RePowerEU + Defense fund + Battery regul • Table.Briefings

Dear reader,

The EU special summit begins today in Versailles. For one thing, the security and defense strategy “Strategic Compass” must be updated. After Russia’s invasion of Ukraine, “whole passages on Russia would have to be completely rewritten,” said an EU Foreign Service official. Second, plans for European defense and military capacity building would have to be improved. French President Emmanuel Macron wants to build up a substantial defense fund for this purpose – but not all countries are going along. Eric Bonse asked around in the run-up to the summit in Versailles.

Energy security remains the focus of the EU Commission’s current efforts. By the summer, the Commission and member states want to flesh out the announcements made in REPowerEU. Manuel Berkel gives an overview of the planned measures.

The war in Ukraine is also influencing the new battery regulation. By 2030, global demand could increase 14-fold. The EU does not want to make the same mistakes as with solar technology, but wants to cover a good part of the demand. The regulation is now increasingly not only about sustainability, human and environmental protection, but also very specifically about strategic raw material security, writes Christian Domke Seidel.

The innovations agreed by the European Parliament on Tuesday in the course of the EU electoral law reform flew somewhat under the radar: Transnational lists are to be introduced as early as the election in two years, as is the gender quota for electoral lists. The introduction of a 3.5 percent threshold for Germany was met with criticism. Read more about this in today’s News section.

Your
Lisa-Martina Klein

Macron wants EU debt for defense

By

Eric Bonse

Update and upgrade: At the special EU summit in Versailles on Thursday and Friday, security policy and common defense will be at the top of the agenda. Due to the war in Ukraine, this topic, which the current EU Council President and host Emmanuel Macron wanted to push anyway, has once again gained massive importance, according to EU circles in Brussels.

Specifically, this involves an update of the “Strategic Compass”, i.e. the new security and defense strategy. It is to be finalized at the Foreign Affairs Council on March 21 and adopted at the subsequent regular EU summit. The passages on Russia would have to be completely rewritten after the invasion of Ukraine, said an official of the EU’s External Action Service.

Lively discussions on this are expected in Versailles. The draft summit declaration calls the Ukraine war a “tectonic shift.” EU foreign affairs chief Josep Borrell told a debate at the European Parliament in Strasbourg that the EU must be ready to defend its values and its interests better than before. “Putin’s war” had proven that great power politics, which had been thought to have been overcome, had returned . The EU strategy must take this into account.

200 billion for defense

The plans for European defense and military capacity building, which have been pursued for years but have so far been rather modest, are to receive an upgrade. The main issue here is money. The draft summit declaration speaks of a “significant increase in military spending,” with priority given to investment and joint procurement.

But Macron wants more. He has brought a €200 billion defense fund into play, which is to be financed via EU debt along the lines of the COVID-19 reconstruction fund. The money could be used not only for defense equipment, but also for the security of supply for gas and oil and for foodstuffs (e.g. grain), according to the French EU presidency.

However, strong resistance is emerging. Unlike the reconstruction fund, Germany is not on board this time. There will be no second RRF (Recovery and Resilience Facility), said an EU diplomat. Chancellor Olaf Scholz has announced the creation of a €100 billion special fund for the German Armed Forces – and wants to leave it at that for now.

Netherlands does not want new debt

The Netherlands is also taking a stand. “At this point, I cannot agree to a NextGenerationEU 2.0,” said Prime Minister Mark Rutte in Paris. Rutte said that existing financial resources should first be exhausted before considering further EU debt. France nevertheless wants to press ahead. This option should not be taken off the table, said Europe Minister Clément Beaune.

No decisions are expected in Versailles; after all, this is an informal summit. The draft summit declaration does not yet mention a European defense fund. It is conceivable, however, that the EU Commission will be tasked with making a proposal for the regular March summit. The controversial taxonomy could also be discussed.

Analogous to the rules for sustainable energy, the Brussels authority is working on a social taxonomy. Spurred on by the war in Ukraine, armaments could also be included. But that, too, is controversial. The Social Democrats and Greens in the European Parliament support a “Europe of defense” – but they don’t want to hear anything about a social stamp for weapons.

REPowerEU: these are the next steps

By

Manuel Berkel

By the summer, the Commission aims to turn most of the announcements from REPowerEU into concrete legal acts, guidelines, and recommendations. Until then, intensive discussions with the member states are on the agenda. The Council of heads of state and government in Versailles, which begins today, provides an official framework. The agenda of the informal meeting includes measures to reduce energy dependence on Russia.

