If you are planning your summer vacation on Lake Garda, you will probably notice an unusually low water level this year. 70 cubic meters of water per second are currently being diverted from the lake towards the Po Valley. There, desperate farmers are trying to brave Italy’s drought of the century. With water from Lake Garda, they are trying to keep the Po from drying up completely and save part of the harvest.
The Italian government sees itself in a comparatively better position with regard to natural gas supplies. Prime Minister Mario Draghi is adamant that Italy is better prepared for a Russian supply stop than its European neighbors, and that no bottlenecks are to be feared in the winter. Isabel Cuesta Camacho took a closer look at how Italy has managed to become less dependent on Russia within a short period of time.
Canada announced on Saturday that it would return the turbine serviced there for the Nord Stream 1 pipeline to Germany. Russia had argued that the missing turbine was one of the reasons for curtailing gas supplies. Despite the sanctions and clear criticism from Kyiv, Siemens wants to install the turbine in Russia as quickly as possible. Maintenance work on the pipeline will start today and is expected to last about ten days.
In Germany, the discussion about the enforcement of the Digital Services Act (DSA) could become complicated. The DSA stipulates rules for which very different authorities are responsible in Germany – and for whose implementation many national requirements must be adjusted. Falk Steiner explains the enormous task the federal and state governments now face.
Faced with the cut-off of Russian gas supplies, Italy affirms that it will be able to get through the winter without emergencies. In recent weeks, Italy has stepped up gas storage and increased its cooperation with African countries on gas supplies. The Minister for Ecological Transition, Roberto Cingolani, continues to expect that Italy will be able to get through the winter without supply shortages. He already announced this in February (Europe.Table reported).
“In Italy, we are preparing for this winter on the energy front. The measures under consideration ensure that there will be no emergency next winter,” Prime Minister Mario Draghi also said at a press conference after the European Council in Brussels in late June. Italy’s dependence on Russian gas has dropped from 40 percent to 25 percent, Draghi said. Russia has systematically cut its gas supplies to Europe, starting June 15 with a 40 percent cut for Germany. On June 16, Russia supplied 15 percent less gas to Italy, and 50 percent less the following day.
After the meeting of the gas emergency committee at the end of June, the Ministry of Ecological Transition decided to tighten the measures. It commissioned the Italian transmission system operator Snam to supply the lacking volumes in order to reach the target of 5.4 billion cubic meters set for June. Meanwhile, Italy has more than tripled its storage levels. They currently stand at 60 percent. Italy has the second-largest gas storage capacity in Europe after Germany and, unlike the Federal Republic, also has strategic gas reserves. The reserves were created by law in 2000.
Natural gas production from domestic deposits is also rising in Italy for the first time in four years. The Italian “Plan for the Transition to Sustainable Energy for Eligible Areas” (PiTESAI) had actually envisaged a reduction in domestic production from 20 percent in 2000 to 3 to 4 percent in 2020. This is now to be reviewed, according to Minister Roberto Cingolani, in order to cope with the current crisis and reduce gas imports. In areas such as the lower Adriatic, production from already active fields can be increased.
As a secure base for the winter, the Italian government aims to exceed 85 percent gas reserves by the end of the year, Minister Cingolani said on the sidelines of the Energy Council in Luxembourg on June 27. “In the meantime, our operation to diversify sources of supply with other countries will allow for new flows that will more than compensate for what has been or will be lost in Russian supplies,” Cingolani said. These supplies would already arrive, especially through the pipelines of the southern routes.
In recent months, the government has taken steps to diversify its gas supply sources and thereby reduce its dependence on Russia. Between eight and ten billion cubic meters of natural gas could come from Algeria, Libya and Azerbaijan in two years. Italy could also secure supplies from North Sea producers. Draghi also met his Israeli counterpart Naftali Bennett in mid-June to discuss the planned Eastmed-Poseidon pipeline. This would allow natural gas supplies from Israel via Cyprus and Greece to Otranto in southeastern Italy.
Meanwhile, liquefied natural gas is transported via ship to the three Italian regasification plants in the Ligurian cities of La Spezia and Livorno and in Rovigo on the Adriatic coast. The import quota could increase by another five million cubic meters as the plants could process 20 to 25 percent more feedstock. Additional LNG could come from Qatar, Egypt and Israel. In April, the government already signed new supply contracts with Angola and the Republic of Congo. The United States has also committed to supplying at least an additional 30 billion cubic meters of liquefied natural gas to Europe for the coming winter, some of it to Italy. As a result, the Snam Group has acquired a regasification vessel that it plans to station off the west coast near Piombino. A second vessel is due to arrive at the port of Ravenna on Italy’s east coast by the end of the year.
Cingolani further told Italian media that no critical point has yet been reached: “The development of the gas flow is constantly monitored in cooperation with the operators.” While the minister did not want to downplay the difficult situation that a winter with fewer foreign gas supplies could mean. But Italy would be less affected than other European countries if Russia were to turn off the gas tap altogether.
According to the Ministry of Ecological Restructuring, 43.3 percent of Italy’s natural gas imports in 2020 will come from Russia, by far the country’s largest gas supplier. Algeria (22.8 percent), Norway and Qatar (around 10 percent each) also play an important role. In 2021, 38 percent of the gas consumed in Italy came from Russia.
The search for alternative sources, meanwhile, does not rule out the possibility of the Italian government pushing ahead with a proposal at the European level for a gas price cap.
Now that the DSA has been passed in the European Parliament, the EU Commission, which will be responsible for supervising the particularly large platforms and search engines (VLOP and VLOSE), can slowly get to work: “Enforcement is key,” wrote Commissioner for the Internal Market Thierry Breton in a LinkedIn post explaining the EU approach to DMA and DSA enforcement.
