its veto at the European Council against Ukraine’s accession. Verhofstadt demanded of the Commission President: “The compromises with Orbán must come to an end. Finally assume your role as guardian of the treaties.” mgr
The European Parliament is calling for closer collaboration with Central Asian states. The EU now has the opportunity to “expand its relations with Central Asia and play a greater role in the region”, emphasized European Parliament members in a resolution adopted with a large majority on Wednesday. Brussels should take advantage of the opportunity to “promote mutually beneficial cooperation and offer Central Asia a partnership”, not least to counteract the influence of China and Russia in the region. A first summit meeting between representatives of the EU and Central Asia is reportedly scheduled for 2024.
Currently, Vice President of the European Commission, Margaritis Schinas, is on a tour of the five Central Asian states. On Wednesday, Schinas was in Uzbekistan. The trip is in preparation for an investor forum on the Trans-Caspian Transport Corridor scheduled to take place in Brussels at the end of the month. Chinese President Xi Jinping held a summit with the heads of state of the “Stans” last May.
On Wednesday, the European Parliament also voted on a report on China’s influence on Europe’s security and defense policy. In the document, EU parliamentarians warn against excessive dependence on China for certain raw materials and the outflow of strategically important military know-how.
The parliamentarians also called on the European Commission to present the parliament, before the end of the current legislative period, with a “detailed analysis of the risks for trade related to technologies such as semiconductors, quantum computing, blockchain, space, artificial intelligence, and biotechnology, as well as the possible action needed by the EU in these areas”. Resolutions represent the positions of the European Parliament on specific issues; they are not binding on the European Commission. ari
The planned criminal law reform and the dissolution of a special public prosecutor’s office to combat corruption in Slovakia have caused “deep concern” among members of the European Parliament. On Wednesday, they passed a resolution by 496 votes out of a total of 630, calling for a close examination of the plans. In addition, the EU Commission should take measures “to guarantee the rule of law and the independence of the judiciary”.
The left-wing Prime Minister Robert Fico presented the changes in December. Among other things, he wants to soften the protection for whistleblowers and reduce the penalties for financial crime. Since then, there have been regular protests in the country, led by liberal and conservative opposition parties. They criticize that the reform serves to protect allies of the current government from prosecution. It would also jeopardize EU payments if the changes were seen as undermining the rule of law. EU Justice Commissioner Didier Reynders announced measures in December if the reforms violate EU law.
Fico described the European Parliament’s resolution as interference in Slovakia’s internal affairs. “Political opponents, opposition MEPs at home and abroad are against us and are ready to use any dirty trick in the political struggle.” rtr
Nicolas Schmit will be the third politician that the European Socialist Party (PES) family has sent as its lead candidate in the European elections. He was preceded by two politicians who had the talent to be a tribune of the people: Germany’s Martin Schulz was the Socialists’ top campaigner in 2014 and the Dutchman Frans Timmermans was in the running in 2019. Compared to his two predecessors, Luxembourg’s Schmit is less combative.
Now that Schmit’s leading role in the upcoming European election campaign is as good as certain, leading Social Democrats are making no secret of it: they know that the 70-year-old is a man of quiet tones. If party leader Stefan Löfven, himself a rather sedate politician, were to look for a barnstormer, his choice would not fall on the Social Affairs Commissioner, who has been in office since 2019.
The fact that the Socialists chose Schmit as their lead candidate at their election congress in Rome on March 2 also has something to do with a lack of alternatives. The Socialists’ job advertisement was for a non-male candidate, preferably with government experience and young. However, to the disappointment of many comrades, the person who embodied these attributes and long looked like a natural front-runner has turned her back on politics and left: Sanna Marin – head of government in Finland until the summer and leader of the Finnish Socialist Party – is no longer interested in politics and now works for the think tank of former British Prime Minister Tony Blair. When the PES application deadline expired yesterday, Schmit was the only candidate. Perseverance pays off: He had made it clear early on behind the scenes that he was interested in the job.
In fact, the married father of several children brings qualities with which he can score points in the election campaign. As Social Affairs Commissioner in the Von der Leyen Commission since 2019, he stands for the party’s core issues: he will claim to have implemented the Socialists’ election promise from the last election campaign: a European minimum wage. The fact that the EU minimum wage will never be expressed in euros and cents, as is the case in Germany, for example, and that the Scandinavian countries do not have to join in – these quibbles will presumably be forgotten. Up to now, the EU Commission has had little competence in social policy.
