The heat pump marketin the EU is growing rapidly. Annual sales could rise to seven million units by 2030, according to estimates by the International Energy Agency (IEA). But European manufacturers are increasingly facing competition from China. Many components already come from the People’s Republic anyway. This brings back memories of the abrupt decline of the German photovoltaic industry. Fifteen years ago, the industry collapsed in the face of low-cost competition from China. Christiane Kühl has written about how large China’s share of the heat pump market already is and what can be done to counter the threat of dependence.
The draft report on electricity market design is to be presented to the EU Parliament as early as May 12. The rapporteur responsible, Nicolás González Casares, has now spoken about his ideas for the first time. In an interview, he spoke out in favor of capacity mechanisms and, on the subject of excess profits, was open to market-based solutions. A reform that is more ambitious than the Commission’s proposals would have to convince not least Germany, Casares said. Manuel Berkel analyzes the rapporteur’s statements.
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Your Sarah Schaefer
Feature
Solar debacle as a reminder for the heat pump industry
Will history repeat itself? After solar systems, another product of the energy transition is coming into focus: heat pumps. German and European manufacturers are internationally competitive and are growing rapidly. But the EU is registering a significant increase in competing products from China. And many components already come from the People’s Republic as it is. Are the emerging players in Germany doomed to meet the same fate as the German photovoltaic industry a good ten years ago?
Just as a reminder: The sector collapsed due to a flood of low-priced – state-subsidized – Chinese manufacturers. The German market share of around 20 percent worldwide virtually crashed after 2008. Many companies went bankrupt, and Bosch disbanded its solar division. The process showed how quickly a solid competitive position can be lost.
Dependence on Chinese components
Most manufacturers are already dependent on imports from outside Europe for key components of their heat pumps. And that very often means China. The dependency mainly affects:
the compressor: the actual pump in the heat pump that compresses a chemical refrigerant that expands again under the influence of the external heat;
the electronic control system and here in particular the
microchips, whose shortage during the pandemic affected many industries.
The Fraunhofer Institute estimates that the Chinese share of the German market for entire systems is about 20 percent. And in the EU, too, the demand is currently served mainly by European manufacturers. The European Commission puts its market share in the EU at 73 percent. Imports from China have increased in the past two years, writes the Brussels agency – but from a low level and against the background of an overall very rapid development. Therefore, the Commission assumes that European manufacturers will continue to lead and will still dominate 60 percent of the EU market in 2030.
Alternative suppliers
The manufacturers did not want to comment on their suppliers when asked by Table.Media. What is clear, however: China’s market takeover once began similarly in the solar industry. “Each heat pump contains eight to ten different types of chips, such as for central control. These chips come from Asia for almost all household appliances, including heat pumps”, says Björn Schreinermacher, head of policy at the German Heat Pump Association (BWP).
There is a debate about whether German industry should set up production facilities for microchips in this country – and if so, for what types of chips, says Schreinermacher. “In principle, however, purchasing differentiation is also possible for non-European imports”, the expert explains, adding that there are signs that alternative suppliers have already been found outside Asia.
German manufacturers invest millions
German manufacturers generated around €2.8 billion in 2022. 236,000 heat pumps sold represented an increase of 53 percent over the previous year. However, the German government is targeting annual sales of 500,000 units to achieve a field inventory of six million pumps.
Meanwhile, the market in the EU is growing faster than any other region in the world, at 35 percent. By 2030, annual sales could rise to seven million units, the International Energy Agency (IEA) expects. That compares with two million in 2021. The targeted volume has aroused covetousness in China – a similar damage for the local industry as once for solar producers included.
German manufacturers, meanwhile, are expanding their capacities by investing millions. Vaillant increased its capacity by 300,000 heat pumps a year to well over half a million units with the opening of a mega-factory in Senica, Slovakia. Viessmann, Europe’s number two manufacturer, plans to invest €1 billion in expanding its production by 2025.
Generous subsidy
“We are in a delicate transition phase, where we also have to look all the time at how competitors are positioning themselves”, says Björn Schreinermacher of BWP. “The fact that European heat pump manufacturers are technology leaders in some areas – especially in water-borne systems – is an advantage at the moment”. But this advantage is not sustainable, he adds, because competitors from Asia and North America are quickly catching up due to subsidies there. What is clear, he said, is that “the negative example of the photovoltaic industry is omnipresent. No one wants to repeat that”.
Just how aggressively China is targeting Europe’s markets could already be seen in air-source heat pumps at the beginning of 2022. Their exports skyrocketed. More than seven times the volume went to Bulgaria alone, five times to Poland, and three times to Italy. The largest heat pump suppliers in the People’s Republic include household appliance manufacturers such as Gree, Midea and Haier.
Many components already come from Asia
The technology is also booming in the People’s Republic itself: According to the IEA, around 13 million heat pumps were installed there in 2021. According to the BWP, the country’s manufacturers are generously subsidized – as, incidentally, are manufacturers in the USA. European suppliers, however, play virtually no role in the People’s Republic. In Europe, the companies, which are often small or medium-sized, rely on direct subsidies. For projects in the general EU interest (IPCEI), Brussels allows such direct funding.
Many compressors or their components already come from Asia anyway, but also from North America. “This supplier industry cannot be rebuilt in the short term”, says Schreinermacher. “But this is also a beginning. One possibility would be consortia that build something together”. But even in these projects to build up an entire supplier industry, start-up support is very important, he says. With Till Hoppe
Separate remuneration for flexible power plants may yet become part of the European electricity market reform. “We also want to introduce capacity mechanisms that are not sufficiently included in the Commission’s proposal and that ensure remuneration for technologies that help with flexibility and storage”, said the responsible rapporteur of the EU Parliament, Nicolás González Casares (S&D), in an interview with the Spanish online medium “El Diario” on the weekend.
Up to now, capacity markets have mostly been seen as a means of promoting new natural gas and hydrogen power plants if they cannot or should not be refinanced through price peaks on the regular energy market. In this case, the provision of secured capacities would be remunerated.
Commission wants to exclude power plant subsidies
Due to its complexity, the EU Commission excluded this topic from its proposal for electricity market reform. It only envisages an obligation for those member states that have already introduced capacity mechanisms to open these up to load management and storage and permission to introduce new support mechanisms for non-fossil flexibilities if required.
Casares wants to focus capacity mechanisms on storage technologies such as pumped storage and large-scale batteries. Hydrogen for reverse power generation will not be available in sufficient quantities until after 2028-2030.
The EPP is also open to a discussion on capacity markets. Last week, the shadow rapporteur Maria da Graça Carvalho had already said that the group’s internal opinion-forming process had not yet been completed.
Electricity price brake not only for financially strong states
On the issue of excess profits, Casares is open to market-based solutions. “What the Commission is proposing would not help in a crisis similar to the last one, and besides, some of what it is proposing is for aid programs in countries that have a lot of financial power, like Germany“, Casares criticizes.
The Commission wants to make the skimming of excess profits from renewables and nuclear power plants mandatory only for new plants – through Contracts for Difference (CfDs). In the event of an energy crisis, member states are also to be given the option of setting regulated retail prices not only for low-income households but also for SMEs.
