In a video call on Monday, US President Joe Biden and the leaders of France, Germany, and the United Kingdom reaffirmed their determination to continue to hold Russia accountable for its “unprovoked and unjustified invasion of Ukraine”, the White House said in a statement. US Secretary of State Antony Blinken is also considering an import ban on Russian oil, while the German government continues to reject this. Nevertheless, there will be restrictions on the German oil market – Shell has announced that it will restrict short-term deliveries of heating oil and other petroleum products at some trading points. Manuel Berkel analyzes why an oil embargo depends on the political will of Saudi Arabia.
After yesterday’s third round of negotiations between Ukraine and Russia also failed to produce any major successes, Russia might propose a date for a fourth round of talks today, according to Leonid Sluzki’s statement on Russian state television yesterday. According to the Reuters news agency, 406 civilians have died so far as a result of the attack by Russian troops, and the humanitarian situation is catastrophic.
The EU’s severe confrontation with Russia must not lead to compromises on EU climate policy, according to EU Commission Vice President Frans Timmermans. “I think it would be a historic mistake to conclude from this security challenge that the Green Deal and Fit for 55 may now be deprioritized,” Timmermans said. Lukas Scheid analyzes what the war means for the Green Deal.
During the COVID-19 pandemic, the European health framework proved to be inadequate. To remedy this, the EU Commission has adopted a proposal for a legislative package to create a European Health Union. In today’s guest article, Anne Bucher, former Director General for Health and Food Safety at the European Commission and now a non-resident fellow at the European think tank Bruegel, discusses what tasks the European Health Union should fulfill – should it be limited to crisis prevention or rather have a broader public health approach?
The oil giant Shell has informed traders in Germany that short-term deliveries of heating oil and other petroleum products may be restricted at some trading centers. As Bloomberg reports, Shell wants to secure its obligations under long-term contracts in this way. It is the latest reaction to rising demand on the markets in the face of discussions about a possible embargo on Russian oil exports.
On Sunday, US Secretary of State Antony Blinken said the US was talking with European allies about ways to enforce a halt to Russian oil deliveries. A decision has not yet been made, Washington said yesterday. “But if it happens, it will probably only be the United States.”
The German government reiterated its negative stance. Chancellor Olaf Scholz said that the government has been working at full speed for months to develop alternatives to Russian energy. “However, this cannot be done overnight. That’s why it’s a conscious decision on our part to continue to pursue the activities of commercial enterprises in the area of energy supply with Russia.”
Late Monday night, Russia’s Deputy Prime Minister Alexander Novak warned of an oil price of more than $300 per barrel (159 liters) if the US and EU ban imports from Russia. Such a move would have disastrous consequences for the world market, Nowak said in a video on state television.
Russia could cut off natural gas supplies to Germany via the Nord Stream 1 pipeline, according to Nowak. An “embargo on gas transport through the Nord Stream 1 gas pipeline” would be justified in light of the “unfounded accusations against Russia regarding the energy crisis in Europe and the ban on Nord Stream 2,” the video continues. “But so far, we have not decided that.”
An oil embargo against Russia could probably only be enforced by the political will of Saudi Arabia. “We have more diverse sources of supply for oil than for gas. But to ship sufficient quantities of crude oil and oil products quickly, we would need a larger supplier, and that would be Saudi Arabia,” said Jacopo Maria Pepe of the German Institute for International and Security Affairs (SWP) in an interview with Europe.Table.
“I am confident that the EU will be able to buy new oil volumes within six months,” Pepe said while making clear that a possible expansion of Saudi production volumes is a political issue. “So far, Saudi Arabia is sticking to the agreement with Russia to expand production volumes only in a coordinated manner. However, the Saudis could have an interest in filling an emerging market gap and taking market share from the Russians.” However, Russia’s entanglements in Middle East security policy would militate against this. Moreover, if the sanctions against the Saudi competitor Iran were to fall, Tehran could once again export oil to the West.
Therefore, the replacement of Russian oil supplies is subject to many geopolitical uncertainties. In Pepe’s view, the EU could bridge the six-month period until Saudi Arabia steps in with its oil reserves. The question, however, is whether the community of states is betting its strategic reserves on new supplies.
The petroleum industry in Germany has already initiated the reduction of Russian imports, a spokesman for the En2X association said in response to a question. This applies to both crude oil and petroleum products, primarily diesel. “Last year, 34 percent of the crude oil processed in Germany came from Russia. Replacing such a large amount of energy in a short time is extremely challenging and not completely feasible.”
