Table.Briefing: Europe

EU reactions to Liz Truss + Fall agenda for EU agricultural policy + Russian gas price cap

  • Liz Truss: mixed EU reactions to Johnson successor
  • The fall agenda for EU agricultural policy
  • Von der Leyen wants price cap for Russian gas
  • Energy crisis: Macron and Scholz vow solidarity
  • Germany: two nuclear power plants as emergency reserve for winter
  • Ukraine: €500 million and closer cooperation with the EU
  • Due diligence: first exchange of views in Committee
  • IMF proposes reform of EU debt rules
  • Breton sees end of economic era
  • Children’s data: record fine for Instagram in Ireland
  • Coalition crisis in Slovakia: liberal ministers resign
  • Profile: Camilla Bausch – cross-border climate policy cooperation
Dear reader,

So far, the EU has not had the best of experiences with Thatcher fan Liz Truss – after all, it was Truss who, in her role as Foreign Secretary, proposed a Northern Ireland Protocol bill that would undermine parts of the Brexit treaty. The fear: The conservative British politician could potentially provoke a trade war in the future. Reactions from the EU to the announcement that Truss will succeed Boris Johnson as Prime Minister have been correspondingly mixed. While the EU Commission and Commission President Ursula von der Leyen appeared decidedly optimistic, David McAllister, head of the Committee on Foreign Affairs, voiced criticism. Eric Bonse reports.

The planned EU regulation on the use of pesticides is causing heated debate, and farmers in Germany have already taken to the streets. The proposal calls for an overall reduction of 50 percent – as well as a general ban on pesticides in “particularly sensitive areas”. These apparently include all national nature and avian conservation areas, as Europe.Table has learned. This means Germany would be particularly hard hit by the plans. But this is not the only controversial project that is likely to dominate the EU’s agricultural policy agenda in the coming months. Timo Landenberger gives an outlook for this fall.

As Commission President Ursula von der Leyen announced yesterday on Twitter, the Commission is working on a proposal for a price cap on Russian gas. Tomorrow, officials from the Directorate-General for Energy want to discuss with experts from the member states how such a price cap could be implemented. Read more about the Commission’s plans in the News section.

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Feature

Liz Truss: mixed EU reactions to Boris Johnson’s successor

As Secretary of State, Liz Truss introduced a bill back in June that would undermine parts of the Brexit treaty. Specifically, it concerns the Northern Ireland Protocol, which regulates border traffic between the British island and EU member Ireland. Relations between Brussels and London have been strained since the introduction of this bill.

Truss’ position on the EU is also causing irritation. She claims to be interested in “a constructive relationship with the EU,” as Boris Johnson’s designated successor had put it. In her party’s internal bid for the office of prime minister, however, she presented herself as a Brexit hardliner who might make her mark at the expense of the Union.

Truss could thus ultimately withdraw from the Northern Ireland Protocol and thus trigger a trade war. There are also disputes over economic, energy, digital and refugee policy. Johnson had propagated a departure from the EU course in these policy areas, which Truss could continue and even step up.

Despite these risks, which are further exacerbated by the Ukraine war and the economic crisis, the EU Commission is optimistic. It hopes for a “new beginning,” chief spokesman Eric Mamer said in Brussels. “Anything that can help move forward in our relationship with the United Kingdom will be very welcome,” he said.

McAllister: We will protect our interests

“The EU and the UK are partners,” emphasized Commission President Ursula von der Leyen on Twitter not long afterward. Many challenges will be faced together, she said, from climate change to the war in Ukraine. “I look forward to a constructive relationship, in full respect of our agreements,” the German politician added.

European Parliament President Roberta Metsola also congratulated Truss. “Democracies must remain united, in standing against autocracy and aggression,” said the top politician from Malta. The EU Parliament will always remain a partner of the British people, she added.

David McAllister, head of the Committee on Foreign Affairs, expressed a more cautious view. “Ms. Truss is taking over the political leadership of the United Kingdom at a critical time,” the German politician said. “The financial and economic challenges are great. It is crucial that the United Kingdom now gets a stable government.”

As Secretary of State, Truss initiated the Northern Ireland Protocol Bill, McAllister said. Such unilateral actions are “simply legally and politically inconceivable“. He added that the EU will continue to work constructively to find pragmatic and flexible solutions within the existing legal framework. “At the same time, we will protect our own interests and preserve the integrity of the single market.”

EU Proposals to defuse the Northern Ireland Protocol

The Northern Ireland issue is also highlighted by the Green Party’s Terry Reintke. “As the new prime minister, Liz Truss must prove that she will respect the Northern Ireland Protocol and build a constructive atmosphere of mutual trust,” she said. Her predecessor in office, Johnson, had done massive damage to relations with the EU, she said. As Secretary of State, Truss “displayed the same populist attitude as her predecessor,” Reintke said. That has to change, she added.

So far, however, there is no sign of a change of heart. EU Commissioner Maroš Šefčovič, who is responsible for the post-Brexit talks, returned to Brussels empty-handed after his last visit to London before the summer break. In a recent speech to the British-Irish Association, he reiterated the proposals the Commission had made to defuse the dispute over the Northern Ireland Protocol.

Brussels could imagine creating a special lane in English ports for trucks carrying goods to Northern Ireland. There, the controversial customs checks could be noticeably relaxed. He also said that “sanitary and phytosanitary checks” could be reduced by 80 percent. These and other proposals have never been taken up by London, Šefčovič said. He expressed that he remained available for talks.

The tensions between the UK and France are also causing some unease in Brussels. This is something Truss has also contributed to by saying it’s not clear whether President Emmanuel Macron is a friend or an enemy. “The jury was still out,” Truss said. Against the backdrop of the Ukraine war, this was a diplomatic affront. Macron, however, responded calmly: “The British people, the United Kingdom, is a friendly, strong and allied nation, regardless of its leaders.”

  • EU foreign policy
  • European policy
  • Northern Ireland

Outlook: the EU agricultural policy’s agenda for the fall

It is an important step toward implementing the agricultural policy goals of the Green Deal: In June, the European Commission presented its environmental protection legislative package. The proposals to restore damaged ecosystems and cut the use of pesticides by half are essential elements of the EU’s biodiversity and Farm-to-Fork strategies.

It will probably be at least another year and a half before the rules come into force. But the controversial plans are already the subject of heated debate and are shaping the EU’s agricultural policy agenda – including at the upcoming informal meeting of the agricultural council in Prague in mid-September.

Pesticide regulation enrages farmers

Above all, the planned regulation on the use of pesticides is stirring up emotions; especially in Germany, farmers have already taken to the streets. This is because, alongside an overall reduction of 50 percent, the proposal also provides for a general ban on pesticides in “particularly sensitive areas”. These include urban parks, playgrounds and sports fields, and nature reserves.

The latter were initially not sufficiently defined in the Commission’s proposal and caused confusion. Now it seems clear: In addition to the EU’s Natura 2000 sites, all national nature reserves and avian sanctuaries are also to be covered by the ban. This stems from a letter from the responsible EU Commissioner Stella Kyriakides to MEPs Norbert Lins and Marlene Mortler (both CDU), which was obtained by Europe.Table.

Thus, Germany is by far the country most affected by the plans. “Because here, this affects 26 percent of agricultural land,” says Lins, Chairman of the Committee on Agriculture and Rural Development in the EU Parliament. This is the “completely wrong approach” and not acceptable under any circumstances. The implementation of the plans would lead to a de facto occupational ban for numerous farmers, he said. “This is a general attack on Europe’s rural areas.”

