EU representation unfilled + Digital agenda + LNG terminals oversized
Von der Leyen leaves representations unfilled
Digital Agenda 2023: conclusion of important dossiers
LNG terminals: government plans with wrong numbers
Commission to present IRA response in early February
Data Act: BDI calls on German government to act
German raw materials strategy: key points published
Norway becomes hydrogen supplier
Mechthild Wörsdörfer – Manager of the energy crisis
Dear reader,
For some time now, the heads of the EU Commission’s regional offices in Germany have been vacant – in Munich for more than two years, and in Bonn since the fall of 2021. Neither one of the Commission’s 32,000 employees nor an external candidate seems sufficiently qualified for this management task. Ursula von der Leyen is responsible for the decision on filling the posts. The fact that both regional offices have remained vacant for a very long time is now seen as anaffront by the Commission President to her home country, reports Markus Grabitz.
The Swedish Council Presidency will probably not be the time for visions, but rather has the goal of implementing various projects. This applies all the more to digital policy. Corinna Visser and Falk Steiner have an overview of the coming months.
Gas shortages have been warned about for months, and the level of Germany’s gas storage facilities has been scrutinized with similar attention as the number of people infected with Covid not so long ago. Now, there is much to suggest that the planning of German LNG terminals, for which the Federal Ministry of Economics is responsible, is flawed, and that the need for new infrastructure is significantly overestimated. Malte Kreuzfeldt took a closer look at the numbers for our new Berlin.Table.
The EU Commission cannot find management personnel for its regional representations in Bonn and Munich. The management of the Commission’s representation in Munich has been vacant since September 2020. The management of the regional representation in Bonn since September 2021.
The regional office in Bonn is responsible for North Rhine-Westphalia, Rhineland-Palatinate, Hesse, and Saarland. Around 30 million citizens live in these federal states. This is roughly equivalent to the combined population of the member states Portugal, Sweden, and the Czech Republic. The regional office in Munich is responsible for Baden-Württemberg and Bavaria. Around 25 million people live in these federal states.
Von der Leyen responsible
The representations see themselves as a “bridge between Germany and the EU Commission’s headquarters in Brussels and Luxembourg.” According to information from Europe.Table, the Commission has launched two application procedures for the Munich representation management alone. The word is that there have been perfectly suitable internal applicants for the posts. External applicants are also allowed if no fitting candidate is found among the Commission’s 32,000 staff members. It is reported that the new appointments are also difficult because the Commission wants to increase the proportion of women in the Representations.
The representations report directly to Commission President Ursula von der Leyen. The decision on filling the posts falls within her direct competence. Leaving the leadership of the two regional representations unoccupied for 28 and 16 months is now seenas an affront by the Commission President to her home country. It would have been unthinkable under her predecessor. Jean Claude-Juncker had always kept a close eye on the representations and the press situation in Germany.
Resentment in the federal states
Criticism is being voiced in the state capitals of Düsseldorf and Munich. “We see with concern that the office management has not been occupied for more than a year,” NRW Europe Minister Nathanael Liminski (CDU) told Europe.Table. He said the Commission’s regional office in Bonn, with “its expertise in Europe, is an important partner” for the NRW state government “in standing up resolutely for the European model of democracy and the rule of law.” The office needs a “permanent representative at the management level.” It is headed on an interim basis by Patrick Lobis, the deputy of the representative in Berlin, Jörg Wojahn.
Bavaria’s Minister for Europe, Melanie Huml (CSU), emphasized that representation in Munich is a crucial network node between the EU and stakeholders in Bavaria. “We traditionally maintain good contacts and would be pleased if the decision is made soon.” At the beginning of December, the Commission had announced that Renke Deckarm, press officer at the Munich office, would take over as acting head. Before that, Wojahn had done it himself.
Commission remains silent on reasons
Is it disinterest? Or is the Commission President unwilling to delegate the personnel decision to a staff member? The regional office manager is graded below management positions in the Commission’s civil service hierarchy. In terms of grade, AD 5 to AD 12 is provided. Accordingly, the basic salary is between €5,130 and €13,779 per month. A spokesman for the Commission was not prepared to provide more detailed information. He simply stated, “Unfortunately, we cannot comment on current application procedures.”
Other member states are also affected. Currently, the management functions of the Commission Representations in Sweden, Bulgaria, Poland, Malta, and the Netherlands are unoccupied. The regional representation in Marseille also has no leadership.
Union criticizes grievances
The trade union of employees in EU institutions, Renouveau et Démocratie, has long been pointing out grievances in the filling of posts that come under the Directorate-General for Communication. Management jobs in the representations are increasingly being filled by outsiders who are given temporary contracts. That the application process drags on for one or two years is not an isolated case. Then again, positions are filled in record time without advertising them in advance.
According to the union, there is also a tendency to fillthe management posts in the representations politically, for example, with ex-director generals. The representation in Austria is headed by the Commission’s former secretary general, Martin Selmayr. A secretary general is grouped in grade AD 16 and receives a basic salary of €21,671 per month.
EU
European Commission
Digital Agenda 2023: Conclusion of important dossiers
What is on the digital agenda in 2023? If you read the work program of the Swedes, who took over the Council presidency on January 1, digitization is not at the forefront. In addition, time is running out for controversial initiatives that require lengthy consultations and negotiations if they are to be completed by the next European elections in 2024.
Pioneering new legislation with a high conflict potential is not expected in 2023. There are still some new initiatives, but essentially it is a matter of getting what has already been started over the finish line. Much work also remains for the Commission in implementing and enforcing DSA and DMA. An overview:
State of play: The EU Commission has separated its plans for a “fair share” of the roll-out costs for data traffic-intensive Internet providers from the Broadband Cost Directive. The Broadband Cost Reduction Act is now to be reformed under the title Gigabit Infrastructure Act (GIA). A supplementary consultation without legislative consequence in this legislature is to address, among other things, the fair share issue.
Schedule: Commission GIA proposal Q1/2023, consultation launch on future of connectivity (including Fair Share) Q1/2023
Metaverse: the EU wants to co-design
Actor: European Commission
State of play: The EU wants to play a decisive role in shaping the immersive Internet. This was already announced by Internal Market Commissioner Thierry Breton in September of last year. However, it remains to be seen what exactly the EU plans for the Metaverse. Announced are a non-legislative initiative and the organization of an ecosystem for the Metaverse. The plans include investments in the education and training of people, in technology and research policy, and in the expansion of digital infrastructure.
