Table.Briefing: Europe

Fit for enlargement + China’s de-risking + EU official languages

Dear reader,

How can the EU grow, possibly to more than 30 members, and remain capable of acting? This discussion could be more lively in the future than it has been so far. Commission President Ursula von der Leyen and the European Parliament are pushing for it, and a new expert report provides arguments for reform – and ideas on how even reluctant member states can be involved. Till Hoppe gives an overview of the current state of the debate.

It wasn’t European business that started the de-risking, he claims: “China was the original de-risker.” So says Jens Eskelund, president of the EU Chamber of Commerce in China. Today he is presenting the business representative body’s position paper in Beijing, which draws a grim conclusion: The will to cooperate with European business has reached a new low, he says. Finn Mayer-Kuckuk reports.

Read why Spain failed in its attempt to introduce Catalan, Basque and Galician as new official EU languages in the News. For Dessert, Markus Grabitz takes a look at an evaluation that claims to have determined who the worst German MEP is. A word of warning: What he finds has little to do with a real study.

Your
Sarah Schaefer
Image of Sarah  Schaefer

Feature

Discussion on EU reform picks up speed

Does the European Union need far-reaching reforms to be able to admit further member states? The debate, which has so far been conducted rather sporadically to reluctantly by governments, is likely to pick up speed in the coming weeks. This is because a number of players are pushing for it, from Commission President Ursula von der Leyen and the European Parliament to German Foreign Minister Annalena Baerbock and her Minister of State for Europe, Anna Lührmann.

“We now have the opportunity to decisively advance the debate on EU enlargement and reform,” Lührmann told Table.Media. “We must seize this historic opportunity.”

In January, Lührmann and her French colleague Laurence Boone had commissioned a group of twelve experts from the two countries to draw up joint reform proposals. At the General Council on Tuesday, they presented the report, which had already become public the day before. The discussion at the luncheon, however, showed how controversial the topic still is: “The positions of the member states are still far apart,” reported the Spanish Secretary of State for Europe, Pascual Ignacio Navarro Ríos. But it was important to initiate the debate, he said.

Enlargement drives reform discussion

There are some indications that the discussion will not die down any time soon – even if that would be fine with some governments, especially in Central and Eastern Europe. In October, the EU Commission will present a report in which it will assess the progress made by the accession candidates. In December, the heads of state and government will then decide whether to start concrete negotiations with Ukraine and Moldova.

The more concrete the prospect of EU enlargement to possibly more than 30 members becomes, the more pressing the questions of how the Community’s ability to act can be guaranteed.

Last week, von der Leyen called in her SOTEU speech for “us to think about how we can prepare for a fully-fledged Union”. Chancellor Olaf Scholz and President Emmanuel Macron have also tied the admission of new member states to reforms in the fabric of the EU. So far, however, Scholz and von der Leyen have tended to rely on gentle pressure – in view of the reservations in many member states about a lengthy reform of the EU treaties in particular, they are avoiding an open confrontation.

European Parliament exerts pressure

The European Parliament is different: MEPs want to force the member states to face up to the discussion. In November, they will vote in plenary on a cross-group report by the Committee on Constitutional Affairs that calls for comprehensive reforms and the convening of a convention. The Council must then deal with the initiative. A simple majority of member states would be enough to pave the way for the convening of a convention, which in turn could formulate reform proposals. Green MEP Daniel Freund, one of the report’s authors, sees a positive dynamic: “The group of states that are open to it is growing.”

In the German government, the Greens in particular are pushing the issue: Baerbock and Lührmann are organizing a high-level European conference at the beginning of November at which they will discuss enlargement and the need for reform with their colleagues from other EU countries.

Experts recommend contract reform

The report of the Franco-German expert group is to provide a basis for this. Boone made it clear, however, that this was not a proposal by the two governments. Lührmann spoke of “partly ambitious, partly pragmatic proposals”. Some of them could be implemented without treaty changes, such as extending qualified majority voting in foreign policy or tax policy.

However, the twelve experts from France and Germany also make it clear in their report that they believe amending the treaties is the best way forward – “for reasons of democratic legitimacy, transparency, coherence and level of ambition”. However, the hurdles to this are very high: treaty change requires “double unanimity”, both in the European Council and for ratification in the member states, whether in national parliaments or by referendum. But there is no consensus in sight, at least not as long as national conservative governments are in power in Poland and Hungary, which strictly reject deeper integration.

Package deal as a way out?

The twelve experts are therefore discussing possible ways out. For example, the amendments to the Lisbon Treaty could be linked to a treaty on EU enlargement, thus creating room for a package deal: Eastern European member states are the loudest advocates of admitting Ukraine, Moldova and the Western Balkan states.

In addition, as in the past, countries could decide not to go along with an integration step in individual policy areas (opt-out). Should the 27 still not reach an agreement, the countries that are particularly keen on integration could go ahead and record their cooperation in a separate treaty. But they warn that this would further increase the complexity of EU law.

EU Chamber: China is a pioneer in de-risking

For the first time, Denmark’s Jens Eskelund, who succeeded Joerg Wuttke as President of the EU Chamber of Commerce in China, will present the business representation’s position paper in Beijing today, Wednesday. The annual report packs a punch this year: For the first time, there are more than 1,000 “recommendations,” as the chamber calls its complaints about market conditions in China.

The chamber represents 1,700 companies doing business in China. “After the turbulent past three years, many have reevaluated their basic assumptions about the Chinese market,” Eskelund says. Predictability and trustworthiness have eroded.

Deep uncertainty since Corona

As a result, many companies are diversifying their supply chains to reduce China dependence, Eskelund observes. But it wasn’t European business that started the de-risking, he says: “China was the original de-risker.” He says the country has long talked about economic self-reliance and sought it in practical policy. The chamber has long complained about the resulting market barriers.

The uncertainty runs deep. “What relationship does China seek with international companies?“. This question is at the top of the list of questions, according to Eskelund. He believes it is now essential for China to regain the trust of companies. Not only has the EU economy been instrumental in lifting China to the level of technology it enjoys today, he said. Today, European investments in China are declining. Regardless, the EU economy is still available as a partner for further development.