The Commission wants to pull together more than 100 employees in the Connect Directorate General, the de facto digital ministry, and from the Competition Directorate General, and in some cases recruit new staff, in order to enforce DMA and DSA within the scope of their responsibilities. But the interplay of the DSA, DMA, Data Governance Act, Data Act, AI Act and other legislation is complex, which is why the EU Commission is now planning an implementation strategy (Europe.Table reported). While the DMA has repercussions for the enforcement of competition law in the member states, there is not much to do on their part. With the DSA, this is more complicated.
As a regulation, the DSA is directly binding European law. However, it contains many provisions whose enforcement is the responsibility of national authorities and courts. This leads to a need for action at the federal and state levels, as shown by a June response from the German government to a minor interpellation from the CDU and CSU parliamentary groups, when the DSA was already negotiated. “Due to the fully harmonizing effect of the DSA, the national legal framework must be fundamentally revised. This applies to the Telemedia Act (TMG), the Network Enforcement Act and presumably also to the Federal Protection of Young Persons Act (JuSchG),” the German government’s response reads. “As part of the revision, it is also possible that a need for consequential amendments in other laws could arise. The states must examine on their own authority whether adjustments are necessary in the Interstate Media Treaty and the Interstate Treaty on the Protection of Minors.”
Specifically for the Network Enforcement Act (NetzDG), the Federal Ministry of Justice under FDP leader Marco Buschmann needs to examine a need for adjustments. The DSA uses a different regulatory technique than the Network Enforcement Act, the Federal Government told the opposition. The requirements for reporting procedures are roughly comparable, it says. The DSA leaves the definition of illegal content to national law or other EU law.
However, it also states, “According to current knowledge, ‘illegal content’ under the DSA is any information that does not comply with Union law or the law of a member state. Accordingly, the concept of ‘illegal content’ will be different from the concept of ‘unlawful content’ under the NetzDG, which is determined exclusively by national criminal law.”
As a result, it is supposed to be a kind of double-door principle: Illegal according to DSA is what is illegal according to national law, if this national law complies with European law. Banned is then what is banned, if such a ban is legal in the EU. Officially, none of the interviewees wants to confirm that this was created as a mechanism primarily with states with a problematic rule of law in mind, such as Poland or Hungary.
To prevent authorities of individual member states from crippling the entire process, whether for economic or political motives, the DSA has provided for both a comparatively strong position of enforcement authorities, but also conflict resolution mechanisms. “Member states must create independent authorities (“digital service coordinators”). These are to monitor compliance with the DSA and be able to issue fines of up to 6 percent of a company’s annual global revenue, for example,” explains Paul Seeliger of the German Research Institute for Public Administration. “The digital services coordinators can initiate cross-border initiatives to call on passive counterparts to take action. Even in this process, however, the final decision on whether and how to punish violations remains with the local competent authorities.” Whether the attempt to learn from the enforcement experience with the GDPR will be successful remains to be seen in practice, says Seeliger.
Germany already has bodies responsible for most of the regulations: For the content moderation process, for example, there is the Federal Office of Justice in Bonn, which has 37 offices responsible for overseeing platforms under the Network Enforcement Act. The state media authorities are currently responsible for issues relating to the lawfulness of content under the Interstate Treaty on Media Services, insofar as they have been assigned the authority by the states. For data protection aspects, the independent data protection supervisory authorities of the German states are generally responsible, depending on the location of the respective company. And many of the new regulations are additional regulations to enforcement mechanisms that already exist. For example, if the terms of use or the interface design mislead consumers, it would already be theoretically possible today for consumer associations to control the terms and conditions under the Act on Applications for an Injunction. The DSA would have to be included in the catalog of applicable laws so that injunctions or even model declaratory actions are also possible.
But that is not absolutely necessary for DSA enforcement in all areas, says Paul Seeliger. The legal expert at the German Research Institute for Public Administration does not necessarily see the DSA as the legal instrument of choice for the regulation of dark patterns, for example: “The DSA sees itself as a catch-all law for dark patterns and explicitly regulates only a very small section. In particular, competition and data protection law take precedence as special legal matters.”
In the end, it is up to the German government – together with the federal states – to tie together the complex mixture into effective enforcement in Germany. It must make decisions, such as who should act as Digital Services Coordinator in Germany. But this could turn out to be a tough fight. It is unlikely that the state legislatures will transfer some of their responsibilities to a federal authority.
In a guest article for the FAZ, Green Party media politician and Bundestag Digital Committee Chairwoman Tabea Rößner already signaled: She does not see that the Federal Network Agency could be solely responsible as Digital Services Coordinator. Together with Cologne-based media lawyer Karl-Eberhard Hain, she outlines several options for how the German DSC could be organized.
Several options seem unrealistic to the authors, such as the creation of a joint federal-state authority acting as a DSC. The transfer of sole responsibility to the Federal Network Agency or to the joint media institution body ZAK, the Commission on Licensing and Supervision, which is not itself an independently constituted authority, also does not appear to the authors to be covered by the DSA. Instead, Rößner and Hain argue that one authority should be given primary responsibility and the other players should retain their responsibilities – the Digital Services Coordinator should then actively involve the other players in their own work via mirror departments. Rößner and Hain are thinking aloud about whether one of the large state media authorities could be entrusted with the task. It is no secret that Tobias Schmid, Head of the State Media Authority in North Rhine-Westphalia, would be up for the task.
The Federal Ministry for Digital and Transport (BMDV), which is politically responsible for the DSA at the federal level, would probably prefer the Federal Network Agency in principle, but in the opinion of Rößner and Hain, it does not currently meet the criteria of the European legislator with regard to the DSA. This is because the Federal Network Agency is still technically subordinate to the Federal Ministry for Economics and Ministry for Digital and Transport and bound by instructions. After an ECJ ruling in 2021, its independence will have to be strengthened anyway in order to meet the requirements of the common rules for the internal market in natural gas and repealing Directive 2003/55/EC. According to government circles, this is actually to happen this year. Then independence could be extended to all areas of responsibility, including preemptively the DSA.
