Friedrich Merz wants a “radical reduction in bureaucracy” in Europe. “We have to get down to business now,” said the CDU/CSU candidate for chancellor in our podcast Table.Today. He was no longer prepared to “respond to these big questions with small screws”. That is why he and other leading EPP politicians will make a proposal on where to reverse regulation. “Not a little bit of correction, not stopping but undoing what has been decided in the European Union.“
Merz is relying on the conservative heads of government and less on the EU Commission. He will always involve Ursula von der Leyen. However, the EU Commission is very heterogeneous and a huge apparatus with entrenched rituals that could slow it down. The Commission therefore needs “impetus and help from outside”. Of the 27 EU heads of state and government, 13 already belong to the EPP. “I will be the 14th, then we would even have a mathematical majority.” There will now have to be a few fundamental decisions, and he will initiate them.
A central goal of the CDU/CSU is to abolish the ban on combustion engines. Merz emphasized that he would try to initiate a repeal of the ban with the EPP heads of government. The commitment to e-mobility alone should not be allowed to stand. As a politician, he did not want to decide which technology would be used. He simply said: “These are the conditions, these are the limit values; these are the environmental goals we want to achieve.”
But he doesn’t tell the citizens that all this only works with electric vehicles. Incidentally, half of the population in Germany lives in rented apartments, and half of the tenants live in apartment buildings, probably even two-thirds. “Setting up a charging infrastructure so that they can all be on the road with e-mobility is simply impossible. Technically impossible.”
You can listen to the full interview with Friedrich Merz in German here.
Your Stefan Braun
Feature
Election programs: How the parties position themselves on Europe
What do the four centrist parties with a realistic government perspective have to say on EU issues? The differences are striking: The Greens devote a lot of space to Europe in their election manifesto, while the FDP limits itself to one page. The CDU/CSU wants “Europe only where Europe creates added value for all”. However, this apparently applies to many areas, from the single market to digitalization, climate action, energy, trade, migration, and defense.
Economic policy: Cutting red tape and lead markets
CDU/CSU: The Christian Democrats are focusing on deeper integration and reducing bureaucracy. In their program, they call for the Energy Union and the Capital Markets Union, the latter having failed in the past, not least due to German resistance. Bureaucracy is to be curbed by, among other things, an “immediate freeze on burdens for new and ongoing EU initiatives” and simplified procurement procedures. The EU wants to boost the production of semiconductors and battery cells in Europe.
SPD: According to the draft program, the Social Democrats also want to introduce a “practical check” to ensure that EU initiatives do not lead to further bureaucracy. It also wants to push ahead with the banking and Capital Markets Union. The party is also calling for a “European resilience strategy” that reduces geo-economic risks and brings key industries back to Europe. The SPD is considering local content rules and localization obligations.
Greens: The Greens want to drive forward industrial policy across Europe by means of green lead markets. For example, public contracts should include a minimum quota for green steel. In order for the EU to also benefit economically from climate action measures, the Greens also believe that more financial power is needed at the European level. The EU budget should be strengthened through new own resources, for example through a tax on digital companies. Financing via European bonds is also not taboo for the Greens.
FDP: The FDP is strongly committed to reducing bureaucracy. The EU Commission is now the main source of bureaucracy. The party is therefore calling for a “strict ban on gold plating,” meaning that European directives should not be subject to additional regulations at the national level. The FDP wants to abolish reporting obligations, particularly on taxonomy, CSRD, and the Supply Chain Directive. jaa
Trade policy: ‘Balanced’ or ‘as much as possible’?
CDU/CSU: The CDU/CSU is calling for the Mercosur agreement to enter into force quickly. The Christian Democrats also want to conclude more trade agreements and reduce dependence on China. Foreign and development policy should be more closely aligned with Europe’s economic interests.
SPD: For the SPD, agreements such as the one with Mercosur are “important milestones”, but meeting social and environmental standards is important. In the future, such agreements should be “simplified and concluded more quickly”.
Greens: The Greens are committed to “balanced partnerships” that meet high ecological standards. They also defend the EU’s Supply Chain Directive. In order to achieve faster negotiation success, trade agreements should be less comprehensive and instead focus on a few sectors. The EU must also do more to combat Chinese overproduction.
FDP: The FDP sounds similar with regard to overproduction from China. In addition, the “flood of illegal cheap products from China should be combated throughout Europe”. The party also calls on the EU to “conclude as many free trade agreements as possible”. jaa
Climate and energy: Emissions trading and climate money
CDU/CSU: European emissions trading (ETS) is to be expanded to become the leading instrument for climate protection and the revenues returned to consumers and the economy. For biomethane and hydrogen, the CDU/CSU is aiming to blend into the gas grid, although the new Gas Market Regulation only provides for this as a last resort for promotion.
SPD: The SPD is calling for a paradigm shift in climate policy, but is hardly making any new proposals. The climate club, climate money, and municipal heat planning are already familiar. At the Commission, it wants to ensure that more energy-intensive industries benefit from electricity price compensation. The Social Democrats want to create sufficient storage capacity for hydrogen, for example as a national reserve. They are also campaigning for an EU raw materials strategy.
Greens: The Greens also want to use the climate money to make climate action more socially just, but also advocate comprehensive subsidy programs, for example for EVs and house renovation.
FDP: The FDP is questioning Germany’s statutory climate neutrality target for 2045. It wants to use EU emissions trading to reverse further climate regulations, including the CO2 fleet regulation. The FDP wants to abolish the electricity tax and successively also the minimum rates for the energy tax on heating and fuels. Only the CO2 price should remain. ber/luk
Digitalization: Nothing concrete
CDU: The CDU/CSU is relying on “sovereign AI and cloud applications” to drive forward the reindustrialization of the country. It wants to set up a federal digital ministry and digitalize processes. For example, it wants to implement a digital citizen account and set up a secure digital identity with its own mailbox for dealing with authorities. This should also be eIDAS-compatible, which is already required by EU law.
SPD: The party emphasizes that it wants to oppose discrimination in digital spaces by right-wing populists and other forces. It also wants to ensure “equality between creation and technology and fair remuneration rules” in the regulation of digital platforms and artificial intelligence.
Greens: First of all, the Greens emphasize that Europe must catch up in terms of digitalization. Then they also announce that they want to make public administration more digital for citizens and companies. Finally, they want to reduce waste with a digital EU product passport.
FDP: The FDP wants to drive digitization everywhere – right up to the digital euro, although its use should be “voluntary”. A central digitalization ministry is to take control. vis
Security and defense: More money for the Bundeswehr
CDU/CSU: NATO’s two percent target only represents the “lower limit” of defense spending for the Union. The aim is to create a single market for military equipment with common export rules. Manufacturers’ access to financing should not be hindered by ESG criteria.
SPD: The SPD also advocates defense funding of “at least two percent” of GDP. It also advocates a European defense union in which “we make coordinated investments and organize our armed forces in partnership”. The SPD is also “clearly” committed to supporting Ukraine, but warns against embarking on “dangerous adventures” with regard to Merz.
Greens: Even the Greens advocate a defense budget of “significantly more than 2 percent in the long term”. At both national and European levels, investments should be financed through higher borrowing. The EU states need financial incentives and the political will to put national industrial policy interests at the service of greater common security. At the same time, the Greens insist on a common but restrictive arms export policy.
FDP: The Liberals demand that Germany at least meets the 2% target. The formulation of wanting to achieve even three percent in the long term was removed from the final draft. The Bundeswehr is to become “the strongest conventional armed force in Europe”. The FDP also supports the prospect of Ukraine joining the EU and NATO. tho
Migration: Tone is getting sharper
CDU/CSU: The CDU/CSU wants to immediately enforce a “de facto admission ban” and turn back asylum seekers at Germany’s borders. It also wants to drastically reduce the number of people entitled to protection by abolishing subsidiary protection status. Anyone who applies for asylum in Europe should be transferred to a safe third country, undergo an asylum procedure there and, if the outcome is positive, remain there. The CDU/CSU only wants to accept refugees within the framework of quotas.
SPD: For the SPD, on the other hand, the Common European Asylum System (CEAS) is the key to managing and organizing migration. The EU’s external borders should be better controlled, but there should be no pushbacks. The SPD rejects the third-country solution.
Greens: The party insists: “The right to a case-by-case examination and the principle of non-refoulment apply always and everywhere.” Asylum applications must be examined within the EU – third-country procedures cost a lot of taxpayers’ money and would fail in court. The Greens prefer migration agreements that enable legal migration routes and at the same time provide for the return of rejected asylum seekers.
