It seems that the dust has settled somewhat due to the numerous top-level talks on the Ukraine crisis. The last meeting ended late Tuesday night in Berlin. For the first time in eleven years, the so-called Weimar Triangle of Poland, France, and Germany met at the chief executive level. Scholz, Macron, and Duda stressed that they want to work together to prevent a war through diplomatic efforts.
It is true that there are still no significant concessions from Vladimir Putin to withdraw Russian soldiers from the Ukrainian border. However, during his talks with Macron, the Kremlin leader no longer threatened “military-technical” action if NATO does not respond to his demands, as he had done before. Eric Bonse analyzes the distribution of roles in European crisis diplomacy in recent days and the baby steps on the way to a hopefully peaceful solution.
The Chips Act is intended not only to protect Europe’s industry from supply bottlenecks like the current one but also “to make Europe a leader in this very strategic market“, as Commission President Ursula von der Leyen put it. The goal is ambitious – at present, Europe is not playing at the top, neither through its companies nor as a location for the semiconductor industry. US companies dominate in chip design, while Asian countries such as South Korea and Taiwan dominate in production. Moreover, the US government is upgrading through its own Chips Act and massive subsidies, as are Japan, South Korea, and China. The stated goal of more than doubling Europe’s market share in semiconductor production to 20 percent within eight years seems even more ambitious against this backdrop, as Till Hoppe reports.
For the first time since the crisis began, the possibility of a diplomatic solution seems at least in sight, EU sources in Brussels said Tuesday. Council President Charles Michel considered convening a special EU summit next week, a diplomat said. The Franco-German offensive had begun Monday with trips to Washington by German Chancellor Olaf Scholz and to Moscow by French President Emmanuel Macron. Macron’s trip to Russia had been coordinated with the EU, as well as the US, Britain, and NATO.
Macron traveled on to Kiev on Tuesday and then to Berlin, where he attended an evening meeting with Scholz and President of Poland Andrzej Duda. The “Weimar Triangle” meeting was intended to ensure that Poland, which has traditionally been critical of Russia, would be involved and support diplomatic efforts. For this to happen, however, the situation must not deteriorate further. Macron, therefore, called for a security dialogue with Russia, but one in which the Europeans would have to defend their principles, such as the inviolability of borders.
According to Duda, the Ukraine conflict represents the most difficult moment for NATO and the EU since 1989, the year the Berlin Wall fell. “We have an unprecedented concentration of Russian troops along the Ukrainian border. We also have large groupings in Belarus, where military exercises are currently being held and are expected to last until February 20. We are all wondering what will happen after that,” Duda said at the beginning of the meeting.
Macron, meanwhile, is spreading hope: Vladimir Putin has assured him that there will be “neither a deterioration nor an escalation”, he said after his nearly six-hour talks with the Kremlin leader. Talks should continue. Ukraine’s head of state, Volodymyr Zelenskiy, also expressed cautious optimism. “We assume that very soon we will be able to hold negotiations in the Normandy format,” he said after Tuesday’s talks with Macron in Kiev.
In this format, Germany, France, Ukraine, and Russia are working to de-escalate the war that has been raging in eastern Ukraine since 2014 in accordance with the Minsk Agreement. The talks had stalled before the current crisis began in the fall of 2021. A restart at the top level would reduce the risk of military escalation. However, it would not yet resolve the dangerous dispute over Russian troops that Putin has massed around Ukraine and in Belarus.
More than 100,000 Russian troops are waiting for their marching orders, according to US figures. Putin, however, denies invasion plans. During his talks with Macron on Monday, the Kremlin leader no longer threatened “military-technical” action, as he had done previously, if NATO does not respond to his demands. However, Putin also made no concessions.
Putin repeated his accusation that Ukraine was violating the Minsk Agreement and that NATO posed a threat to Russia’s security. On the other hand, Macron came to Ukraine’s defense and stressed that Russia had no right to exclusive zones of influence. However, unlike other Western politicians, the French leader also stressed that Putin represented legitimate security interests. Russia is part of Europe, so Europe must also be involved in talks on a possible new security order. So far, Moscow is only talking to Washington and NATO.
It is unclear whether all 27 EU states share this view. Macron can apparently rely on Chancellor Scholz – he has welcomed the French initiative. Poland and the Baltic countries, however, have repeatedly expressed reservations – they don’t want to rely on France and are counting on the US instead. According to his critics, Macron is acting too much in his own self-interest and eyeing the French presidential campaign. The visit to Putin was ideally suited to present himself as a general in the Ukraine crisis, French media wrote.
Scholz also encounters skepticism. After his visit to Washington, the chancellor can point out that US President Joe Biden left no doubt about Germany’s loyalty to the alliance. However, that Scholz avoided publicly backing away from the Nord Stream 2 gas pipeline in the Baltic Sea continues to raise eyebrows in Eastern Europe.
The Franco-German claim to leadership in the EU is also repeatedly disputed. Therefore, it is unclear how far Macron’s and Scholz’s diplomatic offensive will bear fruit. They have bought time, which now must be used for further talks, according to Brussels.
An EU summit could then decide on how to proceed. It is expected in the middle of next week at the earliest – after a meeting between Chancellor Scholz and Putin in Moscow on February 15.With Tanja Kuchenbecker
For Thierry Breton, it is “one of the most important industrial policy projects in many years“: The European Chips Act, announced by the Commission with much fanfare and now presented yesterday. The legislative proposal, which was drawn up under great time pressure, is intended not only to protect Europe’s industry from supply bottlenecks like the current one but also “to make Europe a leader in this very strategic market”, as Commission President Ursula von der Leyen put it.