The responsible parties are thus now faced with a daunting task: On the one hand, they have a duty to devise a functioning supervisory regime for DSA in Germany. At the same time, they must merge the complicated interaction of media supervisory authorities, data protection authorities, the Federal Office of Justice and other players into a meaningful whole – politically delicate terrain in a federal state. Here, a long, complicated and particularly German process looms, making the timely establishment of institutions before the DSA regulations take effect in early 2024 seem ambitious. It will probably keep jurists as well as the responsible ministries and politicians busy for many months.
The way is clear for the delivery of the Siemens turbine serviced in Canada for the Nord Stream 1 gas pipeline. The government in Ottawa announced on Saturday evening that it would make an exception to the Russia sanctions and send the turbine back to Germany. Russia has justified a reduction in gas deliveries through the pipeline, among other things, with the missing turbine. The German government, however, had stressed that it considered this to be an excuse and that Russia was using gas supplies as a political weapon. Russia, in turn, had stated that gas deliveries to Europe would be increased again as soon as the turbine returned from Canada.
On Saturday, the Canadian government stated that it would grant a temporary and revocable permit to Siemens Canada to allow the return of repaired Nord Stream 1 turbines to Germany. Without the necessary supply of natural gas, the German economy would face major problems and the German population could not heat their homes in the winter.
A spokesperson for the German government most recently spoke of “positive signals” from Canada concerning the return of the turbine. The government had argued that the turbine should be reinstated so that Russia could no longer blame it on a technical problem. That, in turn, had not pleased Canada because Ottawa feared it would violate Western Russia sanctions if the turbine were shipped to a compressor station in Russia. As a result, the solution is to ship the turbine to Germany first.
The reduction of gas supplies via Nord Stream 1 has prompted the German government to take emergency measures. Among other things, it is concerned that German gas storage facilities may not be sufficiently filled by the fall to get companies that rely on gas for production well through the winter. Maintenance work on the pipeline begins today, Monday, and will last about ten days. Repeatedly, fears have been expressed that Russia could send even less gas through the pipeline afterward, or even none at all. rtr/leo
An international investigative network revealed information yesterday about lobbying and tax evasion by ride-hailing service provider Uber during its market entry in various countries. The documents claim that the company lobbied policymakers to relax labor and cab laws, among other things, and used illegal methods to evade regulators and law enforcement.
The Consortium’s Uber files reveal the exceptional efforts made by the company, founded in 2009, to set up shop in nearly thirty countries. The data includes more than 124,000 documents such as emails, text messages, invoices or PowerPoint slides from 2013 to 2017, which were first obtained by the British newspaper The Guardian and passed on to the International Consortium of Investigative Journalists (ICIJ) and other international research networks. In Germany, NDR, WDR and Süddeutsche Zeitung were involved.
Company lobbyists, including former advisers to President Barack Obama, pressured government officials to drop their investigations, rewrite labor and cab laws and loosen background checks on drivers, the documents show. Among other things, the documents reveal how former European Commissioner Neelie Kroes granted the company benefits while she was still on leave, before then joining Uber’s advisory board.
Emmanuel Macron is said to have prevented a ban on Uber services in the city of Marseille during his time as French Minister of the Economy. In Germany, the company lobbied only partially successfully. Rupert Scholz, constitutional lawyer and ex-Minister of Defense, for example, provided an expert opinion on the advantage of Uber. The economist Justus Haucap, in turn, wrote a study and a guest article for the FAZ, which Uber partially edited, according to the documents.
The Uber files also claim the company cut its tax bill by millions of dollars by sending profits through Bermuda and other tax havens, then “sought to deflect attention from its tax liabilities by helping authorities collect taxes from its drivers”.
In a written statement, Uber spokeswoman Jill Hazelbaker acknowledged “mistakes” made in the past. According to the SZ, Uber Germany has called the behavior of former CEOs and executives “inexcusable” and announced investigations into the allegations. leo/ AP
Tesla CEO Elon Musk has announced the end of his billion-dollar takeover attempt of Twitter. The short message service had breached several points of the takeover agreement, Musk said on Friday evening. Twitter shares fell 7.5 percent to $34.05 in after-hours trading following the announcement.
Musk had originally offered $54.20 per share. The total volume of the transaction was around $44 billion. However, it had become apparent over the past few weeks that there were severe frictions behind the scenes.
Twitter announced plans to file a lawsuit against Musk’s withdrawal. According to experts, the company has a solid chance of successfully defending itself in court against Tesla CEO Elon Musk’s withdrawal from the takeover. However, it is also possible that the short messaging service will opt for renegotiations or a settlement instead of waging a protracted legal battle against Musk to force him to buy the company under the terms agreed in April. dpa/leo
Following the filing by the ailing energy company Uniper for government stabilization measures, it remains unclear exactly what these measures will look like. German Minister for Economic Affairs Robert Habeck also wants shareholders to contribute to the rescue. “It (Uniper) belongs to someone, someone who is solvent and can provide support,” the Green politician told Deutschlandfunk radio.
Uniper’s main shareholder is the Finnish power company Fortum, which holds around 80 percent of the share capital, and which in turn is just over 50 percent owned by the Finnish state. On Friday, Fortum proposed a restructuring of Uniper – with ringfencing Uniper’s German businesses under government ownership. “We believe that a reorganization of Uniper’s business portfolio, i.e. a bundling of the system-critical German business areas, can best solve the acute problems in the long term,” said Fortum CFO Bernhard Günther.
According to government sources, there was no decision yet on Friday on concrete measures by the German government. A billion-euro investment by the federal government in Uniper through an equity stake is possible. However, a mix with the option of Uniper passing on high prices to customers is also possible.
