Interview with Energy Minister Claude Tu • Table.Briefings

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Claude Turmes is clearly still proud of the agreement for EU-wide gas conservation. In an interview with Manuel Berkel, Luxembourg’s energy minister explains what seven Western and Central European countries have agreed on for their emergency plans. When it comes to extending the operating lives of nuclear power plants, however, the former Green MEP refrains from criticizing his fellow party members in the German government.

Hungary’s head of government Viktor Orbán was visiting Austria. His counterpart Karl Nehammer had to find clear words to counter the right-wing populist, who recently came under criticism again for racist remarks. Hans-Peter Siebenhaar analyzed what the two Euroskeptic heads of state have in common and what sets them apart.

It’s not new that Germany has some catching up to do when it comes to digitization. A study by the EU Commission once again clearly shows which topics, in particular, are lagging behind – and where things look pretty good in an EU-wide comparison. Read more about this in the News.

In today’s profile, we introduce Michèle Knodt. She is a professor of political science at the Technical University of Darmstadt with a focus on energy policy. Among other things, she is researching ways to use iron as a storage facility for renewable energies.

Your
Lisa-Martina Klein

‘The nuclear power plants in France are more relevant than those in Germany’

This week the EU states agreed on a pact to save gas. How long will it last?

It is a strong political signal that the EU has dared to put a set of rules on the table at all. The governments adopted the regulation within a week, and there was broad consensus; only Hungary dropped out. So by the end of October, 26 member countries will submit plans on how they plan to save this 15 percent gas. That would put us in the order of magnitude we need if Russia were to cut its supplies to zero.

According to the International Energy Agency, however, Europe has let too much time pass; in the meantime, the EU must even reduce gas consumption by 20 percent. Will the energy ministers soon have to decide on the next savings package?

The 15 percent target is based on modeling by the Gas Coordination Group. If we manage to achieve the agreed savings, we will have already taken a major step toward maintaining security of supply and not being blackmailed by Putin.

In Brussels, you stressed that you trust the Commission’s calculations “at the moment”. Under what circumstances should the Commission present new ones?

The modeling is robust. The coordination group includes not only officials from the Commission, but also from the member states and ENTSOG, the European Network of Transmission System Operators for Gas. Now it’s a matter of all governments doing their homework and submitting their national gas conservation plans. In most Western European countries, we are already at eight to ten percent – also due to the rise in gas prices.

What are the contents of the plans?

I think the national contingency plans will be quite similar in all countries: public buildings as a model, the conversion of heating networks to other energy sources such as wood and heating oil, and joint savings campaigns with industry. But this will not be enough. All EU countries should send a clear message to citizens to participate in saving gas.

Companies are also suffering from high energy prices. You have already called for an extension of subsidies. What instruments do you think are necessary?

In these uncertain times, companies need a clear signal of support from the EU. Competition Commissioner Margrethe Vestager should therefore extend the Temporary Crisis Framework until summer 2024. It gives us a lot of flexibility. We also need the crisis framework for market-driven instruments that give companies state financial incentives to save gas. I expect that we will soon receive a positive response from the Commission.

The situation on the electricity market is also tense. Is the next crisis looming there?

We are to take a closer look at the situation in France. There, many nuclear power plants are currently not on the grid, partly because of corrosion problems. The European network operators are currently investigating the consequences of the strained power supply in France, especially for Western Europe.

It’s not a pleasant scenario for a green energy minister, but wouldn’t it help Luxembourg and France if Germany extended the life of its nuclear power plants?

I find it interesting that relatively little is written about the 27 nuclear power plants in France that are not connected to the grid, but an incredible amount is written about three nuclear power plants in Germany. In terms of volume, the nuclear power plants in France are much more relevant than the German ones.

How will Luxembourg react if the federal government decides to extend the operating life?

The question of extending the operating lives of nuclear power plants is an autonomous decision for Germany. I think this discussion is very much fueled by the CDU. An opposition party is trying to somehow regain its footing after losing an election and decades of misguided energy policy toward Russia. I find it quite adventurous that the CDU’s proposals are still being taken seriously at all after the energy policy disaster of the Merkel government.