The goal is ambitious – at present, Europe is not playing at the top, neither through its companies nor as a location for the semiconductor industry. US companies dominate chip design, while Asian countries such as South Korea and Taiwan dominate production. The US government, moreover, is upgrading through its own Chips Act and massive subsidies, as are Japan, South Korea, and China. Europe cannot continue to stand by and watch, Breton said: “It’s time for us to get into the race.”
According to von der Leyen’s count, the Commission now wants to mobilize around €15 billion in additional funds, including contributions from national budgets and private investors to financing instruments such as the EU Chips Fund for start-ups. In addition, there are to be around €30 billion that the member states have already promised for the semiconductor industry. However, in a global comparison, even that is not a great deal. The goal set by Breton and Co. of more than doubling Europe’s market share in semiconductor production to 20 percent within eight years seems even more ambitious against this backdrop.
The funding is intended primarily to benefit new technologies that are not yet ready for the market. Breton again mentioned semiconductors with ultra-small structure sizes of less than two millimeters. Despite all the general approval, this narrow focus has met with criticism from industry and experts. Particularly since the data basis on which the Commission bases its forecast of rapidly growing demand in this area appears to be fragile.
The package of measures is made up of three pillars:
The Commission wants to mobilize around €11 billion from EU and national pots to catapult Europe to the technological top in the chip industry in the medium and long term. The funds, including 1.65 billion each from the EU’s Horizon Europe research program and the Digital Europe pot, are intended to benefit the development of particularly powerful and energy-saving semiconductors and to promote their implementation in market-ready products – something Europe has traditionally struggled with. The activities are to be managed by a so-called joint undertaking within the framework of the Horizon Europe program, in which the public and private sectors work together.
Specifically, the Commission wants to have a virtual platform for chip design set up that start-ups and SMEs can also use. In addition, open test facilities are to be promoted on which companies can improve their prototypes. The Commission cites semiconductors with structure sizes of less than two nanometers and quantum chips as examples of technologies to be promoted. A European network of competence centers is also to be promoted.
In addition, the Commission wants to increase Europe’s attractiveness as a location for the mass production of modern chips – with the argument of security of supply. To this end, the authority is defining a new legal framework in the Chips Act, intended to offer companies more investment security.
Accordingly, manufacturers are to undertake to invest in chips of the new generation and, in the event of supply bottlenecks, to initially serve customers in Europe. According to the Commission, contract manufacturers such as Globalfoundries in Dresden or TSMC from Taiwan are eligible, as are manufacturers that, like Intel, have so far only produced for their own needs.
In return, the companies’ projects should count on accelerated approval procedures in the EU states, preferential access to the test facilities, and, above all, lavish state aid. This is because semiconductor companies whose facilities are classified as first-of-a-kind facilities in Europe can hope for special treatment. The Commission examines member states’ subsidies for new fabs directly on the basis of the EU Treaty.
State aid would thus still have to meet the criteria of appropriateness and necessity, as Competition Commissioner Margrethe Vestager emphasized. But the exemption allows governments to directly support new production facilities and cover up to 100 percent of the funding gap. Otherwise, state aid is only allowed for research and development projects up to series maturity under an Important Projects of Common European Interest (IPCEI).
Not only chip factories are to count as first-of-a-kind facilities. The authority also includes facilities from upstream and downstream production stages. These include suppliers of the necessary chemicals, such as silicon carbide, as well as companies that package the chips produced. Here, too, significant performance improvements can be achieved with new technologies. According to the Chips Act, the criterion for classification should be that the technology in question is not yet used on a large scale in Europe and that it performs better than conventional technology in terms of performance or energy efficiency, for example.
Acute chip supply bottlenecks like the current ones, which are slowing down entire industries, should not be repeated. To this end, the Commission wants to establish permanent monitoring of the industry in cooperation with the member states. The responsible national authorities are to obtain information from the individual companies for this purpose, with assurances of confidentiality. If a country sees indications of an impending supply crisis, such as sharp fluctuations in demand, it should alert the Commission. In this case, the Brussels-based authority can convene the new European Semiconductor Council to coordinate a concerted response with the member states.
In the event of a crisis, member states can instruct the Commission to purchase semiconductors or raw materials. The Commission also wants to discuss joint remedial measures with friendly third countries. In addition, the authority wants to be able to oblige a manufacturer to supply European customers first. If the company does not comply, it could face fines of up to 1.5 percent of annual sales.
However, the Commission does not want to wait until the European Parliament and the Council have passed the Chips Act. In the transitional period, member states willing to cooperate are already to take up monitoring in a European expert group for semiconductors.
The far-reaching powers of intervention for the Commission in a crisis have met with criticism from the industry. Requiring individual manufacturers to prioritize specific orders is disproportionate, says Wolfgang Weber, chairman of the ZVEI board of directors. “That undermines the basic economic order.” Jan Peter Kleinhans, an expert at the German think tank Stiftung Neue Verantwortung doubts that the instrument of joint procurement for vaccines can be applied to semiconductors. After all, these are highly specialized and diversified products.
The focus on specific structure sizes also meets with opposition: Concentrating on sizes of less than 10 nanometers “misses the needs of the European customer industry”, says Weber. Europe must strengthen its expertise in all structure sizes, he said, adding that power electronics and sensor technology are also crucial to the success of the green and digital transformation. In these areas, significantly larger technology nodes are common.