Schedule: The virtual worlds initiative has been announced for Q2/2023
AI Act: Germany still sees need for change
Actors: Council and Parliament
State of play: The member states have already reached a general orientation on December 6, 2022, under the Czech Council Presidency. However, Germany still has a need for discussion, which it has put on record in a corresponding statement. In particular, the German government would like the requirements for secrecy and the guarantee of confidentiality and data security in Article 70 to be specified and changes to be made on the subject of biometric mass surveillance.
The Parliament is still far from an agreement, so rapporteurs Dragoș Tudorache (Renew, LIBE Committee) and Brando Benifei (S&D, IMCO Committee) cannot keep to their original schedule. Observers say there is yet no agreement on any key issue. Technical meetings will resume in mid-January, and the next political meeting of the shadow rapporteurs is scheduled for January 18.
Schedule: Parliament is not expected to vote until March
With the AI Liability Directive, the EU wants to take into account the increasing use of AI, which the AI Act enables. The directive aims to harmonize liability regimes – covering both high- and low-risk AI systems. In the Commission’s view, existing national liability regimes, particularly fault-based regimes, are currently inadequate to address liability claims for harm caused by AI-enabled products and services. This is because in many cases it can be difficult or overly burdensome for injured parties to identify who caused the harm.
Schedule: open
Data Act: getting data trading off the ground
Actors: Council and Parliament
State of play: The Council failed to reach a General Approach before the turn of the year, so the member states will continue their negotiations on the basis of the third compromise paper of the Czech under the Swedish Council Presidency. Among other things, they want to clarify how the Data Act and the GDPRcan remain free of overlap and contradiction and under what conditions and costs customers can change a cloud provider. Germany has so far only commented on part of the proposed regulations (see also the news section in this issue).
In view of more than 1,000 amendments, the dossier is not yet far advanced in the Parliament under the leadership of rapporteur Pilar del Castillo Vera (EPP, ITRE Committee). Hotly debated are the questions of which data must be shared and under what conditions, the safeguarding of trade secrets, and the conditions for changing cloud providers.
Schedule: The ITRE Committee vote is expected in February/March 2023
Rapporteur Dan Nica (S&D, Romania) of the lead ITRE committee had already submitted his draft report on the Chips Act in September. The ITRE MEPs tabled a total of 804 amendments to the Commission proposal.
Schedule: The final vote on the report is expected to take place in Parliament in early 2023
State of play: The Commission proposal for cybersecurity rules for products with digital elements has been available since September 2022. The Council has finished the first reading and, still under Czech leadership, proposed a compromise text before the end of the year. One point of contention is the products included. The Swedish Council Presidency hopes to finalize the CRA position of the member states by the middle of the year. In the Parliament, Nicola Danti (Renew), an ITRE rapporteur, is in charge.
Schedule: Council position end Q1 or Q2, EP draft report expected Q2/2023
EU-US Data Privacy Framework: basis for legally compliant data traffic
State of play: The draft adequacy decision for the USA under the conditions of the EU-US Data Privacy Framework has been available since December 2022. The next step is for the European Data Protection Board (EDPB) and the member states to comment on it. The Parliament must formally discuss it, but could only prevent it by majority vote.
Schedule: Adequacy process to be completed by summer 2023 when it will go into effect
CSAM regulation: chat control yes or no?
Actors: Council and Parliament
State of play: The Commission’s draft regulation on combating child sexual abuse and its depictions (Child Sexual Abuse Material, CSAM) online has been available since May 2022. Most recently, discussions took place in the Council at the technical level in December, where the first examination of the full text was completed. Subsequently, the Czech Presidency presented several proposals to revise the text, such as the scope and obligations of online service providers. The Council continues its work under the Swedish Council Presidency.
In the Parliament, Javier Zarzalejos (EPP) is the responsible rapporteur for the LIBE Committee, Paul Tang (S&D), Hilde Vautmans (Renew), Patrick Breyer (Pirates/Greens/EFA) and Cornelia Ernst (Left) are shadow rapporteurs.
Schedule: After the first meetings in the committees, a quick draft report in the parliament is not to be expected. Q2/2023 is considered realistic. The next shadow rapporteur meetings are scheduled for January 10 and 24, 2023. On January 19 and 20, the Council Working Party on JAI will meet with representatives of the European Data Protection Board.
Media Freedom Act: resistance from Germany
Actors: European Commission, Member States (German Federal States and Minister of Culture), and Parliament
State of play: The Commission’s proposal has been on the table since September – and it is hotly disputed, too. Opposition is also coming from the German states, which are responsible for media supervision in this country. The Commission sees press freedom threatened by high concentration and “oligarchization,” but also by large online platforms and disinformation. Germany, for its part, does not want the EU to interfere with its functioning system.
In Parliament, the Committee on Culture and Education (CULT) is the lead committee, and a rapporteur has not yet been appointed.
Schedule: Open
by Falk Steiner and Corinna Visser
CRA
Data
Digital Markets Act
Digital policy
Digital Services Act
Digitalpolitik
Digitization
News
LNG terminals: government plans with wrong figures
In its planning for German LNG terminals, the German Ministry of Economics is working with the wrong figure at a crucial point. As a result, the need for new infrastructure is significantly overestimated.
At issue is the capacity of LNG terminals in Germany’s neighboring countries. Poland, the Netherlands, Belgium, and France have eight terminals in total. Due to their geographic proximity, these “admittedly already play an important role for Germany’s supply today,” the ministry led by Robert Habeck wrote in a paper sent to the media to mark the inauguration of Germany’s first LNG terminal. “However, together they represent a regasification capacity of only about 40 billion cubic meters per year – with a gas demand of about 95 billion cubic meters per year for Germany alone,” it continued.
But this figure is not correct. As shown by an evaluation of the daily figures of the European gas network operators (AGSI) by Berlin.Table, the mentioned terminals in the neighboring countries injected almost 70 billion cubic meters in 2022. However, even this does not correspond to the maximum capacity, which amounts to 96 billion cubic meters per year if the operator data is added up and even 99 billion cubic meters if the real daily maximum value of each terminal is extrapolated to the entire year.