Schmit will claim to have initiated a paradigm shift in EU policy towards more social policy. The Social Affairs Commissioner also played a leading role in driving forward the legislative proposal to regulate platform work. The dossier, which is currently stalled, aims to strengthen the rights of employees who often earn money for Uber and other platforms on a precarious basis and as bogus self-employed workers. Jens Geier, head of the German SPD MEPs in the European Parliament: “Nicolas Schmit is Mr. Minimum Wage and one of the strongest members of the Von der Leyen Commission.” Schmit also has a better eye on the Socialists’ old core clientele than some of his comrades: He visited Thyssen in the Ruhr region with CDU social expert Dennis Radtke and got an idea of how industrial jobs are faring.
As a Luxembourger, Schmit also has qualities that make him not only Mister Minimum Wage, but also Mister Europe. Since his first job, which he took up in 1979 after completing his doctorate in business administration, he has either been involved in EU politics or Luxembourg’s national politics. And this, in turn, is closely interwoven with EU politics. For example, he, who also has a Master’s degree in French literature, was an advisor to the Luxembourg government when the intergovernmental conference on the Maastricht Treaties met in 1990 and 1991. When the Treaty of Nice was negotiated a decade later, he served as the personal representative of the Luxembourg Prime Minister.
His name was Jean-Claude Juncker, a Christian Democrat and later President of the Commission. The gene for working across party lines seems to be anchored in the DNA of Luxembourg politicians. Juncker and Schmit have another history together: before the 2014 election, Schmit was his country’s candidate for the post in the EU Commission. Juncker then stood as the lead candidate, won the election and moved to the top floor of the Berlaymont as Commission President. Schmit was left behind.
This time it could be another Luxembourger. The new Luxembourg government under Christian Democrat Luc Frieden has already nominated former EPP MEP Christoph Hansen for the next Commission. Given the polls, it is unlikely that Schmit will win the election and be able to lay claim to the top job. However, if the top jobs were to be awarded, the runner-up would be given a chance, for example as Foreign Affairs Commissioner. He may already have his sights set on this position: As a diplomat of many years’ standing and a fluent negotiator in French, German and English, he would certainly be qualified for the job. Markus Grabitz
The liberal Renew Group in the European Parliament wants to find a new chairperson by mid-next week. Following extensive discussions, the group’s extended leadership team, the so-called Bureau, agreed on this yesterday. The leadership post in the third-largest group became vacant a week ago because the previous chair, Stéphane Séjourné, was appointed French Foreign Minister.
The French delegation will probably continue to claim the post – although this is certainly controversial among its own MEPs. After all, the cards will be reshuffled after the European elections in less than six months and Emmanuel Macron’s party colleagues will have to do a lot of convincing: The French claim to power is not only met with little approval from certain MEPs in the parliamentary group.
According to reports, the favorite at Renaissance is budget politician Valérie Hayer. It is still unclear whether Séjourné’s previous first deputy, Malik Azmani, will run for the post. The Dutchman’s opponents point to a possible collaboration between his VVD party and the radical Geert Wilders in The Hague.
We hope you have a wonderful day!
The efforts of the EU member states to achieve their ambitious climate targets have not yet been sufficient. This is not only revealed by the inadequate national energy and climate plans of the EU member states (NECP), which show gaping holes, particularly in measures against transport and building emissions, to achieve the 2030 targets. Now the European Science Advisory Board on Climate Change (ESABCC) has also criticized that there are shortcomings in existing and planned legislation relating to the EU’s climate neutrality targets for 2050.
To achieve the EU’s climate targets, greater efforts are needed in all sectors, particularly in the areas of buildings, transport, agriculture and forestry, according to the report published on Thursday. “To stay on track, we need to ensure that today’s measures are in line with our long-term goals and prepare for even greater reductions after 2030″, analyzes the Chairman of the Advisory Board and environmental economist Ottmar Edenhofer.
