Table.Briefing: Europe (English)

Letta wants European subsidies + Optimism among EU left + Foreign ministers discuss Iran sanctions

Dear reader,

The initiative came from the Commission President: shortly before Christmas, Ursula von der Leyen proposed lowering the protection status of the wolf from “strictly protected” to “protected.” The EU should advocate this within the framework of the Bern Convention of the Council of Europe. In a second step, the Commission would then have amended the Habitats Directive accordingly, thus enabling more active management of wolf populations. This would mean significantly more removals, i.e. not just the shooting of conspicuous specimens.

This initiative is currently coming to nothing. There is no qualified majority among the member states. Germany, which would have to abstain due to the opposition of Environment Minister Steffi Lemke (Greens), plays a key role here. The large Member States Italy and France, Poland and Romania are in favor of von der Leyen’s initiative. However, this is not sufficient, especially as Spain would not be in favor either. In view of the lack of prospects for a majority, the Belgian Council Presidency has not yet put the matter to a vote in the Council of Environment Ministers. She also does not want to take the oath in the circle of Permanent Representatives this Wednesday.

It is becoming increasingly clear that the plan will not come to fruition before the European elections. The push for more active wolf management is thus probably over for the next few years. Have a good day!

Your
Markus Grabitz
Image of Markus  Grabitz

Feature

Letta report calls for more harmonization

The President of the Jacques Delors Institute, Enrico Letta, calls for more harmonization of rules in the European single market. In his Report on the Future of the Single Market, parts of which are available to Table.Briefings, Letta writes that many companies suffer from the bureaucratic burden caused largely by overlapping regulations in the EU’s complex multi-level system.

In order to create more clarity here, the EU institutions should “give clear priority to the use of regulations when formulating internal market rules.” If the use of a directive cannot be avoided, the member states should “show more discipline” and not introduce measures that go beyond what is absolutely necessary in accordance with the directive. In his report, Letta also advocates a “European Code of Business Law” in order to level out the differences in company law in the member states.

Topic at the special summit

The states had commissioned the former Italian Prime Minister with the report. On Monday, he sent a draft of the “political introduction” to the governments. The heads of state and government want to discuss Europe’s competitiveness at their special summit on Wednesday and Thursday.

In his introduction, Letta identifies an urgent need for action to ensure that the EU does not continue to lose ground to the USA and China. While per capita economic output in the USA rose by almost 60 percent between 1993 and 2022, growth in Europe was less than half as high, he writes. The cornerstones of the European success model, free trade and openness, are also jeopardized by geopolitical tensions.

Letta wants ‘savings and investment union

Among other things, Letta is in favor of strengthening the freedom of research. He calls for research and development to be elevated to a 5th freedom in the internal market, alongside the free movement of people, goods, services and capital. The aim is to “place research and innovation at the heart of the single market and thus promote an ecosystem.” Europe could benefit from this in areas such as artificial intelligence, biotech and especially in the healthcare sector.

Letta also sees an “urgent need to catch up” in strengthening the single market for financial services, energy and digital communication. When referring to financial services, Letta does not use the usual EU term “capital markets union,” but instead speaks of a “savings and investment union” in his report. However, he means the same: the integration of EU financial markets is intended to mobilize more private money for economic development.

However, Letta is concerned about social acceptance. “Genuine integration of financial markets in Europe will not be realized until European citizens and political decision-makers realize that this integration does not only benefit the financial industry.” Instead, it must become clear how crucial they are for achieving “overarching goals that are otherwise unattainable,” such as the green and digital transformation.

More European subsidies

Letta is also calling for more integration when it comes to state aid. The rules on state aid, which have been relaxed since the pandemic and the invasion of Ukraine, have shown that large member states such as Germany in particular have benefited and competition has been distorted. As a stronger European industrial policy is nevertheless necessary, according to Letta, the EU should restrict national aid to a greater extent, but gradually expand aid at the European level.

This would probably require a significant increase in the EU budget. Letta also believes that the upcoming Multiannual Financial Framework (MFF) from 2028 to 2034 represents a decisive moment to transform the internal market into a “genuine European market.” This point in time will also be decisive because the Next Generation EU reconstruction program is ending, which poses major financial challenges for the EU.

  • EU internal market
  • Industrial policy
  • NextGenerationEU

The European left is reorganizing

It is a paradox: in Germany and many other EU countries, the left-wing parties are in retreat ahead of the European elections. But in Brussels of all places, the capital of the EU, the radical left is making strong gains.

In the shadow of the Berlaymont – the hill on which the EU Commission is enthroned – the less affluent inhabitants of the Belgian capital are increasingly leaning towards the Marxist “Parti des Travailleurs Belges” (PTB).

The PTB could even win the Belgian elections in Brussels in June, which will take place at the same time as the European elections. In a poll in February, Raoul Hedebouw’s party was ahead of the liberal MR (17.9 percent) and the green Ecolo (14.2 percent) with 18.9 percent of voting intentions.

The mood against the EU Commission’s ‘anti-social policy’

The PTB presented itself in a correspondingly good mood at a meeting of European left-wing politicians in Brussels, attended by former Labour leader Jeremy Corbyn, among others, under the motto “Europe for the People.”

More and more people are experiencing social hardship and are calling for a “break with the current policy,” said PTB MEP Marc Botenga at the event, organized by the “European Left” party family together with the PTB. The liberal Belgian government was supporting the EU Commission’s “anti-social policy” instead of taking countermeasures.

“We must not allow the extreme right to absorb people’s anger,” said Botenga. That is why the European left must counter and offer alternatives to Brussels’ “austerity policy.”

What sounds like a remake of the banking and euro crisis ten years ago was at least well received at the event in Brussels. Several hundred participants from all over Europe celebrated their left-wing idols. Corbyn warned against an escalation of the conflict in Ukraine: “Are we sleepwalking into a major war again?” The conflict cannot be resolved through armament, but only through negotiations. “Everyone knows there will be a great war – or a deal.”

Elke Kahr, the communist mayor of Graz, Stefanos Stefanou, Secretary General of AKEL from Cyprus, and Walter Baier, President of the Party of the European Left, also received much applause. Baier warned of a shift to the right in the European elections and called on the left to stand united against it.

