As expected, French President Emmanuel Macron and his strongest challenger Marine Le Pen entered the presidential election runoff yesterday. Two weeks from Sunday, on April 24, the nearly 49 million eligible voters will have to decide between far-right Le Pen and pro-European Macron. Read more about the election results in the News.
Launched in 2020 under Germany’s EU Council presidency, the support program for the chip industry was supposed to make an “important contribution to growth, employment and the competitiveness of European industry and the economy”, in the words of then Economic Affairs Minister Peter Altmaier (CDU). Little has happened since then. Till Hoppe analyzes the problems with the Important Project of Common European Interest (IPCEI) and the fears that German companies now have.
The EU Commission had actually planned to present its two drafts on setting aside ten percent of European agricultural land and halving the use of plant protection products at the end of March – but had postponed this. Timo Landenberger explains the reasons for the delay and why the new date has caused irritation.
The EU states’ joint platform on energy procurement will set up an advisory working group with experts from the business community. Read about the tasks of the platform in the News.
Angelika Niebler – a great supporter of SMEs and experienced MEP – is in the spotlight of today’s Profile. Niebler is Chairwoman of the CSU European Group and Deputy Chairwoman of the CDU/CSU Group in the European Parliament. In 2019, she launched the directive on preventive restructuring for companies in difficulties.
It was one of the flagship projects of the German EU Council Presidency in the fall of 2020: The new funding program for the chip industry could make an “important contribution to growth, employment and the competitiveness of European industry and the economy,” said then Economic Affairs Minister Peter Altmaier (CDU).
A year and a half has passed since then, but the Important Project of Common European Interest (IPCEI) on microelectronics and communications technologies still exists only on paper. Resentment is growing among the 32 participating companies in Germany. The project suffers from the fact that it is still unclear how much public money the German government will make available for it.
The companies, including Infineon, Bosch, Globalfoundries, and quite a few SMEs, had hoped for clarity when German Finance Minister Christian Lindner presented his draft budget for 2022 and the key figures for the following years in mid-March – in vain. At a meeting of representatives of the 32 companies and the Federal Ministry for Economic Affairs and Climate Action just over a week ago, it became clear, according to participants, that the BMWK itself does not know.
In the past two years, there has been a lot of talk about how important Europe’s technological sovereignty is in the semiconductor industry, says Wolfgang Weber, CEO of the German Electro and Digital Industry Association (ZVEI). In light of the Ukraine war, this is even more true today than before. “It would be all the more important for the German government to show its colors now,” Weber said. “It’s not enough for the German government to recognize the importance of the IPCEI, it must also back it up with the necessary resources.”
However, Lindner’s draft budget leaves questions unanswered. The BMWK’s budget includes €2.03 billion for IPCEI, spread over the years until 2026, but according to industry circles, that would only be enough to subsidize the planned projects with less than 20 percent of the eligible costs. The usual subsidy rate for IPCEI is 20 to 40 percent.
According to participants, the BMWK, therefore, does not see itself in a position to agree to the companies starting measures ahead of schedule. The companies could already start implementing the planned projects under the IPCEI at their own risk, but they need the ministry’s approval to do so. So they have no choice but to remain patient. Possibly until the end of June, when the federal cabinet will approve the key figures for the 2023 budget.
It is still unclear what funds will be available from a second pot for the funding program. In addition to the BMWK budget, Lindner’s financial planning also includes an item in the so-called Section 60 (“General Financial Administration”), which is not assigned to any departmental area. There, €2.72 billion for 2022 are earmarked for “strengthening measures to promote projects in the field of microelectronics”.
However, it is unclear whether these funds are actually reserved for the 32 companies in the IPCEI. “Coordination processes are underway in the German government,” says the Federal Ministry of Finance. The concern among German chip companies is that the funds are to benefit two international groups that are not involved in the European project: Intel and TSMC.
TSMC, the world’s largest contract manufacturer from Taiwan, is looking into building a semiconductor factory in Germany, primarily to supply customers in the automotive industry. However, talks are likely to continue for several months, according to industry sources.
Intel is already one step further: Pat Gelsinger, the head of the US company, announced on March 15 that he would invest €17 billion in the construction of two semiconductor plants in Magdeburg. The prerequisite for this was the promise of massive state aid – Gelsinger had made this clear at an early stage. Negotiations with Intel were conducted directly by the Federal Chancellery, according to reports in Berlin, namely by the economic policy advisor to Olaf Scholz (SPD), Jörg Kukies.
What has been agreed is not clear, even in other ministries. There is talk of funding of around €7 billion that Intel can expect for the project. That would correspond to a high subsidy rate of 40 percent, which EU Competition Commissioner Margrethe Vestager would certainly scrutinize critically during the due state aid review.
Neither the BMF nor the BMWK wanted to comment on this specifically. “We are not yet able to provide details or exact sums,” a BMWK spokeswoman said in response to a query. The European Commission will examine the project from the point of view of state aid law and decide on the exact amount of possible aid according to strict criteria. It is not intended to anticipate this process.
The lack of transparency is also calling members of the traffic light coalition to action. “We will now take a look at the issues,” says SPD economic politician Falko Mohrs. It needs to be clarified how much money is earmarked for the various projects and how cooperation with the industry is planned.
There is cautious criticism from the companies involved in the IPCEI. “We continue to hope for a quick approval of the projects,” said a spokesman for the Munich-based chip company Infineon. However, the necessary financing for the IPCEI has not yet been conclusively secured. The German government has given the topic of semiconductors high priority, but other crises are currently claiming their full focus.
Infineon intends to invest in several projects at its sites in Regensburg, Warstein, and Dresden. According to the spokesman, this involves issues such as how to shape the transition to renewable energies with new semiconductor materials and innovative silicon technologies. “In this regard, it would help the companies if they could already start the projects at their own risk. For that, there needs to be a corresponding approval from the federal government.”