FDP: Those who do not meet the requirements for residence in Germany should not be able to enter Germany permanently in the first place, the Liberals demand. The role of Frontex in protecting the external borders should be strengthened. The EU should also negotiate migration agreements to promote the willingness of countries of origin to take back migrants. tho
EU enlargement and reform: A consensus on paper
CDU/CSU: The accession of Ukraine, Moldova, and the Western Balkan countries is in the EU’s security policy interests – the four parties are largely in agreement on this. The candidate countries should be brought closer to the EU via intermediate stages. There should be no compromises on the accession criteria. The CDU/CSU sees a need for reform of the EU institutions, without being specific. The Commission should take more consistent action against violations of the rule of law.
SPD: A reform of the European treaties must take place at the latest with EU enlargement, demands the SPD. In particular, this includes abandoning the principle of unanimity in the Council. It is also calling for stricter rule of law instruments.
Greens: The party is becoming more specific: Majority decisions are to be introduced in all policy areas; if necessary, groups of member states are to lead the way in a “coalition of the willing”, but remain open to all. The European Parliament is to be given the right to initiate legislation and some MEPs are to be elected via transnational lists in the future. Citizen participation is also to be expanded. The rule of law procedure under Article 7 of the EU Treaty is to be made more effective with the help of qualified majority decisions. The Greens’ vision remains a “Federal European Republic with its own constitution”.
FDP: The Free Democrats are calling for institutional reforms to increase the EU’s ability to act independently. Specifically, they are calling for qualified majority decisions in foreign and security policy, a reduction in the size of the Commission, and a right of initiative for the EU Parliament. tho
EU coordination: Chancellery should fix it
CDU/CSU: The Federal Chancellery should take on a stronger coordinating role in the future, writes the CDU/CSU. Germany should no longer abstain in key policy areas in the Councils. Chancellor candidate Merz also wants to achieve close coordination between Berlin, Paris, and Warsaw “on all relevant issues of foreign, security and European policy”.
SPD: The Social Democrats do not comment on coordination in the federal government. They emphasize the Franco-German partnership, which had suffered under Chancellor Scholz, as well as relations with Poland and the other EU Baltic Sea states. Cooperation with Great Britain, particularly in the area of defense, is emphasized.
Greens: “We reject national solo efforts and a permanent German Vote is harmful,” says the program – without making any concrete proposals. The Greens want to move the EU forward, particularly with France and Poland.
FDP: Not a word on EU coordination within the German government. Instead, the Liberals also advocate close cooperation with France, a strengthening of the Weimar Triangle with Poland, and deeper cooperation with the United Kingdom, particularly in matters of security and defense. tho
CSRD
EU-Erweiterung
European Defense
European policy
Translation missing.
Interview
New ECR leader: Morawiecki sees rapprochement with EPP
Mateusz Morawiecki will replace Giorgia Meloni as the head of the European political family ECR in mid-January.
Mr. Morawiecki, you will take over from Prime Minister Giorgia Meloni on Jan. 15. What would you like to change about the priorities of the political family?
Europe is not only losing the competitiveness of its industry, but also its values. My predecessor Giorgia Meloni created a strong foundation on which I can build. Specifically, I want to focus on challenging the European Commission and its over-bureaucratic approach in many sectors of the economy. We need to create a more dynamic, Schumpeterian environment for economic development. Europe is in a phase of stagnation or stagflation.
What specifically do you criticize about the EU?
There are currently three major deficits: illegal migration, the Green Deal, and too much bureaucracy. These three areas are a kind of ideology that runs counter to rational economic principles. Security should be the fundamental issue of the entire European Union. During my tenure as Prime Minister, Poland was one of the safest countries in Europe, perhaps even in the world. This is not the case in Sweden, France or Germany, where fears, unrest and disorder on the streets are often linked to illegal migration and other problems. We also need a renaissance of European industry. My plan is to create the label “Designed and Crafted in Europe” – as a European answer to “Make America Great Again” or “Made in China” under Xi Jinping.
Against the Green Deal
In the European Parliament, the EPP has recently been working together with the ECR on various issues. Are you pleased about that?
We are open to cooperation with all those who care about the future of Europe. If the EPP continues to cooperate more with left-wing groups, we will firmly oppose their agenda. However, I am pleased to see that the EPP is increasingly moving towards the ECR’s program. The ECR can cooperate with both the Patriots for Europe Group and the EPP. These three groups are close to forming a majority. Together we can create a coalition of common sense.
Where do you see differences to the EPP?
The biggest differences concern the Green Deal and illegal migration. I see that the EPP positions in these two areas are slowly changing. Nevertheless, factories are closing every day in Poland and other European countries.
There are 17 Polish MEPs from Donald Tusk’s Civic Platform in the EPP. Can the ECR work with them?
This makes the situation difficult indeed. The current Polish government is pursuing an extremely anti-democratic agenda. In Poland, we are trying to treat national issues as internal affairs. At European level, however, we are ready to cooperate with all those who have the good and future of the EU in mind.
Looking forward to Trump
How do you rate the start of the Trump administration?
I very much welcome the Trump administration. Europe and the US should work together. What we need now is a renaissance of the Western world, of Western civilization. Only a Europe with strong industry, a resilient military, and a vibrant economy can be a truly valuable partner for the US. At the same time, I see the threats from China and Russia. Russia is increasingly becoming a kind of junior partner to China, and both together pose a challenge to Western civilization.
Trump could strike a deal with Russia at the expense of Ukraine.
I hope that Trump will not stop supporting Ukraine. It would be a major setback for the status of the United States. I believe Trump will seek a compromise solution that includes strong support for Ukraine while seeking an agreement with the Kremlin. If these negotiations are not conducted in good faith, I am convinced that President Trump will support Ukraine with substantial arms shipments.
Presidential elections are coming up in Poland. If the PiS candidate wins: Will he have to continue blocking the Tusk government’s initiatives or seek an agreement with Donald Tusk?
Strictly speaking, Karol Nawrocki is not a PiS candidate. He was nominated by an independent committee that is not affiliated with any party. My party supports him. Nawrocki is a charismatic leader with a clear vision and a sense of reason and passion. I believe he is the right person to end the “Polish civil war”.
EVP
Feature
Ukraine: Balancing act for the EU and NATO ahead of Trump’s return
It’s a delicate balancing act: How can we adapt to Donald Trump without sending the wrong signals or anticipating what the future POTUS will actually do? Finding a way to do this is the difficult task that the new EU Council President António Costa has set himself for his first summit on Thursday, according to diplomats.
The same question is likely to have been on the agenda at Wednesday evening’s discreet meeting at the residence of NATO Secretary-General Mark Rutte. Trump has announced some things, but at the same time, he is seen as unpredictable. Setting the wrong course too early could take its toll.
Zelenskiy as Rutte’s guest
António Costa has invited Volodymyr Zelenskiy for the discussion on Ukraine on Thursday. The plan is more of a brainstorming session, not a decision. The Ukrainian President was already in Brussels the previous evening, initially alone for a rendezvous with Rutte. Zelenskiy wanted to discuss further support for his country there. However, security guarantees and other conditions in the event of a ceasefire, which Trump could force Ukraine to agree to, may also have been on the agenda.
German Chancellor Olaf Scholz, French President Emmanuel Macron, Italian Prime Minister Giorgia Meloni and other heads of state and government were due to join the small group at Rutte’s residence later on after a parallel dinner with the candidate countries of the Western Balkans.
Scholz expresses confidence in cooperation with Trump
Olaf Scholz came to Brussels with the clear intention of taking countermeasures in the face of public speculation about peace negotiations. Some were making the mistake of taking the third and fourth steps before the first, said the Federal Chancellor on his arrival for the meeting with the Western Balkan countries. Some were not concerned enough with the question of how Ukraine could be helped further: “It must be clear that we will support Ukraine for as long as necessary.” In any case, there should be no peace over the heads of the Ukrainians. And the country must not be subjected to a dictated peace.
Scholz also expressed confidence with regard to cooperation with the future US administration: During the talks with President Trump, it had become clear to him that it was possible to work together so that Ukraine would have good prospects.
