Table.Briefing: Europe

Gas supply freeze: EU seeks solidarity response + fertilizers in short supply

  • EU Commission calls gas freeze blackmail
  • Energy crisis and embargoes: why fertilizers are becoming increasingly scarce
  • Import duties on Ukrainian goods to be suspended
  • Rule of law proceedings against Hungary officially launched
  • OECD: countries make slow progress on sustainability goals
  • Commission: prepare for next phase of pandemic
  • Immigration of workers to be made easier
  • Rare SLAPP cases to be made more difficult
  • ECJ: platforms required to cooperate in tax cases
  • Paula Cipierre (Palantir): “We want to communicate transparently”
Dear reader,

“The tap has been turned off,” said Poland’s Climate Minister Anna Moskwa on Polish radio. Poland and Bulgaria have been without gas from Russia since yesterday. EU Commission President Ursula von der Leyen called Moscow’s actions “an attempt by Russia to blackmail us.” However, both countries had planned to phase out Russian gas anyway and serious supply bottlenecks were not to be feared, it was said after a crisis meeting in Brussels. Read Eric Bonse and Manuel Berkel‘s analysis of how the two countries are securing gas supplies now and in the future and what von der Leyen had to say about payments in rubles.

Fertilizer prices were already extraordinarily high in February. Since Russia’s attack on Ukraine, they have risen by a further 40 percent, according to the EU Commission. The problem is that many EU countries are also dependent on imports from Russia in this area. But these are now failing to materialize. In addition, high energy prices are driving up production costs for fertilizers. This could have a strong impact on food supplies, as Timo Landenberger reports. The German Farmers’ Association is already warning of drastic losses in harvests.

Your
Sarah Schaefer
Image of Sarah  Schaefer

Feature

EU Commission calls gas freeze blackmail

The situation in Poland and Bulgaria is under control, it was said after a crisis meeting in Brussels. Serious supply bottlenecks are not to be feared, said an EU diplomat. Poland and Bulgaria had planned to phase out Russian gas by the end of the year anyway. Poland would be affected by 10 billion cubic meters (bcm) per year, but could get supplies from LNG terminals, and storage facilities in the country were 76 percent full, tweeted Bruegel expert Simone Tagliapietra.

Bulgaria is 90 percent dependent on Russian imports and storage levels are only 15 percent, but the imported volume from Russia is comparatively low at 3 bcm. Bulgaria has an interconnector with Romania and the IGB pipeline to Greece is scheduled to come on stream in September at the latest. Through it, 1 bcm per year is expected to flow from Azerbaijan to Bulgaria in the future. In addition, Bulgaria has already booked LNG deliveries through Greek ports, a spokesman for the Energy Ministry in Athens said yesterday. In total, the IGB has a capacity of 3 bcm, which can be increased to 5 bcm, according to the Athens newspaper Kathimerini.

Gas transit to other states is not affected by the steps taken against the Polish and Bulgarian companies, according to Tagliapietra and utility Uniper. So far, they see no major changes on the Yamal route, Uniper CCO Niek den Hollander told analysts. However, CEO Klaus-Dieter Maubach warned of unpredictable reactions from Moscow in an interview with the German newspaper FAZ: “If the West decides to impose an oil embargo, it cannot be ruled out that the Russians will react with a gas supply freeze.”

EU pretends to be prepared

EU Commission President Ursula von der Leyen spoke of blackmail in view of the action from Moscow. Gazprom’s announcement “is yet another attempt by Russia to use gas as an instrument of blackmail,” she said. However, she said the EU was prepared: “Our response will be immediate, united and coordinated.”

Her agency will ensure that Gazprom’s decisions have the least possible impact on consumers, the CDU politician said. The commission also wants to ensure that gas storage facilities are full – especially by sourcing liquefied natural gas (LNG) from the United States.

However, there are no signs of a quick solution. The Commission does not intend to present a strategy for phasing out fossil fuels from Russia until the end of May. In addition, many EU countries – including Germany – cannot yet do without gas supplies.

This leads to national go-it-alone. For example, Austrian Chancellor Karl Nehammer traveled to Moscow in mid-April to secure gas supplies in a one-on-one meeting with Kremlin leader Putin. Putin declared that payment could continue to be made in euros, it was said afterward in Vienna. Hungary’s head of government, Viktor Orbán, in turn, declared his willingness to pay in rubles if necessary.

Moscow’s game with EU sanctions

The EU Commission itself has since changed its analysis of the Moscow decree on payment modalities. Last week, the authority stated that payments in rubles did not constitute a violation of EU sanctions in every case. The Commission even published guidance on the matter.

On Wednesday, von der Leyen expressed the opposite view. Anyone who deviates from the European line and pays in rubles violates the sanctions resolutions and must expect high risks, she said in a press conference. What those risks are, she initially left open. She went on to say that 97 percent of the supply contracts with Russia provide for payments in euros or dollars. The EU states are bound by this.

According to a SPIEGEL report, there are two main sticking points in the payment dispute. First, Putin’s financial tricks could shift the currency risk to customers in the West. If the ruble exchange rate rises, gas would become more expensive for energy importers.

Secondly, the declared aim of the EU sanctions is to keep the Russian central bank out of currency transactions. According to the Commission’s latest analysis, however, this can no longer be ruled out with the new payment procedure demanded by Moscow. The Kremlin is leaving the details unclear. With Manuel Berkel and rtr

  • Energy
  • European policy
  • Natural gas

Energy crisis and embargoes: why fertilizers are becoming increasingly scarce

Empty supermarket shelves and in some cases very high prices for staple foods continue to fuel concerns about a food shortage. Meanwhile, those responsible in politics and agriculture are almost praying that supplies are secure. In its communication on food security, the European Commission stated at the end of March: There is no reason to fear a shortage. The EU agricultural sector is “largely self-sufficient” in food production. However, this is only partly true.