Internal power struggles continue

However, the left is a long way from unity. The major parties from Germany, France and Spain were not represented at the meeting in Brussels, or only in small numbers. Prominent EU politicians such as Martin Schirdewan and Manon Aubry sent their apologies.

There is a dispute over cooperation with the PTB and other radical left-wing groups. The new “Sarah Wagenknecht Alliance” (BSW) has no fear of contact, as a member of the Bundestag, Andrej Hunko (formerly the left party), said. However, on the other hand, the BSW is no longer trying to position itself as “left-wing” – but as a party of “reason and justice.”

In contrast, the German left accuses the BSW of not clearly distinguishing itself from the AfD. Cooperation between the two parties after the European elections seems out of the question, which poses problems for the future left-wing group in the European Parliament.

Exploratory talks between the various parties and movements have already begun. However, the talks are being hampered by differences of opinion on foreign policy – and by power struggles between the comrades.

In terms of foreign policy, the wars in Ukraine and the Middle East are having a divisive effect. Left-wing parties from northern Europe are calling for more solidarity with Ukraine, while their comrades from Spain and Ireland are mobilizing for the Palestinians.

Basically, these are the same rifts dividing the 27 EU member states. The only thing all left-wing parties have in common is the demand to end the wars as quickly as possible and to prevent rearmament at the expense of the socially weak.

Rising poll ratings

Another problem is the power struggles within the German left. Following the split-off of the BSW, the Left Party has to fear heavy losses in the European elections. In contrast, the BSW, with its leading candidates Fabio de Masi and Thomas Geisel, is making gains in the polls.

In the latest projection by “Europe Elects,” the BSW is predicted to win three parliamentary seats. This would be part of a modest upswing for the left in Europe: with a total of 47 seats, the left-wing parties could win six more seats than in the last European elections in 2019.

In contrast, the Social Democrats lose 19 seats in the projection and the Greens even 22. The balance of power within the European left in the broadest sense is changing, with radical parties such as those in Brussels feeling a particularly strong tailwind.

However, the wind may change again between now and the elections in June. And it remains to be seen whether the rival parties and movements will ultimately come together to form a parliamentary group. In any case, the mood is combative.

  • European election 2024
  • European elections

Events

April 17, 2024; Brussels (Belgium)
EBS, Conference European Defense & Security Summit 2024
European Business Summits (EBS) addresses current European security challenges. INFO & REGISTRATION

April 17, 2024; 2-3:30 p.m., online
FSR, Discussion Promoting Competition in the Retail Energy Market
The Florence School of Regulation (FSR) assesses whether the Italian experience could serve as a reference for other countries also characterized by a low degree of energy consumers’ engagement. INFO & REGISTRATION

April 17, 2024; 4-5 p.m., online
Hertie School, Presentation European digital sovereignty: A new vision for global digital connectivity?
The Hertie School addresses the concept of digital sovereignty. INFO & REGISTRATION

April 17, 2024, 5-6:30 p.m., Berlin
Hertie School, Panel Discussion The macroeconomics of decarbonization: Understanding the complex interplay
The Hertie School explores the complex challenges associated with achieving climate neutrality by mid-century. INFO & REGISTRATION

April 18-19, 2024; online
ERA, Seminar European Corporate Taxation Law: Recent Developments
The Academy of European Law (ERA) provides participants with a comprehensive update on the most recent developments in European corporate taxation law. INFO & REGISTRATION

April 18-19, 2024; Brussels (Belgium)
GMF, Conference Brussels Forum 2024
The German Marshall Fund (GMF) provides networking opportunities and public discussions for policymakers, private-sector visionaries, experts, and community leaders. INFO & REGISTRATION

April 18, 2024; Brussels (Belgium)
EBS, Conference Ukraine’s Future Summit 2024
European Business Summits (EBS) discusses key sectors of the Ukrainian economy, aiming to foster a greener development. INFO & REGISTRATION

April 18, 2024; 10-11 a.m., online
TÜV, Seminar A Roadmap to Corporate Sustainability – Understanding Non-Financial Reporting Assurance: Ensuring Transparency and Accountability
TÜV provides information on different aspects of the Product Carbon Footprint (PCF). INFO & REGISTRATION

April 18, 2024; 12:30-4 p.m., Brussels (Belgium)
FEPS, Presentation The transformation of the mainstream right in Western Europe
The Foundation for European Progressive Studies (FEPS) presents the policy study ‘The transformation of the European mainstream right and its impact on (social) democracy’. INFO & REGISTRATION

News

EU foreign ministers discuss Iran sanctions

What options does the EU have after Iran’s major attack on Israel? The EU foreign ministers are holding a special meeting today at the invitation of Josep Borrell to discuss possible steps. According to diplomats, the EU’s priority is to ensure that there is no conflagration in the region and that further escalation can be avoided. “We are on the edge of a cliff and we have to move away from it,” said Borrell in an interview with a Spanish radio station: “We have to step on the brakes and reverse gear.”

Additionally, the question of further punitive measures against Tehran will be discussed today. For example, the existing sanctions against drone manufacturers could be extended. Foreign Minister Annalena Baerbock made similar comments on ARD television. So far, the measures relate to individual manufacturers and the transfer to Russia. According to reports, there is talk of extending the sanctions regime to missile technology in general and to actors who supply drone components or missiles to Iran’s proxies such as Hezbollah in Lebanon.

Iran’s Revolutionary Guards not yet on terror list

Whether Iran’s powerful Revolutionary Guards should be added to the list of terrorist organizations will also be discussed again. According to the EU Commission, exponents of the Revolutionary Guards and parts of their huge business empire are already listed. For the Revolutionary Guards to be placed on the terror list, relevant investigations or convictions for terrorist acts in a member state are required. This position was reportedly also set out by the Council’s legal service in an expert opinion last year.

However, some member states have so far also shied away from listing for political reasons to keep the channels of communication with the Revolutionary Guards in Tehran open. The foreign ministers’ meeting will take place virtually, will begin at 5 p.m. and is expected to last between one and a half and two hours. As the meeting is informal, no decisions can be made. However, the foreign ministers will meet next week in Luxembourg for the next regular meeting. However, the discussion on the situation in the Middle East following the Iranian attack is also likely to overshadow the discussions of the EU heads of government at the EU summit on Wednesday and Thursday.