When asked, the ministry did not provide a conclusive explanation for the incorrect figure. It is conceivable that the stated figure of 40 billion cubic meters was based on the figures for previous years: In 2020, 38 billion cubic meters of gas were injected at the LNG terminals in neighboring countries, while in 2021, the figure was 33 billion cubic meters.
Planning for LNG terminals oversized
Experts have long considered the planning for Germany’s LNG terminals to be oversized. Suspected miscalculation has obviously played an important role in this. Before the inauguration of the first terminal, Robert Habeck had claimed on Tagesthemen that without its own landing points, Germany would face a “gas shortage” this winter.
The explanatory memorandum for the LNG Acceleration Act passed in May (you can find the pdf here) also states: “The capacity of the existing European LNG terminals, which can only be used in part for Germany, can – even at one hundred percent capacity utilization – only cover a small part of the shortfall in Russian supplies for Europe.”
Reservoirs filled as never before
This is obviously wrong. In fact, the terminals available in neighboring countries can cover the shortfall in Russian natural gas deliveries via Nord Stream 2, which stood at around 50 billion cubic meters per year in 2021, not only to a small extent but almost completely when fully utilized.
This is shown by a comparison of actual capacity with deliveries in previous years and by the reality of the past few months: That Germany (and its neighboring countries) has not experienced a shortage despite the complete halt in gas deliveries via Nord Stream 2 since the beginning of September, but rather that the storage facilities are filled as never before, is – in addition to the drop in consumption of around 15 percent – mainly due to additional gas deliveries via the LNG terminals in neighboring countries.
Netherlands and Belgium have greatly expanded gas exports
This can be done without any severe problems. Only Poland needs all the LNG it receives at its terminal for itself to compensate for the lost supplies from Russia. The Netherlands and Belgium, on the other hand, have greatly expanded their gas exports to Germany following the halt in deliveries from Russia; France, which previously always purchased Russian gas from Germany, has now been supplying LNG gas to Germany for its part since September – partly via Switzerland. And even in December 2022, the month with the highest LNG injections to date, terminals in neighboring countries were only at 86 percent capacity. MK
Energy
Energy policy
Germany
LNG
Natural gas
Commission to present IRA response in early February
The EU Commission is expected to present its response to the US Inflation Reduction Act (IRA) on February 1. That’s according to the agency’s new agenda, published by digital media house Contexte. The proposals to strengthen the industrial base in climate-friendly technologies are to be discussed at a special summit on Feb. 9-10. Commission President Ursula von der Leyen will be in charge herself.
On May 17, the Commission plans to present its proposal to establish a hydrogen bank. The proposal is intended to support the development of a green hydrogen industry.
A week later, on May 24, a majortransportpackage is planned. The Commission wants to create a single space for mobility data. It will also present its proposal for an internal combustion engine phase-out and future fleet limits for heavy and medium-duty vehicles on the same day. Proposals to expand freight transport by rail are also on the agenda.
The right-to-repair proposal, which has already been postponed several times, was last announced for March but will not be published until May 31, according to the agenda. With the proposed legislation, the Commission aims to extend the life of consumer goods that can be repaired and avoid premature disposal. tho/mgr/leo
EU
European Commission
Data Act: BDI calls on German government to act
The Federation of German Industries (BDI) is calling on the German government to do more for the interests of German industry in the negotiations on the Data Act. For the German industry, it is essential “that the German government promptly agrees on a clear negotiating mandate for the EU Data Act and contributes constructively and resolutely to the dialogue in the Council and later in the trilogue,” writes the BDI in a position paper exclusively available to Europe.Table.
The BDI had already submitted a 24-page statement on the Data Act in May 2022. Obviously, however, the association is dissatisfied with the fact that the German government has still not taken a comprehensive position on this important law. In November, Berlin sent only a preliminary statement to Brussels, which does not cover all aspects of the draft law. For example, the controversial conditions for switching cloud providers are not mentioned.
No one-size-fits-all
For this reason, the BDI feels compelled to remind the German government once again of the importance of the Data Act. The BDI warns the “very undifferentiated ‘one-size-fits-all’ approach of all IoT services in the B2B and B2C environment” selected there leads to severe legal uncertainties in the entire industry and requires weighty adjustments.
Since the competitiveness of German and European industry is at stake, “sufficient time for the necessary clarifications of content is needed.” Wolfgang Weber, CEO of the German Electro and Digital Industry Association (ZVEI), also calls for “a differentiated approach” that takes into account the “differences between the B2B and B2C markets.”
Six key demands
The BDI has summarized its demands in six key points:
Clarification of key termssuch as data, data owner, and user, better mapping of industrial value chainsin the law, and a cleardemarcation from the provisions of the GDPR.
Better protection of trade secrets of data owners.
Clarification of requirements when switching between data processing services, adaptation to business reality as well as what is technically feasible. The undifferentiated unilateral termination option within 30 days is to be eliminated.
Restriction of obligations to provide data to public bodies to clearly defined emergencies. Extensive safeguards for confidentiality of trade secrets and appropriate cost compensation as well as a control mechanism.
No expansion of legal obligations for companies to provide data for scientific research (business-to-academia, B2A), as is being discussed within the federal government.
No interference with freedom of contract and technical requirements for smart contracts. vis
Data
Data law
Data Policy
Data protection
Digitization
German raw materials strategy: key points published
By revising its raw materials strategy, the German government wants to introduce, among other things, binding recycling quotas, strategic reserves, a public-private fund, and ESG standards for critical raw materials. This is according to the key points paper published yesterday by the German Federal Ministry of Economic Affairs (BMWK).
The BMWK plans to add further measures to the German government’s raw materials strategy, which was adopted in 2020. While the federal government has so far seen the responsibility of raw materials supply as basically lying with companies, it now recognizes that they are unable to secure their specific requirements for raw materials in the current unstable situation in markets and supply chains. The paper states that Companies should therefore be given greater support to safeguard “the economic and strategic interests of the Federal Republic in the area of raw materials” in the medium and long term.