Electricity grid to dampen price differences
“There must be a solution that applies to all European countries and not just a few countries with a lot of money”, Casares now countered. An “important element” would be interconnectors to other EU countries. At the last meeting of EU energy ministers, the Greek government introduced an initiative to strengthen the expansion of transmission lines – Germany is also lagging behind in the expansion of the transmission network, which is essential for uniformly high electricity prices in the EU.
The EPP also supports a stronger emphasis on network infrastructure in the reform, da Graça Carvalho had said. Among other things, faster approvals and better European coordination of investments are necessary.
Casares wants to win over federal government for more far-reaching reform
Regarding excess profits from renewables, Casares says, “You can build in elements to mitigate that in an emergency, but you can also do it in the normal market“. To do that, he said, more generation must be remunerated through long-term PPAs, CfDs, or even capacity markets.
In this way, the Spaniard aligns important elements of the reform with the Commission’s approach. However, Casares also campaigned for more far-reaching approaches – for example, to make long-term supply contracts (PPAs) accessible to SMEs and household customers as well. “If I want a reform that is a bit broader, deeper and more ambitious than the Commission’s proposals, I have to convince the political groups, the stakeholders, in this case the industry, and of course Germany”, the MEP explains. The German government had initially put the brakes on the reform, but after the publication of the rather mild Commission proposal, it already showed itself open to a quick adoption.
Parliament to vote in mid-September
As early as May 12, Casares and da Graça Carvalho, as rapporteurs for the REMIT market transparency regulation, plan to present their draft reports. A first discussion in the Industry Committee (ITRE) is scheduled for May 22, as a parliamentary spokesman confirmed.
The ITRE is to vote on the electricity market package as early as July 19 and on REMIT on Sept. 7. The final vote in plenary is scheduled for Sept. 11. If the trilogues cannot be concluded by the end of the year under the Spanish Council Presidency, all the institutions involved aim to complete the reform by February – i.e. before the end of the current legislative term, according to Casares.
Electricity market
Electricity price
Hydrogen
ITRE
Renewable energies
Events
April 19, 2023; 9:30 a.m.-3 p.m., Warsaw (Poland)/online ECFR, ConferenceEuropean energy security: One year into Russia’s war in Ukraine The European Council on Foreign Relations (ECFR) hosts this conference to reflect on how the events of recent months are affecting energy security in Europe, diagnose energy deficits and draw lessons from the crisis for enhancing Europe’s energy resilience.INFO & REGISTRATION
April 19, 2023; 3-6:30 p.m., online EUI, SeminarReshuffling the connectivity ecosystem The European University Institute (EUI) invites experts from academia and industry to discuss the future of the electronic communications sector from a broad perspective that includes various stakeholders and segments of the digital ecosystem.INFO & REGISTRATION
April 20-21, 2023; Trier/online ERA, SeminarPayment Systems and Services – Review of EU Rules and Beyond The Academy of European Law (ERA) provides an analysis of payment systems and services, as well as an update on the regulatory framework and addresses current issues.INFO & REGISTRATION
April 20, 2023; 2:30-5 p.m., Brussels (Belgium)/online ERCST, ConferenceEU CCUS policy: Net-Zero Industry Act & upcoming Commission’s Communication The European Roundtable on Climate Change and Sustainable Transition (ERCST) explores the growing importance of and upcoming European Commission’s strategy on Carbon Capture, Utilisation and Storage (CCUS) technology. INFO & REGISTRATION
News
EU taxonomy: NGOs file lawsuits
Greenpeace and a group of other NGOs today filed lawsuits against the EU Commission at the European Court of Justice in Luxembourg. Greenpeace Germany and seven other Greenpeace country offices are suing against the inclusion of nuclear power and natural gas in the EU taxonomy, while ClientEarth, WWF EU, Friends of the Earth Germany (BUND) and Transport & Environment are focusing on fossil gas in their lawsuit.
They thus refer to the delegated act declaring investments in certain nuclear power and natural gas plants to be sustainable and in line with the Taxonomy Regulation. This came into force on Jan. 1, 2023. This is the first time NGOs have exercised their right of access to justice in environmental matters under the recently amended Aarhus Regulation. “If Greenpeace wins, this will certainly set a precedent for further lawsuits of this kind“, a spokeswoman said.
Calling natural gas and nuclear energy environmentally sustainable contradicts the taxonomy regulation itself, the environmental organizations said. “The EU Commission must not dress up the problem as a solution. Nuclear and gas cannot be sustainable“, said Nina Treu, Executive Director of Greenpeace Germany. “Green money must not be misused for industries that led us into the nature and climate crisis in the first place. It must flow into renewable energies and the sustainable transformation towards a social-ecological economy”.
‘Commission violates basic tenets of taxonomy’
“With the lawsuit, we show that the EU Commission simply has no authorization from the EU legislator to label fossil gas and nuclear power as sustainable”, says lawyer Roda Verheyen, who is representing Greenpeace in the proceedings. “The EU Commission thus even violates the basic idea of the Taxonomy Regulation: Only very few technologies are to receive the green label according to it – and nuclear power in particular is neither an aid in the transition to greenhouse gas neutrality nor free of significant environmental risks”.
In September, the eight Greenpeace offices lodged a formal objection to the Commission’s decision and announced that they would appeal to the ECJ if the EU Commission did not revise the relevant delegated act. In February, the Commission rejected the appeal.
The duration of the proceedings is estimated at several years. In October, Austria had alsofiled a complaintwith the General Court of the European Union against the decision to include nuclear power and natural gas in the taxonomy. leo
Natural gas
Nuclear power
Taxonomy
EP Budget Committee calls for new sources
The European Parliament’s Budget Committee is calling for new sources of revenue for the EU. MEPs voted on Monday evening on a draft by rapporteurs Valérie Hayer (Renew) and José Manuel Fernandes (EPP), which advocates a number of new own resources for the EU budget:
an EU-wide tax on financial transactions,
the taxation of share buybacks by companies,
a European tax on cryptocurrencies,
a tax on waste, especially food waste.
MEPs are thus increasing the pressure on the EU Commission and member states. Budget Commissioner Johannes Hahn had proposed three new revenue sources at the end of 2021to secure repayment of the bond-financed Corona reconstruction program. However, negotiations on the proposed revenue sources from European emissions trading, CO2 Border Adjustment Schemes and the global minimum tax are stalling.
In the view of the Budget Committee, the EU still needs further sources of revenue to meet its many responsibilities. It is high time for the Commission to present a new own resources package, said Rasmus Andresen, the Greens’ housekeeper. “The more and better targeted own resources are used, the less will have to be transferred to Brussels from national budgets”. The European Parliament plenary is expected to vote on the report inMay. tho
EU Budget
European policy
Parliament to reform parliamentary pensions
The pension arrangements for MEPs are to be reformed. According to information acquired by Table.Media, an initial orientation debate took place Monday evening in the Parliament’s Bureau without a decision being made. The body includes Parliament President Roberta Metsola, the 14 vice presidents and the five quaestors responsible for finance.
According to reports, the Executive Board has three options for reform. The issue is what to do with a fund from which pension payments are made and whose financial sources are in danger of being exhausted.
Table.Media was able to view the table document. These are the three options mentioned:
No action: the fund would use up its capital, Parliament would most likely be forced to take on the payment obligations.
A one-time final payment is to be offered to all beneficiaries. Beneficiaries could then opt out of the system on a voluntary basis. Contributors who have not yet reached retirement age already have the option of opting out for a one-off payment.