Ukraine must become ‘indigestible’ for Russia
Not surprisingly, the newEU High Representative for Foreign Affairs Kaja Kallasmade a clear statement: The situation is that Russia does not want peace. Ukraine must therefore be supported as much as possible. The stronger Ukraine is on the battlefield, the stronger it will be at the negotiating table later on. Polish Prime Minister Donald Tusk’s statements went in a similar direction: It was now time for the entire West to believe in its own strength. Ukraine deserves a just peace, as well as respect for its territorial integrity.
However, speculation about peacekeeping troops and security guarantees will not die down any time soon. The best security guarantee is to arm Ukraine in such a way that it becomes “indigestible” for Russia, say diplomats. Then a scenario like the annexation of Crimea in 2014 could not happen again. However, this would hardly work without the USA.
The question of peacekeeping forces is unlikely to be decided in Brussels anyway, but in the national capitals. After all, the aid for Ukraine is fully financed until the end of 2025, in particular thanks to the windfall profits on Russian state bank funds. This is also underlined in the draft summit conclusions. Even Donald Trump cannot do much damage here.
More missile defense systems
Ukraine hasmajor deficits in protecting its infrastructure and energy supply, which is being bombed by Russia, diplomats said. This is a major problem for morale and resilience in Ukraine. More missile defense systems are needed. This is an area in which the Europeans are dependent on help from the USA. Europe would generally have to be prepared for the scenario that the USA no longer supplied ammunition, for example.
Moreover, Ukraine is not only lacking weapons, but increasingly also soldiers, diplomats said. However, the European partners do not want to get involved in the discussion about lowering the age for compulsory military service to 18. Ukraine must decide on this sensitive issue. Ultimately, it is a question of whether or not a generation should be sacrificed for the war.
Europapolitik
Translation missing.
News
Trio program: Council prioritizes foreign affairs and asylum
The next three Council presidencies want to strengthen the EU’s external relations and border protection inparticular. This emerges from the as-yet-unpublished eighteen-month program of Poland, Denmark, and Cyprus. The governments of the three member states will form the next trio presidency from January 2025 to June 2026, which will always have a joint program.
According to the ten-page document, the trio wants to prioritize two points:
EU engagement with global partners: Strategic partnerships should ensure the Union’s economic security, strategic autonomy, resilience, and technological leadership. Emphasis is placed on relations with the USA, but also with other economic areas such as Africa, Latin America, and South East Asia.
Border management and returns: The trio wants to prioritize “decisive action to protect and strengthen the EU’s external borders with all available means” and “work on exploring new ways to prevent and combat irregular migration movements to Europe”. It also intends to give priority to “facilitating, increasing, and accelerating returns”.
According to figures released by Eurostat on Wednesday, the number of people applying for asylum in the EU for the first time fell by 24 percent within a year in September – from 99,930 to 75,755 applications. ber
Asylpolitik
Autumn package: Commission warns of economic imbalances
Yesterday, Wednesday, the European Commission presented the second part of the fall package of the European Semester. In its Alert Mechanism Report, it identifies nine member states that are in a state of macroeconomic imbalance: Germany, the Netherlands, Greece, Cyprus, Italy, Hungary, Romania, Slovakia and Sweden.
The Commission also fears that this could now also apply to Estonia. The Brussels authority will deliver a detailed report for all ten member states in the spring.
Germany should spend less and invest more at the same time
While countries such as Romania have the problem that they combine a high trade deficit with high government deficits, the opposite is true for Germany. The Commission complains that Germany has too high a trade surplus, too high a savings rate, and too little investment. This is mainly due to German rules such as the debt brake, said an EU official. However, Germany is currently also getting in the way of EU debt rules.
While the Commission is complaining about Germany’s low level of public investment as part of its review of macroeconomic risks, it is also proposing a more restrictive spending path for Germany under the new EU debt rules than the German government had envisaged.
However, the Commission does not want to see any contradiction in this. “It is always a delicate balance,” said Economic Affairs Commissioner Valdis Dombrovskis. For 2025, the Commission expects higher public investment on average in the EU despite a slightly restrictive fiscal policy. He therefore refuses to accept the criticism of the EU debt rules: “In most cases, the new European economic governance framework gives Germany more fiscal leeway than the debt brake.”
Further education goals a long way off
As part of the European Semester, the EU Commission also published a report on employment in the EU (Joint Employment Report) on Wednesday. While the unemployment rate of 6.1 percent is pleasingly low by historical standards, other key figures in important areas fall short of the EU targets. Youth unemployment, for example, is stagnating at almost 15 percent.
There is also little movement in the area of further training. The EU had set itself the target that by 2030, the proportion of employees undergoing further training per year should be 60 percent. By 2025, the figure should be at least 50 percent. In 2022, the figure was 39.5 percent – an increase of just 2.1 percentage points compared to 2016.
Labor Commissioner and Vice-President Roxana Mînzatu said that the figures were not satisfactory. “We need a revolution, a new mindset for skills,” she said. Otherwise, the economic transformation and the necessary productivity growth could not be mastered. In March, she wants to present a “Union for Skills”. However, the Commission’s hands are largely tied, as it has little competence in education and labor market issues. jaa
EU-Schuldenregeln
Transformation
Occupational health and safety: Parliamentarians call for subcontractor restrictions
The Employment Committee in the European Parliament is planning an own-initiative report on combating subcontracting next year. Table.Briefings learned this from committee circles. Critics see long subcontractor chains as a problem when it comes to guaranteeing employee rights. Every time a contract is passed on, monitoring becomes more difficult.
In the plenary session on Wednesday, the ideas were welcomed across party lines. EPP politician Sérgio Humberto, for example, emphasized: “We should do what we can do.”The Portuguese politician stressed that the aim was to limit abusive contract awards so that there is fair treatment and equal opportunities.
Leading S&D politicians had already campaigned for a subcontractor law at the European level in the summer. Accordingly, S&D politician Gaby Bischoff also emphasized: “We have different laws on the subject. A little bit here, a little bit there. But we need to take a holistic approach to this complex system. We need our own legislative initiative at EU level.”
She referred to what she sees as the successful ban on contracts for work and temporary employment in the German meat industry: “The law is working. Companies continue to prosper and people have better working and living conditions.” Bischoff emphasized that the outsourcing of core activities must also be part of the law.
Mînzatu’s first appearance in plenary
Social Affairs Commissioner Roxana Mînzatu made her first appearance in plenary on Wednesday. She particularly emphasized the vulnerability of third-country nationals: “They are particularly often in subcontractor chains and can be even more exposed to unfair working conditions.” Third-country nationals are not yet part of the mandate of the European Labor Authority (ELA), which supports the monitoring of cross-border undeclared work. Members of the European Parliament would like to change this – and hope that the new Commission will tackle the issue.
Mînzatu also referred to existing instruments and laws at European level – such as the Supply Chain Act or the European Labor Authority (ELA). She again spoke out in favor of strengthening the authority. But she also passed the ball back to Parliament. “Dear MEPs, I am relying on your support to ensure that abusive subcontracting can be combated.” lei
Arbeitnehmerrechte
eDeclaration: Trade union questions invoice
The European Trade Union Confederation (ETUC) has sharply criticized the Commission’s estimate of cost savings through the eDeclaration. According to the ETUC, the first version of the Commission’s working document still stated that a European declaration portal and the standardized questionnaire on the posting of workers would result in savings of €1,414,000 – assuming that nine countries participate as announced. If all states were to participate, the savings would be “around €13,945,000”, ETUC quotes the first document.
These figures can no longer be found in the version published in November. It now states that the savings would be between €95 and €342 million – up to 25 times more than originally estimated. In addition, the current version of the document also refers to data from the VDMA in order to substantiate the estimate, according to the ETUC. The Commission itself explains in the working document that the VDMA figures are “based on German labor costs, which are above the EU average for hourly rates“.
Have the numbers been made to fit?
ETUC Deputy General Secretary Isabelle Schömann sharply criticized: “The enormous difference in the figures between these two documents raises serious questions about the credibility of the claims about the alleged benefits of deregulation.” She wonders whether the savings are really 25 times higher than the Commission’s original estimate. Or whether “unverified figures from a partisan source [were] selected at the last moment to suit an ideological deregulation drive?“
The trade unions are extremely critical of the eDeclaration, which has been slimmed down to around 20 questions. They fear that information required for inspections, such as a local contact person, will no longer be requested. The social costs of the eDeclaration would not be taken into account in the Commission’s calculation, according to the ETUC press release.
