Table.Briefing: Europe

EU coordination of traffic light coalition + Huawei’s battle for Europe + Habeck’s faith in electricity market

  • Traffic light government: EU coordination still stalled
  • Huawei’s battle for 5G in Europe: a foot in the door through legal action?
  • Scholz and Macron emphasize desire for close cooperation
  • Electricity prices: Habeck relies on market mechanisms
  • Experts: make space data available for fight against climate change
  • US not a role model for EU forced labor product import ban
  • German Energy Agency insists on integrated planning of energy infrastructures
  • European Parliament starts negotiations on AI regulation
  • Nvidia expects ARM takeover to fail
  • Elmar Brok: Mister Europe gets involved
Dear reader,

Robert Habeck made his inaugural visit to Brussels yesterday to meet with Ursula von der Leyen and half a dozen of her commissioners. The Green politician said that Germany should vote against the supplementary legal act on taxonomy in its current form, although this was his “personal-political opinion”.

The statement says a lot about the state of coordination on European policy in the traffic light government shortly after it took office. The coalition partners had promised more stringent coordination processes. But at least after the first endurance test, there is little to suggest that the SPD, the Greens, and the FDP will succeed in positioning themselves jointly in Brussels any better than their predecessors. Till Hoppe has the details and also names the key players in the government from an EU perspective.

Habeck also held talks in Brussels on how to ensure security of supply should the conflict with Russia actually escalate. The EU and US are working to finalize negotiations on the sanctions package in the event of a Russian attack on Ukraine. There is great concern that Moscow will, in return, curb energy supplies to Europe and exacerbate the turbulence on the markets.

The dispute over Huawei in 5G networks is now also occupying international arbitration, as the company has sued Sweden. Nico Beckert and Falk Steiner explain what the Chinese network supplier is trying to achieve and why this could set a precedent in Europe.

Your
Eugenie Ankowitsch
Image of Eugenie  Ankowitsch

Feature

Traffic light government: EU coordination still stalled

Robert Habeck’s agenda for his first trip to Brussels as a minister was plenty full – the list of interlocutors included Ursula von der Leyen and half a dozen of her commissioners. But the Green Party politician was asked almost exclusively about one topic during his visit: the German government’s position on the supplementary legal act on taxonomy. “My personal-political opinion is that if nuclear energy stays in it, as it is now, Germany should vote no,” Habeck replied.

Until shortly before the deadline last Friday evening, the German government had struggled to find wording for its statement on the Commission’s draft that would do justice to the differing views within the traffic light coalition. It was the first test of the commitment set out in the coalition agreement to act as a united federal government in Brussels and to “take a clear and early position on European Commission projects through more stringent coordination“. The SPD, Greens, and FDP did not really pass this test.

Habeck’s statement shows that the coalition partners are still at odds. The dispute over Germany’s position on taxonomy indicates “that not everything is running smoothly in the German government when it comes to EU coordination,” states Linn Selle, President of the European Movement Germany. In Berlin, as in other EU capitals, there is still a danger “that if one fails, ‘Brussels’ will be blamed at the flick of a switch”.

Other EU governments and experts have long criticized the lengthy coordination processes in the German government. Germany, the most important member state, is therefore too often unable to speak in the Council, they say. BDI President Siegfried Russwurm also recently warned, “The EU bodies decide even if Germany abstains.” Therefore, the new three-party coalition would do well to consider internal mechanisms to formulate German positions. There is “still room for improvement“.

Chancellery still sorting itself out

In the seven weeks since it took office, little has happened in the traffic light government. There will probably not be a separate cabinet committee, as initially discussed. The established coordination mechanisms will continue as before, particularly the meetings of the Secretaries of State for Europe and the heads of departments from the various ministries. As before, the coordination function lies with the Federal Ministry of Economics and Technology and the Federal Foreign Office. The only new aspect is that both houses are now in the hands of one party – the Greens.

The Chancellor’s Office also needs to sort itself out. Chancellor Olaf Scholz appointed his confidant Jörg Kukies as State Secretary for Economic and European Policy, and Undine Ruge moved up from Deputy to Head of the European Department. At her public appearance at the National Citizens’ Forum on the Conference on the Future of Europe, Ruge introduced herself as “European policy advisor to the chancellor” – a title that seemed reserved for Kukies.

There are indications that Ruge, like her predecessor Uwe Corsepius who was temporarily retired, will now prepare the EU summits as a sherpa. Her new deputy, Ole Funke, in turn, is a Kukies confidant; he already worked closely with him at the Federal Ministry of Finance.

It is therefore still uncertain what form the European coordination will take in the new federal government, according to Selle. At least the most important positions have been filled in the meantime (see EBD chart).

In the Foreign Office, the former London Ambassador Andreas Michaelis will be State Secretary and Sibylle Sorg Head of Department responsible for coordination, while Annalena Baerbock has appointed Anna Lührmann as Minister of State for Europe.

In the Federal Ministry for Economic Affairs and Climate Action (BMWK), Sven Giegold is driving the agenda at EU level as State Secretary, while Kirsten Scholl remains in office as Head of Department. At the Federal Ministry of Finance, Christian Lindner has appointed Carsten Pillath, an EU professional, as State Secretary. Judith Hermes has taken over as acting Head of the European Department.

  • European policy
  • Federal Government
  • Germany
  • Robert Habeck
  • Taxonomy
  • Traffic light coalition

Huawei’s battle for 5G in Europe: a foot in the door through legal action?

The conflict between Huawei and Sweden is heading into the next round. The Chinese communications company has now sued the Nordic state before an international arbitration court for excluding it from the 5G network expansion. This is according to a report from the International Centre for Settlement of Investment Disputes (ICSID). A spokesperson for Huawei Germany confirmed the lawsuit to Table.Media. This adds a new dimension to the dispute over the exclusion of Chinese providers from rolling out 5G networks in Western countries. In the worst-case scenario for Sweden, the country could be ordered to pay millions in damages. But lawsuits at arbitration courts can drag on for many years. It is also possible that Huawei is simply trying to deter other countries from making a similar decision.

The Huawei lawsuit against Sweden has a long history. Just over a year ago, the Chinese IT giant had already warned Sweden in a letter about a possible lawsuit. Addressing the prime minister at the time, Huawei wrote that the 5G exclusion had severely affected the business prospects of its Swedish subsidiary. The principle of “fair and equitable treatment” of international investors in the Swedish-Chinese investment agreement had been violated. (China.Table reported).

Sweden had not complied with Huawei’s request to reverse the company’s 5G exclusion. The company then sued the Swedish telecommunications regulator in April 2021. However, this lawsuit was also dismissed. Now Huawei seems to be grasping at the last straw and filed a lawsuit before an international arbitration court.