Rapporteur Sarah Wiener (Greens/EFA) also acknowledges that the outrage is “somewhat justified”. Since the ban even includes the use of eco-pesticides, it first needs to be carefully examined whether the proposals can be implemented at all. In general, however, it was right “to ban toxic chemicals from sensitive areas. Why else are they called nature reserves?”, she said.

In fact, Germany has numerous such areas on paper, yet the Federal Republic still lags behind when it comes to species protection. Not least because the use of chemical fertilizers and pesticides in the majority of nature reserves is still permitted. This is one of the reasons why several infringement proceedings are pending before the European Court of Justice for inadequate implementation of the existing EU nature conservation directives.

EU target: 25 percent organic farming

“Yet there is one form of agriculture that successfully does without chemical pesticides, and that is organic,” Wiener says. “And after all, we have a target in the EU of 25 percent organic farming by 2030.” Germany wants to increase the organic share of agriculture from the current level of around 10 percent to as much as 30 percent

On September 16 and 17, the council of EU agriculture ministers will discuss the planned regulation. The controversial issue of the reduction targets for the individual member states will also be discussed. Countries that use a particularly large amount of pesticides per hectare are to reduce their use by a particularly large amount. This may sound plausible at first, but the cultivation of fruit or vegetables, for example, as is predominant in Italy or Spain, also requires the use of more pesticides than in arable farming.

Not only in Germany, but also in most other EU countries, nature conservation targets have been missed in recent years. This is one of the reasons why the Commission wants to turn the existing pesticide directive into a regulation. Regulations have to be implemented immediately by the EU member states and allow less leeway.

Commission proposal: June 22, 2022

Stakeholders: The lead committee on pesticides is actually ENVI, but AGRI has applied for a so-called joint committee procedure, which would grant both committees equal rights – the outcome is still open. Rapporteur is Sarah Wiener (Greens/EFA), responsible for the Commission is Stella Kyriakides, Commissioner for Health and Food Safety, and the Czech Council Presidency.

Timetable: Main topic at the informal agriculture council in Prague on September 16 and 17, presentation of the report in the Committee still open.

Nature Restoration Law

The EU Commission’s nature conservation package includes a pesticide regulation and a law on nature restoration. The plans come at an inopportune time, the German Farmers’ Union and the CDU/CSU have been criticizing. After all, the plans would lead to a decline in agricultural and forestry production, while inflation, the global food and energy crises require the exact opposite.

The Nature Restoration Law is the first of its kind and provides for nature restoration measures for 20 percent of the EU’s total land and marine areas by 2030. Subsequently, according to the Commission, these are to be extended to “all ecosystems in need of restoration by 2050.” Agricultural and forestry activities are not explicitly excluded on these areas. Nevertheless, some of the targets, including the rewetting of peatlands or a higher proportion of natural forests, are likely to lead to a de facto ban in these areas.

This is too vague for environmentalists. They insist on concrete numbers and point to the importance of fallow land for biodiversity and for the natural storage of carbon dioxide. Agriculture and forestry, on the other hand, are up in arms. Forest owners, for example, emphasize the importance of an active timber industry as a sustainable source of raw materials for energy production and as a building material.

Commission proposal: June 22, 2022

Actors: The lead committee is ENVI, the rapporteur is César Luena (S&D). Commissioner for the Environment Virginijus Sinkevičius is in charge of the Commission.

Schedule: Not yet known. With the Nature Restoration Law, the EU also wants to send a signal before the UN Biodiversity Conference, which will take place from December 5 to 17 in Montréal, Canada, and – similar to the Paris Climate Agreement – aims for a global agreement to protect the environment.

Carbon sink certification

Without the systematic capture and storage of greenhouse gases from the atmosphere, climate targets cannot be met, and even beyond 2050 there will be unavoidable residual emissions that need to be offset. However, the storage capacity of natural sinks such as peatlands and forests has been declining for years. A trend that can only be halted to a limited extent by measures like the planned EU nature conservation package.

This is one of the reasons why the EU Commission intends to present a legal framework for the certification of carbon reduction measures on November 30, to create financial incentives. There is already a whole range of private-sector offers, because the market for voluntary carbon offsets is booming.

However, technical solutions such as Carbon Capture and Storage (CCS) are far from a widespread application, which is why the initiative is aimed in particular at so-called carbon farming. Using corresponding farming methods, Europe’s farmers are to significantly increase the storage capacity of the soil they cultivate and are to be compensated for this via allowance trading.

However, even though Brussels considers carbon farming to be a promising climate solution, the concept is highly controversial. For example, the question of measurability and, in particular, the long-term effectiveness of the carbon reduction effect has not been resolved beyond doubt. Subsequent changes to farming methods could quickly release the stored greenhouse gas and negate the climate effect.

Organic farmers who already cultivate carbon-rich soils would not be retroactively compensated for their services and would find themselves at a disadvantage. Accordingly, the Commission’s plans are the subject of heated debate even before their official presentation.

Timetable: Presentation of Commission proposal scheduled for November 30, 2022.

Actors: Frans Timmermans, Vice-President of the Commission responsible for the Green Deal, Agriculture Commissioner Janusz Wojciechowski, Czech Presidency.

LULUCF: trilogues started

Both the proposals for a renaturation law and the planned legal framework for the certification of carbon storage are intended to help strengthen natural greenhouse gas sinks and thus ultimately ensure that the LULUCF target is met. The regulation on land and forest use was hotly debated in the European Parliament.

In June, MEPs agreed to set a binding reduction target for the sector of at least 310 million metric tons of carbon dioxide equivalents by 2030. In the period from 2013 to 2019, this figure fell from 322 to 249 million metric tons and continues to decline, partly due to droughts, pests and forest fires.

The Parliament’s position thus follows the EU Commission’s proposal, but falls short of the demands made by the lead environmental committee. Trilogue negotiations began in Brussels on Monday. The Council’s goals are likely to be too ambitious. A tough struggle is expected.

Commission proposal: July 14, 2021

Actors: The lead committee is ENVI, the rapporteur is Ville Niinistö (Greens/EFA), and Vice President Frans Timmermans is responsible for the Commission.

Schedule: Trilogues began Monday, first technical meeting is Wednesday.

  • Agricultural Policy
  • Climate & Environment
  • Nature Conservation
  • Nutrition
  • Organic farming
  • Pesticides

News

Von der Leyen wants price cap for Russian gas

The Commission will present a proposal for a price cap on Russian gas imports. This was announced yesterday by Commission President Ursula von der Leyen on Twitter. The package will also include proposals for reducing electricity consumption peaks, relief for vulnerable households and companies using revenue from the energy sector, which was announced last week, and liquidity assistance for electricity traders affected by extreme price spikes on exchanges.

France’s President Emmanuel Macron supported the plans. A cap on gas could lower prices and is in line with the sanctions policy against Russia, he said yesterday. Macron also welcomed the commission’s proposal to skim profits from electricity producers and use them to support citizens. This “is the fairest and the most effective approach.”

Officials from the Directorate General for Energy plan to hold discussions with member state experts on Wednesday on how a price cap on Russian gas could be implemented. “This option should only be considered if the EU is ready to accept a full disruption of Russian gas supplies,” DG ENER wrote in a “Non-paper on emergency wholesale price cap instruments for natural gas,” obtained by Europe.Table. However, after the halt for Nord Stream 1, only small volumes are still flowing into the EU anyway.

The non-paper also discusses price limits for trade within the community of states. The reason for this is increasing price differences between member states as some have a better import and transport infrastructure than others. The Non-Paper therefore speaks of a green zone, in which gas supplies continue to be based on the Dutch lead market TTF, and a red zone, in which, according to the officials, prices are expected to double to over €400 per megawatt hour. The red zone would mainly include states in Central and Eastern Europe, but it could extend to Germany and Italy.