Four measures are being considered to reduce the running deficits and increase the longevity of the fund: reducing the nominal amount of all pension entitlements; increasing the rate of the special levy for all beneficiaries; freezing the annual indexation of pension payments for all beneficiaries; raising the retirement age for those who have not yet retired. mgr
European Parliament
European policy
Standard essential patents: Commission proposal on the line
Following massive lobbying activities, it appears to be touch and go whether the Commission will present its proposal on standard essential patents (SEP) as planned on April 26. According to reports, the College of Commissioners will decide at its meeting in Strasbourg today whether to stick to the original schedule or to revise the proposal once again.
SEPs are patents that are essential for the use of a particular technology. One example is patents for mobile communications. The holders of SEP rights are obliged to license the patents on “fair, reasonable and non-discriminatory terms” (FRAND). There had recently been repeated disputes between the holders and the users about the conditions, which were fought out in the courts.
Many SEP holders disappointed
A draft of the Commission for SEP regulation, which is available to Table.Media, provides for the creation of an evaluation body for patents. In addition, a mediation process would have to take place before legal action is taken. When the proposal became known, it triggered a divided response. The camp of SEP users, such as many automotive companies, welcomed it. Many companies that own SEP were disappointed.
These include, in particular, the two European network equipment suppliers Nokia and Ericsson: these reportedly sent letters to all 27 Commissioners to protest vehemently against the Commission proposal. Further letters – this time from SEP users – followed when it became known that the Commission was considering shelving the proposal. mgr
EU
European Commission
AI Act: rapporteurs call for global AI summit
The AI Act rapporteurs call on Commission President Ursula von der Leyen, US President Joe Biden and governments of other countries to swiftly establish provisional principles for the development, control and use of very powerful artificial intelligence. The call by co-rapporteurs Dragoş Tudorache (Renew) and Brando Benifei (S&D) has also been signed by the shadow rapporteurs of the other political groups.
Signatories consider supplementary set of rules necessary
If everything goes according to plan, the MEPs want to conclude their negotiations on the AI Act this Wednesday. This will allow them to meet the deadlines for the votes in the committees (April 26) and in the plenary (May 31). It is not only parliamentarians who expect that the AI Act could serve as ablueprint for other regulatory initiatives around the world.
Tudorache and Benifei are referring to the Future of Life Institute‘s call for a six-month moratorium on the development of powerful AI. Public access to powerful AI, as well as exponential increases in performance, had also caused them to “pause and reflect on our work”. They are now convinced, they said, that in addition to the AI Act, “a complementary set of regulations is needed for the development and deployment of powerful general-use AI systems“.
AI deserves more political attention
While they do not agree with the alarmist statements of the Future of Life Institute, they do see the need for significant policy attention given the rapid development of powerful AI. Inaction will “widen the gap between AI development and our ability to manage it”.
Among other things, the signatories state:
that they want to create a set of rules under the AI Act that is specifically tailored to those AI models that are geared towards general purposes.
that they call on Commission President Ursula von der Leyen and US President Joe Biden to convene a high-level global AI Summit to agree on a tentative set of principles for the development, governance and deployment of very powerful artificial intelligence.
that they urge the Directors of the Trade and Technology Council (TTC) to agree on a tentative agenda for the aforementioned Artificial Intelligence Summit at the upcoming TTC meeting. The European Parliament and the US Congress should be involved in this.
that they call on other countries, but also companies, to step up their efforts to regulate or develop safe and trustworthy AI. vis
Artificial intelligence
Artificial Intelligence Regulation
Digital policy
Digitization
Technology geopolitics: Schaake becomes special advisor to Vestager
Marietje Schaake, a long-time member of the European Parliament, is to assist EU Commission Vice-President Margarethe Vestager as a special advisor on technology geopolitics. The Dutchwoman made the announcement yesterday on her Twitter account. She is looking forward to the cooperation, Vestager said on the platform.
Schaake played a key role in geopolitical trade and technology policy issues during her time in the European Parliament from 2009 to 2019. Among other things, she was rapporteur for an EP report in 2015 on the export control of surveillance technologies to third countries. She regularly criticized undesirable developments at the intersection of the two areas, such as the once-planned Anti-Counterfeiting Trade Agreement (ACTA), which later failed. In 2019, the liberal D66 politician did not run again for the EP.
In 2020, Schaake went to Stanford University and has since been researching and teaching at its Cyber Policy Center on the regulation of technology such as AI, big-tech competition controls, deep fakes, disinformation, and spyware. Schaake is taking on the new role in addition to her work at Stanford. fst
Digital policy
Court of Auditors denounces animal transports
Every year, billions of live animals are transported within the EU and to or from third countries, and the trend is rising. In the process, the applicable animal welfare regulationsare not always complied with. This is the result of an analysis published by the European Court of Auditors (ECA) on Monday. The question is whether the standards and the sanctions for such violations are appropriate, it states.
Producers would often deliberately accept longer distances in order to avoid penalties. This is because the applicable animal welfare regulations during transport would not be implemented uniformly by the EU states. Accordingly, the cost benefitscould exceed the expected penalties in some countries and violations would be worthwhile, the ECA said.
Factor animal suffering into transportation costs
According to the analysis, one-third of the transports take more than eighthours, and four percent take more than 24 hours. “Transporting live animals over long distances can have a negative impact on animal welfare”, says ECA agricultural expert Eva Lindström. The animals are exposed to stress during loading, she says. During transport, they may suffer from hunger, thirst, heat and lack of space.
In the upcoming amendment of EU animal welfare regulations, attention must be paid to limiting the number and duration of transports and improving transport conditions, the ACA demands. The use of local slaughterhouses and mobile facilities could contribute to this and is more environmentally friendly.
The ECA also proposes that animal suffering be priced into transport costs and taken into account in meat prices, and that greater transparency be provided through an EU-wide animal welfare labeling system.
BMEL: ban transports to third countries
Particularly problematic: transports to third countries, where standards are in some cases considerably lower than in the EU. Germany is therefore campaigning to ban transports to non-EU countries altogether. Minister of Food and Agriculture Cem Özdemir is receiving support from his colleagues in Austria, Denmark, Luxembourg and the Netherlands.
Most EU countries, however, are against it. However, a national solo effort is out of the question, “because no animal is helped if it is first brought to another member state in order to be exported from there to a third country”, according to the BMEL.
A year ago, the EU Parliament called for better protection of animals during transport. Little has happened so far. Now the Commission has announced that it will present a proposal by the end of the year. However, insiders fear that the upcoming European elections in spring 2024 could thwart the plans. til
Agricultural Policy
Agriculture
European policy
Timmermans delays China trip
After the High Representative of the EU for Foreign Affairs Josep Borrell, the Climate Commissioner Frans Timmermans has also had to postpone a planned trip to China due to contracting COVID-19. A spokesman confirmed that the trip would be made up as soon as possible. The Dutch politician would have met with China’s climate czar Xie Zhenhua. Borrell also had to cancel his trip to Beijing last week because of an infection with the Coronavirus. He was also absent from the G7 foreign ministers’ meeting in Japan on Monday.