Two-thirds of Russia’s imported crude enters eastern Germany via the Druzhba pipeline to refineries in Leuna and Schwedt, while the rest reaches the entire country by sea. “In the case of eastern Germany, there is the option of a replacement supply of crude oil via Baltic ports, but with limited capacity,” the En2X spokesman said. According to Pepe of SWP, capacity at the ports in Rostock and Gdansk would have to be free for this.
How the EU can reduce its dependence on Russian energy supplies is the subject of a Commission communication to be presented today at 3:30 p.m. (Europe.Table reported). Among other things, specifications for the minimum filling of natural gas storage facilities are expected by the fall.
On the exchanges, this is already leading to a price reversal. For deliveries up to September, prices on Monday for the TTF trading point were over €200 per megawatt-hour each month, but for January – when demand usually is expected to be high – they were only €140. with rtr, dpa
The Green Deal has become a security policy task. That was the analysis nearly everyone agreed on in light of the war in Ukraine when Executive Vice President Frans Timmermans came to the Environment, Public Health and Food Safety (ENVI) Committee to exchange views Monday. “The only way not to be pressured because you are Putin’s customer is to stop being his customer,” the Green Deal commissioner said, promising to present the relevant tools on Tuesday. The Commission will then explain in a communication how the EU can reduce its energy dependence on Russia (Europe.Table reported).
Some parliamentarians hope that an embargo on Russian oil imports will also be one of the instruments. Swedish Renew MEP Emma Wiesner demanded that deliveries from Russia should be stopped, but not in a year’s time, but today. Tiemo Wölken (S&D) called on Timmermans to examine the feasibility of an embargo.
Bas Eickhout of the Greens, on the other hand, wants the targets of the Fit for 55 package to be revised and raised to increase effectiveness, for example, through the Energy Efficiency Directive. Peter Liese (EPP) takes a similar view and called for the ambition level for renewable expansion (RED III) to be raised to 45 percent renewable share by 2030. The Commission had proposed 40 percent. Such cross-party agreement to raise the ambition level of the Green Deal and to accelerate its implementation is new and, despite a few opponents in the Parliament, should ensure even more commitment to the Fit for 55 package.
EU Commissioner Timmermans welcomed calls for higher targets. And a draft of the final declaration of the informal EU summit, which will be held in Versailles on Thursday and Friday, also talks about “accelerating the development of renewable energies and the production of their key components, as well as streamlining approval procedures for energy projects”. Also in the draft: improving the interconnectivity of European electricity and gas networks and harmonizing them with each other.
However, Peter Liese also emphasized that additional compromises would have to be made in the short term. This would include considering whether coal-fired power plants and, in particular, nuclear power plants in Germany would have to be extended. For the next two to three years, this would help to be more independent of Russian gas, Liese said.
Pointing the finger at those countries that rely on gas as a bridging technology during the energy transition, Timmermans also demanded that this was not needed and that the transition should instead be made directly to renewables. He also believes that coal-fired power plants should be allowed to run longer if necessary.
In some countries, initial measures have already been taken to achieve this. Italy plans to replace about half of its current gas imports from Russia with other sources by the middle of the year. This is what the Minister for Ecological Transition, Roberto Cingolani, told Italian state television. Italy imports more than 90 percent of its natural gas. Last year, Russian gas accounted for about 40 percent of those imports.
And even the traffic light government in Berlin is changing their tune. Whereas just a few weeks ago, the FDP was rather reluctant to invest large sums in moving away from fossil fuels, now the focus is on promoting so-called “freedom energies”, as Finance Minister Christian Lindner has come to call renewables. By 2026, the German government plans to invest around €200 billion in climate protection, the expansion of charging infrastructure, hydrogen technologies, and the decarbonization of industry via the new Climate and Transformation Fund (KTF).
The reason for the change of heart among the liberals is also the realization that independence from Russia is only possible with low-CO2 technologies. In addition, as was heard from the Ministry of Finance on Monday, it should be possible to raise the money without incurring additional debt. An important aspect for the FDP. With reserves from the Energy and Climate Fund (EKF) of the old federal government and higher estimated proceeds from the European Emissions Trading System (ETS), security of supply and climate protection are to be financed for the next four years.