Criticism of gas buyer Germany

With the initiative, the experts want to prevent unilateral price limits imposed by individual member states. Large economies in the red zone should become part of the price cap, according to the officials, explicitly citing Germany as an example: “Otherwise, there is a risk that all gas would flow to Germany if prices were higher, making the price cap ineffective.” But to get Germany to participate, officials believe it would be better to continue to allow trading between industrial consumers – which would benefit Germany’s wealthy industrial sector.

Another “Non-paper on TTF and representative benchmarks for wholesale natural gas” also discusses whether the Dutch trading point TTF should continue to be the leading index for the European gas market. The background to this is the growing importance of LNG imports. On the global market, the reference prices for LNG are lower than the TTF. This is because the terminals in northwestern Europe and the pipeline capacities for onward transport of gas are already at full capacity.

The paper discusses, among other things, a price cap for the TTF, which would be marginally higher than the Asian benchmark index JKM, as a possible solution to further stimulate imports. So far, the EU has not reached a consensus on a joint gas procurement scheme because Germany and other financially strong member states wanted to secure preferential access to LNG.

Yesterday, the Kremlin also commented on gas deliveries to the EU: Nothing would stand in the way of Russian gas exports to Europe via the Nord Stream 1 pipeline, except for technical problems caused by Western sanctions. Presidential Office spokesman Dmitry Peskov said. Russia insists “that the collective West – in this case, the EU, Canada, the UK – is to blame for the fact that the situation has reached the point where it is now.” Gas supplies via Nord Stream 1 would not resume in full until the West lifts sanctions against Moscow, the Kremlin said. ber/tho/rtr/dpa

Energy crisis: Macron and Scholz vow solidarity

Germany and France have assured each other of mutual solidarity in the energy crisis. “Germany needs our gas and we need power from the rest of Europe, notably Germany,” French President Emmanuel Macron said after a video conference with German Chancellor Olaf Scholz. France plans to complete the necessary connections in the coming weeks to provide gas to Germany when it is needed, Macron said.

However, Macron spoke out against reviving the Midcat pipeline project between Spain and France. The two existing pipelines are underutilized even in the midst of the current gas crisis, Macron argued; moreover, most of the gas flows toward Spain. He said it was “factually wrong” that the Midcat pipeline was necessary to solve the supply problem.

Scholz and Spanish Prime Minister Pedro Sánchez had recently pushed for a resumption of the project to allow more gas to be transported from Spain to Central Europe. The country has six LNG terminals, and another could begin operations. tho/dpa

  • Energy

Germany: two nuclear power plants as emergency reserve for the winter

Of Germany’s three remaining nuclear power plants, two are to serve as emergency reserves until mid-April. German Economic Affairs Minister Robert Habeck said on Monday during the presentation of the results of a second grid stress test. The two nuclear power plants Isar 2 and Neckarwestheim would “still be available until mid-April 2023 in order to be able to make an additional contribution to the power grid in southern Germany over the winter of 2022/23 if necessary,” the Green politician was quoted as saying in a statement released by his ministry.

The second grid stress test came to the conclusion that “hourly crisis-like situations in the electricity supply system during winter 22/23, while very unlikely, cannot be fully ruled out,” the statement said.

Habeck also commented on why he does not want a transfer to the grid reserve for the Emsland nuclear power plant operated by RWE. This nuclear power plant could indeed make a certain contribution, he said. “But this contribution is too small compared to the two southern German power plants.”

Environment and nuclear safety minister Steffi Lemke (Greens) called Habeck’s proposal reasonable. After the start of the Ukraine war, she had still rejected longer operating times as irresponsible. Habeck’s proposal did not go far enough for the FDP, which demanded longer operating times over a period of years.

The head of the CDU/CSU parliamentary group criticized the German government’s decision as a fatal mistake and motivated by party politics. “These three nuclear power plants could provide safe, reliable and affordable energy, electricity for Germany in this crisis. And they should continue to do so for at least the next two winters,” said Faction Vice Chairman Jens Spahn (CDU). dpa

  • Energy
  • NPP
  • Nuclear power

Ukraine: €500 million and closer cooperation with the EU

The EU has pledged an additional €500 million to Ukraine for the care of refugees and agriculture. Commission President Ursula von der Leyen signed an agreement on the grants with Ukrainian Prime Minister Denys Shmyhal on Monday. According to the Brussels-based authority, it is also intended to strengthen the EU’s cooperation with the accession candidate. In spring, von der Leyen had announced corresponding aid at a donor conference in Warsaw.

Since the start of the war, Ukraine has already received loans and grants from the EU totaling €5.4 billion. In addition, €2.5 billion has been mobilized for military aid.

On Monday, the Commission also decided to include Ukraine in the “Digital Europe” program. The €7.5 billion funding pot is intended to promote digital innovation, for example in the areas of artificial intelligence or digitization of the economy and society. In addition, according to other agreements signed on Monday, Ukraine will also become part of the joint customs network. This is intended to facilitate cooperation in customs and tax matters. dpa

  • Digitization
  • European policy

Due Diligence Act: first exchange of views in the Committee

Yesterday, the Legal Affairs Committee of the European Parliament discussed the planned European Due Diligence Act for the first time. It met for an exchange of views with representatives of the other committees involved. “We have been talking about due diligence for so long now that we finally have to roll up our sleeves and start working,” said rapporteur Lara Wolters (S&D). The Commission had presented a proposal for a directive on corporate due diligence in February.

The members of the Committee agreed on one demand in particular: too many committees were involved in the debate on the law. In addition to the Legal Affairs Committee, twelve other committees are involved in providing opinions. With so many members, efficient work is difficult, criticized Axel Voss (EPP).

Wolters said she welcomed the compromise the Commission reached with its proposal. However, she said, it now needs to be reconsidered. For example, she calls for a risk-based approach to the law: Companies should focus on mitigating risks, not on the length of a business relationship or the sector in which they operate. “The due diligence process needs to be a proactive one, with companies taking a genuine and thorough interest in their value chains,” Wolters said.

‘Preventing damage from happening in the first place’

The MEP criticized that companies must look at the entire supply chain and not just their direct suppliers, as the greatest damage usually occurs earlier. In addition, interest groups such as trade unions or NGOs are only involved by the Commission in a complaints procedure. At that point, however, it was already too late: “The due diligence process should rather prevent damage from occurring in the first place.”

Wolters is critical of the proposal that contracts could be a tool for companies to conduct their due diligence. “Of course they can be a tool, but I’m concerned that companies are absolving themselves of responsibility over this,” she said. “However, there is the principle of responsible contracting, where both buyer and supplier take joint responsibility.”

Axel Voss (EPP) stressed that “excessive bureaucracy” should not be created, but that a balance should be struck between what is necessary and what is feasible for small and medium-sized enterprises. “This is a text with which we are pioneering worldwide,” said Adrián Vázquez Lázara (Renew). “That’s why we need to work out a clear, concrete and unambiguous structure, precisely because the law refers to many other laws such as the sustainability package.” Legal uncertainty should not be created, he said.

Germanwatch: industry standards insufficient

Heidi Hautala (Greens/EFA) countered that the Commission largely excludes smaller and medium-sized companies from the scope. However, these are often the suppliers to larger companies and therefore have to comply with the requirements.

To date, companies have in part used private standards to meet their responsibility for supply chains. According to a study published yesterday by the environment and development organization Germanwatch, which looks at the raw materials sector, these standards are “not suitable for effectively implementing the requirements of relevant human rights and environmental standards”.