The European Union and Switzerland have responded to Russia’s invasion of Ukraine with various sanctions. Here you can find the currently imposed EU sanctions (as far as published in the Official Journal of the EU). An overview of all sanctions imposed by the EU and Switzerland since the beginning of the Ukraine war can be found here.
Legislation L110
Council Regulation (EU) 2022/580 of 8 April 2022 amending Regulation (EU) No. 269/2014 concerning restrictive measures in respect of actions undermining or threatening the territorial integrity, sovereignty and independence of Ukraine
Council Implementing Regulation (EU) 2022/581 of 8 April 2022 implementing Regulation (EU) No 269/2014
Council Decision (CFSP) 2022/582 of 8 April 2022 amending Decision 2014/145/CFSP concerning restrictive measures in respect of actions that undermine or threaten the territorial integrity, sovereignty and independence of Ukraine
Details
Legislative provision L111
Council Regulation (EU) 2022/576 of 8 April 2022 amending Regulation (EU) No 833/2014 concerning restrictive measures in view of Russia’s actions destabilizing the situation in Ukraine
Council Regulation (EU) 2022/577 of 8 April 2022 amending Council Regulation (EC) No 765/2006 concerning restrictive measures in view of the situation in Belarus and the involvement of Belarus in the Russian aggression against Ukraine
Council Decision (CFSP) 2022/578 of 8 April 2022 amending Decision 2014/512/CFSP concerning restrictive measures in view of Russia’s actions destabilizing the situation in Ukraine
Council Decision (CFSP) 2022/579 of 8 April 2022 amending Council Decision 2012/642/CFSP concerning restrictive measures in view of the situation in Belarus and the involvement of Belarus in the Russian aggression against Ukraine
Details
It should have been an important step toward implementing the agricultural policy goals of the Green Deal: Proposals to set aside 10 percent of European farmland and halve the use of pesticides by 2030 are key elements of the EU’s biodiversity and farm-to-fork strategies. But the Commission has postponed the presentation of its drafts planned for the end of March.
The war in Ukraine had left no room for further appropriate political discussions on nature conservation legislation, the Brussels authority explained the move. At the same time, the postponement was probably intended to address the debate over food security in Europe. In a Commission communication published instead, it is said that the food supply in the EU is not at risk. Nevertheless, to increase production, the cultivation of food and feed, including the use of pesticides, is also to be permitted on fallow land, at least in the medium term. The two planned nature conservation laws are diametrically opposed to this.
The new date for the presentation of the Commission’s drafts is June 22. The short time frame is causing irritation. After all, the European Parliament, under the leadership of the EPP Group, has passed a resolution on food security, in which it called for a comprehensive impact assessment of the planned regulations with regard to their interaction. Reducing the use of pesticides by 50 percent would lead to a significant drop in yield, which in turn would require more land, Norbert Lins (CDU), chairman of the Agriculture Committee in the EU Parliament, tells Europe.Table. At the same time, the EU Commission wants to increase the set-aside of agricultural land from the current 2.5 percent to ten percent. This does not fit together and could endanger food security, especially in the current situation, says the MEP.
However, the required impact assessment would take at least half a year, especially since the different climatic and geological conditions, as well as agricultural standards in the various member states, would have to be taken into account. If the Commission wants to comply with the Parliament’s resolution, the new deadline of June 22 is therefore unlikely to be met.
Last week, a representative of the Commission from the Directorate General for Food Safety affirmed that the conservation goals would be adhered to. The planned legislation will not be changed and will be presented before the summer break. However, Martin Häusling, agricultural policy spokesman for the Greens in the EU Parliament, does not want to rely on this. The MEP speaks of a “broad attack on the farm-to-fork strategy” and expects a lot of headwinds in the Parliament and especially in the Council. Germany is practically isolated in this respect.
Indeed, at the latest Council meeting on Thursday, German Agriculture Minister Cem Özdemir appealed to his colleagues not to undermine the level of ambition on biodiversity and climate protection. “Let’s avoid simply skipping complex policy discussions now with the argument of war,” Özdemir said.
But even before the outbreak of the war, most member states had shown little support for the planned pesticide regulation, Häusling criticizes. For example, there is already a lack of data on the use of pesticides in the EU countries. Existing regulations, such as those on integrated and thus sustainable farming, are rarely monitored, and there is hardly any advice for farmers.
This is one of the reasons why the previous directive on the use of pesticides is now to become a regulation. This is according to a leaked version of the Commission draft, available to Europe.Table. Regulations must be implemented directly by the EU states and allow less leeway. The targeted reduction of 50 percent by 2030 is quite ambitious, says Häusling.
The German Farmers’ Association welcomes the Commission’s postponement. The draft must be fundamentally revised again, according to Bernhard Krüsken Secretary General of the German Farmers Association DBV. Bayer AG, on the other hand, does not think much of the delayed implementation. The pesticide manufacturer supports the goals of the farm-to-fork strategy. It is not a question of productivity at the expense of sustainability. The two must be thought of together. “We are therefore in favor of using innovative processes and technologies, for example in the field of digital farming or in plant breeding,” said a spokesman for the chemical company, which serves a growing market with the development of precisely these technologies.
The German Agricultural Industry Association is also calling for new, digital technologies to be brought into practice quickly as part of the pesticide regulation to be able to reduce the use of plant protection products. However, the diversity of agricultural practices in Europe must be taken into account.
For Martine Dermine of the Pesticide Action Network (PAN Europe), the use of synthetic pesticides should be stopped completely as long as the respective effects on the environment and health have not been fully clarified. The best example is glyphosate: The controversial weed killer was classified as “probably carcinogenic” by the World Health Organization in 2015. The responsible EU authorities came to a different conclusion. Currently, the use of glyphosate is approved in the EU until the end of 2022. An extension is considered likely.
