Table.Briefing: Europe (English)

Pro-European coalition holds + Will Tubiana succeed Attal? + Election of EP coordinators

Dear reader,

The new European Parliament was constituted on Tuesday and the prominent posts were distributed: Roberta Metsola remains President of the Parliament, as expected, and the election of her 14 Vice-Presidents also brought few surprises (see our Analysis in today’s issue). As of today, the posts of coordinators of the parliamentary groups, who have more influence on specific legislation in the committees, will be up for grabs. Candidates can register until the evening and the election will occur on Monday.

Over the past five years, many of the coveted posts have been secured by CDU and CSU MEPs, in particular, who made up nine of the 20 coordinators in the EPP Group. Most of them also want to play a leading role in the new legislature: Christian Ehler in the Industry Committee ITRE, Andreas Schwab in the Internal Market Committee IMCO, Peter Liese in ENVI, Markus Ferber in ECON, Jens Gieseke in TRAN, Dennis Radtke in EMPL, Axel Voß in JURI, Michael Gahler in the Foreign Affairs Committee.

In the Agriculture Committee, however, the current chairman Norbert Lins is giving way to Herbert Dorfmann from South Tyrol. Veronika Vrecionová, a member of the ECR, is to become the new chair of the committee.

The situation is similar for the SPD: Birgit Sippel wants to remain the Social Democrats’ coordinator on the LIBE Committee on Internal Affairs, as do Tiemo Wölken on the ENVI and Udo Bullmann on the Development Committee. Maria Noichl also has renewed ambitions; it remains to be seen whether she will run for the Agriculture Committee or the Gender Equality Committee (FEMM).

I hope you find today’s issue an informative read.

Your
Till Hoppe
Image of Till  Hoppe

Feature

Election of the Presidium in Parliament sends a positive signal for von der Leyen vote

The agreements between Christian Democrats, Socialists, Liberals and Greens have held in the elections for the new Bureau of the European Parliament. The members of the political groups of the platform supporting the “Von der Leyen Commission II“, i.e. EPP, S&D, Renew, as well as the Green Group, voted in such a way that they did not allow any candidate of the pro-European parties to fail. This is seen as an indication that Ursula von der Leyen also has a good chance of winning a majority of at least 361 votes when the European Parliament votes on a second term for her as Commission President on Thursday.

Von der Leyen has campaigned intensively for MEPs in recent weeks: She visited all parliamentary groups apart from the two on the right and held dozens of one-to-one meetings with MEPs whose votes she could not be sure of. The current vote calculations give her reason to be confident, but von der Leyen cannot lull herself into a sense of security.

93 votes above the required minimum

The EPP, S&D and Renew together have 401 seats. There are also 53 seats for the Greens, even though they will probably not be part of the informal coalition. Together, the four groups have 454 MEPs, 93 seats more than von der Leyen needs for her election.

But there will be dissenters. MEPs assume that there will be significantly fewer no votes from the CDU/CSU group and the Europa SPD than five years ago. There is uncertainty among the Liberals. Marie-Agnes Strack-Zimmermann, for example, has not yet indicated how she will vote. The three members of the Free Voters have also not yet given a signal. Five Irish members of the Renew Group expressed reservations last week.

Five ECR votes are considered safe

On the other hand, there are signals from the Greens that a considerable part of the parliamentary group will vote for von der Leyen if her guidelines for the next mandate do not contradict Green demands. The guidelines are to be presented to the parliamentary groups on Wednesday evening or Thursday morning. In the ECR group, it is becoming apparent that the three Czech MEPs from ODS and the two Belgian MEPs from the NVA will vote in favor of von der Leyen. There are initial indications that Georgia Meloni, leader of the conservative ECR party family, is encouraging the 24 Fratelli MEPs to vote in favor of von der Leyen.

Elections to the presidency of parliament

The election result was particularly good for Roberta Metsola, who was re-elected President of the European Parliament with 80% of the votes cast. Metsola received strong support far beyond her own camp. During the group meeting, EPP Group Leader Manfred Weber acknowledged that the last time Jerzy Buzek from Poland had received a similarly good result was in 2009 when he was elected President of the Parliament. She received 562 votes. The term of office of the EPP politician from Malta is half of the parliamentary term, two and a half years. Her opponent, the Spaniard Irene Montero from the Left, received 61 votes.

Eleven out of 14 Vice Presidents were elected in the first round of voting. The cordon sanitaire held. No candidate from the radical right was elected to a position of responsibility. The necessary absolute majority of votes cast was achieved:

  • Sabine Verheyen CDU (604 votes)
  • Ewa Kopacz EPP (572)
  • Esteban González Pons EPP (478)
  • Katarina Barley SPD (450)
  • Pina Picierno S&D (405)
  • Viktor Negrescu S&D (394)
  • Martin Hojsik Renew (393)
  • Christel Schaldemose S&D (378)
  • Javi López S&D (377)
  • Sophie Wilmès Renew (371)
  • Nicolae Stefánutá Greens (347)

Elected in the second ballot:

  • Antonella Sberna ECR (314)
  • Robert Zile ECR (495)
  • Younous Omarjee Left (311)
Translation missing.

CO2 fleet legislation contradicts Paris climate targets

As the climate targets for passenger cars are likely to be massively missed, a group of researchers is calling for an immediate and comprehensive revision of the EU’s CO2 fleet legislation. This is the central message of the white paper “CO2 emission regulations for passenger cars” from the International Association of Sustainable Drivetrain and Vehicle Technology Research (IASTEC). The paper was largely written by Thomas Koch, Head of the Institute for Piston Engines at the Karlsruhe Institute of Technology (KIT).