EU Commissioner Timmermans promised Monday that the Commission would do its part to issue permits and offer the opportunity to spend that money, as it is responsible for reviewing and approving certain national legislation. Such processes need to be accelerated now more than ever, he explained, to ultimately drive the energy transition and the move away from fossil fuels.
The use of biogas could also be accelerated. Five percent of Russian gas imports could be immediately replaced by biogas, Horst Seide, president of the Biogas Association, said on Monday. For that to happen, however, the cap on government subsidies for biogas plants under the Renewable Energy Sources Act would have to be lifted. In addition, a faster expansion of biogas plants across Europe could further reduce dependence on Russian natural gas.
An additional 35 billion cubic meters of “green gas” could be produced in Europe by 2030, said Harmen Dekker, chairman of the European Biogas Association. That’s already two-thirds of Nord Stream 2’s capacity, a target the EU Commission will also present today in its communication on energy prices. The draft EU summit declaration also mentions biogas as an option for energy diversification. With dpa/rtr
The prices for oil and gas are climbing to ever-new record levels, while at the same time, many companies are losing business with Russia and Ukraine. At the informal summit in Versailles on Thursday and Friday, the EU heads of state and government will discuss how the European economy can be supported in the face of the new crisis.
Among the options are new instruments financed by joint bonds. Even traditionally reticent member states like the Netherlands do not reject this path in principle: “We are open to the idea, but we are also not saying: Yes, of course,” said Finance Minister Sigrid Kaag in an interview with Europe.Table and some other media.
It is first the task of the EU Commission to gather facts and present a proposal, says Kaag: “We need criteria to be able to evaluate whether and under what circumstances the existing instruments are sufficient.” Does one consider only the dependencies of individual states and their industries on oil and gas? Or does one take into account how severely individual sectors are affected by the breakdown of import and export relations?
After all, not all countries are equally affected, Kaag said. On the one hand, Eastern European countries such as Poland have to take in enormous numbers of refugees from Ukraine, while at the same time, the economic consequences of the conflict hit them particularly hard. “We have to do what we can to cushion the impact,” said the politician from the left-liberal D66 party. This is a question of solidarity and political principles.
However, the government in The Hague, like Germany and other states, prefers to use the existing instruments first – in particular the €723 billion Reconstruction and Resilience Facility. So far, the EU Commission has disbursed only a small portion of the funds financed through EU bonds to the member states; moreover, the loans from the ARF have hardly been used. The EU is therefore well positioned to counter a new shock, argues an EU diplomat.
France and other countries, on the other hand, are calling for a new edition of the crisis instrument. However, it is not yet clear how much President Emmanuel Macron will push for this at the summit in Versailles. The draft final declaration does not mention a new debt instrument so far. “Our national fiscal policies will take into account investment needs and the new geopolitical situation,” says the paper, which is available to Europe.Table. A balanced budget policy must ensure the sustainability of public debt as well as promote investment in the future.
The heads of state and government will also discuss a reform of the Stability and Growth Pact in Versailles. Governments are largely in agreement that the rules should be simplified and made more enforceable, and there is also broad support for abandoning the rigid one-twentieth rule for debt reduction. Instead, member states could be given more leeway under the ARF model to implement medium-term consolidation plans.
But what is disputed is whether governments should be able to exclude certain investments in climate protection or even defense from their deficits. “We are willing to look at the proposals. But we are not convinced,” Kaag said. There is a risk of losing transparency and seriousness in debt reduction.
German Finance Minister Christian Lindner (FDP) was also critical of such a “golden rule”. However, the issue is gaining new momentum in the wake of Russian aggression. In the draft summit declaration, the member states commit to “substantially increase” their defense spending. Russia’s war of aggression represents “a tectonic shift in European history.” But some countries do not have the financial leeway to do so, Kaag acknowledged.
The minister was open to a temporary relaxation of the state aid rules, as the Commission is currently examining. A temporary aid framework could ensure comparable conditions for support in the member states. “On the other hand, we need to know for which sectors and companies,” said Kaag. She has not yet seen details of the Commission’s proposal.
Another demand from the planned Versailles summit declaration, on the other hand, is likely to cause more controversy: According to the draft, the heads of state and government are to commit themselves to a “drastic reform” of the approval of IPCEI investment projects under state aid law. Paris, in particular, is pushing for a relaxation of state aid controls beyond the chip industry to be able to promote investments in strategic technologies. Kaag initially declined to comment on this. According to diplomats, however, the Netherlands and some other northern European countries firmly oppose this.