Dermine asserts that food security is possible without the use of pesticides. Although less yield must be expected, the problem lies in the wasteful use of food and the types of diet. For example, according to the Commission, some 88 million tons, or about 20 percent of the food produced in the EU, is wasted each year. About two-thirds of the grain grown is used as animal feed.
However, complete freedom from pesticides is becoming increasingly difficult. That’s because, according to a study, pesticides can spread far and wide through the air. Johanna Bär of Bündnis für enkeltaugliche Landwirtschaft explains, “We have found residues in tree bark, in ventilation systems of buildings, in nature reserves, and also in organic fields.” About 30 percent of these have now been classified as harmful to the environment or health and are no longer permitted.
This is a major problem for the organic sector because the use of synthetic pesticides is prohibited in organic food. However, due to the transfer of pesticides, organic foods are increasingly no longer allowed to be declared as such. With its planned nature conservation legislation, the Commission also wants to promote organic farming. However, it could still take several years before this is finally adopted.
In the presidential race in France, voters will decide in two weeks between incumbent Emmanuel Macron and right-wing candidate Marine Le Pen. As expected, both qualified for the runoff in the first round yesterday, according to initial forecasts by four polling institutes. Macron, who has been in office for five years, was more clearly ahead of Le Pen than in the last polls before the election.
In initial reactions, almost all the defeated candidates spoke out in favor of voting for Macron now, which increases his chances. No French president has succeeded in securing a second term in office for two decades.
According to various projections, the liberal Macron received 28.1 to 29.5 percent of the vote on election night. Le Pen came second with 23.3 to 24.4 percent. The left-wing candidate Jean-Luc Mélenchon received around 20 percent. The far-right candidate Éric Zemmour and the conservative Valérie Pécresse had no chance with around seven and five percent respectively. Pre-election polls had predicted about 26 percent for Macron, just ahead of Le Pen with 24 percent. Although the first partial results showed Le Pen ahead of Macron, they still underrepresented the large cities, where Le Pen has a harder time.
Macron campaigned after Sunday’s election to support him in the runoff. He called on all citizens to stop the extreme right. Zemmour called on his supporters to vote for Le Pen now. Signals to support Macron, on the other hand, came from the Greens, the Left, the Socialists, and the Conservatives. Pécresse told her supporters that Le Pen disqualified herself – against the backdrop of the Russian attack on Ukraine – because of her closeness to Russian President Vladimir Putin. “Her election would mean France becomes irrelevant on the European and international stage.” Le Pen said she wanted to overcome divisions within the country as president.
The reactions from the European Parliament on Sunday evening were rather restrained. Rasmus Andresen (Greens/EFA) tweeted that he feared that the “many tweets of relief come clearly too early.” Macron’s arrogance and neoliberal attitude make it easier for Le Pen than last time. Iratxe Garcia Perez, leader of the S&D group, called on Twitter for “all progressive people” to vote against Le Pen, saying she was endangering democracy and social peace.
After the runoff election on April 24, the new term of office will begin no later than May 13. A new parliament will then be elected over two weekends in mid-June. rtr/klm
The joint platform of EU states on energy procurement will set up an advisory working group with experts from the business community. This was announced by the EU Commission on Friday. The previous evening, the platform had met with representatives of the 27 member states for its first meeting. The goal is to coordinate the procurement of natural gas and liquefied natural gas (LNG) to become less dependent on Russian gas supplies. In the long term, the work is also to be extended to hydrogen and renewable energies.
The members also want to ensure that the best possible use is made of existing gas infrastructure, meaning primarily regasification terminals for LNG. In addition, the need for new hydrogen infrastructure to be built is to be identified. ber
The European Union may set more ambitious targets for its transition to renewable energy as it seeks alternatives to imports of oil and gas from Russia, EU climate policy chief Frans Timmermans said on Sunday.
The EU’s 27 member states have agreed to collectively reduce their net greenhouse gas emissions by 55 percent from 1990 levels by 2030, a step towards “net zero” emissions by 2050.
Following Russia’s invasion of Ukraine in February, the European Commission has also proposed that Europe cut imports of Russian gas by two-thirds this year, and is drafting plans to phase them out by 2027. The Commission is due to propose a “Repower EU” plan in May for how the bloc can quit Russian fossil fuels.
“What we will do in the next couple of weeks is work towards what I call the Repower EU initiative, and as part of that we want to accelerate the energy transition. So in that context we might revisit our targets,” Timmermans told reporters during a visit to Cairo. Such a revision would mean a “higher percentage of renewable energy for 2030,” Timmermans said, declining to giving figures for possible new targets.
Under existing plans, the EU would raise the share of renewable energy to 40 percent of final consumption by 2030. Egypt, which will host the COP27 climate conference in November and which re-exports Israeli gas from liquified natural gas (LNG) terminals on its Mediterranean coast, could help the EU diversify its gas imports, Timmermans said.
“If we can get other LNG in the region – and we will see which amounts will be available from Israel – that might be a good approach,” he said. “The core of what I’m offering is a long-term strategic relationship that starts with LNG then quickly moves also into renewables, particularly hydrogen,” he added. rtr
European Union countries sharing borders with Russia and Belarus have barred some cargo vehicles registered in the two countries from entering since Friday due to sanctions, the Russian customs service said on Saturday. The EU on Friday formally adopted new sanctions against Russia, including bans on the import of coal, wood, chemicals and other products, while also preventing many Russian vessels and trucks from accessing the bloc.