What is also striking is that the Commission service appears to refer to the costs of using external service providers for posting in the current working document. It states: “In the interviews conducted for the Commission, companies indicated that outsourcing the management of posting procedures to external service providers entails costs of between €90 and more than €1,000 per posting.” The Commission did not respond to a request by Table.Briefings on Wednesday. lei
Daten
EU-Binnenmarkt
Social policy
Wirtschaft
Work
R&D: European companies invest more
European companies invested significantly more money in research and development (R&D) in 2023. Expenditure rose by 9.8% in nominal terms, while it only increased by 5.9% in the USA and 9.6% in China. This is according to the latest Industrial R&D Investment Scoreboard, which the Commission publishes annually. Adjusted for inflation, however, the figures look different. The real growth in R&D expenditure was strongest in China in percentage terms and the percentage growth in the US is only just behind that in the EU.
The EU is also starting from a relatively low base. According to Eurostat, R&D expenditure in the USA accounts for more than 3.6% of gross domestic product (GDP), while the same figure in the EU is 2.2%. Even in absolute figures, the gap remains large. The top 2,000 companies worldwide invested a total of €1,257.7 billion in R&D in 2023. US companies accounted for €533.3 billion of this and companies based in the EU for €235.2 billion.
Big Tech invests the highest sums in R&D in the US
The difference is also evident when looking at the companies: For example,the leader Alphabet (Google) spent €39.98 billion on R&D, while Volkswagen, the European company with the highest research spending, invested €21.78 billion.
As the Draghi report emphasizes, the EU must significantly increase its investment in research and development in order to remain globally competitive. The report calls for a new European industrial policy that provides for annual investments of €750 to €800 billion, mainly from the private sector.
In the USA, it is the big tech companies Alphabet, Meta, Apple, and Microsoft that spend the most money on R&D, in Europe, it is the automotive sector. In 2023, 45.4 percent of global R&D investments were made by companies headquartered in the EU. European automotive companies thus invested more than twice as much as their competitors from the USA and Japan and more than three times as much as Chinese companies. vis
China
Poland: Second-largest electricity supplier announces coal phase-out by 2030
Poland’s second-largest electricity supplier Tauron Polska Energia wants to do without coal power by the end of the decade and become climate-neutral by 2040. This was reported by Bloomberg on Tuesday. The state-owned company plans to invest a total of €23 billion in grid infrastructure and renewable energies by 2035. In 2023, coal-fired power still accounted for 86 percent of Tauron Polska Energia’s electricity mix. According to analyses, Poland could be completely free of coal-fired power by 2032.
The country, which will take over the EU Council Presidency in January, is regarded as Europe’s cleantech hub. 60 percent of lithium-ion battery production in the EU comes from Poland. The country is the second-largest battery exporter in the world after China, according to a report published on Wednesday.
Warsaw is also far ahead in the expansion of renewables: in 2023, around €5 billion were invested in offshore wind turbines – the second-highest figure in the EU. Wind and solar energy generated 21 percent of Poland’s electricity last year, compared to 16 percent in the previous year. Investments in Poland’s transition to net-zero technologies amounted to €13 billion in 2023 – a third more than in the previous year and 20 times higher than in 2017. luk
Kohleausstieg
Hydrogen: Commission approves €3 billion for H2Global
The European Commission has approved the second funding round of the H2Global hydrogen support mechanism for Germany and the Netherlands. “In the spirit of the future ‘Clean Industry Deal’, this three billion euro German-Dutch scheme will help meet the growing demand for renewable fuels in the EU by supporting their development around the world,” said Commission Vice-President Teresa Ribera on Wednesday.
The scheme is intended to promote the development of electrolysis capacities of at least 1.875 gigawatts worldwide. The Netherlands intends to provide €300 million of the funding, with Germany contributing the remainder. However, it is unclear whether the German government will be able to provide its share. The funds are to come from the Climate and Transformation Fund (KTF).
The federal government intends to use the funding to cover the difference between the costs of purchasing and the income from tenders for industrial customers. In November, the Federal Ministry of Economic Affairs published the results of a market consultation on the second round of tenders. A year earlier, during a visit by King Willem-Alexander to North Rhine-Westphalia, Germany and the Netherlands had agreed to work together on the second tendering round. ber
Grüner Wasserstoff
Translation missing.
Executive Moves
Bruna Szego is to become head of AMLA, the EU’s new anti-money laundering authority. The European Parliament voted by a large majority in favor of the Italian’s appointment on Wednesday. Szego was previously head of the department for monitoring and regulating money laundering at the Italian central bank.
Is something changing in your organization? Send a note for our personnel section to heads@table.media!
Opinion
Migration agreement with Georgia: Germany must take a close look
By Sonja Schiffers and Kirsten Krampe
Sonja Katharina Schiffers heads the South Caucasus office of the Heinrich Böll Foundation in Tbilisi, Kirsten Krampe works on migration at hbs.
One year ago, on Dec. 19, 2023, Federal Minister of the Interior Nancy Faeser signed a migration agreement in Tbilisi together with her Georgian counterpart Vakhtang Gomelauri. The changed political situation in Georgia now requires a look at the objectives pursued by the agreement and a reassessment with regard to political persecution.
According to the German Ministry of the Interior, the migration agreement served as a “basis for permanently reducing irregular migration in the interests of both countries”. In 2023, Georgia was still of particular importance for asylum applications in Germany. In October 2023, for example, almost 9,000 Georgians applied for asylum in Germany. According to situation reports and decisions at the time, there was generally no threat of political persecution in Georgia. Accordingly, the recognition rate for asylum applications was 0.3 percent.
Georgia was classified as a safe country of origin in 2023
However, more decisive than the migration agreement for the repatriation of Georgian citizens were the resolutions of the German Bundestag on Nov. 16, 2023, and the Bundesrat on Dec. 15, 2023, according to which Georgia was classified as a safe country of origin. The Georgian government did everything it could to assist with the repatriation from Germany, as well as from other EU countries.
This was already the case before the country was classified as a safe country of origin and is probably explained by the good cooperation with the European Union and its member states at the working level until recently. The classification as a “safe country of origin” was therefore referred to almost with pride in government circles in Tbilisi – or perhaps out of political calculation in order to reject criticism from civil society of the government’s increasingly authoritarian course.
Focus on seasonal work
The intention to recruit urgently needed skilled workers in Germany from Georgia also came to nothing with the migration agreement. Years before the negotiations on the agreement, the Georgian side clearly pointed out that the emigration of skilled workers and the brain drain were not in the interests of the state and society in a country that was already small and heavily affected by emigration.
The collaboration therefore focused on circular migration, particularly of seasonal workers. The fact that Georgians are allowed to stay in Germany for 90 days without a visa made the pilot project quickly viable: In 2021, the first agricultural workers traveled to selected farms throughout Germany. In 2022, 1231 Georgians received a work permit for seasonal work in Germany, despite some bad press about the working conditions. In 2023, this number rose slightly to 1269.
Migration agreement offers further opportunities
Many things could be conceived and developed within the framework of the agreement, which promises training and cooperation in other areas. Cooperation in the healthcare sector could be expanded, perhaps incubation cooperation between start-ups. What was important for the Georgian side was the future of its young population in the country itself. But what future is there now?
The political climate in Georgia is currently extremely tense. Prime Minister Irakli Kobakhidze, who remained in office after elections that were neither fair nor free, announced in November that Georgia would not seek to enter into EU accession talks until 2028. This is seen by many Georgian citizens as a deliberate renunciation of European integration, a rapprochement with Russia, and a fundamental breach of Article 78 of the Georgian constitution, which obliges all state bodies to promote European integration.
Government increasingly suppresses critical voices
Although pro-European mass demonstrations have been violently suppressed in recent weeks, thousands of people gather daily in Tbilisi and other major cities to protest. The Georgian Dream party, which remains in power, is pursuing a policy that increasingly suppresses independent voices. Activists, journalists, opposition politicians, and especially the large number of courageous state employees who speak out critically are the targets of intimidation, threats, and physical violence.
Kobachidze also wants to “eradicate liberal fascism“. In the new year, the adopted “agent law” and anti-LGBTQI legislation could be enforced, which could mean heavy fines and even prison sentences, especially for those working in civil society organizations and the media.
The classification as a safe country of originlegitimizes the increasingly repressive government policy, say activists in Tbilisi. If political persecution continues to grow and discrimination against minorities such as LGBTQI people increases, Georgia’s status as a safe country of origin must be reconsidered in Berlin.