Fewer interventions required

The Chamber draws the following recommendations for the Chinese leadership from this situation:

  • Allowing more market forces: Some industries remain firmly in the hands of Chinese state-owned enterprises. Strengthening the private sector would also be in line with the leadership’s proclamations.
  • De-politicization of business life: Vague laws facilitate bureaucratic intervention almost everywhere. Companies feel exposed to arbitrariness. The Law on Foreign Relations and the Anti-Espionage Law raise new concerns. They join the cybersecurity law and the data protection law.
  • Giving more voice: The Chamber hopes to be more involved again in the future when relevant laws and regulations are being drafted.
  • Stimulating private consumption.
  • Taking climate action seriously.

Transparency continues to decrease

The position paper focuses, in particular, on transparency issues. For example, current economic data is hardly available at present. “We need to be able to understand the fundamentals of this country,” Eskelund says. But the government currently even has statements from economists and bloggers on the economic situation suppressed.

Another issue is the incompatibility between China’s and the EU’s demands on companies. The EU expects progressively high ethical standards along the supply chain. China, on the other hand, refuses any audits in regions such as Xinjiang. Companies thus find themselves caught between the fronts.

News

Azerbaijan attacks Nagorno-Karabakh

Azerbaijan launched a major attack on several towns in the disputed region of Nagorno-Karabakh on Tuesday. According to the Azerbaijani Defense Ministry, it was a “counter-terrorist operation”. The aim was to “ensure the disarmament and withdrawal of formations of the Armenian armed forces from our territories and neutralize their military infrastructure”.

The government in Baku sees the conflict region as a “domestic matter” and justifies the deployment by claiming that Armenia has illegally stationed around 10,000 soldiers there. This violates the cease-fire agreement concluded in 2020 under Russian mediation. Armenia’s Defense Ministry said it had no military personnel or equipment in Nagorno-Karabakh, but had withdrawn troops in 2021. The self-governing Republic of Arzakh (Nagorno-Karabakh) has a self-defense army of about 10,000 troops.

Civilians apparently under fire

Azerbaijani soldiers had fired missiles at the region around the capital Stepanakert in the morning. The Azerbaijani Defense Ministry wrote in the statement that high-precision weapons would only be used against legitimate military targets, not civilians.

However, videos show that residential houses and neighborhoods were also hit. According to the Nagorno-Karabakh Foreign Ministry, 80 people, including children, were injured and five people were killed. The authenticity of the videos cannot be determined independently, and the information on those injured and killed also differs greatly in some cases.

Pressure on the ethnic Armenians living there

Armenia and Azerbaijan have been fighting over Nagorno-Karabakh for decades. The enclave declared independence in 1991 but is part of Azerbaijan under international law. Azerbaijan’s President Ilham Aliyev claims the territory for himself, and in recent months has increased pressure on the 120,000 ethnic Armenians living there to either take Azerbaijani citizenship or leave.

According to the government in Baku, humanitarian corridors have been set up to enable the population of Nagorno-Karabakh to be “evacuated” from the region. It is assumed by the Armenian side that it will hardly be possible for the population to return afterwards. Towards evening, according to the Russian news agency Tass, the artillery fire is said to have subsided “as the objectives of the offensive have almost been achieved”. klm

Rejection of Spain: no new official languages

Spain has been handed a snub. The country, which currently holds the EU Presidency, failed in its attempt to introduce three new official languages in one fell swoop. Catalan, Basque and Galician will not be recognized in the EU for the time being, it was announced on the fringes of a meeting of European ministers. However, discussions are to continue within the EU.

In justifying the (provisional) no, diplomats pointed to the costs and the administrative burden. Including Catalan, Basque and Galician in the list of official and working languages would mean that all EU regulations and other official documents would have to be translated into these three languages in the future.

24 Official and working languages

The EU is already reaching its limits with 24 official and working languages. Most official documents are now produced only in English; translation then often takes hours, if not days. Some texts on the EU Commission’s website are now only translated into German on request – by an artificial intelligence, i.e. by machine.

Spain had offered to bear the costs itself. But many countries had reservations – including Germany. Minister of State for Europe Anna Lührmann (Greens) justified this with unresolved questions about legal and financial implications. Other countries fear that recognition of the Spanish regional languages could revive their own old language conflicts.

Anger over Council Presidency

The fact that the Spanish EU Council Presidency had put the issue at the top of the agenda caused annoyance. There are definitely more important topics, said one diplomat. On Tuesday, for example, the European ministers wanted to deal with the migration crisis on Lampedusa and prepare for the EU summit in October. The Spanish initiative probably had more to do with domestic policy, it was said.

An inclusion of Catalan, Basque and Galician in the list of official and working languages can only be decided unanimously. However, a consensus has not yet emerged. ebo

Switzerland: Horizon deal before the European elections?

Now that Great Britain is rejoining Horizon Europe via an association, all eyes are turning towards Bern. There, Switzerland’s isolation is now even more palpable as a result of the deal with the British. Michael Schaepmann, rector of the University of Zurich, fears negative consequences for the country: “The British will now focus on participation in Horizon Europe projects, where Switzerland is largely excluded altogether. This leaves us isolated and alone again”, he told SRF.

The goal is ‘rapid deblocking’

The Federal Department of Foreign Affairs (FDFA) stresses to Table.Media that a “rapid de-blocking of Switzerland’s participation in ongoing EU programs such as Horizon Europe and Erasmus+” is the goal. This is the subject of ongoing talks with the European Commission, he said.

At least part of the science community hopes that the British-European deal will also increase pressure on the Swiss government to negotiate an agreement. The president of the ETH Board, Michael Hengartner, sees a possible window of opportunity for an agreement before next year’s European elections after the Swiss parliamentary elections in October. Apparently, he said, many details have also already been discussed, and they are very close, so a final deal could be reached quickly. “If that were the case, we could get going at the push of a button after the election”, Hengartner says. He then expects politicians to get to work quickly and proactively.

Science and business keep up the pressure

And the FDFA also confirms: “If talks with the EU and internal work continue to progress well, the Federal Council will prepare to adopt a negotiating mandate by the end of the year.” Both academia and industry now want to keep the pressure up. Probably also because it is not clear whether Commission President Ursula von der Leyen will continue after the elections in Brussels. She is considered a strong supporter of an agreement with Switzerland.

The previous negotiations had been broken off in May 2021 also because the European Commission considers Switzerland’s association to EU programs such as Horizon Europe in light of the overall relationship. “The Federal Council rejects this political linkage”, the FDFA informs. The EU wants to avoid cherrypicking with this stance. And thus disagreements, especially in the area of the free movement of persons, block the negotiations. “These are just geopolitical and not science policy discussions – we are only one piece of the puzzle”, Hengartner says.