The Commission intends to draw up a draft gas storage law by April. In addition to mandatory minimum filling levels, it should also regulate a complete exemption from network charges. In addition, the draft is to include a procedure for sharing the costs of supply security fairly between the member states.

Germany already on track with renewables

In May, the commission will present recommendations on how to speed up approval processes for renewables. However, the commission is more likely to follow what Germany has already set in motion, says lawyer Frank Sailer of the Stiftung Umweltenergierecht. In the EEG amendment, it is to be legally regulated that the construction of renewable energies is in the overriding public interest and serves public safety. Such a legal clarification could prevent individual offices and courts from getting tangled up in one or another protracted detailed discussion.

For nature and species conservation, the Commission announces a guide for living labs in which innovative technologies for renewable energies can be tested. Small and medium-sized enterprises (SMEs) are to be given easier access to long-term power supply contracts (PPAs) by the end of the year, together with the European Investment Bank. Since renewable energies have low generation costs, this would also enable SMEs to secure low-cost electricity – provided that a sufficient number of new plants are built.

Fast approvals for hydrogen projects

A consultation on PPAs and faster approval procedures is still ongoing. The Commission’s initiative for a solar strategy, which is to be published in June, is also currently being consulted.

The Commission also promises to move quickly on the subject of hydrogen. The state aid reviews of the Important Projects of Common European Interest (IPCEIs) are to be completed by the summer. The prerequisite is that the applications are submitted early. The Commission promises a decision within six weeks.

New battery regulation: Europe’s sustainable re-industrialization

The energy transition, dependence on raw material imports, structural change in the industry, and new mobility concepts. The new battery regulation is something like a melting pot of central challenges for the European Union. Simona Bonafè, Italian S&D MEP and rapporteur of the ENVI Committee, ended the presentation of the key points of the new regulation accordingly emotional: “Can we cover the entire demand for raw materials ourselves? It’s hard to say. However, do we have an alternative? No, we don’t.”

With these urgent words, Bonafè once again emphasizes the importance of the new battery regulation. It has two key objectives. “The first is to protect human health and the environment. The second is to keep the battery value chain in Europe.” The EU sees batteries as one of the key technologies of the future. Not only to achieve the goal of carbon neutrality in 2050. They should also help with structural change in the economy and secure jobs.

Import independence through recycling

The new battery regulation aims to ensure that batteries are sustainable and circular throughout their life cycle. From development to disposal. This means that even the raw materials – which currently come largely from China – must be controlled. For example, child labor is prohibited during mining. Renewable energy must also be used in the production of battery cells and modules.

Batteries placed on the market in the EU from July 1, 2024, must have a carbon footprint statement. A CO2 intensity labeling requirement will then follow on January 1, 2026, and one for the proportion of recycled cobalt, lead, lithium and nickel from January 1, 2030. All these regulations will also apply to batteries imported from third countries.

In addition, the recycling of batteries is a central component of the new Battery Regulation. By December 2025, 70 percent of portable batteries are to be recollected, and by 2030 this figure is to be 80 percent. The ENVI committee is thus accelerating the plans. Originally, these quotas were to have been reached five years later. Recycling quotas have also been massively tightened. By 2026, 35 percent of the lithium used was originally to be recycled. Now it is 70 percent.

Battery technology to lead to re-industrialization

The EU is pushing hard in developing its own battery industry. Currently, 111 battery projects with an investment volume of €127 billion are being developed in member states. The goal is to have around 800,000 jobs in the battery industry across Europe by 2025. Five years later, enough batteries should be built in Europe to power 11 million electric cars. This would cover 90 percent of demand in Europe.

The battery industry is not an option, but an absolute necessity, says Bonafè. The basis for the optimism are studies that assume global demand for batteries will increase 14-fold by 2030. The EU aims to meet 17 percent of that demand. By 2040, the number of recyclable lithium batteries is expected to increase 700-fold. Bonafè stresses that the EU does not want to make the same mistake in the battery industry that it made with solar technology. The industry has almost completely migrated away after initial successes.

In view of the enormous quantities of lithium, but also nickel and cobalt required, it is clear, however, that production in Europe is not enough, Bonafè continued. Rather, batteries should form a circular economy. The stricter recycling quotas would take this into account. In addition, the batteries are to become easier to remove. For example, they may no longer be glued together so that they can not only be easily replaced but also collected.