Approval, on the other hand, comes from other industries: Europe can only ensure a leading role in the markets of the future, such as connected driving if it enters this market itself, said VDA President Hildegard Müller. Encouragement also came from the German government. It is important “that the European Commission sets the framework for state aid law in such a way that all possibilities are exhausted and companies and member states can get started quickly,” said Franziska Brantner, Parliamentary State Secretary in the Ministry of Economics.
The agriculture’s contribution to climate protection was the focus of an informal meeting of EU agriculture ministers that ended on Tuesday. In addition to reducing the high emissions in the sector, the meeting focused particularly on how the potential of agricultural land for the natural storage of CO2 can be better exploited.
Carbon farming is the name of the new approach being promoted by both the EU Commission and the French Council Presidency. At the meeting on Tuesday, France’s Minister of Agriculture, Julien Denormandie, said that broad support from the member states could be counted on.
“Most people think of trees when it comes to natural CO2 stores. But the second place behind the oceans goes to the soil. And most of the soil in Europe is agricultural land,” he continued. That needs to be harnessed. “We need to find a mechanism that allows us to create an economic incentive, a value for carbon capture.” Additional subsidies or a market-based approach through CO2 allowances are conceivable.
In principle, agriculture has a wide range of options at its disposal to increase the subsidence capacity of the soil. These include: more grassland, less artificial fertilizer and less heavy machinery, more diverse crop rotations, or so-called flower strips. At the same time, however, it must be ensured that, in addition to CO2 storage, the actual task of agriculture – supplying the population with food – does not take a back seat, Denormandie said.
Germany’s Agriculture Minister Cem Özdemir welcomed the EU’s plans to promote carbon farming as part of the Green Deal and the EU Soil Strategy. Speaking in Strasbourg, EU Commissioner for Agriculture Janusz Wojciechowski called it a win-win-win situation. “For the climate, for the soils and thus the quality of the products, and for the farmers, who can generate additional income as a result.”
Back in December, the EU Commission presented its plans for creating sustainable carbon cycles in a communication. By the end of the year, the authority intends to present a corresponding draft law for the certification of CO2 removal, which is to contain transparent rules for crediting as well as requirements for the monitoring and verification of carbon dioxide removal. til
For the first time, the EU Commission is withholding certain financial resources for a member country because it is not complying with a ruling by Europe’s highest court. On Tuesday, the EU executive informed Poland that it would withhold payments from regular EU transfers as compensation for the first tranche of a fine imposed by the European Court of Justice (ECJ), which the country has not paid. It is initially about €15 million, an EU representative explained.
The case is about the dispute over the Polish open-cast lignite mine in Turow near the border with the Czech Republic. The Czech Republic had sued Poland for environmental damage before the European Court of Justice (ECJ), which in September ordered Poland to pay a daily fine of €500,000. According to the ECJ, Poland must stop open-pit mining in Turow.
The national conservative government in Warsaw opposed this and announced resistance. “Poland will use all possible legal means to object to these plans of the European Commission,” a spokesman said. This is all the more true because there is now an agreement with the Czech Republic . The spokesman left open exactly what the legal means might look like. However, he clarified: “Poland has emphasized from the beginning that the decisions of the ECJ have no legal or factual basis.”
Poland could soon be facing its next fine. In the dispute over the Polish rule of law, the EU Commission sent Warsaw another demand for payment in mid-January. This involves €69 million because Poland is not implementing an ECJ order on Polish judicial reform. If the country does not comply with the demand, the EU Commission will also compensate for this money by withholding payments from the EU budget. Poland’s President Andrzej Duda proposed to dissolve the controversial chamber for disciplining judges last week. rtr/dpa
After a long struggle with the competition authorities, the $80 billion sale of the chip designer Arm to the US group Nvidia has finally fallen through. This puts the Japanese technology investor and Arm owner Softbank under pressure to act: The new Arm CEO Rene Haas is now to take the company public before March 2023 – if possible in the US – and thus provide liquidity, as the companies announced on Tuesday. Softbank had acquired Arm in 2016 for $32 billion.
The British chip designer’s unique feature is that the company does not manufacture itself. Instead, Arm licenses its processors and their architecture to customers like Qualcomm, Apple, Samsung Electronics, and Nvidia. Almost every smartphone and millions of other devices have licensed Arm processors. Nvidia is primarily known for its graphics cards, but components are now also increasingly used in other fields such as artificial intelligence. The company wants to keep its 20-year Arm license despite the collapsed deal.
The now finally canceled takeover was under bad geopolitical omens from the beginning. Arm’s role as a neutral licensor based in the UK, which also grants licenses to Chinese companies, could hardly have been guaranteed with a takeover by Nvidia based in the USA. This is because a US-controlled Arm would hardly have been able to escape the implementation of US sanctions, such as those enacted by the Trump administration against China. One reason why the Chinese market regulator also wanted to examine the takeover very closely.
Despite all the assurances on the part of the US company, many observers also considered the intended takeover to be problematic in terms of industrial policy: Nvidia and Arm together could have played a dominant role, especially in important future markets.
The US antitrust authority FTC ultimately put a stop to the Arm/Nvidia deal. In December, the FTC filed a lawsuit against the deal, citing a weakening of competition in the operation of data centers and chips for self-driving cars if the two companies were to merge. There were also concerns from competition watchdogs in China, the United Kingdom, and the European Union. Only recently, the sale of Munich-based chip supplier Siltronic to its larger competitor Globalwafers from Taiwan also failed after a 14-month review. fst/rtr
Germany wants to return to the European debt ceiling of 60 percent in relation to economic output in the second half of the decade. “That is also realistic,” German Finance Minister Christian Lindner said Tuesday at Deutsche Bank’s virtual New Year’s reception. But he added that this would require discipline in the upcoming budgets.