The key issues paper identifies three priorities with the following measures:
1. Circular economy, resource efficiency, and recycling
Establishment of lead markets, e.g. through quotas for recycled raw materials and recyclates;
Analysis of individual material flows, dismantling of existing obstacles to the use of recycling raw materials;
Economic incentive systems, regulatory minimum requirements, and financing instruments to stimulate innovation in resource efficiency and recycling, and to accelerate market ramp-ups;
Continuation and expansion of research and development;
2. Diversification of raw material supply chains
Monitoring critical raw material supply chains;
Preservation and expansion of domestic and EU raw material production;
Strategic state stockpiling of critical raw materials in the public interest;
Support for strategic projects in Germany, the EU, and worldwide, including raw material funds to increase production capacities;
Establishment of further possibilities under state aid law by the EU Commission for state support of projects that are of strategic importance for the EU;
Strategic development and expansion of international bilateral and regional partnerships, flanked by trilateral cooperation with selected partners such as Japan or the USA if possible;
3. Ensuring a fair and sustainable market framework
Support the development of coherent ESG standards for the import of raw materials and their processed products under the EU Critical Raw Materials Act;
International cooperation for consistent ESG standards with the EU Commission, France, and other EU member states, USA, Canada, Australia, and other partners;
Expansion of advice and support for small and medium-sized enterprises (SMEs) with regard to the assessment of ESG risks and the development of ESG contributions.
The revision of the raw materials strategy is to be part of the circular economy strategy currently jointly developed by the German Federal Ministry for the Environment and the German Federal Ministry of Economic Affairs. The key points are also to be incorporated into the EU Commission’s proposal for a Critical Raw Materials Act announced for mid-March. leo
Federal Government
Germany
Raw materials
Raw materials strategy
Norway becomes hydrogen supplier
Germany and Norway want to create the conditions for significant hydrogenimports in the next decade. German Economics Minister Robert Habeck plans to sign a joint declaration on the subject during his trip to Norway this week. The Green politician will hold political talks and meet business representatives there on Thursday and Friday.
According to the Federal Ministry of Economics on Tuesday, Norway and Germany want to confirm their intention to ensure a large-scale hydrogen supply with the necessary infrastructure from Norway to Germany by 2030. On hydrogen as an energy carrier for the climate-friendly transformation of the economy, rest great hopes.
Talks are currently underway about the possible construction of a hydrogen pipeline. In the medium term, Germany wants to import so-called green hydrogen. In its production, renewable energies are used and emissions of climate-damaging carbon dioxide are avoided. The ministry said less climate-friendly hydrogen should only be imported for a “short transitional period.” dpa
Energy
Germany
Hydrogen
Norway
Robert Habeck
Heads
Mechthild Wörsdörfer – Manager of the energy crisis
Mechthild Wörsdörfer is Deputy Director General of the Directorate General for Energy.
Behind Mechthild Wörsdörfer lie a few very busy months. The top official is currently the most important German manager of the energy crisis in Brussels. As Deputy Director General of the Directorate-General for Energy, the Hesse native has been shuttling from meeting to meeting since February. Wörsdörfer explains the crisis policy and, together with her team, tries to cast the demands of the heads of state and government for alternative energy sources and measures against high electricity and gas prices into law.
“Many of our crisis proposals have been drafted within two to three weeks,” says the senior official. She says in more than 20 years at the Commission, she has never experienced a workload like the one she has had in recent months. As a woman in her mid-fifties, she remains calm thanks to her long experience in European politics.
Director at the International Energy Agency
After studying in Heidelberg and Montpellier, she earned a master’s degree in European Economics in Brussels. “Early on, I had a strong interest in economic policy issues combined with languages and European topics,” Wörsdörfer says. Initially, she worked for three years in the Brussels office of the BDI. She started at the Commission in 1995, initially in the Directorate-General for Industry.
She moved to DG ENER in 2010, where she later headed the planning and renewable energy departments. She showed courage to change in 2018 when she took a director’s post at the International Energy Agency (IEA) in Paris. “In Brussels, there are the positions of the EU institutions and those of the member states, but then at the International Energy Agency, it was also about policy in the US, Australia, and Japan. Like this, I was able to see some of the Brussels positions in the overall international picture.”
In the development of the hydrogen economy, for example, countries such as Japan and Chile are also highly active. Even in the current crisis, it is important for the Commission, member states, and companies to tap new international sources of energy supplies.
Electricity market design one of the next tasks
But Wörsdörfer also got deeper into the detail work in Paris with the large team of engineers and modelers at the IEA, which is known for its annual World Energy Outlook. “I translated the technical work of colleagues into policy recommendations. I really liked both the international and the level of detail,” Wörsdörfer reports. Now, in Brussels, she has to mediate between what politicians want and what experts think is technically feasible.
The challenges of the energy crisis were not yet obvious when Wörsdörfer returned to Brussels and took up the post of Deputy Director General in October 2021. Her predecessor Klaus-Dieter Borchardt had just retired, and the German was offered what she calls a “super package” of tasks. As coordinator for the “just and green transition” in DG ENER, she now looks after electricity market design in addition to renewables and efficiency.
Integrating Ukraine into the internal energy market
Integrating Ukraine into the internal energy market was also on the agenda at the time, but last February turned the entire agenda upside down. “Eighty percent of us are now dealing with crisis issues – in line with the long-term goals of the European Green Deal.”
The Brussels official refers to “one-two-two proposals” and means the emergency article the interventions are based on. For Wörsdörfer, a major success is that the 27 member countries have agreed to the crisis measures and that gas storage facilities have been filled. “At the same time, I am absolutely convinced that we need to get renewables into the market faster. We need to do more on load management, demand reduction, and maybe on storage. All the measures together will have an impact on prices. It won’t happen overnight, but hopefully, it will already have an impact this winter.”
What works in one state does not have to be the same across the EU
So, the EU needs staying power until the crisis measures take effect. Mechthild Wörsdörfer can take a deep breath herself with yoga and pilates. “I have to do at least two workouts a week, and I have to cycle to work every day, otherwise I can’t keep up this workload,” she says. In addition to the crisis measures, regular work on the Green Deal continues, with Wörsdörfer accompanying the trilogues on the legislative package. She no longer visits the theater and opera as often as she did during her time in Paris. Mechthild Wörsdörfer is still in Germany on a regular basis – to visit her family, but also increasingly for work visits in Berlin.
