Big day in France: Today at 3 p.m., the new Prime Minister Michel Barnier will present his roadmap for the new government in parliament. The déclaration de politique générale is expected with increasing tension. The reason for this is not so much the chaotic formation of the government but the surprisingly high budget deficit in the French treasury.
Barnier said in an interview last week that he had found a bad budgetary situation when he took office. The situation was more difficult than originally assumed. Barnier’s statement is anything but harmless, as it suggests that his predecessor Gabriel Attal and his economy minister Bruno Le Maireconcealed the extent of the deficit.
The government deficit is over 6 percent of gross domestic product, Barnier said – well above the 4.4 percent originally targeted for 2024. On the same day, the national statistics office announced that France’s debt is currently 112 percent of GDP, instead of the 60 percent prescribed by EU rules.
The country is now puzzling over the causes of the alarming figures and at the same time arguing about what consequences the government should draw from them. Members of parliament from Emmanuel Macron’s camp have already publicly spoken out against tax increases.
The debate about the budget deficit is overshadowing the trial against the Rassemblement National that has just begun. Party leader Marine Le Pen and other party members are accused of having financed the party’s activities with EU funds. Read more about this in the News.
Have a relaxing day.
Your Claire Stam
Feature
EU organic regulation from 2025: industry sees organic supply chains at risk
In order for companies to be able to import organic food into the EU, corresponding requirements must be met in the respective countries of origin. While it was previously sufficient to apply the European organic standards “equivalently” in these so-called third countries, they are to be implemented there “consistently“ from next year. In this way, the EU Commission wants to ensure fair competition and protect consumers from being misled by organic products from non-EU countries. Companies and inspection bodies outside the EU must adapt accordingly.
In third countries that have not concluded any special trade agreements with the EU, but where producer groups wish to continue to certify their organic goods in accordance with current EU organic law, the following will apply in future:
Company size: maximum 2,000 members
Cultivation area: maximum five hectares
Turnover: maximum €25,000
simultaneous organic and conventional farming within a cooperative excluded
In the current EU Organic Regulation, the EU had added temporary transitional rules in order to give those affected in third countries even more time for the changeover. However, the transitional rule for the “equivalent inspection body standard” procedure expires at the end of the year. For farms, producer groups and inspection bodies in these countries outside the EU, this means that they must apply the new conformity procedures from January 1, 2025. However, thanks to a further transitional period that the EU Commission integrated into the EU Organic Regulation, they have until mid-October to carry out the necessary inspections and certifications.
Call for an extension of the transition period until the end of 2025
Jan Plagge, President of the European organic umbrella organization IFOAM Organics Europe, is not satisfied with this. “We don’t understand why the transition period is now being pushed into the middle of the inspection year,” he says. According to Plagge, the time for assessment is long gone after an eight-year phase of wrangling over the changes to the EU Organic Regulation. However, more time is needed for practicable implementation. He is therefore calling for the transition period to be extended until the end of 2025.
Time is running out to convert the systems, especially in third countries, he says. However, Plagge sees a “huge challenge” in the changes to the EU Organic Regulation, regardless of when they come into force. He identifies problems for tropical fruit producers in particular. The regulation was not written for them, he summarizes.
‘The EU is now saying, either you’re organic or you’re not’
Marcelo Crescenti is also very concerned about producers in the Global South. He is responsible for communications at the non-profit organization Fairtrade Germany, which awards the well-known seal of the same name. He considers it difficult to apply a good regulation such as the EU Organic Regulation, which is intended for Europe, to the Global South for development policy reasons. Crescenti believes that the aim is to support small farmers, but that the maximum turnover of €25,000 which the EU Organic Regulation will stipulate from next year, keeps them small.
Crescenti also predicts similar effects with regard to the other requirements that the innovations entail. For years, Fairtrade advised producers in the Global South to organize themselves into cooperatives. Today, Fairtrade only works with such cooperatives. However, most of these are not purely organic cooperatives, says Crescenti. Some farmers farm one hill organically and the other conventionally. “The EU now says you are either organic or not.”
Local support for those affected
However, Crescenti points out that it is a lengthy process for cooperatives and farmers to switch completely to organic farming. In view of the changes to the EU organic regulation, the cooperatives are now considering setting up sub-cooperatives with only organic producers. Some farmers would have to share their farms. “This works for large plantations, for large suppliers, but not for small farmers,” says Crescenti.
Fairtrade is currently in the process of reallocatingitsresources internally in order to build capacity at the producer network level, reports Crescenti. Fairtrade isalsodemanding resources from the EU. “The EU must look at how it can support those affected on the ground in order to create advisory services and set up programs.“
In his opinion, working towards a postponement makes little sense, says Crescenti. Rather, clear parameters are needed that make it clear what will apply in the future. “There are many producers who say that the EU is too complicated for them and that we should look towards the USA, Canada and Japan.” His forecast: “There will be a shortage, which means higher prices.” Someone will pay for it. “If the EU doesn’t pay, the consumer will pay.”
Consequences for consumers and producers
Arnd Liedtke from Tchibo, Germany’s largest coffee roasting company, also predicts consequences for consumers and producers. “We see the danger that this directive will overburden small producers, such as small cooperatives, in the countries of origin – without really achieving anything for the cause,” he says, assessing the upcoming changes to the EU Organic Regulation. For them as roasters, the sources of supplywould bereduced, which would mean less choice for customers. Liedtke also believes that small producers would lose their purchasing market.
Jan Plagge, President of the EU umbrella organization for the organic sector, also fears fewer imported organic goods in view of the new “conformity” procedure. Especially in countries that have focused on organic production for the EU, it will be difficult, he says. “If the producer groups with small farmers in the Global South do not manage to ensure consistent production methods, they will no longer be on the market and there will be a shortage,” predicts Plagge. At the same time, producers in the Global South could look for other markets – outside of Europe.