Scholz meets Xi Jinping

Olaf Scholz will then be just back from China, where the Federal Chancellor is meeting Chinese President Xi Jinping today. This will make him the first Western head of government to meet China’s president since the escalation between Iran and Israel.

His visit to China is therefore associated with the small hope of being able to do something for peace in the Middle East. As a trading power, China has considerable influence in the region. Moreover, to the astonishment of many Western countries, it has in the meantime managed to bring about a rapprochement between Iran and Saudi Arabia. No one had expected this – and many expected that Beijing would now be able to exert even more influence on Iran. However, experts warn that not too much should be expected from this. Stephan Israel, Stefan Braun, Finn Mayer-Kuckuk

  • EU-Außenpolitik

EU Commission approves Ukraine’s reform plan

The EU Commission has approved Ukraine’s necessary reform plan for the disbursement of further funds from an aid program worth billions. The Brussels authority assessed Ukraine’s comprehensive reform and investment strategy for the next four years positively, as it announced in the evening. This paves the way for regular and predictable support for the country attacked by Russia.

The EU countries now have one month to give the green light for the plan. According to the information provided, up to €1.89 billion could then flow as pre-financing until the regular disbursements begin.

Money is linked to conditions

The EU aid program was approved at the beginning of February. It provides for financial aid amounting to €50 billion over a period of four years. €33 billion of this is to be paid out as loans, the rest in the form of non-repayable grants. €4.5 billion was paid in advance at the end of March.

Compliance with conditions should be checked for further money. Ukraine had presented a plan to show how the country, which had been severely weakened economically by Russia’s war of aggression, was to recover. The payments would be disbursed subject to the implementation of the agreed reform and investment steps, the Commission announced further.

With the financial aid, the EU wants to enable the Ukrainian state to continue paying wages and pensions. In addition, the operation of hospitals, schools and emergency shelters for resettled people is to be guaranteed. The money can also be used to restore infrastructure destroyed by the Russian war of aggression. This includes power lines, water systems, roads and bridges. Last year, the EU disbursed financial aid amounting to €18 billion. dpa

  • Ukraine-Krieg

Italian socialists want fresh start for EU joint investments

The leader of the Italian Socialists, Elly Schlein, presented her party’s campaign for the European elections in Rome on Monday. This stands for a “more social, fairer and more ecological Europe,” said the leader of the Partito Democratico (PD). The European Union is facing “epochal challenges” that no member state can overcome alone. The 38-year-old was a Member of the European Parliament from 2014 to 2019.

For a more social Europe, the continuity of joint investments is necessary. “Let’s not forget that the EU was able to respond to the coronavirus pandemic by implementing the largest investment plan in the history of Europe,” said Schlein, referring to Next Generation EU. The recovery plan, with a volume of around €800 billion, does not simply fall on the countries, especially Italy, but contains clearly defined goals and targets for managing these resources. It was only in the face of the pandemic that some taboos about the need for joint investment were dropped, “so we are not starting from scratch.”

EU should lead the way in ecological conversion

Specifically, the PD wants to campaign for an EU-wide minimum wage, which should not be under €9 per hour. This discussion has also been taking place at the national level for years. Italy does not yet have a law on this. A more social Europe must also take the lead in the ecological transition. Unlike the politicians of the right-wing Italian governing coalition of Fratelli d’Italia, Lega and Forza Italia, Schlein repeatedly speaks of a “climate emergency.”

The EU lacks the political will to launch a common defense policy. It could only succeed if the member states were prepared to pool their expertise in foreign, security and defense policy. “It is not enough to create an empty box within the Commission, a kind of commissioner with no portfolio and no real competence in dealing with the defense ministers of the 27 countries.” In terms of migration policy, the PD is calling for a “European Mare Nostrum,” i.e. rescue missions in the Mediterranean organized and managed by Europe. There is also a need for legal access routes to Europe.

List is drawn up late in Italy

As part of the Party of European Socialists, the Partito Democratico wants to act as a counterweight to the right and the nationalists. Especially now, when the European People’s Party is ready to flirt with the nationalists (editor’s note: the ECR group).

In Italy, the list of candidates for the European elections does not have to be finalized until the end of this month. It has been said for months that both Prime Minister Giorgia Meloni for the right-wing nationalist Fratelli d’Italia and Schlein for the PD could be at the top of their parties’ lists. This is combined with the announcement that they will not move to the European Parliament after the election, but will give up their seats to the runners-up. According to Schlein in Rome, this has not yet been decided. With regard to the rumor that Mario Draghi will become Commission President, which is particularly popular in Italy, Schlein said that, for her, there is only one candidate for this office: the Social Democrat Nicolas Schmit. asf

  • European election 2024
  • Italy
  • NextGenerationEU

European election campaign: Greens campaign with Reintke, Baerbock and Habeck

From April 20, the German Greens will begin their election campaign for the European elections on June 9. This was announced by the party leaders on Monday at the presentation of their campaign. In the first phase, top candidate Terry Reintke will adorn the posters in Germany. From May 9, these will be supplemented by the faces of Economics Minister Robert Habeck and Foreign Minister Annalena Baerbock. From May 23, the party’s final messages will be at the forefront of the nationwide campaign, including “Only democracy creates freedom.”

The election campaign will focus on security and economic policy aspects as well as the continuation of the Green Deal. Party leader Ricarda Lang announced that she wanted to achieve the goal of a minimum wage of €14 in Germany via the EU Minimum Wage Directive. Co-leader Omid Nouripour said they wanted to create an agency for a European intelligence service “that protects our democracies better and earlier and fends off the intrusions we see every day.”

Differentiation from CDU/CSU, despite similar slogans

Meanwhile, top candidate Reintke is practicing maximum demarcation from the CDU/CSU. She criticized the CDU/CSU for trying to “apply the axe to the Green Deal.” How to proceed with the Green Deal was a choice of direction. Maintaining Europe as a business location must be successful or it will be left behind in the ramp-up of green technologies, said Reintke.