Since the No in 2021 from Bern, Switzerland is considered a non-associated third country and no longer has full access to Horizon Europe. Currently, the Federal Council is compensating for the missing EU money. What this means for research is that you can still participate in Horizon projects, but no longer in a leading role and with a lot of red tape. The prestigious ERC grants, on the other hand, remain completely closed to the Swiss. mw

EPP hopes for a new start in agricultural policy

EPP leader Manfred Weber hopes for a new beginning in agricultural policy after Frans Timmermans, who was responsible for the Green Deal, left the Commission. Speaking at the Christian Democratic party family’s European Farmers’ Deal conference with 800 participants in Brussels, Weber said: “Since Timmermans’ departure, the possibility of rethinking agricultural policy is tangible.”

The atmosphere of talks between the Parliament and the Commission has changed noticeably, he said. “Now it’s a matter of finding long-term solutions in the open legislative procedures.”

Pesticide regulation within reach

Vice Commission President Maroš Šefčovič is to take over the Green Deal from Timmermans at the beginning of October. The EPP expects the Commission to send signals, for example, on the controversial pesticide regulation SUR. According to the EPP, this would be necessary, among other things, in the definition of protected areas, in which the use of pesticides should be completely prohibited.

Herbert Dorfmann, EPP coordinator for agriculture, said: “We are working purposefully in the committee towards a compromise.” It depends on the result whether the EPP will vote in favor of the pesticide regulation in committee and in plenary.

Norbert Lins, head of the Agriculture Committee, said with regard to Ukraine’s possible accession to the EU: “Ukraine is a country with a very competitive agricultural sector. Moreover, huge areas of land are at stake. It is already becoming apparent that integration into the CAP will be a major challenge.” mgr

  • European Commission

Legal Affairs Committee clears way for Hoekstra hearing

Members of the EU Parliament’s Legal Affairs Committee (JURI) on Tuesday looked into possible conflicts of interest for climate commissioner-designate Wopke Hoekstra. MEPs decided in camera that there were no conflicts of interest for him to carry out his role as chief negotiator for international climate policy . They thus cleared the way for Hoekstra’s hearing in the Environment Committee on Oct. 2.

In addition to criticism of his lack of expertise in the field of climate policy, Hoekstra’s activities at the Dutch oil company Shell in particular are causing doubts about the nomination. The current foreign minister of the Netherlands was also a consultant at McKinsey and later became finance minister of the Netherlands. At the UN Climate Change Conference in Dubai in December (COP28), he is now expected to take over Frans Timmermans’ previous role as Europe’s top climate diplomat. luk

CO2 fleet targets for trucks: Transport Committee wants to lower ambition level

The EU Parliament’s Transport Committee (TRAN) voted on Tuesday on its opinion on CO2 fleet limits for heavy-duty vehicles. MEPs voted to allow manufacturers to count the use of fuels deemed CO2-neutral under the Renewable Energy Directive (RED) as emission savings for their truck fleets. In addition to synthetic e-fuels, this would also include biofuels based on palm oil, soy or rapeseed. The Commission had still ruled this out.

In its proposal, the Commission also estimates a CO2 reduction for heavy-duty vehicles of 90 percent by 2040 compared to 2019 levels. In its opinion, TRAN has now agreed to 75 percent – a significant reduction in ambition, as environmentalists had called for 100 percent as for passenger cars.

ENVI is in charge

EU transport policymakers also cut back on the interim targets. The Commission proposed 45 percent from 2030 and 65 percent from 2035. The Transport Committee settled on 30 percent from 2030 and 50 percent from 2035.

However, the Environment Committee (ENVI) is in charge of the dossier. This committee will vote on its position in the coming weeks. There, the opinion of TRAN will probably be submitted as an amendment, but is not authoritative for the ENVI members. On Nov. 20, the plenary is to vote on the negotiating position of the Parliament before the trilogue. The General Approach of the Member States is also still under negotiation. luk

Short-term rentals: Parliament sharpens up on landlord data

The Internal Market Committee (IMCO) has set out the European Parliament’s position on short-term rentals of properties – such as vacation homes. The intention is to oblige platforms such as Airbnb, 9flats or Vrbo to provide the competent authorities with more precise data on the properties.

The parliamentarians adopted the compromise proposals of the Dutch rapporteur Kim van Sparrentak (GroenLinks/Greens) with a very large majority. These mainly contain some clarifications compared to the Commission’s draft.

For example, the parliamentarians want to specify which data landlords must provide. If an official rental permit is required in a region, as stipulated in Article 4 No. 6 of the Services Directive, landlords must provide it. In addition, member states are to be allowed to collect further data on landlords beyond this information. This may be the case, for example, for services associated with the rental.

Registration number must be clearly recognizable

The parliamentarians want the providers to be primarily responsible for collecting the data. However, the platforms through which short-term rentals regularly take place should ensure “reliable and complete” information with their own design. This includes clearly displaying the provider’s registration number, which is mandatory in some regions. Here, the platforms are to regularly check whether the number corresponds to the information.

In the case of multiple registrations, these landlords are to be actively reported to the relevant authorities. Short-term rental platforms are also to “make every possible effort to verify whether a unit intended for rental is located in an area where a registration has been introduced”.

Across Europe, municipalities complain that unregistered providers are circumventing tourist taxes, bed taxes or taxes due in general. The Council had already agreed on its position in March. fst

Survey: Consumers dissatisfied with digital protection

BEUC, the European umbrella organization of consumer protection organizations, is calling on the EU Commission to make significant improvements to EU consumer protection law. With the results of a survey, the association wants to highlight deficits in digital consumer protection.

For the consumer association, this involves fundamental questions: 50 percent of those surveyed, for example, feel that the currently common tracking for advertising purposes on the web is unfair practice, while 31 percent have no opinion of their own on this. When asked whether the analysis of personal data and the corresponding monetization – for example through apps or websites – is okay, 60 percent of the EU citizens surveyed disagree with the current reality. BEUC therefore calls for tracking-free variants – for example in the form of contextual advertising. Privacy should not have to be paid for, the association warns.