Luxembourg, Germany, and five neighboring countries are cooperating on the security of electricity supply in the Pentalateral Energy Forum. What measures are you preparing for this winter?

The energy ministers of the Penta Forum met in Brussels in parallel to the meeting of the 27. The countries of the Penta Forum are aiming to submit their national gas emergency plans to the European Commission as early as the end of September, and they are coordinating their savings measures. In the Energy Council, some states had recently pushed for a deadline of the end of October. We are also exchanging views on the electricity market. The most important thing at the moment is that there is no German or French electricity market, there is only a European one. The association of electricity transmission system operators ENTSO-E is working on a new report on security of supply. ENTSO-E has held out the prospect of presenting its latest Winter Outlook to the Pentalateral Forum by the end of September. On this basis, the penta-states will decide whether or not there is an emergency in electricity.

Orbán – smooth sailing in Vienna

By

Hans-Peter Siebenhaar

The timing of Hungarian Prime Minister Viktor Orbán’s visit to Austria could not have been worse for Karl Nehammer. The right-wing populist from Budapest caused criticism and outrage throughout Europe with his racist outbursts and anti-Semitic innuendos. In Austria, pressure grew on the conservative chancellor to find clear words. Nehammer did so by referring to Austria’s history during the Nazi era. Racism and anti-Semitism had no place in Austria because of historical experience.

Nehammer and Orbán quickly identified illegal immigration via the Balkans to the EU as a common field. In Vienna, therefore, a conference was agreed with Serbian President Aleksandar Vučić to “curb irregular immigration”, as Nehammer put it. The goal was to take the pressure off the Hungarian-Serbian border. “I don’t want immigration to become stronger in Hungary,” Orbán said. “It is in Austria’s interest that we protect the southern border.”

As a former minister of the interior, Nehammer knows the subject very well. His party, the Austrian People’s Party (ÖVP), is currently in the doldrums. And the former party cadre in the days of party leader Sebastian Kurz knows that the issue of immigration can score points with Austrian voters.

The Austrian chancellor’s critical tone toward the EU Commission also fits in with this pre-election campaign. Nehammer attacked the EU executive for its alleged slowness in joint gas purchasing. “There are many announcements from the EU Commission, but very few implementations,” said the conservative head of government, who personally named Commission President Ursula von der Leyen as responsible.

Criticism of sanctions

He is calling for much more speed from Brussels, given the low volumes of gas currently being supplied from Russia. “A common energy platform would be more important than ever,” Nehammer said, so that member countries would not compete with each other. The head of government left unmentioned that the Commission had already recommended a joint gas purchase many years ago and failed due to the resistance of the member states at that time.

Austria and Hungary agreed on numerous areas of European policy. Although differentiated, both heads of government criticized the sanctions policy against Russia in the Ukraine war so far. “However, we now run into the wall called ‘the gas embargo’. I suggest that countries of the community do not attempt to be up against it. I believe I am not the only sharing [this point of view],” Orbán said. The right-wing populist, however, did not name which EU member states would share his assessment.

The prime minister, who has been in power since 2010, issued an urgent warning in Vienna against expanding sanctions against the Kremlin. “It is quite obvious that the war cannot be won this way,” Orbán believes. “The situation is that today we are sitting in a car with flat tires on all four wheels”

The Austrian chancellor also voiced criticism. “The sanctions are not working as quickly as perhaps hoped,” Nehammer summed up. He spoke of frustration. “But sanctions must hurt Russia more than the European Union,” he said, referring to the looming recession in the EU.

Austria’s close relations with Russia

Although the time to review the sanctions was too early, the head of the conservative Austrian People’s Party (ÖVP) warned quasi-preventively of the economic consequences, including mass unemployment. He praised, on the other hand, “smart sanctions” such as an EU ban on exports of electronic components to hit President Vladimir Putin’s autocratic regime. Like Orbán, Nehammer opposed an embargo on Russian gas, but Moscow is currently enforcing it step by step anyway.