Specifically, the committee makes 13 key recommendations, both short-term and long-term. Among them are:
For economist Edenhofer, the expansion and further revision of European CO2 pricing in the EU Emissions Trading Scheme (ETS) plays a crucial role. A comprehensive system for CO2 pricing would also leave fewer loopholes for the unsustainable excessive use of biomass, for example, he explains. In addition to the agricultural and land use sector, the ETS must also be expanded to include so-called diffuse emissions from the use of fossil fuels. Extending the Carbon Border Adjustment Mechanism (CBAM) to fossil fuel imports would also provide incentives for more climate protection abroad and open up revenue opportunities for the EU.
Edenhofer also emphasizes that compensation measures are urgently needed for the increased cost of living due to rising CO2 prices, especially if they are extended to the agricultural sector. A just and fair transition is necessary to maintain public support for climate protection measures. To ensure that people on low incomes are not burdened more, revenue from carbon pricing must be used to make low-emission alternatives affordable, the report states – in other words, a kind of climate fund. The scientists also call for revenues from the CBAM to be explicitly reserved for climate protection measures.
The Social Climate Fund, which is fed by revenue from ETS 2, is already an instrument for cushioning price increases in the transport and building sectors. However, it is still completely unclear whether the resources are even sufficient for the fund’s current targets (around €87 billion) – let alone if the ETS is expanded. The researchers see a need for rapid clarification here.
The role of technological CO2 removal and its storage or use must also be clarified quickly, writes the expert panel. Until 2050, CCU/CCS will only play a limited role in the energy supply, as the technologies are less efficient than renewable energies and pose higher risks. An EU definition for unavoidable residual emissions, for example from the agricultural sector or industry, for which CO2 capture is necessary, is therefore needed as soon as possible.
Everyone involved was aware that an own-initiative motion from the European Parliament three months before the last plenary session had no chance of being considered by the Commission with a legislative proposal in this legislative period. And yet it was important for the European Parliament to demand that the Commission address the issue of remuneration for streaming services with a broad majority (530 votes). However, the broad, intergroup agreement was bought at a high price: instead of concrete demands, the text adopted on Wednesday afternoon mainly contains requests for examination.
The EU Commission is to examine whether and to what extent the streaming ecosystem is damaging cultural diversity and whether artists and authors are being remunerated appropriately. In principle, streaming services pay their contractual partners, usually larger music labels, a small sum, usually a fraction of a euro cent for each track accessed. The market leader Spotify from Sweden in particular is regularly criticized: the remuneration rules would benefit the most popular artists, such as Taylor Swift or Ed Sheeran, while unduly disadvantaging artists at the lower end of the popularity scale.
The rapporteur, S&D MEP Iban García del Blanco, highlights one point of criticism: The aim is to “ensure transparency in the algorithms and recommendation tools of streaming services”. From the artists’ point of view, there is a major problem here: the streaming providers’ recommendation mechanisms are black boxes, and it is assumed that particularly popular artists are regularly given a higher weighting and recommended to users – which in turn would benefit them in terms of revenue. However, the parliamentarians refrained from making more specific reform proposals on how fees should be distributed more fairly in favor of the broad consensus.
However, some MEPs believe that a quota system is a relevant lever: The musicians with the widest reach on the platforms are often US or UK artists – with a few exceptions, such as in the case of India. The own-initiative report therefore also calls on the Commission to ensure European cultural diversity.
This could be achieved through quotas in the recommendation systems, for example, if the user gave regional artists priority depending on their location. Niche artists must be able to make a living from their work, demands shadow rapporteur Niklas Nienaß (Greens), which is why such regional quotas are needed, among other things.
In their text, MEPs also call for an analysis of the impact of artificial intelligence on the music market. But much is still unclear here. However, MEPs would like to see mandatory labeling of AI content, and the legal status of artists should also be expanded.
There is still a lot of confusion here. With the DSM Directive, the EU created a copyright text and data mining barrier in 2019, which AI companies read as a carte blanche for the analysis of works. New works are now being created automatically on this basis without the originals even having to be stored as samples. However, does the copyright barrier really justify this use? What copyright claims can be asserted at all for a work without a human author? What could an appropriate remuneration arrangement look like? That depends both on the final text of the AI Act and on the legal assessment – a lot of material for the Commission’s legal service to examine.
On the surface, the parliamentarians’ criticism is therefore directed at Spotify, Apple Music, Deezer and similar providers. However, they are actually referring to many other players – not least the major labels, who conduct the key negotiations with the service providers. According to all those involved, they would prefer it if legislation could be dispensed with in the end – by the industry itself resolving the problems raised.