Europäische Kommission
Translation missing.
Global Gateway: This is the dilemma of the EU initiative
According to analysts, the EU still has some work to do on its Global Gateway (GG) infrastructure initiative strategy. With the start of the new EU cabinet, communication around GGneeds to become more transparent to realize its full potential and strengthen existing partnerships, especially in Africa.
This is the conclusion of a joint analysis published on Tuesday by Merics, the German Marshall Fund, the African think tank Nkafu Politics Institute and the British think tank Institute of Economic Affairs, published by the Friedrich Naumann Foundation. The paper has been made available to Table.Briefings in advance.
Africa was the continent with the most Global Gateway projects in 2024. The analysis notes that communication and perception of the EU infrastructure initiative in African countries remains a significant problem.
China certainly sees the EU as a competitor
Since its inception, GG has drawn comparisons with China’s Belt and Road Initiative (BRI) – not least because EU Commission President Ursula von der Leyen herself presented the initiative as an alternative to the BRI. The analysts write that the EU must clearly communicate its goals and the value of GG to avoid misunderstandings and create a positive image.
The analysis shows that there have so far been several problems with the initiative’s own positioning and external perception – not only in Africa, but also in China: The decline in mutual investment goals between the EU and the People’s Republic shows that Beijing perceives GG as a direct competitor to the Belt and Road Initiative (BRI).
This is why the Chinese side attempts to downplay the importance of the EU initiative and present GG as a complement to the BRI: “China has developed a narrative that presents GG as complementary to the BRI, while the EU should emphasize its competitive role more clearly,” the report states. It is “Europe’s responsibility to also correct the Chinese narrative and perception regarding European support for the Belt and Road Initiative and its synergy potential with GG.”
‘Don’t see Africa as a geopolitical chessboard’
The crux of the matter is that the competition narrative is less well received in Africa: The analysts write that the EU should avoid seeing Africa as a chessboard in competition with China. Instead, the focus should be on Africa’s actual development needs.
The report recommends several steps:
Engagement with African institutions: The EU should engage African financial institutions more closely to improve project implementation and utilize local expertise.
Recognizing diverse values: The EU must recognize that African countries have different values and needs. A more flexible strategy could help deepen relations.
Evaluation and transparency: The report highlights the importance of developing systems that accurately track the progress and impact of GG projects to properly visualize successes to the outside world.
However, the analysts take a realistic view of the success potential: “Some of the EU’s implementation difficulties with GG are related to the simple fact that many recipient countries have no interest in fulfilling the basic EU criteria within the framework of GG” the paper states. This applies, in particular, to requirements relating to transparency and democratic standards. “A faster provision of BRI loans with fewer governance criteria will continue to be more appealing to many.”
The Global Gateway brand should not be used ‘inflationarily’
The paper argues that the complexity of EU decision-making processes and financing problems generally reduce GG’s competitiveness. As a result, Chinese analysts are often skeptical about the initiative’s effectiveness. The paper found that the Chinese media often view the GG narrative through the lens of strategic competition between the US and China, leading to skepticism regarding the EU’s geopolitical motives.
The analysts add further points to the to-do list of the designated EU Commissioner for International Partnerships, Jozef Síkela, who will be responsible for GG. Among them: The “indiscriminate use of the ‘Global Gateway’ brand” must be abandoned. It is “inflationary” to simply bundle all types of development aid projects under GG, the analysts criticize – “possibly in order to reach the global mobilization sum of 300 billion euros by 2027.” In this way, GG loses credibility, they say.
Africa
Geopolitics
global gateway
Infrastructure
Trade
Ursula von der Leyen
News
Trade dispute: EU states decide over tariffs on Chinese EVs
The EU Commission’s planned special tariffs on EVs from China will be voted on this Friday. However, according to Reuters, the Commission intends to continue negotiations with China even after the vote. The Commission sent its proposal for definitive tariffs on Chinese EVs to the 27 EU member states and advocated the rates it calculated in September.
At the same time, it included an additional text called a recital stating that talks so far with China had not resolved the dispute over alleged Chinese subsidies, but that negotiations on a possible compromise could continue even if EU countries agree to the tariff rates.
Commission will continue negotiations
During a debate in the European Parliament’s Trade Committee, Martin Lukas, Director for Trade Defense in the Commission’s Directorate-General for Trade, confirmed that the EU Commission will continue to negotiate. The deadline for the end of the investigation of October 30 will be met, but the Commission can still negotiate price commitments with China after that date, he added.
The Chinese Ministry of Commerce announced last Thursday that it was negotiating a flexible pricing system to avert the tariffs. The Commission has said it could re-examine a price undertaking – involving a minimum import price and typically a volume cap – having previously rejected those offered by Chinese companies. The proposed tariffs vary from 7.8 percent for Tesla, opens new tab EVs built in China to 35.3 percent for those of SAIC, opens new tab and other companies deemed not to have cooperated with the Commission’s investigation. They are on top of the EU’s standard 10 percent car import duty.