In fact, achieving the highest possible degree of self-sufficiency is one of the declared goals of the Common Agricultural Policy (CAP), and for important staple foods such as wheat or barley, the EU is a net exporter. However, this could soon change, as the war in Ukraine is revealing international dependencies and interdependencies in agriculture as well. Production costs for agricultural products have risen enormously in some cases in recent weeks.

This is particularly evident in the area of fertilizers, where prices were already several times higher than the previous year’s level in February in some cases, and have risen by a further 40 percent since the outbreak of the war, according to the Commission. The highest level ever recorded, says CDU MEP Norbert Lins. The chairman of the Agriculture Committee, therefore, fears a strong impact on the food industry in the medium term.

Gas price important production factor

With around 14 percent, Russia is one of the most important producers of mineral fertilizer on the world market. Several EU countries are dependent on imports from Russia, but these are now failing to materialize, not least because of the EU sanctions against Moscow. In addition, high energy prices are driving up production costs for fertilizers. This is because gas is important not only as a source of energy, but also as a raw material for nitrogen fertilizer, which is produced from ammonia. According to the German Agricultural Industry Association, the price of gas accounts for up to 90 percent of production costs.

The fears in the industry of a possible embargo or gas supply stop from Russia and a further shortage of gas supply are correspondingly great. “The Federal Minister of Economics is responsible for the gas emergency plan, we are in close contact and he, like the Federal Network Agency, is sensitive to the needs of the agriculture and food industry,” a spokeswoman for the Ministry of Agriculture (BMEL) said when asked.

Potash producers profit

Nevertheless, in order to remain profitable, many manufacturers of nitrogen fertilizers are already curbing their production. Phosphorus and potassium, the most commonly used fertilizers alongside nitrogen, are also becoming scarce. It is true that the price of gas is less decisive here. However, Russia and Belarus alone, which is also sanctioned by the West, account for around 40 percent of potash fertilizer exports on the world market. This is driving up prices.

Other potash producers are benefiting. Fertilizer producer S+K, for example, expects good business and significantly revised its earnings forecast for the current year upwards in mid-April. Herbert Dorfmann, Member of the European Parliament for the South Tyrolean People’s Party, speaks of an “absurd price situation”. The agricultural economist accuses the companies of exploiting the difficult situation and calls on the Commission to investigate a possible market failure.

The Brussels-based authority did not respond to an inquiry from Europe.Table. The German Agricultural Industry Association, on the other hand, stated: “Fertilizers are globally traded commodities, and prices are determined by supply and demand. In this context, Germany and Europe play a subordinate role on a global scale, both as suppliers and buyers.”

DBV calls for fertilizer reserve

For the current year, the German Farmers’ Association (DBV) still fears little loss of harvests as a result of the fertilizer shortage. However, if the situation does not improve, yield declines of up to 40 percent must be expected in 2023, said DBV President Bernhard Krüsken. “To ensure supplies for the 2023 growing season, we are calling on the German government to establish a fertilizer reserve.”

However, the latter rejects this. “Taking fertilizer off the market would further exacerbate the shortage that already exists.” A reserve would also be difficult to implement for technical reasons of safety and storability, a BMEL spokeswoman said. More important is more efficient use of fertilizers, for example through improved application techniques or measurement of nitrogen content. In the medium term, the principle of the circular economy must be brought back to the fore.

More animal manure again

Norbert Lins expects direct help for agriculture from the EU Parliament’s demand to the Commission to suspend anti-dumping duties on fertilizers. Another measure could be a switch from chemical to animal fertilizers, says the MEP.

In fact, many farms have been forced to adapt their fertilizer management due to the tense situation, the BMEL confirms. Instead of using mineral fertilizers, the purchase of animal manure, so-called farm manure, from regions where animal husbandry is concentrated is now becoming much more attractive. “However, it cannot completely replace mineral fertilizer,” says DBV Secretary General Küsken.

The biggest problem is dependence on fossil fuels, says Martin Häusling, agricultural policy spokesman for the Greens in the EU Parliament. Instead of lapsing into actionism and subsidizing fertilizer production, he said, the green transition must be pushed further. “Two percent of global CO2 emissions come from nitrogen production alone. So the collateral damage is not entirely insignificant,” Häusling said.

  • Energy Prices
  • Food

News

Commission to suspend import duties on Ukrainian goods for one year

The EU Commission wants to suspend import duties on all Ukrainian goods for one year. In addition, all EU anti-dumping and safeguard measures on Ukrainian steel exports will be lifted to support the country’s economy during the war with Russia, the Brussels-based agency said Wednesday. “This far-reaching step should help boost Ukrainian exports to the EU.” The move is intended to alleviate the difficult situation faced by Ukrainian manufacturers and exporters in the face of the Russian invasion, it said.

The project secures duty-free and quota-free access to the EU market for Ukraine. Now the European Parliament and EU member states still have to approve it. “These measures will directly help Ukrainian producers and exporters. They will boost confidence in the Ukrainian economy,” said Commission Vice President and Trade Commissioner Valdis Dombrovskis. Last year, bilateral trade between the EU and Ukraine amounted to more than €52 billion.

