Table.Briefing: Europe

Electricity price cap + European elections in 2024 + EU climate policy in the fall

  • Commission works on electricity price cap
  • Top candidates: competition for von der Leyen?
  • Outlook: The fall agenda of EU climate policy
  • Court of Auditors: EU institutions were operational despite Covid crisis
  • US premium for EVs could discriminate against European manufacturers
  • Poland seeks €1.32 trillion in WW2 compensation from Germany
  • Taiwan and Indo-Pacific on EU agenda
  • Digital diplomacy: new EU office in San Francisco
  • What’s cooking in Brussels: turmoil at the EESC
Dear reader,

France’s President Emmanuel Macron urged Europe to stand united in Paris yesterday. “We must not let Europe be divided by this war. European unity is key. The division of Europe was one of Russia’s aim of the war.” At the same time, he defended his willingness to maintain contact with Vladimir Putin: France will continue to talk with Russia in search of a peaceful solution, of course in consultation with NATO allies, he said.

The current energy prices fuel particular concern about the division of Europe. Experts from the European Commission now propose a new, multipart approach as an emergency measure against high electricity prices. In his analysis, Manuel Berkel looked at a document from the responsible Directorate-General for Energy, which is available to Europe.Table.

It will still be a while before the next elections in the European Parliament in 2024. But European parties already ask themselves questions, like who will be their top candidates. Particularly interesting will be the EPP candidates, write Markus Grabitz and Till Hoppe: There could be two very prominent female rivals.

My colleague Lukas Scheid also summarizes what is next for EU climate policy this fall: Not only are the trilogues on ETS reform and the introduction of the CBAM entering the decisive round (and they offer a lot of conflict potential). In addition, the UN Climate Change Conference will be held in Sharm el Sheikh, Egypt, in early November. The countries most affected by climate change are looking primarily to Europe – because the industrialized countries are not living up to their promise of climate funding.

Claire Stam’s culinary-political column today is about French soft cheese – and the future of the European Economic and Social Committee (EESC), which fears for its budget. Bon appétit!

Your
Leonie Düngefeld
Image of Leonie  Düngefeld

Feature

Commission works on electricity price cap

The EU Commission’s energy experts are in favor of a price cap on electricity generated from nuclear power, lignite and renewable energies. This would decouple these cheaper energy sources from the price of the electricity exchange, which is mostly set by more expensive gas-fired power plants, according to a non-paper from the responsible Directorate-General for Energy, which is available to Europe.Table. This would give member states financial leeway to relieve particularly vulnerable households.

The 23-page paper serves as a discussion basis for the Commission. The authority is currently working at full speed on proposals on how the EU can cope with the recent turbulence on the electricity markets in the short term. In parallel, it is preparing a legislative proposal for a new electricity market design by early 2023. Details on the electricity market design will be available after Ursula von der Leyen’s speech in the European Parliament on September 14. The EU energy ministers will address these issues at an extraordinary Council meeting on September 9.

The enormous price swings recently fueled the political discussion about intervention in the market. The ideas range from a general electricity price cap to the Iberian model and the Greek proposal to divide the market into renewable energy and fossil fuel suppliers.

Price cap, relief, power saving

The Commission’s energy experts are now proposing a modified approach. This idea is to prevent a price drop from causing a counterproductive increase in electricity and gas demand and thus posing a risk to energy security. The proposal involves three elements:

  • Saving electricity: Member states are to reduce their electricity consumption. The “mandatory reduction of gas consumption” from the gas-saving plan adopted by the EU member states at the end of July could serve as a model for this. According to the non-paper, this could be implemented through auctioning for industry and financial incentives for households. It is said to be particularly important to reduce peak loads.
  • A price cap on nuclear power, lignite, most renewables and, temporarily, hard coal: “This measure aims to reduce the impact of the price of the margin-determining technology on the electricity market (often gas-fired power plants) on the revenues of other generators with lower marginal costs,” the paper says. Countries that have already introduced similar measures, such as Spain and Italy, would then have to change their practices.
  • Relief for consumers: Member states are to be encouraged to use the generated revenues to support particularly vulnerable electricity consumers. This could be achieved through regulated tariffs, as in France, or through indirect aid, like in Germany. It would be conceivable to legally clarify that small and medium-sized companies could also benefit from regulated electricity prices.

Energy economist Lion Hirth praises this approach: It is “a big step forward in the debate,” says the Hertie School expert, even if “many details remain unclear”. The paper also discusses legal implementation. The authors believe it would be feasible to implement the emergency measures for the electricity market again as a binding Council regulation, as was already done with the gas conservation plan.

Help for critical industries

The extreme fluctuations on the electricity exchanges have further exacerbated the concerns in politics and the industry triggered by the gas crisis. A Commission representative indicated yesterday in the European Parliament’s Industry Committee that individual industrial sectors could be granted preferential access to gas in the event of a shortage.

“We are looking at the issue of critical industries that are currently not covered by the SoS regulation,” said DG Energy Deputy Director General Mechthild Wörsdörfer, as she explained the gas-saving plan to the industry committee. In the event of a gas shortage, member states would have to provide preferential treatment to previously protected customers. In addition to household customers, this could only include basic social services such as the health sector and small and medium-sized enterprises.

Wörsdörfer said that aluminum and fertilizer producers, among many other industries, have already been hit hard by the energy crisis. “We are looking at what these critical consumers need because our SoS regulation is not suited for crises like this,” the top German official said.

Doubts about cooperation between member states

But the deputy director general also urged to continue to save gas. From August to March, EU countries are to cut their gas consumption by 15 percent. According to Wörsdörfer, the Commission expects the first progress reports from member states in October.

The Chair of the Committee on Industry, Cristian Bușoi, criticized insufficient information and raised doubts about the member states’ willingness to cooperate. “It has not yet become clear to us how many member states want to implement this voluntary plan.” Countries that have not curbed gas consumption by the end of the year will find it hard to meet the 15 percent target, he said – even if gas saving becomes mandatory by the end of the year.

The reminders to stick to saving gas come shortly after positive news on gas storage facilities. On Wednesday, EU gas storage facilities reached an average capacity of 80 percent. However, MEP Jerzy Buzek (EPP) pointed out that the European Parliament had originally advocated a storage target of 90 percent. The gas savings target of 15 percent may also be too conservative, Buzek said.

German Minister of Economic Affairs, Robert Habeck (Greens), continues to urge the saving of gas. Yesterday, he presented plans for a fifth floating LNG terminal chartered by the German government. It is scheduled to begin operations in Wilhelmshaven in the fourth quarter of 2023 with a capacity of five billion cubic meters (bcm) per year. with Till Hoppe, Claire Stam

  • Energy
  • Energy policy
  • Energy Prices

Top candidates: competition for von der Leyen?

It’s a well-known fact that anyone who wants to hold a high office in politics should not stick their head out too early. So it is no surprise that Ursula von der Leyen has so far kept a low profile about whether she wants to run for a second term after the European elections in 2024. But hardly anyone doubts that the incumbent Commission President would like to be elected a second time.