Germanwatch fears that they could nonetheless be included in EU law as proof of fulfilled due diligence obligations. This would undermine the credibility of the effort, according to the NGO. The results “show that none of the industry standards certification systems used can ensure that environmental and human rights standards are actually met,” said Johanna Sydow of Germanwatch.

The EU Due Diligence Act was also the subject of today’s Council Group meeting. Last week, German Labor Minister Hubertus Heil announced that the German government would support the Commission’s proposal. leo

  • dEvEloPmENT LAw
  • European Parliament
  • European policy
  • Supply chains

IMF proposes reform of EU debt rules

The International Monetary Fund is urging the European Union to reform its debt rules soon. This cannot wait, a post on the IMF’s blog published Monday said, just days before European finance ministers meet in Prague. Because debt rules are still suspended until and including 2023 due to the pandemic, there is a good opportunity for change now, it said. “The opportunity should not be wasted.”

Fiscal policy plays a crucial role in stabilizing households and companies in times of crisis, the post continued. “However, that requires healthy public finances.” At the same time, Europe would require a degree of flexibility, but also sustainable debt. The so-called Stability Pact actually limits new debt of EU states to 3 percent and total debt to 60 percent of their respective economic output. However, the rules have been repeatedly violated in the past without any noticeable consequences.

More flexibility for certain states

In its paper, the IMF now proposes maintaining the numerical targets. However, “the speed and ambition of fiscal adjustments would be linked to the degree of fiscal risks”. To this end, an independent body – the European Fiscal Council – should contribute analyses of debt sustainability. Countries with a higher risk would have to move more quickly toward balanced budgets or even surpluses within three to five years. Other states could be given more flexibility.

The IMF also calls for medium-term fiscal plans, including spending ceilings. The international financial organization also advocates setting up an EU fund to respond to sudden economic downturns. It could also help with adjustments to climate change and the transformation of the economy. A volume for this was not mentioned. rtr

  • EU debt rules
  • Stability Pact

Breton sees end of an economic era

EU Commissioner for the Internal Market, Thierry Breton, expects profound changes to the global economic system in light of numerous current crises. He believes that the world is currently witnessing the end of an economic era, he said in Eindhoven on Monday, according to a speech script released in advance.

“I also believe that we are seeing the end of an economic era dominated by a long-standing belief in just-on-time logistics, geographical specialization and elongated supply chains. We have ample experience now of global supply chains being disrupted by the Chinese hard lockdown policy, the war in Ukraine and our international partners’ export restrictions.”

World politics had become highly fragmented in a very short time, China was becoming increasingly dominant, and the pressure on democratic values was growing worldwide. Simultaneously, the world is in a permanent state of crisis. He cited the Covid pandemic, climate change and Russia’s war of aggression against Ukraine as examples.

New tools are needed to be in a better position vis-à-vis other players on the global stage. During the Covid pandemic, for example, it was only possible to negotiate from a strong position with trading partners such as the United States after the introduction of an export control mechanism. Prior to that, the US, for its part, had blocked supply chains for vaccine production. dpa

  • Climate & Environment
  • European policy

Ireland fines Instagram a record $400 million over children’s data

Ireland’s data privacy regulator has agreed to levy a record fine of €405 million against social network Instagram following an investigation into its handling of children’s data, a spokesperson for the watchdog said. The investigation, which started in 2020, focused on child users between the ages of 13 and 17 who were allowed to operate business accounts, which facilitated the publication of the user’s phone number and/or email address.

Instagram is part of the Meta group, which includes the Internet platform Facebook and the Messenger service WhatsApp. Instagram plans to appeal against the fine. It updated its settings over a year ago and has since released new features to keep teens safe and their information private, the Meta spokesperson said. Ireland has jurisdiction in the matter because Meta, as well as major US technology companies such as Apple and Google, have their European Union headquarters there.

Several other proceedings are underway against Meta subsidiaries in Ireland. Last year, WhatsApp was fined a record €225 million for failing to comply with EU data protection rules. Details of its Instagram decision will be published by the Irish authority in the coming week. rtr

  • Data protection
  • Digitization
  • Ireland

Coalition crisis in Slovakia: all liberal ministers resigned

After months of disputes in the Slovak government coalition, all ministers of the liberal Freedom and Solidarity Party (SaS) who had remained in office resigned on Monday. Party leader Richard Sulík had already resigned as Economy Minister and Deputy Head of government at the end of August. He was now followed by Foreign Minister Ivan Korčok, Education Minister Branislav Gröhling and Justice Minister Mária Kolíková. Without SaS, the other three parties no longer hold the majority in parliament. As consequence, the conservative Prime Minister Eduard Heger announced the transition to a minority cabinet.

In July, the Liberals had already demanded the resignation of the conservative-populist Finance Minister Igor Matovič. Matovič is also the leader of the largest governing party, Ordinary People and Independent Personalities (Olano), to which the head of government, Heger, also belongs.

Because of its internal conflicts, the government has still not been able to present its long-announced package of measures against rising energy prices. dpa

  • Energy
  • Slovakia

Heads

Camilla Bausch – cross-border climate policy cooperation

Photo: Aaron Best, Ecologic Institute

“I probably founded my first environmental NGO at the age of seven,” says Camilla Bausch with a laugh. Her interest in the environment runs through her biography: She has worked on energy and climate policy for 19 years at Ecologic Institute, which she now also heads. Back in the 1990s, when energy law was still a “real niche topic,” she found it for herself and earned her Ph.D. in law on the EU’s electricity market.

She then made a detour into the private sector at the Boston Consulting Group, with the goal of learning more about dynamics and thinking in the business sector: “In order to achieve fundamental improvements in the environmental field, the whole of society must participate, including business and industry.” Bausch therefore advocates a transdisciplinary approach to climate policy, which she also promotes as spokesperson for the Ecological Research Network (Ecornet), among other things.

The decision to join Ecologic Institute was an “act of conviction”: “From the very beginning, we at Ecologic Institute were aware that the major environmental challenges had to be solved through cross-border cooperation.” International cooperation appealed to Camilla Bausch from an early age, and she spent time abroad in the USA, Belgium and Russia.

Painful failure on US climate bill

She also follows the current developments surrounding the US legislative package, the Inflation Reduction Act, with great interest. Not least because through her work for Democratic Congressman Edward J. Markey in the wake of the Waxman-Markey Clean Energy Bill in 2008/09, she personally experienced how difficult it is to pass climate legislation in the US – and how painful when it fails.

She now sees a breakthrough in the Inflation Reduction Act, which includes a $370 billion package on climate protection: “According to calculations, the US could reduce its greenhouse gas emissions by 42 percent by 2030. That is already a huge step forward.” And an important signal to the international community, despite financial incentives for fossil infrastructures: With the return to the Paris Agreement and the implementation of the Inflation Reduction Act, the US is once again proving to be a partner with whom the EU can discuss climate policy.

At the European level, Bausch sees the Green Deal as an ambitious program that needs to be stabilized and monitored over time. To ensure that this succeeds, Bausch is working with the Think Sustainable Europe network to improve knowledge transfer, exchange and analysis of European climate policy.