The German Greens’ election slogan for the European elections is “Doing what counts.” The election program is entitled “What protects us.” The similarity to the subtitle of the CDU/CSU program “For a Europe that protects and benefits us” is hard to miss. However, the Greens’ title had already been decided in November at the party conference in Karlsruhe. The CDU/CSU only announced their program in March. luk

  • Europawahlen 2024
  • European election 2024
  • Robert Habeck
  • The Greens

DNA: Stakeholders discuss the future of connectivity in Berlin

The White Paper on the Digital Networks Act, which EU telecoms ministers discussed on Friday, will also be discussed today (Tuesday) and on Wednesday at the Federal Ministry for Digital Affairs. Minister Volker Wissing has invited stakeholders to gather their opinions on the future regulation of the telecommunications market in Europe. The consultation launched by the Commission on the White Paper will run until June 30, 2024.

High-performance, reliable and resilient digital infrastructures are the nervous system of digitalization and the basic prerequisite for economic growth and social prosperity, said Volker Wissing ahead of the event. With the White Paper, the Commission had presented an initial, important basis for discussion, although Wissing had already voiced criticism.

Wissing said that the German government wanted to engage in a constructive dialog with all stakeholders before it could submit its statement on the White Paper. “Our goal is to ensure optimal conditions for a strong and sustainable telecommunications sector in the EU.”

White Paper on the Digital Networks Act: spectrum policy as a hotly debated topic

The agenda includes a keynote speech by Renate Nikolay, Deputy Director General of DG Connect, who will be connected via video call. Other topics include:

  • Orientation of the regulatory framework (objectives, scope of application, universal service, sustainability)
  • Copper-to-fiber migration and market regulation
  • Frequency policy
  • Authorizations and rights of the core networks
  • Quantum and post-quantum technologies
  • Security and resilience of submarine cable infrastructures

One of the hotly debated topics will certainly be spectrum policy. While the Commission would like to centralize this, which some companies welcome, the countries do not want to give it out of their hands. Finally, the participants will also discuss the idea of a 3C network (Connected Collaborative Computing). This is about a future ecosystem that spans the entire computing continuum – from semiconductors and wireless technology to connectivity infrastructures, data management and applications. vis

  • Volker Wissing

Dessert

‘See Brussels and die’: the bitter balance sheet of a satirist in the EU Parliament

In his autobiography, Nico Semsrott works through the absurdities of working in Brussels. Some of his colleagues might not like that.

Almost 900,000 people voted for the satirical party “Die Partei” in the 2019 European elections. This brought satirists Martin Sonneborn and Nico Semsrott into the European Parliament. Today, the two no longer speak to each other due to differences of opinion.

Nico Semsrott, the man in the hoodie, joined the Greens, who probably appreciated the newcomer because of his reach. Semsrott made it clear from the outset that he did not intend to work on content. However, Robert Habeck personally gave his approval for Semsrott to join the group in the European Parliament.

Semsrott has now recorded his experiences of working between Brussels and Strasbourg in his biography “See Brussels and Die.” The fact that the result is bitter can be guessed from the subheading: “How I lost my faith in (almost) everything in the European Parliament.” The depressed tone that his fans appreciate runs through the book.

Some of his fellow MEPs are likely to see his descriptions as a fouling of one’s own nest by someone who has not written a single report and has not promoted substantive debates. Nico Semsrott sees himself as a court jester: someone who says what everyone sees but no one wants to admit. In his videos over the past five years, he has repeatedly pointed out absurdities.

Generous expense regulations

He found plenty of material in the European Parliament. On the one hand, there was a bureaucracy led by an Italian who once worked for a now convicted mafioso. At the same time, some MEPs earned money with side jobs and did not take independence very seriously. “My experiences in the European Parliament didn’t disappoint me, they shook me. Even traumatized me in parts,” writes Semsrott. His depression worsened during his time in Brussels.

He also uses much of the book in his current tour program in Germany. For example, the story of the far-right Greek MEP Ioannis Lagos, who was sentenced to 13 years in prison in 2020 and remained an MEP. His staff work in Brussels and Strasbourg, while Lagos’ former bodyguard works from a prison cell. No satirist could make this up.

Semsrott is also surprised by the European Parliament’s expense regulations. Like all MEPs, he receives a first-class rail pass for Germany and Belgium, but can also claim train tickets for the Brussels-Berlin route without having to submit receipts. He received €539 back, even though he had no expenses. On a second occasion, it was only €529; another of the 8,000 parliamentary staff had applied different standards. Semsrott donates the money.

In the gray area between lobbying and corruption

The Kaili affair, which caused turmoil in Brussels at the end of 2022, reassures the satirist. The corruption that he has perceived around him is real: “That means I’m not crazy.” Elsewhere, he lists MEPs who continue to work as lawyers: Rainer Wieland, Axel Voss, Andreas Schwab, Angelika Niebler and Nicola Beer. Voss receives an additional €500 to €1000 a month from Deutsche Telekom. “I’m not saying that Rainer Wieland and all the others are corrupt,” writes Semsrott. “I’m just saying: if I were corrupt, this is exactly what I would do.” Wieland says he earns nothing extra. However, his law firm offers appointments online.

Nico Semsrott was also disconcerted by his encounters with lobbyists, for example with an unnamed chairman of the CDU Economic Council. The man addressed him as “Mr. Sonnenrott” after an event, told him that he had once been an SPD member, too, and about his well-stocked wine cellar at home. Semsrott did not accept the invitation.

How appropriate is criticism from someone who openly admits that the monthly diet of €9,975.42 prevented him from resigning before the end of his parliamentary term? Semsrott is unlikely to make any friends in Parliament with this book.

Because transparency is important to Semsrott, he attaches great importance to clarifying that he did not write the book himself. Others did it for him, based on notes. He did not even read it, he flirts. After five years in the European Parliament, he remains a satirist. Silke Wettach

  • Europäisches Parlament

Europe.table editorial team

EUROPE.TABLE EDITORIAL OFFICE

Licenses:
    Dear reader,

    The initiative came from the Commission President: shortly before Christmas, Ursula von der Leyen proposed lowering the protection status of the wolf from “strictly protected” to “protected.” The EU should advocate this within the framework of the Bern Convention of the Council of Europe. In a second step, the Commission would then have amended the Habitats Directive accordingly, thus enabling more active management of wolf populations. This would mean significantly more removals, i.e. not just the shooting of conspicuous specimens.