Huawei 5G undesirable in many markets

The Chinese group is facing de facto exclusion from the 5G rollout in many key markets. The USA and Australia, in particular, had wanted to completely exclude the company from the rollout of their 5G networks. The background to this are allegations that Huawei misused Australia’s communications infrastructure for espionage activities. European countries also shared these security concerns. By October 2021, 13 of the EU’s 27 member states had taken legal measures to prevent non-trustworthy providers from building and operating key parts of their 5G networks. Most states – including Sweden and Germany – are relying on requirements for telecommunications providers.

In Germany, the legislature added special requirements for providers to the BSI Act a year ago. According to this law, major network operators must provide the Federal Ministry of the Interior with clearance certificates from manufacturers whose systems they plan to install in critical telecommunications infrastructure. The BMI may then prohibit the deployment ex-ante. The Federal Ministry of the Interior has so far not responded to an inquiry from Europe.Table and China.Table on how often this had occurred.

Currently, the European Parliament, EU member states, and the EU Commission are also debating the so-called Network and Information Security Directive (NIS 2.0) as part of the trialogue. Huawei fears that the revision of the NIS Directive could lead to a significant expansion to areas deemed critical. If that were the case, the exclusion rules, which have so far mainly applied to core networks, could be applied to other areas, such as cloud services, throughout Europe.

Aside from Huawei, only two other network equipment suppliers have the capability of building large 5G networks. Both are European companies: Finland’s Nokia and Sweden’s Ericsson. The latter reported good annual figures for 2021 on Tuesday: Slumps in the Chinese market were more than offset by orders from other world regions such as North America – a balance sheet reflection of the geopolitical reality of 5G.

The lawsuit now filed by Huawei before an international arbitration court could cause a legal dispute lasting years. First, the arbitrators of the World Bank’s ICSID tribunal have to be appointed and determine whether the claim is valid. Once that is clarified, a great number of hearings will decide whether Huawei will receive financial compensation for the 5G exclusion. International arbitration tribunals decide whether states have breached a (bilateral) investment protection agreement – in other words, whether an investor’s rights have been violated. If this is the case, the investor will be awarded damages.

The original goal of investment protection agreements was to protect Western companies from expropriation in countries with inadequate legal systems. In the meantime, however, many Western countries have also signed investment protection agreements with each other. A few years ago, for example, Germany was sued by Vattenfall for damages amounting to €6.1 billion. The Swedish power company indirectly accused the Federal Republic of Germany of expropriation because of the nuclear phase-out. The argumentation: By phasing out nuclear power, the company would lose future profits, making its nuclear power plants in Germany worthless.

Vattenfall’s lawsuit against Germany dragged on for nine years – and ended in November 2021. The parties had settled out of court for payments amounting to €1.4 billion. However, Vattenfall filed a lawsuit at an international arbitration court and the German Constitutional Court.

Sweden is facing an arbitration claim for the first time, as reported by the expert portal Investment Arbitration Reporter (IAR). And it is also the first time Huawei got serious with a lawsuit threat. However, IAR’s experts speculate that Huawei could soon file more lawsuits as it is in a clinch with several states over its exclusion from the 5G rollout. Lengthy proceedings before international arbitration tribunals, which are also expensive for states, could deter other states from excluding Huawei from the 5G rollout. Nico Beckert/Falk Steiner

  • Cybersecurity
  • Digital policy
  • Digitization
  • Sweden

News

Scholz and Macron emphasize desire for close cooperation

French President Emmanuel Macron and German Chancellor Olaf Scholz have emphasized their desire to work closely together despite the two countries’ substantive differences on a number of issues. True, Scholz’s inauguration came at a difficult time with the COVID crisis and geopolitical challenges such as the Russia-Ukraine tension, Macron said Tuesday evening in Berlin. “But this makes a great and close coordination necessary.” Both are aware of the need to develop joint solutions, he said. “Germany is not France, and France is not Germany – but we are getting incredibly close,” Macron said. He acknowledged that there were different positions between the two governments on issues such as the use of nuclear energy and its classification as sustainable energy in the EU or arms exports.

They are largely in agreement on dealing with Russia and the threat of escalation along the Ukrainian-Russian border. Scholz again warned Russia of the consequences of an attack on Ukraine. “There are many troops stationed there, and it is, therefore, necessary that now everything is done to ensure that the situation develops differently than it is sometimes feared at present,” Scholz said. “We therefore also expect clear steps from Russia that contribute to a de-escalation of the situation, and we all agree that military aggression would have serious consequences.”

Macron believes in room for diplomacy

Macron wants to propose a path of de-escalation to Russian President Vladimir Putin. A conversation between the two is scheduled for Friday morning, Macron announced Tuesday. The goal was to take stock and obtain some clarifications. Élysée sources said Macron believed there was room for diplomacy and defusing the conflict. At the same time, however, he wanted to make it clear that Russia’s military actions against Ukraine would have dire consequences.

Thus, humanitarian measures are to be negotiated, and separatists loyal to the Kremlin are to be encouraged to negotiate with Ukraine on the status of the Donbas, according to Élysée circles. At the same time, a reduction in the military buildup or a public declaration by the Russian authorities of their intentions could also ease the situation. Last but not least, France could also imagine restraint as a sign of de-escalation, for example, an absence of hacking attacks.

France and Germany are relying on numerous dialogue formats to resolve the conflict. Consultative-level talks in the Normandy format, i.e., with representatives of Russia, Ukraine, France, and Germany, are scheduled for Wednesday in Paris.

US holds talks with energy producers

In light of the crisis on the Ukrainian-Russian border, the United States of America is holding talks with key energy-producing countries and companies around the world about possible rerouting of supplies to Europe, senior Biden administration officials said on Tuesday. They include liquefied natural gas (LNG) suppliers, they said.

“We are working to identify additional volumes of non-Russian natural gas, from North Africa and the Middle East to Asia and the United States,” a senior government official told reporters. “We expect to be prepared to secure alternative supplies that will cover a large part of the potential shortfall.” That involves identifying places in Europe that would be most affected by a Russian supply cutoff and where stockpiles are low, the official said.

The White House plan is complicated by the fact that the world’s LNG producers are already producing at capacity and are barely able to replace the large supplies from Russia. rtr/dpa

  • Emmanuel Macron
  • European policy
  • France
  • Germany
  • Olaf Scholz

Electricity prices: Habeck relies on market mechanisms

During his inaugural visit to Brussels, German Economics Minister Robert Habeck (Greens) also commented on the current energy price crisis and possible changes to the market design. In principle, Germany continues to rely on “a market-driven mechanism”, Habeck told journalists on Tuesday. He said the high electricity prices were due to demand for gas and other fossil fuels, while renewables were the cheaper form of energy. “If there is money to be made from it, then that is where the market will go. This incentive should not be taken away,” he said.

However, in the medium term, Germany will continue to depend on gas for power generation and thus on imports. Habeck, therefore, expressed his gratitude that the Netherlands, in particular, has once again increased its supplies, although the country is actually planning to phase out natural gas. “This secures the supply. In perspective, however, we need to diversify further,” the politician said.