True to its guiding principle “Europe grows together through cooperation,” the network includes leading environmental policy think tanks from twelve European countries: “It is important to also understand the dynamics in the individual countries and what opportunities, risks, concerns, and hopes exist there.” There it is again, the plea for cross-border approaches to solutions that runs through Bausch’s work. Marlene Resch

  • Climate & Environment
  • Climate Policy
  • Energy
  • European policy
  • Inflation Reduction Act

Europe.Table Editorial Office

EUROPE.TABLE EDITORS

Licenses:
    • Liz Truss: mixed EU reactions to Johnson successor
    • The fall agenda for EU agricultural policy
    • Von der Leyen wants price cap for Russian gas
    • Energy crisis: Macron and Scholz vow solidarity
    • Germany: two nuclear power plants as emergency reserve for winter
    • Ukraine: €500 million and closer cooperation with the EU
    • Due diligence: first exchange of views in Committee
    • IMF proposes reform of EU debt rules
    • Breton sees end of economic era
    • Children’s data: record fine for Instagram in Ireland
    • Coalition crisis in Slovakia: liberal ministers resign
    • Profile: Camilla Bausch – cross-border climate policy cooperation
    Dear reader,

    So far, the EU has not had the best of experiences with Thatcher fan Liz Truss – after all, it was Truss who, in her role as Foreign Secretary, proposed a Northern Ireland Protocol bill that would undermine parts of the Brexit treaty. The fear: The conservative British politician could potentially provoke a trade war in the future. Reactions from the EU to the announcement that Truss will succeed Boris Johnson as Prime Minister have been correspondingly mixed. While the EU Commission and Commission President Ursula von der Leyen appeared decidedly optimistic, David McAllister, head of the Committee on Foreign Affairs, voiced criticism. Eric Bonse reports.

    The planned EU regulation on the use of pesticides is causing heated debate, and farmers in Germany have already taken to the streets. The proposal calls for an overall reduction of 50 percent – as well as a general ban on pesticides in “particularly sensitive areas”. These apparently include all national nature and avian conservation areas, as Europe.Table has learned. This means Germany would be particularly hard hit by the plans. But this is not the only controversial project that is likely to dominate the EU’s agricultural policy agenda in the coming months. Timo Landenberger gives an outlook for this fall.

    As Commission President Ursula von der Leyen announced yesterday on Twitter, the Commission is working on a proposal for a price cap on Russian gas. Tomorrow, officials from the Directorate-General for Energy want to discuss with experts from the member states how such a price cap could be implemented. Read more about the Commission’s plans in the News section.

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    Sarah Schaefer
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    Feature

    Liz Truss: mixed EU reactions to Boris Johnson’s successor

    As Secretary of State, Liz Truss introduced a bill back in June that would undermine parts of the Brexit treaty. Specifically, it concerns the Northern Ireland Protocol, which regulates border traffic between the British island and EU member Ireland. Relations between Brussels and London have been strained since the introduction of this bill.

    Truss’ position on the EU is also causing irritation. She claims to be interested in “a constructive relationship with the EU,” as Boris Johnson’s designated successor had put it. In her party’s internal bid for the office of prime minister, however, she presented herself as a Brexit hardliner who might make her mark at the expense of the Union.

    Truss could thus ultimately withdraw from the Northern Ireland Protocol and thus trigger a trade war. There are also disputes over economic, energy, digital and refugee policy. Johnson had propagated a departure from the EU course in these policy areas, which Truss could continue and even step up.

    Despite these risks, which are further exacerbated by the Ukraine war and the economic crisis, the EU Commission is optimistic. It hopes for a “new beginning,” chief spokesman Eric Mamer said in Brussels. “Anything that can help move forward in our relationship with the United Kingdom will be very welcome,” he said.

    McAllister: We will protect our interests

    “The EU and the UK are partners,” emphasized Commission President Ursula von der Leyen on Twitter not long afterward. Many challenges will be faced together, she said, from climate change to the war in Ukraine. “I look forward to a constructive relationship, in full respect of our agreements,” the German politician added.

    European Parliament President Roberta Metsola also congratulated Truss. “Democracies must remain united, in standing against autocracy and aggression,” said the top politician from Malta. The EU Parliament will always remain a partner of the British people, she added.

    David McAllister, head of the Committee on Foreign Affairs, expressed a more cautious view. “Ms. Truss is taking over the political leadership of the United Kingdom at a critical time,” the German politician said. “The financial and economic challenges are great. It is crucial that the United Kingdom now gets a stable government.”

    As Secretary of State, Truss initiated the Northern Ireland Protocol Bill, McAllister said. Such unilateral actions are “simply legally and politically inconceivable“. He added that the EU will continue to work constructively to find pragmatic and flexible solutions within the existing legal framework. “At the same time, we will protect our own interests and preserve the integrity of the single market.”

    EU Proposals to defuse the Northern Ireland Protocol

    The Northern Ireland issue is also highlighted by the Green Party’s Terry Reintke. “As the new prime minister, Liz Truss must prove that she will respect the Northern Ireland Protocol and build a constructive atmosphere of mutual trust,” she said. Her predecessor in office, Johnson, had done massive damage to relations with the EU, she said. As Secretary of State, Truss “displayed the same populist attitude as her predecessor,” Reintke said. That has to change, she added.

    So far, however, there is no sign of a change of heart. EU Commissioner Maroš Šefčovič, who is responsible for the post-Brexit talks, returned to Brussels empty-handed after his last visit to London before the summer break. In a recent speech to the British-Irish Association, he reiterated the proposals the Commission had made to defuse the dispute over the Northern Ireland Protocol.

    Brussels could imagine creating a special lane in English ports for trucks carrying goods to Northern Ireland. There, the controversial customs checks could be noticeably relaxed. He also said that “sanitary and phytosanitary checks” could be reduced by 80 percent. These and other proposals have never been taken up by London, Šefčovič said. He expressed that he remained available for talks.

    The tensions between the UK and France are also causing some unease in Brussels. This is something Truss has also contributed to by saying it’s not clear whether President Emmanuel Macron is a friend or an enemy. “The jury was still out,” Truss said. Against the backdrop of the Ukraine war, this was a diplomatic affront. Macron, however, responded calmly: “The British people, the United Kingdom, is a friendly, strong and allied nation, regardless of its leaders.”

    • EU foreign policy
    • European policy
    • Northern Ireland

    Outlook: the EU agricultural policy’s agenda for the fall

    It is an important step toward implementing the agricultural policy goals of the Green Deal: In June, the European Commission presented its environmental protection legislative package. The proposals to restore damaged ecosystems and cut the use of pesticides by half are essential elements of the EU’s biodiversity and Farm-to-Fork strategies.

    It will probably be at least another year and a half before the rules come into force. But the controversial plans are already the subject of heated debate and are shaping the EU’s agricultural policy agenda – including at the upcoming informal meeting of the agricultural council in Prague in mid-September.

    Pesticide regulation enrages farmers

    Above all, the planned regulation on the use of pesticides is stirring up emotions; especially in Germany, farmers have already taken to the streets. This is because, alongside an overall reduction of 50 percent, the proposal also provides for a general ban on pesticides in “particularly sensitive areas”. These include urban parks, playgrounds and sports fields, and nature reserves.

    The latter were initially not sufficiently defined in the Commission’s proposal and caused confusion. Now it seems clear: In addition to the EU’s Natura 2000 sites, all national nature reserves and avian sanctuaries are also to be covered by the ban. This stems from a letter from the responsible EU Commissioner Stella Kyriakides to MEPs Norbert Lins and Marlene Mortler (both CDU), which was obtained by Europe.Table.

    Thus, Germany is by far the country most affected by the plans. “Because here, this affects 26 percent of agricultural land,” says Lins, Chairman of the Committee on Agriculture and Rural Development in the EU Parliament. This is the “completely wrong approach” and not acceptable under any circumstances. The implementation of the plans would lead to a de facto occupational ban for numerous farmers, he said. “This is a general attack on Europe’s rural areas.”

    Rapporteur Sarah Wiener (Greens/EFA) also acknowledges that the outrage is “somewhat justified”. Since the ban even includes the use of eco-pesticides, it first needs to be carefully examined whether the proposals can be implemented at all. In general, however, it was right “to ban toxic chemicals from sensitive areas. Why else are they called nature reserves?”, she said.