    This initiative is currently coming to nothing. There is no qualified majority among the member states. Germany, which would have to abstain due to the opposition of Environment Minister Steffi Lemke (Greens), plays a key role here. The large Member States Italy and France, Poland and Romania are in favor of von der Leyen’s initiative. However, this is not sufficient, especially as Spain would not be in favor either. In view of the lack of prospects for a majority, the Belgian Council Presidency has not yet put the matter to a vote in the Council of Environment Ministers. She also does not want to take the oath in the circle of Permanent Representatives this Wednesday.

    It is becoming increasingly clear that the plan will not come to fruition before the European elections. The push for more active wolf management is thus probably over for the next few years. Have a good day!

    Your
    Markus Grabitz
    Image of Markus  Grabitz

    Feature

    Letta report calls for more harmonization

    The President of the Jacques Delors Institute, Enrico Letta, calls for more harmonization of rules in the European single market. In his Report on the Future of the Single Market, parts of which are available to Table.Briefings, Letta writes that many companies suffer from the bureaucratic burden caused largely by overlapping regulations in the EU’s complex multi-level system.

    In order to create more clarity here, the EU institutions should “give clear priority to the use of regulations when formulating internal market rules.” If the use of a directive cannot be avoided, the member states should “show more discipline” and not introduce measures that go beyond what is absolutely necessary in accordance with the directive. In his report, Letta also advocates a “European Code of Business Law” in order to level out the differences in company law in the member states.

    Topic at the special summit

    The states had commissioned the former Italian Prime Minister with the report. On Monday, he sent a draft of the “political introduction” to the governments. The heads of state and government want to discuss Europe’s competitiveness at their special summit on Wednesday and Thursday.

    In his introduction, Letta identifies an urgent need for action to ensure that the EU does not continue to lose ground to the USA and China. While per capita economic output in the USA rose by almost 60 percent between 1993 and 2022, growth in Europe was less than half as high, he writes. The cornerstones of the European success model, free trade and openness, are also jeopardized by geopolitical tensions.

    Letta wants ‘savings and investment union

    Among other things, Letta is in favor of strengthening the freedom of research. He calls for research and development to be elevated to a 5th freedom in the internal market, alongside the free movement of people, goods, services and capital. The aim is to “place research and innovation at the heart of the single market and thus promote an ecosystem.” Europe could benefit from this in areas such as artificial intelligence, biotech and especially in the healthcare sector.

    Letta also sees an “urgent need to catch up” in strengthening the single market for financial services, energy and digital communication. When referring to financial services, Letta does not use the usual EU term “capital markets union,” but instead speaks of a “savings and investment union” in his report. However, he means the same: the integration of EU financial markets is intended to mobilize more private money for economic development.

    However, Letta is concerned about social acceptance. “Genuine integration of financial markets in Europe will not be realized until European citizens and political decision-makers realize that this integration does not only benefit the financial industry.” Instead, it must become clear how crucial they are for achieving “overarching goals that are otherwise unattainable,” such as the green and digital transformation.

    More European subsidies

    Letta is also calling for more integration when it comes to state aid. The rules on state aid, which have been relaxed since the pandemic and the invasion of Ukraine, have shown that large member states such as Germany in particular have benefited and competition has been distorted. As a stronger European industrial policy is nevertheless necessary, according to Letta, the EU should restrict national aid to a greater extent, but gradually expand aid at the European level.

    This would probably require a significant increase in the EU budget. Letta also believes that the upcoming Multiannual Financial Framework (MFF) from 2028 to 2034 represents a decisive moment to transform the internal market into a “genuine European market.” This point in time will also be decisive because the Next Generation EU reconstruction program is ending, which poses major financial challenges for the EU.

    • EU internal market
    • Industrial policy
    • NextGenerationEU

    The European left is reorganizing

    It is a paradox: in Germany and many other EU countries, the left-wing parties are in retreat ahead of the European elections. But in Brussels of all places, the capital of the EU, the radical left is making strong gains.

    In the shadow of the Berlaymont – the hill on which the EU Commission is enthroned – the less affluent inhabitants of the Belgian capital are increasingly leaning towards the Marxist “Parti des Travailleurs Belges” (PTB).

    The PTB could even win the Belgian elections in Brussels in June, which will take place at the same time as the European elections. In a poll in February, Raoul Hedebouw’s party was ahead of the liberal MR (17.9 percent) and the green Ecolo (14.2 percent) with 18.9 percent of voting intentions.

    The mood against the EU Commission’s ‘anti-social policy’

    The PTB presented itself in a correspondingly good mood at a meeting of European left-wing politicians in Brussels, attended by former Labour leader Jeremy Corbyn, among others, under the motto “Europe for the People.”

    More and more people are experiencing social hardship and are calling for a “break with the current policy,” said PTB MEP Marc Botenga at the event, organized by the “European Left” party family together with the PTB. The liberal Belgian government was supporting the EU Commission’s “anti-social policy” instead of taking countermeasures.

    “We must not allow the extreme right to absorb people’s anger,” said Botenga. That is why the European left must counter and offer alternatives to Brussels’ “austerity policy.”

    What sounds like a remake of the banking and euro crisis ten years ago was at least well received at the event in Brussels. Several hundred participants from all over Europe celebrated their left-wing idols. Corbyn warned against an escalation of the conflict in Ukraine: “Are we sleepwalking into a major war again?” The conflict cannot be resolved through armament, but only through negotiations. “Everyone knows there will be a great war – or a deal.”

    Elke Kahr, the communist mayor of Graz, Stefanos Stefanou, Secretary General of AKEL from Cyprus, and Walter Baier, President of the Party of the European Left, also received much applause. Baier warned of a shift to the right in the European elections and called on the left to stand united against it.