In addition, storage capacities would have to be better utilized again in the future. Recently, there have been increasing calls for strategic gas reserves. The German government had already shown itself open to this, and at the most recent meeting of EU energy ministers, there was also talk of “more mutual solidarity” and “optimized use of European storage capacities“.

In addition, Habeck announced his intention to change the criteria in “certain areas” of the energy market. For example, the infrastructure must be rethought, and the ramp-up of hydrogen must be promoted more strongly. The so-called sector coupling between electricity, mobility, and heat must also be better reflected in the market. til

  • Climate & Environment
  • Climate Policy
  • Energy
  • Energy policy
  • Natural gas
  • Power

Experts: make space data available for fight against climate change

Leading space experts have highlighted the importance of space-based data and technologies to the Green Deal. There is a tremendous wealth of data that can help monitor climate change, Simonetta Cheli said Tuesday at the European Space Conference in Brussels. This data needs to be more specifically exploited so that it supports concrete steps to combat climate change, said the director of Earth monitoring at the European Space Agency (ESA).

As examples, Cheli cited the COP-26 resolutions to halt deforestation and reduce methane emissions. Already, tools exist to help implement these resolutions. “We need to make these tools available to those implementing the measures,” she said. Currently, they are working on a mission to address anthropogenic emissions such as CO2.

Europe is a space power, said European Commissioner for Internal Market Thierry Breton in his speech at the start of the conference. But the space sector is undergoing massive change. One reason for this is the rise of private companies. At the same time, space is a contested area, which was made clear not least by the recent Russian missile defense test. “Europe must defend its interests and its freedom to operate in space,” he said.

First Global Gateway initiative

Breton announced that he would soon present the planned legislative proposal for a space-based European connectivity infrastructure. Part of this initiative is to make high-speed internet access available to all Europeans. “Dead zones” should no longer exist. Thanks to quantum encryption, this will be a highly secure infrastructure. It will also be able to provide the necessary connectivity for Africa, making it a first-of-its-kind Global Gateway initiative. He said he hopes the first services will be deployed from 2024.

It is also planned to present a strategy for the modernization of the Copernicus Earth observation system. In the future, its functionality should be better aligned with current needs, including environmental protection and digitization.

The event also marked the launch of the €1 billion European Space Fund. It targets start-ups and innovations in the space sector. 

Anna Christmann, the German government’s coordinator for German aerospace since the beginning of January, also emphasized the importance of space-based technologies in the fight against climate change. “For me, aerospace policy is a key area in the fight against the climate crisis,” the Green Party politician said. She announced an early revision of the German government’s space strategy. The essential goal is to drive a green and digital transformation in the economy and society.

Christmann also emphasized the importance of international collaborations and referred, among other things, to the development of the small German-French satellite Merlin, which is to observe methane in the Earth’s atmosphere. sas

  • Climate & Environment
  • Digitization
  • Technology

No US model for EU forced labor product import ban

The European Commission continues to look for ways to ban imports of products made from forced labor. Sabine Weyand, Director-General for Trade from the EU Commission, rejects the approach by US authorities. The US model, which combines product-specific bans with origin bans, is “not effective,” Weyand told the European Parliament’s trade committee Tuesday. In China’s case, for example, cotton products linked to Xinjiang, but also products from Xinjiang in general, would be targeted.

The United States follows the basic assumption that all goods from Xinjiang involve forced labor. Importers are obligated to disprove this. This is a “heavy burden,” says Weyand. Under the relevant forced labor section of the US Tariff Act, US Customs is allowed to inspect and block imports for forced labor. Weyand sees this as a potential bureaucratic nightmare for EU customs processing. As an alternative, she advocated including a ban on imports of forced labor products in the planned EU Supply Chain Act. Independent legislation like that in the US would also require more time.

The EU supply chain law is to be presented on February 15. However, the EU Commission has not yet internally agreed on whether products from forced labor should be included (China.Table reported). Time could run short.

Bernd Lange, Chair of the European Parliament’s Committee on International Trade, criticized the internal disagreements of the EU Commission. “It is unfathomable that an internal body meeting in secret is slowing down the EU Commission – and thus putting off the European Parliament and the EU member states for almost a year,” Lange said. “At the latest after the State of the Union speech, in which Commission President Ursula von der Leyen promised to take decisive action against forced labor, there should have been momentum in the EU Commission.” The EU Commission chief had announced an import ban in September (China.Table reported). The presentation date for the EU supply chain law has already been postponed several times since spring 2021. ari

  • Supply Chain Act
  • Supply chains
  • Trade

German Energy Agency insists on integrated planning of energy infrastructures

According to the German Energy Agency (dena), the energy networks for the different energy sources should be coordinated with each other in future planning. The integrative approach, together with accelerated approval procedures for green power plants, would help to develop the infrastructure efficiently and drive forward the energy transition. This is the conclusion reached by the authors of the final report of the third dena grid study, which the state-owned group presented on Tuesday.

The pressure is very high, emphasized dena CEO Andreas Kuhlmann in view of the German government’s plans to phase out coal as early as 2030 and to cover 80 percent of the energy supply with renewables in the same year. Therefore, the authors of the study propose a System Engineering Plan (SEP) that considers the infrastructures of gas, hydrogen, electricity, and thermal energy together. This is to determine the need for additional transport capacity and to identify optimization opportunities for the power grid’s performance.

The grids for gas and electricity are currently still planned separately. According to dena, this results in grid bottlenecks, a lack of cross-sector availability of renewables, and rising energy costs.

Such a SEP must be anchored in law and updated every four years, the agency demands. However, in addition to the federal government and the state governments, network operators, a panel of experts, and the citizens themselves should also be involved, the authors appeal. This would also be in line with the increased citizen participation planned in the coalition agreement.

Hydrogen transport in the natural gas network

The authors of the dena study also suggest that the increasing volumes of hydrogen should primarily be transported in the existing natural gas network. There will be more and more free capacity there in the course of the switch to climate-friendly fuels. To make better use of all networks, however, the government would also have to reform taxes and levies. If, for example, taxes were staggered more precisely according to the time the networks were used, lines could be utilized more efficiently.

However, the focus of the burden on energy sources must always be on their greenhouse gas emissions. In order to secure the supply, additional incentives will also be needed in the future for energy suppliers who compensate for fluctuating feed-ins from wind or solar power, for example.

The new network study is the third of its kind after 2005 and 2010. The studies often serve political decision-making bodies as a basis for the further development of the energy infrastructure and are based on a stakeholder dialog involving network operators, the energy industry, responsible authorities, politicians, and civil society. luk with rtr/dpa

  • Climate & Environment
  • Climate Policy
  • Energy
  • Energy policy
  • Natural gas
  • Power

European Parliament starts negotiations on AI regulation

After a months-long competence dispute blocked the start of negotiations on the Artificial Intelligence (AI) Regulation in the European Parliament, the lead committees IMCO (Internal Market and Consumer Protection Committee) and LIBE (Civil Liberties, Justice and Home Affairs Committee) held a first joint debate on Tuesday afternoon. For two and a half hours, MEPs confronted the Director General of the responsible Directorate General Connect Roberto Viola with their open questions and concerns about the draft law presented by the European Commission in April 2021.