Neutral Austria, which is also not a member of NATO, maintained close relations with Russia for decades until the Ukraine war. After the annexation of Crimea in violation of international law, it was one of the few countries that rolled out the red carpet for Putin – in 2018 under Chancellor Sebastian Kurz (ÖVP).

Hungary and Austria are closely linked economically. According to the government in Budapest, around 2,000 companies from the Alpine Republic are present in Hungary. Austria is the second most important trading partner after Germany.

Like Hungary, Austria is heavily dependent on Russian gas. Currently, the country’s gas storage facilities are only 52 percent full. Important companies such as the steel group Voestalpine are publicly concerned about security of supply. The chancellor warned of a recession in Central Europe. A “tipping point” in the German economy would also sweep his country away and lead to mass unemployment.

Orbán’s nationalist game

Orbán, meanwhile, did not take kindly to the EU Commission’s recently adopted gas emergency plan. He said Hungary was trying to implement Brussels’ decisions with “as little damage as possible”. “We are not happy,” Orbán said of the gas emergency plan.

“Brussels is not our boss,” the prime minister polemicized toward Brussels. The planned rationing of natural gas is “the first sign of a war economy,” Orbán warned. The commission plans to cut gas consumption by 15 percent from August 1 to March 31 next year compared with the same period in the previous five years. Orbán is playing his nationalist game. He recently sent his foreign minister, Peter Szijjárto, to Moscow to lobby the Kremlin for concessions.

Orbán was visibly in a good mood during his visit to Vienna. He wooed the historically close-knit neighboring country with flattery. “Every Austrian can feel at home in Budapest,” Orbán said in all seriousness. And Nehammer? He did not comment on the nationalist’s remarks in the Chancellor’s Office in Vienna.

Mariupol and Odesa ports to be included in EU transport corridors

On Thursday, the EU Commission proposed to extend four transport corridors of the Trans-European Transport Network (TEN-T) to the territory of Ukraine and Moldova. The ports in Mariupol and Odesa are also to become part of the network in the future, the Commission announced.

“Our proposal will help improve transport links between the two countries and the EU, facilitating economic exchanges and connections for people and businesses alike,” said Transport Commissioner Adina Vălean. The corridors are also expected to help rebuild transport infrastructure in Ukraine as well as facilitate grain exports via the Solidarity lanes. Routes to Russia and Belarus, on the other hand, have been removed from the TEN-T map.

The Commission proposal stipulates that newly built lines connecting member countries must be built with the European standard gauge. Existing lines would also be upgraded to the standard if “economically justified”. The impact of the war on global markets, supply chains and food security has shown that better connections to the EU’s neighboring partner countries are more important than ever, the commission writes.

The TEN-T network aims to close transport gaps by removing technical barriers along transport routes and using new technologies and digital solutions for all modes of transport. luk

EU Parliament President: Ukraine belongs with us

EU Parliament President Roberta Metsola has pledged lasting support to Ukraine on its path to the European Union on the occasion of the Statehood Day holiday. “On this important day for independent and sovereign Ukraine, I want to assure you that Ukraine belongs with us,” Metsola said Thursday in a video address to the parliament in the capital, Kyiv. The country belongs with the nations “that uphold the values of freedom, independence, democracy, the rule of law and respect for human rights”.

In her speech, the Maltese drew attention to the fact that the European Union had granted Ukraine the status of a candidate country in June. The road to the EU will probably not be easy, but the European Parliament will support the country.

Ukraine, meanwhile, has appointed Olexander Klymenko as head of the Specialized Anti-Corruption Prosecutor’s Office, fulfilling an EU demand. “The fight against corruption is a priority in our state, as our attractiveness to investors and entrepreneurial freedom depend on it,” says the head of the Presidential Office, Andriy Yermak.

Since the resignation of Klymenko’s predecessor, the position of anti-corruption prosecutor had remained vacant for almost two years. Corruption is considered one of the biggest problems in the crisis-ridden country, which is striving to join the EU. The West is demanding a more determined fight against bribery crime from Ukraine. dpa/rtr

Bulgaria faces new elections – government formation fails

Bulgaria has to elect a new government for the fourth time since last April. After the fall of the pro-Western government of Prime Minister Kiril Petkov, the previously co-ruling Socialists (BSP) returned the third and final mandate to form a government on Thursday.