In Brussels, the next big task is already waiting: the heads of state and government have called for a new electricity market design to contain electricity prices. In a few months, the EU wants to bring about what normally takes years. “When it comes to new rules for the electricity market, the commission has to be mindful of the fact that something that works in one member state may not necessarily work across the EU,” Wörsdörfer says. “But hopefully our legislative proposal will pass quickly through Parliament and the Council so that it will have a positive impact soon.” Manuel Berkel
Digital Agenda 2023: conclusion of important dossiers
LNG terminals: government plans with wrong numbers
Commission to present IRA response in early February
Data Act: BDI calls on German government to act
German raw materials strategy: key points published
Norway becomes hydrogen supplier
Mechthild Wörsdörfer – Manager of the energy crisis
Dear reader,
For some time now, the heads of the EU Commission’s regional offices in Germany have been vacant – in Munich for more than two years, and in Bonn since the fall of 2021. Neither one of the Commission’s 32,000 employees nor an external candidate seems sufficiently qualified for this management task. Ursula von der Leyen is responsible for the decision on filling the posts. The fact that both regional offices have remained vacant for a very long time is now seen as anaffront by the Commission President to her home country, reports Markus Grabitz.
The Swedish Council Presidency will probably not be the time for visions, but rather has the goal of implementing various projects. This applies all the more to digital policy. Corinna Visser and Falk Steiner have an overview of the coming months.
Gas shortages have been warned about for months, and the level of Germany’s gas storage facilities has been scrutinized with similar attention as the number of people infected with Covid not so long ago. Now, there is much to suggest that the planning of German LNG terminals, for which the Federal Ministry of Economics is responsible, is flawed, and that the need for new infrastructure is significantly overestimated. Malte Kreuzfeldt took a closer look at the numbers for our new Berlin.Table.
The EU Commission cannot find management personnel for its regional representations in Bonn and Munich. The management of the Commission’s representation in Munich has been vacant since September 2020. The management of the regional representation in Bonn since September 2021.
The regional office in Bonn is responsible for North Rhine-Westphalia, Rhineland-Palatinate, Hesse, and Saarland. Around 30 million citizens live in these federal states. This is roughly equivalent to the combined population of the member states Portugal, Sweden, and the Czech Republic. The regional office in Munich is responsible for Baden-Württemberg and Bavaria. Around 25 million people live in these federal states.
Von der Leyen responsible
The representations see themselves as a “bridge between Germany and the EU Commission’s headquarters in Brussels and Luxembourg.” According to information from Europe.Table, the Commission has launched two application procedures for the Munich representation management alone. The word is that there have been perfectly suitable internal applicants for the posts. External applicants are also allowed if no fitting candidate is found among the Commission’s 32,000 staff members. It is reported that the new appointments are also difficult because the Commission wants to increase the proportion of women in the Representations.
The representations report directly to Commission President Ursula von der Leyen. The decision on filling the posts falls within her direct competence. Leaving the leadership of the two regional representations unoccupied for 28 and 16 months is now seenas an affront by the Commission President to her home country. It would have been unthinkable under her predecessor. Jean Claude-Juncker had always kept a close eye on the representations and the press situation in Germany.
Resentment in the federal states
Criticism is being voiced in the state capitals of Düsseldorf and Munich. “We see with concern that the office management has not been occupied for more than a year,” NRW Europe Minister Nathanael Liminski (CDU) told Europe.Table. He said the Commission’s regional office in Bonn, with “its expertise in Europe, is an important partner” for the NRW state government “in standing up resolutely for the European model of democracy and the rule of law.” The office needs a “permanent representative at the management level.” It is headed on an interim basis by Patrick Lobis, the deputy of the representative in Berlin, Jörg Wojahn.
Bavaria’s Minister for Europe, Melanie Huml (CSU), emphasized that representation in Munich is a crucial network node between the EU and stakeholders in Bavaria. “We traditionally maintain good contacts and would be pleased if the decision is made soon.” At the beginning of December, the Commission had announced that Renke Deckarm, press officer at the Munich office, would take over as acting head. Before that, Wojahn had done it himself.
Commission remains silent on reasons
Is it disinterest? Or is the Commission President unwilling to delegate the personnel decision to a staff member? The regional office manager is graded below management positions in the Commission’s civil service hierarchy. In terms of grade, AD 5 to AD 12 is provided. Accordingly, the basic salary is between €5,130 and €13,779 per month. A spokesman for the Commission was not prepared to provide more detailed information. He simply stated, “Unfortunately, we cannot comment on current application procedures.”
Other member states are also affected. Currently, the management functions of the Commission Representations in Sweden, Bulgaria, Poland, Malta, and the Netherlands are unoccupied. The regional representation in Marseille also has no leadership.
Union criticizes grievances
The trade union of employees in EU institutions, Renouveau et Démocratie, has long been pointing out grievances in the filling of posts that come under the Directorate-General for Communication. Management jobs in the representations are increasingly being filled by outsiders who are given temporary contracts. That the application process drags on for one or two years is not an isolated case. Then again, positions are filled in record time without advertising them in advance.
According to the union, there is also a tendency to fillthe management posts in the representations politically, for example, with ex-director generals. The representation in Austria is headed by the Commission’s former secretary general, Martin Selmayr. A secretary general is grouped in grade AD 16 and receives a basic salary of €21,671 per month.
EU
European Commission
Digital Agenda 2023: Conclusion of important dossiers
What is on the digital agenda in 2023? If you read the work program of the Swedes, who took over the Council presidency on January 1, digitization is not at the forefront. In addition, time is running out for controversial initiatives that require lengthy consultations and negotiations if they are to be completed by the next European elections in 2024.
Pioneering new legislation with a high conflict potential is not expected in 2023. There are still some new initiatives, but essentially it is a matter of getting what has already been started over the finish line. Much work also remains for the Commission in implementing and enforcing DSA and DMA. An overview:
State of play: The EU Commission has separated its plans for a “fair share” of the roll-out costs for data traffic-intensive Internet providers from the Broadband Cost Directive. The Broadband Cost Reduction Act is now to be reformed under the title Gigabit Infrastructure Act (GIA). A supplementary consultation without legislative consequence in this legislature is to address, among other things, the fair share issue.
Schedule: Commission GIA proposal Q1/2023, consultation launch on future of connectivity (including Fair Share) Q1/2023
Metaverse: the EU wants to co-design
Actor: European Commission
State of play: The EU wants to play a decisive role in shaping the immersive Internet. This was already announced by Internal Market Commissioner Thierry Breton in September of last year. However, it remains to be seen what exactly the EU plans for the Metaverse. Announced are a non-legislative initiative and the organization of an ecosystem for the Metaverse. The plans include investments in the education and training of people, in technology and research policy, and in the expansion of digital infrastructure.