With Ukrainian shipping across the Black Sea now cut off by the Russian navy, the EU is also supporting land transport of Ukrainian goods. For example, the EU has liberalized conditions for Ukrainian truck drivers and facilitated transit and the use of EU infrastructure. rtr

  • European policy
  • Trade
  • Trade Policy

Rule of law proceedings against Hungary officially launched

Because of possible violations of the rule of law in Hungary, the EU Commission in Brussels has now officially triggered a procedure to cut EU funds against the country. The corresponding letter will be sent to Budapest on Wednesday, EU Commission Vice-President Věra Jourová wrote on Twitter. Commission chief Ursula von der Leyen had announced the move earlier this month.

However, it will be some time before Hungary actually has money cut from the EU budget. In the end, this would also require the approval of at least 15 EU states with at least 65 percent of the EU population.

The so-called EU rule of law mechanism has been in force since the beginning of 2021. Its purpose is to ensure that violations of rule-of-law principles such as the separation of powers no longer go unpunished. The decisive factor here, however, is that the violations threaten to misuse EU funds.

“We have identified problems that could violate the rule of law in Hungary and affect the EU budget,” Jourová said. Senior EU officials said the case focused on systemic flaws in Hungary’s public procurement system. They fail to prevent conflicts of interest and the risk of corruption there.

Poland and Hungary see themselves as particularly in the focus of the instrument and had sued against it before the European Court of Justice. However, the Court rejected the complaints in February. Both countries receive billions annually from the Community budget.

First of all, Budapest can now take a position on the accusations and, if necessary, propose remedial measures. The EU Commission will then take this into account when deciding whether it will actually propose to EU states that Hungary cut EU funds. Orbán’s chief of staff Gergely Gulyás announced in a Facebook video that the Hungarian government would examine the Commission’s letter and give a detailed response today. dpa/rtr

  • European policy
  • Hungary
  • Rule of Law
  • Society

OECD: Countries making slow progress on sustainability goals

The Organization for Economic Co-operation and Development, based in Paris, said Wednesday that its member countries are making only slow progress on the 2030 Sustainable Development Goals (SDGs), with only a quarter of the measurable sub-goals already achieved or close to being achieved. Stronger policy measures are needed to achieve all aspirations by 2030, it said. The OECD sees a particularly large need to catch up in restoring trust in institutions, bringing down the environmental burden and ensuring that no one is left behind.

The 17 Sustainable Development Goals (SDGs), each with numerous sub-goals, were adopted by the United Nations in 2015. They are intended to help ensure sustainable development at the economic, social, and ecological levels. dpa

  • Climate & Environment
  • Climate protection
  • Sustainability

Commission: prepare for the next phase of the pandemic

EU countries should remain vigilant despite falling COVID-19 numbers, according to the European Commission. The Brussels-based agency on Wednesday unveiled a guide for transitioning from the COVID-19 emergency of recent months and years to a more long-term approach to the COVID-19 pandemic. “We are entering a new phase of the pandemic as we have gradually started to live with COVID-19. Nevertheless, we should remain extremely vigilant,” said Ursula von der Leyen, head of the commission. There is still a risk of new virus variants.

Specifically, EU countries should step up COVID-19 vaccination and booster campaigns, according to the communication. Only 64 percent of the EU population has received a booster, and there are still 90 million completely unvaccinated people in the EU, Health Commissioner Stella Kyriakides said. To ensure the long-term supply of COVID-19 vaccines, capacity for their production will be reserved under the supervision of the new EU health agency Hera.

Kyriakides also said vaccines adapted from variants of COVID-19 should be licensed as soon as possible, when they become available. “I would say that approval of adapted vaccines is not expected before the end of the summer,” she said.

At the same time, countries should implement a long-term system for testing and for surveillance of the virus, which could include other respiratory diseases such as influenza in addition to COVID-19, the memo said. dpa

  • Corona Vaccinations
  • Coronavirus
  • Health
  • Health policy

Immigration of workers to become easier

The EU Commission wants to make legal immigration of workers to the European Union easier. Legal migration has positive effects all around, Commission Vice President Margaritis Schinas said Wednesday in Brussels. “It gives those willing to migrate the opportunity to improve their living conditions, and at the same time it creates more skilled workers for the receiving countries, who in turn boost the economy for everyone.” Schinas pointed to a significant skills shortage in the EU and stressed, “Migration is part of the European DNA.”

Among other things, the Brussels authority now proposed to change the rules for a residence and work permit. Among other things, people with this permit should have the right to change employers. Also, this permit should not be withdrawn if a person is temporarily unemployed. Employers who illegally exploit their employees should be sanctioned.

In addition, the EU Commission proposes that migrants should be able to spend the necessary five years for a long-term residence permit in different EU countries in the future. For the proposals to be implemented, the EU states and the European Parliament must now agree on a common line. dpa

  • European policy
  • Labour migration
  • Society

Rare SLAPP cases to be made more difficult to treat

The EU Commission wants to curb the cross-border abuse of civil law instruments by companies and public bodies aimed at preventing unwelcome reporting and criticism. Yesterday, the Commission presented its plans for making cross-border intimidation suits (strategic lawsuits against public participation, SLAPP) at least somewhat more difficult in the future.

By means of a proposal for a directive, the Commission wants to ensure, among other things, that proceedings conducted for strategic reasons can be dismissed more quickly by the competent courts. In addition, the burden of proof for the merits of the action is to lie with the plaintiff. The proposal also provides that unfounded lawsuits can also have repercussions for the initiators of the SLAPP: in such cases, not only compensation arrangements for affected parties are to be created in national law, but also effective ways of holding polluters accountable.

Residents of the EU against whom unjustified proceedings are brought in third countries are also to be better protected: Here, too, there is to be an enforceable claim for reimbursement of costs incurred as well as compensation for damages under SLAPP.