President Rumen Radev must now appoint an interim government, dissolve the parliament, which was not elected until November 2021, and announce an election date. This is expected to take place in October. The liberal-socialist coalition government of Prime Minister Kiril Petkov, in office since late 2021, was toppled by a vote of no confidence in parliament on June 22. In view of rapidly rising inflation, the opposition accused the government of having failed with its financial and economic policies.

The previous governing coalition also bequeathed a “chaos in the energy sector” to the future interim cabinet, complained head of state Radev. The EU country, which is heavily dependent on Russian energy sources, no longer receives gas directly from Russia. Sofia had refused to pay the bill in Russian rubles. dpa

Poland wants right to block EU plan to reduce gas demand

Polish Prime Minister Mateusz Morawiecki said on Thursday that a possible decision on a compulsory reduction in gas consumption in the European Union must be made unanimously, not by a qualified majority vote.

European Union countries bracing for further cuts in Russian gas supplies on Tuesday approved a weakened emergency plan to curb demand, after striking compromise deals to limit consumption reductions for some countries.

Under the plan the cuts could be made binding in a supply emergency, provided a majority of EU countries agree. Hungary was the only country that opposed the plan, two EU officials said. Poland had said it was against binding cuts, and on Thursday Morawiecki said he wanted to have the possibility to veto such a decision.

“We absolutely favor such a vote in this matter – due to the fact that it concerns electricity, the energy mix – being in the mode of so-called unanimity, where Poland has the right to veto. We demand it,” he told private broadcaster Polsat News.

“If the EU tries to coerce us into voting by qualified majority, we will protest strongly. If necessary, we will make a formal veto, and then, unfortunately, the attitude to this veto will depend on decisions of the bodies of the European Union.”

Poland’s climate minister said in a separate interview that Poland has already achieved a significant reduction in gas consumption and a discussion about compulsory cuts was “unnecessary“.

“I hope it will never happen … we will absolutely not support such a (compulsory) reduction, and in the worst case, if we are outvoted, we simply won’t comply,” Anna Moskwa told public broadcaster TVP. rtr

Study on the ramp-up of electromobility: Germany has some catching up to do

For the ramp-up of electromobility, the German energy system still lags significantly behind other countries. While Norway is the European leader, Germany is at the bottom of the league. This is the result of a study by the Institute of Energy Economics (EWI) at the University of Cologne.

According to the EMI EV Preparedness Index 2021, there is still a lot of catching up to do in Germany, especially when it comes to creating incentives for flexible charging. Germany is the worst performer of all the countries surveyed. According to the researchers, so-called time-of-use tariffs (TOU tariffs) create incentives for the “grid-serving charging” of EVs – i.e., a shift in electricity consumption during periods of high feed-in of renewable energies.

Germany is ill-prepared for such tariffs due to the low share of potentially flexible components in the electricity sales price, they say. “In particular, costs of charging should be determined primarily by electricity procurement and grid costs in order to provide incentives for flexible charging,” demands Philip Schnaars, one of the authors of the index. For example, there is no incentive for households to make their own charging behavior more flexible.

The researchers also believe that the technical prerequisites for flexible charging have not been met, as intelligent electricity meters are lacking. In other countries – especially Norway, Sweden, Switzerland, and Denmark – significant progress has been made in recent years. In Germany, but also in the Czech Republic and Hungary, the proportion of smart meters is significantly lower.

Germany well prepared for network infrastructure

Germany performs better in terms of the performance of the charging and network infrastructure but still lags behind neighboring Switzerland, Belgium, the Netherlands, and Austria. The decisive factors are the availability of fast and standard charging stations in the transport network as well as network quality and the frequency of supply interruptions. For the latter indicator, Italy in particular still has considerable room for improvement.

The researchers also examined readiness for e-mobility by looking at the carbon footprint of the electricity mix in light of the expected increase in energy demand. Here, however, Germany once again lands in the bottom third, due to its “predominantly coal-based energy system” as well as the large car fleet that needs to be electrified.