The travel activities of EU representatives to China have recently received special attention after EU Commission chief Ursula von der Leyen and French President Emmanuel Macron visited Beijing the previous week – and did not necessarily shine with a unified approach. While von der Leyen maintained the more critical tone of her keynote speech, Macron sought to emphasize European “strategic autonomy” between China and the United States. Macron also faced criticism for his statements on Taiwan. The joint visit raised more questions about EU-China policy than it provided answers.
Parliament debate
Today, Tuesday, the EU’s relationship with China will be the subject of a general debate in the European Parliament. He sees that Europe is gradually coming to a more realistic attitude towards China, said the Green Party’s European politician Reinhard Bütikofer on Monday with a view to the debate.
A “mainstream” with a “sober tone” is emerging, which Bütikofer sees represented in von der Leyen, German Minister for Foreign Affairs Annalena Baerbock and EU Foreign Affairs Commissioner Josep Borrell. EU Council President Charles Michel is more in line with this than Macron. EU Commission President von der Leyen will take part in the debate.
G7 warning
At their meeting in Karuizawa, Japan, the G7 countries issued a clear warning to China. In the event of aggression against Taiwan, the People’s Republic must expect harsh consequences. The seven foreign ministers agreed on this at their meeting on Monday. They would resolutely oppose any violent change in the status quo in the Taiwan Strait.
“We will oppose any coercion, market manipulation or efforts to change the status quo in the Taiwan Strait“, Reuters news agency quoted an official from the US delegation as saying.
Minister Baerbock stressed that one could “feel very closely how China increasingly wants to replace the existing, general, binding, international rules with its own rules, gladly with the claim that there are no rules, although it has ratified the treaties itself”. Already during her visit to China, she called it a “horror scenario” should a military conflict break out in the Taiwan Strait. ari/rad
China
G7
CDU leadership supports von der Leyen’s possible further term in office
The CDU leadership is in favor of a possible further term of office for EU Commission President Ursula von der Leyen. “She has our support if she is willing to do so”, party leader Friedrich Merz said in Berlin on Monday after a CDU presidium meeting, which was also attended by von der Leyen.
Merz went on to say that he had informed Chancellor Olaf Scholz (SPD) of her visit to CDU headquarters, and that this was linked to the wish that von der Leyen be proposed from Germany if she were available for another term. This had been supported by everyone in the CDU presidium.
The EU recently passed the test of standing together and taking joint decisions, also in view of the war against Ukraine, Merz said. It was thanks in particular to the Commission and its President that this had succeeded in many areas.
No decision yet
Von der Leyen said she has not yet made her decision. She added that the European elections were still more than a year away. For her, it is important that the EU institutions work as one in these critical times, she said. “Therefore, at the moment it is not the right time for me to answer this question for a next mandate”, the 64-year-old said. It will be dealt with in the relevant party bodies when the time is right, she added.
SPD, FDP and Greens have agreed in the coalition agreement that the right to propose the German commissioner lies with the Greens, “provided that the Commission President does not come from Germany”. dpa
EU
European Commission
Macron wants to pacify France with 100-day plan
After months of protests in France against pension reform, President Emmanuel Macron has declared a 100-day program to bring the country together. Prime Minister Élisabeth Borne is to present proposals on working conditions, security, education and health issues, Macron said Monday.
“We must be able to take stock on July 14”, he said, referring to France’s national holiday. “Ahead of us are 100 days of appeasement, unity, ambition and action for France”. Macron said he regretted that the pension reforms were not supported by a broad majority. “Is this reform accepted? Obviously not. Despite months of talks, no consensus could be found, which I regret. We must all learn lessons from this”, he said.
In an initial reaction, the head of the country’s largest union, Laurent Berger of the CFDT, said the speech did not address the anger of the country’speople. “There is just a kind of emptiness, it does not contain anything, we expected something else”, he said. Unions said there will be no talks with the government on other issues without a rollback of the controversial pension reform.
On Friday, the Constitutional Council approved the core of the reform. Borne had used a constitutional trick to get it through Parliament without a vote. According to polls, a large majority of the French reject the changes. rtr
Heads
Toomas Hendrik Ilves – Estonia’s dedicated critic of Germany
Toomas Hendrik Ilves, former President of Estonia (2006 to 2016).
Out of pure politeness, Toomas Hendrik Ilves pockets the offered business card. The president of Estonia from 2006 to 2016 can’t hide the fact that he doesn’t think much of this German fad – why use paper when you can go digital? And to prove it, he holds out his smartphone with a QR code as a business card.
The fact that Estonia is now one of the countries with the highest level of digitization and the best in terms of cybersecurity also has to do with Ilves, a forward thinker. When the Estonian, who was born in Sweden in 1953 and grew up in the United States, became president of the then-still-young republic in 2006, he was already able to build on solid, advanced digitization in the country. But when his country’s digital administration falls victim to a cyberattack from Russia lasting several weeks in 2007, it is clear that cyberspace has become the domain of warfare.
Networking for cybersecurity
As a result, in 2007, under his presidency, NATO’s Cooperative Cyber Defence Centre of Excellence (CCDCOE) was established in Estonia’s capital Tallinn. Since then, capabilities and information in the field of cyber defense, training, research and development have been pooled there among the member states of the Western defense alliance.
Ilves is passionately critical of the slow progress of digitization in Germany and the German government’s stance on Russia, and he likes to give voice to these thoughts on his Twitter account. He can speak from his own experience, having lived in Munich himself from 1984 to 1993, where he worked as a journalist for Radio Free Europe.
He then served as Estonia’s ambassador to the US, Canada and Mexico, based in Washington; he was Foreign Minister in Tallinn from 1996 until his resignation in 1998 and again from 1999 to 2002. After Estonia joined the EU in 2004, he went to Brusselsfor two years as an MEP before his two terms as president of Estonia.
No glorified view of Russia
What bothers him massively in Germany is that the local press still writes about “Estonia, the former Soviet republic”, a time long gone. And he does not hold back his anger about the naivety of German and other Western European politicians with regard to Russia.
“I sat in the front row at Vladimir Putin’s famous speech at the Munich Security Conference in 2007. What was interesting was not what he said, but how shocked everyone from Western Europe was – and we from Eastern Europe said, why are you shocked?” The right consequences, he said, were never drawn.
He and other Eastern European politicians, such as former Polish Parliament Speaker Radosław Sikorski, had said even before the 2022 Munich Security Conference that Russia would invade Ukraine. Instead of believing them, they were called warmongers, for example by French President Emmanuel Macron. “We don’t have a glorified view of Russia based on Tolstoy or Dostoevsky. That’s all very nice, but it’s not our reality”, Ilves explains.
Insight from German politics is lacking
Concerning German politics, above all from the CDU and SPD, there is a lack of significant voices saying that the Russia course of the past decades was not the right one. He also has little to say about Merkel’s policies. “Merkel to this day thinks she did everything right. I mean, if you sign Nord Stream 2 a year after the Crimea annexation, and today you say you don’t regret anything… Well, fine”.
Nevertheless, Estonia has gained self-confidence, also due to good ideas from Estonia’s Prime Minister Kaja Kallas. The latter had proposed joint munitions procurement in the EU at the Munich Security Conference in February. “It would be good if the Germans would now join in with all their might”, Ilves says.