Criticism of exceptions for automated facial recognition

IMCO rapporteur Brando Benifei (S&D) praised the Commission proposal in principle but criticized Article 5 (prohibited AI applications) for including too many exceptions for automated real-time facial recognition in public spaces: The Commission wants to continue to allow the controversial practice for law enforcement purposes, such as preventing terrorist attacks or searching for missing children. Benifei fears an abuse of these exceptions: “The exceptions must not be interpreted too broadly by individual member states because that would restrict the fundamental rights of citizens,” he said. Director General Viola stressed that the exceptions in the regulation are sufficiently limited from the point of view of the Commission.

Benifei also strongly criticized the regulations on conformity assessment of AI applications. The Commission’s proposal requires third-party conformity assessment only for those high-risk AI systems that are related to products (i.e., are safety components of products or constitute a standalone product). For all other AI applications, including high-risk applications that may pose major risks to fundamental rights, manufacturers can thus perform the conformity assessment themselves.

In the case of the GDPR and the Product Safety Directive, he said, a conscious decision was made not to have these self-certifications in order to prevent unsafe products from entering the internal market. “The text is therefore currently insufficient to provide sufficient assurance to citizens,” Benifei said. “Self-certification is not an easy matter,” countered Director General Viola. Producers would be liable for it, and users would be entitled to compensation.

LIBE rapporteur insists on future security

LIBE rapporteur Dragoş Tudorache (Renew) called for systemic risks to democracy, such as influencing elections, to also be included in the list of high-risk systems (Annex 3 of the regulation). Here, Viola pointed out that this aspect is already addressed in the legislative proposal on online political advertising (Europe.Table reported).

Tudorache also suggested that the AI regulations need to be future-proof, and to that end, additional areas should sometimes be added to the list of high-risk systems. “Definitely,” Viola agreed with the Romanian and assured that the Commission could do this through delegated acts.

Report to be ready by April 5

According to the official schedule of IMCO and LIBE, a first hearing with experts and scientists is to be held on March 16. Benifei and Tudorache plan to draft their joint report by April 5. The IMCO and LIBE members plan to discuss this in a joint committee meeting on April 20. The committees plan to vote on the report on September 29. A vote in the plenary of the European Parliament could take place in the November session.

LIBE and IMCO plan to vote on the opinions of the five co-advisory committees (JURI, ITRE, CULT, ENVI, TRAN) on March 13 (ENVI opinion), May 16 (JURI opinion), May 17 (CULT opinion), June 2 (ITRE opinion), and June 15 (TRAN opinion), according to a Europe.Table request from the European Parliament. koj

  • Artificial intelligence
  • Digital policy
  • Digitization
  • European policy

Nvidia expects ARM takeover to fail

The US graphics card specialist is preparing for a failure of its takeover bid for the British chip developer Arm, according to an agency report. Nvidia has told business partners that it does not expect the deal to be completed, the Bloomberg agency reported, citing people familiar with the matter.

Meanwhile, Arm’s parent SoftBank is pushing ahead with the chipmaker’s IPO. An Nvidia spokesman said one continued to believe Arm could benefit from the acquisition. Nvidia had made a $40 billion (€35.5 billion) offer for the chipmaker in 2020, but it ran into competition concerns. The EU Commission is also still reviewing the deal. rtr

  • Digital policy
  • Digitization
  • Semiconductor
  • Technology

Profile

Elmar Brok: Mister Europe interferes where it pleases him

Elmar Brok sat in the European Parliament for the CDU for almost four decades.

He had actually already expected a collapse, perhaps after half a year. After all the years in Brussels – almost four decades in the end – that would have been a reasonable expectation. But the 75-year-old East Westphalian Elmar Brok, for a long time Germany’s best-known man in the European Parliament, the CDU veteran, “Mister Europe”, got along quite well after his not entirely voluntary departure from European politics in 2019 as a retired MEP. “I am not forced into any schedule and am once again master of myself,” he says.

Actually, Brok would have liked to add on his ninth term in Brussels and Strasbourg in 2019. But the CDU district chairmen no longer wanted to field him. Brok, the longest-serving member of the European Parliament and EU reformer, who helped initiate the Treaties of Amsterdam, Nice, and Lisbon. Brok, one of the EU’s most distinguished foreign policy experts, who has twice chaired the Committee on Foreign Affairs, Human Rights, Security, and Defense Policy. Brok, the unique man with the walrus mustache and the breast pocket handkerchief, about whom many stories could be told in the long corridors of the EU Parliament. This Elmar Brok should now finally be put on the sidelines.

Many tasks despite EP farewell

When he then gave his farewell speech in the European Parliament, his voice failed him, and some tears flowed. But be that as it may, the timing of his departure was right. “I don’t miss Brussels,” he says today. “Now I just get involved where I want to.”

Nevertheless, he has kept his Brussels apartment. He still travels there twice a month. He goes to Berlin just as often. But he is much more at home with his wife in Bielefeld-Heepen and out in the nearby Teutoburg Forest. He would like to travel more, but the COVID pandemic makes a lot of things impossible.

Not that he gets bored: He is Senior Advisor at the Munich Security Conference and Senior Fellow at the think tank Aspen Institute in Berlin. He is vice president of the Christian Democratic International and a member of the board of the European People’s Party. Every now and then, he writes something. And, of course, he continues to advise in talks. His cell phone was his all-purpose weapon in Brussels, the numbers of powerful interlocutors around the world his capital. And those who want to use it call Brok. Even if that doesn’t happen as often as it used to.

Europe lacks hard power

But Europe and its future remain close to his heart. The importance of giving the EU more decision-making power and the ability to act, especially in foreign and defense policy, is evident once again in view of Russia’s aggressive actions in recent days. Europe needs more hard power to complement NATO. “Being the world champion in soft power is not enough when it comes to war and peace,” Brok stressed. The EU states would spend far more money on the military than Russia, but with a pitiful result. The reason is a lack of cooperation and synergy.