As Germany’s biggest gas importer, Uniper is under severe pressure following the heavy cutback of Russian gas supplies through the Nord Stream 1 pipeline. The company has to buy expensive gas to service contracts with its customers. Uniper plays a central role in Germany’s energy supply, providing gas to more than a hundred municipal utilities and industrial companies. dpa
According to the ECB’s supervisory authority, major banks in the euro area are not adequately prepared for climate risks worth billions of euros and urgently need to make improvements. The European Central Bank’s (ECB) first climate stress test revealed that financial institutions are not yet sufficiently incorporating the financial and economic impacts of climate change into their stress test frameworks and internal models. According to the calculations, banks face losses of at least €70 billion as a result of an increase in natural disasters and profound changes in many industries as they transition to a greener economy.
Banks in the eurozone “must urgently step up efforts to measure and manage climate risk”, the ECB’s Supervisory Chief, Andrea Enria, warned at the presentation of summary stress test results on Friday. 65 percent of the 104 banks examined performed poorly, according to the supervisors, showing that they “do not yet have a climate risk stress-testing framework”. Banks, however, could not fail the test, which was declared a “learning exercise”. The results also have no direct impact on capital adequacy requirements.
The total of 70 billion in environment-related credit and market losses refers to the 41 larger banks that had to work through even the most negative scenarios. It reflects “only a fraction” of the actual climate-related risk to the industry, supervisors warned. Speaking in Frankfurt, Frank Elderson, the ECB’s Vice-Chair of the ECB supervisory board, stressed, “We expect banks to take decisive action and develop robust climate stress-testing frameworks in the short to medium term.” dpa
Building renovation based on circular principles can significantly improve the energy efficiency of the building sector and make an important contribution to achieving carbon neutrality. This is stated by the European Environment Agency (EEA) in a briefing published last week. The study examines the impact of circular economy principles on the benefits of building renovations. The EEA concludes that the circular economy can substantially reduce material consumption and contribute to significant additional reductions in carbon emissions in European buildings by 2050.
Between 2005 and 2019, existing measures and warmer winters helped reduce carbon emissions from buildings by 29 percent during their use phase, according to the EEA. However, to meet EU climate targets, this reduction would need to be expanded to 60 percent. “With buildings’ use accounting for 40 percent of annual EU energy consumption and 36 percent of annual EU greenhouse gas (GHG) emissions from the energy sector, improving the sustainability of the buildings sector is critical to meeting EU climate targets,” the briefing states.
20 to 25 percent of life-cycle emissions from the current EU building stock are embedded in building materials. “The most effective circular renovation actions to reducing embedded emissions are extending the lifespan of existing buildings and increasing the intensity of building use.” This would reduce the demand for new buildings, which consume more materials than renovating existing buildings. Ambitious circular renovation strategies could save significant amounts of greenhouse gas emissions between 2022 and 2050, depending on the scale of renovation, according to the EEA. leo
To help speed up the switch to electric mobility, several companies are calling for a reform of company car taxation as part of the planned emergency climate protection program. There is a need for an “ecological restructuring of company car taxation,” Ikea, Aldi Süd and eleven other companies appeal in a joint letter to the German ministers of economics, transport and finance published on Friday. “Two out of three new cars are registered as company cars in Germany. These new registrations should be fully electric as soon as possible, because they will be available to the population as affordable used cars after a few years,” the letter says.
The companies further call for support for the “ambitious European fleet limits,” “ambitious and needs-based targets for charging infrastructure” and “super write-offs for pure battery electric company cars.” These measures should accelerate the transition to electromobility, which is essential to meet the government’s 2030 climate targets, the statement said.
“In order to achieve the climate targets set by the German government, emissions in transport must be significantly reduced very quickly,” said Jan Lorch from the management of outdoor equipment manufacturer Vaude. He added that everything should now be done to accelerate electromobility among companies. “Since there is unfortunately little happening on a voluntary basis, we are calling for concrete measures as soon as possible.” dpa
Agora Agriculture was only founded just about two months ago. Christine Chemnitz shares the leadership of the independent think tank for agriculture, food and forestry with Harald Grethe. Agora Agriculture is part of the Agora think tanks, which also include Agora Energiewende and Agora Industry. Chemnitz comes from a small village in Lower Saxony, studied agricultural sciences in Göttingen and Berlin, and then earned her doctorate in agricultural economics at Humboldt University in Berlin.
She is currently setting up the organization, there are no regular working days yet. At present, the most important task is to assemble a strong and creative team. By the end of the year, 14 people are to be hired. There are times when Christine Chemnitz spends an entire day reading applications.
Her focus is on multiple fields – for example, the restructuring of livestock farming, sustainable agriculture, the rewetting of peatlands, or sustainable nutrition. To this end, current situations and strategies for action are analyzed.
Even though the company’s staff is currently still being built up, Agora Agriculture’s goals are clear: “Firstly, the transformation of agriculture and nutrition toward greater sustainability must gain momentum so that sustainability goals such as carbon neutrality and biodiversity protection can be achieved,” Chemnitz explains.
Secondly, while academic institutions help inform decision-makers in the political arena, the altitude of scientific publications is often too high. Many issues have not yet been sufficiently discussed with interest groups, have not yet been thought through far enough and translated into legislative processes, and have not yet been communicated widely enough and in a way that everyone understands. Agora Agriculture is addressing these issues. The aim is to make it easier for policymakers to utilize science-based concepts.
“For this purpose, Agora Agriculture wants to engage in dialogue with all key players from the fields of science, politics and public administration, civil society, the media and business,” says Chemnitz, who headed the international agricultural policy unit at the Heinrich Böll Foundation for 15 years, during which she was also involved in the writing of a book for young people on meat consumption and processing.