Some features of new, so-called smart devices are a particular annoyance for consumers and thus also for the consumer association. According to the survey, 76 percent of consumers would like to be able to decide for themselves what data they send and where. 77 percent also want to have the option of sending the devices completely offline, at least temporarily. However, this option is currently being omitted from some end devices, such as robot vacuum cleaners. Once in WiFi, there is no option to deactivate it again, BEUC explains. This issue has not yet played a role in the discussion about the Cyber Resilience Act, for example.

More control for influencers

Consumers and the association are also calling for better consumer protection on a third point: Influencers on social media platforms should be regulated more strictly. Here, European regulation is largely going nowhere, BEUC argues. 44 percent of respondents who have seen influencers on social media believe that they would have perceived advertising for dangerous products or possible scams while doing so. Three-quarters of consumers think the platforms should be jointly responsible for influencer content.

As good as digitalization is for consumers, there are relevant downsides, says Ursula Pachl, BEUC Deputy Director General, which the survey now highlights. For the consumer survey, which the umbrella organization says is representative, almost 5,000 adults in a total of eight EU member states were asked for their opinion in the spring. fst

  • CRA

Heads

Niclas Kvarnström – new Asia director at EEAS

Niclas Kvarnström will help shape the EU’s China policy as the new director of the EEAS Asia department.

Niclas Kvarnström succeeds Gunnar Wiegand as the new director of the Asia Department of the European External Action Service (EEAS). This is not an easy job. Wiegand had helped shape the European Union’s policy for the region for over 30 years. His successor, Niclas Kvarnström, however, comes with the diplomatic skills necessary to fill Wiegand’s role – and give EU policy an even stronger Indo-Pacific flavor.

The native Swede has been the head of the Asia-Pacific department in his home country’s foreign ministry since August 2021 and is thus already in the thick of the issue. At a Sinopsis event in Prague last October, he stressed that the Russian war of aggression against Ukraine had highlighted the importance of bridges and partnerships in the region. The EU should not be underestimated when it comes to the Indo-Pacific, Kvarnström said. With these statements, he follows a similar line as his predecessor Wiegand, who consistently insisted on a self-confident EU and closer relations with the Indo-Pacific states.

Kvarnström has also already gained experience with EU operations. During the Swedish EU presidency in the first half of the year, he played a key role in organizing a ministerial meeting with European and Asian representatives. This is one of the ways in which Kvarnström has already built up a standing with the foreign ministers of the Indo-Pacific states.

Chinese studies in Oxford and Taiwan

He already acquired his deep expertise for the region during his education: After attending an international school in the UK, he studied Chinese at Oxford University from 1993 to 1997. As part of his studies, he spent a semester at Taiwan Normal University attending language courses. At Oxford, he chose an economics focus, and wrote his thesis on China’s financial markets.

He then worked for Goldman Sachs as a banker in London and New York for three years before joining the Swedish diplomatic service. After receiving diplomatic training, he spent a year at the China desk of the Swedish Foreign Office. “As diplomats we are generalists, and I have worked with EU, Eastern European, Asian and UN issues during my career. My first foreign posting was at the Swedish Embassy in Beijing, a great city where my Chinese improved quite a bit,” Kvarnström writes in a post on his former school’s website.

Swedish Ambassador to Singapore until 2021

After his stay in Beijing, he held various positions for the Swedish Ministry of Foreign Affairs, including the office of the director general for political affairs in the EU department, where he was involved in the preparation of the EU meetings of foreign ministers.

Kvarnström went on to work for four years as a political advisor to the Swedish Mission to the United Nations in New York before becoming deputy director of the department for Eastern Europe and Central Asia at the Ministry of Foreign Affairs in 2012. After a brief stint at the Wallenberg Foundation, Kvarnström returned to the diplomatic service in 2016 to become head of the department for Eastern Europe and Asia.

Deployment before EU-China summit

In 2018, Kvarnström finally became Sweden’s ambassador to Singapore: “a wonderful post from which to observe dynamic, growing Asia.” In a video message marking the end of his post, Kvarnström called security developments in the region “very dynamic.” He remained loyal to the region – returning to Stockholm in 2021 to take up the post as head of the Asia-Pacific Department.

For his new position, Kvarnström will now move to the Belgian capital and EU headquarters with his wife and four children. It is not yet clear when exactly his assignment at the EEAS will begin. However, it is very likely that he will take up the post before the planned EU-China summit. Amelie Richter

Executive Moves

StÄV with new head of agriculture unit

Winfried Schröder moves from the Brussels Representation of Baden-Württemberg to the Permanent Representation. He will become Head of the Agriculture Unit at the German EU Embassy. For the last few years, Schröder was the head of the Brussels office of Minister President Winfried Kretschmann (Greens) at the State Representation of Baden-Württemberg.

Is something changing in your organization? Why not send a note for our staff section to heads@table.media!

Dessert

Something wicked

Europäische Kommission EU Parlament Straßburg Von der Leyen

The alleged “study” was received by email by all German MEPs. Its title was simply: “Who is the worst German MEP?” That in itself already sounds a little strange. The author of the “study” explains the motivation for his project right at the beginning. The aim is “to ensure that no more lazy politicians are sent to Brussels”. But there is a lot wrong with the “study” itself.

The criteria used by the study to measure whether an MEP is bad or good are not exactly scientific, to put it nicely: on the one hand, it is about legislative output (rapporteurs, shadow rapporteurs, motions for resolutions, questions), and on the other hand about media presence.

Despite all the identification with one’s own profession, the fact that someone’s name is often in the newspaper is not necessarily a sign of quality. There are also said to be Members of Parliament who have declared that they do not want to see their names in the media, and who only talk to journalists when they are not being quoted. These are perhaps the less vain, but not the less influential deputies.

Written under pseudonym

However, the “study” disqualifies itself above all by the fact that the author or authors do not want to vouch for the content with their name. It is written under a pseudonym. In the corridors of the Brussels Parliament, there is speculation as to what the real motivation was. The parties are currently drawing up the lists for the European elections. It is foreseeable that there will be a scramble for the safe list positions. It is possible that a supposed argument will be found here for not reappointing someone.

What is striking is that there is a certain German MEP who does not take part in legislative work at all, rarely appears in the media, and when he does, it is not with constructive contributions. So he is probably the laziest German MEP in Brussels. However, he is not mentioned at all in the “study”. Markus Grabitz

Europe.Table Editorial Office

EUROPE.TABLE EDITORS

Licenses:
    Dear reader,

    How can the EU grow, possibly to more than 30 members, and remain capable of acting? This discussion could be more lively in the future than it has been so far. Commission President Ursula von der Leyen and the European Parliament are pushing for it, and a new expert report provides arguments for reform – and ideas on how even reluctant member states can be involved. Till Hoppe gives an overview of the current state of the debate.