In a video call on Monday, US President Joe Biden and the leaders of France, Germany, and the United Kingdom reaffirmed their determination to continue to hold Russia accountable for its “unprovoked and unjustified invasion of Ukraine”, the White House said in a statement. US Secretary of State Antony Blinken is also considering an import ban on Russian oil, while the German government continues to reject this. Nevertheless, there will be restrictions on the German oil market – Shell has announced that it will restrict short-term deliveries of heating oil and other petroleum products at some trading points. Manuel Berkel analyzes why an oil embargo depends on the political will of Saudi Arabia.
After yesterday’s third round of negotiations between Ukraine and Russia also failed to produce any major successes, Russia might propose a date for a fourth round of talks today, according to Leonid Sluzki’s statement on Russian state television yesterday. According to the Reuters news agency, 406 civilians have died so far as a result of the attack by Russian troops, and the humanitarian situation is catastrophic.
The EU’s severe confrontation with Russia must not lead to compromises on EU climate policy, according to EU Commission Vice President Frans Timmermans. “I think it would be a historic mistake to conclude from this security challenge that the Green Deal and Fit for 55 may now be deprioritized,” Timmermans said. Lukas Scheid analyzes what the war means for the Green Deal.
During the COVID-19 pandemic, the European health framework proved to be inadequate. To remedy this, the EU Commission has adopted a proposal for a legislative package to create a European Health Union. In today’s guest article, Anne Bucher, former Director General for Health and Food Safety at the European Commission and now a non-resident fellow at the European think tank Bruegel, discusses what tasks the European Health Union should fulfill – should it be limited to crisis prevention or rather have a broader public health approach?
The oil giant Shell has informed traders in Germany that short-term deliveries of heating oil and other petroleum products may be restricted at some trading centers. As Bloomberg reports, Shell wants to secure its obligations under long-term contracts in this way. It is the latest reaction to rising demand on the markets in the face of discussions about a possible embargo on Russian oil exports.
On Sunday, US Secretary of State Antony Blinken said the US was talking with European allies about ways to enforce a halt to Russian oil deliveries. A decision has not yet been made, Washington said yesterday. “But if it happens, it will probably only be the United States.”
The German government reiterated its negative stance. Chancellor Olaf Scholz said that the government has been working at full speed for months to develop alternatives to Russian energy. “However, this cannot be done overnight. That’s why it’s a conscious decision on our part to continue to pursue the activities of commercial enterprises in the area of energy supply with Russia.”
Late Monday night, Russia’s Deputy Prime Minister Alexander Novak warned of an oil price of more than $300 per barrel (159 liters) if the US and EU ban imports from Russia. Such a move would have disastrous consequences for the world market, Nowak said in a video on state television.
Russia could cut off natural gas supplies to Germany via the Nord Stream 1 pipeline, according to Nowak. An “embargo on gas transport through the Nord Stream 1 gas pipeline” would be justified in light of the “unfounded accusations against Russia regarding the energy crisis in Europe and the ban on Nord Stream 2,” the video continues. “But so far, we have not decided that.”
An oil embargo against Russia could probably only be enforced by the political will of Saudi Arabia. “We have more diverse sources of supply for oil than for gas. But to ship sufficient quantities of crude oil and oil products quickly, we would need a larger supplier, and that would be Saudi Arabia,” said Jacopo Maria Pepe of the German Institute for International and Security Affairs (SWP) in an interview with Europe.Table.
“I am confident that the EU will be able to buy new oil volumes within six months,” Pepe said while making clear that a possible expansion of Saudi production volumes is a political issue. “So far, Saudi Arabia is sticking to the agreement with Russia to expand production volumes only in a coordinated manner. However, the Saudis could have an interest in filling an emerging market gap and taking market share from the Russians.” However, Russia’s entanglements in Middle East security policy would militate against this. Moreover, if the sanctions against the Saudi competitor Iran were to fall, Tehran could once again export oil to the West.
Therefore, the replacement of Russian oil supplies is subject to many geopolitical uncertainties. In Pepe’s view, the EU could bridge the six-month period until Saudi Arabia steps in with its oil reserves. The question, however, is whether the community of states is betting its strategic reserves on new supplies.
The petroleum industry in Germany has already initiated the reduction of Russian imports, a spokesman for the En2X association said in response to a question. This applies to both crude oil and petroleum products, primarily diesel. “Last year, 34 percent of the crude oil processed in Germany came from Russia. Replacing such a large amount of energy in a short time is extremely challenging and not completely feasible.”