Chemnitz’s professional orientation is also reflected in her private life. Namely, she likes to spend her free time outdoors, with her children in Brandenburg. “Even though I’ve lived in Berlin for more than 25 years, I don’t think I’ll ever be a city person and I like being out in nature.” Sarah Tekath
If you are planning your summer vacation on Lake Garda, you will probably notice an unusually low water level this year. 70 cubic meters of water per second are currently being diverted from the lake towards the Po Valley. There, desperate farmers are trying to brave Italy’s drought of the century. With water from Lake Garda, they are trying to keep the Po from drying up completely and save part of the harvest.
The Italian government sees itself in a comparatively better position with regard to natural gas supplies. Prime Minister Mario Draghi is adamant that Italy is better prepared for a Russian supply stop than its European neighbors, and that no bottlenecks are to be feared in the winter. Isabel Cuesta Camacho took a closer look at how Italy has managed to become less dependent on Russia within a short period of time.
Canada announced on Saturday that it would return the turbine serviced there for the Nord Stream 1 pipeline to Germany. Russia had argued that the missing turbine was one of the reasons for curtailing gas supplies. Despite the sanctions and clear criticism from Kyiv, Siemens wants to install the turbine in Russia as quickly as possible. Maintenance work on the pipeline will start today and is expected to last about ten days.
In Germany, the discussion about the enforcement of the Digital Services Act (DSA) could become complicated. The DSA stipulates rules for which very different authorities are responsible in Germany – and for whose implementation many national requirements must be adjusted. Falk Steiner explains the enormous task the federal and state governments now face.
Faced with the cut-off of Russian gas supplies, Italy affirms that it will be able to get through the winter without emergencies. In recent weeks, Italy has stepped up gas storage and increased its cooperation with African countries on gas supplies. The Minister for Ecological Transition, Roberto Cingolani, continues to expect that Italy will be able to get through the winter without supply shortages. He already announced this in February (Europe.Table reported).
“In Italy, we are preparing for this winter on the energy front. The measures under consideration ensure that there will be no emergency next winter,” Prime Minister Mario Draghi also said at a press conference after the European Council in Brussels in late June. Italy’s dependence on Russian gas has dropped from 40 percent to 25 percent, Draghi said. Russia has systematically cut its gas supplies to Europe, starting June 15 with a 40 percent cut for Germany. On June 16, Russia supplied 15 percent less gas to Italy, and 50 percent less the following day.
After the meeting of the gas emergency committee at the end of June, the Ministry of Ecological Transition decided to tighten the measures. It commissioned the Italian transmission system operator Snam to supply the lacking volumes in order to reach the target of 5.4 billion cubic meters set for June. Meanwhile, Italy has more than tripled its storage levels. They currently stand at 60 percent. Italy has the second-largest gas storage capacity in Europe after Germany and, unlike the Federal Republic, also has strategic gas reserves. The reserves were created by law in 2000.
Natural gas production from domestic deposits is also rising in Italy for the first time in four years. The Italian “Plan for the Transition to Sustainable Energy for Eligible Areas” (PiTESAI) had actually envisaged a reduction in domestic production from 20 percent in 2000 to 3 to 4 percent in 2020. This is now to be reviewed, according to Minister Roberto Cingolani, in order to cope with the current crisis and reduce gas imports. In areas such as the lower Adriatic, production from already active fields can be increased.
As a secure base for the winter, the Italian government aims to exceed 85 percent gas reserves by the end of the year, Minister Cingolani said on the sidelines of the Energy Council in Luxembourg on June 27. “In the meantime, our operation to diversify sources of supply with other countries will allow for new flows that will more than compensate for what has been or will be lost in Russian supplies,” Cingolani said. These supplies would already arrive, especially through the pipelines of the southern routes.
In recent months, the government has taken steps to diversify its gas supply sources and thereby reduce its dependence on Russia. Between eight and ten billion cubic meters of natural gas could come from Algeria, Libya and Azerbaijan in two years. Italy could also secure supplies from North Sea producers. Draghi also met his Israeli counterpart Naftali Bennett in mid-June to discuss the planned Eastmed-Poseidon pipeline. This would allow natural gas supplies from Israel via Cyprus and Greece to Otranto in southeastern Italy.
Meanwhile, liquefied natural gas is transported via ship to the three Italian regasification plants in the Ligurian cities of La Spezia and Livorno and in Rovigo on the Adriatic coast. The import quota could increase by another five million cubic meters as the plants could process 20 to 25 percent more feedstock. Additional LNG could come from Qatar, Egypt and Israel. In April, the government already signed new supply contracts with Angola and the Republic of Congo. The United States has also committed to supplying at least an additional 30 billion cubic meters of liquefied natural gas to Europe for the coming winter, some of it to Italy. As a result, the Snam Group has acquired a regasification vessel that it plans to station off the west coast near Piombino. A second vessel is due to arrive at the port of Ravenna on Italy’s east coast by the end of the year.
Cingolani further told Italian media that no critical point has yet been reached: “The development of the gas flow is constantly monitored in cooperation with the operators.” While the minister did not want to downplay the difficult situation that a winter with fewer foreign gas supplies could mean. But Italy would be less affected than other European countries if Russia were to turn off the gas tap altogether.
According to the Ministry of Ecological Restructuring, 43.3 percent of Italy’s natural gas imports in 2020 will come from Russia, by far the country’s largest gas supplier. Algeria (22.8 percent), Norway and Qatar (around 10 percent each) also play an important role. In 2021, 38 percent of the gas consumed in Italy came from Russia.
The search for alternative sources, meanwhile, does not rule out the possibility of the Italian government pushing ahead with a proposal at the European level for a gas price cap.
Now that the DSA has been passed in the European Parliament, the EU Commission, which will be responsible for supervising the particularly large platforms and search engines (VLOP and VLOSE), can slowly get to work: “Enforcement is key,” wrote Commissioner for the Internal Market Thierry Breton in a LinkedIn post explaining the EU approach to DMA and DSA enforcement.