The EU’s CO2 fleet regulation stipulates that manufacturers must reduce the average CO2 emissions of new cars to zero grams per kilometer driven by 2035 with intermediate steps. Otherwise, manufacturers face high fines.

The key message from Koch and his team is that EU legislation massively underestimates the real CO2 emissions of new vehicles, especially in 2030. EU legislation stipulates that new vehicles must not emit more than 49 grams of CO2 per kilometer driven on average in 2030. The “lack of a physical basis for the legislation” leads to significantly higher real CO2 emissions compared to the emission limit value.

Footprint of electric cars: 157 grams of CO2 per kilometer

According to the researchers’ criticism, the legislation does not take into account all real emissions from new cars because it is based purely on a tank-to-wheel analysis. Only the CO2 emissions of vehicles with combustion engines are taken into account, and the CO2 emissions associated with the production and operation of battery electric vehicles are completely ignored. For example, after a mileage of 210,000 kilometers, an EV causes CO2 emissions of 33 tons.

This corresponds to emissions of 157 grams of CO2 per kilometer driven. The value of 157 grams of CO2 per kilometer driven by an EV is contrary to EU legislation, which stipulates a maximum value of 49 grams in 2030. However, the EV is not included in the recording of CO2 emissions according to fleet legislation with the real value, but with the value of zero grams of CO2 per kilometer driven, because only the emissions at the tailpipe are measured. The researchers’ verdict: “The effects of the legislation therefore contradict the goals of the Paris Agreement to effectively reduce greenhouse gas emissions.”

With a mileage of 210,000 kilometers, the production of the drivetrain of EVs produces the equivalent of 76 grams of CO2 per kilometer driven. For a combustion engine, this value is 38 grams of CO2.

2030: 1.24 EVs for every combustion engine

The paper also sets out how the ramp-up of EV technology must develop by 2030 according to EU fleet legislation if the current legislation remains in place. According to the paper, 1.24 EVs must be registered for every newly registered combustion engine across the EU in 2030. In April, purely battery-electric vehicles accounted for 11.9 percent of new registrations in the EU. Pure combustion engines had a share of 48.9 percent.

The paper calls on the EU legislator to swiftly amend the CO2 fleet legislation. The amendment must meet the following objectives:

  • Sustainability of powertrains and compliance with the Paris climate targets
  • Tightening the CO2 fleet limits, taking into account actual emissions
  • Re-introduction of the carbon correction factor

Hungary calls for EV subsidies

The background to the debate on the reassessment of emissions from EVs is also the demand by Christian Democrats and right-wing parties to reverse the phase-out of combustion engines from 2035 via a further reform of EU fleet regulation. In the European election campaign, the CDU/CSU also promised to replace combustion engine technology with CO2-neutral e-fuels and thus extend their use.

However, the return of the combustion engine is considered rather unlikely. The Hungarian Council Presidency is also in favor of a more attractive and competitive e-car market instead of calling for the further development of combustion engines or e-fuels.

In a discussion paper by the Council Presidency, which was discussed at the Competitiveness Council last week and is available to Table.Briefings, the authors call for more support for the European EV market. Hungary is seen as a promoter of electromobility, especially as Chinese manufacturers want to invest in battery factories and production facilities in the country.

In it, they demand:

  • Further strengthening of the AFIR (Alternative Fuel Infrastructure Regulation): Charging points for light commercial vehicles every 50 km (by 2027) with at least 4 charging points with at least 150 kW each, but preferably 300 kW, with a total capacity of at least 3 kW for EVs and at least 1.5 kW for hybrids. The capacity of each charging pool should be increased to 900 kW. Fast charging points should be equipped with at least 150 kW, preferably 300 kW.
  • EU funding program totaling 30 billion euros by 2035: Funding for public charging stations for cars, trucks, buses and coaches, as well as for network expansion. Further subsidies for households amounting to 900-1500 euros or 60 percent of the cost of a charging point.
  • Simplified and more flexible approval procedures to speed up the expansion of the electricity grid.
  • Relaxation of aid schemes for R&D and production of CO2-neutral vehicles.
  • State subsidies of 4,500 euros per battery-powered electric car, financed by 50 billion euros from the multi-year financial framework and revenue from emissions trading.
  • Specific subsidies to promote a second-hand market for EVs.
  • European fleet renewal program for commercial vehicles, especially trucks and buses.
  • Recycling obligation for used batteries.

According to information obtained by Table.Briefings, the countries discussed the proposals for several hours at the Competitiveness Council. The automotive countries in particular, including Germany, reportedly spoke out against state subsidy mechanisms.

  • Europäischer Rat
Translation missing.

News

France: Attal resigns, Tubiana possible successor

French President Emmanuel Macron accepted the resignation of Prime Minister Gabriel Attal on Tuesday. However, the current government will remain in office on a caretaker basis. It can no longer initiate legislation, but in the current unclear political situation, it cannot be toppled by a vote of no confidence.

This transitional period could last a few weeks and at least until the end of the Olympic Games, according to reports from Paris. Macron had initially rejected Attal’s request to resign, citing “the stability of the country”. The 17 ministers who won a seat in parliament in the election will be able to vote on the distribution of leadership posts at the constituent meeting of the National Assembly on Thursday.

Laurence Tubiana as candidate for left-wing alliance?

Meanwhile, the Socialist Party, the Greens and the Communist Party have agreed on Laurence Tubiana as their candidate for prime minister. Tubiana is an economist and diplomat, known on the climate scene as the architect of the 2015 Paris Agreement, but her potential candidacy has been met with fierce criticism from Jean-Luc Mélenchon’s left-wing La France Insoumise (LFI) party.