Friedrich Merz wants a “radical reduction in bureaucracy” in Europe. “We have to get down to business now,” said the CDU/CSU candidate for chancellor in our podcast Table.Today. He was no longer prepared to “respond to these big questions with small screws”. That is why he and other leading EPP politicians will make a proposal on where to reverse regulation. “Not a little bit of correction, not stopping but undoing what has been decided in the European Union.“
Merz is relying on the conservative heads of government and less on the EU Commission. He will always involve Ursula von der Leyen. However, the EU Commission is very heterogeneous and a huge apparatus with entrenched rituals that could slow it down. The Commission therefore needs “impetus and help from outside”. Of the 27 EU heads of state and government, 13 already belong to the EPP. “I will be the 14th, then we would even have a mathematical majority.” There will now have to be a few fundamental decisions, and he will initiate them.
A central goal of the CDU/CSU is to abolish the ban on combustion engines. Merz emphasized that he would try to initiate a repeal of the ban with the EPP heads of government. The commitment to e-mobility alone should not be allowed to stand. As a politician, he did not want to decide which technology would be used. He simply said: “These are the conditions, these are the limit values; these are the environmental goals we want to achieve.”
But he doesn’t tell the citizens that all this only works with electric vehicles. Incidentally, half of the population in Germany lives in rented apartments, and half of the tenants live in apartment buildings, probably even two-thirds. “Setting up a charging infrastructure so that they can all be on the road with e-mobility is simply impossible. Technically impossible.”
You can listen to the full interview with Friedrich Merz in German here.
Your Stefan Braun
Feature
Election programs: How the parties position themselves on Europe
What do the four centrist parties with a realistic government perspective have to say on EU issues? The differences are striking: The Greens devote a lot of space to Europe in their election manifesto, while the FDP limits itself to one page. The CDU/CSU wants “Europe only where Europe creates added value for all”. However, this apparently applies to many areas, from the single market to digitalization, climate action, energy, trade, migration, and defense.
Economic policy: Cutting red tape and lead markets
CDU/CSU: The Christian Democrats are focusing on deeper integration and reducing bureaucracy. In their program, they call for the Energy Union and the Capital Markets Union, the latter having failed in the past, not least due to German resistance. Bureaucracy is to be curbed by, among other things, an “immediate freeze on burdens for new and ongoing EU initiatives” and simplified procurement procedures. The EU wants to boost the production of semiconductors and battery cells in Europe.
SPD: According to the draft program, the Social Democrats also want to introduce a “practical check” to ensure that EU initiatives do not lead to further bureaucracy. It also wants to push ahead with the banking and Capital Markets Union. The party is also calling for a “European resilience strategy” that reduces geo-economic risks and brings key industries back to Europe. The SPD is considering local content rules and localization obligations.
Greens: The Greens want to drive forward industrial policy across Europe by means of green lead markets. For example, public contracts should include a minimum quota for green steel. In order for the EU to also benefit economically from climate action measures, the Greens also believe that more financial power is needed at the European level. The EU budget should be strengthened through new own resources, for example through a tax on digital companies. Financing via European bonds is also not taboo for the Greens.
FDP: The FDP is strongly committed to reducing bureaucracy. The EU Commission is now the main source of bureaucracy. The party is therefore calling for a “strict ban on gold plating,” meaning that European directives should not be subject to additional regulations at the national level. The FDP wants to abolish reporting obligations, particularly on taxonomy, CSRD, and the Supply Chain Directive. jaa
Trade policy: ‘Balanced’ or ‘as much as possible’?
CDU/CSU: The CDU/CSU is calling for the Mercosur agreement to enter into force quickly. The Christian Democrats also want to conclude more trade agreements and reduce dependence on China. Foreign and development policy should be more closely aligned with Europe’s economic interests.
SPD: For the SPD, agreements such as the one with Mercosur are “important milestones”, but meeting social and environmental standards is important. In the future, such agreements should be “simplified and concluded more quickly”.
Greens: The Greens are committed to “balanced partnerships” that meet high ecological standards. They also defend the EU’s Supply Chain Directive. In order to achieve faster negotiation success, trade agreements should be less comprehensive and instead focus on a few sectors. The EU must also do more to combat Chinese overproduction.
FDP: The FDP sounds similar with regard to overproduction from China. In addition, the “flood of illegal cheap products from China should be combated throughout Europe”. The party also calls on the EU to “conclude as many free trade agreements as possible”. jaa
Climate and energy: Emissions trading and climate money
CDU/CSU: European emissions trading (ETS) is to be expanded to become the leading instrument for climate protection and the revenues returned to consumers and the economy. For biomethane and hydrogen, the CDU/CSU is aiming to blend into the gas grid, although the new Gas Market Regulation only provides for this as a last resort for promotion.
SPD: The SPD is calling for a paradigm shift in climate policy, but is hardly making any new proposals. The climate club, climate money, and municipal heat planning are already familiar. At the Commission, it wants to ensure that more energy-intensive industries benefit from electricity price compensation. The Social Democrats want to create sufficient storage capacity for hydrogen, for example as a national reserve. They are also campaigning for an EU raw materials strategy.
Greens: The Greens also want to use the climate money to make climate action more socially just, but also advocate comprehensive subsidy programs, for example for EVs and house renovation.
FDP: The FDP is questioning Germany’s statutory climate neutrality target for 2045. It wants to use EU emissions trading to reverse further climate regulations, including the CO2 fleet regulation. The FDP wants to abolish the electricity tax and successively also the minimum rates for the energy tax on heating and fuels. Only the CO2 price should remain. ber/luk
Digitalization: Nothing concrete
CDU: The CDU/CSU is relying on “sovereign AI and cloud applications” to drive forward the reindustrialization of the country. It wants to set up a federal digital ministry and digitalize processes. For example, it wants to implement a digital citizen account and set up a secure digital identity with its own mailbox for dealing with authorities. This should also be eIDAS-compatible, which is already required by EU law.
SPD: The party emphasizes that it wants to oppose discrimination in digital spaces by right-wing populists and other forces. It also wants to ensure “equality between creation and technology and fair remuneration rules” in the regulation of digital platforms and artificial intelligence.
Greens: First of all, the Greens emphasize that Europe must catch up in terms of digitalization. Then they also announce that they want to make public administration more digital for citizens and companies. Finally, they want to reduce waste with a digital EU product passport.
FDP: The FDP wants to drive digitization everywhere – right up to the digital euro, although its use should be “voluntary”. A central digitalization ministry is to take control. vis
Security and defense: More money for the Bundeswehr
CDU/CSU: NATO’s two percent target only represents the “lower limit” of defense spending for the Union. The aim is to create a single market for military equipment with common export rules. Manufacturers’ access to financing should not be hindered by ESG criteria.
SPD: The SPD also advocates defense funding of “at least two percent” of GDP. It also advocates a European defense union in which “we make coordinated investments and organize our armed forces in partnership”. The SPD is also “clearly” committed to supporting Ukraine, but warns against embarking on “dangerous adventures” with regard to Merz.
Greens: Even the Greens advocate a defense budget of “significantly more than 2 percent in the long term”. At both national and European levels, investments should be financed through higher borrowing. The EU states need financial incentives and the political will to put national industrial policy interests at the service of greater common security. At the same time, the Greens insist on a common but restrictive arms export policy.
FDP: The Liberals demand that Germany at least meets the 2% target. The formulation of wanting to achieve even three percent in the long term was removed from the final draft. The Bundeswehr is to become “the strongest conventional armed force in Europe”. The FDP also supports the prospect of Ukraine joining the EU and NATO. tho
Migration: Tone is getting sharper
CDU/CSU: The CDU/CSU wants to immediately enforce a “de facto admission ban” and turn back asylum seekers at Germany’s borders. It also wants to drastically reduce the number of people entitled to protection by abolishing subsidiary protection status. Anyone who applies for asylum in Europe should be transferred to a safe third country, undergo an asylum procedure there and, if the outcome is positive, remain there. The CDU/CSU only wants to accept refugees within the framework of quotas.
SPD: For the SPD, on the other hand, the Common European Asylum System (CEAS) is the key to managing and organizing migration. The EU’s external borders should be better controlled, but there should be no pushbacks. The SPD rejects the third-country solution.