The index was based on the energy systems of 18 European countries. Eight different indicators were examined to find out how good the power generation, charging and grid infrastructure, and conditions for flexible charging are in the countries.

At the European level, mandatory expansion volumes for the member states are currently being negotiated (Europe.Table reported). The so-called Alternative Fuel Infrastructure Regulation (AFIR) is also intended to ensure uniform payment and charging systems so that electromobility can be promoted evenly throughout Europe without technological differences in the countries. The Commission and the member states have already found their positions, and the Parliament intends to follow suit in September. luk

Germany only mediocre in digitization

On Thursday, the EU Commission announced the results of the 2022 Digital Economy and Society Index (DESI). The DESI measures the progress of EU member states in the digital sphere. Finland, Denmark, the Netherlands, and Sweden continue to lead the way. Germany only makes it to 13th place among the 27 member states – after eleventh place in the previous ranking. France and Slovenia have now overtaken Germany.

The index, which is published annually, measures the progress of EU member states on the path to a digital economy and society on the basis of data drawn from Eurostat as well as from specialist studies and special surveys. The DESI is designed to help EU member states identify areas where there is a particularly urgent need for investment and action. “Given its position as the EU’s largest economy, Germany’s progress in digital transformation in the coming years will be crucial to the EU as a whole achieving its Digital Decade goals by 2030,” the Commission writes.

DESI: Germany lags behind in fiber optic expansion

The most important criteria in the index are human capital, connectivity, integration of digital technology, and digital public services. In the DESI 2022, Germany achieved a score of 52.9, which is only just above the EU average of 52.3.

Germany ranks 13th in the DESI, just above the EU average.

Thus, the result for Germany in the individual areas is mixed – with the largely familiar weak points:

Human capital: According to the Commission, the level of the indicators “at least basic digital skills” and “at least basic skills in digital content creation” is slightly below the EU average. By contrast, the proportion of skilled workers in information and communications technologies ranks above.

Connectivity: Coverage with very high-capacity fixed networks has improved significantly. At 75 percent, it is now above the EU average. However, in terms of fiber-optic coverage, Germany is one of the weakest member states in the EU at 15.4 percent. In rural areas, the figure is as low as 11.3 percent. The situation is much better in terms of 5G network coverage, with Germany ranking fourth in the EU with 87 percent of populated areas covered.

Integration of digital technology by companies: Here, most indicators are close to the EU average. However, there is still room for improvement, as Germany is still some way from the target of at least basic digital engagement among more than 90 percent of small and medium-sized enterprises.

Digital public services: Looking at the “open data” indicator, Germany scores well, but interaction between government agencies and the public could be improved. “Germany should continue its current efforts to achieve the goal of 100 percent online provision of essential public services for European citizens and businesses contained in the Digital Decade program,” the Commission concludes.

Overall EU-wide progress

According to the Commission, the results show that while most member states are making progress in the digital transformation, the number of companies adopting key digital technologies such as artificial intelligence and Big Data remains low. Efforts should be stepped up for the full rollout of connectivity infrastructures (especially 5G). Digital skills are another important area where member states need to make greater progress.

“Most member states are making progress in building resilient digital societies and economies,” commented Commissioner Margrethe Vestager, responsible for “A Europe for the Digital Age”. Since the beginning of the pandemic, the EU has made significant efforts to support member states in the transition – whether through the build-up and resilience plans, the EU budget or, more recently, the structured dialogue on digital education and skills. vis

Meta’s hopes for TADPF

Facebook, Instagram, and Whatsapp parent Meta has issued an even more urgent warning than before in its stock market reporting obligations that the pending decision by Ireland’s data protection regulator could jeopardize its European business. Meta expects the decision “no earlier than the third quarter of 2022”.

The Group is hoping for the announced new Trans-Atlantic Data Privacy Framework TADPF. The political agreement on this was announced by US President Joe Biden and Commission President Ursula von der Leyen in Brussels at the end of March. So far, however, the main prerequisite for implementation is missing: The US administration is still working on the presidential orders that are intended to remove the objections of the ECJ in the Safe Harbor and Privacy Shield rulings. However, their existence is an indispensable prerequisite for the formal start of the procedure for the necessary adequacy decision by the EU Commission in accordance with the GDPR.