“Born, married, European Parliament” is how Helmut Kohl is said to have once summed up Brok’s life. “A made-up quote that you can’t get out of the world,” says the person described himself. “But on the broad lines of my life, of course, it applies.” Now, he says, the focus is more on his family, his three children, and five grandchildren. “Whether that benefits everyone in the family,” he says mischievously, “I can’t always see.” Adrian Meyer

  • European policy
  • International

Europe.Table Editorial Office

EUROPE.TABLE EDITORS

Licenses:
    • Traffic light government: EU coordination still stalled
    • Huawei’s battle for 5G in Europe: a foot in the door through legal action?
    • Scholz and Macron emphasize desire for close cooperation
    • Electricity prices: Habeck relies on market mechanisms
    • Experts: make space data available for fight against climate change
    • US not a role model for EU forced labor product import ban
    • German Energy Agency insists on integrated planning of energy infrastructures
    • European Parliament starts negotiations on AI regulation
    • Nvidia expects ARM takeover to fail
    • Elmar Brok: Mister Europe gets involved
    Dear reader,

    Robert Habeck made his inaugural visit to Brussels yesterday to meet with Ursula von der Leyen and half a dozen of her commissioners. The Green politician said that Germany should vote against the supplementary legal act on taxonomy in its current form, although this was his “personal-political opinion”.

    The statement says a lot about the state of coordination on European policy in the traffic light government shortly after it took office. The coalition partners had promised more stringent coordination processes. But at least after the first endurance test, there is little to suggest that the SPD, the Greens, and the FDP will succeed in positioning themselves jointly in Brussels any better than their predecessors. Till Hoppe has the details and also names the key players in the government from an EU perspective.

    Habeck also held talks in Brussels on how to ensure security of supply should the conflict with Russia actually escalate. The EU and US are working to finalize negotiations on the sanctions package in the event of a Russian attack on Ukraine. There is great concern that Moscow will, in return, curb energy supplies to Europe and exacerbate the turbulence on the markets.

    The dispute over Huawei in 5G networks is now also occupying international arbitration, as the company has sued Sweden. Nico Beckert and Falk Steiner explain what the Chinese network supplier is trying to achieve and why this could set a precedent in Europe.

    Your
    Eugenie Ankowitsch
    Image of Eugenie  Ankowitsch

    Feature

    Traffic light government: EU coordination still stalled

    Robert Habeck’s agenda for his first trip to Brussels as a minister was plenty full – the list of interlocutors included Ursula von der Leyen and half a dozen of her commissioners. But the Green Party politician was asked almost exclusively about one topic during his visit: the German government’s position on the supplementary legal act on taxonomy. “My personal-political opinion is that if nuclear energy stays in it, as it is now, Germany should vote no,” Habeck replied.

    Until shortly before the deadline last Friday evening, the German government had struggled to find wording for its statement on the Commission’s draft that would do justice to the differing views within the traffic light coalition. It was the first test of the commitment set out in the coalition agreement to act as a united federal government in Brussels and to “take a clear and early position on European Commission projects through more stringent coordination“. The SPD, Greens, and FDP did not really pass this test.

    Habeck’s statement shows that the coalition partners are still at odds. The dispute over Germany’s position on taxonomy indicates “that not everything is running smoothly in the German government when it comes to EU coordination,” states Linn Selle, President of the European Movement Germany. In Berlin, as in other EU capitals, there is still a danger “that if one fails, ‘Brussels’ will be blamed at the flick of a switch”.

    Other EU governments and experts have long criticized the lengthy coordination processes in the German government. Germany, the most important member state, is therefore too often unable to speak in the Council, they say. BDI President Siegfried Russwurm also recently warned, “The EU bodies decide even if Germany abstains.” Therefore, the new three-party coalition would do well to consider internal mechanisms to formulate German positions. There is “still room for improvement“.

    Chancellery still sorting itself out

    In the seven weeks since it took office, little has happened in the traffic light government. There will probably not be a separate cabinet committee, as initially discussed. The established coordination mechanisms will continue as before, particularly the meetings of the Secretaries of State for Europe and the heads of departments from the various ministries. As before, the coordination function lies with the Federal Ministry of Economics and Technology and the Federal Foreign Office. The only new aspect is that both houses are now in the hands of one party – the Greens.

    The Chancellor’s Office also needs to sort itself out. Chancellor Olaf Scholz appointed his confidant Jörg Kukies as State Secretary for Economic and European Policy, and Undine Ruge moved up from Deputy to Head of the European Department. At her public appearance at the National Citizens’ Forum on the Conference on the Future of Europe, Ruge introduced herself as “European policy advisor to the chancellor” – a title that seemed reserved for Kukies.

    There are indications that Ruge, like her predecessor Uwe Corsepius who was temporarily retired, will now prepare the EU summits as a sherpa. Her new deputy, Ole Funke, in turn, is a Kukies confidant; he already worked closely with him at the Federal Ministry of Finance.

    It is therefore still uncertain what form the European coordination will take in the new federal government, according to Selle. At least the most important positions have been filled in the meantime (see EBD chart).

    In the Foreign Office, the former London Ambassador Andreas Michaelis will be State Secretary and Sibylle Sorg Head of Department responsible for coordination, while Annalena Baerbock has appointed Anna Lührmann as Minister of State for Europe.

    In the Federal Ministry for Economic Affairs and Climate Action (BMWK), Sven Giegold is driving the agenda at EU level as State Secretary, while Kirsten Scholl remains in office as Head of Department. At the Federal Ministry of Finance, Christian Lindner has appointed Carsten Pillath, an EU professional, as State Secretary. Judith Hermes has taken over as acting Head of the European Department.

    • European policy
    • Federal Government
    • Germany
    • Robert Habeck
    • Taxonomy
    • Traffic light coalition

    Huawei’s battle for 5G in Europe: a foot in the door through legal action?

    The conflict between Huawei and Sweden is heading into the next round. The Chinese communications company has now sued the Nordic state before an international arbitration court for excluding it from the 5G network expansion. This is according to a report from the International Centre for Settlement of Investment Disputes (ICSID). A spokesperson for Huawei Germany confirmed the lawsuit to Table.Media. This adds a new dimension to the dispute over the exclusion of Chinese providers from rolling out 5G networks in Western countries. In the worst-case scenario for Sweden, the country could be ordered to pay millions in damages. But lawsuits at arbitration courts can drag on for many years. It is also possible that Huawei is simply trying to deter other countries from making a similar decision.

    The Huawei lawsuit against Sweden has a long history. Just over a year ago, the Chinese IT giant had already warned Sweden in a letter about a possible lawsuit. Addressing the prime minister at the time, Huawei wrote that the 5G exclusion had severely affected the business prospects of its Swedish subsidiary. The principle of “fair and equitable treatment” of international investors in the Swedish-Chinese investment agreement had been violated. (China.Table reported).

    Sweden had not complied with Huawei’s request to reverse the company’s 5G exclusion. The company then sued the Swedish telecommunications regulator in April 2021. However, this lawsuit was also dismissed. Now Huawei seems to be grasping at the last straw and filed a lawsuit before an international arbitration court.