What he doesn’t criticize about Germany is the food. Leberkäse, Weißwurst and Obazda are among his favorite foods. Lisa-Martina Klein
The heat pump marketin the EU is growing rapidly. Annual sales could rise to seven million units by 2030, according to estimates by the International Energy Agency (IEA). But European manufacturers are increasingly facing competition from China. Many components already come from the People’s Republic anyway. This brings back memories of the abrupt decline of the German photovoltaic industry. Fifteen years ago, the industry collapsed in the face of low-cost competition from China. Christiane Kühl has written about how large China’s share of the heat pump market already is and what can be done to counter the threat of dependence.
The draft report on electricity market design is to be presented to the EU Parliament as early as May 12. The rapporteur responsible, Nicolás González Casares, has now spoken about his ideas for the first time. In an interview, he spoke out in favor of capacity mechanisms and, on the subject of excess profits, was open to market-based solutions. A reform that is more ambitious than the Commission’s proposals would have to convince not least Germany, Casares said. Manuel Berkel analyzes the rapporteur’s statements.
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Your Sarah Schaefer
Feature
Solar debacle as a reminder for the heat pump industry
Will history repeat itself? After solar systems, another product of the energy transition is coming into focus: heat pumps. German and European manufacturers are internationally competitive and are growing rapidly. But the EU is registering a significant increase in competing products from China. And many components already come from the People’s Republic as it is. Are the emerging players in Germany doomed to meet the same fate as the German photovoltaic industry a good ten years ago?
Just as a reminder: The sector collapsed due to a flood of low-priced – state-subsidized – Chinese manufacturers. The German market share of around 20 percent worldwide virtually crashed after 2008. Many companies went bankrupt, and Bosch disbanded its solar division. The process showed how quickly a solid competitive position can be lost.
Dependence on Chinese components
Most manufacturers are already dependent on imports from outside Europe for key components of their heat pumps. And that very often means China. The dependency mainly affects:
the compressor: the actual pump in the heat pump that compresses a chemical refrigerant that expands again under the influence of the external heat;
the electronic control system and here in particular the
microchips, whose shortage during the pandemic affected many industries.
The Fraunhofer Institute estimates that the Chinese share of the German market for entire systems is about 20 percent. And in the EU, too, the demand is currently served mainly by European manufacturers. The European Commission puts its market share in the EU at 73 percent. Imports from China have increased in the past two years, writes the Brussels agency – but from a low level and against the background of an overall very rapid development. Therefore, the Commission assumes that European manufacturers will continue to lead and will still dominate 60 percent of the EU market in 2030.
Alternative suppliers
The manufacturers did not want to comment on their suppliers when asked by Table.Media. What is clear, however: China’s market takeover once began similarly in the solar industry. “Each heat pump contains eight to ten different types of chips, such as for central control. These chips come from Asia for almost all household appliances, including heat pumps”, says Björn Schreinermacher, head of policy at the German Heat Pump Association (BWP).
There is a debate about whether German industry should set up production facilities for microchips in this country – and if so, for what types of chips, says Schreinermacher. “In principle, however, purchasing differentiation is also possible for non-European imports”, the expert explains, adding that there are signs that alternative suppliers have already been found outside Asia.
German manufacturers invest millions
German manufacturers generated around €2.8 billion in 2022. 236,000 heat pumps sold represented an increase of 53 percent over the previous year. However, the German government is targeting annual sales of 500,000 units to achieve a field inventory of six million pumps.
Meanwhile, the market in the EU is growing faster than any other region in the world, at 35 percent. By 2030, annual sales could rise to seven million units, the International Energy Agency (IEA) expects. That compares with two million in 2021. The targeted volume has aroused covetousness in China – a similar damage for the local industry as once for solar producers included.
German manufacturers, meanwhile, are expanding their capacities by investing millions. Vaillant increased its capacity by 300,000 heat pumps a year to well over half a million units with the opening of a mega-factory in Senica, Slovakia. Viessmann, Europe’s number two manufacturer, plans to invest €1 billion in expanding its production by 2025.
Generous subsidy
“We are in a delicate transition phase, where we also have to look all the time at how competitors are positioning themselves”, says Björn Schreinermacher of BWP. “The fact that European heat pump manufacturers are technology leaders in some areas – especially in water-borne systems – is an advantage at the moment”. But this advantage is not sustainable, he adds, because competitors from Asia and North America are quickly catching up due to subsidies there. What is clear, he said, is that “the negative example of the photovoltaic industry is omnipresent. No one wants to repeat that”.
Just how aggressively China is targeting Europe’s markets could already be seen in air-source heat pumps at the beginning of 2022. Their exports skyrocketed. More than seven times the volume went to Bulgaria alone, five times to Poland, and three times to Italy. The largest heat pump suppliers in the People’s Republic include household appliance manufacturers such as Gree, Midea and Haier.
Many components already come from Asia
The technology is also booming in the People’s Republic itself: According to the IEA, around 13 million heat pumps were installed there in 2021. According to the BWP, the country’s manufacturers are generously subsidized – as, incidentally, are manufacturers in the USA. European suppliers, however, play virtually no role in the People’s Republic. In Europe, the companies, which are often small or medium-sized, rely on direct subsidies. For projects in the general EU interest (IPCEI), Brussels allows such direct funding.
Many compressors or their components already come from Asia anyway, but also from North America. “This supplier industry cannot be rebuilt in the short term”, says Schreinermacher. “But this is also a beginning. One possibility would be consortia that build something together”. But even in these projects to build up an entire supplier industry, start-up support is very important, he says. With Till Hoppe
Separate remuneration for flexible power plants may yet become part of the European electricity market reform. “We also want to introduce capacity mechanisms that are not sufficiently included in the Commission’s proposal and that ensure remuneration for technologies that help with flexibility and storage”, said the responsible rapporteur of the EU Parliament, Nicolás González Casares (S&D), in an interview with the Spanish online medium “El Diario” on the weekend.
Up to now, capacity markets have mostly been seen as a means of promoting new natural gas and hydrogen power plants if they cannot or should not be refinanced through price peaks on the regular energy market. In this case, the provision of secured capacities would be remunerated.
Commission wants to exclude power plant subsidies
Due to its complexity, the EU Commission excluded this topic from its proposal for electricity market reform. It only envisages an obligation for those member states that have already introduced capacity mechanisms to open these up to load management and storage and permission to introduce new support mechanisms for non-fossil flexibilities if required.
Casares wants to focus capacity mechanisms on storage technologies such as pumped storage and large-scale batteries. Hydrogen for reverse power generation will not be available in sufficient quantities until after 2028-2030.
The EPP is also open to a discussion on capacity markets. Last week, the shadow rapporteur Maria da Graça Carvalho had already said that the group’s internal opinion-forming process had not yet been completed.
Electricity price brake not only for financially strong states
On the issue of excess profits, Casares is open to market-based solutions. “What the Commission is proposing would not help in a crisis similar to the last one, and besides, some of what it is proposing is for aid programs in countries that have a lot of financial power, like Germany“, Casares criticizes.
The Commission wants to make the skimming of excess profits from renewables and nuclear power plants mandatory only for new plants – through Contracts for Difference (CfDs). In the event of an energy crisis, member states are also to be given the option of setting regulated retail prices not only for low-income households but also for SMEs.