Meta will likely not be able to offer some of its key products and services, including Facebook and Instagram, in Europe, according to page 78 of Meta, Inc’s so-called 10-Q filing, “if a new transatlantic data transfer framework is not adopted and we are unable to continue to rely on SCCs or rely upon other alternative means of data transfers from the European Union to the United States”.

The Digital Markets Act (DMA), which is intended by the EU for companies such as Facebook, is mentioned in passing in the quarterly report: It could have an impact on the usability of data for advertising purposes, and it could also have an impact on product design and on the use of data across products. The Digital Services Act (DSA), under which Facebook is to be subject to direct control by the EU Commission, is mentioned exclusively as a cost factor for compliance. fst

DMA: Commission reported to have found first enforcers

The EU Commission’s lineup for Digital Markets Act (DMA) enforcement is taking a more concrete shape. As we previously reported, 80 EU Commission employees are to be responsible for DMA enforcement alone, 55 of which are to be filled by internal appointments from the Directorate-General for Competition and the Directorate-General Communications Networks.

The first names are now being traded: According to information from the Reuters news agency, Alberto Bacchiega, previously director at DG Comp responsible for the information, communications, and media sector, and Thomas Kramler, head of unit for competition proceedings in the area of electronic commerce and data economy, are said to be the first DMA officers to be named. Kramler is currently in charge of the Apple and Amazon investigations, and both are already working closely with their colleagues in DG Connect, according to Reuters. fst/rtr

Michèle Knodt – better decisions in the energy crisis

Michèle Knodt is Professor of Political Science at the Technical University of Darmstadt.

She suspected early on that the topic of energy would become as important: Back in 2011, Michèle Knodt submitted her first application for an EU project on the subject of energy policy. At the time, her colleagues had advised her that she should research climate policy instead. Energy policy was boring, they said. While the application was being reviewed, the Fukushima nuclear disaster happened. Energy policy was suddenly in the spotlight.

In the meantime, the political scientist is researching processes of energy transformation. Interdisciplinary work is very important to her. In addition to political scientists, engineers and computer scientists are also involved in the “Clean Circles” research project. The team is investigating how iron can be used to store renewable energies.

Consensus instead of competition

“I’m particularly interested in how to change decision-making processes to achieve a better political outcome,” Knodt says. She holds the chair of the Institute of Political Science at Darmstadt Technical University since 2005. As an advisor to the federal government, she places great emphasis on positive coordination, especially when it comes to energy. Work must be consensus-oriented, she says. The ministries are competing too much with each other.

Europe’s dependence on Russian gas has been a problem for some time. Already since September 2021, the supply volume had become severely scarce. This shortage has now been exacerbated by Russia’s war of aggression on Ukraine.

The political scientist estimates that Germany will be up to 25 percent short of the commodity this coming winter. “This is going to be a really tough winter.” LNG terminals, floating stations with liquefied natural gas, are currently the only chance to compensate for the gas shortage for the next few months. However, it is unclear whether these will be ready in time.

Also privately in demand as an expert

The professor advises private households to reduce their gas consumption as much as possible. This is also easy on the wallet. “We have to realize that this is a crisis situation.” In her circle of friends, she is currently the expert on this omnipresent topic: “No matter where I go, people ask what they should do.” For the winters of the next few years, she says, there needs to be a radical rethink.

“Dependence on Russian gas was the mistake. People put cost efficiency before energy security,” says Knodt. She says policymakers need to ensure more diversification and, above all, change decision-making processes. In her opinion, a coordination body is needed. In addition, the federal government needs to work together more closely with the states to get a grip on the energy crisis. Kim Fischer

EUROPE.TABLE EDITORS

Till
Hoppe

Charlotte
Wirth

Falk
Steiner

Timo
Landenberger

Corinna
Visser

Lukas
Knigge

Eric
Bonse

Sarah
Schaefer

Manuel
Berkel

Lisa-Martina
Klein

Markus
Grabitz

Stephan
Israel

Claire
Stam