Criticism of the plan comes – with general approval – from the ranks of the Greens: the Commission’s proposals do not go far enough, as they do not address both criminal cases and domestic action. Marie Toussaint (Greens/EFA) said that beyond the current regulation, there was a need for “a truly effective right to a fair trial at the European level.”

At this stage, the EU lacks direct competence to regulate abuses of criminal law and those that take place exclusively in individual member states. These make up the bulk of strategic legal intimidation attempts against journalists. However, gross abuses of the legal system are also subject to the EU Commission’s rule of law review – which, however, has yet to prove itself in practice. fst

  • European policy
  • Rule of Law
  • Society

ECJ: Platforms obliged to cooperate in tax cases

Tax authorities are allowed to request tax-relevant data from online platforms if this data relates to the local jurisdiction of the authority. This was the decision of the European Court of Justice in yesterday’s ruling on three questions referred by the Belgian Constitutional Court.

At the end of 2016, the Brussels Region had obliged the providers of overnight accommodation services to publish information on the number of overnight stays and guests of the respective providers on the platform. The aim was to calculate a flat-rate tax on overnight stays. A similar tax also exists in many German cities under the names bed tax, city tax, or culture tax. At the request of the authorities, Airbnb was to provide the relevant information. The operator had refused to provide information several times in 2017, which in turn led to a fine by the responsible authorities.

The rental brokerage of the US provider Airbnb, whose subsidiary that is decisive for the European business is based in Ireland, filed a complaint with the Belgian Constitutional Court. The European Court of Justice now had to decide: is the operator of the online service subject to the law of the Brussels region, even if it is not itself the taxpayer and does not have a permanent establishment on-site? And is he obliged to cooperate?

The ruling has an impact beyond Airbnb

The answer of the European Court of Justice is clear: the e-commerce directive does not prevent this. This is because tax law is one of the areas that are not communized. National laws are explicitly exempt from the unification requirements of the e-commerce directive in all tax law matters – and Airbnb offers its mediation service in the jurisdiction of the Brussels region.

The ruling in the Airbnb case has no direct impact on Germany: In September 2020, the Servicetelle Steueraufsicht Hamburg (Hamburg Tax Inspectorate) won a case before an Irish court for the release of tax-relevant data from the platform, which was then transmitted to the tax offices of the residents.

The ruling of the European Court of Justice, meanwhile, goes far beyond the specific case of Airbnb: according to the ruling, other platforms that fall under the e-commerce directive and whose users would have to pay duties or taxes under local law may also be obliged to cooperate. fst

  • Data
  • Data law
  • Finance

Profile

Paula Cipierre (Palantir): ‘We want to communicate transparently’

Paula Cipierre is EU Head of Privacy and Public Policy at Palantir Technologies in Berlin.

Paula Cipierre experienced what life with little privacy can feel like as a teenager. At sixteen, the daughter of a German mother and an English father left Germany to spend the last two years of her schooling at an international boarding school, the United World College in Norway. “We were housed in rooms of five,” the 32-year-old recalls. “My bedmates included girls from Lithuania, Norway, Tibet, and Western Sahara, two of whom were refugees.”

Sixteen years later, Paula Cipierre is an expert on privacy issues as EU head of privacy and public policy at software maker Palantir Technologies. The company offers – quite controversially – products such as the Gotham platform, which security agencies use in law enforcement and defense. Here, software engineers and data scientists work hand in hand with lawyers and ethics experts. Paula Cipierre is still in daily contact with a wide variety of people from a wide variety of backgrounds – possibly because she herself likes to take unusual paths.

From linguistics to data protection

Cipierre is one of a handful of young women working on data protection issues at a software company. She is a humanities and cultural studies graduate: She studied French literature, European cultural studies, and Middle Eastern studies, all at the renowned Princeton University in the USA. In 2012, while studying for her master’s degree in public policy at the Hertie School of Governance, she helped organize a conference on the then-planned EU General Data Protection Regulation as a student assistant at the Alexander von Humboldt Institute for Internet and Society (HIIG). Since then, she has not let go of the topic with its legal and cultural facets.

Shortly after Edward Snowden revealed that Internet users are being spied on by the US Foreign Intelligence Service, Paula Cipierre devoted her master’s thesis to transatlantic privacy governance, then began a Ph.D. in “Media, Culture, and Communication” with a philosopher at New York University – on the topic of how to incorporate legal and normative privacy requirements into the design of new technologies from the outset. This is a topic that otherwise mainly occupies lawyers and computer scientists.

Interdisciplinary thinking in the business enterprise

Cipierre put her doctorate on hold at the end of 2016 to join Palantir, first in New York, then in Munich, and finally in Berlin. “I wanted to be closer to the topics I had been researching for years.”

As the company’s Privacy and Public Policy Officer, her responsibilities now include explaining to government and private customers, as well as the broader public, how Palantir handles data privacy and data ethics in practice: “In both the government and commercial sectors, we work on socially important issues. As a company, we want to communicate transparently: what can our platforms do? And what protections are built into them?”