Electricity grid to dampen price differences
“There must be a solution that applies to all European countries and not just a few countries with a lot of money”, Casares now countered. An “important element” would be interconnectors to other EU countries. At the last meeting of EU energy ministers, the Greek government introduced an initiative to strengthen the expansion of transmission lines – Germany is also lagging behind in the expansion of the transmission network, which is essential for uniformly high electricity prices in the EU.
The EPP also supports a stronger emphasis on network infrastructure in the reform, da Graça Carvalho had said. Among other things, faster approvals and better European coordination of investments are necessary.
Casares wants to win over federal government for more far-reaching reform
Regarding excess profits from renewables, Casares says, “You can build in elements to mitigate that in an emergency, but you can also do it in the normal market“. To do that, he said, more generation must be remunerated through long-term PPAs, CfDs, or even capacity markets.
In this way, the Spaniard aligns important elements of the reform with the Commission’s approach. However, Casares also campaigned for more far-reaching approaches – for example, to make long-term supply contracts (PPAs) accessible to SMEs and household customers as well. “If I want a reform that is a bit broader, deeper and more ambitious than the Commission’s proposals, I have to convince the political groups, the stakeholders, in this case the industry, and of course Germany”, the MEP explains. The German government had initially put the brakes on the reform, but after the publication of the rather mild Commission proposal, it already showed itself open to a quick adoption.
Parliament to vote in mid-September
As early as May 12, Casares and da Graça Carvalho, as rapporteurs for the REMIT market transparency regulation, plan to present their draft reports. A first discussion in the Industry Committee (ITRE) is scheduled for May 22, as a parliamentary spokesman confirmed.
The ITRE is to vote on the electricity market package as early as July 19 and on REMIT on Sept. 7. The final vote in plenary is scheduled for Sept. 11. If the trilogues cannot be concluded by the end of the year under the Spanish Council Presidency, all the institutions involved aim to complete the reform by February – i.e. before the end of the current legislative term, according to Casares.
Electricity market
Electricity price
Hydrogen
ITRE
Renewable energies
Events
April 19, 2023; 9:30 a.m.-3 p.m., Warsaw (Poland)/online ECFR, ConferenceEuropean energy security: One year into Russia’s war in Ukraine The European Council on Foreign Relations (ECFR) hosts this conference to reflect on how the events of recent months are affecting energy security in Europe, diagnose energy deficits and draw lessons from the crisis for enhancing Europe’s energy resilience.INFO & REGISTRATION
April 19, 2023; 3-6:30 p.m., online EUI, SeminarReshuffling the connectivity ecosystem The European University Institute (EUI) invites experts from academia and industry to discuss the future of the electronic communications sector from a broad perspective that includes various stakeholders and segments of the digital ecosystem.INFO & REGISTRATION
April 20-21, 2023; Trier/online ERA, SeminarPayment Systems and Services – Review of EU Rules and Beyond The Academy of European Law (ERA) provides an analysis of payment systems and services, as well as an update on the regulatory framework and addresses current issues.INFO & REGISTRATION
April 20, 2023; 2:30-5 p.m., Brussels (Belgium)/online ERCST, ConferenceEU CCUS policy: Net-Zero Industry Act & upcoming Commission’s Communication The European Roundtable on Climate Change and Sustainable Transition (ERCST) explores the growing importance of and upcoming European Commission’s strategy on Carbon Capture, Utilisation and Storage (CCUS) technology. INFO & REGISTRATION
News
EU taxonomy: NGOs file lawsuits
Greenpeace and a group of other NGOs today filed lawsuits against the EU Commission at the European Court of Justice in Luxembourg. Greenpeace Germany and seven other Greenpeace country offices are suing against the inclusion of nuclear power and natural gas in the EU taxonomy, while ClientEarth, WWF EU, Friends of the Earth Germany (BUND) and Transport & Environment are focusing on fossil gas in their lawsuit.
They thus refer to the delegated act declaring investments in certain nuclear power and natural gas plants to be sustainable and in line with the Taxonomy Regulation. This came into force on Jan. 1, 2023. This is the first time NGOs have exercised their right of access to justice in environmental matters under the recently amended Aarhus Regulation. “If Greenpeace wins, this will certainly set a precedent for further lawsuits of this kind“, a spokeswoman said.
Calling natural gas and nuclear energy environmentally sustainable contradicts the taxonomy regulation itself, the environmental organizations said. “The EU Commission must not dress up the problem as a solution. Nuclear and gas cannot be sustainable“, said Nina Treu, Executive Director of Greenpeace Germany. “Green money must not be misused for industries that led us into the nature and climate crisis in the first place. It must flow into renewable energies and the sustainable transformation towards a social-ecological economy”.
‘Commission violates basic tenets of taxonomy’
“With the lawsuit, we show that the EU Commission simply has no authorization from the EU legislator to label fossil gas and nuclear power as sustainable”, says lawyer Roda Verheyen, who is representing Greenpeace in the proceedings. “The EU Commission thus even violates the basic idea of the Taxonomy Regulation: Only very few technologies are to receive the green label according to it – and nuclear power in particular is neither an aid in the transition to greenhouse gas neutrality nor free of significant environmental risks”.
In September, the eight Greenpeace offices lodged a formal objection to the Commission’s decision and announced that they would appeal to the ECJ if the EU Commission did not revise the relevant delegated act. In February, the Commission rejected the appeal.
The duration of the proceedings is estimated at several years. In October, Austria had alsofiled a complaintwith the General Court of the European Union against the decision to include nuclear power and natural gas in the taxonomy. leo
Natural gas
Nuclear power
Taxonomy
EP Budget Committee calls for new sources
The European Parliament’s Budget Committee is calling for new sources of revenue for the EU. MEPs voted on Monday evening on a draft by rapporteurs Valérie Hayer (Renew) and José Manuel Fernandes (EPP), which advocates a number of new own resources for the EU budget:
an EU-wide tax on financial transactions,
the taxation of share buybacks by companies,
a European tax on cryptocurrencies,
a tax on waste, especially food waste.
MEPs are thus increasing the pressure on the EU Commission and member states. Budget Commissioner Johannes Hahn had proposed three new revenue sources at the end of 2021to secure repayment of the bond-financed Corona reconstruction program. However, negotiations on the proposed revenue sources from European emissions trading, CO2 Border Adjustment Schemes and the global minimum tax are stalling.
In the view of the Budget Committee, the EU still needs further sources of revenue to meet its many responsibilities. It is high time for the Commission to present a new own resources package, said Rasmus Andresen, the Greens’ housekeeper. “The more and better targeted own resources are used, the less will have to be transferred to Brussels from national budgets”. The European Parliament plenary is expected to vote on the report inMay. tho
EU Budget
European policy
Parliament to reform parliamentary pensions
The pension arrangements for MEPs are to be reformed. According to information acquired by Table.Media, an initial orientation debate took place Monday evening in the Parliament’s Bureau without a decision being made. The body includes Parliament President Roberta Metsola, the 14 vice presidents and the five quaestors responsible for finance.
According to reports, the Executive Board has three options for reform. The issue is what to do with a fund from which pension payments are made and whose financial sources are in danger of being exhausted.
Table.Media was able to view the table document. These are the three options mentioned:
No action: the fund would use up its capital, Parliament would most likely be forced to take on the payment obligations.
A one-time final payment is to be offered to all beneficiaries. Beneficiaries could then opt out of the system on a voluntary basis. Contributors who have not yet reached retirement age already have the option of opting out for a one-off payment.