Greens: The party insists: “The right to a case-by-case examination and the principle of non-refoulment apply always and everywhere.” Asylum applications must be examined within the EU – third-country procedures cost a lot of taxpayers’ money and would fail in court. The Greens prefer migration agreements that enable legal migration routes and at the same time provide for the return of rejected asylum seekers.
FDP: Those who do not meet the requirements for residence in Germany should not be able to enter Germany permanently in the first place, the Liberals demand. The role of Frontex in protecting the external borders should be strengthened. The EU should also negotiate migration agreements to promote the willingness of countries of origin to take back migrants. tho
EU enlargement and reform: A consensus on paper
CDU/CSU: The accession of Ukraine, Moldova, and the Western Balkan countries is in the EU’s security policy interests – the four parties are largely in agreement on this. The candidate countries should be brought closer to the EU via intermediate stages. There should be no compromises on the accession criteria. The CDU/CSU sees a need for reform of the EU institutions, without being specific. The Commission should take more consistent action against violations of the rule of law.
SPD: A reform of the European treaties must take place at the latest with EU enlargement, demands the SPD. In particular, this includes abandoning the principle of unanimity in the Council. It is also calling for stricter rule of law instruments.
Greens: The party is becoming more specific: Majority decisions are to be introduced in all policy areas; if necessary, groups of member states are to lead the way in a “coalition of the willing”, but remain open to all. The European Parliament is to be given the right to initiate legislation and some MEPs are to be elected via transnational lists in the future. Citizen participation is also to be expanded. The rule of law procedure under Article 7 of the EU Treaty is to be made more effective with the help of qualified majority decisions. The Greens’ vision remains a “Federal European Republic with its own constitution”.
FDP: The Free Democrats are calling for institutional reforms to increase the EU’s ability to act independently. Specifically, they are calling for qualified majority decisions in foreign and security policy, a reduction in the size of the Commission, and a right of initiative for the EU Parliament. tho
EU coordination: Chancellery should fix it
CDU/CSU: The Federal Chancellery should take on a stronger coordinating role in the future, writes the CDU/CSU. Germany should no longer abstain in key policy areas in the Councils. Chancellor candidate Merz also wants to achieve close coordination between Berlin, Paris, and Warsaw “on all relevant issues of foreign, security and European policy”.
SPD: The Social Democrats do not comment on coordination in the federal government. They emphasize the Franco-German partnership, which had suffered under Chancellor Scholz, as well as relations with Poland and the other EU Baltic Sea states. Cooperation with Great Britain, particularly in the area of defense, is emphasized.
Greens: “We reject national solo efforts and a permanent German Vote is harmful,” says the program – without making any concrete proposals. The Greens want to move the EU forward, particularly with France and Poland.
FDP: Not a word on EU coordination within the German government. Instead, the Liberals also advocate close cooperation with France, a strengthening of the Weimar Triangle with Poland, and deeper cooperation with the United Kingdom, particularly in matters of security and defense. tho
CSRD
EU-Erweiterung
European Defense
European policy
Translation missing.
Interview
New ECR leader: Morawiecki sees rapprochement with EPP
Mateusz Morawiecki will replace Giorgia Meloni as the head of the European political family ECR in mid-January.
Mr. Morawiecki, you will take over from Prime Minister Giorgia Meloni on Jan. 15. What would you like to change about the priorities of the political family?
Europe is not only losing the competitiveness of its industry, but also its values. My predecessor Giorgia Meloni created a strong foundation on which I can build. Specifically, I want to focus on challenging the European Commission and its over-bureaucratic approach in many sectors of the economy. We need to create a more dynamic, Schumpeterian environment for economic development. Europe is in a phase of stagnation or stagflation.
What specifically do you criticize about the EU?
There are currently three major deficits: illegal migration, the Green Deal, and too much bureaucracy. These three areas are a kind of ideology that runs counter to rational economic principles. Security should be the fundamental issue of the entire European Union. During my tenure as Prime Minister, Poland was one of the safest countries in Europe, perhaps even in the world. This is not the case in Sweden, France or Germany, where fears, unrest and disorder on the streets are often linked to illegal migration and other problems. We also need a renaissance of European industry. My plan is to create the label “Designed and Crafted in Europe” – as a European answer to “Make America Great Again” or “Made in China” under Xi Jinping.
Against the Green Deal
In the European Parliament, the EPP has recently been working together with the ECR on various issues. Are you pleased about that?
We are open to cooperation with all those who care about the future of Europe. If the EPP continues to cooperate more with left-wing groups, we will firmly oppose their agenda. However, I am pleased to see that the EPP is increasingly moving towards the ECR’s program. The ECR can cooperate with both the Patriots for Europe Group and the EPP. These three groups are close to forming a majority. Together we can create a coalition of common sense.
Where do you see differences to the EPP?
The biggest differences concern the Green Deal and illegal migration. I see that the EPP positions in these two areas are slowly changing. Nevertheless, factories are closing every day in Poland and other European countries.
There are 17 Polish MEPs from Donald Tusk’s Civic Platform in the EPP. Can the ECR work with them?
This makes the situation difficult indeed. The current Polish government is pursuing an extremely anti-democratic agenda. In Poland, we are trying to treat national issues as internal affairs. At European level, however, we are ready to cooperate with all those who have the good and future of the EU in mind.
Looking forward to Trump
How do you rate the start of the Trump administration?
I very much welcome the Trump administration. Europe and the US should work together. What we need now is a renaissance of the Western world, of Western civilization. Only a Europe with strong industry, a resilient military, and a vibrant economy can be a truly valuable partner for the US. At the same time, I see the threats from China and Russia. Russia is increasingly becoming a kind of junior partner to China, and both together pose a challenge to Western civilization.
Trump could strike a deal with Russia at the expense of Ukraine.
I hope that Trump will not stop supporting Ukraine. It would be a major setback for the status of the United States. I believe Trump will seek a compromise solution that includes strong support for Ukraine while seeking an agreement with the Kremlin. If these negotiations are not conducted in good faith, I am convinced that President Trump will support Ukraine with substantial arms shipments.
Presidential elections are coming up in Poland. If the PiS candidate wins: Will he have to continue blocking the Tusk government’s initiatives or seek an agreement with Donald Tusk?
Strictly speaking, Karol Nawrocki is not a PiS candidate. He was nominated by an independent committee that is not affiliated with any party. My party supports him. Nawrocki is a charismatic leader with a clear vision and a sense of reason and passion. I believe he is the right person to end the “Polish civil war”.
EVP
Feature
Ukraine: Balancing act for the EU and NATO ahead of Trump’s return
It’s a delicate balancing act: How can we adapt to Donald Trump without sending the wrong signals or anticipating what the future POTUS will actually do? Finding a way to do this is the difficult task that the new EU Council President António Costa has set himself for his first summit on Thursday, according to diplomats.
The same question is likely to have been on the agenda at Wednesday evening’s discreet meeting at the residence of NATO Secretary-General Mark Rutte. Trump has announced some things, but at the same time, he is seen as unpredictable. Setting the wrong course too early could take its toll.
Zelenskiy as Rutte’s guest
António Costa has invited Volodymyr Zelenskiy for the discussion on Ukraine on Thursday. The plan is more of a brainstorming session, not a decision. The Ukrainian President was already in Brussels the previous evening, initially alone for a rendezvous with Rutte. Zelenskiy wanted to discuss further support for his country there. However, security guarantees and other conditions in the event of a ceasefire, which Trump could force Ukraine to agree to, may also have been on the agenda.
German Chancellor Olaf Scholz, French President Emmanuel Macron, Italian Prime Minister Giorgia Meloni and other heads of state and government were due to join the small group at Rutte’s residence later on after a parallel dinner with the candidate countries of the Western Balkans.
Scholz expresses confidence in cooperation with Trump
Olaf Scholz came to Brussels with the clear intention of taking countermeasures in the face of public speculation about peace negotiations. Some were making the mistake of taking the third and fourth steps before the first, said the Federal Chancellor on his arrival for the meeting with the Western Balkan countries. Some were not concerned enough with the question of how Ukraine could be helped further: “It must be clear that we will support Ukraine for as long as necessary.” In any case, there should be no peace over the heads of the Ukrainians. And the country must not be subjected to a dictated peace.
Scholz also expressed confidence with regard to cooperation with the future US administration: During the talks with President Trump, it had become clear to him that it was possible to work together so that Ukraine would have good prospects.