Industry leader Spotify would certainly agree with this – but is letting the industry association Digital Music Europe take the lead in its assessment of the EP’s own-initiative report: European music is flourishing because European fans love European and especially local music and consistently choose to listen to it, according to its chair Olivia Regnier.
“We therefore question the report’s suggestions that regulation of music streaming is necessary and call on policymakers to conduct a thorough analysis of the diversity and artistic success of music streaming to obtain objective facts before considering any action.” Parliamentarians will find this recommendation all too familiar, as Regnier is also still a stakeholder at Spotify.
Jan. 22-23, 2024; Cologne (Germany)
EASA, Workshop RefuelEU Aviation environmental labeling scheme
The European Authority for aviation safety (EASA) addresses the status, the methodology, data ingestion and treatment as well as the integration of the labeling into the ecosystem of emissions communication. INFO & REGISTRATION
Jan. 23-25, 2024; Berlin (Germany)/online
PE, Symposium Berlin Demography Days 2024: Overcoming crises – shaping policy for an uncertain future
Population Europe (PE) provides information on the effects of crises on population policy and vice versa. INFO & REGISTRATION
Jan. 23, 2024; 8:30 a.m.-7 p.m., Brussels (Belgium)
EIT, Conference EdTech Conference
The European Institute of Innovation & Technology (EIT) discusses the current state of EdTech in Europe. INFO & REGISTRATION
Jan. 23, 2024; 1-2:30 p.m., Brussels (Belgium)
ECFR, Conference Re-Engaging with Neighbors in a State of War and Geopolitical Tensions
The European Council on Foreign Relations (ECFR) intends to assist the EU in refining its foreign policy toolbox, including its enlargement and neighborhood policies. INFO & REGISTRATION
Jan. 23, 2024; 3-5:30 p.m., online
ERCST, Workshop State of the European Hydrogen Market – Stakeholder consultation
The Roundtable on Climate Change and Sustainable Transition (ERCST) brainstorms on the outline and content of the 2024 State of the European Hydrogen Market Report. INFO & REGISTRATION
Jan. 23, 2024; 5:30 p.m., Brussels (Belgium)
ECSA New Year’s Reception 2024
The European Community Shipowners’ Associations (ECSA) hosts its New Year’s Reception 2024. INFO & REGISTRATION
The European Parliament wants to massively increase its influence in the coordination of economic and budgetary policy as part of the new European debt rules. This is set out in the mandate for the negotiations on the new EU fiscal rules, which MEPs agreed on in Strasbourg.
Subject to appropriate confidentiality rules, the Commission is to provide Parliament with all necessary relevant documents and information “at the same time and under the same conditions” as the Council, for example in the case of medium-term budgetary structural plans. Currently, Parliament does not have access to a great deal of internal information on the coordination of economic and budgetary policy.
With the mandate from Parliament, the way is now clear to establish the legal framework for the new EU fiscal rules. Parliament and the member states have until April at the latest to do this with the mediation of the Commission, as the House of Representatives will then dissolve given the upcoming European elections. EU Vice-President Valdis Dombrovskis recently made it clear once again on the fringes of the Ecofin that time is of the essence. The background to this is that the new debt rules should already be applied for the 2025 financial year if possible. The Commission intends to present its position on this in February.
The realignment of the EU fiscal regime had become necessary as the previous rules of the Stability and Growth Pact had proven to be too strict and rigid. The new rules are intended to align the budget plans more closely with the individual starting position in the individual member states without undermining the stability and sustainability of the budgets. The EU member states agreed on this approach at the end of December after months of controversial discussion.
With the new fiscal rules, the core figures of the current Stability and Growth Pact remain untouched: A maximum debt of 60% of gross domestic product (GDP) and a maximum new debt of 3% of GDP. However, in order to ensure a consistent consolidation policy, countries with a debt ratio of over 90 percent of GDP are to reduce their debt level by one percentage point per year. For countries with a ratio of 60 to 90 percent of GDP, the reduction is 0.5 percentage points.