    In fact, Germany has numerous such areas on paper, yet the Federal Republic still lags behind when it comes to species protection. Not least because the use of chemical fertilizers and pesticides in the majority of nature reserves is still permitted. This is one of the reasons why several infringement proceedings are pending before the European Court of Justice for inadequate implementation of the existing EU nature conservation directives.

    EU target: 25 percent organic farming

    “Yet there is one form of agriculture that successfully does without chemical pesticides, and that is organic,” Wiener says. “And after all, we have a target in the EU of 25 percent organic farming by 2030.” Germany wants to increase the organic share of agriculture from the current level of around 10 percent to as much as 30 percent

    On September 16 and 17, the council of EU agriculture ministers will discuss the planned regulation. The controversial issue of the reduction targets for the individual member states will also be discussed. Countries that use a particularly large amount of pesticides per hectare are to reduce their use by a particularly large amount. This may sound plausible at first, but the cultivation of fruit or vegetables, for example, as is predominant in Italy or Spain, also requires the use of more pesticides than in arable farming.

    Not only in Germany, but also in most other EU countries, nature conservation targets have been missed in recent years. This is one of the reasons why the Commission wants to turn the existing pesticide directive into a regulation. Regulations have to be implemented immediately by the EU member states and allow less leeway.

    Commission proposal: June 22, 2022

    Stakeholders: The lead committee on pesticides is actually ENVI, but AGRI has applied for a so-called joint committee procedure, which would grant both committees equal rights – the outcome is still open. Rapporteur is Sarah Wiener (Greens/EFA), responsible for the Commission is Stella Kyriakides, Commissioner for Health and Food Safety, and the Czech Council Presidency.

    Timetable: Main topic at the informal agriculture council in Prague on September 16 and 17, presentation of the report in the Committee still open.

    Nature Restoration Law

    The EU Commission’s nature conservation package includes a pesticide regulation and a law on nature restoration. The plans come at an inopportune time, the German Farmers’ Union and the CDU/CSU have been criticizing. After all, the plans would lead to a decline in agricultural and forestry production, while inflation, the global food and energy crises require the exact opposite.

    The Nature Restoration Law is the first of its kind and provides for nature restoration measures for 20 percent of the EU’s total land and marine areas by 2030. Subsequently, according to the Commission, these are to be extended to “all ecosystems in need of restoration by 2050.” Agricultural and forestry activities are not explicitly excluded on these areas. Nevertheless, some of the targets, including the rewetting of peatlands or a higher proportion of natural forests, are likely to lead to a de facto ban in these areas.

    This is too vague for environmentalists. They insist on concrete numbers and point to the importance of fallow land for biodiversity and for the natural storage of carbon dioxide. Agriculture and forestry, on the other hand, are up in arms. Forest owners, for example, emphasize the importance of an active timber industry as a sustainable source of raw materials for energy production and as a building material.

    Commission proposal: June 22, 2022

    Actors: The lead committee is ENVI, the rapporteur is César Luena (S&D). Commissioner for the Environment Virginijus Sinkevičius is in charge of the Commission.

    Schedule: Not yet known. With the Nature Restoration Law, the EU also wants to send a signal before the UN Biodiversity Conference, which will take place from December 5 to 17 in Montréal, Canada, and – similar to the Paris Climate Agreement – aims for a global agreement to protect the environment.

    Carbon sink certification

    Without the systematic capture and storage of greenhouse gases from the atmosphere, climate targets cannot be met, and even beyond 2050 there will be unavoidable residual emissions that need to be offset. However, the storage capacity of natural sinks such as peatlands and forests has been declining for years. A trend that can only be halted to a limited extent by measures like the planned EU nature conservation package.

    This is one of the reasons why the EU Commission intends to present a legal framework for the certification of carbon reduction measures on November 30, to create financial incentives. There is already a whole range of private-sector offers, because the market for voluntary carbon offsets is booming.

    However, technical solutions such as Carbon Capture and Storage (CCS) are far from a widespread application, which is why the initiative is aimed in particular at so-called carbon farming. Using corresponding farming methods, Europe’s farmers are to significantly increase the storage capacity of the soil they cultivate and are to be compensated for this via allowance trading.

    However, even though Brussels considers carbon farming to be a promising climate solution, the concept is highly controversial. For example, the question of measurability and, in particular, the long-term effectiveness of the carbon reduction effect has not been resolved beyond doubt. Subsequent changes to farming methods could quickly release the stored greenhouse gas and negate the climate effect.

    Organic farmers who already cultivate carbon-rich soils would not be retroactively compensated for their services and would find themselves at a disadvantage. Accordingly, the Commission’s plans are the subject of heated debate even before their official presentation.

    Timetable: Presentation of Commission proposal scheduled for November 30, 2022.

    Actors: Frans Timmermans, Vice-President of the Commission responsible for the Green Deal, Agriculture Commissioner Janusz Wojciechowski, Czech Presidency.

    LULUCF: trilogues started

    Both the proposals for a renaturation law and the planned legal framework for the certification of carbon storage are intended to help strengthen natural greenhouse gas sinks and thus ultimately ensure that the LULUCF target is met. The regulation on land and forest use was hotly debated in the European Parliament.

    In June, MEPs agreed to set a binding reduction target for the sector of at least 310 million metric tons of carbon dioxide equivalents by 2030. In the period from 2013 to 2019, this figure fell from 322 to 249 million metric tons and continues to decline, partly due to droughts, pests and forest fires.

    The Parliament’s position thus follows the EU Commission’s proposal, but falls short of the demands made by the lead environmental committee. Trilogue negotiations began in Brussels on Monday. The Council’s goals are likely to be too ambitious. A tough struggle is expected.

    Commission proposal: July 14, 2021

    Actors: The lead committee is ENVI, the rapporteur is Ville Niinistö (Greens/EFA), and Vice President Frans Timmermans is responsible for the Commission.

    Schedule: Trilogues began Monday, first technical meeting is Wednesday.

    • Agricultural Policy
    • Climate & Environment
    • Nature Conservation
    • Nutrition
    • Organic farming
    • Pesticides

    News

    Von der Leyen wants price cap for Russian gas

    The Commission will present a proposal for a price cap on Russian gas imports. This was announced yesterday by Commission President Ursula von der Leyen on Twitter. The package will also include proposals for reducing electricity consumption peaks, relief for vulnerable households and companies using revenue from the energy sector, which was announced last week, and liquidity assistance for electricity traders affected by extreme price spikes on exchanges.

    France’s President Emmanuel Macron supported the plans. A cap on gas could lower prices and is in line with the sanctions policy against Russia, he said yesterday. Macron also welcomed the commission’s proposal to skim profits from electricity producers and use them to support citizens. This “is the fairest and the most effective approach.”

    Officials from the Directorate General for Energy plan to hold discussions with member state experts on Wednesday on how a price cap on Russian gas could be implemented. “This option should only be considered if the EU is ready to accept a full disruption of Russian gas supplies,” DG ENER wrote in a “Non-paper on emergency wholesale price cap instruments for natural gas,” obtained by Europe.Table. However, after the halt for Nord Stream 1, only small volumes are still flowing into the EU anyway.

    The non-paper also discusses price limits for trade within the community of states. The reason for this is increasing price differences between member states as some have a better import and transport infrastructure than others. The Non-Paper therefore speaks of a green zone, in which gas supplies continue to be based on the Dutch lead market TTF, and a red zone, in which, according to the officials, prices are expected to double to over €400 per megawatt hour. The red zone would mainly include states in Central and Eastern Europe, but it could extend to Germany and Italy.