However, it is by no means certain that the Christian Democratic family of parties, the EPP, will actually ask her for her opinion. And that is even though von der Leyen’s political home is the CDU/CSU. Her relationship with Manfred Weber is sour. The CSU politician, who chairs the largest group in the parliament and has also headed the party at the EU level since May, considers asking EU Parliament President Roberta Metsola to be his top candidate. This was confirmed to Europe.Table by several sources from the EPP. Weber declined to comment on the matter.

The frustration of 2019 still runs deep among the European parties. French President Emmanuel Macron had exploited the discord between the EPP, the PES and the Greens and pushed von der Leyen as Commission President, even though she had not even run for the Strasbourg Parliament. Top candidate Weber claimed the key post in Brussels as the election winner, but he failed to win a majority in the European Parliament and the Council. Macron was not the only one to snub Weber.

Party families must pull together

For decades, the heads of state and government had largely decided among themselves who would head the Commission. But then the European Parliament won a say in the matter. CDU string-puller Elmar Brok also ensured that the “election of a top candidate” was enshrined in the EPP statutes.

It is still open whether the party families will once again nominate Europe-wide top candidates, like in 2014 and 2019. The EPP is certainly planning to do so, but sees the ball in the court of the other party families first. Social Democrats, Liberals and Greens are also in favor of the model, which is intended to give the Commission President democratic legitimacy. “In the Future Conference, we advocated for the top candidate model and transnational lists to be institutionally anchored through a convention,” says Nicola Beer, Vice President of the European Parliament. Now it is up to von der Leyen to take a position on this, she adds.

Reinhard Bütikofer, party leader of the European Greens from 2012 to 2019, also supports the model: “The leading candidate model has the potential to make the European elections more interesting and more democratic and European. It gives the party-politically different perspectives for Europe some memorable faces.” For the principle to work, however, the pro-European party families would have to agree to pull together prior to the elections. The head of the German Social Democrats in the European Parliament, Jens Geier, emphasizes: “The key to success lies with the party families. They must stand by their top candidate.”

European Socialists elect new leadership

The parties will choose their candidates for the 2024 election after the summer break in 2023. In a few weeks, the European Socialists will hold their party conference in Berlin and elect a new leadership. After that, the first indications could emerge. Frans Timmermans, the top candidate for 2019, is said to be no longer interested after his failure. He is rumored to want to move back into Dutch politics. There, a rallying movement headed by him is currently forming, which could take him into the national election campaign. Among the Socialists, Portugal’s Prime Minister Antonio Costa and the former Swedish head of government Stefan Löfven are considered possible candidates.

Among the Christian Democrats, von der Leyen and Metsola are probably the most likely candidates. Weber knows that he has no chance of moving into the top floor of the Berlaymont building. After the German von der Leyen, it would be the turn of another member state to provide the Commission president.

Weber would reportedly prefer Metsola. Not only is she considered charismatic and competent within the EPP, but the 43-year-old would also give the conservatives a younger, more modern face. The Maltese national is already using her new role quite skillfully: In early April, for example, she paid a high-profile visit to Volodymyr Zelenskiy in Kyiv – and thus beat von der Leyen to the punch, which is rumored to have upset her. This is a certain sign that the German sees the parliamentarian as a competitor.

Top candidates need support in parliament

But Metsola’s weakness is her lack of government experience. It is therefore doubtful whether she would get the necessary support from the circle of heads of state and government. Moreover, Malta is one of the smallest member states and has massive problems with the rule of law.

Von der Leyen, on the other hand, enjoys a lot of support among conservative heads of government, according to the EPP. CDU leader Friedrich Merz also supports his party colleague, even if he has little sympathy for her. In the EPP group, on the other hand, von der Leyen is apparently “not popular”. Especially not in the group of German CDU/CSU deputies. They accuse her of pursuing an excessively green agenda.

What has to happen for the top candidate model to work in 2024? Influential MEP Andreas Schwab (CDU) says: “To make it work next time, party families need to think together before the election about which top candidate can mobilize enough support in parliament after the election.”

Bütikofer takes a similar view: “The pro-European party families must communicate before the elections that they want to pull together to elect a top candidate for Commission president.” with Till Hoppe

  • European election 2024
  • European policy
  • Ursula von der Leyen

Outlook: the fall agenda of EU climate policy

ETS Reform: rebasing and LRF

The trilogue negotiations on the reform of the European Emissions Trading System (ETS) are gaining renewed momentum with the resumption of political activity in Brussels. Although negotiations officially began before the summer break, at the first meeting the co-legislators merely restated their positions (Europe.Table reported).

The topic will be what contribution the ETS will make to carbon reduction in the EU. The amount and timing of rebasing, i.e. the removal of unused allowances from the market, is still under debate. This will allow the steering effect of the ETS to unfold, as the price will rise and the decarbonization incentive will be strengthened.

Parliament initially wants to remove 70 million CO2 allowances from the market in 2024 and another 50 million in 2026. The usually more ambitious Parliament wants to raise the so-called linear reduction factor for the carbon cap (CAP) to 4.4 percent annually by 2026 and to 4.6 percent from 2029. This would reduce the ETS CAP by a total of 63 percent by 2030.

The Commission and the Council proposed raising the linear reduction factor from 2.2 percent to 4.2 percent from 2024 and reducing the CAP by 61 percent (around 117 million allowances) through a one-time removal. Although the positions are not far apart, an agreement on rebasing has already failed once in Parliament, which is why no concessions are likely to be made in the trilogue.

ETS 2: Who will pay the new carbon price?

However, the fiercest debates on ETS reform could revolve around the second ETS for road transport and building heating. In Parliament, the compromise was to separate commercial and residential use of fuels. Private households would remain exempt from the carbon price, but it would still apply to commercial use.

The Commission and Council do not envisage such a separation in ETS 2, nor do they consider it sensible. The German government also believes that all fossil fuels should be subject to a surcharge – similar to what is already done in Germany with the national Fuel Emissions Trading Act (BEHG).

The introduction date of ETS 2 and the social compensation for rising prices are also likely to cause debate. The Commission proposed 2026 for its introduction and launched a €72 billion social climate fund to provide relief for consumers who will be particularly affected. The member states want to postpone the introduction by one year and reduce the size of the fund to €59 billion. The Parliament even wants to introduce the trimmed-down ETS 2 for commercial use only in 2029, which would make social compensation unnecessary.

Schedule: The first technical meetings have already taken place. The next trilogue round at the highest level is scheduled for the second week of October. Negotiations on the ETS and CBAM (and also on the Social Climate Fund) should be wrapped up by COP27 in November. This timetable is unlikely to be met, given the sheer amount of work that still needs to be done.

Stakeholders: Peter Liese (Parliament Rapporteur), Pascal Canfin (Environment Committee Chairman), Frans Timmermans (EU Commission), Czech Council Presidency.

CBAM: What happens to free allocations?

Closely tied to the reform of the ETS is the introduction of a Carbon Border Adjustment Mechanism (CBAM), which, in the long term, is intended to replace free carbon emission allowances for the industry as a safeguard against carbon leakage.

The remaining key questions to be addressed include which industrial sectors CBAM will apply to and the rate at which CBAM will replace free allocations. In addition to the sectors proposed by the Commission (iron and steel, refineries, cement, basic organic chemicals and fertilizers), the Parliament demands that CBAM also cover organic chemicals, plastics, hydrogen and ammonia.