The COVID-19 crisis has caused debt levels to soar worldwide. The debt ratio is a good 70 percent in Germany – still a moderate figure internationally. However, many other EU countries have moved so far away from the upper limit of 60 percent that calls are being heard to reform the so-called Stability Pact. This also includes an upper limit of three percent of economic output for new debt. The guidelines were suspended during the pandemic.
Lindner said both limits are part of the European treaties. “It’s not realistic, and it doesn’t make sense to touch them.” It would send the completely wrong signal. On the contrary, a debt reduction path is needed – despite targeted investments in climate protection and digitization. For necessary investments, the European COVID Recovery Fund with its volume of €750 billion is available. “The money has to be used in the first place.” That’s what matters, not exceptions to the Stability Pact in times of high inflation.
Lindner reiterated that Germany would again comply with the debt brake enshrined in the Basic Law and suspended during the pandemic from 2023. Priorities would have to be set to achieve this. “Not everything that would be desirable will be immediately financeable.” Stimulus for economic revival would be the focus. rtr
The head of the international environmental organization Greenpeace, Jennifer Morgan, is moving to the Federal Foreign Office in Germany, according to government sources. There, she will become a special representative for international climate policy under Foreign Minister Annalena Baerbock (Greens), government representatives told the Reuters news agency on Tuesday. Morgan will be introduced to the press by Baerbock in Berlin on Wednesday. Before that, she is to be confirmed by the federal cabinet. Initially, the “Spiegel” had reported on it.
According to Der Spiegel, Morgan is later to become State Secretary at the Federal Foreign Office. However, this is not yet possible because she is an American citizen. An application for German citizenship is already being processed, after which she is to become a civil servant.
Morgan, a US citizen, has worked for non-governmental organizations for decades and has been head of Greenpeace since 2016. Her main task now is to prepare the annual world climate conferences. International climate policy has moved from the Environment Ministry to the Foreign Office under the traffic light government. rtr/luk
Around a quarter of the known animal and plant species on our planet are threatened, half of which are critically endangered or even threatened with extinction. According to the European Environment Agency, the conservation status of European animal species and ecosystems deteriorated even further between 2013 and 2018. This also has consequences for us humans because without healthy ecosystems, we have neither drinkable water nor clean air, fertile soils, fish-rich oceans, pollinated fruit trees, bio-based active ingredients, and much more. The threat of zoonotic diseases such as COVID-19 also becomes more likely in the future due to pressure on wild areas.
The pressing dangers of the biodiversity crisis have long been known. But instead of politically binding measures, often only voluntary commitments have been announced. However, the past has shown that lip service is of no use. For example, the strategic biodiversity targets adopted in 2010 (“Aichi Targets”) were missed. The goals of the EU Biodiversity Strategy 2020 have also not been achieved. According to an in-depth analysis by the European Environment Agency as part of its State of Nature 2020 report, not only have improvements failed to materialize, but on the contrary: Populations are declining, and habitats are shrinking.
The biodiversity crisis, together with the climate crisis, represents the existential threat to the continuation of human civilization. We can no longer shrug our shoulders as strategies fail and targets are not met. In the area of biodiversity, in particular, this requires a shift from voluntary commitments to legally binding targets.
When the global community meets this spring in Kunming, China, for the 15th World Biodiversity Conference (COP15), a year and a half later than planned due to the pandemic, a global legally binding agreement must be adopted. It must contain measurable and ambitious targets and commitments. This is what the European Parliament called for in its resolution on the UN Biodiversity Conference in Kunming.
We need the protection of at least 30 percent of the world’s land and marine areas by 2030 and the restoration of at least 30 percent of degraded ecosystems by 2030. For this, national biodiversity strategies and action plans must be strengthened, and five-year monitoring and review mechanisms must be introduced. COP15 must become a milestone for the biodiversity of our planet, comparable to the Paris Climate Agreement.
As in the area of climate policy, the European Union has a special responsibility and role model function in the negotiations. Before the international community meets in Kunming, the EU must formulate far-reaching European goals. This is the only way to make a credible appearance in Kunming. And the opportunity is there: For the first time in twenty years, the European Union is planning a legislative project in the field of nature, the nature restoration law. Originally scheduled for the fourth quarter of 2021, the proposal has been postponed until March 23, 2022. The Commission would be well advised to use this additional time to draft far-reaching, binding protection and restoration measures. European nature cannot wait any longer.
There needs to be clear, area-based targets, guidelines for ecosystem connectivity, and a focus on peatlands and wetlands, which are not only particularly degraded but are our allies in both climate change mitigation and adaptation by sequestering carbon and buffering drought or heavy rainfall. We need better monitoring, data collection, and systematic reporting to protect pollinators and their habitats.
As part of the EU biodiversity strategy, the European Commission had already announced that it would focus on the renaturation of rivers. 25,000 kilometers of free-flowing rivers are the target, and existing data suggest that this target could even be raised because more than 100,000 barriers in our rivers are no longer even needed today because, for example, the associated mill has long since stopped grinding flour.
In addition to an ambitious renaturation law, the Commission must also finally ensure that European nature conservation law, which is already in force, is enforced. It is not very credible to call for the conservation of the Sumatran tiger in Kunming if the killing of protected species such as wolves or lynx is not adequately prosecuted in Europe.