This is associated with sometimes enormous costs for the economy. Bonafè, however, seems hardly willing to compromise: “We want to transform our economy and take a new direction. To do that, we need to invest in batteries. And the industry has to understand that this is not only a challenge and a big burden but also a big opportunity. Imports also cost money.”

New battery regulation is met with broad approval

After Bonafé’s presentation, the debate in parliament also focused on these imports. The focus was on Russia’s invasion of Ukraine. This war had shown that one should not be dependent on individual countries for raw materials. Accordingly, the parliamentarians from all groups who took the floor were unanimous.

Ismael Ertug (S&D) stressed the importance of the new battery regulation for achieving the climate targets and added: “Just a few weeks ago, we would have only talked about the environmental aspects. Now, however, nothing is the same anymore. Now it’s also about strategic raw material security.” Austrian Guenther Sidl (S&D) said the regulation sets standards. “Not only along the supply chain, but along the entire value chain.”

In principle, Antonius Manders (EPP) was also pleased, but he also emphasized that it was a pity that the planned battery deposit had not made it into the regulation. Among others, CDU environmental expert Hildegard Bentele had advocated such a system. Christian Domke Seidel

EU adopts fourth sanctions package

The EU is imposing further sanctions on Russia and its ally Belarus. The ambassadors of the member states agreed yesterday to include cryptocurrencies in the restrictions that apply to other financial transactions with Russia. In this way, they want to prevent Bitcoins and other cryptocurrencies from being used to circumvent punitive measures.

In addition, the EU is aiming at the Russian shipping sector: Technologies for navigation and radio communication will fall under the export ban, and safety equipment will require approval from the regulatory authorities (in Germany, the Federal Office of Economics and Export Control). The Russian Maritime Register of Shipping will be added to the list of state-owned enterprises that are not allowed to receive refinancing in the EU.

In addition, the EU sanctions another 14 businessmen plus family members and 146 representatives of the Russian Federation Council who had ratified the recognition of the independence of the separatist areas in eastern Ukraine. Among them are the heads of two fertilizer manufacturers, the CEO of the state airline Aeroflot and the head of VK, the operator of the largest social networks in Russia.

The member states had discussed even more far-reaching punitive measures, such as closing ports to Russian ships. However, the German government, in particular, opposed this. It argued that the first step was to assess the impact of the three far-reaching sanctions packages already adopted. For example, the central bank’s reserves stored abroad were frozen and seven banks were cut off from the Swift payment information system.

The Swift ban now also affects three Belarusian institutions, Belagroprombank, Bank Dabrabyt, and the Belarussian State Development Bank. Transactions with the central bank are also banned and deposits of more than €100,000 are prohibited.

Moscow threatens with counter-sanctions

Moscow yesterday threatened the West with tough countermeasures. “Russia’s response will be swift, deliberate, and sensitive to those it affects,” Russian news agency RIA quoted Dmitry Biritchevsky, head of the foreign ministry’s economic cooperation department, as saying. Details were not initially released.

Western sanctions are placing a considerable burden on the Russian financial system and economy. The rating agency Fitch lowered its credit rating from “B” to “C”. This threatens a default by Russia, which may not be able to meet some of its debt obligations in the wake of the sanctions.

Meanwhile, the government and central bank in Moscow are trying to cushion the impact. The central bank announced that citizens would not be allowed to withdraw more than $10,000 from foreign currency accounts. Russian banks are also prohibited from selling foreign currencies.

Meanwhile, President Vladimir Putin signed a law releasing funds from a national wealth fund for the purchase of government bonds and shares. In addition, a so-called “capital amnesty” was issued: this means that money taken abroad past the treasury can return to Russia without the threat of penalties or taxes.

In addition, Moscow is taking the first steps toward nationalizing the property of foreign companies that leave the country. The Commission for Legislative Activities is supporting a draft law that would allow companies more than 25 percent owned by foreigners from “unfriendly states” to be placed under external management, the ruling United Russia party says via the Telegram messenger service. This would serve to prevent bankruptcy and save jobs. tho/rtr

IfW: US oil embargo against Russia is only symbolic without EU

According to the Kiel Institute for the World Economy (IfW), the US import ban on Russian oil will hardly harm Russia’s economy. An oil embargo would only become much more effective if the EU also participated in it, it said in a statement on Wednesday, following corresponding model calculations at the institute. “The import stop of Russian oil by the US may be of high symbolic significance,” said IfW trade researcher Hendrik Mahlkow. “However, it causes practically no economic damage to the Russian economy and therefore has no direct impact on Vladimir Putin’s financial room for maneuver.”