Representatives of the German industry demand that the industries themselves should decide whether they want to have the CBAM or continue to use free allocations as carbon leakage protection. The fear is that the new instrument will not be able to achieve its intended effect without an extensive trial phase.

The Commission proposed that, after 2026, free allocations would be reduced by ten percentage points annually in a linear fashion over ten years, while CBAM would increase by the same amount. The Parliament and the Council want phase-in paths for CBAM in which free allocations are reduced at a slower rate at the beginning and then faster at a later stage.

Schedule: The first technical meetings have already taken place. The next trilogue round at the highest level is scheduled for the second week of October. CBAM negotiations are also expected to be completed by COP27 in November.

Stakeholders: Peter Liese (Parliament Rapporteur), Pascal Canfin (Environment Committee Chairman), Frans Timmermans (EU Commission), Czech Council Presidency.

COP27: Europe more than ever under obligation

Speaking of COP27, this year’s UN Climate Change Conference in Sharm el Sheikh, Egypt, is not considered to have the same relevance as the last one in Glasgow. But this assessment is not shared by emerging and developing countries. And the demands of these countries, which are most affected by climate change, should also raise the attention of the industrialized nations. After all, the world also counts on Europe – for example, for climate financing.

The $100 billion pledge by the richest industrialized nations is still unfulfilled. Since 2020, this amount was supposed to flow to developing countries every year from public and private sources for climate adaptation and mitigation. In 2020, it was only $83.3. However, this is less the responsibility of the EU as a bloc than of the member states. Admittedly, they are already setting a good example – Germany, for example, paid €7.83 billion from public and private sources in 2020. But the question is whether Europe can still increase its contribution if the USA and China in particular fail to live up to the commitments they made at the COP in Copenhagen in 2009.

“People in the poorest countries have contributed almost nothing to carbon emissions, but they bear the greatest burden of climate change,” said German Development Minister Svenja Schulze recently. She considered it high time for industrialized countries to recognize “that climate damage exists and that it is precisely the most vulnerable countries that need our solidarity to deal with it.”

Together with the “particularly vulnerable developing countries,” a climate risk protection umbrella is to be worked out at COP27, according to Schulze. This would include social security systems. In the event of a drought, the money would then already be ready.

The continuation of so-called Just Energy Transition Partnerships (JETPs) will also be one of the crucial topics at this year’s COP. How can industrialized countries help to ensure that Egypt, Indonesia or South Africa are not even tempted to base their energy systems on fossil fuels and replace them with renewable alternatives early on? Europe, and Germany in particular, constantly emphasize their will to act. At COP27, they could then also prove this willingness.

Schedule: COP will take place from November 7 to 18 in Sharm el Sheikh on Egypt’s Sinai Peninsula – an extension is possible. Preparations for the negotiations have been underway for months and have been in full swing at least since the Bonn Climate Change Conference in mid-June.

Actors: Delegations from member states. For the EU Commission, Green Deal Commissioner Frans Timmermans is leading the negotiations, but the Parliament is also sending a delegation. The German delegation is headed by Jennifer Morgan, State Secretary at the Federal Foreign Office and Special Representative for International Climate Policy of German Foreign Minister Annalena Baerbock. The designated president of the COP27 is Egyptian Foreign Minister Sameh Shoukry.

  • Climate & Environment
  • Climate Policy
  • COP27
  • Emissions trading
  • European policy

News

Court of Auditors: EU institutions were functional despite Covid crisis

Key EU institutions have responded remarkably well to the Covid pandemic, according to the European Court of Auditors. The institutions acted quickly and flexibly and benefited from earlier investments in digitization, according to a Court of Auditors report published Thursday in Luxembourg.

The European Parliament, the Representation of the Member States and the EU Commission, as well as the Court of Justice of the European Union (ECJ), were audited between February 2020 and July 2021. “Despite uneven levels of preparedness, the audited EU institutions managed to equip all their staff with teleworking solutions within six weeks,” the Court said.

Existing contingency plans for crisis situations had been effective, but they had not initially been designed for a crisis as prolonged as the Corona pandemic. In addition, uniform responses were not always possible. The report sees another weakness in the fact that not all areas of the administration have yet been fully digitized. It is still being examined how teleworking, for example, can be maintained even after the crisis, as this holds considerable potential for cost reductions. dpa

  • Digitization

US premium for EVs could discriminate against European manufacturers

EU Trade Commissioner Valdis Dombrovskis fears the new US tax credit for EV purchases could put manufacturers in the European Union at a disadvantage. The instrument could prove a failure and limit choice for US consumers, Dombrovskis said Thursday in a virtual meeting with his US counterpart, Katherine Tai.

Democrats included the tax credit in the climate and health care bill passed last month to incentivize domestic production of batteries and EVs. However, manufacturers in Europe and South Korea, which sell millions of vehicles in the US, have threatened to file a complaint with the World Trade Organization.

The law provides a tax credit of up to $7,500 that can be used to cover the cost of buying an EV. However, to qualify for the full tax credit, the vehicle must contain a battery manufactured in North America with 40 percent of its metals mined or recycled on the continent.

Premium for EVs with batteries from North America

The European Commission said that parts of the law could help combat climate change by accelerating the phase-out of fossil fuels. However, it also expressed concern about the “potential discriminatory nature of US EV tax credit.” While the EU seeks close cooperation with the US in fighting climate change, “green measures should not be designed in a discriminatory, WTO-incompatible way,” it said. leo/ ap

  • Battery
  • Electric vehicles
  • Electromobility

Poland demands €1.32 trillion compensation from Germany

According to the leader of the ruling PiS party, Jarosław Kaczyński, Poland plans to make reparation claims in the trillions against Germany. Damages and losses during World War II are estimated at zł6.2 trillion (€1.32 trillion), the leader of the national-conservative PiS announced Thursday. His party has called for compensation several times since taking over government in 2015. So far, however, no official government-level reparations demands have been made to Germany.

The Foreign Office rejected the demand in an initial reaction. “The German government’s position is unchanged: the reparations question is closed,” a German Foreign Office spokesperson said. “Poland renounced further reparations a long time ago, in 1953, and has since repeatedly confirmed this.” During Chancellor OlScholz’slz’ inaugural visit to Warsaw in December, he had also rejected the demands, referring to earlier treaties.

Federal Foreign Office refers to previous treaties

“The sum that was presented was adopted using the most limited, conservative method,” Kaczyński said. “It would be possible to increase it.” In 1953 Poland’s then-communist rulers relinquished all claims to war reparations under pressure from the Soviet Union, which wanted to free East Germany, also a Soviet satellite, from any liabilities. PiS says that the agreement is invalid because Poland was unable to negotiate fair compensation.

The leader of the largest opposition Civic Platform party, Donald Tusk, accused Kaczyński of not really being concerned with compensation for the destruction caused during World War II. “This is not about any reparations from Germany, but a political campaign,” the former EU Council president said. Although PiS leads Civic Platform in polls, its lead has shrunk in the face of rising inflation and an economic downturn.