Two-thirds of Russia’s imported crude enters eastern Germany via the Druzhba pipeline to refineries in Leuna and Schwedt, while the rest reaches the entire country by sea. “In the case of eastern Germany, there is the option of a replacement supply of crude oil via Baltic ports, but with limited capacity,” the En2X spokesman said. According to Pepe of SWP, capacity at the ports in Rostock and Gdansk would have to be free for this.
How the EU can reduce its dependence on Russian energy supplies is the subject of a Commission communication to be presented today at 3:30 p.m. (Europe.Table reported). Among other things, specifications for the minimum filling of natural gas storage facilities are expected by the fall.
On the exchanges, this is already leading to a price reversal. For deliveries up to September, prices on Monday for the TTF trading point were over €200 per megawatt-hour each month, but for January – when demand usually is expected to be high – they were only €140. with rtr, dpa
The Green Deal has become a security policy task. That was the analysis nearly everyone agreed on in light of the war in Ukraine when Executive Vice President Frans Timmermans came to the Environment, Public Health and Food Safety (ENVI) Committee to exchange views Monday. “The only way not to be pressured because you are Putin’s customer is to stop being his customer,” the Green Deal commissioner said, promising to present the relevant tools on Tuesday. The Commission will then explain in a communication how the EU can reduce its energy dependence on Russia (Europe.Table reported).
Some parliamentarians hope that an embargo on Russian oil imports will also be one of the instruments. Swedish Renew MEP Emma Wiesner demanded that deliveries from Russia should be stopped, but not in a year’s time, but today. Tiemo Wölken (S&D) called on Timmermans to examine the feasibility of an embargo.
Bas Eickhout of the Greens, on the other hand, wants the targets of the Fit for 55 package to be revised and raised to increase effectiveness, for example, through the Energy Efficiency Directive. Peter Liese (EPP) takes a similar view and called for the ambition level for renewable expansion (RED III) to be raised to 45 percent renewable share by 2030. The Commission had proposed 40 percent. Such cross-party agreement to raise the ambition level of the Green Deal and to accelerate its implementation is new and, despite a few opponents in the Parliament, should ensure even more commitment to the Fit for 55 package.
EU Commissioner Timmermans welcomed calls for higher targets. And a draft of the final declaration of the informal EU summit, which will be held in Versailles on Thursday and Friday, also talks about “accelerating the development of renewable energies and the production of their key components, as well as streamlining approval procedures for energy projects”. Also in the draft: improving the interconnectivity of European electricity and gas networks and harmonizing them with each other.
However, Peter Liese also emphasized that additional compromises would have to be made in the short term. This would include considering whether coal-fired power plants and, in particular, nuclear power plants in Germany would have to be extended. For the next two to three years, this would help to be more independent of Russian gas, Liese said.
Pointing the finger at those countries that rely on gas as a bridging technology during the energy transition, Timmermans also demanded that this was not needed and that the transition should instead be made directly to renewables. He also believes that coal-fired power plants should be allowed to run longer if necessary.
In some countries, initial measures have already been taken to achieve this. Italy plans to replace about half of its current gas imports from Russia with other sources by the middle of the year. This is what the Minister for Ecological Transition, Roberto Cingolani, told Italian state television. Italy imports more than 90 percent of its natural gas. Last year, Russian gas accounted for about 40 percent of those imports.
And even the traffic light government in Berlin is changing their tune. Whereas just a few weeks ago, the FDP was rather reluctant to invest large sums in moving away from fossil fuels, now the focus is on promoting so-called “freedom energies”, as Finance Minister Christian Lindner has come to call renewables. By 2026, the German government plans to invest around €200 billion in climate protection, the expansion of charging infrastructure, hydrogen technologies, and the decarbonization of industry via the new Climate and Transformation Fund (KTF).
The reason for the change of heart among the liberals is also the realization that independence from Russia is only possible with low-CO2 technologies. In addition, as was heard from the Ministry of Finance on Monday, it should be possible to raise the money without incurring additional debt. An important aspect for the FDP. With reserves from the Energy and Climate Fund (EKF) of the old federal government and higher estimated proceeds from the European Emissions Trading System (ETS), security of supply and climate protection are to be financed for the next four years.