It seems that the dust has settled somewhat due to the numerous top-level talks on the Ukraine crisis. The last meeting ended late Tuesday night in Berlin. For the first time in eleven years, the so-called Weimar Triangle of Poland, France, and Germany met at the chief executive level. Scholz, Macron, and Duda stressed that they want to work together to prevent a war through diplomatic efforts.
It is true that there are still no significant concessions from Vladimir Putin to withdraw Russian soldiers from the Ukrainian border. However, during his talks with Macron, the Kremlin leader no longer threatened “military-technical” action if NATO does not respond to his demands, as he had done before. Eric Bonse analyzes the distribution of roles in European crisis diplomacy in recent days and the baby steps on the way to a hopefully peaceful solution.
The Chips Act is intended not only to protect Europe’s industry from supply bottlenecks like the current one but also “to make Europe a leader in this very strategic market“, as Commission President Ursula von der Leyen put it. The goal is ambitious – at present, Europe is not playing at the top, neither through its companies nor as a location for the semiconductor industry. US companies dominate in chip design, while Asian countries such as South Korea and Taiwan dominate in production. Moreover, the US government is upgrading through its own Chips Act and massive subsidies, as are Japan, South Korea, and China. The stated goal of more than doubling Europe’s market share in semiconductor production to 20 percent within eight years seems even more ambitious against this backdrop, as Till Hoppe reports.
For the first time since the crisis began, the possibility of a diplomatic solution seems at least in sight, EU sources in Brussels said Tuesday. Council President Charles Michel considered convening a special EU summit next week, a diplomat said. The Franco-German offensive had begun Monday with trips to Washington by German Chancellor Olaf Scholz and to Moscow by French President Emmanuel Macron. Macron’s trip to Russia had been coordinated with the EU, as well as the US, Britain, and NATO.
Macron traveled on to Kiev on Tuesday and then to Berlin, where he attended an evening meeting with Scholz and President of Poland Andrzej Duda. The “Weimar Triangle” meeting was intended to ensure that Poland, which has traditionally been critical of Russia, would be involved and support diplomatic efforts. For this to happen, however, the situation must not deteriorate further. Macron, therefore, called for a security dialogue with Russia, but one in which the Europeans would have to defend their principles, such as the inviolability of borders.
According to Duda, the Ukraine conflict represents the most difficult moment for NATO and the EU since 1989, the year the Berlin Wall fell. “We have an unprecedented concentration of Russian troops along the Ukrainian border. We also have large groupings in Belarus, where military exercises are currently being held and are expected to last until February 20. We are all wondering what will happen after that,” Duda said at the beginning of the meeting.
Macron, meanwhile, is spreading hope: Vladimir Putin has assured him that there will be “neither a deterioration nor an escalation”, he said after his nearly six-hour talks with the Kremlin leader. Talks should continue. Ukraine’s head of state, Volodymyr Zelenskiy, also expressed cautious optimism. “We assume that very soon we will be able to hold negotiations in the Normandy format,” he said after Tuesday’s talks with Macron in Kiev.
In this format, Germany, France, Ukraine, and Russia are working to de-escalate the war that has been raging in eastern Ukraine since 2014 in accordance with the Minsk Agreement. The talks had stalled before the current crisis began in the fall of 2021. A restart at the top level would reduce the risk of military escalation. However, it would not yet resolve the dangerous dispute over Russian troops that Putin has massed around Ukraine and in Belarus.
More than 100,000 Russian troops are waiting for their marching orders, according to US figures. Putin, however, denies invasion plans. During his talks with Macron on Monday, the Kremlin leader no longer threatened “military-technical” action, as he had done previously, if NATO does not respond to his demands. However, Putin also made no concessions.
Putin repeated his accusation that Ukraine was violating the Minsk Agreement and that NATO posed a threat to Russia’s security. On the other hand, Macron came to Ukraine’s defense and stressed that Russia had no right to exclusive zones of influence. However, unlike other Western politicians, the French leader also stressed that Putin represented legitimate security interests. Russia is part of Europe, so Europe must also be involved in talks on a possible new security order. So far, Moscow is only talking to Washington and NATO.
It is unclear whether all 27 EU states share this view. Macron can apparently rely on Chancellor Scholz – he has welcomed the French initiative. Poland and the Baltic countries, however, have repeatedly expressed reservations – they don’t want to rely on France and are counting on the US instead. According to his critics, Macron is acting too much in his own self-interest and eyeing the French presidential campaign. The visit to Putin was ideally suited to present himself as a general in the Ukraine crisis, French media wrote.
Scholz also encounters skepticism. After his visit to Washington, the chancellor can point out that US President Joe Biden left no doubt about Germany’s loyalty to the alliance. However, that Scholz avoided publicly backing away from the Nord Stream 2 gas pipeline in the Baltic Sea continues to raise eyebrows in Eastern Europe.
The Franco-German claim to leadership in the EU is also repeatedly disputed. Therefore, it is unclear how far Macron’s and Scholz’s diplomatic offensive will bear fruit. They have bought time, which now must be used for further talks, according to Brussels.
An EU summit could then decide on how to proceed. It is expected in the middle of next week at the earliest – after a meeting between Chancellor Scholz and Putin in Moscow on February 15.With Tanja Kuchenbecker
For Thierry Breton, it is “one of the most important industrial policy projects in many years“: The European Chips Act, announced by the Commission with much fanfare and now presented yesterday. The legislative proposal, which was drawn up under great time pressure, is intended not only to protect Europe’s industry from supply bottlenecks like the current one but also “to make Europe a leader in this very strategic market”, as Commission President Ursula von der Leyen put it.