Some six million Poles, including three million Polish Jews, were killed during the war and Warsaw was razed to the ground following a 1944 uprising in which about 200,000 civilians died. leo/ ap

  • Germany
  • Poland

Taiwan and Indo-Pacific on EU agenda

The situation around Taiwan and the EU’s relationship with China and the Indo-Pacific region is an important topic in Brussels in the first days after the summer break. The EU is still talking with Thai representatives this week about an agreement to make supply chains in Asia more diverse, Gunnar Wiegand of the European External Action Service (EEAS) said at a meeting of the EU Parliament’s trade committee on Thursday. Similar talks and the signing of an agreement are planned with Malaysia on the sidelines of the Asean summit in November. Wiegand did not give any further details.

Taiwan is a key partner for the EU in the Indo-Pacific region, Dominic Porter, who is responsible for China, Hong Kong, and Taiwan within the EEAS, told the European Parliament’s Foreign Affairs Committee also on Thursday. Porter stated: “The one-China policy will remain.” He said this is the basis for the relationship between Brussels and Beijing. Tension or escalated conflict in the Taiwan Strait is in no one’s interest and concerns about China’s behavior have been communicated directly to Chinese officials, he explained.

The EU Commission’s draft legislation to ban imports of products from forced labor will also be exciting for EU-China relations this month. It is to be presented on September 13. The import ban will likely be based on a marketing ban within the EU. In addition, EU Commission President Ursula von der Leyen will deliver her Speech on the state of the European Union in Strasbourg on September 14. Last year, she announced the import ban on goods from forced labor. ari

  • China
  • Supply chains
  • Taiwan
  • Trade

Digital diplomacy: new EU office in San Francisco

Dutch politician Gerard de Graaf has been appointed head of the newly opened European Union office in San Francisco. The office aims to strengthen the EU’s cooperation with the United States on digital diplomacy. The facility is the result of a joint commitment at the June 2021 EU-US summit to strengthen transatlantic technological cooperation. And it is a key component of the conclusions on digital diplomacy adopted by the EU Foreign Affairs Council in July this year.

The office will work to promote EU standards and technologies, digital policies and regulations, and governance models. It will also strengthen exchanges with US digital technology stakeholders – including policymakers, business, and civil society. It also aims to strengthen cooperation within the Trade and Technology Council (TTC). The office reports to the EU Delegation in Washington and works in close coordination with headquarters in Brussels and in partnership with EU Member State consulates in the San Francisco Bay Area.

Head Gerard de Graaf has worked in the European Commission for more than thirty years in a wide range of policy areas. Until his recent appointment, he was Director in the Directorate-General for Communications Networks, Content and Technologies (DG CNECT), where his responsibilities included the Digital Services and Digital Markets Acts (DSA/DMA). Previously, de Graaf was responsible, for example, for EU policy in the areas of telecommunications and audiovisual media (including copyright), cybersecurity, ICT standardization, Start-up Europe, ICT and the environment, and international relations. He co-chaired two TTC working groups dealing with GreenTech, Data Governance and Technology Platforms. vis

  • Digitization

Column

What’s cooking in Brussels: turmoil at the EESC

By Claire Stam
Schwarz-weiß Portrait von Claire Stam

The “whim of the gods” – or “caprice des dieux” as it is originally called – is a cheese that is known for its oval shape in a universe of traditionally round (like the Camembert) or angular products. It is also the name given to the building of the European Parliament, in an allusion to the supposed privileged status of its residents, but also to its shape, which resembles the box of the famous cheese.

There, in Parliament, the Committee on Budgetary Control will vote on September 26 on the EESC’s budget, which amounted to €150 million in 2021. The report to be presented next week by Spanish MEP Isabel García Muñoz will prepare the meeting.

MPs previously already refused to approve the 2020 budget and did so again at the beginning of this year. The reason? They called for an external investigation by the EESC into several harassment complaints that already led to investigations by the European Anti-Fraud Office (OLAF) in 2018 and 2019.

Should the EESC be abolished?

That is all it took to reignite a debate that has been going on for years in the Brussels “bubble”: the one about the EESC’s legitimacy and purpose. In addition to the harassment allegations, critics also question the validity of the EESC’s opinions, the efficiency of its management and its budget. Some even believe that the EESC should be abolished.

To properly contextualize the debate, a brief historical review is needed: The EESC was created in 1957 by the Treaty of Rome and, along with the Committee of the Regions, is one of the EU’s two official advisory bodies. It is based on the French model, which was formed in 1946 in the wake of the major social reforms. Like its French counterpart, the EESC was established to allow European civil society actors to officially comment on EU legislative proposals. The Committee represents the interests of consumers, trade unions, employers and farmers, among others.

“The Committee is neither a lobby group nor a representation of particular interests. Our statements are generally based on consensus and express the concerns of European civil society as a whole as a common denominator,” Christa Schweng, EESC President since 2020, summarizes for Europe.Table. “The EESC is a network of networks: Our members come together to discuss important EU issues, and thus contribute to shaping and improving EU legislation.”

Cases of bullying and harassment

As such, the EESC is in a privileged position to express opinions on the Commission’s legislative proposals. Although these opinions are not binding, the ideas they present can easily feed into the deliberations of the Commission, the Council and/or the Parliament. “A concrete example of this is that the EESC was the first to call for a true European health union,” says Schweng.

And what does she have to say about the allegations? “In my capacity as President, I listened carefully to each of the victims of harassment or serious misconduct identified by OLAF in order to reach fair solutions. The EESC departments then followed up on this process and in all cases came to an agreement with the victims. On 13 April 2022, in a public statement on the EESC’s internet portal, I again officially apologized on behalf of the Committee to all the victims of the case at hand.”

Schweng explains that the European Parliament’s decision to postpone the discharge of the EESC to 2020 was based on the delayed implementation of the settlement agreement with one victim of bullying and delays in concluding such agreements with two other victims of serious misconduct. “The process has indeed dragged on longer, but this is for the essential reason that we have worked beyond purely legal obligations to find the best solutions for victims.”

Lobby for civil society

The EESC now provides monthly updates to the EP rapporteur and shadow rapporteurs for the 2020 discharge.

But we can also dig deeper into the question of legitimacy and turn the problem the other way around: If the EESC is abolished, will the Committee of the Regions also be dissolved? And who could then represent the voice of civil society in a city where an estimated 48,000 lobbyists work, the majority of them from the industry?

So it is no coincidence that the Conference on the Future of Europe demands a strengthening of the EESC’s institutional role in its final recommendations presented on May 9. Acknowledging that “a vibrant civil society contributes to fulfilling the conditions for EU membership,” the conference proposes empowering the EESC as a “facilitator and guarantor of participatory democracy activities, including structured dialogue with civil society organizations and citizens’ panels”.

In times when political debate can very quickly degenerate into fistfights and shitstorms, it seems more than necessary to be able to preserve everything that promotes “structured dialogue” and calms politically, since it is based on the culture of compromise – which is far from being the dirty word it is always made out to be – between citizens and their institutions.

With this in mind, one might think: Yes to a restructuring of the governance of the EESC, but not to its abolition. This would certainly improve the “whim of the gods”.