    Internal power struggles continue

    However, the left is a long way from unity. The major parties from Germany, France and Spain were not represented at the meeting in Brussels, or only in small numbers. Prominent EU politicians such as Martin Schirdewan and Manon Aubry sent their apologies.

    There is a dispute over cooperation with the PTB and other radical left-wing groups. The new “Sarah Wagenknecht Alliance” (BSW) has no fear of contact, as a member of the Bundestag, Andrej Hunko (formerly the left party), said. However, on the other hand, the BSW is no longer trying to position itself as “left-wing” – but as a party of “reason and justice.”

    In contrast, the German left accuses the BSW of not clearly distinguishing itself from the AfD. Cooperation between the two parties after the European elections seems out of the question, which poses problems for the future left-wing group in the European Parliament.

    Exploratory talks between the various parties and movements have already begun. However, the talks are being hampered by differences of opinion on foreign policy – and by power struggles between the comrades.

    In terms of foreign policy, the wars in Ukraine and the Middle East are having a divisive effect. Left-wing parties from northern Europe are calling for more solidarity with Ukraine, while their comrades from Spain and Ireland are mobilizing for the Palestinians.

    Basically, these are the same rifts dividing the 27 EU member states. The only thing all left-wing parties have in common is the demand to end the wars as quickly as possible and to prevent rearmament at the expense of the socially weak.

    Rising poll ratings

    Another problem is the power struggles within the German left. Following the split-off of the BSW, the Left Party has to fear heavy losses in the European elections. In contrast, the BSW, with its leading candidates Fabio de Masi and Thomas Geisel, is making gains in the polls.

    In the latest projection by “Europe Elects,” the BSW is predicted to win three parliamentary seats. This would be part of a modest upswing for the left in Europe: with a total of 47 seats, the left-wing parties could win six more seats than in the last European elections in 2019.

    In contrast, the Social Democrats lose 19 seats in the projection and the Greens even 22. The balance of power within the European left in the broadest sense is changing, with radical parties such as those in Brussels feeling a particularly strong tailwind.

    However, the wind may change again between now and the elections in June. And it remains to be seen whether the rival parties and movements will ultimately come together to form a parliamentary group. In any case, the mood is combative.

    • European election 2024
    • European elections

    Events

    April 17, 2024; Brussels (Belgium)
    EBS, Conference European Defense & Security Summit 2024
    European Business Summits (EBS) addresses current European security challenges. INFO & REGISTRATION

    April 17, 2024; 2-3:30 p.m., online
    FSR, Discussion Promoting Competition in the Retail Energy Market
    The Florence School of Regulation (FSR) assesses whether the Italian experience could serve as a reference for other countries also characterized by a low degree of energy consumers’ engagement. INFO & REGISTRATION

    April 17, 2024; 4-5 p.m., online
    Hertie School, Presentation European digital sovereignty: A new vision for global digital connectivity?
    The Hertie School addresses the concept of digital sovereignty. INFO & REGISTRATION

    April 17, 2024, 5-6:30 p.m., Berlin
    Hertie School, Panel Discussion The macroeconomics of decarbonization: Understanding the complex interplay
    The Hertie School explores the complex challenges associated with achieving climate neutrality by mid-century. INFO & REGISTRATION

    April 18-19, 2024; online
    ERA, Seminar European Corporate Taxation Law: Recent Developments
    The Academy of European Law (ERA) provides participants with a comprehensive update on the most recent developments in European corporate taxation law. INFO & REGISTRATION

    April 18-19, 2024; Brussels (Belgium)
    GMF, Conference Brussels Forum 2024
    The German Marshall Fund (GMF) provides networking opportunities and public discussions for policymakers, private-sector visionaries, experts, and community leaders. INFO & REGISTRATION

    April 18, 2024; Brussels (Belgium)
    EBS, Conference Ukraine’s Future Summit 2024
    European Business Summits (EBS) discusses key sectors of the Ukrainian economy, aiming to foster a greener development. INFO & REGISTRATION

    April 18, 2024; 10-11 a.m., online
    TÜV, Seminar A Roadmap to Corporate Sustainability – Understanding Non-Financial Reporting Assurance: Ensuring Transparency and Accountability
    TÜV provides information on different aspects of the Product Carbon Footprint (PCF). INFO & REGISTRATION

    April 18, 2024; 12:30-4 p.m., Brussels (Belgium)
    FEPS, Presentation The transformation of the mainstream right in Western Europe
    The Foundation for European Progressive Studies (FEPS) presents the policy study ‘The transformation of the European mainstream right and its impact on (social) democracy’. INFO & REGISTRATION

    News

    EU foreign ministers discuss Iran sanctions

    What options does the EU have after Iran’s major attack on Israel? The EU foreign ministers are holding a special meeting today at the invitation of Josep Borrell to discuss possible steps. According to diplomats, the EU’s priority is to ensure that there is no conflagration in the region and that further escalation can be avoided. “We are on the edge of a cliff and we have to move away from it,” said Borrell in an interview with a Spanish radio station: “We have to step on the brakes and reverse gear.”

    Additionally, the question of further punitive measures against Tehran will be discussed today. For example, the existing sanctions against drone manufacturers could be extended. Foreign Minister Annalena Baerbock made similar comments on ARD television. So far, the measures relate to individual manufacturers and the transfer to Russia. According to reports, there is talk of extending the sanctions regime to missile technology in general and to actors who supply drone components or missiles to Iran’s proxies such as Hezbollah in Lebanon.

    Iran’s Revolutionary Guards not yet on terror list

    Whether Iran’s powerful Revolutionary Guards should be added to the list of terrorist organizations will also be discussed again. According to the EU Commission, exponents of the Revolutionary Guards and parts of their huge business empire are already listed. For the Revolutionary Guards to be placed on the terror list, relevant investigations or convictions for terrorist acts in a member state are required. This position was reportedly also set out by the Council’s legal service in an expert opinion last year.

    However, some member states have so far also shied away from listing for political reasons to keep the channels of communication with the Revolutionary Guards in Tehran open. The foreign ministers’ meeting will take place virtually, will begin at 5 p.m. and is expected to last between one and a half and two hours. As the meeting is informal, no decisions can be made. However, the foreign ministers will meet next week in Luxembourg for the next regular meeting. However, the discussion on the situation in the Middle East following the Iranian attack is also likely to overshadow the discussions of the EU heads of government at the EU summit on Wednesday and Thursday.