Cipierre lives in Berlin and is currently studying information technology law part-time, so she is also continuing her legal education – and still benefits from her first degree, during which she learned French, Spanish, and also Hebrew: “In different languages, people think differently about certain concepts. Programming languages are also languages. Now I help translate legal and ethical principles into our software.” Janna Degener-Storr

  • Data protection
  • Digital policy
  • Digitization
  • European policy

Europe.Table Editorial Office

EUROPE.TABLE EDITORS

Licenses:
    • EU Commission calls gas freeze blackmail
    • Energy crisis and embargoes: why fertilizers are becoming increasingly scarce
    • Import duties on Ukrainian goods to be suspended
    • Rule of law proceedings against Hungary officially launched
    • OECD: countries make slow progress on sustainability goals
    • Commission: prepare for next phase of pandemic
    • Immigration of workers to be made easier
    • Rare SLAPP cases to be made more difficult
    • ECJ: platforms required to cooperate in tax cases
    • Paula Cipierre (Palantir): “We want to communicate transparently”
    Dear reader,

    “The tap has been turned off,” said Poland’s Climate Minister Anna Moskwa on Polish radio. Poland and Bulgaria have been without gas from Russia since yesterday. EU Commission President Ursula von der Leyen called Moscow’s actions “an attempt by Russia to blackmail us.” However, both countries had planned to phase out Russian gas anyway and serious supply bottlenecks were not to be feared, it was said after a crisis meeting in Brussels. Read Eric Bonse and Manuel Berkel‘s analysis of how the two countries are securing gas supplies now and in the future and what von der Leyen had to say about payments in rubles.

    Fertilizer prices were already extraordinarily high in February. Since Russia’s attack on Ukraine, they have risen by a further 40 percent, according to the EU Commission. The problem is that many EU countries are also dependent on imports from Russia in this area. But these are now failing to materialize. In addition, high energy prices are driving up production costs for fertilizers. This could have a strong impact on food supplies, as Timo Landenberger reports. The German Farmers’ Association is already warning of drastic losses in harvests.

    Your
    Sarah Schaefer
    Image of Sarah  Schaefer

    Feature

    EU Commission calls gas freeze blackmail

    The situation in Poland and Bulgaria is under control, it was said after a crisis meeting in Brussels. Serious supply bottlenecks are not to be feared, said an EU diplomat. Poland and Bulgaria had planned to phase out Russian gas by the end of the year anyway. Poland would be affected by 10 billion cubic meters (bcm) per year, but could get supplies from LNG terminals, and storage facilities in the country were 76 percent full, tweeted Bruegel expert Simone Tagliapietra.

    Bulgaria is 90 percent dependent on Russian imports and storage levels are only 15 percent, but the imported volume from Russia is comparatively low at 3 bcm. Bulgaria has an interconnector with Romania and the IGB pipeline to Greece is scheduled to come on stream in September at the latest. Through it, 1 bcm per year is expected to flow from Azerbaijan to Bulgaria in the future. In addition, Bulgaria has already booked LNG deliveries through Greek ports, a spokesman for the Energy Ministry in Athens said yesterday. In total, the IGB has a capacity of 3 bcm, which can be increased to 5 bcm, according to the Athens newspaper Kathimerini.

    Gas transit to other states is not affected by the steps taken against the Polish and Bulgarian companies, according to Tagliapietra and utility Uniper. So far, they see no major changes on the Yamal route, Uniper CCO Niek den Hollander told analysts. However, CEO Klaus-Dieter Maubach warned of unpredictable reactions from Moscow in an interview with the German newspaper FAZ: “If the West decides to impose an oil embargo, it cannot be ruled out that the Russians will react with a gas supply freeze.”

    EU pretends to be prepared

    EU Commission President Ursula von der Leyen spoke of blackmail in view of the action from Moscow. Gazprom’s announcement “is yet another attempt by Russia to use gas as an instrument of blackmail,” she said. However, she said the EU was prepared: “Our response will be immediate, united and coordinated.”

    Her agency will ensure that Gazprom’s decisions have the least possible impact on consumers, the CDU politician said. The commission also wants to ensure that gas storage facilities are full – especially by sourcing liquefied natural gas (LNG) from the United States.

    However, there are no signs of a quick solution. The Commission does not intend to present a strategy for phasing out fossil fuels from Russia until the end of May. In addition, many EU countries – including Germany – cannot yet do without gas supplies.

    This leads to national go-it-alone. For example, Austrian Chancellor Karl Nehammer traveled to Moscow in mid-April to secure gas supplies in a one-on-one meeting with Kremlin leader Putin. Putin declared that payment could continue to be made in euros, it was said afterward in Vienna. Hungary’s head of government, Viktor Orbán, in turn, declared his willingness to pay in rubles if necessary.

    Moscow’s game with EU sanctions

    The EU Commission itself has since changed its analysis of the Moscow decree on payment modalities. Last week, the authority stated that payments in rubles did not constitute a violation of EU sanctions in every case. The Commission even published guidance on the matter.

    On Wednesday, von der Leyen expressed the opposite view. Anyone who deviates from the European line and pays in rubles violates the sanctions resolutions and must expect high risks, she said in a press conference. What those risks are, she initially left open. She went on to say that 97 percent of the supply contracts with Russia provide for payments in euros or dollars. The EU states are bound by this.

    According to a SPIEGEL report, there are two main sticking points in the payment dispute. First, Putin’s financial tricks could shift the currency risk to customers in the West. If the ruble exchange rate rises, gas would become more expensive for energy importers.

    Secondly, the declared aim of the EU sanctions is to keep the Russian central bank out of currency transactions. According to the Commission’s latest analysis, however, this can no longer be ruled out with the new payment procedure demanded by Moscow. The Kremlin is leaving the details unclear. With Manuel Berkel and rtr

    • Energy
    • European policy
    • Natural gas

    Energy crisis and embargoes: why fertilizers are becoming increasingly scarce

    Empty supermarket shelves and in some cases very high prices for staple foods continue to fuel concerns about a food shortage. Meanwhile, those responsible in politics and agriculture are almost praying that supplies are secure. In its communication on food security, the European Commission stated at the end of March: There is no reason to fear a shortage. The EU agricultural sector is “largely self-sufficient” in food production. However, this is only partly true.