Vehicles used as international transport that have Russian and Belarusian number plates will not be able to move goods on EU territory, the Russian customs service said. “According to available information, the restrictions do not yet apply to road freight transport delivering pharmaceutical, medical, food and agricultural products, including wheat, as well as the delivery of energy, non-ferrous metals and fertilizers,” the customs service said. Transit from Russia to Kaliningrad – Russia’s exclave on the Baltic Sea sandwiched between Poland and Lithuania – was still open for vehicles registered in Russia. rtr
According to the German financial regulator BaFin, the Russian bank VTB can no longer exercise any control over its European subsidiary. This is the consequence of the EU’s fifth package of sanctions against Russia, which was just imposed in the wake of Russia’s attack on Ukraine. The Bonn-based BaFin said on Sunday it had banned the St. Petersburg-based parent company from exercising its voting rights at subsidiary VTB Bank Europe on Saturday. The Russian financial institution is part of the new sanctions.
The subsidiary is no longer allowed to take instructions from the parent company, BaFin said. Weeks ago, a ban had already been issued on making payments or shifting assets in favor of VTB Group. The subsidiary is thus now completely shielded. “Depositors can continue to freely dispose of their money, and debtors can service their loans with interest and repayments. Other creditors of the bank – as long as they are not sanctioned themselves – may also be served accordingly and receive payments from the bank.”
Other banks, service providers, and employees may continue to work for VTB Bank Europe. Its asset and liquidity position remains orderly, BaFin said. However, the business is to be scaled back. rtr
Italy’s Prime Minister Mario Draghi will visit Algeria on Monday to sign an agreement to ramp up gas imports with Algerian President Abdelmadjid Tebboune, two sources said.
Draghi will travel with a delegation that is expected to include the head of Italian energy group Eni, Foreign Minister Luigi Di Maio, and Ecological Transition Minister Roberto Cingolani, a government source said. Algeria is expected to supply Italy with an additional 4 billion cubic meters of natural gas annually, a source told Reuters on Sunday.
Algeria is Italy’s second-biggest gas supplier and the Transmed pipeline has been pumping Algerian gas to Italian shores since 1983. It has a daily capacity of more than 110 million cubic meters but currently transports less than 60 mcm.
Rising domestic consumption, under-investment, and political instability, including the closure of a pipeline to Spain over a dispute with Morocco, have capped Algerian exports. But last year Italian imports rose 76 percent to 21.2 billion cubic meters (bcm) – 29 percent of overall flows. Rome has said it is looking to secure 9 bcm more from the North African country. rtr
Elon Musk, Twitter Inc’s biggest shareholder, on Saturday suggested a raft of changes to the social media giant’s Twitter Blue premium subscription service, including slashing its price, banning advertising, and giving an option to pay in the cryptocurrency Dogecoin.
Musk, who disclosed a 9.2 percent stake in Twitter just days ago, was offered a seat on its board of directors, a move which made some Twitter employees panic over the future of its ability to moderate content.
Twitter Blue, launched in June 2021, is Twitter’s first subscription service and offers “exclusive access to premium features” on a monthly subscription basis, Twitter says. It is available in the United States, Canada, Australia, and New Zealand.
In a Twitter post, the head of electric vehicle maker Tesla Inc suggested that users who sign up for Twitter Blue should pay significantly less than the current $2.99 a month, and should get an authentication checkmark as well as an option to pay in local currency.
“Price should probably be ~$2/month, but paid 12 months up front & account doesn’t get checkmark for 60 days (watch for credit card chargebacks) & suspended with no refund if used for scam/spam,” Musk said in a tweet.
“And no ads,” Musk suggested. “The power of corporations to dictate policy is greatly enhanced if Twitter depends on advertising money to survive.” Musk also proposed an option to pay with Dogecoin and asked Twitter users for their views. Twitter declined to comment on Musk’s suggestions. rtr
“If we want to hold our own in the world, we can only do so as a strong, European community,” according to Angelika Niebler, Chair of the CSU European Group and Deputy Chair of the CDU/CSU Group in the European Parliament. Niebler is particularly committed to the interests of the business locations of Upper Bavaria and Munich. In 2019, she delivered support for companies in difficulties but with good prospects: “With the directive on preventive restructuring, we have provided a set of instruments that will make it easier for companies to reorganize and thus avoid insolvency.”
Niebler has been a member of the European Parliament since 1999. Before that, Niebler was active in local politics: Infected by her husband’s enthusiasm for politics, she also joined the Junge Union, the Women’s Union, and the CSU in 1994 and eventually ran successfully for the district council of the Ebersberg district: “With love into municipal office,” Niebler says, laughing. Her interest in Europe arose during her student days: “During my law studies, I spent two semesters at the University of Geneva. There I learned how important it is to think outside the box. After graduating, I then took part in the ‘European Young Lawyers Course’ at the University of Edinburgh.”
Since she was active in local politics and at the same time familiar with European issues, she was asked by party colleagues whether she could imagine running for the European Parliament: “When an opportunity like this arises, you have to grab it!”
Niebler is convinced that Europe needs a strong industrial base to maintain its prosperity. Above all, she wants to work to ensure that SMEs have fair competitive conditions: “Many information and documentation obligations, high taxation, the high energy prices and the lack of skilled workers are a burden on our SMEs. One example is the EU VAT reform, according to which the different VAT rates must be shown for online trade starting at €10,000. This entails an enormous administrative burden. We must also not overburden our SMEs with the new version of sustainability reporting.”
The fact that something doesn’t seem easy at first glance hasn’t bothered the politician in the past: The topic of equal opportunities is particularly important to Niebler, who has managed to push through the women’s quota of 40 percent in the CSU’s state and district executive committees: “A lot has happened at the European level, too, but women still have a harder time gaining a foothold. Equality of opportunity is not a foregone conclusion. That’s why I will continue to stand up for women.” A Europe-wide women’s quota on supervisory boards of large companies of 40 percent is also currently being discussed in the European Parliament. Alina Jensen
As expected, French President Emmanuel Macron and his strongest challenger Marine Le Pen entered the presidential election runoff yesterday. Two weeks from Sunday, on April 24, the nearly 49 million eligible voters will have to decide between far-right Le Pen and pro-European Macron. Read more about the election results in the News.