EU Commissioner Timmermans promised Monday that the Commission would do its part to issue permits and offer the opportunity to spend that money, as it is responsible for reviewing and approving certain national legislation. Such processes need to be accelerated now more than ever, he explained, to ultimately drive the energy transition and the move away from fossil fuels.
The use of biogas could also be accelerated. Five percent of Russian gas imports could be immediately replaced by biogas, Horst Seide, president of the Biogas Association, said on Monday. For that to happen, however, the cap on government subsidies for biogas plants under the Renewable Energy Sources Act would have to be lifted. In addition, a faster expansion of biogas plants across Europe could further reduce dependence on Russian natural gas.
An additional 35 billion cubic meters of “green gas” could be produced in Europe by 2030, said Harmen Dekker, chairman of the European Biogas Association. That’s already two-thirds of Nord Stream 2’s capacity, a target the EU Commission will also present today in its communication on energy prices. The draft EU summit declaration also mentions biogas as an option for energy diversification. With dpa/rtr
The prices for oil and gas are climbing to ever-new record levels, while at the same time, many companies are losing business with Russia and Ukraine. At the informal summit in Versailles on Thursday and Friday, the EU heads of state and government will discuss how the European economy can be supported in the face of the new crisis.
Among the options are new instruments financed by joint bonds. Even traditionally reticent member states like the Netherlands do not reject this path in principle: “We are open to the idea, but we are also not saying: Yes, of course,” said Finance Minister Sigrid Kaag in an interview with Europe.Table and some other media.
It is first the task of the EU Commission to gather facts and present a proposal, says Kaag: “We need criteria to be able to evaluate whether and under what circumstances the existing instruments are sufficient.” Does one consider only the dependencies of individual states and their industries on oil and gas? Or does one take into account how severely individual sectors are affected by the breakdown of import and export relations?
After all, not all countries are equally affected, Kaag said. On the one hand, Eastern European countries such as Poland have to take in enormous numbers of refugees from Ukraine, while at the same time, the economic consequences of the conflict hit them particularly hard. “We have to do what we can to cushion the impact,” said the politician from the left-liberal D66 party. This is a question of solidarity and political principles.
However, the government in The Hague, like Germany and other states, prefers to use the existing instruments first – in particular the €723 billion Reconstruction and Resilience Facility. So far, the EU Commission has disbursed only a small portion of the funds financed through EU bonds to the member states; moreover, the loans from the ARF have hardly been used. The EU is therefore well positioned to counter a new shock, argues an EU diplomat.
France and other countries, on the other hand, are calling for a new edition of the crisis instrument. However, it is not yet clear how much President Emmanuel Macron will push for this at the summit in Versailles. The draft final declaration does not mention a new debt instrument so far. “Our national fiscal policies will take into account investment needs and the new geopolitical situation,” says the paper, which is available to Europe.Table. A balanced budget policy must ensure the sustainability of public debt as well as promote investment in the future.
The heads of state and government will also discuss a reform of the Stability and Growth Pact in Versailles. Governments are largely in agreement that the rules should be simplified and made more enforceable, and there is also broad support for abandoning the rigid one-twentieth rule for debt reduction. Instead, member states could be given more leeway under the ARF model to implement medium-term consolidation plans.
But what is disputed is whether governments should be able to exclude certain investments in climate protection or even defense from their deficits. “We are willing to look at the proposals. But we are not convinced,” Kaag said. There is a risk of losing transparency and seriousness in debt reduction.
German Finance Minister Christian Lindner (FDP) was also critical of such a “golden rule”. However, the issue is gaining new momentum in the wake of Russian aggression. In the draft summit declaration, the member states commit to “substantially increase” their defense spending. Russia’s war of aggression represents “a tectonic shift in European history.” But some countries do not have the financial leeway to do so, Kaag acknowledged.
The minister was open to a temporary relaxation of the state aid rules, as the Commission is currently examining. A temporary aid framework could ensure comparable conditions for support in the member states. “On the other hand, we need to know for which sectors and companies,” said Kaag. She has not yet seen details of the Commission’s proposal.
Another demand from the planned Versailles summit declaration, on the other hand, is likely to cause more controversy: According to the draft, the heads of state and government are to commit themselves to a “drastic reform” of the approval of IPCEI investment projects under state aid law. Paris, in particular, is pushing for a relaxation of state aid controls beyond the chip industry to be able to promote investments in strategic technologies. Kaag initially declined to comment on this. According to diplomats, however, the Netherlands and some other northern European countries firmly oppose this.