EU members are due to vote on Friday on whether to back final or “definitive” tariffs for the next five years. They would be imposed unless a qualified majority of 15 EU countries representing 65 percent of the EU’s population voted against. rtr/jaa
Car Industry
Duties
E-cars
EU
Europäisches Parlament
European policy
Germany
Handel
Hydrogen bank: China reservation also applies to member states
The EU Commission’s new course against imports of Chinese electrolyzers will also affect the Member States’ funding policy for the production of green hydrogen. A spokesperson for Energy Commissioner Kadri Simson clarified this on Monday at the request of Table.Briefings: “With regard to the hydrogen bank auctions, the same conditions apply to EU tenders as for auctions-as-a-service.“
The Commission published the new funding conditions for the European Hydrogen Bank at the end of last week. In future, restrictions will apply to central components of Chinese electrolyzers for projects that are awarded funding. However, EU countries can also use the mechanism of the European Hydrogen Bank for their own imports, which they support with national budget funds – so-called auctions-as-a-service. In the first round, Germany announced it would make use of this option and provide €350 million.
Austria would be the first affected EU country
However, the new rules only apply to the second round of tenders. In February, Austria’s Green Energy Minister Leonore Gewessler announced that she would make €400 million available for such an auction via the European Hydrogen Bank. If the future government in Vienna sticks to the plan, Austria would be the first EU country to have to defend an import restriction on the key future technology of electrolysis against China.
A new study by the Boston Consulting Group, to be published on Wednesday, illustrates just how narrow Europe’s technological lead in electrolyzers has become. In just three to five years, foreign suppliers could surpass European suppliers in terms of cost, quality and performance, according to the study, a draft of which is available to Table.Briefings. It was first reported on by Handelsblatt. ber
Grüner Wasserstoff
EU enlargement: consultations with Western Balkan states in Berlin
Against the backdrop of ongoing tensions between Serbia and Kosovo, Foreign Minister Annalena Baerbock (Greens) is meeting with the foreign ministers of the six Western Balkan states this Tuesday to discuss prospects for further rapprochement with the EU. The focus of the talks at the Federal Foreign Office in Berlin is likely to be the activation of the regional free trade agreement Cefta (Central European Free Trade Agreement), which aims to dismantle trade barriers.
Until now, the implementation of the agreement has been blocked due to a dispute over status issues between Kosovo and Serbia. Until recently, it was unclear whether Kosovo would agree to a Cefta agreement and whether a settlement without Kosovo could be reached if necessary in the event of a further blockade. The Cefta states include Albania, Bosnia and Herzegovina, Kosovo, Moldova, Montenegro, North Macedonia and Serbia.
The meeting in the format of the Berlin Process is seen as preparation for a corresponding summit of heads of state and government on October 14 in Berlin. The Berlin Process, initiated by former Chancellor Angela Merkel in 2014, aims to bring the six countries closer to EU standards, norms and practices. The Western Balkan states include Albania, Bosnia-Herzegovina, Kosovo, North Macedonia, Montenegro and Serbia. The EU is already negotiating accession with Serbia, North Macedonia, Montenegro and Albania. Bosnia-Herzegovina is considered a candidate country, Kosovo a potential candidate country. dpa
EU-Erweiterung
Disinformation: Baerbock calls for tougher stance from new EU Commission
Annalena Baerbock has called on the new EU Commission to take stronger action against disinformation on social networks. “If you have algorithms that deliberately spread not only fake news, but also hatred and agitation, (…) then that is a disruption of our democratic reality,” said the Federal Foreign Minister at a Green Party conference in Berlin on Monday. As an example, she cited recruitment videos of Islamist terrorists, which young people see in their feeds as soon as they click on such a video.
Baerbock believes it is the EU Commission’s turn: “If we don’t regulate this, just as we have regulation in normal life, then we will be helplessly at the mercy of this fake news.” In her political guidelines, Commission President Ursula von der Leyen has announced a proposal for a “European Democracy Shield“, which would be modeled on the French observatory for digital influence from abroad (Viginum). The Commissioner-designate for Justice, Michael McGrath, will lead the work on this. tho
Digital Services Act
Embezzlement of EU funds: trial against Le Pen begins
The trial against Marine Le Pen and other French right-wing nationalists has begun at a criminal court in Paris. The 28 defendants are accused of embezzling public funds. The central accusation is that Le Pen’s party received money for parliamentary assistants from the European Parliament, who would have actually worked partly or entirely for the party.
The allegations relate to the years 2004 to 2016 and are directed against the Rassemblement National party (formerly: Front National), former MPs and assistants. It concerns the possible fictitious employment of assistants to several French MEPs. In total, a sum of almost €7 million is said to be involved.
Even before the trial began, Marine Le Pen rejected the allegations. “We have not broken any political rule or any rule of the European Parliament,” said the long-time party leader when she arrived at court. A year ago, Le Pen had already transferred €330,000 reclaimed from the European Parliament. However, her party emphasized that this was not an admission of wrongdoing.
Process could have an impact on the 2027 election
In addition to Marine Le Pen, her father and party founder Jean-Marie Le Pen (96) is also among the accused. However, he did not appear in court for health reasons, as did another defendant.
The fact that Le Pen and other party leaders now have to sit in the dock runs counter to efforts to normalize the party. In the new parliament, the right-wing nationalists – unlike the left-wing alliance – have recently tried to work constructively and cautiously in opposition.
The trial is scheduled to run until the end of November. If found guilty, the defendants could face heavy fines and prison sentences of up to ten years. If convicted, the defendants could also be declared ineligible for five years, which could put the brakes on Marine Le Pen’s candidacy in the 2027 presidential election. dpa
Europäisches Parlament
Frankreich
CAP audit report: what stands in the way of more environmental and climate protection
The national CAP strategy plans fall short of the EU’s environmental and climate targets. This is the conclusion of the EU Court of Auditors in a new report. The plans are “not much more environmentally ambitious” than the Common Agricultural Policy before the latest reform came into force, which was supposed to make EU agricultural funds significantly “greener.”
The auditors attribute this to several problems:
Member States hardly use their newly created freedom in implementing the CAP to raise environmental ambitions. They exhaust exemptions and often do not go beyond the practices that the majority of farms already implement in terms of organic regulations.