    Scholz meets Xi Jinping

    Olaf Scholz will then be just back from China, where the Federal Chancellor is meeting Chinese President Xi Jinping today. This will make him the first Western head of government to meet China’s president since the escalation between Iran and Israel.

    His visit to China is therefore associated with the small hope of being able to do something for peace in the Middle East. As a trading power, China has considerable influence in the region. Moreover, to the astonishment of many Western countries, it has in the meantime managed to bring about a rapprochement between Iran and Saudi Arabia. No one had expected this – and many expected that Beijing would now be able to exert even more influence on Iran. However, experts warn that not too much should be expected from this. Stephan Israel, Stefan Braun, Finn Mayer-Kuckuk

    • EU-Außenpolitik

    EU Commission approves Ukraine’s reform plan

    The EU Commission has approved Ukraine’s necessary reform plan for the disbursement of further funds from an aid program worth billions. The Brussels authority assessed Ukraine’s comprehensive reform and investment strategy for the next four years positively, as it announced in the evening. This paves the way for regular and predictable support for the country attacked by Russia.

    The EU countries now have one month to give the green light for the plan. According to the information provided, up to €1.89 billion could then flow as pre-financing until the regular disbursements begin.

    Money is linked to conditions

    The EU aid program was approved at the beginning of February. It provides for financial aid amounting to €50 billion over a period of four years. €33 billion of this is to be paid out as loans, the rest in the form of non-repayable grants. €4.5 billion was paid in advance at the end of March.

    Compliance with conditions should be checked for further money. Ukraine had presented a plan to show how the country, which had been severely weakened economically by Russia’s war of aggression, was to recover. The payments would be disbursed subject to the implementation of the agreed reform and investment steps, the Commission announced further.

    With the financial aid, the EU wants to enable the Ukrainian state to continue paying wages and pensions. In addition, the operation of hospitals, schools and emergency shelters for resettled people is to be guaranteed. The money can also be used to restore infrastructure destroyed by the Russian war of aggression. This includes power lines, water systems, roads and bridges. Last year, the EU disbursed financial aid amounting to €18 billion. dpa

    • Ukraine-Krieg

    Italian socialists want fresh start for EU joint investments

    The leader of the Italian Socialists, Elly Schlein, presented her party’s campaign for the European elections in Rome on Monday. This stands for a “more social, fairer and more ecological Europe,” said the leader of the Partito Democratico (PD). The European Union is facing “epochal challenges” that no member state can overcome alone. The 38-year-old was a Member of the European Parliament from 2014 to 2019.

    For a more social Europe, the continuity of joint investments is necessary. “Let’s not forget that the EU was able to respond to the coronavirus pandemic by implementing the largest investment plan in the history of Europe,” said Schlein, referring to Next Generation EU. The recovery plan, with a volume of around €800 billion, does not simply fall on the countries, especially Italy, but contains clearly defined goals and targets for managing these resources. It was only in the face of the pandemic that some taboos about the need for joint investment were dropped, “so we are not starting from scratch.”

    EU should lead the way in ecological conversion

    Specifically, the PD wants to campaign for an EU-wide minimum wage, which should not be under €9 per hour. This discussion has also been taking place at the national level for years. Italy does not yet have a law on this. A more social Europe must also take the lead in the ecological transition. Unlike the politicians of the right-wing Italian governing coalition of Fratelli d’Italia, Lega and Forza Italia, Schlein repeatedly speaks of a “climate emergency.”

    The EU lacks the political will to launch a common defense policy. It could only succeed if the member states were prepared to pool their expertise in foreign, security and defense policy. “It is not enough to create an empty box within the Commission, a kind of commissioner with no portfolio and no real competence in dealing with the defense ministers of the 27 countries.” In terms of migration policy, the PD is calling for a “European Mare Nostrum,” i.e. rescue missions in the Mediterranean organized and managed by Europe. There is also a need for legal access routes to Europe.

    List is drawn up late in Italy

    As part of the Party of European Socialists, the Partito Democratico wants to act as a counterweight to the right and the nationalists. Especially now, when the European People’s Party is ready to flirt with the nationalists (editor’s note: the ECR group).

    In Italy, the list of candidates for the European elections does not have to be finalized until the end of this month. It has been said for months that both Prime Minister Giorgia Meloni for the right-wing nationalist Fratelli d’Italia and Schlein for the PD could be at the top of their parties’ lists. This is combined with the announcement that they will not move to the European Parliament after the election, but will give up their seats to the runners-up. According to Schlein in Rome, this has not yet been decided. With regard to the rumor that Mario Draghi will become Commission President, which is particularly popular in Italy, Schlein said that, for her, there is only one candidate for this office: the Social Democrat Nicolas Schmit. asf

    • European election 2024
    • Italy
    • NextGenerationEU

    European election campaign: Greens campaign with Reintke, Baerbock and Habeck

    From April 20, the German Greens will begin their election campaign for the European elections on June 9. This was announced by the party leaders on Monday at the presentation of their campaign. In the first phase, top candidate Terry Reintke will adorn the posters in Germany. From May 9, these will be supplemented by the faces of Economics Minister Robert Habeck and Foreign Minister Annalena Baerbock. From May 23, the party’s final messages will be at the forefront of the nationwide campaign, including “Only democracy creates freedom.”

    The election campaign will focus on security and economic policy aspects as well as the continuation of the Green Deal. Party leader Ricarda Lang announced that she wanted to achieve the goal of a minimum wage of €14 in Germany via the EU Minimum Wage Directive. Co-leader Omid Nouripour said they wanted to create an agency for a European intelligence service “that protects our democracies better and earlier and fends off the intrusions we see every day.”

    Differentiation from CDU/CSU, despite similar slogans

    Meanwhile, top candidate Reintke is practicing maximum demarcation from the CDU/CSU. She criticized the CDU/CSU for trying to “apply the axe to the Green Deal.” How to proceed with the Green Deal was a choice of direction. Maintaining Europe as a business location must be successful or it will be left behind in the ramp-up of green technologies, said Reintke.