  • EU
  • European Commission

Europe.Table Editorial Office

EUROPE.TABLE EDITORS

Licenses:
    • Commission works on electricity price cap
    • Top candidates: competition for von der Leyen?
    • Outlook: The fall agenda of EU climate policy
    • Court of Auditors: EU institutions were operational despite Covid crisis
    • US premium for EVs could discriminate against European manufacturers
    • Poland seeks €1.32 trillion in WW2 compensation from Germany
    • Taiwan and Indo-Pacific on EU agenda
    • Digital diplomacy: new EU office in San Francisco
    • What’s cooking in Brussels: turmoil at the EESC
    Dear reader,

    France’s President Emmanuel Macron urged Europe to stand united in Paris yesterday. “We must not let Europe be divided by this war. European unity is key. The division of Europe was one of Russia’s aim of the war.” At the same time, he defended his willingness to maintain contact with Vladimir Putin: France will continue to talk with Russia in search of a peaceful solution, of course in consultation with NATO allies, he said.

    The current energy prices fuel particular concern about the division of Europe. Experts from the European Commission now propose a new, multipart approach as an emergency measure against high electricity prices. In his analysis, Manuel Berkel looked at a document from the responsible Directorate-General for Energy, which is available to Europe.Table.

    It will still be a while before the next elections in the European Parliament in 2024. But European parties already ask themselves questions, like who will be their top candidates. Particularly interesting will be the EPP candidates, write Markus Grabitz and Till Hoppe: There could be two very prominent female rivals.

    My colleague Lukas Scheid also summarizes what is next for EU climate policy this fall: Not only are the trilogues on ETS reform and the introduction of the CBAM entering the decisive round (and they offer a lot of conflict potential). In addition, the UN Climate Change Conference will be held in Sharm el Sheikh, Egypt, in early November. The countries most affected by climate change are looking primarily to Europe – because the industrialized countries are not living up to their promise of climate funding.

    Claire Stam’s culinary-political column today is about French soft cheese – and the future of the European Economic and Social Committee (EESC), which fears for its budget. Bon appétit!

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    Leonie Düngefeld
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    Feature

    Commission works on electricity price cap

    The EU Commission’s energy experts are in favor of a price cap on electricity generated from nuclear power, lignite and renewable energies. This would decouple these cheaper energy sources from the price of the electricity exchange, which is mostly set by more expensive gas-fired power plants, according to a non-paper from the responsible Directorate-General for Energy, which is available to Europe.Table. This would give member states financial leeway to relieve particularly vulnerable households.

    The 23-page paper serves as a discussion basis for the Commission. The authority is currently working at full speed on proposals on how the EU can cope with the recent turbulence on the electricity markets in the short term. In parallel, it is preparing a legislative proposal for a new electricity market design by early 2023. Details on the electricity market design will be available after Ursula von der Leyen’s speech in the European Parliament on September 14. The EU energy ministers will address these issues at an extraordinary Council meeting on September 9.

    The enormous price swings recently fueled the political discussion about intervention in the market. The ideas range from a general electricity price cap to the Iberian model and the Greek proposal to divide the market into renewable energy and fossil fuel suppliers.

    Price cap, relief, power saving

    The Commission’s energy experts are now proposing a modified approach. This idea is to prevent a price drop from causing a counterproductive increase in electricity and gas demand and thus posing a risk to energy security. The proposal involves three elements:

    • Saving electricity: Member states are to reduce their electricity consumption. The “mandatory reduction of gas consumption” from the gas-saving plan adopted by the EU member states at the end of July could serve as a model for this. According to the non-paper, this could be implemented through auctioning for industry and financial incentives for households. It is said to be particularly important to reduce peak loads.
    • A price cap on nuclear power, lignite, most renewables and, temporarily, hard coal: “This measure aims to reduce the impact of the price of the margin-determining technology on the electricity market (often gas-fired power plants) on the revenues of other generators with lower marginal costs,” the paper says. Countries that have already introduced similar measures, such as Spain and Italy, would then have to change their practices.
    • Relief for consumers: Member states are to be encouraged to use the generated revenues to support particularly vulnerable electricity consumers. This could be achieved through regulated tariffs, as in France, or through indirect aid, like in Germany. It would be conceivable to legally clarify that small and medium-sized companies could also benefit from regulated electricity prices.

    Energy economist Lion Hirth praises this approach: It is “a big step forward in the debate,” says the Hertie School expert, even if “many details remain unclear”. The paper also discusses legal implementation. The authors believe it would be feasible to implement the emergency measures for the electricity market again as a binding Council regulation, as was already done with the gas conservation plan.

    Help for critical industries

    The extreme fluctuations on the electricity exchanges have further exacerbated the concerns in politics and the industry triggered by the gas crisis. A Commission representative indicated yesterday in the European Parliament’s Industry Committee that individual industrial sectors could be granted preferential access to gas in the event of a shortage.

    “We are looking at the issue of critical industries that are currently not covered by the SoS regulation,” said DG Energy Deputy Director General Mechthild Wörsdörfer, as she explained the gas-saving plan to the industry committee. In the event of a gas shortage, member states would have to provide preferential treatment to previously protected customers. In addition to household customers, this could only include basic social services such as the health sector and small and medium-sized enterprises.

    Wörsdörfer said that aluminum and fertilizer producers, among many other industries, have already been hit hard by the energy crisis. “We are looking at what these critical consumers need because our SoS regulation is not suited for crises like this,” the top German official said.

    Doubts about cooperation between member states

    But the deputy director general also urged to continue to save gas. From August to March, EU countries are to cut their gas consumption by 15 percent. According to Wörsdörfer, the Commission expects the first progress reports from member states in October.

    The Chair of the Committee on Industry, Cristian Bușoi, criticized insufficient information and raised doubts about the member states’ willingness to cooperate. “It has not yet become clear to us how many member states want to implement this voluntary plan.” Countries that have not curbed gas consumption by the end of the year will find it hard to meet the 15 percent target, he said – even if gas saving becomes mandatory by the end of the year.

    The reminders to stick to saving gas come shortly after positive news on gas storage facilities. On Wednesday, EU gas storage facilities reached an average capacity of 80 percent. However, MEP Jerzy Buzek (EPP) pointed out that the European Parliament had originally advocated a storage target of 90 percent. The gas savings target of 15 percent may also be too conservative, Buzek said.

    German Minister of Economic Affairs, Robert Habeck (Greens), continues to urge the saving of gas. Yesterday, he presented plans for a fifth floating LNG terminal chartered by the German government. It is scheduled to begin operations in Wilhelmshaven in the fourth quarter of 2023 with a capacity of five billion cubic meters (bcm) per year. with Till Hoppe, Claire Stam

    • Energy
    • Energy policy
    • Energy Prices

    Top candidates: competition for von der Leyen?

    It’s a well-known fact that anyone who wants to hold a high office in politics should not stick their head out too early. So it is no surprise that Ursula von der Leyen has so far kept a low profile about whether she wants to run for a second term after the European elections in 2024. But hardly anyone doubts that the incumbent Commission President would like to be elected a second time.

    However, it is by no means certain that the Christian Democratic family of parties, the EPP, will actually ask her for her opinion. And that is even though von der Leyen’s political home is the CDU/CSU. Her relationship with Manfred Weber is sour. The CSU politician, who chairs the largest group in the parliament and has also headed the party at the EU level since May, considers asking EU Parliament President Roberta Metsola to be his top candidate. This was confirmed to Europe.Table by several sources from the EPP. Weber declined to comment on the matter.