Schedule: The virtual worlds initiative has been announced for Q2/2023
AI Act: Germany still sees need for change
Actors: Council and Parliament
State of play: The member states have already reached a general orientation on December 6, 2022, under the Czech Council Presidency. However, Germany still has a need for discussion, which it has put on record in a corresponding statement. In particular, the German government would like the requirements for secrecy and the guarantee of confidentiality and data security in Article 70 to be specified and changes to be made on the subject of biometric mass surveillance.
The Parliament is still far from an agreement, so rapporteurs Dragoș Tudorache (Renew, LIBE Committee) and Brando Benifei (S&D, IMCO Committee) cannot keep to their original schedule. Observers say there is yet no agreement on any key issue. Technical meetings will resume in mid-January, and the next political meeting of the shadow rapporteurs is scheduled for January 18.
Schedule: Parliament is not expected to vote until March
With the AI Liability Directive, the EU wants to take into account the increasing use of AI, which the AI Act enables. The directive aims to harmonize liability regimes – covering both high- and low-risk AI systems. In the Commission’s view, existing national liability regimes, particularly fault-based regimes, are currently inadequate to address liability claims for harm caused by AI-enabled products and services. This is because in many cases it can be difficult or overly burdensome for injured parties to identify who caused the harm.
Schedule: open
Data Act: getting data trading off the ground
Actors: Council and Parliament
State of play: The Council failed to reach a General Approach before the turn of the year, so the member states will continue their negotiations on the basis of the third compromise paper of the Czech under the Swedish Council Presidency. Among other things, they want to clarify how the Data Act and the GDPRcan remain free of overlap and contradiction and under what conditions and costs customers can change a cloud provider. Germany has so far only commented on part of the proposed regulations (see also the news section in this issue).
In view of more than 1,000 amendments, the dossier is not yet far advanced in the Parliament under the leadership of rapporteur Pilar del Castillo Vera (EPP, ITRE Committee). Hotly debated are the questions of which data must be shared and under what conditions, the safeguarding of trade secrets, and the conditions for changing cloud providers.
Schedule: The ITRE Committee vote is expected in February/March 2023
Rapporteur Dan Nica (S&D, Romania) of the lead ITRE committee had already submitted his draft report on the Chips Act in September. The ITRE MEPs tabled a total of 804 amendments to the Commission proposal.
Schedule: The final vote on the report is expected to take place in Parliament in early 2023
State of play: The Commission proposal for cybersecurity rules for products with digital elements has been available since September 2022. The Council has finished the first reading and, still under Czech leadership, proposed a compromise text before the end of the year. One point of contention is the products included. The Swedish Council Presidency hopes to finalize the CRA position of the member states by the middle of the year. In the Parliament, Nicola Danti (Renew), an ITRE rapporteur, is in charge.
Schedule: Council position end Q1 or Q2, EP draft report expected Q2/2023
EU-US Data Privacy Framework: basis for legally compliant data traffic
State of play: The draft adequacy decision for the USA under the conditions of the EU-US Data Privacy Framework has been available since December 2022. The next step is for the European Data Protection Board (EDPB) and the member states to comment on it. The Parliament must formally discuss it, but could only prevent it by majority vote.
Schedule: Adequacy process to be completed by summer 2023 when it will go into effect
CSAM regulation: chat control yes or no?
Actors: Council and Parliament
State of play: The Commission’s draft regulation on combating child sexual abuse and its depictions (Child Sexual Abuse Material, CSAM) online has been available since May 2022. Most recently, discussions took place in the Council at the technical level in December, where the first examination of the full text was completed. Subsequently, the Czech Presidency presented several proposals to revise the text, such as the scope and obligations of online service providers. The Council continues its work under the Swedish Council Presidency.
In the Parliament, Javier Zarzalejos (EPP) is the responsible rapporteur for the LIBE Committee, Paul Tang (S&D), Hilde Vautmans (Renew), Patrick Breyer (Pirates/Greens/EFA) and Cornelia Ernst (Left) are shadow rapporteurs.
Schedule: After the first meetings in the committees, a quick draft report in the parliament is not to be expected. Q2/2023 is considered realistic. The next shadow rapporteur meetings are scheduled for January 10 and 24, 2023. On January 19 and 20, the Council Working Party on JAI will meet with representatives of the European Data Protection Board.
Media Freedom Act: resistance from Germany
Actors: European Commission, Member States (German Federal States and Minister of Culture), and Parliament
State of play: The Commission’s proposal has been on the table since September – and it is hotly disputed, too. Opposition is also coming from the German states, which are responsible for media supervision in this country. The Commission sees press freedom threatened by high concentration and “oligarchization,” but also by large online platforms and disinformation. Germany, for its part, does not want the EU to interfere with its functioning system.
In Parliament, the Committee on Culture and Education (CULT) is the lead committee, and a rapporteur has not yet been appointed.
Schedule: Open
by Falk Steiner and Corinna Visser
CRA
Data
Digital Markets Act
Digital policy
Digital Services Act
Digitalpolitik
Digitization
News
LNG terminals: government plans with wrong figures
In its planning for German LNG terminals, the German Ministry of Economics is working with the wrong figure at a crucial point. As a result, the need for new infrastructure is significantly overestimated.
At issue is the capacity of LNG terminals in Germany’s neighboring countries. Poland, the Netherlands, Belgium, and France have eight terminals in total. Due to their geographic proximity, these “admittedly already play an important role for Germany’s supply today,” the ministry led by Robert Habeck wrote in a paper sent to the media to mark the inauguration of Germany’s first LNG terminal. “However, together they represent a regasification capacity of only about 40 billion cubic meters per year – with a gas demand of about 95 billion cubic meters per year for Germany alone,” it continued.
But this figure is not correct. As shown by an evaluation of the daily figures of the European gas network operators (AGSI) by Berlin.Table, the mentioned terminals in the neighboring countries injected almost 70 billion cubic meters in 2022. However, even this does not correspond to the maximum capacity, which amounts to 96 billion cubic meters per year if the operator data is added up and even 99 billion cubic meters if the real daily maximum value of each terminal is extrapolated to the entire year.
When asked, the ministry did not provide a conclusive explanation for the incorrect figure. It is conceivable that the stated figure of 40 billion cubic meters was based on the figures for previous years: In 2020, 38 billion cubic meters of gas were injected at the LNG terminals in neighboring countries, while in 2021, the figure was 33 billion cubic meters.