    Criticism of gas buyer Germany

    With the initiative, the experts want to prevent unilateral price limits imposed by individual member states. Large economies in the red zone should become part of the price cap, according to the officials, explicitly citing Germany as an example: “Otherwise, there is a risk that all gas would flow to Germany if prices were higher, making the price cap ineffective.” But to get Germany to participate, officials believe it would be better to continue to allow trading between industrial consumers – which would benefit Germany’s wealthy industrial sector.

    Another “Non-paper on TTF and representative benchmarks for wholesale natural gas” also discusses whether the Dutch trading point TTF should continue to be the leading index for the European gas market. The background to this is the growing importance of LNG imports. On the global market, the reference prices for LNG are lower than the TTF. This is because the terminals in northwestern Europe and the pipeline capacities for onward transport of gas are already at full capacity.

    The paper discusses, among other things, a price cap for the TTF, which would be marginally higher than the Asian benchmark index JKM, as a possible solution to further stimulate imports. So far, the EU has not reached a consensus on a joint gas procurement scheme because Germany and other financially strong member states wanted to secure preferential access to LNG.

    Yesterday, the Kremlin also commented on gas deliveries to the EU: Nothing would stand in the way of Russian gas exports to Europe via the Nord Stream 1 pipeline, except for technical problems caused by Western sanctions. Presidential Office spokesman Dmitry Peskov said. Russia insists “that the collective West – in this case, the EU, Canada, the UK – is to blame for the fact that the situation has reached the point where it is now.” Gas supplies via Nord Stream 1 would not resume in full until the West lifts sanctions against Moscow, the Kremlin said. ber/tho/rtr/dpa

    Energy crisis: Macron and Scholz vow solidarity

    Germany and France have assured each other of mutual solidarity in the energy crisis. “Germany needs our gas and we need power from the rest of Europe, notably Germany,” French President Emmanuel Macron said after a video conference with German Chancellor Olaf Scholz. France plans to complete the necessary connections in the coming weeks to provide gas to Germany when it is needed, Macron said.

    However, Macron spoke out against reviving the Midcat pipeline project between Spain and France. The two existing pipelines are underutilized even in the midst of the current gas crisis, Macron argued; moreover, most of the gas flows toward Spain. He said it was “factually wrong” that the Midcat pipeline was necessary to solve the supply problem.

    Scholz and Spanish Prime Minister Pedro Sánchez had recently pushed for a resumption of the project to allow more gas to be transported from Spain to Central Europe. The country has six LNG terminals, and another could begin operations. tho/dpa

    • Energy

    Germany: two nuclear power plants as emergency reserve for the winter

    Of Germany’s three remaining nuclear power plants, two are to serve as emergency reserves until mid-April. German Economic Affairs Minister Robert Habeck said on Monday during the presentation of the results of a second grid stress test. The two nuclear power plants Isar 2 and Neckarwestheim would “still be available until mid-April 2023 in order to be able to make an additional contribution to the power grid in southern Germany over the winter of 2022/23 if necessary,” the Green politician was quoted as saying in a statement released by his ministry.

    The second grid stress test came to the conclusion that “hourly crisis-like situations in the electricity supply system during winter 22/23, while very unlikely, cannot be fully ruled out,” the statement said.

    Habeck also commented on why he does not want a transfer to the grid reserve for the Emsland nuclear power plant operated by RWE. This nuclear power plant could indeed make a certain contribution, he said. “But this contribution is too small compared to the two southern German power plants.”

    Environment and nuclear safety minister Steffi Lemke (Greens) called Habeck’s proposal reasonable. After the start of the Ukraine war, she had still rejected longer operating times as irresponsible. Habeck’s proposal did not go far enough for the FDP, which demanded longer operating times over a period of years.

    The head of the CDU/CSU parliamentary group criticized the German government’s decision as a fatal mistake and motivated by party politics. “These three nuclear power plants could provide safe, reliable and affordable energy, electricity for Germany in this crisis. And they should continue to do so for at least the next two winters,” said Faction Vice Chairman Jens Spahn (CDU). dpa

    • Energy
    • NPP
    • Nuclear power

    Ukraine: €500 million and closer cooperation with the EU

    The EU has pledged an additional €500 million to Ukraine for the care of refugees and agriculture. Commission President Ursula von der Leyen signed an agreement on the grants with Ukrainian Prime Minister Denys Shmyhal on Monday. According to the Brussels-based authority, it is also intended to strengthen the EU’s cooperation with the accession candidate. In spring, von der Leyen had announced corresponding aid at a donor conference in Warsaw.

    Since the start of the war, Ukraine has already received loans and grants from the EU totaling €5.4 billion. In addition, €2.5 billion has been mobilized for military aid.

    On Monday, the Commission also decided to include Ukraine in the “Digital Europe” program. The €7.5 billion funding pot is intended to promote digital innovation, for example in the areas of artificial intelligence or digitization of the economy and society. In addition, according to other agreements signed on Monday, Ukraine will also become part of the joint customs network. This is intended to facilitate cooperation in customs and tax matters. dpa

    • Digitization
    • European policy

    Due Diligence Act: first exchange of views in the Committee

    Yesterday, the Legal Affairs Committee of the European Parliament discussed the planned European Due Diligence Act for the first time. It met for an exchange of views with representatives of the other committees involved. “We have been talking about due diligence for so long now that we finally have to roll up our sleeves and start working,” said rapporteur Lara Wolters (S&D). The Commission had presented a proposal for a directive on corporate due diligence in February.

    The members of the Committee agreed on one demand in particular: too many committees were involved in the debate on the law. In addition to the Legal Affairs Committee, twelve other committees are involved in providing opinions. With so many members, efficient work is difficult, criticized Axel Voss (EPP).

    Wolters said she welcomed the compromise the Commission reached with its proposal. However, she said, it now needs to be reconsidered. For example, she calls for a risk-based approach to the law: Companies should focus on mitigating risks, not on the length of a business relationship or the sector in which they operate. “The due diligence process needs to be a proactive one, with companies taking a genuine and thorough interest in their value chains,” Wolters said.

    ‘Preventing damage from happening in the first place’

    The MEP criticized that companies must look at the entire supply chain and not just their direct suppliers, as the greatest damage usually occurs earlier. In addition, interest groups such as trade unions or NGOs are only involved by the Commission in a complaints procedure. At that point, however, it was already too late: “The due diligence process should rather prevent damage from occurring in the first place.”

    Wolters is critical of the proposal that contracts could be a tool for companies to conduct their due diligence. “Of course they can be a tool, but I’m concerned that companies are absolving themselves of responsibility over this,” she said. “However, there is the principle of responsible contracting, where both buyer and supplier take joint responsibility.”

    Axel Voss (EPP) stressed that “excessive bureaucracy” should not be created, but that a balance should be struck between what is necessary and what is feasible for small and medium-sized enterprises. “This is a text with which we are pioneering worldwide,” said Adrián Vázquez Lázara (Renew). “That’s why we need to work out a clear, concrete and unambiguous structure, precisely because the law refers to many other laws such as the sustainability package.” Legal uncertainty should not be created, he said.

    Germanwatch: industry standards insufficient

    Heidi Hautala (Greens/EFA) countered that the Commission largely excludes smaller and medium-sized companies from the scope. However, these are often the suppliers to larger companies and therefore have to comply with the requirements.

    To date, companies have in part used private standards to meet their responsibility for supply chains. According to a study published yesterday by the environment and development organization Germanwatch, which looks at the raw materials sector, these standards are “not suitable for effectively implementing the requirements of relevant human rights and environmental standards”.