    The frustration of 2019 still runs deep among the European parties. French President Emmanuel Macron had exploited the discord between the EPP, the PES and the Greens and pushed von der Leyen as Commission President, even though she had not even run for the Strasbourg Parliament. Top candidate Weber claimed the key post in Brussels as the election winner, but he failed to win a majority in the European Parliament and the Council. Macron was not the only one to snub Weber.

    Party families must pull together

    For decades, the heads of state and government had largely decided among themselves who would head the Commission. But then the European Parliament won a say in the matter. CDU string-puller Elmar Brok also ensured that the “election of a top candidate” was enshrined in the EPP statutes.

    It is still open whether the party families will once again nominate Europe-wide top candidates, like in 2014 and 2019. The EPP is certainly planning to do so, but sees the ball in the court of the other party families first. Social Democrats, Liberals and Greens are also in favor of the model, which is intended to give the Commission President democratic legitimacy. “In the Future Conference, we advocated for the top candidate model and transnational lists to be institutionally anchored through a convention,” says Nicola Beer, Vice President of the European Parliament. Now it is up to von der Leyen to take a position on this, she adds.

    Reinhard Bütikofer, party leader of the European Greens from 2012 to 2019, also supports the model: “The leading candidate model has the potential to make the European elections more interesting and more democratic and European. It gives the party-politically different perspectives for Europe some memorable faces.” For the principle to work, however, the pro-European party families would have to agree to pull together prior to the elections. The head of the German Social Democrats in the European Parliament, Jens Geier, emphasizes: “The key to success lies with the party families. They must stand by their top candidate.”

    European Socialists elect new leadership

    The parties will choose their candidates for the 2024 election after the summer break in 2023. In a few weeks, the European Socialists will hold their party conference in Berlin and elect a new leadership. After that, the first indications could emerge. Frans Timmermans, the top candidate for 2019, is said to be no longer interested after his failure. He is rumored to want to move back into Dutch politics. There, a rallying movement headed by him is currently forming, which could take him into the national election campaign. Among the Socialists, Portugal’s Prime Minister Antonio Costa and the former Swedish head of government Stefan Löfven are considered possible candidates.

    Among the Christian Democrats, von der Leyen and Metsola are probably the most likely candidates. Weber knows that he has no chance of moving into the top floor of the Berlaymont building. After the German von der Leyen, it would be the turn of another member state to provide the Commission president.

    Weber would reportedly prefer Metsola. Not only is she considered charismatic and competent within the EPP, but the 43-year-old would also give the conservatives a younger, more modern face. The Maltese national is already using her new role quite skillfully: In early April, for example, she paid a high-profile visit to Volodymyr Zelenskiy in Kyiv – and thus beat von der Leyen to the punch, which is rumored to have upset her. This is a certain sign that the German sees the parliamentarian as a competitor.

    Top candidates need support in parliament

    But Metsola’s weakness is her lack of government experience. It is therefore doubtful whether she would get the necessary support from the circle of heads of state and government. Moreover, Malta is one of the smallest member states and has massive problems with the rule of law.

    Von der Leyen, on the other hand, enjoys a lot of support among conservative heads of government, according to the EPP. CDU leader Friedrich Merz also supports his party colleague, even if he has little sympathy for her. In the EPP group, on the other hand, von der Leyen is apparently “not popular”. Especially not in the group of German CDU/CSU deputies. They accuse her of pursuing an excessively green agenda.

    What has to happen for the top candidate model to work in 2024? Influential MEP Andreas Schwab (CDU) says: “To make it work next time, party families need to think together before the election about which top candidate can mobilize enough support in parliament after the election.”

    Bütikofer takes a similar view: “The pro-European party families must communicate before the elections that they want to pull together to elect a top candidate for Commission president.” with Till Hoppe

    • European election 2024
    • European policy
    • Ursula von der Leyen

    Outlook: the fall agenda of EU climate policy

    ETS Reform: rebasing and LRF

    The trilogue negotiations on the reform of the European Emissions Trading System (ETS) are gaining renewed momentum with the resumption of political activity in Brussels. Although negotiations officially began before the summer break, at the first meeting the co-legislators merely restated their positions (Europe.Table reported).

    The topic will be what contribution the ETS will make to carbon reduction in the EU. The amount and timing of rebasing, i.e. the removal of unused allowances from the market, is still under debate. This will allow the steering effect of the ETS to unfold, as the price will rise and the decarbonization incentive will be strengthened.

    Parliament initially wants to remove 70 million CO2 allowances from the market in 2024 and another 50 million in 2026. The usually more ambitious Parliament wants to raise the so-called linear reduction factor for the carbon cap (CAP) to 4.4 percent annually by 2026 and to 4.6 percent from 2029. This would reduce the ETS CAP by a total of 63 percent by 2030.

    The Commission and the Council proposed raising the linear reduction factor from 2.2 percent to 4.2 percent from 2024 and reducing the CAP by 61 percent (around 117 million allowances) through a one-time removal. Although the positions are not far apart, an agreement on rebasing has already failed once in Parliament, which is why no concessions are likely to be made in the trilogue.

    ETS 2: Who will pay the new carbon price?

    However, the fiercest debates on ETS reform could revolve around the second ETS for road transport and building heating. In Parliament, the compromise was to separate commercial and residential use of fuels. Private households would remain exempt from the carbon price, but it would still apply to commercial use.

    The Commission and Council do not envisage such a separation in ETS 2, nor do they consider it sensible. The German government also believes that all fossil fuels should be subject to a surcharge – similar to what is already done in Germany with the national Fuel Emissions Trading Act (BEHG).

    The introduction date of ETS 2 and the social compensation for rising prices are also likely to cause debate. The Commission proposed 2026 for its introduction and launched a €72 billion social climate fund to provide relief for consumers who will be particularly affected. The member states want to postpone the introduction by one year and reduce the size of the fund to €59 billion. The Parliament even wants to introduce the trimmed-down ETS 2 for commercial use only in 2029, which would make social compensation unnecessary.

    Schedule: The first technical meetings have already taken place. The next trilogue round at the highest level is scheduled for the second week of October. Negotiations on the ETS and CBAM (and also on the Social Climate Fund) should be wrapped up by COP27 in November. This timetable is unlikely to be met, given the sheer amount of work that still needs to be done.

    Stakeholders: Peter Liese (Parliament Rapporteur), Pascal Canfin (Environment Committee Chairman), Frans Timmermans (EU Commission), Czech Council Presidency.

    CBAM: What happens to free allocations?

    Closely tied to the reform of the ETS is the introduction of a Carbon Border Adjustment Mechanism (CBAM), which, in the long term, is intended to replace free carbon emission allowances for the industry as a safeguard against carbon leakage.

    The remaining key questions to be addressed include which industrial sectors CBAM will apply to and the rate at which CBAM will replace free allocations. In addition to the sectors proposed by the Commission (iron and steel, refineries, cement, basic organic chemicals and fertilizers), the Parliament demands that CBAM also cover organic chemicals, plastics, hydrogen and ammonia.