    It wasn’t European business that started the de-risking, he claims: “China was the original de-risker.” So says Jens Eskelund, president of the EU Chamber of Commerce in China. Today he is presenting the business representative body’s position paper in Beijing, which draws a grim conclusion: The will to cooperate with European business has reached a new low, he says. Finn Mayer-Kuckuk reports.

    Read why Spain failed in its attempt to introduce Catalan, Basque and Galician as new official EU languages in the News. For Dessert, Markus Grabitz takes a look at an evaluation that claims to have determined who the worst German MEP is. A word of warning: What he finds has little to do with a real study.

    Your
    Sarah Schaefer
    Image of Sarah  Schaefer

    Feature

    Discussion on EU reform picks up speed

    Does the European Union need far-reaching reforms to be able to admit further member states? The debate, which has so far been conducted rather sporadically to reluctantly by governments, is likely to pick up speed in the coming weeks. This is because a number of players are pushing for it, from Commission President Ursula von der Leyen and the European Parliament to German Foreign Minister Annalena Baerbock and her Minister of State for Europe, Anna Lührmann.

    “We now have the opportunity to decisively advance the debate on EU enlargement and reform,” Lührmann told Table.Media. “We must seize this historic opportunity.”

    In January, Lührmann and her French colleague Laurence Boone had commissioned a group of twelve experts from the two countries to draw up joint reform proposals. At the General Council on Tuesday, they presented the report, which had already become public the day before. The discussion at the luncheon, however, showed how controversial the topic still is: “The positions of the member states are still far apart,” reported the Spanish Secretary of State for Europe, Pascual Ignacio Navarro Ríos. But it was important to initiate the debate, he said.

    Enlargement drives reform discussion

    There are some indications that the discussion will not die down any time soon – even if that would be fine with some governments, especially in Central and Eastern Europe. In October, the EU Commission will present a report in which it will assess the progress made by the accession candidates. In December, the heads of state and government will then decide whether to start concrete negotiations with Ukraine and Moldova.

    The more concrete the prospect of EU enlargement to possibly more than 30 members becomes, the more pressing the questions of how the Community’s ability to act can be guaranteed.

    Last week, von der Leyen called in her SOTEU speech for “us to think about how we can prepare for a fully-fledged Union”. Chancellor Olaf Scholz and President Emmanuel Macron have also tied the admission of new member states to reforms in the fabric of the EU. So far, however, Scholz and von der Leyen have tended to rely on gentle pressure – in view of the reservations in many member states about a lengthy reform of the EU treaties in particular, they are avoiding an open confrontation.

    European Parliament exerts pressure

    The European Parliament is different: MEPs want to force the member states to face up to the discussion. In November, they will vote in plenary on a cross-group report by the Committee on Constitutional Affairs that calls for comprehensive reforms and the convening of a convention. The Council must then deal with the initiative. A simple majority of member states would be enough to pave the way for the convening of a convention, which in turn could formulate reform proposals. Green MEP Daniel Freund, one of the report’s authors, sees a positive dynamic: “The group of states that are open to it is growing.”

    In the German government, the Greens in particular are pushing the issue: Baerbock and Lührmann are organizing a high-level European conference at the beginning of November at which they will discuss enlargement and the need for reform with their colleagues from other EU countries.

    Experts recommend contract reform

    The report of the Franco-German expert group is to provide a basis for this. Boone made it clear, however, that this was not a proposal by the two governments. Lührmann spoke of “partly ambitious, partly pragmatic proposals”. Some of them could be implemented without treaty changes, such as extending qualified majority voting in foreign policy or tax policy.

    However, the twelve experts from France and Germany also make it clear in their report that they believe amending the treaties is the best way forward – “for reasons of democratic legitimacy, transparency, coherence and level of ambition”. However, the hurdles to this are very high: treaty change requires “double unanimity”, both in the European Council and for ratification in the member states, whether in national parliaments or by referendum. But there is no consensus in sight, at least not as long as national conservative governments are in power in Poland and Hungary, which strictly reject deeper integration.

    Package deal as a way out?

    The twelve experts are therefore discussing possible ways out. For example, the amendments to the Lisbon Treaty could be linked to a treaty on EU enlargement, thus creating room for a package deal: Eastern European member states are the loudest advocates of admitting Ukraine, Moldova and the Western Balkan states.

    In addition, as in the past, countries could decide not to go along with an integration step in individual policy areas (opt-out). Should the 27 still not reach an agreement, the countries that are particularly keen on integration could go ahead and record their cooperation in a separate treaty. But they warn that this would further increase the complexity of EU law.

    EU Chamber: China is a pioneer in de-risking

    For the first time, Denmark’s Jens Eskelund, who succeeded Joerg Wuttke as President of the EU Chamber of Commerce in China, will present the business representation’s position paper in Beijing today, Wednesday. The annual report packs a punch this year: For the first time, there are more than 1,000 “recommendations,” as the chamber calls its complaints about market conditions in China.

    The chamber represents 1,700 companies doing business in China. “After the turbulent past three years, many have reevaluated their basic assumptions about the Chinese market,” Eskelund says. Predictability and trustworthiness have eroded.

    Deep uncertainty since Corona

    As a result, many companies are diversifying their supply chains to reduce China dependence, Eskelund observes. But it wasn’t European business that started the de-risking, he says: “China was the original de-risker.” He says the country has long talked about economic self-reliance and sought it in practical policy. The chamber has long complained about the resulting market barriers.

    The uncertainty runs deep. “What relationship does China seek with international companies?“. This question is at the top of the list of questions, according to Eskelund. He believes it is now essential for China to regain the trust of companies. Not only has the EU economy been instrumental in lifting China to the level of technology it enjoys today, he said. Today, European investments in China are declining. Regardless, the EU economy is still available as a partner for further development.

    Fewer interventions required

    The Chamber draws the following recommendations for the Chinese leadership from this situation:

    • Allowing more market forces: Some industries remain firmly in the hands of Chinese state-owned enterprises. Strengthening the private sector would also be in line with the leadership’s proclamations.
    • De-politicization of business life: Vague laws facilitate bureaucratic intervention almost everywhere. Companies feel exposed to arbitrariness. The Law on Foreign Relations and the Anti-Espionage Law raise new concerns. They join the cybersecurity law and the data protection law.
    • Giving more voice: The Chamber hopes to be more involved again in the future when relevant laws and regulations are being drafted.
    • Stimulating private consumption.
    • Taking climate action seriously.