LFI criticizes Tubiana for being too close to Emmanuel Macron’s camp. LFI Chairman Manuel Bompard described the idea of proposing her for the post of Prime Minister as “not serious”, as this would “bring the Macronists in through the window”. Tubiana has already turned down the post of minister for the ecological transition under Macron twice before.

Major tensions in the left-wing alliance

The Left Party’s criticism of Tubiana has led to major tensions within the left-wing alliance Nouveau Front Populaire (NFP), which surprisingly won the parliamentary elections. The leader of the Communist Party, Fabien Roussel, called it a “sad spectacle” by the LFI. The leader of the Socialist Party, Olivier Faure, also criticized the LFI’s solo effort: three out of four parties and the majority of NFP parliamentarians were in favor of Tubiana, he emphasized.

In France, Tubiana’s negotiating skills and expertise go beyond climate issues. Lola Vallejo, special advisor for climate issues at the Institute for Sustainable Development and International Relations (Iddri), emphasizes Tubiana’s knowledge of economic, industrial, financial, agricultural and social issues. “She can move in very different circles, from diplomats to political representatives and industry bosses to NGOs”, says Vallejo. cst

Hydrogen in industry: EU Court of Auditors calls for strategy

According to a new report, the European Court of Auditors does not believe that the EU will be able to produce and import as much hydrogen as targeted by 2030. The auditors also call on the Commission to update its hydrogen strategy and set priorities. “Given the geopolitical importance of domestic production versus imports from third countries, which industries should be kept in the EU and at what price?” is one of the three key questions to which the Commission should find an answer.

Hydrogen-intensive primary products for industrial goods such as steel, chemicals and fertilizers can often be imported more cheaply. However, Court of Auditors member Stef Blok also warns: “The EU should decide on the strategic path to carbon neutrality without compromising the competitive situation of its key industries or creating new strategic dependencies.”

REPowerEU targets are being missed

The auditors are also calling for the targets for production and imports to be subjected to a reality check. In REPowerEU, following Russia’s invasion of Ukraine, the Commission set the EU target of producing and importing 10 million tons of hydrogen by 2030. According to the auditors, these targets are unlikely to be met.

Whether the sector targets for the use of green hydrogen in transport and industry from the Renewable Energy Directive (RED III) should therefore also be lowered remains unclear in the report. The auditors estimate the demand stimulated by political measures to be only 3.8 to 10.5 Mt by 2030 – far less than the REPowerEU target of increasing supply to 20 Mt. ber

  • Green hydrogen
  • Grüner Wasserstoff
  • Hydrogen
  • Industry
  • REPowerEU

Erik Marquardt new group leader of the Greens

Migration expert Erik Marquardt will lead the delegation of twelve German Green MEPs in the EU Parliament. He was elected unanimously on Tuesday. “Germany is more dependent on Europe than many people realize. As head of the delegation, I would like to help make this even more visible to the public and my party”, said Marquardt. Hannah Neumann and Alexandra Geese were elected as deputies.

In the last legislature, Marquardt was the asylum policy spokesperson for the Green Group in the EU Parliament; he will probably continue to hold this position. Now he is also taking over from Rasmus Andresen. luk

  • Die Grünen

Germany sees record decline in ETS emissions

In 2023, the 1,725 plants in Germany covered by the European Emissions Trading System (ETS) emitted around 289 million tons of carbon dioxide equivalents (CO2-eq). According to data from the German Environment Agency (UBA), this corresponds to a reduction of around 18 percent compared to the previous year – a record decline since the introduction of the ETS in 2005.

The ETS covers emissions from energy-intensive industry, the energy sector and European air traffic. According to the UBA, energy plant emissions dropped by 22 percent to 188 million tons of CO2-eq, the lowest level ever measured. This is primarily due to a lower energy demand from industry and private households, an increased share of renewables and the associated decline in fossil fuels.

Industrial emissions fell 10 percent to 101 million tons of CO2-eq, the lowest level since 2013. According to the UBA, this was due to cyclical declines in production in all sectors, mainly due to the effects of Russia’s war of aggression against Ukraine.

By contrast, aviation emissions in Germany have increased slightly compared to the previous year. In 2023, they totaled around 7.6 million tons of CO2-eq, an increase of around 4.5 percent. luk

  • Emissions trading
  • Emissionshandel
  • ETS

Serbia clears the way for extensive lithium production

Despite years of protests by environmentalists, the government in Serbia is clearing the way for lithium mining in the Jadar Valley in the west of the country. This was reported by the Serbian news agency Tanjug. One of Europe’s largest reserves of this globally scarce raw material, which is important for the electric car industry among other things, is said to be located near the town of Loznica. With a new decree, Belgrade bowed to a ruling handed down by the Serbian Constitutional Court a few days earlier. According to the ruling, the annulment of the regional planning procedure for the lithium mining project in 2022 was unlawful.

Lithium plays an important role in the construction of electric vehicles, but deposits are particularly scarce in Europe. According to Serbian media reports, German Chancellor Olaf Scholz plans to travel to Serbia on Friday to discuss the mining issue. An inquiry to the German government about this initially went unanswered.

Australian mining giant Rio Tinto, which has already acquired real estate in the region, has been interested in the project for years. Serbia’s Minister for Mining and Energy, Dubravka Djedovic Handanovic, explained that this project represents the future of Serbia’s economic integration in Europe.