    The German Greens’ election slogan for the European elections is “Doing what counts.” The election program is entitled “What protects us.” The similarity to the subtitle of the CDU/CSU program “For a Europe that protects and benefits us” is hard to miss. However, the Greens’ title had already been decided in November at the party conference in Karlsruhe. The CDU/CSU only announced their program in March. luk

    • Europawahlen 2024
    • European election 2024
    • Robert Habeck
    • The Greens

    DNA: Stakeholders discuss the future of connectivity in Berlin

    The White Paper on the Digital Networks Act, which EU telecoms ministers discussed on Friday, will also be discussed today (Tuesday) and on Wednesday at the Federal Ministry for Digital Affairs. Minister Volker Wissing has invited stakeholders to gather their opinions on the future regulation of the telecommunications market in Europe. The consultation launched by the Commission on the White Paper will run until June 30, 2024.

    High-performance, reliable and resilient digital infrastructures are the nervous system of digitalization and the basic prerequisite for economic growth and social prosperity, said Volker Wissing ahead of the event. With the White Paper, the Commission had presented an initial, important basis for discussion, although Wissing had already voiced criticism.

    Wissing said that the German government wanted to engage in a constructive dialog with all stakeholders before it could submit its statement on the White Paper. “Our goal is to ensure optimal conditions for a strong and sustainable telecommunications sector in the EU.”

    White Paper on the Digital Networks Act: spectrum policy as a hotly debated topic

    The agenda includes a keynote speech by Renate Nikolay, Deputy Director General of DG Connect, who will be connected via video call. Other topics include:

    • Orientation of the regulatory framework (objectives, scope of application, universal service, sustainability)
    • Copper-to-fiber migration and market regulation
    • Frequency policy
    • Authorizations and rights of the core networks
    • Quantum and post-quantum technologies
    • Security and resilience of submarine cable infrastructures

    One of the hotly debated topics will certainly be spectrum policy. While the Commission would like to centralize this, which some companies welcome, the countries do not want to give it out of their hands. Finally, the participants will also discuss the idea of a 3C network (Connected Collaborative Computing). This is about a future ecosystem that spans the entire computing continuum – from semiconductors and wireless technology to connectivity infrastructures, data management and applications. vis

    • Volker Wissing

    Dessert

    ‘See Brussels and die’: the bitter balance sheet of a satirist in the EU Parliament

    In his autobiography, Nico Semsrott works through the absurdities of working in Brussels. Some of his colleagues might not like that.

    Almost 900,000 people voted for the satirical party “Die Partei” in the 2019 European elections. This brought satirists Martin Sonneborn and Nico Semsrott into the European Parliament. Today, the two no longer speak to each other due to differences of opinion.

    Nico Semsrott, the man in the hoodie, joined the Greens, who probably appreciated the newcomer because of his reach. Semsrott made it clear from the outset that he did not intend to work on content. However, Robert Habeck personally gave his approval for Semsrott to join the group in the European Parliament.

    Semsrott has now recorded his experiences of working between Brussels and Strasbourg in his biography “See Brussels and Die.” The fact that the result is bitter can be guessed from the subheading: “How I lost my faith in (almost) everything in the European Parliament.” The depressed tone that his fans appreciate runs through the book.

    Some of his fellow MEPs are likely to see his descriptions as a fouling of one’s own nest by someone who has not written a single report and has not promoted substantive debates. Nico Semsrott sees himself as a court jester: someone who says what everyone sees but no one wants to admit. In his videos over the past five years, he has repeatedly pointed out absurdities.

    Generous expense regulations

    He found plenty of material in the European Parliament. On the one hand, there was a bureaucracy led by an Italian who once worked for a now convicted mafioso. At the same time, some MEPs earned money with side jobs and did not take independence very seriously. “My experiences in the European Parliament didn’t disappoint me, they shook me. Even traumatized me in parts,” writes Semsrott. His depression worsened during his time in Brussels.

    He also uses much of the book in his current tour program in Germany. For example, the story of the far-right Greek MEP Ioannis Lagos, who was sentenced to 13 years in prison in 2020 and remained an MEP. His staff work in Brussels and Strasbourg, while Lagos’ former bodyguard works from a prison cell. No satirist could make this up.

    Semsrott is also surprised by the European Parliament’s expense regulations. Like all MEPs, he receives a first-class rail pass for Germany and Belgium, but can also claim train tickets for the Brussels-Berlin route without having to submit receipts. He received €539 back, even though he had no expenses. On a second occasion, it was only €529; another of the 8,000 parliamentary staff had applied different standards. Semsrott donates the money.

    In the gray area between lobbying and corruption

    The Kaili affair, which caused turmoil in Brussels at the end of 2022, reassures the satirist. The corruption that he has perceived around him is real: “That means I’m not crazy.” Elsewhere, he lists MEPs who continue to work as lawyers: Rainer Wieland, Axel Voss, Andreas Schwab, Angelika Niebler and Nicola Beer. Voss receives an additional €500 to €1000 a month from Deutsche Telekom. “I’m not saying that Rainer Wieland and all the others are corrupt,” writes Semsrott. “I’m just saying: if I were corrupt, this is exactly what I would do.” Wieland says he earns nothing extra. However, his law firm offers appointments online.

    Nico Semsrott was also disconcerted by his encounters with lobbyists, for example with an unnamed chairman of the CDU Economic Council. The man addressed him as “Mr. Sonnenrott” after an event, told him that he had once been an SPD member, too, and about his well-stocked wine cellar at home. Semsrott did not accept the invitation.

    How appropriate is criticism from someone who openly admits that the monthly diet of €9,975.42 prevented him from resigning before the end of his parliamentary term? Semsrott is unlikely to make any friends in Parliament with this book.

    Because transparency is important to Semsrott, he attaches great importance to clarifying that he did not write the book himself. Others did it for him, based on notes. He did not even read it, he flirts. After five years in the European Parliament, he remains a satirist. Silke Wettach

    • Europäisches Parlament

    Europe.table editorial team

    EUROPE.TABLE EDITORIAL OFFICE

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