Planning for LNG terminals oversized
Experts have long considered the planning for Germany’s LNG terminals to be oversized. Suspected miscalculation has obviously played an important role in this. Before the inauguration of the first terminal, Robert Habeck had claimed on Tagesthemen that without its own landing points, Germany would face a “gas shortage” this winter.
The explanatory memorandum for the LNG Acceleration Act passed in May (you can find the pdf here) also states: “The capacity of the existing European LNG terminals, which can only be used in part for Germany, can – even at one hundred percent capacity utilization – only cover a small part of the shortfall in Russian supplies for Europe.”
Reservoirs filled as never before
This is obviously wrong. In fact, the terminals available in neighboring countries can cover the shortfall in Russian natural gas deliveries via Nord Stream 2, which stood at around 50 billion cubic meters per year in 2021, not only to a small extent but almost completely when fully utilized.
This is shown by a comparison of actual capacity with deliveries in previous years and by the reality of the past few months: That Germany (and its neighboring countries) has not experienced a shortage despite the complete halt in gas deliveries via Nord Stream 2 since the beginning of September, but rather that the storage facilities are filled as never before, is – in addition to the drop in consumption of around 15 percent – mainly due to additional gas deliveries via the LNG terminals in neighboring countries.
Netherlands and Belgium have greatly expanded gas exports
This can be done without any severe problems. Only Poland needs all the LNG it receives at its terminal for itself to compensate for the lost supplies from Russia. The Netherlands and Belgium, on the other hand, have greatly expanded their gas exports to Germany following the halt in deliveries from Russia; France, which previously always purchased Russian gas from Germany, has now been supplying LNG gas to Germany for its part since September – partly via Switzerland. And even in December 2022, the month with the highest LNG injections to date, terminals in neighboring countries were only at 86 percent capacity. MK
Energy
Energy policy
Germany
LNG
Natural gas
Commission to present IRA response in early February
The EU Commission is expected to present its response to the US Inflation Reduction Act (IRA) on February 1. That’s according to the agency’s new agenda, published by digital media house Contexte. The proposals to strengthen the industrial base in climate-friendly technologies are to be discussed at a special summit on Feb. 9-10. Commission President Ursula von der Leyen will be in charge herself.
On May 17, the Commission plans to present its proposal to establish a hydrogen bank. The proposal is intended to support the development of a green hydrogen industry.
A week later, on May 24, a majortransportpackage is planned. The Commission wants to create a single space for mobility data. It will also present its proposal for an internal combustion engine phase-out and future fleet limits for heavy and medium-duty vehicles on the same day. Proposals to expand freight transport by rail are also on the agenda.
The right-to-repair proposal, which has already been postponed several times, was last announced for March but will not be published until May 31, according to the agenda. With the proposed legislation, the Commission aims to extend the life of consumer goods that can be repaired and avoid premature disposal. tho/mgr/leo
EU
European Commission
Data Act: BDI calls on German government to act
The Federation of German Industries (BDI) is calling on the German government to do more for the interests of German industry in the negotiations on the Data Act. For the German industry, it is essential “that the German government promptly agrees on a clear negotiating mandate for the EU Data Act and contributes constructively and resolutely to the dialogue in the Council and later in the trilogue,” writes the BDI in a position paper exclusively available to Europe.Table.
The BDI had already submitted a 24-page statement on the Data Act in May 2022. Obviously, however, the association is dissatisfied with the fact that the German government has still not taken a comprehensive position on this important law. In November, Berlin sent only a preliminary statement to Brussels, which does not cover all aspects of the draft law. For example, the controversial conditions for switching cloud providers are not mentioned.
No one-size-fits-all
For this reason, the BDI feels compelled to remind the German government once again of the importance of the Data Act. The BDI warns the “very undifferentiated ‘one-size-fits-all’ approach of all IoT services in the B2B and B2C environment” selected there leads to severe legal uncertainties in the entire industry and requires weighty adjustments.
Since the competitiveness of German and European industry is at stake, “sufficient time for the necessary clarifications of content is needed.” Wolfgang Weber, CEO of the German Electro and Digital Industry Association (ZVEI), also calls for “a differentiated approach” that takes into account the “differences between the B2B and B2C markets.”
Six key demands
The BDI has summarized its demands in six key points:
Clarification of key termssuch as data, data owner, and user, better mapping of industrial value chainsin the law, and a cleardemarcation from the provisions of the GDPR.
Better protection of trade secrets of data owners.
Clarification of requirements when switching between data processing services, adaptation to business reality as well as what is technically feasible. The undifferentiated unilateral termination option within 30 days is to be eliminated.
Restriction of obligations to provide data to public bodies to clearly defined emergencies. Extensive safeguards for confidentiality of trade secrets and appropriate cost compensation as well as a control mechanism.
No expansion of legal obligations for companies to provide data for scientific research (business-to-academia, B2A), as is being discussed within the federal government.
No interference with freedom of contract and technical requirements for smart contracts. vis
Data
Data law
Data Policy
Data protection
Digitization
German raw materials strategy: key points published
By revising its raw materials strategy, the German government wants to introduce, among other things, binding recycling quotas, strategic reserves, a public-private fund, and ESG standards for critical raw materials. This is according to the key points paper published yesterday by the German Federal Ministry of Economic Affairs (BMWK).
The BMWK plans to add further measures to the German government’s raw materials strategy, which was adopted in 2020. While the federal government has so far seen the responsibility of raw materials supply as basically lying with companies, it now recognizes that they are unable to secure their specific requirements for raw materials in the current unstable situation in markets and supply chains. The paper states that Companies should therefore be given greater support to safeguard “the economic and strategic interests of the Federal Republic in the area of raw materials” in the medium and long term.