    Huawei 5G undesirable in many markets

    The Chinese group is facing de facto exclusion from the 5G rollout in many key markets. The USA and Australia, in particular, had wanted to completely exclude the company from the rollout of their 5G networks. The background to this are allegations that Huawei misused Australia’s communications infrastructure for espionage activities. European countries also shared these security concerns. By October 2021, 13 of the EU’s 27 member states had taken legal measures to prevent non-trustworthy providers from building and operating key parts of their 5G networks. Most states – including Sweden and Germany – are relying on requirements for telecommunications providers.

    In Germany, the legislature added special requirements for providers to the BSI Act a year ago. According to this law, major network operators must provide the Federal Ministry of the Interior with clearance certificates from manufacturers whose systems they plan to install in critical telecommunications infrastructure. The BMI may then prohibit the deployment ex-ante. The Federal Ministry of the Interior has so far not responded to an inquiry from Europe.Table and China.Table on how often this had occurred.

    Currently, the European Parliament, EU member states, and the EU Commission are also debating the so-called Network and Information Security Directive (NIS 2.0) as part of the trialogue. Huawei fears that the revision of the NIS Directive could lead to a significant expansion to areas deemed critical. If that were the case, the exclusion rules, which have so far mainly applied to core networks, could be applied to other areas, such as cloud services, throughout Europe.

    Aside from Huawei, only two other network equipment suppliers have the capability of building large 5G networks. Both are European companies: Finland’s Nokia and Sweden’s Ericsson. The latter reported good annual figures for 2021 on Tuesday: Slumps in the Chinese market were more than offset by orders from other world regions such as North America – a balance sheet reflection of the geopolitical reality of 5G.

    The lawsuit now filed by Huawei before an international arbitration court could cause a legal dispute lasting years. First, the arbitrators of the World Bank’s ICSID tribunal have to be appointed and determine whether the claim is valid. Once that is clarified, a great number of hearings will decide whether Huawei will receive financial compensation for the 5G exclusion. International arbitration tribunals decide whether states have breached a (bilateral) investment protection agreement – in other words, whether an investor’s rights have been violated. If this is the case, the investor will be awarded damages.

    The original goal of investment protection agreements was to protect Western companies from expropriation in countries with inadequate legal systems. In the meantime, however, many Western countries have also signed investment protection agreements with each other. A few years ago, for example, Germany was sued by Vattenfall for damages amounting to €6.1 billion. The Swedish power company indirectly accused the Federal Republic of Germany of expropriation because of the nuclear phase-out. The argumentation: By phasing out nuclear power, the company would lose future profits, making its nuclear power plants in Germany worthless.

    Vattenfall’s lawsuit against Germany dragged on for nine years – and ended in November 2021. The parties had settled out of court for payments amounting to €1.4 billion. However, Vattenfall filed a lawsuit at an international arbitration court and the German Constitutional Court.

    Sweden is facing an arbitration claim for the first time, as reported by the expert portal Investment Arbitration Reporter (IAR). And it is also the first time Huawei got serious with a lawsuit threat. However, IAR’s experts speculate that Huawei could soon file more lawsuits as it is in a clinch with several states over its exclusion from the 5G rollout. Lengthy proceedings before international arbitration tribunals, which are also expensive for states, could deter other states from excluding Huawei from the 5G rollout. Nico Beckert/Falk Steiner

    • Cybersecurity
    • Digital policy
    • Digitization
    • Sweden

    News

    Scholz and Macron emphasize desire for close cooperation

    French President Emmanuel Macron and German Chancellor Olaf Scholz have emphasized their desire to work closely together despite the two countries’ substantive differences on a number of issues. True, Scholz’s inauguration came at a difficult time with the COVID crisis and geopolitical challenges such as the Russia-Ukraine tension, Macron said Tuesday evening in Berlin. “But this makes a great and close coordination necessary.” Both are aware of the need to develop joint solutions, he said. “Germany is not France, and France is not Germany – but we are getting incredibly close,” Macron said. He acknowledged that there were different positions between the two governments on issues such as the use of nuclear energy and its classification as sustainable energy in the EU or arms exports.

    They are largely in agreement on dealing with Russia and the threat of escalation along the Ukrainian-Russian border. Scholz again warned Russia of the consequences of an attack on Ukraine. “There are many troops stationed there, and it is, therefore, necessary that now everything is done to ensure that the situation develops differently than it is sometimes feared at present,” Scholz said. “We therefore also expect clear steps from Russia that contribute to a de-escalation of the situation, and we all agree that military aggression would have serious consequences.”

    Macron believes in room for diplomacy

    Macron wants to propose a path of de-escalation to Russian President Vladimir Putin. A conversation between the two is scheduled for Friday morning, Macron announced Tuesday. The goal was to take stock and obtain some clarifications. Élysée sources said Macron believed there was room for diplomacy and defusing the conflict. At the same time, however, he wanted to make it clear that Russia’s military actions against Ukraine would have dire consequences.

    Thus, humanitarian measures are to be negotiated, and separatists loyal to the Kremlin are to be encouraged to negotiate with Ukraine on the status of the Donbas, according to Élysée circles. At the same time, a reduction in the military buildup or a public declaration by the Russian authorities of their intentions could also ease the situation. Last but not least, France could also imagine restraint as a sign of de-escalation, for example, an absence of hacking attacks.

    France and Germany are relying on numerous dialogue formats to resolve the conflict. Consultative-level talks in the Normandy format, i.e., with representatives of Russia, Ukraine, France, and Germany, are scheduled for Wednesday in Paris.

    US holds talks with energy producers

    In light of the crisis on the Ukrainian-Russian border, the United States of America is holding talks with key energy-producing countries and companies around the world about possible rerouting of supplies to Europe, senior Biden administration officials said on Tuesday. They include liquefied natural gas (LNG) suppliers, they said.

    “We are working to identify additional volumes of non-Russian natural gas, from North Africa and the Middle East to Asia and the United States,” a senior government official told reporters. “We expect to be prepared to secure alternative supplies that will cover a large part of the potential shortfall.” That involves identifying places in Europe that would be most affected by a Russian supply cutoff and where stockpiles are low, the official said.

    The White House plan is complicated by the fact that the world’s LNG producers are already producing at capacity and are barely able to replace the large supplies from Russia. rtr/dpa

    • Emmanuel Macron
    • European policy
    • France
    • Germany
    • Olaf Scholz

    Electricity prices: Habeck relies on market mechanisms

    During his inaugural visit to Brussels, German Economics Minister Robert Habeck (Greens) also commented on the current energy price crisis and possible changes to the market design. In principle, Germany continues to rely on “a market-driven mechanism”, Habeck told journalists on Tuesday. He said the high electricity prices were due to demand for gas and other fossil fuels, while renewables were the cheaper form of energy. “If there is money to be made from it, then that is where the market will go. This incentive should not be taken away,” he said.

    However, in the medium term, Germany will continue to depend on gas for power generation and thus on imports. Habeck, therefore, expressed his gratitude that the Netherlands, in particular, has once again increased its supplies, although the country is actually planning to phase out natural gas. “This secures the supply. In perspective, however, we need to diversify further,” the politician said.