Ukraine must become ‘indigestible’ for Russia
Not surprisingly, the newEU High Representative for Foreign Affairs Kaja Kallasmade a clear statement: The situation is that Russia does not want peace. Ukraine must therefore be supported as much as possible. The stronger Ukraine is on the battlefield, the stronger it will be at the negotiating table later on. Polish Prime Minister Donald Tusk’s statements went in a similar direction: It was now time for the entire West to believe in its own strength. Ukraine deserves a just peace, as well as respect for its territorial integrity.
However, speculation about peacekeeping troops and security guarantees will not die down any time soon. The best security guarantee is to arm Ukraine in such a way that it becomes “indigestible” for Russia, say diplomats. Then a scenario like the annexation of Crimea in 2014 could not happen again. However, this would hardly work without the USA.
The question of peacekeeping forces is unlikely to be decided in Brussels anyway, but in the national capitals. After all, the aid for Ukraine is fully financed until the end of 2025, in particular thanks to the windfall profits on Russian state bank funds. This is also underlined in the draft summit conclusions. Even Donald Trump cannot do much damage here.
More missile defense systems
Ukraine hasmajor deficits in protecting its infrastructure and energy supply, which is being bombed by Russia, diplomats said. This is a major problem for morale and resilience in Ukraine. More missile defense systems are needed. This is an area in which the Europeans are dependent on help from the USA. Europe would generally have to be prepared for the scenario that the USA no longer supplied ammunition, for example.
Moreover, Ukraine is not only lacking weapons, but increasingly also soldiers, diplomats said. However, the European partners do not want to get involved in the discussion about lowering the age for compulsory military service to 18. Ukraine must decide on this sensitive issue. Ultimately, it is a question of whether or not a generation should be sacrificed for the war.
Europapolitik
Translation missing.
News
Trio program: Council prioritizes foreign affairs and asylum
The next three Council presidencies want to strengthen the EU’s external relations and border protection inparticular. This emerges from the as-yet-unpublished eighteen-month program of Poland, Denmark, and Cyprus. The governments of the three member states will form the next trio presidency from January 2025 to June 2026, which will always have a joint program.
According to the ten-page document, the trio wants to prioritize two points:
EU engagement with global partners: Strategic partnerships should ensure the Union’s economic security, strategic autonomy, resilience, and technological leadership. Emphasis is placed on relations with the USA, but also with other economic areas such as Africa, Latin America, and South East Asia.
Border management and returns: The trio wants to prioritize “decisive action to protect and strengthen the EU’s external borders with all available means” and “work on exploring new ways to prevent and combat irregular migration movements to Europe”. It also intends to give priority to “facilitating, increasing, and accelerating returns”.
According to figures released by Eurostat on Wednesday, the number of people applying for asylum in the EU for the first time fell by 24 percent within a year in September – from 99,930 to 75,755 applications. ber
Asylpolitik
Autumn package: Commission warns of economic imbalances
Yesterday, Wednesday, the European Commission presented the second part of the fall package of the European Semester. In its Alert Mechanism Report, it identifies nine member states that are in a state of macroeconomic imbalance: Germany, the Netherlands, Greece, Cyprus, Italy, Hungary, Romania, Slovakia and Sweden.
The Commission also fears that this could now also apply to Estonia. The Brussels authority will deliver a detailed report for all ten member states in the spring.
Germany should spend less and invest more at the same time
While countries such as Romania have the problem that they combine a high trade deficit with high government deficits, the opposite is true for Germany. The Commission complains that Germany has too high a trade surplus, too high a savings rate, and too little investment. This is mainly due to German rules such as the debt brake, said an EU official. However, Germany is currently also getting in the way of EU debt rules.
While the Commission is complaining about Germany’s low level of public investment as part of its review of macroeconomic risks, it is also proposing a more restrictive spending path for Germany under the new EU debt rules than the German government had envisaged.
However, the Commission does not want to see any contradiction in this. “It is always a delicate balance,” said Economic Affairs Commissioner Valdis Dombrovskis. For 2025, the Commission expects higher public investment on average in the EU despite a slightly restrictive fiscal policy. He therefore refuses to accept the criticism of the EU debt rules: “In most cases, the new European economic governance framework gives Germany more fiscal leeway than the debt brake.”
Further education goals a long way off
As part of the European Semester, the EU Commission also published a report on employment in the EU (Joint Employment Report) on Wednesday. While the unemployment rate of 6.1 percent is pleasingly low by historical standards, other key figures in important areas fall short of the EU targets. Youth unemployment, for example, is stagnating at almost 15 percent.
There is also little movement in the area of further training. The EU had set itself the target that by 2030, the proportion of employees undergoing further training per year should be 60 percent. By 2025, the figure should be at least 50 percent. In 2022, the figure was 39.5 percent – an increase of just 2.1 percentage points compared to 2016.
Labor Commissioner and Vice-President Roxana Mînzatu said that the figures were not satisfactory. “We need a revolution, a new mindset for skills,” she said. Otherwise, the economic transformation and the necessary productivity growth could not be mastered. In March, she wants to present a “Union for Skills”. However, the Commission’s hands are largely tied, as it has little competence in education and labor market issues. jaa
EU-Schuldenregeln
Transformation
Occupational health and safety: Parliamentarians call for subcontractor restrictions
The Employment Committee in the European Parliament is planning an own-initiative report on combating subcontracting next year. Table.Briefings learned this from committee circles. Critics see long subcontractor chains as a problem when it comes to guaranteeing employee rights. Every time a contract is passed on, monitoring becomes more difficult.
In the plenary session on Wednesday, the ideas were welcomed across party lines. EPP politician Sérgio Humberto, for example, emphasized: “We should do what we can do.”The Portuguese politician stressed that the aim was to limit abusive contract awards so that there is fair treatment and equal opportunities.
Leading S&D politicians had already campaigned for a subcontractor law at the European level in the summer. Accordingly, S&D politician Gaby Bischoff also emphasized: “We have different laws on the subject. A little bit here, a little bit there. But we need to take a holistic approach to this complex system. We need our own legislative initiative at EU level.”
She referred to what she sees as the successful ban on contracts for work and temporary employment in the German meat industry: “The law is working. Companies continue to prosper and people have better working and living conditions.” Bischoff emphasized that the outsourcing of core activities must also be part of the law.
Mînzatu’s first appearance in plenary
Social Affairs Commissioner Roxana Mînzatu made her first appearance in plenary on Wednesday. She particularly emphasized the vulnerability of third-country nationals: “They are particularly often in subcontractor chains and can be even more exposed to unfair working conditions.” Third-country nationals are not yet part of the mandate of the European Labor Authority (ELA), which supports the monitoring of cross-border undeclared work. Members of the European Parliament would like to change this – and hope that the new Commission will tackle the issue.
Mînzatu also referred to existing instruments and laws at European level – such as the Supply Chain Act or the European Labor Authority (ELA). She again spoke out in favor of strengthening the authority. But she also passed the ball back to Parliament. “Dear MEPs, I am relying on your support to ensure that abusive subcontracting can be combated.” lei
Arbeitnehmerrechte
eDeclaration: Trade union questions invoice
The European Trade Union Confederation (ETUC) has sharply criticized the Commission’s estimate of cost savings through the eDeclaration. According to the ETUC, the first version of the Commission’s working document still stated that a European declaration portal and the standardized questionnaire on the posting of workers would result in savings of €1,414,000 – assuming that nine countries participate as announced. If all states were to participate, the savings would be “around €13,945,000”, ETUC quotes the first document.
These figures can no longer be found in the version published in November. It now states that the savings would be between €95 and €342 million – up to 25 times more than originally estimated. In addition, the current version of the document also refers to data from the VDMA in order to substantiate the estimate, according to the ETUC. The Commission itself explains in the working document that the VDMA figures are “based on German labor costs, which are above the EU average for hourly rates“.
Have the numbers been made to fit?
ETUC Deputy General Secretary Isabelle Schömann sharply criticized: “The enormous difference in the figures between these two documents raises serious questions about the credibility of the claims about the alleged benefits of deregulation.” She wonders whether the savings are really 25 times higher than the Commission’s original estimate. Or whether “unverified figures from a partisan source [were] selected at the last moment to suit an ideological deregulation drive?“
The trade unions are extremely critical of the eDeclaration, which has been slimmed down to around 20 questions. They fear that information required for inspections, such as a local contact person, will no longer be requested. The social costs of the eDeclaration would not be taken into account in the Commission’s calculation, according to the ETUC press release.