The key issues paper identifies three priorities with the following measures:
1. Circular economy, resource efficiency, and recycling
Establishment of lead markets, e.g. through quotas for recycled raw materials and recyclates;
Analysis of individual material flows, dismantling of existing obstacles to the use of recycling raw materials;
Economic incentive systems, regulatory minimum requirements, and financing instruments to stimulate innovation in resource efficiency and recycling, and to accelerate market ramp-ups;
Continuation and expansion of research and development;
2. Diversification of raw material supply chains
Monitoring critical raw material supply chains;
Preservation and expansion of domestic and EU raw material production;
Strategic state stockpiling of critical raw materials in the public interest;
Support for strategic projects in Germany, the EU, and worldwide, including raw material funds to increase production capacities;
Establishment of further possibilities under state aid law by the EU Commission for state support of projects that are of strategic importance for the EU;
Strategic development and expansion of international bilateral and regional partnerships, flanked by trilateral cooperation with selected partners such as Japan or the USA if possible;
3. Ensuring a fair and sustainable market framework
Support the development of coherent ESG standards for the import of raw materials and their processed products under the EU Critical Raw Materials Act;
International cooperation for consistent ESG standards with the EU Commission, France, and other EU member states, USA, Canada, Australia, and other partners;
Expansion of advice and support for small and medium-sized enterprises (SMEs) with regard to the assessment of ESG risks and the development of ESG contributions.
The revision of the raw materials strategy is to be part of the circular economy strategy currently jointly developed by the German Federal Ministry for the Environment and the German Federal Ministry of Economic Affairs. The key points are also to be incorporated into the EU Commission’s proposal for a Critical Raw Materials Act announced for mid-March. leo
Federal Government
Germany
Raw materials
Raw materials strategy
Norway becomes hydrogen supplier
Germany and Norway want to create the conditions for significant hydrogenimports in the next decade. German Economics Minister Robert Habeck plans to sign a joint declaration on the subject during his trip to Norway this week. The Green politician will hold political talks and meet business representatives there on Thursday and Friday.
According to the Federal Ministry of Economics on Tuesday, Norway and Germany want to confirm their intention to ensure a large-scale hydrogen supply with the necessary infrastructure from Norway to Germany by 2030. On hydrogen as an energy carrier for the climate-friendly transformation of the economy, rest great hopes.
Talks are currently underway about the possible construction of a hydrogen pipeline. In the medium term, Germany wants to import so-called green hydrogen. In its production, renewable energies are used and emissions of climate-damaging carbon dioxide are avoided. The ministry said less climate-friendly hydrogen should only be imported for a “short transitional period.” dpa
Energy
Germany
Hydrogen
Norway
Robert Habeck
Heads
Mechthild Wörsdörfer – Manager of the energy crisis
Mechthild Wörsdörfer is Deputy Director General of the Directorate General for Energy.
Behind Mechthild Wörsdörfer lie a few very busy months. The top official is currently the most important German manager of the energy crisis in Brussels. As Deputy Director General of the Directorate-General for Energy, the Hesse native has been shuttling from meeting to meeting since February. Wörsdörfer explains the crisis policy and, together with her team, tries to cast the demands of the heads of state and government for alternative energy sources and measures against high electricity and gas prices into law.
“Many of our crisis proposals have been drafted within two to three weeks,” says the senior official. She says in more than 20 years at the Commission, she has never experienced a workload like the one she has had in recent months. As a woman in her mid-fifties, she remains calm thanks to her long experience in European politics.
Director at the International Energy Agency
After studying in Heidelberg and Montpellier, she earned a master’s degree in European Economics in Brussels. “Early on, I had a strong interest in economic policy issues combined with languages and European topics,” Wörsdörfer says. Initially, she worked for three years in the Brussels office of the BDI. She started at the Commission in 1995, initially in the Directorate-General for Industry.
She moved to DG ENER in 2010, where she later headed the planning and renewable energy departments. She showed courage to change in 2018 when she took a director’s post at the International Energy Agency (IEA) in Paris. “In Brussels, there are the positions of the EU institutions and those of the member states, but then at the International Energy Agency, it was also about policy in the US, Australia, and Japan. Like this, I was able to see some of the Brussels positions in the overall international picture.”
In the development of the hydrogen economy, for example, countries such as Japan and Chile are also highly active. Even in the current crisis, it is important for the Commission, member states, and companies to tap new international sources of energy supplies.
Electricity market design one of the next tasks
But Wörsdörfer also got deeper into the detail work in Paris with the large team of engineers and modelers at the IEA, which is known for its annual World Energy Outlook. “I translated the technical work of colleagues into policy recommendations. I really liked both the international and the level of detail,” Wörsdörfer reports. Now, in Brussels, she has to mediate between what politicians want and what experts think is technically feasible.
The challenges of the energy crisis were not yet obvious when Wörsdörfer returned to Brussels and took up the post of Deputy Director General in October 2021. Her predecessor Klaus-Dieter Borchardt had just retired, and the German was offered what she calls a “super package” of tasks. As coordinator for the “just and green transition” in DG ENER, she now looks after electricity market design in addition to renewables and efficiency.
Integrating Ukraine into the internal energy market
Integrating Ukraine into the internal energy market was also on the agenda at the time, but last February turned the entire agenda upside down. “Eighty percent of us are now dealing with crisis issues – in line with the long-term goals of the European Green Deal.”
The Brussels official refers to “one-two-two proposals” and means the emergency article the interventions are based on. For Wörsdörfer, a major success is that the 27 member countries have agreed to the crisis measures and that gas storage facilities have been filled. “At the same time, I am absolutely convinced that we need to get renewables into the market faster. We need to do more on load management, demand reduction, and maybe on storage. All the measures together will have an impact on prices. It won’t happen overnight, but hopefully, it will already have an impact this winter.”
What works in one state does not have to be the same across the EU
So, the EU needs staying power until the crisis measures take effect. Mechthild Wörsdörfer can take a deep breath herself with yoga and pilates. “I have to do at least two workouts a week, and I have to cycle to work every day, otherwise I can’t keep up this workload,” she says. In addition to the crisis measures, regular work on the Green Deal continues, with Wörsdörfer accompanying the trilogues on the legislative package. She no longer visits the theater and opera as often as she did during her time in Paris. Mechthild Wörsdörfer is still in Germany on a regular basis – to visit her family, but also increasingly for work visits in Berlin.
In Brussels, the next big task is already waiting: the heads of state and government have called for a new electricity market design to contain electricity prices. In a few months, the EU wants to bring about what normally takes years. “When it comes to new rules for the electricity market, the commission has to be mindful of the fact that something that works in one member state may not necessarily work across the EU,” Wörsdörfer says. “But hopefully our legislative proposal will pass quickly through Parliament and the Council so that it will have a positive impact soon.” Manuel Berkel