    Representatives of the German industry demand that the industries themselves should decide whether they want to have the CBAM or continue to use free allocations as carbon leakage protection. The fear is that the new instrument will not be able to achieve its intended effect without an extensive trial phase.

    The Commission proposed that, after 2026, free allocations would be reduced by ten percentage points annually in a linear fashion over ten years, while CBAM would increase by the same amount. The Parliament and the Council want phase-in paths for CBAM in which free allocations are reduced at a slower rate at the beginning and then faster at a later stage.

    Schedule: The first technical meetings have already taken place. The next trilogue round at the highest level is scheduled for the second week of October. CBAM negotiations are also expected to be completed by COP27 in November.

    Stakeholders: Peter Liese (Parliament Rapporteur), Pascal Canfin (Environment Committee Chairman), Frans Timmermans (EU Commission), Czech Council Presidency.

    COP27: Europe more than ever under obligation

    Speaking of COP27, this year’s UN Climate Change Conference in Sharm el Sheikh, Egypt, is not considered to have the same relevance as the last one in Glasgow. But this assessment is not shared by emerging and developing countries. And the demands of these countries, which are most affected by climate change, should also raise the attention of the industrialized nations. After all, the world also counts on Europe – for example, for climate financing.

    The $100 billion pledge by the richest industrialized nations is still unfulfilled. Since 2020, this amount was supposed to flow to developing countries every year from public and private sources for climate adaptation and mitigation. In 2020, it was only $83.3. However, this is less the responsibility of the EU as a bloc than of the member states. Admittedly, they are already setting a good example – Germany, for example, paid €7.83 billion from public and private sources in 2020. But the question is whether Europe can still increase its contribution if the USA and China in particular fail to live up to the commitments they made at the COP in Copenhagen in 2009.

    “People in the poorest countries have contributed almost nothing to carbon emissions, but they bear the greatest burden of climate change,” said German Development Minister Svenja Schulze recently. She considered it high time for industrialized countries to recognize “that climate damage exists and that it is precisely the most vulnerable countries that need our solidarity to deal with it.”

    Together with the “particularly vulnerable developing countries,” a climate risk protection umbrella is to be worked out at COP27, according to Schulze. This would include social security systems. In the event of a drought, the money would then already be ready.

    The continuation of so-called Just Energy Transition Partnerships (JETPs) will also be one of the crucial topics at this year’s COP. How can industrialized countries help to ensure that Egypt, Indonesia or South Africa are not even tempted to base their energy systems on fossil fuels and replace them with renewable alternatives early on? Europe, and Germany in particular, constantly emphasize their will to act. At COP27, they could then also prove this willingness.

    Schedule: COP will take place from November 7 to 18 in Sharm el Sheikh on Egypt’s Sinai Peninsula – an extension is possible. Preparations for the negotiations have been underway for months and have been in full swing at least since the Bonn Climate Change Conference in mid-June.

    Actors: Delegations from member states. For the EU Commission, Green Deal Commissioner Frans Timmermans is leading the negotiations, but the Parliament is also sending a delegation. The German delegation is headed by Jennifer Morgan, State Secretary at the Federal Foreign Office and Special Representative for International Climate Policy of German Foreign Minister Annalena Baerbock. The designated president of the COP27 is Egyptian Foreign Minister Sameh Shoukry.

    • Climate & Environment
    • Climate Policy
    • COP27
    • Emissions trading
    • European policy

    News

    Court of Auditors: EU institutions were functional despite Covid crisis

    Key EU institutions have responded remarkably well to the Covid pandemic, according to the European Court of Auditors. The institutions acted quickly and flexibly and benefited from earlier investments in digitization, according to a Court of Auditors report published Thursday in Luxembourg.

    The European Parliament, the Representation of the Member States and the EU Commission, as well as the Court of Justice of the European Union (ECJ), were audited between February 2020 and July 2021. “Despite uneven levels of preparedness, the audited EU institutions managed to equip all their staff with teleworking solutions within six weeks,” the Court said.

    Existing contingency plans for crisis situations had been effective, but they had not initially been designed for a crisis as prolonged as the Corona pandemic. In addition, uniform responses were not always possible. The report sees another weakness in the fact that not all areas of the administration have yet been fully digitized. It is still being examined how teleworking, for example, can be maintained even after the crisis, as this holds considerable potential for cost reductions. dpa

    • Digitization

    US premium for EVs could discriminate against European manufacturers

    EU Trade Commissioner Valdis Dombrovskis fears the new US tax credit for EV purchases could put manufacturers in the European Union at a disadvantage. The instrument could prove a failure and limit choice for US consumers, Dombrovskis said Thursday in a virtual meeting with his US counterpart, Katherine Tai.

    Democrats included the tax credit in the climate and health care bill passed last month to incentivize domestic production of batteries and EVs. However, manufacturers in Europe and South Korea, which sell millions of vehicles in the US, have threatened to file a complaint with the World Trade Organization.

    The law provides a tax credit of up to $7,500 that can be used to cover the cost of buying an EV. However, to qualify for the full tax credit, the vehicle must contain a battery manufactured in North America with 40 percent of its metals mined or recycled on the continent.

    Premium for EVs with batteries from North America

    The European Commission said that parts of the law could help combat climate change by accelerating the phase-out of fossil fuels. However, it also expressed concern about the “potential discriminatory nature of US EV tax credit.” While the EU seeks close cooperation with the US in fighting climate change, “green measures should not be designed in a discriminatory, WTO-incompatible way,” it said. leo/ ap

    • Battery
    • Electric vehicles
    • Electromobility

    Poland demands €1.32 trillion compensation from Germany

    According to the leader of the ruling PiS party, Jarosław Kaczyński, Poland plans to make reparation claims in the trillions against Germany. Damages and losses during World War II are estimated at zł6.2 trillion (€1.32 trillion), the leader of the national-conservative PiS announced Thursday. His party has called for compensation several times since taking over government in 2015. So far, however, no official government-level reparations demands have been made to Germany.

    The Foreign Office rejected the demand in an initial reaction. “The German government’s position is unchanged: the reparations question is closed,” a German Foreign Office spokesperson said. “Poland renounced further reparations a long time ago, in 1953, and has since repeatedly confirmed this.” During Chancellor OlScholz’slz’ inaugural visit to Warsaw in December, he had also rejected the demands, referring to earlier treaties.

    Federal Foreign Office refers to previous treaties

    “The sum that was presented was adopted using the most limited, conservative method,” Kaczyński said. “It would be possible to increase it.” In 1953 Poland’s then-communist rulers relinquished all claims to war reparations under pressure from the Soviet Union, which wanted to free East Germany, also a Soviet satellite, from any liabilities. PiS says that the agreement is invalid because Poland was unable to negotiate fair compensation.

    The leader of the largest opposition Civic Platform party, Donald Tusk, accused Kaczyński of not really being concerned with compensation for the destruction caused during World War II. “This is not about any reparations from Germany, but a political campaign,” the former EU Council president said. Although PiS leads Civic Platform in polls, its lead has shrunk in the face of rising inflation and an economic downturn.