The EU Commission’s approval process lacked measurable indicators for the ecological ambition level of the plans.
The EU legal acts on the CAP do not specify any quantifiable climate and environmental targets; the Green Deal targets are not laid down there. The Commission could only appeal to the EU countries to implement these in the plans – often without success.
For the upcoming CAP reform, the Court of Auditors therefore recommends setting measurableenvironmental and climate targets and specifying how these are to be applied when auditing national plans. Furthermore, Brussels should measure and review results rather than measures.
Despite its criticism of the EU countries’ lack of ambition, it is not calling for control over the CAP to be concentrated more strongly in Brussels again. Such a conclusion cannot be drawn so soon after the current CAP came into force, says the responsible auditor Nikolaos Milionis upon request.
Feindt: renewed centralization in Brussels ‘not expedient’
“In our experience, a renewed centralization of environmental and climate targets at EU level is notexpedient,” says Peter Feindt, Professor of Agricultural and Food Policy in Berlin. This is because more flexibility would at least let the member states the option of using EU funds more ambitiously instead of agreeing on the lowest common denominator.
Nevertheless, he is not overly optimistic about the future of the CAP: as long as national implementation takes place within the framework of traditional agricultural policy structures, a fundamental reorientation is not to be expected. jd
GAP
Green claims: Study questions effectiveness of EU proposal
Although the Green Claims Directive is supposed to put an end to misleading climate advertising, the Commission’s proposal would still allow labels that distort consumer perceptions. This is the result of a scientific study published in the journal “Food Quality and Preference”. According to the study, labels with the inscription “climate neutral” lead consumers to believe that food is significantly more climate-friendly than it actually is.
According to the researchers, this is also the case if it is made clear that a product is only climate-neutral through CO2 offsetting. For example, by using labels such as “100 percent CO2-compensated”, as envisaged in the Commission’s proposal on green claims for such cases. “Such labels therefore promote greenwashing, make market transparency more difficult and offer consumers no guidance for sustainable nutrition”, criticizes lead author Denise Dreist from the University of Göttingen.
Traffic light label is the most effective option
The study identifies a traffic light system similar to the Nutri-Score as a more effective alternative. This would allow consumers to assess the climate impact of food more accurately. Study leader Anke Zühlsdorf advises making traffic light labeling mandatory. This would make it easier to compare products and not only highlight climate-friendly products. However, a first step could be a ban on product-related advertising with climate neutrality.
For the study, test subjects from Germanywere asked to assess the climate impact of various food products. The authors compared how the assessment differed depending on which climate label the respective product carried.
While the EU Council of Environment Ministersand the Commission are in favor of companies being able to continue to claim CO2 offsets for climate labels, the European Parliament only wants to allow this in exceptional cases so that the focus is on reducing emissions. The trilogue negotiations, in which the Council and Parliament must agree on a version, are expected to start at the beginning of next year. jd
Food
Translation missing.
Heads
Stefan Köhler: lateral entrant in the EU Committee on Agriculture
Stefan Köhler has been a Member of Parliament since the 2024 European elections and remains the farmer president of Lower Franconia.
It is his first political office: Stefan Köhler has been a member of the European Parliament for the CSU since the European elections at the beginning of June, where he is a member of the Agriculture and Environment Committees. After it became clear that former CSU MEP and agricultural politician Marlene Mortler would not be standing again, the party approached him, he explains: “I was asked to contribute my agricultural expertise to the CSU – a unique opportunity for a career changer like me.”
The farmer from Aschaffenburg already has experience in the Brussels agricultural bubble – through his position as President of the Lower Franconia Farmers’ Association. “I’ve been to Brussels several times through the DBV, for example, to discuss the wolf or the SUR [Sustainable Use Regulation] on pesticides,” says Köhler.
Köhler wants to remain DBV regional president
Köhler wants to continue in hisrole as the head of the regional association of the German Farmers’ Union (DBV) as an MEP, at least part-time. He does not see this as a conflict of interest, but rather as an advantage: “In order to shape agricultural policy sensibly, you need someone with practical experience – and who better than a farmer?”
Köhler has also been active in various committees relating to nature conservation, including the Bavarian Nature Conservation Fund Foundation Board, the Presidium of the Academy for Nature Conservation and Landscape Management and the DBV Environmental Committee. “I believe that agriculture and environmental protection can be brought together, but it has to be done with moderation and purpose,” he says.
Appeal for more flexibility
For example, by creating incentives instead of imposing requirements. “Instead of imposing a blanket ban on pesticides in protected landscape areas, for example, farmers should be given the option of reducing pesticides in the way that is best for them,” he explains. For example, through rewarding the cultivation of crops that require fewer pesticides.
Such an approach would be more flexible, easier for farms to plan and would meet with much greater acceptance, argues Köhler. Bans that would make it “practically impossible to run a farm” would be avoided.
Köhler thinks GAP loosening is right
This also applies to the Common Agricultural Policy (CAP), which Köhler also believes should be more incentive-based. “We should use premiums to encourage farmers to do more for nature conservation, climate protection and biodiversity,” he says. This requires a strong agricultural budget. The Agriculture Strategy Dialogue has also proposed something similar.
Meanwhile, Köhler does not see a rollback of sustainability standards in the relaxation of CAP environmental rules adopted at the beginning of the year. “Areas will continue to be set aside,” he argues. “Only instead coercion through financial incentives, such as those offered by Germany through the eco-regulations.” However, Köhler also concedes that the abolition of compulsory fallow land (GAEC 8) is likely to result in less land being set aside than the previous minimum of four percent. JuliaDahm
Big day in France: Today at 3 p.m., the new Prime Minister Michel Barnier will present his roadmap for the new government in parliament. The déclaration de politique générale is expected with increasing tension. The reason for this is not so much the chaotic formation of the government but the surprisingly high budget deficit in the French treasury.