According to estimates by Rio Tinto, this mine could produce 58,000 tons of lithium annually, Serbian media reported. This would cover the needs of 1.1 million EVs, which corresponds to around 17 percent of European production. Environmentalists criticize, among other things, that lithium mining contaminates the groundwater with heavy metals and therefore poses a risk to the drinking water supply for local residents. dpa

  • Lithium

Must-Reads

Net-Zero Industry Valleys in Europe – An Analysis of Location Factors and Cluster Policies for EU Regions cepStudy

Opinion

An adapted cohesion policy is indispensable

By Thomas Schwab
Thomas Schwab is Senior Expert European Economics at the Bertelsmann Stiftung.

The debate on the future of cohesion policy is gaining momentum. With around a third of the EU budget, it is moving to the center of the upcoming negotiations for the Multiannual Financial Framework 2028 to 2034. With the final report of the Centre for European Economic Research published on Monday, Christian Lindner built a bridge between the debate on cohesion policy and that on the next EU budget.

The newly elected European Parliament and the next European Commission are facing major tasks that need to be financed. The Russian war of aggression against Ukraine highlights the need for a defense policy, more intense trade competition calls for measures to strengthen European competitiveness and the transformation to climate neutrality requires hundreds of billions in additional investment every year.

On the other hand, the financial leeway is getting tighter. The repayment of NextGenEU, the debt-financed coronavirus recovery program, will require around €30 billion per year from 2028 – around one-sixth of the current EU budget.

Increasing or redistributing the EU budget

There is therefore a need for action to finance the European project. Two options are available: An increase in the budget – i.e. higher membership fees or additional own funds – or a redistribution of the current financial resources.

In this mixed situation, cohesion policy, the European structural and regional policy, takes center stage. At around €50 billion a year, it is the second largest area of expenditure after the Common Agricultural Policy (CAP). Given recent farmers’ protests, there is a reluctance to make cuts to the CAP, which means that cohesion policy is now under scrutiny.

Too many objectives for cohesion policy

The first point of discussion concerns the objectives of European cohesion policy. The treaty’s objective of creating economic, social and territorial cohesion is reflected in supportive measures to manage the green and digital transformation, the promotion of research and development, labor market policy measures and much more. The resulting multitude of objectives for cohesion policy makes it difficult to communicate and its impact difficult to evaluate.

The objectives of cohesion policy are sometimes even in conflict with each other. Although structural policy measures such as R&D funding to increase competitiveness in weaker regions reduce the gap between regions, they pose new challenges in terms of income distribution, as better-educated people benefit more from them.

Positive effect under conditions

In addition to the disagreement about the objectives of cohesion policy, there are questions about its successes to date. Although the disparities in Europe have decreased in recent decades, the development varies depending on the indicator and level of observation. However, regions in Eastern Europe have developed particularly dynamically, while regions in Southern Europe have stagnated.

The contribution of cohesion policy to these developments is difficult to isolate due to the large number of macroeconomic factors and political measures. Academic studies show an impact, but this requires conditions such as sufficient institutional capacity in the regions.

Wealthy regions also benefit

Even if the majority of cohesion funds flow into weaker regions, wealthier regions also benefit from cohesion policy. This is currently justified by the upcoming challenges for these regions in the green and digital transition, which do not necessarily correlate with their current economic strength.

The involvement of wealthier regions in cohesion policy to form cross-border cooperation and exchange experiences should be in everyone’s interest: learning from each other works best based on best practice solutions, which can often be found in the wealthier regions.

Reorientation of cohesion policy necessary

Overcoming the challenges in the areas of defense, competitiveness, and green transformation requires finding a balance between efficiency and distributive justice. Efficiency and distributive justice do not necessarily have to contradict each other: Strengthening competitiveness, for example, requires the use of all ideas and creativity in Europe regardless of where people live, and the energy transition can bring new opportunities for weaker rural regions.

However, for all people and regions to benefit from this, accompanying measures are required. A strong cohesion policy that is adapted to the new challenges is essential for this. Further discussions in the coming months will point the way forward.

  • Bauernproteste

Dessert

Von der Leyen again strives for gender parity in new commission

If EU Commission President Ursula von der Leyen receives the hoped-for majority for a second term of office in the European Parliament on Thursday, she wants to run the Berlaymont again with a Commission made up of equal numbers of men and women. She explicitly announced this in her candidacy speech in Strasbourg in 2019.

At the time, it did not initially look as though she would keep her promise because the member states wanted to send mainly men to Brussels out of old habit. Von der Leyen prevailed, however, because she called on EU member states to nominate one woman and one man each for the Commission post.

Once again, von der Leyen will have to help a little if she wants to achieve a balanced body. Several member states want to hold on to their male officeholders. Latvia has already nominated the current Vice Executive President Valdis Dombrovskis for a new term of office, his third. Slovakia wants to send Maroš Šefčovič again, who has been an EU Commissioner since 2009. French President Emmanuel Macron is sticking with Thierry Breton in politically uncertain times. The Greek Margaritis Schinas wants to stay and can hope for the support of his home government. Hungary’s Commissioner Oliver Várhelyi is also speculating on a second term of office.

Spain, Sweden and Finland have at least announced their intention to send women to Brussels. But that will not be enough, as men are the favorites in other countries. Austria will most likely opt for the current Finance Minister Magnus Brunner and a man is also expected to come from Luxembourg.

The letters are already ready in Brussels in which von der Leyen once again wants to request two proposals for the Commission posts. However, she will probably make an exception for the incumbents. It is difficult to imagine that she will ask Macron to propose a woman after he has already publicly declared his support for Breton. Countries that send women could hope for attractive dossiers. Silke Wettach

Europe.Table Editorial Team

EUROPE.TABLE EDITORIAL OFFICE

Licenses:
    Dear reader,

    The new European Parliament was constituted on Tuesday and the prominent posts were distributed: Roberta Metsola remains President of the Parliament, as expected, and the election of her 14 Vice-Presidents also brought few surprises (see our Analysis in today’s issue). As of today, the posts of coordinators of the parliamentary groups, who have more influence on specific legislation in the committees, will be up for grabs. Candidates can register until the evening and the election will occur on Monday.