This safeguarding of a targeted consolidation of public finances, which Germany in particular had insisted on, was also adopted by the MEPs. In other points, in addition to their own greater involvement, which should also extend to the entire European Semester process, they also go well beyond the position of the member states. For example, MEPs are calling for the establishment of an independent European Fiscal Board, which must not receive instructions from either the Commission or the member states.
The committee is to assume an advisory function for the coordination of European economic policy and thus create a neutral perspective on the work of the Commission. The Commission should have a seat on the committee, albeit without voting rights. To increase transparency in the implementation of the multi-annual national budget plans, MEPs are also in favor of setting up a scoreboard to document progress in the implementation of the medium-term national budget structure plans, including the current status of the net expenditure path as well as investments and reforms. The scoreboard is to be updated twice a year and will be launched this year.
In their mandate, MEPs once again make it clear that a high level of public investment is necessary to achieve the European goals of the green and digital transitions. Against this backdrop, they advocate the creation of a common investment instrument at EU level to strengthen the investment framework. The experiences of instruments such as NextGenerationEU and SURE should serve as inspiration for this. However, the establishment of further EU bonds is strictly rejected by several member states, including Germany. cr
At the beginning of February, the EU Commission presented its proposal for the EU’s 2040 climate target as well as a strategy for dealing with industrial emissions in order to close the legal loopholes for CCS. A draft of this industrial carbon management strategy, which is available to Table.Media, shows that the EU will have to capture up to 450 million tons per year by 2050 in order to be climate-neutral in the same year.
The establishment of a “cross-border, freely accessible CO2 transport network” is intended to create an internal market for captured carbon, which is then either stored underground or processed industrially. The details of the necessary investment sums and pipeline kilometers are still open in the draft.
The EU is currently planning to use the Net-Zero Industry Act to store 50 million tons of CO2 underground every year from 2030. According to the draft, however, the Commission apparently expects to be able to capture 80 million tons of CO2 per year. According to the draft, it is therefore planning to provide more economic incentives for the identification and construction of additional storage capacities.
This could be done either by integrating CO2 removal certificates into the ETS or by creating a separate trading mechanism that would be directly or indirectly linked to the ETS. Finally, at least 200 million tons of CO2 should be stored each year by 2040, according to the draft strategy.
Apparently, the Commission is also planning to expand the industrial use of captured carbon. It says that “additional measures” are needed to recognize the climate benefits of capturing CO2 instead of fossil carbon for other applications. For example, it could be used as a raw material for the chemical industry, for the production of polymers, plastics, solvents, paints, cleaning agents, cosmetics and pharmaceuticals. The Commission estimates that the chemical sector alone requires around 125 million tons of CO2 per year, or around 450 million tons of CO2 equivalents. This demand is currently covered by fossil CO2.
The Commission therefore wants to create a legal framework to track the origin, transport and use of captured CO2 and create a price incentive for its use. luk/ber
On Wednesday, the EU Parliament adopted the trilogue agreement on the ban on greenwashing and misleading product information (“Empowering Consumers for the Green Transition“). The Council must now also give its approval before the directive can enter into force.
The law is intended to protect consumers from misleading advertising and help them make better purchasing decisions. Among other things, several practices related to greenwashing and the planned wear and tear of products will be added to the EU list of unfair commercial practices. General environmental claims such as “environmentally friendly”, “natural”, “biodegradable”, “climate neutral” or “eco” will be banned unless they are substantiated.
Unfounded statements about shelf life will also be prohibited in the future: For example, manufacturers will no longer be allowed to encourage products to be replaced earlier than absolutely necessary. This is often the case with printer ink, for example.
In addition, only sustainability labels based on recognized certification systems or introduced by government agencies will be permitted. A new label will be introduced to highlight guarantees that go beyond the statutory warranty.
If the directive is finally adopted by the Council, it will then be published in the Official Journal. The member states then have 24 months to transpose it into national law. leo
In the future, NGOs that receive money from the EU budget will have to disclose the use of the funds down to the last recipient as well as the origin of all funding. In addition, recipients of EU taxpayers’ money will be required to make all meetings with MEPs, employees and representatives of other EU institutions transparent if EU legislation is affected. This is provided for in the own-initiative report by Markus Pieper (CDU), which was adopted by the European Parliament.