Barnier said in an interview last week that he had found a bad budgetary situation when he took office. The situation was more difficult than originally assumed. Barnier’s statement is anything but harmless, as it suggests that his predecessor Gabriel Attal and his economy minister Bruno Le Maireconcealed the extent of the deficit.
The government deficit is over 6 percent of gross domestic product, Barnier said – well above the 4.4 percent originally targeted for 2024. On the same day, the national statistics office announced that France’s debt is currently 112 percent of GDP, instead of the 60 percent prescribed by EU rules.
The country is now puzzling over the causes of the alarming figures and at the same time arguing about what consequences the government should draw from them. Members of parliament from Emmanuel Macron’s camp have already publicly spoken out against tax increases.
The debate about the budget deficit is overshadowing the trial against the Rassemblement National that has just begun. Party leader Marine Le Pen and other party members are accused of having financed the party’s activities with EU funds. Read more about this in the News.
Have a relaxing day.
Your Claire Stam
Feature
EU organic regulation from 2025: industry sees organic supply chains at risk
In order for companies to be able to import organic food into the EU, corresponding requirements must be met in the respective countries of origin. While it was previously sufficient to apply the European organic standards “equivalently” in these so-called third countries, they are to be implemented there “consistently“ from next year. In this way, the EU Commission wants to ensure fair competition and protect consumers from being misled by organic products from non-EU countries. Companies and inspection bodies outside the EU must adapt accordingly.
In third countries that have not concluded any special trade agreements with the EU, but where producer groups wish to continue to certify their organic goods in accordance with current EU organic law, the following will apply in future:
Company size: maximum 2,000 members
Cultivation area: maximum five hectares
Turnover: maximum €25,000
simultaneous organic and conventional farming within a cooperative excluded
In the current EU Organic Regulation, the EU had added temporary transitional rules in order to give those affected in third countries even more time for the changeover. However, the transitional rule for the “equivalent inspection body standard” procedure expires at the end of the year. For farms, producer groups and inspection bodies in these countries outside the EU, this means that they must apply the new conformity procedures from January 1, 2025. However, thanks to a further transitional period that the EU Commission integrated into the EU Organic Regulation, they have until mid-October to carry out the necessary inspections and certifications.
Call for an extension of the transition period until the end of 2025
Jan Plagge, President of the European organic umbrella organization IFOAM Organics Europe, is not satisfied with this. “We don’t understand why the transition period is now being pushed into the middle of the inspection year,” he says. According to Plagge, the time for assessment is long gone after an eight-year phase of wrangling over the changes to the EU Organic Regulation. However, more time is needed for practicable implementation. He is therefore calling for the transition period to be extended until the end of 2025.
Time is running out to convert the systems, especially in third countries, he says. However, Plagge sees a “huge challenge” in the changes to the EU Organic Regulation, regardless of when they come into force. He identifies problems for tropical fruit producers in particular. The regulation was not written for them, he summarizes.
‘The EU is now saying, either you’re organic or you’re not’
Marcelo Crescenti is also very concerned about producers in the Global South. He is responsible for communications at the non-profit organization Fairtrade Germany, which awards the well-known seal of the same name. He considers it difficult to apply a good regulation such as the EU Organic Regulation, which is intended for Europe, to the Global South for development policy reasons. Crescenti believes that the aim is to support small farmers, but that the maximum turnover of €25,000 which the EU Organic Regulation will stipulate from next year, keeps them small.
Crescenti also predicts similar effects with regard to the other requirements that the innovations entail. For years, Fairtrade advised producers in the Global South to organize themselves into cooperatives. Today, Fairtrade only works with such cooperatives. However, most of these are not purely organic cooperatives, says Crescenti. Some farmers farm one hill organically and the other conventionally. “The EU now says you are either organic or not.”
Local support for those affected
However, Crescenti points out that it is a lengthy process for cooperatives and farmers to switch completely to organic farming. In view of the changes to the EU organic regulation, the cooperatives are now considering setting up sub-cooperatives with only organic producers. Some farmers would have to share their farms. “This works for large plantations, for large suppliers, but not for small farmers,” says Crescenti.
Fairtrade is currently in the process of reallocatingitsresources internally in order to build capacity at the producer network level, reports Crescenti. Fairtrade isalsodemanding resources from the EU. “The EU must look at how it can support those affected on the ground in order to create advisory services and set up programs.“
In his opinion, working towards a postponement makes little sense, says Crescenti. Rather, clear parameters are needed that make it clear what will apply in the future. “There are many producers who say that the EU is too complicated for them and that we should look towards the USA, Canada and Japan.” His forecast: “There will be a shortage, which means higher prices.” Someone will pay for it. “If the EU doesn’t pay, the consumer will pay.”
Consequences for consumers and producers
Arnd Liedtke from Tchibo, Germany’s largest coffee roasting company, also predicts consequences for consumers and producers. “We see the danger that this directive will overburden small producers, such as small cooperatives, in the countries of origin – without really achieving anything for the cause,” he says, assessing the upcoming changes to the EU Organic Regulation. For them as roasters, the sources of supplywould bereduced, which would mean less choice for customers. Liedtke also believes that small producers would lose their purchasing market.
Jan Plagge, President of the EU umbrella organization for the organic sector, also fears fewer imported organic goods in view of the new “conformity” procedure. Especially in countries that have focused on organic production for the EU, it will be difficult, he says. “If the producer groups with small farmers in the Global South do not manage to ensure consistent production methods, they will no longer be on the market and there will be a shortage,” predicts Plagge. At the same time, producers in the Global South could look for other markets – outside of Europe.