    In fact, achieving the highest possible degree of self-sufficiency is one of the declared goals of the Common Agricultural Policy (CAP), and for important staple foods such as wheat or barley, the EU is a net exporter. However, this could soon change, as the war in Ukraine is revealing international dependencies and interdependencies in agriculture as well. Production costs for agricultural products have risen enormously in some cases in recent weeks.

    This is particularly evident in the area of fertilizers, where prices were already several times higher than the previous year’s level in February in some cases, and have risen by a further 40 percent since the outbreak of the war, according to the Commission. The highest level ever recorded, says CDU MEP Norbert Lins. The chairman of the Agriculture Committee, therefore, fears a strong impact on the food industry in the medium term.

    Gas price important production factor

    With around 14 percent, Russia is one of the most important producers of mineral fertilizer on the world market. Several EU countries are dependent on imports from Russia, but these are now failing to materialize, not least because of the EU sanctions against Moscow. In addition, high energy prices are driving up production costs for fertilizers. This is because gas is important not only as a source of energy, but also as a raw material for nitrogen fertilizer, which is produced from ammonia. According to the German Agricultural Industry Association, the price of gas accounts for up to 90 percent of production costs.

    The fears in the industry of a possible embargo or gas supply stop from Russia and a further shortage of gas supply are correspondingly great. “The Federal Minister of Economics is responsible for the gas emergency plan, we are in close contact and he, like the Federal Network Agency, is sensitive to the needs of the agriculture and food industry,” a spokeswoman for the Ministry of Agriculture (BMEL) said when asked.

    Potash producers profit

    Nevertheless, in order to remain profitable, many manufacturers of nitrogen fertilizers are already curbing their production. Phosphorus and potassium, the most commonly used fertilizers alongside nitrogen, are also becoming scarce. It is true that the price of gas is less decisive here. However, Russia and Belarus alone, which is also sanctioned by the West, account for around 40 percent of potash fertilizer exports on the world market. This is driving up prices.

    Other potash producers are benefiting. Fertilizer producer S+K, for example, expects good business and significantly revised its earnings forecast for the current year upwards in mid-April. Herbert Dorfmann, Member of the European Parliament for the South Tyrolean People’s Party, speaks of an “absurd price situation”. The agricultural economist accuses the companies of exploiting the difficult situation and calls on the Commission to investigate a possible market failure.

    The Brussels-based authority did not respond to an inquiry from Europe.Table. The German Agricultural Industry Association, on the other hand, stated: “Fertilizers are globally traded commodities, and prices are determined by supply and demand. In this context, Germany and Europe play a subordinate role on a global scale, both as suppliers and buyers.”

    DBV calls for fertilizer reserve

    For the current year, the German Farmers’ Association (DBV) still fears little loss of harvests as a result of the fertilizer shortage. However, if the situation does not improve, yield declines of up to 40 percent must be expected in 2023, said DBV President Bernhard Krüsken. “To ensure supplies for the 2023 growing season, we are calling on the German government to establish a fertilizer reserve.”

    However, the latter rejects this. “Taking fertilizer off the market would further exacerbate the shortage that already exists.” A reserve would also be difficult to implement for technical reasons of safety and storability, a BMEL spokeswoman said. More important is more efficient use of fertilizers, for example through improved application techniques or measurement of nitrogen content. In the medium term, the principle of the circular economy must be brought back to the fore.

    More animal manure again

    Norbert Lins expects direct help for agriculture from the EU Parliament’s demand to the Commission to suspend anti-dumping duties on fertilizers. Another measure could be a switch from chemical to animal fertilizers, says the MEP.

    In fact, many farms have been forced to adapt their fertilizer management due to the tense situation, the BMEL confirms. Instead of using mineral fertilizers, the purchase of animal manure, so-called farm manure, from regions where animal husbandry is concentrated is now becoming much more attractive. “However, it cannot completely replace mineral fertilizer,” says DBV Secretary General Küsken.

    The biggest problem is dependence on fossil fuels, says Martin Häusling, agricultural policy spokesman for the Greens in the EU Parliament. Instead of lapsing into actionism and subsidizing fertilizer production, he said, the green transition must be pushed further. “Two percent of global CO2 emissions come from nitrogen production alone. So the collateral damage is not entirely insignificant,” Häusling said.

    • Energy Prices
    • Food

    News

    Commission to suspend import duties on Ukrainian goods for one year

    The EU Commission wants to suspend import duties on all Ukrainian goods for one year. In addition, all EU anti-dumping and safeguard measures on Ukrainian steel exports will be lifted to support the country’s economy during the war with Russia, the Brussels-based agency said Wednesday. “This far-reaching step should help boost Ukrainian exports to the EU.” The move is intended to alleviate the difficult situation faced by Ukrainian manufacturers and exporters in the face of the Russian invasion, it said.

    The project secures duty-free and quota-free access to the EU market for Ukraine. Now the European Parliament and EU member states still have to approve it. “These measures will directly help Ukrainian producers and exporters. They will boost confidence in the Ukrainian economy,” said Commission Vice President and Trade Commissioner Valdis Dombrovskis. Last year, bilateral trade between the EU and Ukraine amounted to more than €52 billion.