The goal is ambitious – at present, Europe is not playing at the top, neither through its companies nor as a location for the semiconductor industry. US companies dominate chip design, while Asian countries such as South Korea and Taiwan dominate production. The US government, moreover, is upgrading through its own Chips Act and massive subsidies, as are Japan, South Korea, and China. Europe cannot continue to stand by and watch, Breton said: “It’s time for us to get into the race.”
According to von der Leyen’s count, the Commission now wants to mobilize around €15 billion in additional funds, including contributions from national budgets and private investors to financing instruments such as the EU Chips Fund for start-ups. In addition, there are to be around €30 billion that the member states have already promised for the semiconductor industry. However, in a global comparison, even that is not a great deal. The goal set by Breton and Co. of more than doubling Europe’s market share in semiconductor production to 20 percent within eight years seems even more ambitious against this backdrop.
The funding is intended primarily to benefit new technologies that are not yet ready for the market. Breton again mentioned semiconductors with ultra-small structure sizes of less than two millimeters. Despite all the general approval, this narrow focus has met with criticism from industry and experts. Particularly since the data basis on which the Commission bases its forecast of rapidly growing demand in this area appears to be fragile.
The package of measures is made up of three pillars:
The Commission wants to mobilize around €11 billion from EU and national pots to catapult Europe to the technological top in the chip industry in the medium and long term. The funds, including 1.65 billion each from the EU’s Horizon Europe research program and the Digital Europe pot, are intended to benefit the development of particularly powerful and energy-saving semiconductors and to promote their implementation in market-ready products – something Europe has traditionally struggled with. The activities are to be managed by a so-called joint undertaking within the framework of the Horizon Europe program, in which the public and private sectors work together.
Specifically, the Commission wants to have a virtual platform for chip design set up that start-ups and SMEs can also use. In addition, open test facilities are to be promoted on which companies can improve their prototypes. The Commission cites semiconductors with structure sizes of less than two nanometers and quantum chips as examples of technologies to be promoted. A European network of competence centers is also to be promoted.
In addition, the Commission wants to increase Europe’s attractiveness as a location for the mass production of modern chips – with the argument of security of supply. To this end, the authority is defining a new legal framework in the Chips Act, intended to offer companies more investment security.
Accordingly, manufacturers are to undertake to invest in chips of the new generation and, in the event of supply bottlenecks, to initially serve customers in Europe. According to the Commission, contract manufacturers such as Globalfoundries in Dresden or TSMC from Taiwan are eligible, as are manufacturers that, like Intel, have so far only produced for their own needs.
In return, the companies’ projects should count on accelerated approval procedures in the EU states, preferential access to the test facilities, and, above all, lavish state aid. This is because semiconductor companies whose facilities are classified as first-of-a-kind facilities in Europe can hope for special treatment. The Commission examines member states’ subsidies for new fabs directly on the basis of the EU Treaty.
State aid would thus still have to meet the criteria of appropriateness and necessity, as Competition Commissioner Margrethe Vestager emphasized. But the exemption allows governments to directly support new production facilities and cover up to 100 percent of the funding gap. Otherwise, state aid is only allowed for research and development projects up to series maturity under an Important Projects of Common European Interest (IPCEI).
Not only chip factories are to count as first-of-a-kind facilities. The authority also includes facilities from upstream and downstream production stages. These include suppliers of the necessary chemicals, such as silicon carbide, as well as companies that package the chips produced. Here, too, significant performance improvements can be achieved with new technologies. According to the Chips Act, the criterion for classification should be that the technology in question is not yet used on a large scale in Europe and that it performs better than conventional technology in terms of performance or energy efficiency, for example.
Acute chip supply bottlenecks like the current ones, which are slowing down entire industries, should not be repeated. To this end, the Commission wants to establish permanent monitoring of the industry in cooperation with the member states. The responsible national authorities are to obtain information from the individual companies for this purpose, with assurances of confidentiality. If a country sees indications of an impending supply crisis, such as sharp fluctuations in demand, it should alert the Commission. In this case, the Brussels-based authority can convene the new European Semiconductor Council to coordinate a concerted response with the member states.
In the event of a crisis, member states can instruct the Commission to purchase semiconductors or raw materials. The Commission also wants to discuss joint remedial measures with friendly third countries. In addition, the authority wants to be able to oblige a manufacturer to supply European customers first. If the company does not comply, it could face fines of up to 1.5 percent of annual sales.
However, the Commission does not want to wait until the European Parliament and the Council have passed the Chips Act. In the transitional period, member states willing to cooperate are already to take up monitoring in a European expert group for semiconductors.
The far-reaching powers of intervention for the Commission in a crisis have met with criticism from the industry. Requiring individual manufacturers to prioritize specific orders is disproportionate, says Wolfgang Weber, chairman of the ZVEI board of directors. “That undermines the basic economic order.” Jan Peter Kleinhans, an expert at the German think tank Stiftung Neue Verantwortung doubts that the instrument of joint procurement for vaccines can be applied to semiconductors. After all, these are highly specialized and diversified products.
The focus on specific structure sizes also meets with opposition: Concentrating on sizes of less than 10 nanometers “misses the needs of the European customer industry”, says Weber. Europe must strengthen its expertise in all structure sizes, he said, adding that power electronics and sensor technology are also crucial to the success of the green and digital transformation. In these areas, significantly larger technology nodes are common.