According to the report, an import ban on Russian oil by the US, the UK, and Canada would reduce Russia’s economic output by only about 0.2 percent of its economic power in the long term. “The US imports only 4 percent of its oil from Russia ($6.7 billion). By producing shale oil, the US exports more oil than it imports and can completely cover its own oil needs,” the IfW said.

Embargo too expensive for the EU

An oil embargo would only become much more effective with EU participation. “In this case, Russia’s gross domestic product would fall permanently by 1.2 percent in the simulation,“ says the research institute. However, such a step would be costly for the EU because individual member countries would also suffer economic losses in the long term. In the case of Estonia, for example, these losses would be as high as 1.1 percent.

Germany would be affected relatively little, with its economy down 0.2 percent in the long run, the IfW said. An oil embargo against Russia would need the participation of the EU to be effective, Mahlkow said. “Even if the long-term damage to Western countries such as Germany is only very moderate, such a step is likely to lead to distortions and high price jumps in the short term.” dpa

EU states work on cyber shield

EU countries are preparing for an increase of cyberattacks in view of the conflict with Russia. Except for the incident at the satellite network operator Viasat, no significant increase in cyberattacks has been observed so far, said French Digital State Secretary Cédric O after a meeting of the responsible ministers in Nevers. However, the situation is being monitored very closely.

In view of the war in Ukraine, the French Council Presidency had changed the agenda of the informal meeting at short notice in order to discuss responses to Russian disinformation and possible hacker attacks. Cyberattacks are an integral part of the Russian security apparatus. Hackers had crippled parliamentary and government websites and installed malware on hundreds of government computers to delete data just before the invasion of Ukraine began. However, with the help of Western security experts, the malware was rendered harmless.

On the one hand, the EU states now want to help Ukraine maintain the functionality of civilian telecommunications and government networks as far as possible. On the other hand, they want to prepare themselves: “We must now construct a European cyber shield very quickly,” said Internal Market Commissioner Thierry Breton. A joint declaration by the member states envisages several initiatives, but most of them will not have an effect in the short term:

– The relevant security authorities at EU and national levels are to cooperate even more closely on network protection and exchange information in real-time.

– The EU Commission is to make funds available through a new Emergency Response Fund for Cybersecurity to respond to large-scale attacks.

– The Commission should ensure that the new European Cybersecurity Competence Centre (ECCC) in Bucharest can start work quickly.

– The Commission is to quickly present the planned Cyber Resilience Act, which is primarily intended to prescribe cybersecurity standards for networked products.

– Member states want to quickly conclude negotiations on the revision of the NIS Directive with security requirements for critical infrastructure operators.

– The EU cybersecurity agency Enisa, together with other relevant bodies, is to make recommendations on how to strengthen the resilience of the communications infrastructure.

Breton also promoted his plan to build an independent European satellite Internet, whose signals would be encrypted with quantum technology. One should not rely on a single infrastructure, the commissioner argued: “We need a backup“. tho

EU electoral law reform: transnational lists to come

In the course of the EU electoral law reform, the negotiators of the four major groups in the European Parliament have agreed on the introduction of transnational lists already for the European elections in 2024. As the negotiator for the Greens, Damian Boeselager, announced on Twitter, 28 MEPs are to be able to enter Parliament via such lists. Transnational movements must link parties in at least seven member states or collect a certain threshold of signatures in as many countries.

In addition, there will be a gender quota for electoral lists for the first time. The minimum age for voters will be lowered to 16, although national regulations will continue to apply here.

Another agreement concerns the introduction of a blocking clause. Accordingly, Germany would have to introduce a blocking clause of 3.5 percent. “This shameless self-service is an affront to the Federal Constitutional Court and an attack on our democracy,” criticized Patrick Breyer, MEP for the Pirate Party. The judges had condemned corresponding blocking clauses as unconstitutional. Smaller groups such as the Greens/EFA had spoken out against the clause, but could not prevail with it. The formal vote in Parliament is still pending. The governments in the Council must then reach an agreement and obtain the approval of their national parliaments. klm

Johannes Schraps – the team athlete

Johannes Schraps, Member of the German Bundestag, SPD, Member of the European Affairs Committee

His handball training kept him from taking steps abroad for a long time; but a torn cruciate ligament, additional studies, and an internship in Brussels turned Johannes Schraps into a convinced European. Today, the 38-year-old SPD member of the Bundestag is a full member of the European Affairs Committee and the Finance Committee, and is also a deputy member of the Foreign Affairs Committee and the Budget Committee. In the European Affairs Committee, Schraps is the SPD rapporteur for economic and monetary policy issues as well as for the EU’s external relations and European neighborhood policy, especially with neighboring countries in the east and in the Balkans.