    In addition, storage capacities would have to be better utilized again in the future. Recently, there have been increasing calls for strategic gas reserves. The German government had already shown itself open to this, and at the most recent meeting of EU energy ministers, there was also talk of “more mutual solidarity” and “optimized use of European storage capacities“.

    In addition, Habeck announced his intention to change the criteria in “certain areas” of the energy market. For example, the infrastructure must be rethought, and the ramp-up of hydrogen must be promoted more strongly. The so-called sector coupling between electricity, mobility, and heat must also be better reflected in the market. til

    • Climate & Environment
    • Climate Policy
    • Energy
    • Energy policy
    • Natural gas
    • Power

    Experts: make space data available for fight against climate change

    Leading space experts have highlighted the importance of space-based data and technologies to the Green Deal. There is a tremendous wealth of data that can help monitor climate change, Simonetta Cheli said Tuesday at the European Space Conference in Brussels. This data needs to be more specifically exploited so that it supports concrete steps to combat climate change, said the director of Earth monitoring at the European Space Agency (ESA).

    As examples, Cheli cited the COP-26 resolutions to halt deforestation and reduce methane emissions. Already, tools exist to help implement these resolutions. “We need to make these tools available to those implementing the measures,” she said. Currently, they are working on a mission to address anthropogenic emissions such as CO2.

    Europe is a space power, said European Commissioner for Internal Market Thierry Breton in his speech at the start of the conference. But the space sector is undergoing massive change. One reason for this is the rise of private companies. At the same time, space is a contested area, which was made clear not least by the recent Russian missile defense test. “Europe must defend its interests and its freedom to operate in space,” he said.

    First Global Gateway initiative

    Breton announced that he would soon present the planned legislative proposal for a space-based European connectivity infrastructure. Part of this initiative is to make high-speed internet access available to all Europeans. “Dead zones” should no longer exist. Thanks to quantum encryption, this will be a highly secure infrastructure. It will also be able to provide the necessary connectivity for Africa, making it a first-of-its-kind Global Gateway initiative. He said he hopes the first services will be deployed from 2024.

    It is also planned to present a strategy for the modernization of the Copernicus Earth observation system. In the future, its functionality should be better aligned with current needs, including environmental protection and digitization.

    The event also marked the launch of the €1 billion European Space Fund. It targets start-ups and innovations in the space sector. 

    Anna Christmann, the German government’s coordinator for German aerospace since the beginning of January, also emphasized the importance of space-based technologies in the fight against climate change. “For me, aerospace policy is a key area in the fight against the climate crisis,” the Green Party politician said. She announced an early revision of the German government’s space strategy. The essential goal is to drive a green and digital transformation in the economy and society.

    Christmann also emphasized the importance of international collaborations and referred, among other things, to the development of the small German-French satellite Merlin, which is to observe methane in the Earth’s atmosphere. sas

    • Climate & Environment
    • Digitization
    • Technology

    No US model for EU forced labor product import ban

    The European Commission continues to look for ways to ban imports of products made from forced labor. Sabine Weyand, Director-General for Trade from the EU Commission, rejects the approach by US authorities. The US model, which combines product-specific bans with origin bans, is “not effective,” Weyand told the European Parliament’s trade committee Tuesday. In China’s case, for example, cotton products linked to Xinjiang, but also products from Xinjiang in general, would be targeted.

    The United States follows the basic assumption that all goods from Xinjiang involve forced labor. Importers are obligated to disprove this. This is a “heavy burden,” says Weyand. Under the relevant forced labor section of the US Tariff Act, US Customs is allowed to inspect and block imports for forced labor. Weyand sees this as a potential bureaucratic nightmare for EU customs processing. As an alternative, she advocated including a ban on imports of forced labor products in the planned EU Supply Chain Act. Independent legislation like that in the US would also require more time.

    The EU supply chain law is to be presented on February 15. However, the EU Commission has not yet internally agreed on whether products from forced labor should be included (China.Table reported). Time could run short.

    Bernd Lange, Chair of the European Parliament’s Committee on International Trade, criticized the internal disagreements of the EU Commission. “It is unfathomable that an internal body meeting in secret is slowing down the EU Commission – and thus putting off the European Parliament and the EU member states for almost a year,” Lange said. “At the latest after the State of the Union speech, in which Commission President Ursula von der Leyen promised to take decisive action against forced labor, there should have been momentum in the EU Commission.” The EU Commission chief had announced an import ban in September (China.Table reported). The presentation date for the EU supply chain law has already been postponed several times since spring 2021. ari

    • Supply Chain Act
    • Supply chains
    • Trade

    German Energy Agency insists on integrated planning of energy infrastructures

    According to the German Energy Agency (dena), the energy networks for the different energy sources should be coordinated with each other in future planning. The integrative approach, together with accelerated approval procedures for green power plants, would help to develop the infrastructure efficiently and drive forward the energy transition. This is the conclusion reached by the authors of the final report of the third dena grid study, which the state-owned group presented on Tuesday.

    The pressure is very high, emphasized dena CEO Andreas Kuhlmann in view of the German government’s plans to phase out coal as early as 2030 and to cover 80 percent of the energy supply with renewables in the same year. Therefore, the authors of the study propose a System Engineering Plan (SEP) that considers the infrastructures of gas, hydrogen, electricity, and thermal energy together. This is to determine the need for additional transport capacity and to identify optimization opportunities for the power grid’s performance.

    The grids for gas and electricity are currently still planned separately. According to dena, this results in grid bottlenecks, a lack of cross-sector availability of renewables, and rising energy costs.

    Such a SEP must be anchored in law and updated every four years, the agency demands. However, in addition to the federal government and the state governments, network operators, a panel of experts, and the citizens themselves should also be involved, the authors appeal. This would also be in line with the increased citizen participation planned in the coalition agreement.

    Hydrogen transport in the natural gas network

    The authors of the dena study also suggest that the increasing volumes of hydrogen should primarily be transported in the existing natural gas network. There will be more and more free capacity there in the course of the switch to climate-friendly fuels. To make better use of all networks, however, the government would also have to reform taxes and levies. If, for example, taxes were staggered more precisely according to the time the networks were used, lines could be utilized more efficiently.

    However, the focus of the burden on energy sources must always be on their greenhouse gas emissions. In order to secure the supply, additional incentives will also be needed in the future for energy suppliers who compensate for fluctuating feed-ins from wind or solar power, for example.