Approval, on the other hand, comes from other industries: Europe can only ensure a leading role in the markets of the future, such as connected driving if it enters this market itself, said VDA President Hildegard Müller. Encouragement also came from the German government. It is important “that the European Commission sets the framework for state aid law in such a way that all possibilities are exhausted and companies and member states can get started quickly,” said Franziska Brantner, Parliamentary State Secretary in the Ministry of Economics.
The agriculture’s contribution to climate protection was the focus of an informal meeting of EU agriculture ministers that ended on Tuesday. In addition to reducing the high emissions in the sector, the meeting focused particularly on how the potential of agricultural land for the natural storage of CO2 can be better exploited.
Carbon farming is the name of the new approach being promoted by both the EU Commission and the French Council Presidency. At the meeting on Tuesday, France’s Minister of Agriculture, Julien Denormandie, said that broad support from the member states could be counted on.
“Most people think of trees when it comes to natural CO2 stores. But the second place behind the oceans goes to the soil. And most of the soil in Europe is agricultural land,” he continued. That needs to be harnessed. “We need to find a mechanism that allows us to create an economic incentive, a value for carbon capture.” Additional subsidies or a market-based approach through CO2 allowances are conceivable.
In principle, agriculture has a wide range of options at its disposal to increase the subsidence capacity of the soil. These include: more grassland, less artificial fertilizer and less heavy machinery, more diverse crop rotations, or so-called flower strips. At the same time, however, it must be ensured that, in addition to CO2 storage, the actual task of agriculture – supplying the population with food – does not take a back seat, Denormandie said.
Germany’s Agriculture Minister Cem Özdemir welcomed the EU’s plans to promote carbon farming as part of the Green Deal and the EU Soil Strategy. Speaking in Strasbourg, EU Commissioner for Agriculture Janusz Wojciechowski called it a win-win-win situation. “For the climate, for the soils and thus the quality of the products, and for the farmers, who can generate additional income as a result.”
Back in December, the EU Commission presented its plans for creating sustainable carbon cycles in a communication. By the end of the year, the authority intends to present a corresponding draft law for the certification of CO2 removal, which is to contain transparent rules for crediting as well as requirements for the monitoring and verification of carbon dioxide removal. til
For the first time, the EU Commission is withholding certain financial resources for a member country because it is not complying with a ruling by Europe’s highest court. On Tuesday, the EU executive informed Poland that it would withhold payments from regular EU transfers as compensation for the first tranche of a fine imposed by the European Court of Justice (ECJ), which the country has not paid. It is initially about €15 million, an EU representative explained.
The case is about the dispute over the Polish open-cast lignite mine in Turow near the border with the Czech Republic. The Czech Republic had sued Poland for environmental damage before the European Court of Justice (ECJ), which in September ordered Poland to pay a daily fine of €500,000. According to the ECJ, Poland must stop open-pit mining in Turow.
The national conservative government in Warsaw opposed this and announced resistance. “Poland will use all possible legal means to object to these plans of the European Commission,” a spokesman said. This is all the more true because there is now an agreement with the Czech Republic . The spokesman left open exactly what the legal means might look like. However, he clarified: “Poland has emphasized from the beginning that the decisions of the ECJ have no legal or factual basis.”
Poland could soon be facing its next fine. In the dispute over the Polish rule of law, the EU Commission sent Warsaw another demand for payment in mid-January. This involves €69 million because Poland is not implementing an ECJ order on Polish judicial reform. If the country does not comply with the demand, the EU Commission will also compensate for this money by withholding payments from the EU budget. Poland’s President Andrzej Duda proposed to dissolve the controversial chamber for disciplining judges last week. rtr/dpa
After a long struggle with the competition authorities, the $80 billion sale of the chip designer Arm to the US group Nvidia has finally fallen through. This puts the Japanese technology investor and Arm owner Softbank under pressure to act: The new Arm CEO Rene Haas is now to take the company public before March 2023 – if possible in the US – and thus provide liquidity, as the companies announced on Tuesday. Softbank had acquired Arm in 2016 for $32 billion.
The British chip designer’s unique feature is that the company does not manufacture itself. Instead, Arm licenses its processors and their architecture to customers like Qualcomm, Apple, Samsung Electronics, and Nvidia. Almost every smartphone and millions of other devices have licensed Arm processors. Nvidia is primarily known for its graphics cards, but components are now also increasingly used in other fields such as artificial intelligence. The company wants to keep its 20-year Arm license despite the collapsed deal.
The now finally canceled takeover was under bad geopolitical omens from the beginning. Arm’s role as a neutral licensor based in the UK, which also grants licenses to Chinese companies, could hardly have been guaranteed with a takeover by Nvidia based in the USA. This is because a US-controlled Arm would hardly have been able to escape the implementation of US sanctions, such as those enacted by the Trump administration against China. One reason why the Chinese market regulator also wanted to examine the takeover very closely.
Despite all the assurances on the part of the US company, many observers also considered the intended takeover to be problematic in terms of industrial policy: Nvidia and Arm together could have played a dominant role, especially in important future markets.
The US antitrust authority FTC ultimately put a stop to the Arm/Nvidia deal. In December, the FTC filed a lawsuit against the deal, citing a weakening of competition in the operation of data centers and chips for self-driving cars if the two companies were to merge. There were also concerns from competition watchdogs in China, the United Kingdom, and the European Union. Only recently, the sale of Munich-based chip supplier Siltronic to its larger competitor Globalwafers from Taiwan also failed after a 14-month review. fst/rtr
Germany wants to return to the European debt ceiling of 60 percent in relation to economic output in the second half of the decade. “That is also realistic,” German Finance Minister Christian Lindner said Tuesday at Deutsche Bank’s virtual New Year’s reception. But he added that this would require discipline in the upcoming budgets.