The Commission wants to pull together more than 100 employees in the Connect Directorate General, the de facto digital ministry, and from the Competition Directorate General, and in some cases recruit new staff, in order to enforce DMA and DSA within the scope of their responsibilities. But the interplay of the DSA, DMA, Data Governance Act, Data Act, AI Act and other legislation is complex, which is why the EU Commission is now planning an implementation strategy (Europe.Table reported). While the DMA has repercussions for the enforcement of competition law in the member states, there is not much to do on their part. With the DSA, this is more complicated.
As a regulation, the DSA is directly binding European law. However, it contains many provisions whose enforcement is the responsibility of national authorities and courts. This leads to a need for action at the federal and state levels, as shown by a June response from the German government to a minor interpellation from the CDU and CSU parliamentary groups, when the DSA was already negotiated. “Due to the fully harmonizing effect of the DSA, the national legal framework must be fundamentally revised. This applies to the Telemedia Act (TMG), the Network Enforcement Act and presumably also to the Federal Protection of Young Persons Act (JuSchG),” the German government’s response reads. “As part of the revision, it is also possible that a need for consequential amendments in other laws could arise. The states must examine on their own authority whether adjustments are necessary in the Interstate Media Treaty and the Interstate Treaty on the Protection of Minors.”
Specifically for the Network Enforcement Act (NetzDG), the Federal Ministry of Justice under FDP leader Marco Buschmann needs to examine a need for adjustments. The DSA uses a different regulatory technique than the Network Enforcement Act, the Federal Government told the opposition. The requirements for reporting procedures are roughly comparable, it says. The DSA leaves the definition of illegal content to national law or other EU law.
However, it also states, “According to current knowledge, ‘illegal content’ under the DSA is any information that does not comply with Union law or the law of a member state. Accordingly, the concept of ‘illegal content’ will be different from the concept of ‘unlawful content’ under the NetzDG, which is determined exclusively by national criminal law.”
As a result, it is supposed to be a kind of double-door principle: Illegal according to DSA is what is illegal according to national law, if this national law complies with European law. Banned is then what is banned, if such a ban is legal in the EU. Officially, none of the interviewees wants to confirm that this was created as a mechanism primarily with states with a problematic rule of law in mind, such as Poland or Hungary.
To prevent authorities of individual member states from crippling the entire process, whether for economic or political motives, the DSA has provided for both a comparatively strong position of enforcement authorities, but also conflict resolution mechanisms. “Member states must create independent authorities (“digital service coordinators”). These are to monitor compliance with the DSA and be able to issue fines of up to 6 percent of a company’s annual global revenue, for example,” explains Paul Seeliger of the German Research Institute for Public Administration. “The digital services coordinators can initiate cross-border initiatives to call on passive counterparts to take action. Even in this process, however, the final decision on whether and how to punish violations remains with the local competent authorities.” Whether the attempt to learn from the enforcement experience with the GDPR will be successful remains to be seen in practice, says Seeliger.
Germany already has bodies responsible for most of the regulations: For the content moderation process, for example, there is the Federal Office of Justice in Bonn, which has 37 offices responsible for overseeing platforms under the Network Enforcement Act. The state media authorities are currently responsible for issues relating to the lawfulness of content under the Interstate Treaty on Media Services, insofar as they have been assigned the authority by the states. For data protection aspects, the independent data protection supervisory authorities of the German states are generally responsible, depending on the location of the respective company. And many of the new regulations are additional regulations to enforcement mechanisms that already exist. For example, if the terms of use or the interface design mislead consumers, it would already be theoretically possible today for consumer associations to control the terms and conditions under the Act on Applications for an Injunction. The DSA would have to be included in the catalog of applicable laws so that injunctions or even model declaratory actions are also possible.
But that is not absolutely necessary for DSA enforcement in all areas, says Paul Seeliger. The legal expert at the German Research Institute for Public Administration does not necessarily see the DSA as the legal instrument of choice for the regulation of dark patterns, for example: “The DSA sees itself as a catch-all law for dark patterns and explicitly regulates only a very small section. In particular, competition and data protection law take precedence as special legal matters.”
In the end, it is up to the German government – together with the federal states – to tie together the complex mixture into effective enforcement in Germany. It must make decisions, such as who should act as Digital Services Coordinator in Germany. But this could turn out to be a tough fight. It is unlikely that the state legislatures will transfer some of their responsibilities to a federal authority.
In a guest article for the FAZ, Green Party media politician and Bundestag Digital Committee Chairwoman Tabea Rößner already signaled: She does not see that the Federal Network Agency could be solely responsible as Digital Services Coordinator. Together with Cologne-based media lawyer Karl-Eberhard Hain, she outlines several options for how the German DSC could be organized.
Several options seem unrealistic to the authors, such as the creation of a joint federal-state authority acting as a DSC. The transfer of sole responsibility to the Federal Network Agency or to the joint media institution body ZAK, the Commission on Licensing and Supervision, which is not itself an independently constituted authority, also does not appear to the authors to be covered by the DSA. Instead, Rößner and Hain argue that one authority should be given primary responsibility and the other players should retain their responsibilities – the Digital Services Coordinator should then actively involve the other players in their own work via mirror departments. Rößner and Hain are thinking aloud about whether one of the large state media authorities could be entrusted with the task. It is no secret that Tobias Schmid, Head of the State Media Authority in North Rhine-Westphalia, would be up for the task.
The Federal Ministry for Digital and Transport (BMDV), which is politically responsible for the DSA at the federal level, would probably prefer the Federal Network Agency in principle, but in the opinion of Rößner and Hain, it does not currently meet the criteria of the European legislator with regard to the DSA. This is because the Federal Network Agency is still technically subordinate to the Federal Ministry for Economics and Ministry for Digital and Transport and bound by instructions. After an ECJ ruling in 2021, its independence will have to be strengthened anyway in order to meet the requirements of the common rules for the internal market in natural gas and repealing Directive 2003/55/EC. According to government circles, this is actually to happen this year. Then independence could be extended to all areas of responsibility, including preemptively the DSA.