Launched in 2020 under Germany’s EU Council presidency, the support program for the chip industry was supposed to make an “important contribution to growth, employment and the competitiveness of European industry and the economy”, in the words of then Economic Affairs Minister Peter Altmaier (CDU). Little has happened since then. Till Hoppe analyzes the problems with the Important Project of Common European Interest (IPCEI) and the fears that German companies now have.
The EU Commission had actually planned to present its two drafts on setting aside ten percent of European agricultural land and halving the use of plant protection products at the end of March – but had postponed this. Timo Landenberger explains the reasons for the delay and why the new date has caused irritation.
The EU states’ joint platform on energy procurement will set up an advisory working group with experts from the business community. Read about the tasks of the platform in the News.
Angelika Niebler – a great supporter of SMEs and experienced MEP – is in the spotlight of today’s Profile. Niebler is Chairwoman of the CSU European Group and Deputy Chairwoman of the CDU/CSU Group in the European Parliament. In 2019, she launched the directive on preventive restructuring for companies in difficulties.
It was one of the flagship projects of the German EU Council Presidency in the fall of 2020: The new funding program for the chip industry could make an “important contribution to growth, employment and the competitiveness of European industry and the economy,” said then Economic Affairs Minister Peter Altmaier (CDU).
A year and a half has passed since then, but the Important Project of Common European Interest (IPCEI) on microelectronics and communications technologies still exists only on paper. Resentment is growing among the 32 participating companies in Germany. The project suffers from the fact that it is still unclear how much public money the German government will make available for it.
The companies, including Infineon, Bosch, Globalfoundries, and quite a few SMEs, had hoped for clarity when German Finance Minister Christian Lindner presented his draft budget for 2022 and the key figures for the following years in mid-March – in vain. At a meeting of representatives of the 32 companies and the Federal Ministry for Economic Affairs and Climate Action just over a week ago, it became clear, according to participants, that the BMWK itself does not know.
In the past two years, there has been a lot of talk about how important Europe’s technological sovereignty is in the semiconductor industry, says Wolfgang Weber, CEO of the German Electro and Digital Industry Association (ZVEI). In light of the Ukraine war, this is even more true today than before. “It would be all the more important for the German government to show its colors now,” Weber said. “It’s not enough for the German government to recognize the importance of the IPCEI, it must also back it up with the necessary resources.”
However, Lindner’s draft budget leaves questions unanswered. The BMWK’s budget includes €2.03 billion for IPCEI, spread over the years until 2026, but according to industry circles, that would only be enough to subsidize the planned projects with less than 20 percent of the eligible costs. The usual subsidy rate for IPCEI is 20 to 40 percent.
According to participants, the BMWK, therefore, does not see itself in a position to agree to the companies starting measures ahead of schedule. The companies could already start implementing the planned projects under the IPCEI at their own risk, but they need the ministry’s approval to do so. So they have no choice but to remain patient. Possibly until the end of June, when the federal cabinet will approve the key figures for the 2023 budget.
It is still unclear what funds will be available from a second pot for the funding program. In addition to the BMWK budget, Lindner’s financial planning also includes an item in the so-called Section 60 (“General Financial Administration”), which is not assigned to any departmental area. There, €2.72 billion for 2022 are earmarked for “strengthening measures to promote projects in the field of microelectronics”.
However, it is unclear whether these funds are actually reserved for the 32 companies in the IPCEI. “Coordination processes are underway in the German government,” says the Federal Ministry of Finance. The concern among German chip companies is that the funds are to benefit two international groups that are not involved in the European project: Intel and TSMC.
TSMC, the world’s largest contract manufacturer from Taiwan, is looking into building a semiconductor factory in Germany, primarily to supply customers in the automotive industry. However, talks are likely to continue for several months, according to industry sources.
Intel is already one step further: Pat Gelsinger, the head of the US company, announced on March 15 that he would invest €17 billion in the construction of two semiconductor plants in Magdeburg. The prerequisite for this was the promise of massive state aid – Gelsinger had made this clear at an early stage. Negotiations with Intel were conducted directly by the Federal Chancellery, according to reports in Berlin, namely by the economic policy advisor to Olaf Scholz (SPD), Jörg Kukies.
What has been agreed is not clear, even in other ministries. There is talk of funding of around €7 billion that Intel can expect for the project. That would correspond to a high subsidy rate of 40 percent, which EU Competition Commissioner Margrethe Vestager would certainly scrutinize critically during the due state aid review.
Neither the BMF nor the BMWK wanted to comment on this specifically. “We are not yet able to provide details or exact sums,” a BMWK spokeswoman said in response to a query. The European Commission will examine the project from the point of view of state aid law and decide on the exact amount of possible aid according to strict criteria. It is not intended to anticipate this process.
The lack of transparency is also calling members of the traffic light coalition to action. “We will now take a look at the issues,” says SPD economic politician Falko Mohrs. It needs to be clarified how much money is earmarked for the various projects and how cooperation with the industry is planned.
There is cautious criticism from the companies involved in the IPCEI. “We continue to hope for a quick approval of the projects,” said a spokesman for the Munich-based chip company Infineon. However, the necessary financing for the IPCEI has not yet been conclusively secured. The German government has given the topic of semiconductors high priority, but other crises are currently claiming their full focus.
Infineon intends to invest in several projects at its sites in Regensburg, Warstein, and Dresden. According to the spokesman, this involves issues such as how to shape the transition to renewable energies with new semiconductor materials and innovative silicon technologies. “In this regard, it would help the companies if they could already start the projects at their own risk. For that, there needs to be a corresponding approval from the federal government.”