    With Ukrainian shipping across the Black Sea now cut off by the Russian navy, the EU is also supporting land transport of Ukrainian goods. For example, the EU has liberalized conditions for Ukrainian truck drivers and facilitated transit and the use of EU infrastructure. rtr

    • European policy
    • Trade
    • Trade Policy

    Rule of law proceedings against Hungary officially launched

    Because of possible violations of the rule of law in Hungary, the EU Commission in Brussels has now officially triggered a procedure to cut EU funds against the country. The corresponding letter will be sent to Budapest on Wednesday, EU Commission Vice-President Věra Jourová wrote on Twitter. Commission chief Ursula von der Leyen had announced the move earlier this month.

    However, it will be some time before Hungary actually has money cut from the EU budget. In the end, this would also require the approval of at least 15 EU states with at least 65 percent of the EU population.

    The so-called EU rule of law mechanism has been in force since the beginning of 2021. Its purpose is to ensure that violations of rule-of-law principles such as the separation of powers no longer go unpunished. The decisive factor here, however, is that the violations threaten to misuse EU funds.

    “We have identified problems that could violate the rule of law in Hungary and affect the EU budget,” Jourová said. Senior EU officials said the case focused on systemic flaws in Hungary’s public procurement system. They fail to prevent conflicts of interest and the risk of corruption there.

    Poland and Hungary see themselves as particularly in the focus of the instrument and had sued against it before the European Court of Justice. However, the Court rejected the complaints in February. Both countries receive billions annually from the Community budget.

    First of all, Budapest can now take a position on the accusations and, if necessary, propose remedial measures. The EU Commission will then take this into account when deciding whether it will actually propose to EU states that Hungary cut EU funds. Orbán’s chief of staff Gergely Gulyás announced in a Facebook video that the Hungarian government would examine the Commission’s letter and give a detailed response today. dpa/rtr

    • European policy
    • Hungary
    • Rule of Law
    • Society

    OECD: Countries making slow progress on sustainability goals

    The Organization for Economic Co-operation and Development, based in Paris, said Wednesday that its member countries are making only slow progress on the 2030 Sustainable Development Goals (SDGs), with only a quarter of the measurable sub-goals already achieved or close to being achieved. Stronger policy measures are needed to achieve all aspirations by 2030, it said. The OECD sees a particularly large need to catch up in restoring trust in institutions, bringing down the environmental burden and ensuring that no one is left behind.

    The 17 Sustainable Development Goals (SDGs), each with numerous sub-goals, were adopted by the United Nations in 2015. They are intended to help ensure sustainable development at the economic, social, and ecological levels. dpa

    • Climate & Environment
    • Climate protection
    • Sustainability

    Commission: prepare for the next phase of the pandemic

    EU countries should remain vigilant despite falling COVID-19 numbers, according to the European Commission. The Brussels-based agency on Wednesday unveiled a guide for transitioning from the COVID-19 emergency of recent months and years to a more long-term approach to the COVID-19 pandemic. “We are entering a new phase of the pandemic as we have gradually started to live with COVID-19. Nevertheless, we should remain extremely vigilant,” said Ursula von der Leyen, head of the commission. There is still a risk of new virus variants.

    Specifically, EU countries should step up COVID-19 vaccination and booster campaigns, according to the communication. Only 64 percent of the EU population has received a booster, and there are still 90 million completely unvaccinated people in the EU, Health Commissioner Stella Kyriakides said. To ensure the long-term supply of COVID-19 vaccines, capacity for their production will be reserved under the supervision of the new EU health agency Hera.

    Kyriakides also said vaccines adapted from variants of COVID-19 should be licensed as soon as possible, when they become available. “I would say that approval of adapted vaccines is not expected before the end of the summer,” she said.

    At the same time, countries should implement a long-term system for testing and for surveillance of the virus, which could include other respiratory diseases such as influenza in addition to COVID-19, the memo said. dpa

    • Corona Vaccinations
    • Coronavirus
    • Health
    • Health policy

    Immigration of workers to become easier

    The EU Commission wants to make legal immigration of workers to the European Union easier. Legal migration has positive effects all around, Commission Vice President Margaritis Schinas said Wednesday in Brussels. “It gives those willing to migrate the opportunity to improve their living conditions, and at the same time it creates more skilled workers for the receiving countries, who in turn boost the economy for everyone.” Schinas pointed to a significant skills shortage in the EU and stressed, “Migration is part of the European DNA.”

    Among other things, the Brussels authority now proposed to change the rules for a residence and work permit. Among other things, people with this permit should have the right to change employers. Also, this permit should not be withdrawn if a person is temporarily unemployed. Employers who illegally exploit their employees should be sanctioned.

    In addition, the EU Commission proposes that migrants should be able to spend the necessary five years for a long-term residence permit in different EU countries in the future. For the proposals to be implemented, the EU states and the European Parliament must now agree on a common line. dpa

    • European policy
    • Labour migration
    • Society

    Rare SLAPP cases to be made more difficult to treat

    The EU Commission wants to curb the cross-border abuse of civil law instruments by companies and public bodies aimed at preventing unwelcome reporting and criticism. Yesterday, the Commission presented its plans for making cross-border intimidation suits (strategic lawsuits against public participation, SLAPP) at least somewhat more difficult in the future.

    By means of a proposal for a directive, the Commission wants to ensure, among other things, that proceedings conducted for strategic reasons can be dismissed more quickly by the competent courts. In addition, the burden of proof for the merits of the action is to lie with the plaintiff. The proposal also provides that unfounded lawsuits can also have repercussions for the initiators of the SLAPP: in such cases, not only compensation arrangements for affected parties are to be created in national law, but also effective ways of holding polluters accountable.