Four measures are being considered to reduce the running deficits and increase the longevity of the fund: reducing the nominal amount of all pension entitlements; increasing the rate of the special levy for all beneficiaries; freezing the annual indexation of pension payments for all beneficiaries; raising the retirement age for those who have not yet retired. mgr
European Parliament
European policy
Standard essential patents: Commission proposal on the line
Following massive lobbying activities, it appears to be touch and go whether the Commission will present its proposal on standard essential patents (SEP) as planned on April 26. According to reports, the College of Commissioners will decide at its meeting in Strasbourg today whether to stick to the original schedule or to revise the proposal once again.
SEPs are patents that are essential for the use of a particular technology. One example is patents for mobile communications. The holders of SEP rights are obliged to license the patents on “fair, reasonable and non-discriminatory terms” (FRAND). There had recently been repeated disputes between the holders and the users about the conditions, which were fought out in the courts.
Many SEP holders disappointed
A draft of the Commission for SEP regulation, which is available to Table.Media, provides for the creation of an evaluation body for patents. In addition, a mediation process would have to take place before legal action is taken. When the proposal became known, it triggered a divided response. The camp of SEP users, such as many automotive companies, welcomed it. Many companies that own SEP were disappointed.
These include, in particular, the two European network equipment suppliers Nokia and Ericsson: these reportedly sent letters to all 27 Commissioners to protest vehemently against the Commission proposal. Further letters – this time from SEP users – followed when it became known that the Commission was considering shelving the proposal. mgr
EU
European Commission
AI Act: rapporteurs call for global AI summit
The AI Act rapporteurs call on Commission President Ursula von der Leyen, US President Joe Biden and governments of other countries to swiftly establish provisional principles for the development, control and use of very powerful artificial intelligence. The call by co-rapporteurs Dragoş Tudorache (Renew) and Brando Benifei (S&D) has also been signed by the shadow rapporteurs of the other political groups.
Signatories consider supplementary set of rules necessary
If everything goes according to plan, the MEPs want to conclude their negotiations on the AI Act this Wednesday. This will allow them to meet the deadlines for the votes in the committees (April 26) and in the plenary (May 31). It is not only parliamentarians who expect that the AI Act could serve as ablueprint for other regulatory initiatives around the world.
Tudorache and Benifei are referring to the Future of Life Institute‘s call for a six-month moratorium on the development of powerful AI. Public access to powerful AI, as well as exponential increases in performance, had also caused them to “pause and reflect on our work”. They are now convinced, they said, that in addition to the AI Act, “a complementary set of regulations is needed for the development and deployment of powerful general-use AI systems“.
AI deserves more political attention
While they do not agree with the alarmist statements of the Future of Life Institute, they do see the need for significant policy attention given the rapid development of powerful AI. Inaction will “widen the gap between AI development and our ability to manage it”.
Among other things, the signatories state:
that they want to create a set of rules under the AI Act that is specifically tailored to those AI models that are geared towards general purposes.
that they call on Commission President Ursula von der Leyen and US President Joe Biden to convene a high-level global AI Summit to agree on a tentative set of principles for the development, governance and deployment of very powerful artificial intelligence.
that they urge the Directors of the Trade and Technology Council (TTC) to agree on a tentative agenda for the aforementioned Artificial Intelligence Summit at the upcoming TTC meeting. The European Parliament and the US Congress should be involved in this.
that they call on other countries, but also companies, to step up their efforts to regulate or develop safe and trustworthy AI. vis
Artificial intelligence
Artificial Intelligence Regulation
Digital policy
Digitization
Technology geopolitics: Schaake becomes special advisor to Vestager
Marietje Schaake, a long-time member of the European Parliament, is to assist EU Commission Vice-President Margarethe Vestager as a special advisor on technology geopolitics. The Dutchwoman made the announcement yesterday on her Twitter account. She is looking forward to the cooperation, Vestager said on the platform.
Schaake played a key role in geopolitical trade and technology policy issues during her time in the European Parliament from 2009 to 2019. Among other things, she was rapporteur for an EP report in 2015 on the export control of surveillance technologies to third countries. She regularly criticized undesirable developments at the intersection of the two areas, such as the once-planned Anti-Counterfeiting Trade Agreement (ACTA), which later failed. In 2019, the liberal D66 politician did not run again for the EP.
In 2020, Schaake went to Stanford University and has since been researching and teaching at its Cyber Policy Center on the regulation of technology such as AI, big-tech competition controls, deep fakes, disinformation, and spyware. Schaake is taking on the new role in addition to her work at Stanford. fst
Digital policy
Court of Auditors denounces animal transports
Every year, billions of live animals are transported within the EU and to or from third countries, and the trend is rising. In the process, the applicable animal welfare regulationsare not always complied with. This is the result of an analysis published by the European Court of Auditors (ECA) on Monday. The question is whether the standards and the sanctions for such violations are appropriate, it states.
Producers would often deliberately accept longer distances in order to avoid penalties. This is because the applicable animal welfare regulations during transport would not be implemented uniformly by the EU states. Accordingly, the cost benefitscould exceed the expected penalties in some countries and violations would be worthwhile, the ECA said.
Factor animal suffering into transportation costs
According to the analysis, one-third of the transports take more than eighthours, and four percent take more than 24 hours. “Transporting live animals over long distances can have a negative impact on animal welfare”, says ECA agricultural expert Eva Lindström. The animals are exposed to stress during loading, she says. During transport, they may suffer from hunger, thirst, heat and lack of space.
In the upcoming amendment of EU animal welfare regulations, attention must be paid to limiting the number and duration of transports and improving transport conditions, the ACA demands. The use of local slaughterhouses and mobile facilities could contribute to this and is more environmentally friendly.
The ECA also proposes that animal suffering be priced into transport costs and taken into account in meat prices, and that greater transparency be provided through an EU-wide animal welfare labeling system.
BMEL: ban transports to third countries
Particularly problematic: transports to third countries, where standards are in some cases considerably lower than in the EU. Germany is therefore campaigning to ban transports to non-EU countries altogether. Minister of Food and Agriculture Cem Özdemir is receiving support from his colleagues in Austria, Denmark, Luxembourg and the Netherlands.
Most EU countries, however, are against it. However, a national solo effort is out of the question, “because no animal is helped if it is first brought to another member state in order to be exported from there to a third country”, according to the BMEL.
A year ago, the EU Parliament called for better protection of animals during transport. Little has happened so far. Now the Commission has announced that it will present a proposal by the end of the year. However, insiders fear that the upcoming European elections in spring 2024 could thwart the plans. til
Agricultural Policy
Agriculture
European policy
Timmermans delays China trip
After the High Representative of the EU for Foreign Affairs Josep Borrell, the Climate Commissioner Frans Timmermans has also had to postpone a planned trip to China due to contracting COVID-19. A spokesman confirmed that the trip would be made up as soon as possible. The Dutch politician would have met with China’s climate czar Xie Zhenhua. Borrell also had to cancel his trip to Beijing last week because of an infection with the Coronavirus. He was also absent from the G7 foreign ministers’ meeting in Japan on Monday.