Europäische Kommission
Translation missing.
Global Gateway: This is the dilemma of the EU initiative
According to analysts, the EU still has some work to do on its Global Gateway (GG) infrastructure initiative strategy. With the start of the new EU cabinet, communication around GGneeds to become more transparent to realize its full potential and strengthen existing partnerships, especially in Africa.
This is the conclusion of a joint analysis published on Tuesday by Merics, the German Marshall Fund, the African think tank Nkafu Politics Institute and the British think tank Institute of Economic Affairs, published by the Friedrich Naumann Foundation. The paper has been made available to Table.Briefings in advance.
Africa was the continent with the most Global Gateway projects in 2024. The analysis notes that communication and perception of the EU infrastructure initiative in African countries remains a significant problem.
China certainly sees the EU as a competitor
Since its inception, GG has drawn comparisons with China’s Belt and Road Initiative (BRI) – not least because EU Commission President Ursula von der Leyen herself presented the initiative as an alternative to the BRI. The analysts write that the EU must clearly communicate its goals and the value of GG to avoid misunderstandings and create a positive image.
The analysis shows that there have so far been several problems with the initiative’s own positioning and external perception – not only in Africa, but also in China: The decline in mutual investment goals between the EU and the People’s Republic shows that Beijing perceives GG as a direct competitor to the Belt and Road Initiative (BRI).
This is why the Chinese side attempts to downplay the importance of the EU initiative and present GG as a complement to the BRI: “China has developed a narrative that presents GG as complementary to the BRI, while the EU should emphasize its competitive role more clearly,” the report states. It is “Europe’s responsibility to also correct the Chinese narrative and perception regarding European support for the Belt and Road Initiative and its synergy potential with GG.”
‘Don’t see Africa as a geopolitical chessboard’
The crux of the matter is that the competition narrative is less well received in Africa: The analysts write that the EU should avoid seeing Africa as a chessboard in competition with China. Instead, the focus should be on Africa’s actual development needs.
The report recommends several steps:
Engagement with African institutions: The EU should engage African financial institutions more closely to improve project implementation and utilize local expertise.
Recognizing diverse values: The EU must recognize that African countries have different values and needs. A more flexible strategy could help deepen relations.
Evaluation and transparency: The report highlights the importance of developing systems that accurately track the progress and impact of GG projects to properly visualize successes to the outside world.
However, the analysts take a realistic view of the success potential: “Some of the EU’s implementation difficulties with GG are related to the simple fact that many recipient countries have no interest in fulfilling the basic EU criteria within the framework of GG” the paper states. This applies, in particular, to requirements relating to transparency and democratic standards. “A faster provision of BRI loans with fewer governance criteria will continue to be more appealing to many.”
The Global Gateway brand should not be used ‘inflationarily’
The paper argues that the complexity of EU decision-making processes and financing problems generally reduce GG’s competitiveness. As a result, Chinese analysts are often skeptical about the initiative’s effectiveness. The paper found that the Chinese media often view the GG narrative through the lens of strategic competition between the US and China, leading to skepticism regarding the EU’s geopolitical motives.
The analysts add further points to the to-do list of the designated EU Commissioner for International Partnerships, Jozef Síkela, who will be responsible for GG. Among them: The “indiscriminate use of the ‘Global Gateway’ brand” must be abandoned. It is “inflationary” to simply bundle all types of development aid projects under GG, the analysts criticize – “possibly in order to reach the global mobilization sum of 300 billion euros by 2027.” In this way, GG loses credibility, they say.
Africa
Geopolitics
global gateway
Infrastructure
Trade
Ursula von der Leyen
News
Trade dispute: EU states decide over tariffs on Chinese EVs
The EU Commission’s planned special tariffs on EVs from China will be voted on this Friday. However, according to Reuters, the Commission intends to continue negotiations with China even after the vote. The Commission sent its proposal for definitive tariffs on Chinese EVs to the 27 EU member states and advocated the rates it calculated in September.
At the same time, it included an additional text called a recital stating that talks so far with China had not resolved the dispute over alleged Chinese subsidies, but that negotiations on a possible compromise could continue even if EU countries agree to the tariff rates.
Commission will continue negotiations
During a debate in the European Parliament’s Trade Committee, Martin Lukas, Director for Trade Defense in the Commission’s Directorate-General for Trade, confirmed that the EU Commission will continue to negotiate. The deadline for the end of the investigation of October 30 will be met, but the Commission can still negotiate price commitments with China after that date, he added.
The Chinese Ministry of Commerce announced last Thursday that it was negotiating a flexible pricing system to avert the tariffs. The Commission has said it could re-examine a price undertaking – involving a minimum import price and typically a volume cap – having previously rejected those offered by Chinese companies. The proposed tariffs vary from 7.8 percent for Tesla, opens new tab EVs built in China to 35.3 percent for those of SAIC, opens new tab and other companies deemed not to have cooperated with the Commission’s investigation. They are on top of the EU’s standard 10 percent car import duty.