    Over the past five years, many of the coveted posts have been secured by CDU and CSU MEPs, in particular, who made up nine of the 20 coordinators in the EPP Group. Most of them also want to play a leading role in the new legislature: Christian Ehler in the Industry Committee ITRE, Andreas Schwab in the Internal Market Committee IMCO, Peter Liese in ENVI, Markus Ferber in ECON, Jens Gieseke in TRAN, Dennis Radtke in EMPL, Axel Voß in JURI, Michael Gahler in the Foreign Affairs Committee.

    In the Agriculture Committee, however, the current chairman Norbert Lins is giving way to Herbert Dorfmann from South Tyrol. Veronika Vrecionová, a member of the ECR, is to become the new chair of the committee.

    The situation is similar for the SPD: Birgit Sippel wants to remain the Social Democrats’ coordinator on the LIBE Committee on Internal Affairs, as do Tiemo Wölken on the ENVI and Udo Bullmann on the Development Committee. Maria Noichl also has renewed ambitions; it remains to be seen whether she will run for the Agriculture Committee or the Gender Equality Committee (FEMM).

    I hope you find today’s issue an informative read.

    Your
    Till Hoppe
    Image of Till  Hoppe

    Feature

    Election of the Presidium in Parliament sends a positive signal for von der Leyen vote

    The agreements between Christian Democrats, Socialists, Liberals and Greens have held in the elections for the new Bureau of the European Parliament. The members of the political groups of the platform supporting the “Von der Leyen Commission II“, i.e. EPP, S&D, Renew, as well as the Green Group, voted in such a way that they did not allow any candidate of the pro-European parties to fail. This is seen as an indication that Ursula von der Leyen also has a good chance of winning a majority of at least 361 votes when the European Parliament votes on a second term for her as Commission President on Thursday.

    Von der Leyen has campaigned intensively for MEPs in recent weeks: She visited all parliamentary groups apart from the two on the right and held dozens of one-to-one meetings with MEPs whose votes she could not be sure of. The current vote calculations give her reason to be confident, but von der Leyen cannot lull herself into a sense of security.

    93 votes above the required minimum

    The EPP, S&D and Renew together have 401 seats. There are also 53 seats for the Greens, even though they will probably not be part of the informal coalition. Together, the four groups have 454 MEPs, 93 seats more than von der Leyen needs for her election.

    But there will be dissenters. MEPs assume that there will be significantly fewer no votes from the CDU/CSU group and the Europa SPD than five years ago. There is uncertainty among the Liberals. Marie-Agnes Strack-Zimmermann, for example, has not yet indicated how she will vote. The three members of the Free Voters have also not yet given a signal. Five Irish members of the Renew Group expressed reservations last week.

    Five ECR votes are considered safe

    On the other hand, there are signals from the Greens that a considerable part of the parliamentary group will vote for von der Leyen if her guidelines for the next mandate do not contradict Green demands. The guidelines are to be presented to the parliamentary groups on Wednesday evening or Thursday morning. In the ECR group, it is becoming apparent that the three Czech MEPs from ODS and the two Belgian MEPs from the NVA will vote in favor of von der Leyen. There are initial indications that Georgia Meloni, leader of the conservative ECR party family, is encouraging the 24 Fratelli MEPs to vote in favor of von der Leyen.

    Elections to the presidency of parliament

    The election result was particularly good for Roberta Metsola, who was re-elected President of the European Parliament with 80% of the votes cast. Metsola received strong support far beyond her own camp. During the group meeting, EPP Group Leader Manfred Weber acknowledged that the last time Jerzy Buzek from Poland had received a similarly good result was in 2009 when he was elected President of the Parliament. She received 562 votes. The term of office of the EPP politician from Malta is half of the parliamentary term, two and a half years. Her opponent, the Spaniard Irene Montero from the Left, received 61 votes.

    Eleven out of 14 Vice Presidents were elected in the first round of voting. The cordon sanitaire held. No candidate from the radical right was elected to a position of responsibility. The necessary absolute majority of votes cast was achieved:

    • Sabine Verheyen CDU (604 votes)
    • Ewa Kopacz EPP (572)
    • Esteban González Pons EPP (478)
    • Katarina Barley SPD (450)
    • Pina Picierno S&D (405)
    • Viktor Negrescu S&D (394)
    • Martin Hojsik Renew (393)
    • Christel Schaldemose S&D (378)
    • Javi López S&D (377)
    • Sophie Wilmès Renew (371)
    • Nicolae Stefánutá Greens (347)

    Elected in the second ballot:

    • Antonella Sberna ECR (314)
    • Robert Zile ECR (495)
    • Younous Omarjee Left (311)
    Translation missing.

    CO2 fleet legislation contradicts Paris climate targets

    As the climate targets for passenger cars are likely to be massively missed, a group of researchers is calling for an immediate and comprehensive revision of the EU’s CO2 fleet legislation. This is the central message of the white paper “CO2 emission regulations for passenger cars” from the International Association of Sustainable Drivetrain and Vehicle Technology Research (IASTEC). The paper was largely written by Thomas Koch, Head of the Institute for Piston Engines at the Karlsruhe Institute of Technology (KIT).