The travel activities of EU representatives to China have recently received special attention after EU Commission chief Ursula von der Leyen and French President Emmanuel Macron visited Beijing the previous week – and did not necessarily shine with a unified approach. While von der Leyen maintained the more critical tone of her keynote speech, Macron sought to emphasize European “strategic autonomy” between China and the United States. Macron also faced criticism for his statements on Taiwan. The joint visit raised more questions about EU-China policy than it provided answers.
Parliament debate
Today, Tuesday, the EU’s relationship with China will be the subject of a general debate in the European Parliament. He sees that Europe is gradually coming to a more realistic attitude towards China, said the Green Party’s European politician Reinhard Bütikofer on Monday with a view to the debate.
A “mainstream” with a “sober tone” is emerging, which Bütikofer sees represented in von der Leyen, German Minister for Foreign Affairs Annalena Baerbock and EU Foreign Affairs Commissioner Josep Borrell. EU Council President Charles Michel is more in line with this than Macron. EU Commission President von der Leyen will take part in the debate.
G7 warning
At their meeting in Karuizawa, Japan, the G7 countries issued a clear warning to China. In the event of aggression against Taiwan, the People’s Republic must expect harsh consequences. The seven foreign ministers agreed on this at their meeting on Monday. They would resolutely oppose any violent change in the status quo in the Taiwan Strait.
“We will oppose any coercion, market manipulation or efforts to change the status quo in the Taiwan Strait“, Reuters news agency quoted an official from the US delegation as saying.
Minister Baerbock stressed that one could “feel very closely how China increasingly wants to replace the existing, general, binding, international rules with its own rules, gladly with the claim that there are no rules, although it has ratified the treaties itself”. Already during her visit to China, she called it a “horror scenario” should a military conflict break out in the Taiwan Strait. ari/rad
China
G7
CDU leadership supports von der Leyen’s possible further term in office
The CDU leadership is in favor of a possible further term of office for EU Commission President Ursula von der Leyen. “She has our support if she is willing to do so”, party leader Friedrich Merz said in Berlin on Monday after a CDU presidium meeting, which was also attended by von der Leyen.
Merz went on to say that he had informed Chancellor Olaf Scholz (SPD) of her visit to CDU headquarters, and that this was linked to the wish that von der Leyen be proposed from Germany if she were available for another term. This had been supported by everyone in the CDU presidium.
The EU recently passed the test of standing together and taking joint decisions, also in view of the war against Ukraine, Merz said. It was thanks in particular to the Commission and its President that this had succeeded in many areas.
No decision yet
Von der Leyen said she has not yet made her decision. She added that the European elections were still more than a year away. For her, it is important that the EU institutions work as one in these critical times, she said. “Therefore, at the moment it is not the right time for me to answer this question for a next mandate”, the 64-year-old said. It will be dealt with in the relevant party bodies when the time is right, she added.
SPD, FDP and Greens have agreed in the coalition agreement that the right to propose the German commissioner lies with the Greens, “provided that the Commission President does not come from Germany”. dpa
EU
European Commission
Macron wants to pacify France with 100-day plan
After months of protests in France against pension reform, President Emmanuel Macron has declared a 100-day program to bring the country together. Prime Minister Élisabeth Borne is to present proposals on working conditions, security, education and health issues, Macron said Monday.
“We must be able to take stock on July 14”, he said, referring to France’s national holiday. “Ahead of us are 100 days of appeasement, unity, ambition and action for France”. Macron said he regretted that the pension reforms were not supported by a broad majority. “Is this reform accepted? Obviously not. Despite months of talks, no consensus could be found, which I regret. We must all learn lessons from this”, he said.
In an initial reaction, the head of the country’s largest union, Laurent Berger of the CFDT, said the speech did not address the anger of the country’speople. “There is just a kind of emptiness, it does not contain anything, we expected something else”, he said. Unions said there will be no talks with the government on other issues without a rollback of the controversial pension reform.
On Friday, the Constitutional Council approved the core of the reform. Borne had used a constitutional trick to get it through Parliament without a vote. According to polls, a large majority of the French reject the changes. rtr
Heads
Toomas Hendrik Ilves – Estonia’s dedicated critic of Germany
Toomas Hendrik Ilves, former President of Estonia (2006 to 2016).
Out of pure politeness, Toomas Hendrik Ilves pockets the offered business card. The president of Estonia from 2006 to 2016 can’t hide the fact that he doesn’t think much of this German fad – why use paper when you can go digital? And to prove it, he holds out his smartphone with a QR code as a business card.
The fact that Estonia is now one of the countries with the highest level of digitization and the best in terms of cybersecurity also has to do with Ilves, a forward thinker. When the Estonian, who was born in Sweden in 1953 and grew up in the United States, became president of the then-still-young republic in 2006, he was already able to build on solid, advanced digitization in the country. But when his country’s digital administration falls victim to a cyberattack from Russia lasting several weeks in 2007, it is clear that cyberspace has become the domain of warfare.
Networking for cybersecurity
As a result, in 2007, under his presidency, NATO’s Cooperative Cyber Defence Centre of Excellence (CCDCOE) was established in Estonia’s capital Tallinn. Since then, capabilities and information in the field of cyber defense, training, research and development have been pooled there among the member states of the Western defense alliance.
Ilves is passionately critical of the slow progress of digitization in Germany and the German government’s stance on Russia, and he likes to give voice to these thoughts on his Twitter account. He can speak from his own experience, having lived in Munich himself from 1984 to 1993, where he worked as a journalist for Radio Free Europe.
He then served as Estonia’s ambassador to the US, Canada and Mexico, based in Washington; he was Foreign Minister in Tallinn from 1996 until his resignation in 1998 and again from 1999 to 2002. After Estonia joined the EU in 2004, he went to Brusselsfor two years as an MEP before his two terms as president of Estonia.
No glorified view of Russia
What bothers him massively in Germany is that the local press still writes about “Estonia, the former Soviet republic”, a time long gone. And he does not hold back his anger about the naivety of German and other Western European politicians with regard to Russia.
“I sat in the front row at Vladimir Putin’s famous speech at the Munich Security Conference in 2007. What was interesting was not what he said, but how shocked everyone from Western Europe was – and we from Eastern Europe said, why are you shocked?” The right consequences, he said, were never drawn.
He and other Eastern European politicians, such as former Polish Parliament Speaker Radosław Sikorski, had said even before the 2022 Munich Security Conference that Russia would invade Ukraine. Instead of believing them, they were called warmongers, for example by French President Emmanuel Macron. “We don’t have a glorified view of Russia based on Tolstoy or Dostoevsky. That’s all very nice, but it’s not our reality”, Ilves explains.
Insight from German politics is lacking
Concerning German politics, above all from the CDU and SPD, there is a lack of significant voices saying that the Russia course of the past decades was not the right one. He also has little to say about Merkel’s policies. “Merkel to this day thinks she did everything right. I mean, if you sign Nord Stream 2 a year after the Crimea annexation, and today you say you don’t regret anything… Well, fine”.
Nevertheless, Estonia has gained self-confidence, also due to good ideas from Estonia’s Prime Minister Kaja Kallas. The latter had proposed joint munitions procurement in the EU at the Munich Security Conference in February. “It would be good if the Germans would now join in with all their might”, Ilves says.
What he doesn’t criticize about Germany is the food. Leberkäse, Weißwurst and Obazda are among his favorite foods. Lisa-Martina Klein