    Residents of the EU against whom unjustified proceedings are brought in third countries are also to be better protected: Here, too, there is to be an enforceable claim for reimbursement of costs incurred as well as compensation for damages under SLAPP.

    Criticism of the plan comes – with general approval – from the ranks of the Greens: the Commission’s proposals do not go far enough, as they do not address both criminal cases and domestic action. Marie Toussaint (Greens/EFA) said that beyond the current regulation, there was a need for “a truly effective right to a fair trial at the European level.”

    At this stage, the EU lacks direct competence to regulate abuses of criminal law and those that take place exclusively in individual member states. These make up the bulk of strategic legal intimidation attempts against journalists. However, gross abuses of the legal system are also subject to the EU Commission’s rule of law review – which, however, has yet to prove itself in practice. fst

    • European policy
    • Rule of Law
    • Society

    ECJ: Platforms obliged to cooperate in tax cases

    Tax authorities are allowed to request tax-relevant data from online platforms if this data relates to the local jurisdiction of the authority. This was the decision of the European Court of Justice in yesterday’s ruling on three questions referred by the Belgian Constitutional Court.

    At the end of 2016, the Brussels Region had obliged the providers of overnight accommodation services to publish information on the number of overnight stays and guests of the respective providers on the platform. The aim was to calculate a flat-rate tax on overnight stays. A similar tax also exists in many German cities under the names bed tax, city tax, or culture tax. At the request of the authorities, Airbnb was to provide the relevant information. The operator had refused to provide information several times in 2017, which in turn led to a fine by the responsible authorities.

    The rental brokerage of the US provider Airbnb, whose subsidiary that is decisive for the European business is based in Ireland, filed a complaint with the Belgian Constitutional Court. The European Court of Justice now had to decide: is the operator of the online service subject to the law of the Brussels region, even if it is not itself the taxpayer and does not have a permanent establishment on-site? And is he obliged to cooperate?

    The ruling has an impact beyond Airbnb

    The answer of the European Court of Justice is clear: the e-commerce directive does not prevent this. This is because tax law is one of the areas that are not communized. National laws are explicitly exempt from the unification requirements of the e-commerce directive in all tax law matters – and Airbnb offers its mediation service in the jurisdiction of the Brussels region.

    The ruling in the Airbnb case has no direct impact on Germany: In September 2020, the Servicetelle Steueraufsicht Hamburg (Hamburg Tax Inspectorate) won a case before an Irish court for the release of tax-relevant data from the platform, which was then transmitted to the tax offices of the residents.

    The ruling of the European Court of Justice, meanwhile, goes far beyond the specific case of Airbnb: according to the ruling, other platforms that fall under the e-commerce directive and whose users would have to pay duties or taxes under local law may also be obliged to cooperate. fst

    • Data
    • Data law
    • Finance

    Profile

    Paula Cipierre (Palantir): ‘We want to communicate transparently’

    Paula Cipierre is EU Head of Privacy and Public Policy at Palantir Technologies in Berlin.

    Paula Cipierre experienced what life with little privacy can feel like as a teenager. At sixteen, the daughter of a German mother and an English father left Germany to spend the last two years of her schooling at an international boarding school, the United World College in Norway. “We were housed in rooms of five,” the 32-year-old recalls. “My bedmates included girls from Lithuania, Norway, Tibet, and Western Sahara, two of whom were refugees.”

    Sixteen years later, Paula Cipierre is an expert on privacy issues as EU head of privacy and public policy at software maker Palantir Technologies. The company offers – quite controversially – products such as the Gotham platform, which security agencies use in law enforcement and defense. Here, software engineers and data scientists work hand in hand with lawyers and ethics experts. Paula Cipierre is still in daily contact with a wide variety of people from a wide variety of backgrounds – possibly because she herself likes to take unusual paths.

    From linguistics to data protection

    Cipierre is one of a handful of young women working on data protection issues at a software company. She is a humanities and cultural studies graduate: She studied French literature, European cultural studies, and Middle Eastern studies, all at the renowned Princeton University in the USA. In 2012, while studying for her master’s degree in public policy at the Hertie School of Governance, she helped organize a conference on the then-planned EU General Data Protection Regulation as a student assistant at the Alexander von Humboldt Institute for Internet and Society (HIIG). Since then, she has not let go of the topic with its legal and cultural facets.

    Shortly after Edward Snowden revealed that Internet users are being spied on by the US Foreign Intelligence Service, Paula Cipierre devoted her master’s thesis to transatlantic privacy governance, then began a Ph.D. in “Media, Culture, and Communication” with a philosopher at New York University – on the topic of how to incorporate legal and normative privacy requirements into the design of new technologies from the outset. This is a topic that otherwise mainly occupies lawyers and computer scientists.

    Interdisciplinary thinking in the business enterprise

    Cipierre put her doctorate on hold at the end of 2016 to join Palantir, first in New York, then in Munich, and finally in Berlin. “I wanted to be closer to the topics I had been researching for years.”

    As the company’s Privacy and Public Policy Officer, her responsibilities now include explaining to government and private customers, as well as the broader public, how Palantir handles data privacy and data ethics in practice: “In both the government and commercial sectors, we work on socially important issues. As a company, we want to communicate transparently: what can our platforms do? And what protections are built into them?”

    Cipierre lives in Berlin and is currently studying information technology law part-time, so she is also continuing her legal education – and still benefits from her first degree, during which she learned French, Spanish, and also Hebrew: “In different languages, people think differently about certain concepts. Programming languages are also languages. Now I help translate legal and ethical principles into our software.” Janna Degener-Storr

    • Data protection
    • Digital policy
    • Digitization
    • European policy

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