The European Union and Switzerland have responded to Russia’s invasion of Ukraine with various sanctions. Here you can find the currently imposed EU sanctions (as far as published in the Official Journal of the EU). An overview of all sanctions imposed by the EU and Switzerland since the beginning of the Ukraine war can be found here.
Legislation L110
Council Regulation (EU) 2022/580 of 8 April 2022 amending Regulation (EU) No. 269/2014 concerning restrictive measures in respect of actions undermining or threatening the territorial integrity, sovereignty and independence of Ukraine
Council Implementing Regulation (EU) 2022/581 of 8 April 2022 implementing Regulation (EU) No 269/2014
Council Decision (CFSP) 2022/582 of 8 April 2022 amending Decision 2014/145/CFSP concerning restrictive measures in respect of actions that undermine or threaten the territorial integrity, sovereignty and independence of Ukraine
Details
Legislative provision L111
Council Regulation (EU) 2022/576 of 8 April 2022 amending Regulation (EU) No 833/2014 concerning restrictive measures in view of Russia’s actions destabilizing the situation in Ukraine
Council Regulation (EU) 2022/577 of 8 April 2022 amending Council Regulation (EC) No 765/2006 concerning restrictive measures in view of the situation in Belarus and the involvement of Belarus in the Russian aggression against Ukraine
Council Decision (CFSP) 2022/578 of 8 April 2022 amending Decision 2014/512/CFSP concerning restrictive measures in view of Russia’s actions destabilizing the situation in Ukraine
Council Decision (CFSP) 2022/579 of 8 April 2022 amending Council Decision 2012/642/CFSP concerning restrictive measures in view of the situation in Belarus and the involvement of Belarus in the Russian aggression against Ukraine
Details
It should have been an important step toward implementing the agricultural policy goals of the Green Deal: Proposals to set aside 10 percent of European farmland and halve the use of pesticides by 2030 are key elements of the EU’s biodiversity and farm-to-fork strategies. But the Commission has postponed the presentation of its drafts planned for the end of March.
The war in Ukraine had left no room for further appropriate political discussions on nature conservation legislation, the Brussels authority explained the move. At the same time, the postponement was probably intended to address the debate over food security in Europe. In a Commission communication published instead, it is said that the food supply in the EU is not at risk. Nevertheless, to increase production, the cultivation of food and feed, including the use of pesticides, is also to be permitted on fallow land, at least in the medium term. The two planned nature conservation laws are diametrically opposed to this.
The new date for the presentation of the Commission’s drafts is June 22. The short time frame is causing irritation. After all, the European Parliament, under the leadership of the EPP Group, has passed a resolution on food security, in which it called for a comprehensive impact assessment of the planned regulations with regard to their interaction. Reducing the use of pesticides by 50 percent would lead to a significant drop in yield, which in turn would require more land, Norbert Lins (CDU), chairman of the Agriculture Committee in the EU Parliament, tells Europe.Table. At the same time, the EU Commission wants to increase the set-aside of agricultural land from the current 2.5 percent to ten percent. This does not fit together and could endanger food security, especially in the current situation, says the MEP.
However, the required impact assessment would take at least half a year, especially since the different climatic and geological conditions, as well as agricultural standards in the various member states, would have to be taken into account. If the Commission wants to comply with the Parliament’s resolution, the new deadline of June 22 is therefore unlikely to be met.
Last week, a representative of the Commission from the Directorate General for Food Safety affirmed that the conservation goals would be adhered to. The planned legislation will not be changed and will be presented before the summer break. However, Martin Häusling, agricultural policy spokesman for the Greens in the EU Parliament, does not want to rely on this. The MEP speaks of a “broad attack on the farm-to-fork strategy” and expects a lot of headwinds in the Parliament and especially in the Council. Germany is practically isolated in this respect.
Indeed, at the latest Council meeting on Thursday, German Agriculture Minister Cem Özdemir appealed to his colleagues not to undermine the level of ambition on biodiversity and climate protection. “Let’s avoid simply skipping complex policy discussions now with the argument of war,” Özdemir said.
But even before the outbreak of the war, most member states had shown little support for the planned pesticide regulation, Häusling criticizes. For example, there is already a lack of data on the use of pesticides in the EU countries. Existing regulations, such as those on integrated and thus sustainable farming, are rarely monitored, and there is hardly any advice for farmers.
This is one of the reasons why the previous directive on the use of pesticides is now to become a regulation. This is according to a leaked version of the Commission draft, available to Europe.Table. Regulations must be implemented directly by the EU states and allow less leeway. The targeted reduction of 50 percent by 2030 is quite ambitious, says Häusling.
The German Farmers’ Association welcomes the Commission’s postponement. The draft must be fundamentally revised again, according to Bernhard Krüsken Secretary General of the German Farmers Association DBV. Bayer AG, on the other hand, does not think much of the delayed implementation. The pesticide manufacturer supports the goals of the farm-to-fork strategy. It is not a question of productivity at the expense of sustainability. The two must be thought of together. “We are therefore in favor of using innovative processes and technologies, for example in the field of digital farming or in plant breeding,” said a spokesman for the chemical company, which serves a growing market with the development of precisely these technologies.
The German Agricultural Industry Association is also calling for new, digital technologies to be brought into practice quickly as part of the pesticide regulation to be able to reduce the use of plant protection products. However, the diversity of agricultural practices in Europe must be taken into account.
For Martine Dermine of the Pesticide Action Network (PAN Europe), the use of synthetic pesticides should be stopped completely as long as the respective effects on the environment and health have not been fully clarified. The best example is glyphosate: The controversial weed killer was classified as “probably carcinogenic” by the World Health Organization in 2015. The responsible EU authorities came to a different conclusion. Currently, the use of glyphosate is approved in the EU until the end of 2022. An extension is considered likely.