EU members are due to vote on Friday on whether to back final or “definitive” tariffs for the next five years. They would be imposed unless a qualified majority of 15 EU countries representing 65 percent of the EU’s population voted against. rtr/jaa
Car Industry
Duties
E-cars
EU
Europäisches Parlament
European policy
Germany
Handel
Hydrogen bank: China reservation also applies to member states
The EU Commission’s new course against imports of Chinese electrolyzers will also affect the Member States’ funding policy for the production of green hydrogen. A spokesperson for Energy Commissioner Kadri Simson clarified this on Monday at the request of Table.Briefings: “With regard to the hydrogen bank auctions, the same conditions apply to EU tenders as for auctions-as-a-service.“
The Commission published the new funding conditions for the European Hydrogen Bank at the end of last week. In future, restrictions will apply to central components of Chinese electrolyzers for projects that are awarded funding. However, EU countries can also use the mechanism of the European Hydrogen Bank for their own imports, which they support with national budget funds – so-called auctions-as-a-service. In the first round, Germany announced it would make use of this option and provide €350 million.
Austria would be the first affected EU country
However, the new rules only apply to the second round of tenders. In February, Austria’s Green Energy Minister Leonore Gewessler announced that she would make €400 million available for such an auction via the European Hydrogen Bank. If the future government in Vienna sticks to the plan, Austria would be the first EU country to have to defend an import restriction on the key future technology of electrolysis against China.
A new study by the Boston Consulting Group, to be published on Wednesday, illustrates just how narrow Europe’s technological lead in electrolyzers has become. In just three to five years, foreign suppliers could surpass European suppliers in terms of cost, quality and performance, according to the study, a draft of which is available to Table.Briefings. It was first reported on by Handelsblatt. ber
Grüner Wasserstoff
EU enlargement: consultations with Western Balkan states in Berlin
Against the backdrop of ongoing tensions between Serbia and Kosovo, Foreign Minister Annalena Baerbock (Greens) is meeting with the foreign ministers of the six Western Balkan states this Tuesday to discuss prospects for further rapprochement with the EU. The focus of the talks at the Federal Foreign Office in Berlin is likely to be the activation of the regional free trade agreement Cefta (Central European Free Trade Agreement), which aims to dismantle trade barriers.
Until now, the implementation of the agreement has been blocked due to a dispute over status issues between Kosovo and Serbia. Until recently, it was unclear whether Kosovo would agree to a Cefta agreement and whether a settlement without Kosovo could be reached if necessary in the event of a further blockade. The Cefta states include Albania, Bosnia and Herzegovina, Kosovo, Moldova, Montenegro, North Macedonia and Serbia.
The meeting in the format of the Berlin Process is seen as preparation for a corresponding summit of heads of state and government on October 14 in Berlin. The Berlin Process, initiated by former Chancellor Angela Merkel in 2014, aims to bring the six countries closer to EU standards, norms and practices. The Western Balkan states include Albania, Bosnia-Herzegovina, Kosovo, North Macedonia, Montenegro and Serbia. The EU is already negotiating accession with Serbia, North Macedonia, Montenegro and Albania. Bosnia-Herzegovina is considered a candidate country, Kosovo a potential candidate country. dpa
EU-Erweiterung
Disinformation: Baerbock calls for tougher stance from new EU Commission
Annalena Baerbock has called on the new EU Commission to take stronger action against disinformation on social networks. “If you have algorithms that deliberately spread not only fake news, but also hatred and agitation, (…) then that is a disruption of our democratic reality,” said the Federal Foreign Minister at a Green Party conference in Berlin on Monday. As an example, she cited recruitment videos of Islamist terrorists, which young people see in their feeds as soon as they click on such a video.
Baerbock believes it is the EU Commission’s turn: “If we don’t regulate this, just as we have regulation in normal life, then we will be helplessly at the mercy of this fake news.” In her political guidelines, Commission President Ursula von der Leyen has announced a proposal for a “European Democracy Shield“, which would be modeled on the French observatory for digital influence from abroad (Viginum). The Commissioner-designate for Justice, Michael McGrath, will lead the work on this. tho
Digital Services Act
Embezzlement of EU funds: trial against Le Pen begins
The trial against Marine Le Pen and other French right-wing nationalists has begun at a criminal court in Paris. The 28 defendants are accused of embezzling public funds. The central accusation is that Le Pen’s party received money for parliamentary assistants from the European Parliament, who would have actually worked partly or entirely for the party.
The allegations relate to the years 2004 to 2016 and are directed against the Rassemblement National party (formerly: Front National), former MPs and assistants. It concerns the possible fictitious employment of assistants to several French MEPs. In total, a sum of almost €7 million is said to be involved.
Even before the trial began, Marine Le Pen rejected the allegations. “We have not broken any political rule or any rule of the European Parliament,” said the long-time party leader when she arrived at court. A year ago, Le Pen had already transferred €330,000 reclaimed from the European Parliament. However, her party emphasized that this was not an admission of wrongdoing.
Process could have an impact on the 2027 election
In addition to Marine Le Pen, her father and party founder Jean-Marie Le Pen (96) is also among the accused. However, he did not appear in court for health reasons, as did another defendant.
The fact that Le Pen and other party leaders now have to sit in the dock runs counter to efforts to normalize the party. In the new parliament, the right-wing nationalists – unlike the left-wing alliance – have recently tried to work constructively and cautiously in opposition.
The trial is scheduled to run until the end of November. If found guilty, the defendants could face heavy fines and prison sentences of up to ten years. If convicted, the defendants could also be declared ineligible for five years, which could put the brakes on Marine Le Pen’s candidacy in the 2027 presidential election. dpa
Europäisches Parlament
Frankreich
CAP audit report: what stands in the way of more environmental and climate protection
The national CAP strategy plans fall short of the EU’s environmental and climate targets. This is the conclusion of the EU Court of Auditors in a new report. The plans are “not much more environmentally ambitious” than the Common Agricultural Policy before the latest reform came into force, which was supposed to make EU agricultural funds significantly “greener.”
The auditors attribute this to several problems:
Member States hardly use their newly created freedom in implementing the CAP to raise environmental ambitions. They exhaust exemptions and often do not go beyond the practices that the majority of farms already implement in terms of organic regulations.