Handball taught Schraps that you are stronger together than alone. This attitude permeates his political work: a strong Europe and European integration are among his core beliefs. “I find it extremely important that the traffic light coalition now more actively represents a pro-European attitude,” he says. In view of the Ukraine crisis, for example, it is imperative to adopt a pan-European stance.

Schraps knows no compromise when it comes to the rule of law. He also sees the fact that the traffic light coalition is taking a clearer line here vis-à-vis Poland or Hungary as a personal success: Schraps co-wrote a Bundestag resolution in 2019 that stipulates respect for the rule of law as a condition for receiving EU funding. “For me, the EU rule of law is the basis for the EU’s peace narrative,” Schraps says. “If EU states do not voluntarily submit to this rule of law, it endangers European peace.”

From local to European politics

Schraps grew up in the village of Groß Berkel in the Weserbergland region of Lower Saxony in an “SPD household,” as he puts it: both Schraps’ grandfather and father were local mayors, and his son founded a Young Socialists group in his community and joined the SPD at the age of 16. And, of course, handball. With VfL Hameln he made it into the third league. While studying political science in Bielefeld and Hamburg, he stayed true to the sport, training several times a week. “I didn’t want to let my teams down, so I never traveled for any length of time,” Schraps says. “Instead, I learned what team spirit really means.”

After injuring his cruciate ligament, Schraps used the time he had freed up for additional “Europe intensive” studies with a focus on EU law and economic history, which he completed parallel to his bachelor’s degree. During this time, he has to learn two foreign languages; he chooses Polish and Swedish, not Italian and French like most of his classmates. In his master’s studies, he spent an Erasmus year in Sweden and did an internship at the European Trade Union Institute in Brussels: “That was the spark that turned me into an idealist, an optimist and a European,” Schraps says. “Because I personally benefited from Europe.” Adrian Meyer

EUROPE.TABLE EDITORS

Till
Hoppe

Charlotte
Wirth

Falk
Steiner

Timo
Landenberger

Corinna
Visser

Lukas
Knigge

Eric
Bonse

Sarah
Schaefer

Manuel
Berkel

Lisa-Martina
Klein

Markus
Grabitz

Stephan
Israel

Claire
Stam

Dear reader,

The EU special summit begins today in Versailles. For one thing, the security and defense strategy “Strategic Compass” must be updated. After Russia’s invasion of Ukraine, “whole passages on Russia would have to be completely rewritten,” said an EU Foreign Service official. Second, plans for European defense and military capacity building would have to be improved. French President Emmanuel Macron wants to build up a substantial defense fund for this purpose – but not all countries are going along. Eric Bonse asked around in the run-up to the summit in Versailles.

Energy security remains the focus of the EU Commission’s current efforts. By the summer, the Commission and member states want to flesh out the announcements made in REPowerEU. Manuel Berkel gives an overview of the planned measures.

The war in Ukraine is also influencing the new battery regulation. By 2030, global demand could increase 14-fold. The EU does not want to make the same mistakes as with solar technology, but wants to cover a good part of the demand. The regulation is now increasingly not only about sustainability, human and environmental protection, but also very specifically about strategic raw material security, writes Christian Domke Seidel.

The innovations agreed by the European Parliament on Tuesday in the course of the EU electoral law reform flew somewhat under the radar: Transnational lists are to be introduced as early as the election in two years, as is the gender quota for electoral lists. The introduction of a 3.5 percent threshold for Germany was met with criticism. Read more about this in today’s News section.

Your
Lisa-Martina Klein

Macron wants EU debt for defense

By

Eric Bonse

Update and upgrade: At the special EU summit in Versailles on Thursday and Friday, security policy and common defense will be at the top of the agenda. Due to the war in Ukraine, this topic, which the current EU Council President and host Emmanuel Macron wanted to push anyway, has once again gained massive importance, according to EU circles in Brussels.