    The EU’s CO2 fleet regulation stipulates that manufacturers must reduce the average CO2 emissions of new cars to zero grams per kilometer driven by 2035 with intermediate steps. Otherwise, manufacturers face high fines.

    The key message from Koch and his team is that EU legislation massively underestimates the real CO2 emissions of new vehicles, especially in 2030. EU legislation stipulates that new vehicles must not emit more than 49 grams of CO2 per kilometer driven on average in 2030. The “lack of a physical basis for the legislation” leads to significantly higher real CO2 emissions compared to the emission limit value.

    Footprint of electric cars: 157 grams of CO2 per kilometer

    According to the researchers’ criticism, the legislation does not take into account all real emissions from new cars because it is based purely on a tank-to-wheel analysis. Only the CO2 emissions of vehicles with combustion engines are taken into account, and the CO2 emissions associated with the production and operation of battery electric vehicles are completely ignored. For example, after a mileage of 210,000 kilometers, an EV causes CO2 emissions of 33 tons.

    This corresponds to emissions of 157 grams of CO2 per kilometer driven. The value of 157 grams of CO2 per kilometer driven by an EV is contrary to EU legislation, which stipulates a maximum value of 49 grams in 2030. However, the EV is not included in the recording of CO2 emissions according to fleet legislation with the real value, but with the value of zero grams of CO2 per kilometer driven, because only the emissions at the tailpipe are measured. The researchers’ verdict: “The effects of the legislation therefore contradict the goals of the Paris Agreement to effectively reduce greenhouse gas emissions.”

    With a mileage of 210,000 kilometers, the production of the drivetrain of EVs produces the equivalent of 76 grams of CO2 per kilometer driven. For a combustion engine, this value is 38 grams of CO2.

    2030: 1.24 EVs for every combustion engine

    The paper also sets out how the ramp-up of EV technology must develop by 2030 according to EU fleet legislation if the current legislation remains in place. According to the paper, 1.24 EVs must be registered for every newly registered combustion engine across the EU in 2030. In April, purely battery-electric vehicles accounted for 11.9 percent of new registrations in the EU. Pure combustion engines had a share of 48.9 percent.

    The paper calls on the EU legislator to swiftly amend the CO2 fleet legislation. The amendment must meet the following objectives:

    • Sustainability of powertrains and compliance with the Paris climate targets
    • Tightening the CO2 fleet limits, taking into account actual emissions
    • Re-introduction of the carbon correction factor

    Hungary calls for EV subsidies

    The background to the debate on the reassessment of emissions from EVs is also the demand by Christian Democrats and right-wing parties to reverse the phase-out of combustion engines from 2035 via a further reform of EU fleet regulation. In the European election campaign, the CDU/CSU also promised to replace combustion engine technology with CO2-neutral e-fuels and thus extend their use.

    However, the return of the combustion engine is considered rather unlikely. The Hungarian Council Presidency is also in favor of a more attractive and competitive e-car market instead of calling for the further development of combustion engines or e-fuels.

    In a discussion paper by the Council Presidency, which was discussed at the Competitiveness Council last week and is available to Table.Briefings, the authors call for more support for the European EV market. Hungary is seen as a promoter of electromobility, especially as Chinese manufacturers want to invest in battery factories and production facilities in the country.

    In it, they demand:

    • Further strengthening of the AFIR (Alternative Fuel Infrastructure Regulation): Charging points for light commercial vehicles every 50 km (by 2027) with at least 4 charging points with at least 150 kW each, but preferably 300 kW, with a total capacity of at least 3 kW for EVs and at least 1.5 kW for hybrids. The capacity of each charging pool should be increased to 900 kW. Fast charging points should be equipped with at least 150 kW, preferably 300 kW.
    • EU funding program totaling 30 billion euros by 2035: Funding for public charging stations for cars, trucks, buses and coaches, as well as for network expansion. Further subsidies for households amounting to 900-1500 euros or 60 percent of the cost of a charging point.
    • Simplified and more flexible approval procedures to speed up the expansion of the electricity grid.
    • Relaxation of aid schemes for R&D and production of CO2-neutral vehicles.
    • State subsidies of 4,500 euros per battery-powered electric car, financed by 50 billion euros from the multi-year financial framework and revenue from emissions trading.
    • Specific subsidies to promote a second-hand market for EVs.
    • European fleet renewal program for commercial vehicles, especially trucks and buses.
    • Recycling obligation for used batteries.

    According to information obtained by Table.Briefings, the countries discussed the proposals for several hours at the Competitiveness Council. The automotive countries in particular, including Germany, reportedly spoke out against state subsidy mechanisms.

    • Europäischer Rat
    Translation missing.

    News

    France: Attal resigns, Tubiana possible successor

    French President Emmanuel Macron accepted the resignation of Prime Minister Gabriel Attal on Tuesday. However, the current government will remain in office on a caretaker basis. It can no longer initiate legislation, but in the current unclear political situation, it cannot be toppled by a vote of no confidence.

    This transitional period could last a few weeks and at least until the end of the Olympic Games, according to reports from Paris. Macron had initially rejected Attal’s request to resign, citing “the stability of the country”. The 17 ministers who won a seat in parliament in the election will be able to vote on the distribution of leadership posts at the constituent meeting of the National Assembly on Thursday.

    Laurence Tubiana as candidate for left-wing alliance?

    Meanwhile, the Socialist Party, the Greens and the Communist Party have agreed on Laurence Tubiana as their candidate for prime minister. Tubiana is an economist and diplomat, known on the climate scene as the architect of the 2015 Paris Agreement, but her potential candidacy has been met with fierce criticism from Jean-Luc Mélenchon’s left-wing La France Insoumise (LFI) party.