    Transparency continues to decrease

    The position paper focuses, in particular, on transparency issues. For example, current economic data is hardly available at present. “We need to be able to understand the fundamentals of this country,” Eskelund says. But the government currently even has statements from economists and bloggers on the economic situation suppressed.

    Another issue is the incompatibility between China’s and the EU’s demands on companies. The EU expects progressively high ethical standards along the supply chain. China, on the other hand, refuses any audits in regions such as Xinjiang. Companies thus find themselves caught between the fronts.

    News

    Azerbaijan attacks Nagorno-Karabakh

    Azerbaijan launched a major attack on several towns in the disputed region of Nagorno-Karabakh on Tuesday. According to the Azerbaijani Defense Ministry, it was a “counter-terrorist operation”. The aim was to “ensure the disarmament and withdrawal of formations of the Armenian armed forces from our territories and neutralize their military infrastructure”.

    The government in Baku sees the conflict region as a “domestic matter” and justifies the deployment by claiming that Armenia has illegally stationed around 10,000 soldiers there. This violates the cease-fire agreement concluded in 2020 under Russian mediation. Armenia’s Defense Ministry said it had no military personnel or equipment in Nagorno-Karabakh, but had withdrawn troops in 2021. The self-governing Republic of Arzakh (Nagorno-Karabakh) has a self-defense army of about 10,000 troops.

    Civilians apparently under fire

    Azerbaijani soldiers had fired missiles at the region around the capital Stepanakert in the morning. The Azerbaijani Defense Ministry wrote in the statement that high-precision weapons would only be used against legitimate military targets, not civilians.

    However, videos show that residential houses and neighborhoods were also hit. According to the Nagorno-Karabakh Foreign Ministry, 80 people, including children, were injured and five people were killed. The authenticity of the videos cannot be determined independently, and the information on those injured and killed also differs greatly in some cases.

    Pressure on the ethnic Armenians living there

    Armenia and Azerbaijan have been fighting over Nagorno-Karabakh for decades. The enclave declared independence in 1991 but is part of Azerbaijan under international law. Azerbaijan’s President Ilham Aliyev claims the territory for himself, and in recent months has increased pressure on the 120,000 ethnic Armenians living there to either take Azerbaijani citizenship or leave.

    According to the government in Baku, humanitarian corridors have been set up to enable the population of Nagorno-Karabakh to be “evacuated” from the region. It is assumed by the Armenian side that it will hardly be possible for the population to return afterwards. Towards evening, according to the Russian news agency Tass, the artillery fire is said to have subsided “as the objectives of the offensive have almost been achieved”. klm

    Rejection of Spain: no new official languages

    Spain has been handed a snub. The country, which currently holds the EU Presidency, failed in its attempt to introduce three new official languages in one fell swoop. Catalan, Basque and Galician will not be recognized in the EU for the time being, it was announced on the fringes of a meeting of European ministers. However, discussions are to continue within the EU.

    In justifying the (provisional) no, diplomats pointed to the costs and the administrative burden. Including Catalan, Basque and Galician in the list of official and working languages would mean that all EU regulations and other official documents would have to be translated into these three languages in the future.

    24 Official and working languages

    The EU is already reaching its limits with 24 official and working languages. Most official documents are now produced only in English; translation then often takes hours, if not days. Some texts on the EU Commission’s website are now only translated into German on request – by an artificial intelligence, i.e. by machine.

    Spain had offered to bear the costs itself. But many countries had reservations – including Germany. Minister of State for Europe Anna Lührmann (Greens) justified this with unresolved questions about legal and financial implications. Other countries fear that recognition of the Spanish regional languages could revive their own old language conflicts.

    Anger over Council Presidency

    The fact that the Spanish EU Council Presidency had put the issue at the top of the agenda caused annoyance. There are definitely more important topics, said one diplomat. On Tuesday, for example, the European ministers wanted to deal with the migration crisis on Lampedusa and prepare for the EU summit in October. The Spanish initiative probably had more to do with domestic policy, it was said.

    An inclusion of Catalan, Basque and Galician in the list of official and working languages can only be decided unanimously. However, a consensus has not yet emerged. ebo

    Switzerland: Horizon deal before the European elections?

    Now that Great Britain is rejoining Horizon Europe via an association, all eyes are turning towards Bern. There, Switzerland’s isolation is now even more palpable as a result of the deal with the British. Michael Schaepmann, rector of the University of Zurich, fears negative consequences for the country: “The British will now focus on participation in Horizon Europe projects, where Switzerland is largely excluded altogether. This leaves us isolated and alone again”, he told SRF.

    The goal is ‘rapid deblocking’

    The Federal Department of Foreign Affairs (FDFA) stresses to Table.Media that a “rapid de-blocking of Switzerland’s participation in ongoing EU programs such as Horizon Europe and Erasmus+” is the goal. This is the subject of ongoing talks with the European Commission, he said.

    At least part of the science community hopes that the British-European deal will also increase pressure on the Swiss government to negotiate an agreement. The president of the ETH Board, Michael Hengartner, sees a possible window of opportunity for an agreement before next year’s European elections after the Swiss parliamentary elections in October. Apparently, he said, many details have also already been discussed, and they are very close, so a final deal could be reached quickly. “If that were the case, we could get going at the push of a button after the election”, Hengartner says. He then expects politicians to get to work quickly and proactively.

    Science and business keep up the pressure

    And the FDFA also confirms: “If talks with the EU and internal work continue to progress well, the Federal Council will prepare to adopt a negotiating mandate by the end of the year.” Both academia and industry now want to keep the pressure up. Probably also because it is not clear whether Commission President Ursula von der Leyen will continue after the elections in Brussels. She is considered a strong supporter of an agreement with Switzerland.

    The previous negotiations had been broken off in May 2021 also because the European Commission considers Switzerland’s association to EU programs such as Horizon Europe in light of the overall relationship. “The Federal Council rejects this political linkage”, the FDFA informs. The EU wants to avoid cherrypicking with this stance. And thus disagreements, especially in the area of the free movement of persons, block the negotiations. “These are just geopolitical and not science policy discussions – we are only one piece of the puzzle”, Hengartner says.