Specifically, this involves an update of the “Strategic Compass”, i.e. the new security and defense strategy. It is to be finalized at the Foreign Affairs Council on March 21 and adopted at the subsequent regular EU summit. The passages on Russia would have to be completely rewritten after the invasion of Ukraine, said an official of the EU’s External Action Service.

Lively discussions on this are expected in Versailles. The draft summit declaration calls the Ukraine war a “tectonic shift.” EU foreign affairs chief Josep Borrell told a debate at the European Parliament in Strasbourg that the EU must be ready to defend its values and its interests better than before. “Putin’s war” had proven that great power politics, which had been thought to have been overcome, had returned . The EU strategy must take this into account.

200 billion for defense

The plans for European defense and military capacity building, which have been pursued for years but have so far been rather modest, are to receive an upgrade. The main issue here is money. The draft summit declaration speaks of a “significant increase in military spending,” with priority given to investment and joint procurement.

But Macron wants more. He has brought a €200 billion defense fund into play, which is to be financed via EU debt along the lines of the COVID-19 reconstruction fund. The money could be used not only for defense equipment, but also for the security of supply for gas and oil and for foodstuffs (e.g. grain), according to the French EU presidency.

However, strong resistance is emerging. Unlike the reconstruction fund, Germany is not on board this time. There will be no second RRF (Recovery and Resilience Facility), said an EU diplomat. Chancellor Olaf Scholz has announced the creation of a €100 billion special fund for the German Armed Forces – and wants to leave it at that for now.

Netherlands does not want new debt

The Netherlands is also taking a stand. “At this point, I cannot agree to a NextGenerationEU 2.0,” said Prime Minister Mark Rutte in Paris. Rutte said that existing financial resources should first be exhausted before considering further EU debt. France nevertheless wants to press ahead. This option should not be taken off the table, said Europe Minister Clément Beaune.

No decisions are expected in Versailles; after all, this is an informal summit. The draft summit declaration does not yet mention a European defense fund. It is conceivable, however, that the EU Commission will be tasked with making a proposal for the regular March summit. The controversial taxonomy could also be discussed.

Analogous to the rules for sustainable energy, the Brussels authority is working on a social taxonomy. Spurred on by the war in Ukraine, armaments could also be included. But that, too, is controversial. The Social Democrats and Greens in the European Parliament support a “Europe of defense” – but they don’t want to hear anything about a social stamp for weapons.

REPowerEU: these are the next steps

By

Manuel Berkel

By the summer, the Commission aims to turn most of the announcements from REPowerEU into concrete legal acts, guidelines, and recommendations. Until then, intensive discussions with the member states are on the agenda. The Council of heads of state and government in Versailles, which begins today, provides an official framework. The agenda of the informal meeting includes measures to reduce energy dependence on Russia.

The Commission intends to draw up a draft gas storage law by April. In addition to mandatory minimum filling levels, it should also regulate a complete exemption from network charges. In addition, the draft is to include a procedure for sharing the costs of supply security fairly between the member states.

Germany already on track with renewables

In May, the commission will present recommendations on how to speed up approval processes for renewables. However, the commission is more likely to follow what Germany has already set in motion, says lawyer Frank Sailer of the Stiftung Umweltenergierecht. In the EEG amendment, it is to be legally regulated that the construction of renewable energies is in the overriding public interest and serves public safety. Such a legal clarification could prevent individual offices and courts from getting tangled up in one or another protracted detailed discussion.

For nature and species conservation, the Commission announces a guide for living labs in which innovative technologies for renewable energies can be tested. Small and medium-sized enterprises (SMEs) are to be given easier access to long-term power supply contracts (PPAs) by the end of the year, together with the European Investment Bank. Since renewable energies have low generation costs, this would also enable SMEs to secure low-cost electricity – provided that a sufficient number of new plants are built.

Fast approvals for hydrogen projects

A consultation on PPAs and faster approval procedures is still ongoing. The Commission’s initiative for a solar strategy, which is to be published in June, is also currently being consulted.

The Commission also promises to move quickly on the subject of hydrogen. The state aid reviews of the Important Projects of Common European Interest (IPCEIs) are to be completed by the summer. The prerequisite is that the applications are submitted early. The Commission promises a decision within six weeks.

New battery regulation: Europe’s sustainable re-industrialization

The energy transition, dependence on raw material imports, structural change in the industry, and new mobility concepts. The new battery regulation is something like a melting pot of central challenges for the European Union. Simona Bonafè, Italian S&D MEP and rapporteur of the ENVI Committee, ended the presentation of the key points of the new regulation accordingly emotional: “Can we cover the entire demand for raw materials ourselves? It’s hard to say. However, do we have an alternative? No, we don’t.”