The responsible parties are thus now faced with a daunting task: On the one hand, they have a duty to devise a functioning supervisory regime for DSA in Germany. At the same time, they must merge the complicated interaction of media supervisory authorities, data protection authorities, the Federal Office of Justice and other players into a meaningful whole – politically delicate terrain in a federal state. Here, a long, complicated and particularly German process looms, making the timely establishment of institutions before the DSA regulations take effect in early 2024 seem ambitious. It will probably keep jurists as well as the responsible ministries and politicians busy for many months.
The way is clear for the delivery of the Siemens turbine serviced in Canada for the Nord Stream 1 gas pipeline. The government in Ottawa announced on Saturday evening that it would make an exception to the Russia sanctions and send the turbine back to Germany. Russia has justified a reduction in gas deliveries through the pipeline, among other things, with the missing turbine. The German government, however, had stressed that it considered this to be an excuse and that Russia was using gas supplies as a political weapon. Russia, in turn, had stated that gas deliveries to Europe would be increased again as soon as the turbine returned from Canada.
On Saturday, the Canadian government stated that it would grant a temporary and revocable permit to Siemens Canada to allow the return of repaired Nord Stream 1 turbines to Germany. Without the necessary supply of natural gas, the German economy would face major problems and the German population could not heat their homes in the winter.
A spokesperson for the German government most recently spoke of “positive signals” from Canada concerning the return of the turbine. The government had argued that the turbine should be reinstated so that Russia could no longer blame it on a technical problem. That, in turn, had not pleased Canada because Ottawa feared it would violate Western Russia sanctions if the turbine were shipped to a compressor station in Russia. As a result, the solution is to ship the turbine to Germany first.
The reduction of gas supplies via Nord Stream 1 has prompted the German government to take emergency measures. Among other things, it is concerned that German gas storage facilities may not be sufficiently filled by the fall to get companies that rely on gas for production well through the winter. Maintenance work on the pipeline begins today, Monday, and will last about ten days. Repeatedly, fears have been expressed that Russia could send even less gas through the pipeline afterward, or even none at all. rtr/leo
An international investigative network revealed information yesterday about lobbying and tax evasion by ride-hailing service provider Uber during its market entry in various countries. The documents claim that the company lobbied policymakers to relax labor and cab laws, among other things, and used illegal methods to evade regulators and law enforcement.
The Consortium’s Uber files reveal the exceptional efforts made by the company, founded in 2009, to set up shop in nearly thirty countries. The data includes more than 124,000 documents such as emails, text messages, invoices or PowerPoint slides from 2013 to 2017, which were first obtained by the British newspaper The Guardian and passed on to the International Consortium of Investigative Journalists (ICIJ) and other international research networks. In Germany, NDR, WDR and Süddeutsche Zeitung were involved.
Company lobbyists, including former advisers to President Barack Obama, pressured government officials to drop their investigations, rewrite labor and cab laws and loosen background checks on drivers, the documents show. Among other things, the documents reveal how former European Commissioner Neelie Kroes granted the company benefits while she was still on leave, before then joining Uber’s advisory board.
Emmanuel Macron is said to have prevented a ban on Uber services in the city of Marseille during his time as French Minister of the Economy. In Germany, the company lobbied only partially successfully. Rupert Scholz, constitutional lawyer and ex-Minister of Defense, for example, provided an expert opinion on the advantage of Uber. The economist Justus Haucap, in turn, wrote a study and a guest article for the FAZ, which Uber partially edited, according to the documents.
The Uber files also claim the company cut its tax bill by millions of dollars by sending profits through Bermuda and other tax havens, then “sought to deflect attention from its tax liabilities by helping authorities collect taxes from its drivers”.
In a written statement, Uber spokeswoman Jill Hazelbaker acknowledged “mistakes” made in the past. According to the SZ, Uber Germany has called the behavior of former CEOs and executives “inexcusable” and announced investigations into the allegations. leo/ AP
Tesla CEO Elon Musk has announced the end of his billion-dollar takeover attempt of Twitter. The short message service had breached several points of the takeover agreement, Musk said on Friday evening. Twitter shares fell 7.5 percent to $34.05 in after-hours trading following the announcement.
Musk had originally offered $54.20 per share. The total volume of the transaction was around $44 billion. However, it had become apparent over the past few weeks that there were severe frictions behind the scenes.
Twitter announced plans to file a lawsuit against Musk’s withdrawal. According to experts, the company has a solid chance of successfully defending itself in court against Tesla CEO Elon Musk’s withdrawal from the takeover. However, it is also possible that the short messaging service will opt for renegotiations or a settlement instead of waging a protracted legal battle against Musk to force him to buy the company under the terms agreed in April. dpa/leo
Following the filing by the ailing energy company Uniper for government stabilization measures, it remains unclear exactly what these measures will look like. German Minister for Economic Affairs Robert Habeck also wants shareholders to contribute to the rescue. “It (Uniper) belongs to someone, someone who is solvent and can provide support,” the Green politician told Deutschlandfunk radio.
Uniper’s main shareholder is the Finnish power company Fortum, which holds around 80 percent of the share capital, and which in turn is just over 50 percent owned by the Finnish state. On Friday, Fortum proposed a restructuring of Uniper – with ringfencing Uniper’s German businesses under government ownership. “We believe that a reorganization of Uniper’s business portfolio, i.e. a bundling of the system-critical German business areas, can best solve the acute problems in the long term,” said Fortum CFO Bernhard Günther.
According to government sources, there was no decision yet on Friday on concrete measures by the German government. A billion-euro investment by the federal government in Uniper through an equity stake is possible. However, a mix with the option of Uniper passing on high prices to customers is also possible.