The EU Commission’s approval process lacked measurable indicators for the ecological ambition level of the plans.
The EU legal acts on the CAP do not specify any quantifiable climate and environmental targets; the Green Deal targets are not laid down there. The Commission could only appeal to the EU countries to implement these in the plans – often without success.
For the upcoming CAP reform, the Court of Auditors therefore recommends setting measurableenvironmental and climate targets and specifying how these are to be applied when auditing national plans. Furthermore, Brussels should measure and review results rather than measures.
Despite its criticism of the EU countries’ lack of ambition, it is not calling for control over the CAP to be concentrated more strongly in Brussels again. Such a conclusion cannot be drawn so soon after the current CAP came into force, says the responsible auditor Nikolaos Milionis upon request.
Feindt: renewed centralization in Brussels ‘not expedient’
“In our experience, a renewed centralization of environmental and climate targets at EU level is notexpedient,” says Peter Feindt, Professor of Agricultural and Food Policy in Berlin. This is because more flexibility would at least let the member states the option of using EU funds more ambitiously instead of agreeing on the lowest common denominator.
Nevertheless, he is not overly optimistic about the future of the CAP: as long as national implementation takes place within the framework of traditional agricultural policy structures, a fundamental reorientation is not to be expected. jd
GAP
Green claims: Study questions effectiveness of EU proposal
Although the Green Claims Directive is supposed to put an end to misleading climate advertising, the Commission’s proposal would still allow labels that distort consumer perceptions. This is the result of a scientific study published in the journal “Food Quality and Preference”. According to the study, labels with the inscription “climate neutral” lead consumers to believe that food is significantly more climate-friendly than it actually is.
According to the researchers, this is also the case if it is made clear that a product is only climate-neutral through CO2 offsetting. For example, by using labels such as “100 percent CO2-compensated”, as envisaged in the Commission’s proposal on green claims for such cases. “Such labels therefore promote greenwashing, make market transparency more difficult and offer consumers no guidance for sustainable nutrition”, criticizes lead author Denise Dreist from the University of Göttingen.
Traffic light label is the most effective option
The study identifies a traffic light system similar to the Nutri-Score as a more effective alternative. This would allow consumers to assess the climate impact of food more accurately. Study leader Anke Zühlsdorf advises making traffic light labeling mandatory. This would make it easier to compare products and not only highlight climate-friendly products. However, a first step could be a ban on product-related advertising with climate neutrality.
For the study, test subjects from Germanywere asked to assess the climate impact of various food products. The authors compared how the assessment differed depending on which climate label the respective product carried.
While the EU Council of Environment Ministersand the Commission are in favor of companies being able to continue to claim CO2 offsets for climate labels, the European Parliament only wants to allow this in exceptional cases so that the focus is on reducing emissions. The trilogue negotiations, in which the Council and Parliament must agree on a version, are expected to start at the beginning of next year. jd
Food
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Heads
Stefan Köhler: lateral entrant in the EU Committee on Agriculture
Stefan Köhler has been a Member of Parliament since the 2024 European elections and remains the farmer president of Lower Franconia.
It is his first political office: Stefan Köhler has been a member of the European Parliament for the CSU since the European elections at the beginning of June, where he is a member of the Agriculture and Environment Committees. After it became clear that former CSU MEP and agricultural politician Marlene Mortler would not be standing again, the party approached him, he explains: “I was asked to contribute my agricultural expertise to the CSU – a unique opportunity for a career changer like me.”
The farmer from Aschaffenburg already has experience in the Brussels agricultural bubble – through his position as President of the Lower Franconia Farmers’ Association. “I’ve been to Brussels several times through the DBV, for example, to discuss the wolf or the SUR [Sustainable Use Regulation] on pesticides,” says Köhler.
Köhler wants to remain DBV regional president
Köhler wants to continue in hisrole as the head of the regional association of the German Farmers’ Union (DBV) as an MEP, at least part-time. He does not see this as a conflict of interest, but rather as an advantage: “In order to shape agricultural policy sensibly, you need someone with practical experience – and who better than a farmer?”
Köhler has also been active in various committees relating to nature conservation, including the Bavarian Nature Conservation Fund Foundation Board, the Presidium of the Academy for Nature Conservation and Landscape Management and the DBV Environmental Committee. “I believe that agriculture and environmental protection can be brought together, but it has to be done with moderation and purpose,” he says.
Appeal for more flexibility
For example, by creating incentives instead of imposing requirements. “Instead of imposing a blanket ban on pesticides in protected landscape areas, for example, farmers should be given the option of reducing pesticides in the way that is best for them,” he explains. For example, through rewarding the cultivation of crops that require fewer pesticides.
Such an approach would be more flexible, easier for farms to plan and would meet with much greater acceptance, argues Köhler. Bans that would make it “practically impossible to run a farm” would be avoided.
Köhler thinks GAP loosening is right
This also applies to the Common Agricultural Policy (CAP), which Köhler also believes should be more incentive-based. “We should use premiums to encourage farmers to do more for nature conservation, climate protection and biodiversity,” he says. This requires a strong agricultural budget. The Agriculture Strategy Dialogue has also proposed something similar.
Meanwhile, Köhler does not see a rollback of sustainability standards in the relaxation of CAP environmental rules adopted at the beginning of the year. “Areas will continue to be set aside,” he argues. “Only instead coercion through financial incentives, such as those offered by Germany through the eco-regulations.” However, Köhler also concedes that the abolition of compulsory fallow land (GAEC 8) is likely to result in less land being set aside than the previous minimum of four percent. JuliaDahm