    Since the No in 2021 from Bern, Switzerland is considered a non-associated third country and no longer has full access to Horizon Europe. Currently, the Federal Council is compensating for the missing EU money. What this means for research is that you can still participate in Horizon projects, but no longer in a leading role and with a lot of red tape. The prestigious ERC grants, on the other hand, remain completely closed to the Swiss. mw

    EPP hopes for a new start in agricultural policy

    EPP leader Manfred Weber hopes for a new beginning in agricultural policy after Frans Timmermans, who was responsible for the Green Deal, left the Commission. Speaking at the Christian Democratic party family’s European Farmers’ Deal conference with 800 participants in Brussels, Weber said: “Since Timmermans’ departure, the possibility of rethinking agricultural policy is tangible.”

    The atmosphere of talks between the Parliament and the Commission has changed noticeably, he said. “Now it’s a matter of finding long-term solutions in the open legislative procedures.”

    Pesticide regulation within reach

    Vice Commission President Maroš Šefčovič is to take over the Green Deal from Timmermans at the beginning of October. The EPP expects the Commission to send signals, for example, on the controversial pesticide regulation SUR. According to the EPP, this would be necessary, among other things, in the definition of protected areas, in which the use of pesticides should be completely prohibited.

    Herbert Dorfmann, EPP coordinator for agriculture, said: “We are working purposefully in the committee towards a compromise.” It depends on the result whether the EPP will vote in favor of the pesticide regulation in committee and in plenary.

    Norbert Lins, head of the Agriculture Committee, said with regard to Ukraine’s possible accession to the EU: “Ukraine is a country with a very competitive agricultural sector. Moreover, huge areas of land are at stake. It is already becoming apparent that integration into the CAP will be a major challenge.” mgr

    • European Commission

    Legal Affairs Committee clears way for Hoekstra hearing

    Members of the EU Parliament’s Legal Affairs Committee (JURI) on Tuesday looked into possible conflicts of interest for climate commissioner-designate Wopke Hoekstra. MEPs decided in camera that there were no conflicts of interest for him to carry out his role as chief negotiator for international climate policy . They thus cleared the way for Hoekstra’s hearing in the Environment Committee on Oct. 2.

    In addition to criticism of his lack of expertise in the field of climate policy, Hoekstra’s activities at the Dutch oil company Shell in particular are causing doubts about the nomination. The current foreign minister of the Netherlands was also a consultant at McKinsey and later became finance minister of the Netherlands. At the UN Climate Change Conference in Dubai in December (COP28), he is now expected to take over Frans Timmermans’ previous role as Europe’s top climate diplomat. luk

    CO2 fleet targets for trucks: Transport Committee wants to lower ambition level

    The EU Parliament’s Transport Committee (TRAN) voted on Tuesday on its opinion on CO2 fleet limits for heavy-duty vehicles. MEPs voted to allow manufacturers to count the use of fuels deemed CO2-neutral under the Renewable Energy Directive (RED) as emission savings for their truck fleets. In addition to synthetic e-fuels, this would also include biofuels based on palm oil, soy or rapeseed. The Commission had still ruled this out.

    In its proposal, the Commission also estimates a CO2 reduction for heavy-duty vehicles of 90 percent by 2040 compared to 2019 levels. In its opinion, TRAN has now agreed to 75 percent – a significant reduction in ambition, as environmentalists had called for 100 percent as for passenger cars.

    ENVI is in charge

    EU transport policymakers also cut back on the interim targets. The Commission proposed 45 percent from 2030 and 65 percent from 2035. The Transport Committee settled on 30 percent from 2030 and 50 percent from 2035.

    However, the Environment Committee (ENVI) is in charge of the dossier. This committee will vote on its position in the coming weeks. There, the opinion of TRAN will probably be submitted as an amendment, but is not authoritative for the ENVI members. On Nov. 20, the plenary is to vote on the negotiating position of the Parliament before the trilogue. The General Approach of the Member States is also still under negotiation. luk

    Short-term rentals: Parliament sharpens up on landlord data

    The Internal Market Committee (IMCO) has set out the European Parliament’s position on short-term rentals of properties – such as vacation homes. The intention is to oblige platforms such as Airbnb, 9flats or Vrbo to provide the competent authorities with more precise data on the properties.

    The parliamentarians adopted the compromise proposals of the Dutch rapporteur Kim van Sparrentak (GroenLinks/Greens) with a very large majority. These mainly contain some clarifications compared to the Commission’s draft.

    For example, the parliamentarians want to specify which data landlords must provide. If an official rental permit is required in a region, as stipulated in Article 4 No. 6 of the Services Directive, landlords must provide it. In addition, member states are to be allowed to collect further data on landlords beyond this information. This may be the case, for example, for services associated with the rental.

    Registration number must be clearly recognizable

    The parliamentarians want the providers to be primarily responsible for collecting the data. However, the platforms through which short-term rentals regularly take place should ensure “reliable and complete” information with their own design. This includes clearly displaying the provider’s registration number, which is mandatory in some regions. Here, the platforms are to regularly check whether the number corresponds to the information.

    In the case of multiple registrations, these landlords are to be actively reported to the relevant authorities. Short-term rental platforms are also to “make every possible effort to verify whether a unit intended for rental is located in an area where a registration has been introduced”.

    Across Europe, municipalities complain that unregistered providers are circumventing tourist taxes, bed taxes or taxes due in general. The Council had already agreed on its position in March. fst

    Survey: Consumers dissatisfied with digital protection

    BEUC, the European umbrella organization of consumer protection organizations, is calling on the EU Commission to make significant improvements to EU consumer protection law. With the results of a survey, the association wants to highlight deficits in digital consumer protection.

    For the consumer association, this involves fundamental questions: 50 percent of those surveyed, for example, feel that the currently common tracking for advertising purposes on the web is unfair practice, while 31 percent have no opinion of their own on this. When asked whether the analysis of personal data and the corresponding monetization – for example through apps or websites – is okay, 60 percent of the EU citizens surveyed disagree with the current reality. BEUC therefore calls for tracking-free variants – for example in the form of contextual advertising. Privacy should not have to be paid for, the association warns.