Dermine asserts that food security is possible without the use of pesticides. Although less yield must be expected, the problem lies in the wasteful use of food and the types of diet. For example, according to the Commission, some 88 million tons, or about 20 percent of the food produced in the EU, is wasted each year. About two-thirds of the grain grown is used as animal feed.
However, complete freedom from pesticides is becoming increasingly difficult. That’s because, according to a study, pesticides can spread far and wide through the air. Johanna Bär of Bündnis für enkeltaugliche Landwirtschaft explains, “We have found residues in tree bark, in ventilation systems of buildings, in nature reserves, and also in organic fields.” About 30 percent of these have now been classified as harmful to the environment or health and are no longer permitted.
This is a major problem for the organic sector because the use of synthetic pesticides is prohibited in organic food. However, due to the transfer of pesticides, organic foods are increasingly no longer allowed to be declared as such. With its planned nature conservation legislation, the Commission also wants to promote organic farming. However, it could still take several years before this is finally adopted.
In the presidential race in France, voters will decide in two weeks between incumbent Emmanuel Macron and right-wing candidate Marine Le Pen. As expected, both qualified for the runoff in the first round yesterday, according to initial forecasts by four polling institutes. Macron, who has been in office for five years, was more clearly ahead of Le Pen than in the last polls before the election.
In initial reactions, almost all the defeated candidates spoke out in favor of voting for Macron now, which increases his chances. No French president has succeeded in securing a second term in office for two decades.
According to various projections, the liberal Macron received 28.1 to 29.5 percent of the vote on election night. Le Pen came second with 23.3 to 24.4 percent. The left-wing candidate Jean-Luc Mélenchon received around 20 percent. The far-right candidate Éric Zemmour and the conservative Valérie Pécresse had no chance with around seven and five percent respectively. Pre-election polls had predicted about 26 percent for Macron, just ahead of Le Pen with 24 percent. Although the first partial results showed Le Pen ahead of Macron, they still underrepresented the large cities, where Le Pen has a harder time.
Macron campaigned after Sunday’s election to support him in the runoff. He called on all citizens to stop the extreme right. Zemmour called on his supporters to vote for Le Pen now. Signals to support Macron, on the other hand, came from the Greens, the Left, the Socialists, and the Conservatives. Pécresse told her supporters that Le Pen disqualified herself – against the backdrop of the Russian attack on Ukraine – because of her closeness to Russian President Vladimir Putin. “Her election would mean France becomes irrelevant on the European and international stage.” Le Pen said she wanted to overcome divisions within the country as president.
The reactions from the European Parliament on Sunday evening were rather restrained. Rasmus Andresen (Greens/EFA) tweeted that he feared that the “many tweets of relief come clearly too early.” Macron’s arrogance and neoliberal attitude make it easier for Le Pen than last time. Iratxe Garcia Perez, leader of the S&D group, called on Twitter for “all progressive people” to vote against Le Pen, saying she was endangering democracy and social peace.
After the runoff election on April 24, the new term of office will begin no later than May 13. A new parliament will then be elected over two weekends in mid-June. rtr/klm
The joint platform of EU states on energy procurement will set up an advisory working group with experts from the business community. This was announced by the EU Commission on Friday. The previous evening, the platform had met with representatives of the 27 member states for its first meeting. The goal is to coordinate the procurement of natural gas and liquefied natural gas (LNG) to become less dependent on Russian gas supplies. In the long term, the work is also to be extended to hydrogen and renewable energies.
The members also want to ensure that the best possible use is made of existing gas infrastructure, meaning primarily regasification terminals for LNG. In addition, the need for new hydrogen infrastructure to be built is to be identified. ber
The European Union may set more ambitious targets for its transition to renewable energy as it seeks alternatives to imports of oil and gas from Russia, EU climate policy chief Frans Timmermans said on Sunday.
The EU’s 27 member states have agreed to collectively reduce their net greenhouse gas emissions by 55 percent from 1990 levels by 2030, a step towards “net zero” emissions by 2050.
Following Russia’s invasion of Ukraine in February, the European Commission has also proposed that Europe cut imports of Russian gas by two-thirds this year, and is drafting plans to phase them out by 2027. The Commission is due to propose a “Repower EU” plan in May for how the bloc can quit Russian fossil fuels.
“What we will do in the next couple of weeks is work towards what I call the Repower EU initiative, and as part of that we want to accelerate the energy transition. So in that context we might revisit our targets,” Timmermans told reporters during a visit to Cairo. Such a revision would mean a “higher percentage of renewable energy for 2030,” Timmermans said, declining to giving figures for possible new targets.
Under existing plans, the EU would raise the share of renewable energy to 40 percent of final consumption by 2030. Egypt, which will host the COP27 climate conference in November and which re-exports Israeli gas from liquified natural gas (LNG) terminals on its Mediterranean coast, could help the EU diversify its gas imports, Timmermans said.
“If we can get other LNG in the region – and we will see which amounts will be available from Israel – that might be a good approach,” he said. “The core of what I’m offering is a long-term strategic relationship that starts with LNG then quickly moves also into renewables, particularly hydrogen,” he added. rtr
European Union countries sharing borders with Russia and Belarus have barred some cargo vehicles registered in the two countries from entering since Friday due to sanctions, the Russian customs service said on Saturday. The EU on Friday formally adopted new sanctions against Russia, including bans on the import of coal, wood, chemicals and other products, while also preventing many Russian vessels and trucks from accessing the bloc.