What is also striking is that the Commission service appears to refer to the costs of using external service providers for posting in the current working document. It states: “In the interviews conducted for the Commission, companies indicated that outsourcing the management of posting procedures to external service providers entails costs of between €90 and more than €1,000 per posting.” The Commission did not respond to a request by Table.Briefings on Wednesday. lei
Daten
EU-Binnenmarkt
Social policy
Wirtschaft
Work
R&D: European companies invest more
European companies invested significantly more money in research and development (R&D) in 2023. Expenditure rose by 9.8% in nominal terms, while it only increased by 5.9% in the USA and 9.6% in China. This is according to the latest Industrial R&D Investment Scoreboard, which the Commission publishes annually. Adjusted for inflation, however, the figures look different. The real growth in R&D expenditure was strongest in China in percentage terms and the percentage growth in the US is only just behind that in the EU.
The EU is also starting from a relatively low base. According to Eurostat, R&D expenditure in the USA accounts for more than 3.6% of gross domestic product (GDP), while the same figure in the EU is 2.2%. Even in absolute figures, the gap remains large. The top 2,000 companies worldwide invested a total of €1,257.7 billion in R&D in 2023. US companies accounted for €533.3 billion of this and companies based in the EU for €235.2 billion.
Big Tech invests the highest sums in R&D in the US
The difference is also evident when looking at the companies: For example,the leader Alphabet (Google) spent €39.98 billion on R&D, while Volkswagen, the European company with the highest research spending, invested €21.78 billion.
As the Draghi report emphasizes, the EU must significantly increase its investment in research and development in order to remain globally competitive. The report calls for a new European industrial policy that provides for annual investments of €750 to €800 billion, mainly from the private sector.
In the USA, it is the big tech companies Alphabet, Meta, Apple, and Microsoft that spend the most money on R&D, in Europe, it is the automotive sector. In 2023, 45.4 percent of global R&D investments were made by companies headquartered in the EU. European automotive companies thus invested more than twice as much as their competitors from the USA and Japan and more than three times as much as Chinese companies. vis
China
Poland: Second-largest electricity supplier announces coal phase-out by 2030
Poland’s second-largest electricity supplier Tauron Polska Energia wants to do without coal power by the end of the decade and become climate-neutral by 2040. This was reported by Bloomberg on Tuesday. The state-owned company plans to invest a total of €23 billion in grid infrastructure and renewable energies by 2035. In 2023, coal-fired power still accounted for 86 percent of Tauron Polska Energia’s electricity mix. According to analyses, Poland could be completely free of coal-fired power by 2032.
The country, which will take over the EU Council Presidency in January, is regarded as Europe’s cleantech hub. 60 percent of lithium-ion battery production in the EU comes from Poland. The country is the second-largest battery exporter in the world after China, according to a report published on Wednesday.
Warsaw is also far ahead in the expansion of renewables: in 2023, around €5 billion were invested in offshore wind turbines – the second-highest figure in the EU. Wind and solar energy generated 21 percent of Poland’s electricity last year, compared to 16 percent in the previous year. Investments in Poland’s transition to net-zero technologies amounted to €13 billion in 2023 – a third more than in the previous year and 20 times higher than in 2017. luk
Kohleausstieg
Hydrogen: Commission approves €3 billion for H2Global
The European Commission has approved the second funding round of the H2Global hydrogen support mechanism for Germany and the Netherlands. “In the spirit of the future ‘Clean Industry Deal’, this three billion euro German-Dutch scheme will help meet the growing demand for renewable fuels in the EU by supporting their development around the world,” said Commission Vice-President Teresa Ribera on Wednesday.
The scheme is intended to promote the development of electrolysis capacities of at least 1.875 gigawatts worldwide. The Netherlands intends to provide €300 million of the funding, with Germany contributing the remainder. However, it is unclear whether the German government will be able to provide its share. The funds are to come from the Climate and Transformation Fund (KTF).
The federal government intends to use the funding to cover the difference between the costs of purchasing and the income from tenders for industrial customers. In November, the Federal Ministry of Economic Affairs published the results of a market consultation on the second round of tenders. A year earlier, during a visit by King Willem-Alexander to North Rhine-Westphalia, Germany and the Netherlands had agreed to work together on the second tendering round. ber
Grüner Wasserstoff
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Executive Moves
Bruna Szego is to become head of AMLA, the EU’s new anti-money laundering authority. The European Parliament voted by a large majority in favor of the Italian’s appointment on Wednesday. Szego was previously head of the department for monitoring and regulating money laundering at the Italian central bank.
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Opinion
Migration agreement with Georgia: Germany must take a close look
By Sonja Schiffers and Kirsten Krampe
Sonja Katharina Schiffers heads the South Caucasus office of the Heinrich Böll Foundation in Tbilisi, Kirsten Krampe works on migration at hbs.
One year ago, on Dec. 19, 2023, Federal Minister of the Interior Nancy Faeser signed a migration agreement in Tbilisi together with her Georgian counterpart Vakhtang Gomelauri. The changed political situation in Georgia now requires a look at the objectives pursued by the agreement and a reassessment with regard to political persecution.
According to the German Ministry of the Interior, the migration agreement served as a “basis for permanently reducing irregular migration in the interests of both countries”. In 2023, Georgia was still of particular importance for asylum applications in Germany. In October 2023, for example, almost 9,000 Georgians applied for asylum in Germany. According to situation reports and decisions at the time, there was generally no threat of political persecution in Georgia. Accordingly, the recognition rate for asylum applications was 0.3 percent.
Georgia was classified as a safe country of origin in 2023
However, more decisive than the migration agreement for the repatriation of Georgian citizens were the resolutions of the German Bundestag on Nov. 16, 2023, and the Bundesrat on Dec. 15, 2023, according to which Georgia was classified as a safe country of origin. The Georgian government did everything it could to assist with the repatriation from Germany, as well as from other EU countries.
This was already the case before the country was classified as a safe country of origin and is probably explained by the good cooperation with the European Union and its member states at the working level until recently. The classification as a “safe country of origin” was therefore referred to almost with pride in government circles in Tbilisi – or perhaps out of political calculation in order to reject criticism from civil society of the government’s increasingly authoritarian course.
Focus on seasonal work
The intention to recruit urgently needed skilled workers in Germany from Georgia also came to nothing with the migration agreement. Years before the negotiations on the agreement, the Georgian side clearly pointed out that the emigration of skilled workers and the brain drain were not in the interests of the state and society in a country that was already small and heavily affected by emigration.
The collaboration therefore focused on circular migration, particularly of seasonal workers. The fact that Georgians are allowed to stay in Germany for 90 days without a visa made the pilot project quickly viable: In 2021, the first agricultural workers traveled to selected farms throughout Germany. In 2022, 1231 Georgians received a work permit for seasonal work in Germany, despite some bad press about the working conditions. In 2023, this number rose slightly to 1269.
Migration agreement offers further opportunities
Many things could be conceived and developed within the framework of the agreement, which promises training and cooperation in other areas. Cooperation in the healthcare sector could be expanded, perhaps incubation cooperation between start-ups. What was important for the Georgian side was the future of its young population in the country itself. But what future is there now?
The political climate in Georgia is currently extremely tense. Prime Minister Irakli Kobakhidze, who remained in office after elections that were neither fair nor free, announced in November that Georgia would not seek to enter into EU accession talks until 2028. This is seen by many Georgian citizens as a deliberate renunciation of European integration, a rapprochement with Russia, and a fundamental breach of Article 78 of the Georgian constitution, which obliges all state bodies to promote European integration.
Government increasingly suppresses critical voices
Although pro-European mass demonstrations have been violently suppressed in recent weeks, thousands of people gather daily in Tbilisi and other major cities to protest. The Georgian Dream party, which remains in power, is pursuing a policy that increasingly suppresses independent voices. Activists, journalists, opposition politicians, and especially the large number of courageous state employees who speak out critically are the targets of intimidation, threats, and physical violence.
Kobachidze also wants to “eradicate liberal fascism“. In the new year, the adopted “agent law” and anti-LGBTQI legislation could be enforced, which could mean heavy fines and even prison sentences, especially for those working in civil society organizations and the media.
The classification as a safe country of originlegitimizes the increasingly repressive government policy, say activists in Tbilisi. If political persecution continues to grow and discrimination against minorities such as LGBTQI people increases, Georgia’s status as a safe country of origin must be reconsidered in Berlin.