Pieper was unable to push through the plan to call on the Commission to submit a legislative proposal for the regulation of NGOs. The reference to an NGO in the draft report, which the Commission had founded specifically to lobby MEPs on the Nature Restoration Act, was also deleted. mgr
Commission President Ursula von der Leyen has justified the Commission’s release of €10.2 billion to Hungary in the European Parliament. “Since the beginning of the mandate, the Commission’s aim has always been to persuade the Hungarian government to implement reforms.” In May, for example, the Commission called on Hungary to implement reforms to restore the independence of the judiciary in the country. As a result, the Hungarian government has also implemented the requested reforms in the area of the judiciary. “Hungary has delivered what the Commission asked for.”
This was von der Leyen’s response to the massive criticism of the Commission’s decision by all pro-European groups in the European Parliament immediately before the regular EU summit in December. Von der Leyen went on to explain that the Commissioners involved in the decision, Didier Reynders (Justice), Nicolas Schmit (Social Affairs) and Elisa Ferreira (Cohesion), were prepared to give an account of their actions to the Parliament. This Thursday, the European Parliament will vote on a resolution that massively criticizes the release of the funds, calls on the Commission to be accountable to the Parliament and calls on the Parliament’s Committee on Legal Affairs to examine an action before the European Court of Justice (ECJ) and, if necessary, to take the necessary steps.
The Commission continues to withhold further EU funds for Hungary amounting to around €20 billion due to violations of the rule of law. Von der Leyen made it clear: “These funds will be blocked until the government in Hungary has completed the required reforms.”
EPP group leader Manfred Weber said: “It is important that the Commission now presents a fact-based review of the criteria according to which the release was made .” Weber also appealed to the Council: “The Council has had a motion on the table for a long time to pursue the Article 7(1) procedure against Hungary.” The heads of state and government must now finally summon up the courage to act. Guy Verhofstadt from Renew accused von der Leyen of allowing herself to be blackmailed by Hungarian Prime Minister Viktor Orbán. The funds had been released in return for Hungary giving up its veto at the European Council against Ukraine’s accession. Verhofstadt demanded of the Commission President: “The compromises with Orbán must come to an end. Finally assume your role as guardian of the treaties.” mgr
The European Parliament is calling for closer collaboration with Central Asian states. The EU now has the opportunity to “expand its relations with Central Asia and play a greater role in the region”, emphasized European Parliament members in a resolution adopted with a large majority on Wednesday. Brussels should take advantage of the opportunity to “promote mutually beneficial cooperation and offer Central Asia a partnership”, not least to counteract the influence of China and Russia in the region. A first summit meeting between representatives of the EU and Central Asia is reportedly scheduled for 2024.
Currently, Vice President of the European Commission, Margaritis Schinas, is on a tour of the five Central Asian states. On Wednesday, Schinas was in Uzbekistan. The trip is in preparation for an investor forum on the Trans-Caspian Transport Corridor scheduled to take place in Brussels at the end of the month. Chinese President Xi Jinping held a summit with the heads of state of the “Stans” last May.
On Wednesday, the European Parliament also voted on a report on China’s influence on Europe’s security and defense policy. In the document, EU parliamentarians warn against excessive dependence on China for certain raw materials and the outflow of strategically important military know-how.
The parliamentarians also called on the European Commission to present the parliament, before the end of the current legislative period, with a “detailed analysis of the risks for trade related to technologies such as semiconductors, quantum computing, blockchain, space, artificial intelligence, and biotechnology, as well as the possible action needed by the EU in these areas”. Resolutions represent the positions of the European Parliament on specific issues; they are not binding on the European Commission. ari
The planned criminal law reform and the dissolution of a special public prosecutor’s office to combat corruption in Slovakia have caused “deep concern” among members of the European Parliament. On Wednesday, they passed a resolution by 496 votes out of a total of 630, calling for a close examination of the plans. In addition, the EU Commission should take measures “to guarantee the rule of law and the independence of the judiciary”.
The left-wing Prime Minister Robert Fico presented the changes in December. Among other things, he wants to soften the protection for whistleblowers and reduce the penalties for financial crime. Since then, there have been regular protests in the country, led by liberal and conservative opposition parties. They criticize that the reform serves to protect allies of the current government from prosecution. It would also jeopardize EU payments if the changes were seen as undermining the rule of law. EU Justice Commissioner Didier Reynders announced measures in December if the reforms violate EU law.