Vehicles used as international transport that have Russian and Belarusian number plates will not be able to move goods on EU territory, the Russian customs service said. “According to available information, the restrictions do not yet apply to road freight transport delivering pharmaceutical, medical, food and agricultural products, including wheat, as well as the delivery of energy, non-ferrous metals and fertilizers,” the customs service said. Transit from Russia to Kaliningrad – Russia’s exclave on the Baltic Sea sandwiched between Poland and Lithuania – was still open for vehicles registered in Russia. rtr
According to the German financial regulator BaFin, the Russian bank VTB can no longer exercise any control over its European subsidiary. This is the consequence of the EU’s fifth package of sanctions against Russia, which was just imposed in the wake of Russia’s attack on Ukraine. The Bonn-based BaFin said on Sunday it had banned the St. Petersburg-based parent company from exercising its voting rights at subsidiary VTB Bank Europe on Saturday. The Russian financial institution is part of the new sanctions.
The subsidiary is no longer allowed to take instructions from the parent company, BaFin said. Weeks ago, a ban had already been issued on making payments or shifting assets in favor of VTB Group. The subsidiary is thus now completely shielded. “Depositors can continue to freely dispose of their money, and debtors can service their loans with interest and repayments. Other creditors of the bank – as long as they are not sanctioned themselves – may also be served accordingly and receive payments from the bank.”
Other banks, service providers, and employees may continue to work for VTB Bank Europe. Its asset and liquidity position remains orderly, BaFin said. However, the business is to be scaled back. rtr
Italy’s Prime Minister Mario Draghi will visit Algeria on Monday to sign an agreement to ramp up gas imports with Algerian President Abdelmadjid Tebboune, two sources said.
Draghi will travel with a delegation that is expected to include the head of Italian energy group Eni, Foreign Minister Luigi Di Maio, and Ecological Transition Minister Roberto Cingolani, a government source said. Algeria is expected to supply Italy with an additional 4 billion cubic meters of natural gas annually, a source told Reuters on Sunday.
Algeria is Italy’s second-biggest gas supplier and the Transmed pipeline has been pumping Algerian gas to Italian shores since 1983. It has a daily capacity of more than 110 million cubic meters but currently transports less than 60 mcm.
Rising domestic consumption, under-investment, and political instability, including the closure of a pipeline to Spain over a dispute with Morocco, have capped Algerian exports. But last year Italian imports rose 76 percent to 21.2 billion cubic meters (bcm) – 29 percent of overall flows. Rome has said it is looking to secure 9 bcm more from the North African country. rtr
Elon Musk, Twitter Inc’s biggest shareholder, on Saturday suggested a raft of changes to the social media giant’s Twitter Blue premium subscription service, including slashing its price, banning advertising, and giving an option to pay in the cryptocurrency Dogecoin.
Musk, who disclosed a 9.2 percent stake in Twitter just days ago, was offered a seat on its board of directors, a move which made some Twitter employees panic over the future of its ability to moderate content.
Twitter Blue, launched in June 2021, is Twitter’s first subscription service and offers “exclusive access to premium features” on a monthly subscription basis, Twitter says. It is available in the United States, Canada, Australia, and New Zealand.
In a Twitter post, the head of electric vehicle maker Tesla Inc suggested that users who sign up for Twitter Blue should pay significantly less than the current $2.99 a month, and should get an authentication checkmark as well as an option to pay in local currency.
“Price should probably be ~$2/month, but paid 12 months up front & account doesn’t get checkmark for 60 days (watch for credit card chargebacks) & suspended with no refund if used for scam/spam,” Musk said in a tweet.
“And no ads,” Musk suggested. “The power of corporations to dictate policy is greatly enhanced if Twitter depends on advertising money to survive.” Musk also proposed an option to pay with Dogecoin and asked Twitter users for their views. Twitter declined to comment on Musk’s suggestions. rtr
“If we want to hold our own in the world, we can only do so as a strong, European community,” according to Angelika Niebler, Chair of the CSU European Group and Deputy Chair of the CDU/CSU Group in the European Parliament. Niebler is particularly committed to the interests of the business locations of Upper Bavaria and Munich. In 2019, she delivered support for companies in difficulties but with good prospects: “With the directive on preventive restructuring, we have provided a set of instruments that will make it easier for companies to reorganize and thus avoid insolvency.”
Niebler has been a member of the European Parliament since 1999. Before that, Niebler was active in local politics: Infected by her husband’s enthusiasm for politics, she also joined the Junge Union, the Women’s Union, and the CSU in 1994 and eventually ran successfully for the district council of the Ebersberg district: “With love into municipal office,” Niebler says, laughing. Her interest in Europe arose during her student days: “During my law studies, I spent two semesters at the University of Geneva. There I learned how important it is to think outside the box. After graduating, I then took part in the ‘European Young Lawyers Course’ at the University of Edinburgh.”
Since she was active in local politics and at the same time familiar with European issues, she was asked by party colleagues whether she could imagine running for the European Parliament: “When an opportunity like this arises, you have to grab it!”
Niebler is convinced that Europe needs a strong industrial base to maintain its prosperity. Above all, she wants to work to ensure that SMEs have fair competitive conditions: “Many information and documentation obligations, high taxation, the high energy prices and the lack of skilled workers are a burden on our SMEs. One example is the EU VAT reform, according to which the different VAT rates must be shown for online trade starting at €10,000. This entails an enormous administrative burden. We must also not overburden our SMEs with the new version of sustainability reporting.”
The fact that something doesn’t seem easy at first glance hasn’t bothered the politician in the past: The topic of equal opportunities is particularly important to Niebler, who has managed to push through the women’s quota of 40 percent in the CSU’s state and district executive committees: “A lot has happened at the European level, too, but women still have a harder time gaining a foothold. Equality of opportunity is not a foregone conclusion. That’s why I will continue to stand up for women.” A Europe-wide women’s quota on supervisory boards of large companies of 40 percent is also currently being discussed in the European Parliament. Alina Jensen