    The new network study is the third of its kind after 2005 and 2010. The studies often serve political decision-making bodies as a basis for the further development of the energy infrastructure and are based on a stakeholder dialog involving network operators, the energy industry, responsible authorities, politicians, and civil society. luk with rtr/dpa

    • Climate & Environment
    • Climate Policy
    • Energy
    • Energy policy
    • Natural gas
    • Power

    European Parliament starts negotiations on AI regulation

    After a months-long competence dispute blocked the start of negotiations on the Artificial Intelligence (AI) Regulation in the European Parliament, the lead committees IMCO (Internal Market and Consumer Protection Committee) and LIBE (Civil Liberties, Justice and Home Affairs Committee) held a first joint debate on Tuesday afternoon. For two and a half hours, MEPs confronted the Director General of the responsible Directorate General Connect Roberto Viola with their open questions and concerns about the draft law presented by the European Commission in April 2021.

    Criticism of exceptions for automated facial recognition

    IMCO rapporteur Brando Benifei (S&D) praised the Commission proposal in principle but criticized Article 5 (prohibited AI applications) for including too many exceptions for automated real-time facial recognition in public spaces: The Commission wants to continue to allow the controversial practice for law enforcement purposes, such as preventing terrorist attacks or searching for missing children. Benifei fears an abuse of these exceptions: “The exceptions must not be interpreted too broadly by individual member states because that would restrict the fundamental rights of citizens,” he said. Director General Viola stressed that the exceptions in the regulation are sufficiently limited from the point of view of the Commission.

    Benifei also strongly criticized the regulations on conformity assessment of AI applications. The Commission’s proposal requires third-party conformity assessment only for those high-risk AI systems that are related to products (i.e., are safety components of products or constitute a standalone product). For all other AI applications, including high-risk applications that may pose major risks to fundamental rights, manufacturers can thus perform the conformity assessment themselves.

    In the case of the GDPR and the Product Safety Directive, he said, a conscious decision was made not to have these self-certifications in order to prevent unsafe products from entering the internal market. “The text is therefore currently insufficient to provide sufficient assurance to citizens,” Benifei said. “Self-certification is not an easy matter,” countered Director General Viola. Producers would be liable for it, and users would be entitled to compensation.

    LIBE rapporteur insists on future security

    LIBE rapporteur Dragoş Tudorache (Renew) called for systemic risks to democracy, such as influencing elections, to also be included in the list of high-risk systems (Annex 3 of the regulation). Here, Viola pointed out that this aspect is already addressed in the legislative proposal on online political advertising (Europe.Table reported).

    Tudorache also suggested that the AI regulations need to be future-proof, and to that end, additional areas should sometimes be added to the list of high-risk systems. “Definitely,” Viola agreed with the Romanian and assured that the Commission could do this through delegated acts.

    Report to be ready by April 5

    According to the official schedule of IMCO and LIBE, a first hearing with experts and scientists is to be held on March 16. Benifei and Tudorache plan to draft their joint report by April 5. The IMCO and LIBE members plan to discuss this in a joint committee meeting on April 20. The committees plan to vote on the report on September 29. A vote in the plenary of the European Parliament could take place in the November session.

    LIBE and IMCO plan to vote on the opinions of the five co-advisory committees (JURI, ITRE, CULT, ENVI, TRAN) on March 13 (ENVI opinion), May 16 (JURI opinion), May 17 (CULT opinion), June 2 (ITRE opinion), and June 15 (TRAN opinion), according to a Europe.Table request from the European Parliament. koj

    • Artificial intelligence
    • Digital policy
    • Digitization
    • European policy

    Nvidia expects ARM takeover to fail

    The US graphics card specialist is preparing for a failure of its takeover bid for the British chip developer Arm, according to an agency report. Nvidia has told business partners that it does not expect the deal to be completed, the Bloomberg agency reported, citing people familiar with the matter.

    Meanwhile, Arm’s parent SoftBank is pushing ahead with the chipmaker’s IPO. An Nvidia spokesman said one continued to believe Arm could benefit from the acquisition. Nvidia had made a $40 billion (€35.5 billion) offer for the chipmaker in 2020, but it ran into competition concerns. The EU Commission is also still reviewing the deal. rtr

    • Digital policy
    • Digitization
    • Semiconductor
    • Technology

    Profile

    Elmar Brok: Mister Europe interferes where it pleases him

    Elmar Brok sat in the European Parliament for the CDU for almost four decades.

    He had actually already expected a collapse, perhaps after half a year. After all the years in Brussels – almost four decades in the end – that would have been a reasonable expectation. But the 75-year-old East Westphalian Elmar Brok, for a long time Germany’s best-known man in the European Parliament, the CDU veteran, “Mister Europe”, got along quite well after his not entirely voluntary departure from European politics in 2019 as a retired MEP. “I am not forced into any schedule and am once again master of myself,” he says.

    Actually, Brok would have liked to add on his ninth term in Brussels and Strasbourg in 2019. But the CDU district chairmen no longer wanted to field him. Brok, the longest-serving member of the European Parliament and EU reformer, who helped initiate the Treaties of Amsterdam, Nice, and Lisbon. Brok, one of the EU’s most distinguished foreign policy experts, who has twice chaired the Committee on Foreign Affairs, Human Rights, Security, and Defense Policy. Brok, the unique man with the walrus mustache and the breast pocket handkerchief, about whom many stories could be told in the long corridors of the EU Parliament. This Elmar Brok should now finally be put on the sidelines.

    Many tasks despite EP farewell

    When he then gave his farewell speech in the European Parliament, his voice failed him, and some tears flowed. But be that as it may, the timing of his departure was right. “I don’t miss Brussels,” he says today. “Now I just get involved where I want to.”

    Nevertheless, he has kept his Brussels apartment. He still travels there twice a month. He goes to Berlin just as often. But he is much more at home with his wife in Bielefeld-Heepen and out in the nearby Teutoburg Forest. He would like to travel more, but the COVID pandemic makes a lot of things impossible.

    Not that he gets bored: He is Senior Advisor at the Munich Security Conference and Senior Fellow at the think tank Aspen Institute in Berlin. He is vice president of the Christian Democratic International and a member of the board of the European People’s Party. Every now and then, he writes something. And, of course, he continues to advise in talks. His cell phone was his all-purpose weapon in Brussels, the numbers of powerful interlocutors around the world his capital. And those who want to use it call Brok. Even if that doesn’t happen as often as it used to.

    Europe lacks hard power

    But Europe and its future remain close to his heart. The importance of giving the EU more decision-making power and the ability to act, especially in foreign and defense policy, is evident once again in view of Russia’s aggressive actions in recent days. Europe needs more hard power to complement NATO. “Being the world champion in soft power is not enough when it comes to war and peace,” Brok stressed. The EU states would spend far more money on the military than Russia, but with a pitiful result. The reason is a lack of cooperation and synergy.

    “Born, married, European Parliament” is how Helmut Kohl is said to have once summed up Brok’s life. “A made-up quote that you can’t get out of the world,” says the person described himself. “But on the broad lines of my life, of course, it applies.” Now, he says, the focus is more on his family, his three children, and five grandchildren. “Whether that benefits everyone in the family,” he says mischievously, “I can’t always see.” Adrian Meyer

    • European policy
    • International

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