    Germanwatch fears that they could nonetheless be included in EU law as proof of fulfilled due diligence obligations. This would undermine the credibility of the effort, according to the NGO. The results “show that none of the industry standards certification systems used can ensure that environmental and human rights standards are actually met,” said Johanna Sydow of Germanwatch.

    The EU Due Diligence Act was also the subject of today’s Council Group meeting. Last week, German Labor Minister Hubertus Heil announced that the German government would support the Commission’s proposal. leo

    • dEvEloPmENT LAw
    • European Parliament
    • European policy
    • Supply chains

    IMF proposes reform of EU debt rules

    The International Monetary Fund is urging the European Union to reform its debt rules soon. This cannot wait, a post on the IMF’s blog published Monday said, just days before European finance ministers meet in Prague. Because debt rules are still suspended until and including 2023 due to the pandemic, there is a good opportunity for change now, it said. “The opportunity should not be wasted.”

    Fiscal policy plays a crucial role in stabilizing households and companies in times of crisis, the post continued. “However, that requires healthy public finances.” At the same time, Europe would require a degree of flexibility, but also sustainable debt. The so-called Stability Pact actually limits new debt of EU states to 3 percent and total debt to 60 percent of their respective economic output. However, the rules have been repeatedly violated in the past without any noticeable consequences.

    More flexibility for certain states

    In its paper, the IMF now proposes maintaining the numerical targets. However, “the speed and ambition of fiscal adjustments would be linked to the degree of fiscal risks”. To this end, an independent body – the European Fiscal Council – should contribute analyses of debt sustainability. Countries with a higher risk would have to move more quickly toward balanced budgets or even surpluses within three to five years. Other states could be given more flexibility.

    The IMF also calls for medium-term fiscal plans, including spending ceilings. The international financial organization also advocates setting up an EU fund to respond to sudden economic downturns. It could also help with adjustments to climate change and the transformation of the economy. A volume for this was not mentioned. rtr

    • EU debt rules
    • Stability Pact

    Breton sees end of an economic era

    EU Commissioner for the Internal Market, Thierry Breton, expects profound changes to the global economic system in light of numerous current crises. He believes that the world is currently witnessing the end of an economic era, he said in Eindhoven on Monday, according to a speech script released in advance.

    “I also believe that we are seeing the end of an economic era dominated by a long-standing belief in just-on-time logistics, geographical specialization and elongated supply chains. We have ample experience now of global supply chains being disrupted by the Chinese hard lockdown policy, the war in Ukraine and our international partners’ export restrictions.”

    World politics had become highly fragmented in a very short time, China was becoming increasingly dominant, and the pressure on democratic values was growing worldwide. Simultaneously, the world is in a permanent state of crisis. He cited the Covid pandemic, climate change and Russia’s war of aggression against Ukraine as examples.

    New tools are needed to be in a better position vis-à-vis other players on the global stage. During the Covid pandemic, for example, it was only possible to negotiate from a strong position with trading partners such as the United States after the introduction of an export control mechanism. Prior to that, the US, for its part, had blocked supply chains for vaccine production. dpa

    • Climate & Environment
    • European policy

    Ireland fines Instagram a record $400 million over children’s data

    Ireland’s data privacy regulator has agreed to levy a record fine of €405 million against social network Instagram following an investigation into its handling of children’s data, a spokesperson for the watchdog said. The investigation, which started in 2020, focused on child users between the ages of 13 and 17 who were allowed to operate business accounts, which facilitated the publication of the user’s phone number and/or email address.

    Instagram is part of the Meta group, which includes the Internet platform Facebook and the Messenger service WhatsApp. Instagram plans to appeal against the fine. It updated its settings over a year ago and has since released new features to keep teens safe and their information private, the Meta spokesperson said. Ireland has jurisdiction in the matter because Meta, as well as major US technology companies such as Apple and Google, have their European Union headquarters there.

    Several other proceedings are underway against Meta subsidiaries in Ireland. Last year, WhatsApp was fined a record €225 million for failing to comply with EU data protection rules. Details of its Instagram decision will be published by the Irish authority in the coming week. rtr

    • Data protection
    • Digitization
    • Ireland

    Coalition crisis in Slovakia: all liberal ministers resigned

    After months of disputes in the Slovak government coalition, all ministers of the liberal Freedom and Solidarity Party (SaS) who had remained in office resigned on Monday. Party leader Richard Sulík had already resigned as Economy Minister and Deputy Head of government at the end of August. He was now followed by Foreign Minister Ivan Korčok, Education Minister Branislav Gröhling and Justice Minister Mária Kolíková. Without SaS, the other three parties no longer hold the majority in parliament. As consequence, the conservative Prime Minister Eduard Heger announced the transition to a minority cabinet.

    In July, the Liberals had already demanded the resignation of the conservative-populist Finance Minister Igor Matovič. Matovič is also the leader of the largest governing party, Ordinary People and Independent Personalities (Olano), to which the head of government, Heger, also belongs.

    Because of its internal conflicts, the government has still not been able to present its long-announced package of measures against rising energy prices. dpa

    • Energy
    • Slovakia

    Heads

    Camilla Bausch – cross-border climate policy cooperation

    Photo: Aaron Best, Ecologic Institute

    “I probably founded my first environmental NGO at the age of seven,” says Camilla Bausch with a laugh. Her interest in the environment runs through her biography: She has worked on energy and climate policy for 19 years at Ecologic Institute, which she now also heads. Back in the 1990s, when energy law was still a “real niche topic,” she found it for herself and earned her Ph.D. in law on the EU’s electricity market.

    She then made a detour into the private sector at the Boston Consulting Group, with the goal of learning more about dynamics and thinking in the business sector: “In order to achieve fundamental improvements in the environmental field, the whole of society must participate, including business and industry.” Bausch therefore advocates a transdisciplinary approach to climate policy, which she also promotes as spokesperson for the Ecological Research Network (Ecornet), among other things.

    The decision to join Ecologic Institute was an “act of conviction”: “From the very beginning, we at Ecologic Institute were aware that the major environmental challenges had to be solved through cross-border cooperation.” International cooperation appealed to Camilla Bausch from an early age, and she spent time abroad in the USA, Belgium and Russia.

    Painful failure on US climate bill

    She also follows the current developments surrounding the US legislative package, the Inflation Reduction Act, with great interest. Not least because through her work for Democratic Congressman Edward J. Markey in the wake of the Waxman-Markey Clean Energy Bill in 2008/09, she personally experienced how difficult it is to pass climate legislation in the US – and how painful when it fails.

    She now sees a breakthrough in the Inflation Reduction Act, which includes a $370 billion package on climate protection: “According to calculations, the US could reduce its greenhouse gas emissions by 42 percent by 2030. That is already a huge step forward.” And an important signal to the international community, despite financial incentives for fossil infrastructures: With the return to the Paris Agreement and the implementation of the Inflation Reduction Act, the US is once again proving to be a partner with whom the EU can discuss climate policy.

    At the European level, Bausch sees the Green Deal as an ambitious program that needs to be stabilized and monitored over time. To ensure that this succeeds, Bausch is working with the Think Sustainable Europe network to improve knowledge transfer, exchange and analysis of European climate policy.

    True to its guiding principle “Europe grows together through cooperation,” the network includes leading environmental policy think tanks from twelve European countries: “It is important to also understand the dynamics in the individual countries and what opportunities, risks, concerns, and hopes exist there.” There it is again, the plea for cross-border approaches to solutions that runs through Bausch’s work. Marlene Resch

    • Climate & Environment
    • Climate Policy
    • Energy
    • European policy
    • Inflation Reduction Act

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