As Germany’s biggest gas importer, Uniper is under severe pressure following the heavy cutback of Russian gas supplies through the Nord Stream 1 pipeline. The company has to buy expensive gas to service contracts with its customers. Uniper plays a central role in Germany’s energy supply, providing gas to more than a hundred municipal utilities and industrial companies. dpa
According to the ECB’s supervisory authority, major banks in the euro area are not adequately prepared for climate risks worth billions of euros and urgently need to make improvements. The European Central Bank’s (ECB) first climate stress test revealed that financial institutions are not yet sufficiently incorporating the financial and economic impacts of climate change into their stress test frameworks and internal models. According to the calculations, banks face losses of at least €70 billion as a result of an increase in natural disasters and profound changes in many industries as they transition to a greener economy.
Banks in the eurozone “must urgently step up efforts to measure and manage climate risk”, the ECB’s Supervisory Chief, Andrea Enria, warned at the presentation of summary stress test results on Friday. 65 percent of the 104 banks examined performed poorly, according to the supervisors, showing that they “do not yet have a climate risk stress-testing framework”. Banks, however, could not fail the test, which was declared a “learning exercise”. The results also have no direct impact on capital adequacy requirements.
The total of 70 billion in environment-related credit and market losses refers to the 41 larger banks that had to work through even the most negative scenarios. It reflects “only a fraction” of the actual climate-related risk to the industry, supervisors warned. Speaking in Frankfurt, Frank Elderson, the ECB’s Vice-Chair of the ECB supervisory board, stressed, “We expect banks to take decisive action and develop robust climate stress-testing frameworks in the short to medium term.” dpa
Building renovation based on circular principles can significantly improve the energy efficiency of the building sector and make an important contribution to achieving carbon neutrality. This is stated by the European Environment Agency (EEA) in a briefing published last week. The study examines the impact of circular economy principles on the benefits of building renovations. The EEA concludes that the circular economy can substantially reduce material consumption and contribute to significant additional reductions in carbon emissions in European buildings by 2050.
Between 2005 and 2019, existing measures and warmer winters helped reduce carbon emissions from buildings by 29 percent during their use phase, according to the EEA. However, to meet EU climate targets, this reduction would need to be expanded to 60 percent. “With buildings’ use accounting for 40 percent of annual EU energy consumption and 36 percent of annual EU greenhouse gas (GHG) emissions from the energy sector, improving the sustainability of the buildings sector is critical to meeting EU climate targets,” the briefing states.
20 to 25 percent of life-cycle emissions from the current EU building stock are embedded in building materials. “The most effective circular renovation actions to reducing embedded emissions are extending the lifespan of existing buildings and increasing the intensity of building use.” This would reduce the demand for new buildings, which consume more materials than renovating existing buildings. Ambitious circular renovation strategies could save significant amounts of greenhouse gas emissions between 2022 and 2050, depending on the scale of renovation, according to the EEA. leo
To help speed up the switch to electric mobility, several companies are calling for a reform of company car taxation as part of the planned emergency climate protection program. There is a need for an “ecological restructuring of company car taxation,” Ikea, Aldi Süd and eleven other companies appeal in a joint letter to the German ministers of economics, transport and finance published on Friday. “Two out of three new cars are registered as company cars in Germany. These new registrations should be fully electric as soon as possible, because they will be available to the population as affordable used cars after a few years,” the letter says.
The companies further call for support for the “ambitious European fleet limits,” “ambitious and needs-based targets for charging infrastructure” and “super write-offs for pure battery electric company cars.” These measures should accelerate the transition to electromobility, which is essential to meet the government’s 2030 climate targets, the statement said.
“In order to achieve the climate targets set by the German government, emissions in transport must be significantly reduced very quickly,” said Jan Lorch from the management of outdoor equipment manufacturer Vaude. He added that everything should now be done to accelerate electromobility among companies. “Since there is unfortunately little happening on a voluntary basis, we are calling for concrete measures as soon as possible.” dpa
Agora Agriculture was only founded just about two months ago. Christine Chemnitz shares the leadership of the independent think tank for agriculture, food and forestry with Harald Grethe. Agora Agriculture is part of the Agora think tanks, which also include Agora Energiewende and Agora Industry. Chemnitz comes from a small village in Lower Saxony, studied agricultural sciences in Göttingen and Berlin, and then earned her doctorate in agricultural economics at Humboldt University in Berlin.
She is currently setting up the organization, there are no regular working days yet. At present, the most important task is to assemble a strong and creative team. By the end of the year, 14 people are to be hired. There are times when Christine Chemnitz spends an entire day reading applications.
Her focus is on multiple fields – for example, the restructuring of livestock farming, sustainable agriculture, the rewetting of peatlands, or sustainable nutrition. To this end, current situations and strategies for action are analyzed.
Even though the company’s staff is currently still being built up, Agora Agriculture’s goals are clear: “Firstly, the transformation of agriculture and nutrition toward greater sustainability must gain momentum so that sustainability goals such as carbon neutrality and biodiversity protection can be achieved,” Chemnitz explains.
Secondly, while academic institutions help inform decision-makers in the political arena, the altitude of scientific publications is often too high. Many issues have not yet been sufficiently discussed with interest groups, have not yet been thought through far enough and translated into legislative processes, and have not yet been communicated widely enough and in a way that everyone understands. Agora Agriculture is addressing these issues. The aim is to make it easier for policymakers to utilize science-based concepts.
“For this purpose, Agora Agriculture wants to engage in dialogue with all key players from the fields of science, politics and public administration, civil society, the media and business,” says Chemnitz, who headed the international agricultural policy unit at the Heinrich Böll Foundation for 15 years, during which she was also involved in the writing of a book for young people on meat consumption and processing.
Chemnitz’s professional orientation is also reflected in her private life. Namely, she likes to spend her free time outdoors, with her children in Brandenburg. “Even though I’ve lived in Berlin for more than 25 years, I don’t think I’ll ever be a city person and I like being out in nature.” Sarah Tekath