    LFI criticizes Tubiana for being too close to Emmanuel Macron’s camp. LFI Chairman Manuel Bompard described the idea of proposing her for the post of Prime Minister as “not serious”, as this would “bring the Macronists in through the window”. Tubiana has already turned down the post of minister for the ecological transition under Macron twice before.

    Major tensions in the left-wing alliance

    The Left Party’s criticism of Tubiana has led to major tensions within the left-wing alliance Nouveau Front Populaire (NFP), which surprisingly won the parliamentary elections. The leader of the Communist Party, Fabien Roussel, called it a “sad spectacle” by the LFI. The leader of the Socialist Party, Olivier Faure, also criticized the LFI’s solo effort: three out of four parties and the majority of NFP parliamentarians were in favor of Tubiana, he emphasized.

    In France, Tubiana’s negotiating skills and expertise go beyond climate issues. Lola Vallejo, special advisor for climate issues at the Institute for Sustainable Development and International Relations (Iddri), emphasizes Tubiana’s knowledge of economic, industrial, financial, agricultural and social issues. “She can move in very different circles, from diplomats to political representatives and industry bosses to NGOs”, says Vallejo. cst

    Hydrogen in industry: EU Court of Auditors calls for strategy

    According to a new report, the European Court of Auditors does not believe that the EU will be able to produce and import as much hydrogen as targeted by 2030. The auditors also call on the Commission to update its hydrogen strategy and set priorities. “Given the geopolitical importance of domestic production versus imports from third countries, which industries should be kept in the EU and at what price?” is one of the three key questions to which the Commission should find an answer.

    Hydrogen-intensive primary products for industrial goods such as steel, chemicals and fertilizers can often be imported more cheaply. However, Court of Auditors member Stef Blok also warns: “The EU should decide on the strategic path to carbon neutrality without compromising the competitive situation of its key industries or creating new strategic dependencies.”

    REPowerEU targets are being missed

    The auditors are also calling for the targets for production and imports to be subjected to a reality check. In REPowerEU, following Russia’s invasion of Ukraine, the Commission set the EU target of producing and importing 10 million tons of hydrogen by 2030. According to the auditors, these targets are unlikely to be met.

    Whether the sector targets for the use of green hydrogen in transport and industry from the Renewable Energy Directive (RED III) should therefore also be lowered remains unclear in the report. The auditors estimate the demand stimulated by political measures to be only 3.8 to 10.5 Mt by 2030 – far less than the REPowerEU target of increasing supply to 20 Mt. ber

    • Green hydrogen
    • Grüner Wasserstoff
    • Hydrogen
    • Industry
    • REPowerEU

    Erik Marquardt new group leader of the Greens

    Migration expert Erik Marquardt will lead the delegation of twelve German Green MEPs in the EU Parliament. He was elected unanimously on Tuesday. “Germany is more dependent on Europe than many people realize. As head of the delegation, I would like to help make this even more visible to the public and my party”, said Marquardt. Hannah Neumann and Alexandra Geese were elected as deputies.

    In the last legislature, Marquardt was the asylum policy spokesperson for the Green Group in the EU Parliament; he will probably continue to hold this position. Now he is also taking over from Rasmus Andresen. luk

    • Die Grünen

    Germany sees record decline in ETS emissions

    In 2023, the 1,725 plants in Germany covered by the European Emissions Trading System (ETS) emitted around 289 million tons of carbon dioxide equivalents (CO2-eq). According to data from the German Environment Agency (UBA), this corresponds to a reduction of around 18 percent compared to the previous year – a record decline since the introduction of the ETS in 2005.

    The ETS covers emissions from energy-intensive industry, the energy sector and European air traffic. According to the UBA, energy plant emissions dropped by 22 percent to 188 million tons of CO2-eq, the lowest level ever measured. This is primarily due to a lower energy demand from industry and private households, an increased share of renewables and the associated decline in fossil fuels.

    Industrial emissions fell 10 percent to 101 million tons of CO2-eq, the lowest level since 2013. According to the UBA, this was due to cyclical declines in production in all sectors, mainly due to the effects of Russia’s war of aggression against Ukraine.

    By contrast, aviation emissions in Germany have increased slightly compared to the previous year. In 2023, they totaled around 7.6 million tons of CO2-eq, an increase of around 4.5 percent. luk

    • Emissions trading
    • Emissionshandel
    • ETS

    Serbia clears the way for extensive lithium production

    Despite years of protests by environmentalists, the government in Serbia is clearing the way for lithium mining in the Jadar Valley in the west of the country. This was reported by the Serbian news agency Tanjug. One of Europe’s largest reserves of this globally scarce raw material, which is important for the electric car industry among other things, is said to be located near the town of Loznica. With a new decree, Belgrade bowed to a ruling handed down by the Serbian Constitutional Court a few days earlier. According to the ruling, the annulment of the regional planning procedure for the lithium mining project in 2022 was unlawful.

    Lithium plays an important role in the construction of electric vehicles, but deposits are particularly scarce in Europe. According to Serbian media reports, German Chancellor Olaf Scholz plans to travel to Serbia on Friday to discuss the mining issue. An inquiry to the German government about this initially went unanswered.

    Australian mining giant Rio Tinto, which has already acquired real estate in the region, has been interested in the project for years. Serbia’s Minister for Mining and Energy, Dubravka Djedovic Handanovic, explained that this project represents the future of Serbia’s economic integration in Europe.