Fico described the European Parliament’s resolution as interference in Slovakia’s internal affairs. “Political opponents, opposition MEPs at home and abroad are against us and are ready to use any dirty trick in the political struggle.” rtr
Nicolas Schmit will be the third politician that the European Socialist Party (PES) family has sent as its lead candidate in the European elections. He was preceded by two politicians who had the talent to be a tribune of the people: Germany’s Martin Schulz was the Socialists’ top campaigner in 2014 and the Dutchman Frans Timmermans was in the running in 2019. Compared to his two predecessors, Luxembourg’s Schmit is less combative.
Now that Schmit’s leading role in the upcoming European election campaign is as good as certain, leading Social Democrats are making no secret of it: they know that the 70-year-old is a man of quiet tones. If party leader Stefan Löfven, himself a rather sedate politician, were to look for a barnstormer, his choice would not fall on the Social Affairs Commissioner, who has been in office since 2019.
The fact that the Socialists chose Schmit as their lead candidate at their election congress in Rome on March 2 also has something to do with a lack of alternatives. The Socialists’ job advertisement was for a non-male candidate, preferably with government experience and young. However, to the disappointment of many comrades, the person who embodied these attributes and long looked like a natural front-runner has turned her back on politics and left: Sanna Marin – head of government in Finland until the summer and leader of the Finnish Socialist Party – is no longer interested in politics and now works for the think tank of former British Prime Minister Tony Blair. When the PES application deadline expired yesterday, Schmit was the only candidate. Perseverance pays off: He had made it clear early on behind the scenes that he was interested in the job.
In fact, the married father of several children brings qualities with which he can score points in the election campaign. As Social Affairs Commissioner in the Von der Leyen Commission since 2019, he stands for the party’s core issues: he will claim to have implemented the Socialists’ election promise from the last election campaign: a European minimum wage. The fact that the EU minimum wage will never be expressed in euros and cents, as is the case in Germany, for example, and that the Scandinavian countries do not have to join in – these quibbles will presumably be forgotten. Up to now, the EU Commission has had little competence in social policy.
Schmit will claim to have initiated a paradigm shift in EU policy towards more social policy. The Social Affairs Commissioner also played a leading role in driving forward the legislative proposal to regulate platform work. The dossier, which is currently stalled, aims to strengthen the rights of employees who often earn money for Uber and other platforms on a precarious basis and as bogus self-employed workers. Jens Geier, head of the German SPD MEPs in the European Parliament: “Nicolas Schmit is Mr. Minimum Wage and one of the strongest members of the Von der Leyen Commission.” Schmit also has a better eye on the Socialists’ old core clientele than some of his comrades: He visited Thyssen in the Ruhr region with CDU social expert Dennis Radtke and got an idea of how industrial jobs are faring.
As a Luxembourger, Schmit also has qualities that make him not only Mister Minimum Wage, but also Mister Europe. Since his first job, which he took up in 1979 after completing his doctorate in business administration, he has either been involved in EU politics or Luxembourg’s national politics. And this, in turn, is closely interwoven with EU politics. For example, he, who also has a Master’s degree in French literature, was an advisor to the Luxembourg government when the intergovernmental conference on the Maastricht Treaties met in 1990 and 1991. When the Treaty of Nice was negotiated a decade later, he served as the personal representative of the Luxembourg Prime Minister.
His name was Jean-Claude Juncker, a Christian Democrat and later President of the Commission. The gene for working across party lines seems to be anchored in the DNA of Luxembourg politicians. Juncker and Schmit have another history together: before the 2014 election, Schmit was his country’s candidate for the post in the EU Commission. Juncker then stood as the lead candidate, won the election and moved to the top floor of the Berlaymont as Commission President. Schmit was left behind.
This time it could be another Luxembourger. The new Luxembourg government under Christian Democrat Luc Frieden has already nominated former EPP MEP Christoph Hansen for the next Commission. Given the polls, it is unlikely that Schmit will win the election and be able to lay claim to the top job. However, if the top jobs were to be awarded, the runner-up would be given a chance, for example as Foreign Affairs Commissioner. He may already have his sights set on this position: As a diplomat of many years’ standing and a fluent negotiator in French, German and English, he would certainly be qualified for the job. Markus Grabitz