    Some features of new, so-called smart devices are a particular annoyance for consumers and thus also for the consumer association. According to the survey, 76 percent of consumers would like to be able to decide for themselves what data they send and where. 77 percent also want to have the option of sending the devices completely offline, at least temporarily. However, this option is currently being omitted from some end devices, such as robot vacuum cleaners. Once in WiFi, there is no option to deactivate it again, BEUC explains. This issue has not yet played a role in the discussion about the Cyber Resilience Act, for example.

    More control for influencers

    Consumers and the association are also calling for better consumer protection on a third point: Influencers on social media platforms should be regulated more strictly. Here, European regulation is largely going nowhere, BEUC argues. 44 percent of respondents who have seen influencers on social media believe that they would have perceived advertising for dangerous products or possible scams while doing so. Three-quarters of consumers think the platforms should be jointly responsible for influencer content.

    As good as digitalization is for consumers, there are relevant downsides, says Ursula Pachl, BEUC Deputy Director General, which the survey now highlights. For the consumer survey, which the umbrella organization says is representative, almost 5,000 adults in a total of eight EU member states were asked for their opinion in the spring. fst

    • CRA

    Heads

    Niclas Kvarnström – new Asia director at EEAS

    Niclas Kvarnström will help shape the EU’s China policy as the new director of the EEAS Asia department.

    Niclas Kvarnström succeeds Gunnar Wiegand as the new director of the Asia Department of the European External Action Service (EEAS). This is not an easy job. Wiegand had helped shape the European Union’s policy for the region for over 30 years. His successor, Niclas Kvarnström, however, comes with the diplomatic skills necessary to fill Wiegand’s role – and give EU policy an even stronger Indo-Pacific flavor.

    The native Swede has been the head of the Asia-Pacific department in his home country’s foreign ministry since August 2021 and is thus already in the thick of the issue. At a Sinopsis event in Prague last October, he stressed that the Russian war of aggression against Ukraine had highlighted the importance of bridges and partnerships in the region. The EU should not be underestimated when it comes to the Indo-Pacific, Kvarnström said. With these statements, he follows a similar line as his predecessor Wiegand, who consistently insisted on a self-confident EU and closer relations with the Indo-Pacific states.

    Kvarnström has also already gained experience with EU operations. During the Swedish EU presidency in the first half of the year, he played a key role in organizing a ministerial meeting with European and Asian representatives. This is one of the ways in which Kvarnström has already built up a standing with the foreign ministers of the Indo-Pacific states.

    Chinese studies in Oxford and Taiwan

    He already acquired his deep expertise for the region during his education: After attending an international school in the UK, he studied Chinese at Oxford University from 1993 to 1997. As part of his studies, he spent a semester at Taiwan Normal University attending language courses. At Oxford, he chose an economics focus, and wrote his thesis on China’s financial markets.

    He then worked for Goldman Sachs as a banker in London and New York for three years before joining the Swedish diplomatic service. After receiving diplomatic training, he spent a year at the China desk of the Swedish Foreign Office. “As diplomats we are generalists, and I have worked with EU, Eastern European, Asian and UN issues during my career. My first foreign posting was at the Swedish Embassy in Beijing, a great city where my Chinese improved quite a bit,” Kvarnström writes in a post on his former school’s website.

    Swedish Ambassador to Singapore until 2021

    After his stay in Beijing, he held various positions for the Swedish Ministry of Foreign Affairs, including the office of the director general for political affairs in the EU department, where he was involved in the preparation of the EU meetings of foreign ministers.

    Kvarnström went on to work for four years as a political advisor to the Swedish Mission to the United Nations in New York before becoming deputy director of the department for Eastern Europe and Central Asia at the Ministry of Foreign Affairs in 2012. After a brief stint at the Wallenberg Foundation, Kvarnström returned to the diplomatic service in 2016 to become head of the department for Eastern Europe and Asia.

    Deployment before EU-China summit

    In 2018, Kvarnström finally became Sweden’s ambassador to Singapore: “a wonderful post from which to observe dynamic, growing Asia.” In a video message marking the end of his post, Kvarnström called security developments in the region “very dynamic.” He remained loyal to the region – returning to Stockholm in 2021 to take up the post as head of the Asia-Pacific Department.

    For his new position, Kvarnström will now move to the Belgian capital and EU headquarters with his wife and four children. It is not yet clear when exactly his assignment at the EEAS will begin. However, it is very likely that he will take up the post before the planned EU-China summit. Amelie Richter

    Executive Moves

    StÄV with new head of agriculture unit

    Winfried Schröder moves from the Brussels Representation of Baden-Württemberg to the Permanent Representation. He will become Head of the Agriculture Unit at the German EU Embassy. For the last few years, Schröder was the head of the Brussels office of Minister President Winfried Kretschmann (Greens) at the State Representation of Baden-Württemberg.

    Is something changing in your organization? Why not send a note for our staff section to heads@table.media!

    Dessert

    Something wicked

    Europäische Kommission EU Parlament Straßburg Von der Leyen

    The alleged “study” was received by email by all German MEPs. Its title was simply: “Who is the worst German MEP?” That in itself already sounds a little strange. The author of the “study” explains the motivation for his project right at the beginning. The aim is “to ensure that no more lazy politicians are sent to Brussels”. But there is a lot wrong with the “study” itself.

    The criteria used by the study to measure whether an MEP is bad or good are not exactly scientific, to put it nicely: on the one hand, it is about legislative output (rapporteurs, shadow rapporteurs, motions for resolutions, questions), and on the other hand about media presence.

    Despite all the identification with one’s own profession, the fact that someone’s name is often in the newspaper is not necessarily a sign of quality. There are also said to be Members of Parliament who have declared that they do not want to see their names in the media, and who only talk to journalists when they are not being quoted. These are perhaps the less vain, but not the less influential deputies.

    Written under pseudonym

    However, the “study” disqualifies itself above all by the fact that the author or authors do not want to vouch for the content with their name. It is written under a pseudonym. In the corridors of the Brussels Parliament, there is speculation as to what the real motivation was. The parties are currently drawing up the lists for the European elections. It is foreseeable that there will be a scramble for the safe list positions. It is possible that a supposed argument will be found here for not reappointing someone.

    What is striking is that there is a certain German MEP who does not take part in legislative work at all, rarely appears in the media, and when he does, it is not with constructive contributions. So he is probably the laziest German MEP in Brussels. However, he is not mentioned at all in the “study”. Markus Grabitz

    Europe.Table Editorial Office

    EUROPE.TABLE EDITORS

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