    Some six million Poles, including three million Polish Jews, were killed during the war and Warsaw was razed to the ground following a 1944 uprising in which about 200,000 civilians died. leo/ ap

    • Germany
    • Poland

    Taiwan and Indo-Pacific on EU agenda

    The situation around Taiwan and the EU’s relationship with China and the Indo-Pacific region is an important topic in Brussels in the first days after the summer break. The EU is still talking with Thai representatives this week about an agreement to make supply chains in Asia more diverse, Gunnar Wiegand of the European External Action Service (EEAS) said at a meeting of the EU Parliament’s trade committee on Thursday. Similar talks and the signing of an agreement are planned with Malaysia on the sidelines of the Asean summit in November. Wiegand did not give any further details.

    Taiwan is a key partner for the EU in the Indo-Pacific region, Dominic Porter, who is responsible for China, Hong Kong, and Taiwan within the EEAS, told the European Parliament’s Foreign Affairs Committee also on Thursday. Porter stated: “The one-China policy will remain.” He said this is the basis for the relationship between Brussels and Beijing. Tension or escalated conflict in the Taiwan Strait is in no one’s interest and concerns about China’s behavior have been communicated directly to Chinese officials, he explained.

    The EU Commission’s draft legislation to ban imports of products from forced labor will also be exciting for EU-China relations this month. It is to be presented on September 13. The import ban will likely be based on a marketing ban within the EU. In addition, EU Commission President Ursula von der Leyen will deliver her Speech on the state of the European Union in Strasbourg on September 14. Last year, she announced the import ban on goods from forced labor. ari

    • China
    • Supply chains
    • Taiwan
    • Trade

    Digital diplomacy: new EU office in San Francisco

    Dutch politician Gerard de Graaf has been appointed head of the newly opened European Union office in San Francisco. The office aims to strengthen the EU’s cooperation with the United States on digital diplomacy. The facility is the result of a joint commitment at the June 2021 EU-US summit to strengthen transatlantic technological cooperation. And it is a key component of the conclusions on digital diplomacy adopted by the EU Foreign Affairs Council in July this year.

    The office will work to promote EU standards and technologies, digital policies and regulations, and governance models. It will also strengthen exchanges with US digital technology stakeholders – including policymakers, business, and civil society. It also aims to strengthen cooperation within the Trade and Technology Council (TTC). The office reports to the EU Delegation in Washington and works in close coordination with headquarters in Brussels and in partnership with EU Member State consulates in the San Francisco Bay Area.

    Head Gerard de Graaf has worked in the European Commission for more than thirty years in a wide range of policy areas. Until his recent appointment, he was Director in the Directorate-General for Communications Networks, Content and Technologies (DG CNECT), where his responsibilities included the Digital Services and Digital Markets Acts (DSA/DMA). Previously, de Graaf was responsible, for example, for EU policy in the areas of telecommunications and audiovisual media (including copyright), cybersecurity, ICT standardization, Start-up Europe, ICT and the environment, and international relations. He co-chaired two TTC working groups dealing with GreenTech, Data Governance and Technology Platforms. vis

    • Digitization

    Column

    What’s cooking in Brussels: turmoil at the EESC

    By Claire Stam
    Schwarz-weiß Portrait von Claire Stam

    The “whim of the gods” – or “caprice des dieux” as it is originally called – is a cheese that is known for its oval shape in a universe of traditionally round (like the Camembert) or angular products. It is also the name given to the building of the European Parliament, in an allusion to the supposed privileged status of its residents, but also to its shape, which resembles the box of the famous cheese.

    There, in Parliament, the Committee on Budgetary Control will vote on September 26 on the EESC’s budget, which amounted to €150 million in 2021. The report to be presented next week by Spanish MEP Isabel García Muñoz will prepare the meeting.

    MPs previously already refused to approve the 2020 budget and did so again at the beginning of this year. The reason? They called for an external investigation by the EESC into several harassment complaints that already led to investigations by the European Anti-Fraud Office (OLAF) in 2018 and 2019.

    Should the EESC be abolished?

    That is all it took to reignite a debate that has been going on for years in the Brussels “bubble”: the one about the EESC’s legitimacy and purpose. In addition to the harassment allegations, critics also question the validity of the EESC’s opinions, the efficiency of its management and its budget. Some even believe that the EESC should be abolished.

    To properly contextualize the debate, a brief historical review is needed: The EESC was created in 1957 by the Treaty of Rome and, along with the Committee of the Regions, is one of the EU’s two official advisory bodies. It is based on the French model, which was formed in 1946 in the wake of the major social reforms. Like its French counterpart, the EESC was established to allow European civil society actors to officially comment on EU legislative proposals. The Committee represents the interests of consumers, trade unions, employers and farmers, among others.

    “The Committee is neither a lobby group nor a representation of particular interests. Our statements are generally based on consensus and express the concerns of European civil society as a whole as a common denominator,” Christa Schweng, EESC President since 2020, summarizes for Europe.Table. “The EESC is a network of networks: Our members come together to discuss important EU issues, and thus contribute to shaping and improving EU legislation.”

    Cases of bullying and harassment

    As such, the EESC is in a privileged position to express opinions on the Commission’s legislative proposals. Although these opinions are not binding, the ideas they present can easily feed into the deliberations of the Commission, the Council and/or the Parliament. “A concrete example of this is that the EESC was the first to call for a true European health union,” says Schweng.

    And what does she have to say about the allegations? “In my capacity as President, I listened carefully to each of the victims of harassment or serious misconduct identified by OLAF in order to reach fair solutions. The EESC departments then followed up on this process and in all cases came to an agreement with the victims. On 13 April 2022, in a public statement on the EESC’s internet portal, I again officially apologized on behalf of the Committee to all the victims of the case at hand.”

    Schweng explains that the European Parliament’s decision to postpone the discharge of the EESC to 2020 was based on the delayed implementation of the settlement agreement with one victim of bullying and delays in concluding such agreements with two other victims of serious misconduct. “The process has indeed dragged on longer, but this is for the essential reason that we have worked beyond purely legal obligations to find the best solutions for victims.”

    Lobby for civil society

    The EESC now provides monthly updates to the EP rapporteur and shadow rapporteurs for the 2020 discharge.

    But we can also dig deeper into the question of legitimacy and turn the problem the other way around: If the EESC is abolished, will the Committee of the Regions also be dissolved? And who could then represent the voice of civil society in a city where an estimated 48,000 lobbyists work, the majority of them from the industry?

    So it is no coincidence that the Conference on the Future of Europe demands a strengthening of the EESC’s institutional role in its final recommendations presented on May 9. Acknowledging that “a vibrant civil society contributes to fulfilling the conditions for EU membership,” the conference proposes empowering the EESC as a “facilitator and guarantor of participatory democracy activities, including structured dialogue with civil society organizations and citizens’ panels”.

    In times when political debate can very quickly degenerate into fistfights and shitstorms, it seems more than necessary to be able to preserve everything that promotes “structured dialogue” and calms politically, since it is based on the culture of compromise – which is far from being the dirty word it is always made out to be – between citizens and their institutions.

    With this in mind, one might think: Yes to a restructuring of the governance of the EESC, but not to its abolition. This would certainly improve the “whim of the gods”.

    • EU
    • European Commission

    Europe.Table Editorial Office

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