The COVID-19 crisis has caused debt levels to soar worldwide. The debt ratio is a good 70 percent in Germany – still a moderate figure internationally. However, many other EU countries have moved so far away from the upper limit of 60 percent that calls are being heard to reform the so-called Stability Pact. This also includes an upper limit of three percent of economic output for new debt. The guidelines were suspended during the pandemic.
Lindner said both limits are part of the European treaties. “It’s not realistic, and it doesn’t make sense to touch them.” It would send the completely wrong signal. On the contrary, a debt reduction path is needed – despite targeted investments in climate protection and digitization. For necessary investments, the European COVID Recovery Fund with its volume of €750 billion is available. “The money has to be used in the first place.” That’s what matters, not exceptions to the Stability Pact in times of high inflation.
Lindner reiterated that Germany would again comply with the debt brake enshrined in the Basic Law and suspended during the pandemic from 2023. Priorities would have to be set to achieve this. “Not everything that would be desirable will be immediately financeable.” Stimulus for economic revival would be the focus. rtr
The head of the international environmental organization Greenpeace, Jennifer Morgan, is moving to the Federal Foreign Office in Germany, according to government sources. There, she will become a special representative for international climate policy under Foreign Minister Annalena Baerbock (Greens), government representatives told the Reuters news agency on Tuesday. Morgan will be introduced to the press by Baerbock in Berlin on Wednesday. Before that, she is to be confirmed by the federal cabinet. Initially, the “Spiegel” had reported on it.
According to Der Spiegel, Morgan is later to become State Secretary at the Federal Foreign Office. However, this is not yet possible because she is an American citizen. An application for German citizenship is already being processed, after which she is to become a civil servant.
Morgan, a US citizen, has worked for non-governmental organizations for decades and has been head of Greenpeace since 2016. Her main task now is to prepare the annual world climate conferences. International climate policy has moved from the Environment Ministry to the Foreign Office under the traffic light government. rtr/luk
Around a quarter of the known animal and plant species on our planet are threatened, half of which are critically endangered or even threatened with extinction. According to the European Environment Agency, the conservation status of European animal species and ecosystems deteriorated even further between 2013 and 2018. This also has consequences for us humans because without healthy ecosystems, we have neither drinkable water nor clean air, fertile soils, fish-rich oceans, pollinated fruit trees, bio-based active ingredients, and much more. The threat of zoonotic diseases such as COVID-19 also becomes more likely in the future due to pressure on wild areas.
The pressing dangers of the biodiversity crisis have long been known. But instead of politically binding measures, often only voluntary commitments have been announced. However, the past has shown that lip service is of no use. For example, the strategic biodiversity targets adopted in 2010 (“Aichi Targets”) were missed. The goals of the EU Biodiversity Strategy 2020 have also not been achieved. According to an in-depth analysis by the European Environment Agency as part of its State of Nature 2020 report, not only have improvements failed to materialize, but on the contrary: Populations are declining, and habitats are shrinking.
The biodiversity crisis, together with the climate crisis, represents the existential threat to the continuation of human civilization. We can no longer shrug our shoulders as strategies fail and targets are not met. In the area of biodiversity, in particular, this requires a shift from voluntary commitments to legally binding targets.
When the global community meets this spring in Kunming, China, for the 15th World Biodiversity Conference (COP15), a year and a half later than planned due to the pandemic, a global legally binding agreement must be adopted. It must contain measurable and ambitious targets and commitments. This is what the European Parliament called for in its resolution on the UN Biodiversity Conference in Kunming.
We need the protection of at least 30 percent of the world’s land and marine areas by 2030 and the restoration of at least 30 percent of degraded ecosystems by 2030. For this, national biodiversity strategies and action plans must be strengthened, and five-year monitoring and review mechanisms must be introduced. COP15 must become a milestone for the biodiversity of our planet, comparable to the Paris Climate Agreement.
As in the area of climate policy, the European Union has a special responsibility and role model function in the negotiations. Before the international community meets in Kunming, the EU must formulate far-reaching European goals. This is the only way to make a credible appearance in Kunming. And the opportunity is there: For the first time in twenty years, the European Union is planning a legislative project in the field of nature, the nature restoration law. Originally scheduled for the fourth quarter of 2021, the proposal has been postponed until March 23, 2022. The Commission would be well advised to use this additional time to draft far-reaching, binding protection and restoration measures. European nature cannot wait any longer.
There needs to be clear, area-based targets, guidelines for ecosystem connectivity, and a focus on peatlands and wetlands, which are not only particularly degraded but are our allies in both climate change mitigation and adaptation by sequestering carbon and buffering drought or heavy rainfall. We need better monitoring, data collection, and systematic reporting to protect pollinators and their habitats.
As part of the EU biodiversity strategy, the European Commission had already announced that it would focus on the renaturation of rivers. 25,000 kilometers of free-flowing rivers are the target, and existing data suggest that this target could even be raised because more than 100,000 barriers in our rivers are no longer even needed today because, for example, the associated mill has long since stopped grinding flour.
In addition to an ambitious renaturation law, the Commission must also finally ensure that European nature conservation law, which is already in force, is enforced. It is not very credible to call for the conservation of the Sumatran tiger in Kunming if the killing of protected species such as wolves or lynx is not adequately prosecuted in Europe.