    According to estimates by Rio Tinto, this mine could produce 58,000 tons of lithium annually, Serbian media reported. This would cover the needs of 1.1 million EVs, which corresponds to around 17 percent of European production. Environmentalists criticize, among other things, that lithium mining contaminates the groundwater with heavy metals and therefore poses a risk to the drinking water supply for local residents. dpa

    • Lithium

    Must-Reads

    Net-Zero Industry Valleys in Europe – An Analysis of Location Factors and Cluster Policies for EU Regions cepStudy

    Opinion

    An adapted cohesion policy is indispensable

    By Thomas Schwab
    Thomas Schwab is Senior Expert European Economics at the Bertelsmann Stiftung.

    The debate on the future of cohesion policy is gaining momentum. With around a third of the EU budget, it is moving to the center of the upcoming negotiations for the Multiannual Financial Framework 2028 to 2034. With the final report of the Centre for European Economic Research published on Monday, Christian Lindner built a bridge between the debate on cohesion policy and that on the next EU budget.

    The newly elected European Parliament and the next European Commission are facing major tasks that need to be financed. The Russian war of aggression against Ukraine highlights the need for a defense policy, more intense trade competition calls for measures to strengthen European competitiveness and the transformation to climate neutrality requires hundreds of billions in additional investment every year.

    On the other hand, the financial leeway is getting tighter. The repayment of NextGenEU, the debt-financed coronavirus recovery program, will require around €30 billion per year from 2028 – around one-sixth of the current EU budget.

    Increasing or redistributing the EU budget

    There is therefore a need for action to finance the European project. Two options are available: An increase in the budget – i.e. higher membership fees or additional own funds – or a redistribution of the current financial resources.

    In this mixed situation, cohesion policy, the European structural and regional policy, takes center stage. At around €50 billion a year, it is the second largest area of expenditure after the Common Agricultural Policy (CAP). Given recent farmers’ protests, there is a reluctance to make cuts to the CAP, which means that cohesion policy is now under scrutiny.

    Too many objectives for cohesion policy

    The first point of discussion concerns the objectives of European cohesion policy. The treaty’s objective of creating economic, social and territorial cohesion is reflected in supportive measures to manage the green and digital transformation, the promotion of research and development, labor market policy measures and much more. The resulting multitude of objectives for cohesion policy makes it difficult to communicate and its impact difficult to evaluate.

    The objectives of cohesion policy are sometimes even in conflict with each other. Although structural policy measures such as R&D funding to increase competitiveness in weaker regions reduce the gap between regions, they pose new challenges in terms of income distribution, as better-educated people benefit more from them.

    Positive effect under conditions

    In addition to the disagreement about the objectives of cohesion policy, there are questions about its successes to date. Although the disparities in Europe have decreased in recent decades, the development varies depending on the indicator and level of observation. However, regions in Eastern Europe have developed particularly dynamically, while regions in Southern Europe have stagnated.

    The contribution of cohesion policy to these developments is difficult to isolate due to the large number of macroeconomic factors and political measures. Academic studies show an impact, but this requires conditions such as sufficient institutional capacity in the regions.

    Wealthy regions also benefit

    Even if the majority of cohesion funds flow into weaker regions, wealthier regions also benefit from cohesion policy. This is currently justified by the upcoming challenges for these regions in the green and digital transition, which do not necessarily correlate with their current economic strength.

    The involvement of wealthier regions in cohesion policy to form cross-border cooperation and exchange experiences should be in everyone’s interest: learning from each other works best based on best practice solutions, which can often be found in the wealthier regions.

    Reorientation of cohesion policy necessary

    Overcoming the challenges in the areas of defense, competitiveness, and green transformation requires finding a balance between efficiency and distributive justice. Efficiency and distributive justice do not necessarily have to contradict each other: Strengthening competitiveness, for example, requires the use of all ideas and creativity in Europe regardless of where people live, and the energy transition can bring new opportunities for weaker rural regions.

    However, for all people and regions to benefit from this, accompanying measures are required. A strong cohesion policy that is adapted to the new challenges is essential for this. Further discussions in the coming months will point the way forward.

    • Bauernproteste

    Dessert

    Von der Leyen again strives for gender parity in new commission

    If EU Commission President Ursula von der Leyen receives the hoped-for majority for a second term of office in the European Parliament on Thursday, she wants to run the Berlaymont again with a Commission made up of equal numbers of men and women. She explicitly announced this in her candidacy speech in Strasbourg in 2019.

    At the time, it did not initially look as though she would keep her promise because the member states wanted to send mainly men to Brussels out of old habit. Von der Leyen prevailed, however, because she called on EU member states to nominate one woman and one man each for the Commission post.

    Once again, von der Leyen will have to help a little if she wants to achieve a balanced body. Several member states want to hold on to their male officeholders. Latvia has already nominated the current Vice Executive President Valdis Dombrovskis for a new term of office, his third. Slovakia wants to send Maroš Šefčovič again, who has been an EU Commissioner since 2009. French President Emmanuel Macron is sticking with Thierry Breton in politically uncertain times. The Greek Margaritis Schinas wants to stay and can hope for the support of his home government. Hungary’s Commissioner Oliver Várhelyi is also speculating on a second term of office.

    Spain, Sweden and Finland have at least announced their intention to send women to Brussels. But that will not be enough, as men are the favorites in other countries. Austria will most likely opt for the current Finance Minister Magnus Brunner and a man is also expected to come from Luxembourg.

    The letters are already ready in Brussels in which von der Leyen once again wants to request two proposals for the Commission posts. However, she will probably make an exception for the incumbents. It is difficult to imagine that she will ask Macron to propose a woman after he has already publicly declared his support for Breton. Countries that send women could hope for attractive dossiers. Silke Wettach

    Europe.Table Editorial Team

    EUROPE.TABLE EDITORIAL OFFICE

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