With these urgent words, Bonafè once again emphasizes the importance of the new battery regulation. It has two key objectives. “The first is to protect human health and the environment. The second is to keep the battery value chain in Europe.” The EU sees batteries as one of the key technologies of the future. Not only to achieve the goal of carbon neutrality in 2050. They should also help with structural change in the economy and secure jobs.

Import independence through recycling

The new battery regulation aims to ensure that batteries are sustainable and circular throughout their life cycle. From development to disposal. This means that even the raw materials – which currently come largely from China – must be controlled. For example, child labor is prohibited during mining. Renewable energy must also be used in the production of battery cells and modules.

Batteries placed on the market in the EU from July 1, 2024, must have a carbon footprint statement. A CO2 intensity labeling requirement will then follow on January 1, 2026, and one for the proportion of recycled cobalt, lead, lithium and nickel from January 1, 2030. All these regulations will also apply to batteries imported from third countries.

In addition, the recycling of batteries is a central component of the new Battery Regulation. By December 2025, 70 percent of portable batteries are to be recollected, and by 2030 this figure is to be 80 percent. The ENVI committee is thus accelerating the plans. Originally, these quotas were to have been reached five years later. Recycling quotas have also been massively tightened. By 2026, 35 percent of the lithium used was originally to be recycled. Now it is 70 percent.

Battery technology to lead to re-industrialization

The EU is pushing hard in developing its own battery industry. Currently, 111 battery projects with an investment volume of €127 billion are being developed in member states. The goal is to have around 800,000 jobs in the battery industry across Europe by 2025. Five years later, enough batteries should be built in Europe to power 11 million electric cars. This would cover 90 percent of demand in Europe.

The battery industry is not an option, but an absolute necessity, says Bonafè. The basis for the optimism are studies that assume global demand for batteries will increase 14-fold by 2030. The EU aims to meet 17 percent of that demand. By 2040, the number of recyclable lithium batteries is expected to increase 700-fold. Bonafè stresses that the EU does not want to make the same mistake in the battery industry that it made with solar technology. The industry has almost completely migrated away after initial successes.

In view of the enormous quantities of lithium, but also nickel and cobalt required, it is clear, however, that production in Europe is not enough, Bonafè continued. Rather, batteries should form a circular economy. The stricter recycling quotas would take this into account. In addition, the batteries are to become easier to remove. For example, they may no longer be glued together so that they can not only be easily replaced but also collected.

This is associated with sometimes enormous costs for the economy. Bonafè, however, seems hardly willing to compromise: “We want to transform our economy and take a new direction. To do that, we need to invest in batteries. And the industry has to understand that this is not only a challenge and a big burden but also a big opportunity. Imports also cost money.”

New battery regulation is met with broad approval

After Bonafé’s presentation, the debate in parliament also focused on these imports. The focus was on Russia’s invasion of Ukraine. This war had shown that one should not be dependent on individual countries for raw materials. Accordingly, the parliamentarians from all groups who took the floor were unanimous.

Ismael Ertug (S&D) stressed the importance of the new battery regulation for achieving the climate targets and added: “Just a few weeks ago, we would have only talked about the environmental aspects. Now, however, nothing is the same anymore. Now it’s also about strategic raw material security.” Austrian Guenther Sidl (S&D) said the regulation sets standards. “Not only along the supply chain, but along the entire value chain.”

In principle, Antonius Manders (EPP) was also pleased, but he also emphasized that it was a pity that the planned battery deposit had not made it into the regulation. Among others, CDU environmental expert Hildegard Bentele had advocated such a system. Christian Domke Seidel

EU adopts fourth sanctions package

The EU is imposing further sanctions on Russia and its ally Belarus. The ambassadors of the member states agreed yesterday to include cryptocurrencies in the restrictions that apply to other financial transactions with Russia. In this way, they want to prevent Bitcoins and other cryptocurrencies from being used to circumvent punitive measures.

In addition, the EU is aiming at the Russian shipping sector: Technologies for navigation and radio communication will fall under the export ban, and safety equipment will require approval from the regulatory authorities (in Germany, the Federal Office of Economics and Export Control). The Russian Maritime Register of Shipping will be added to the list of state-owned enterprises that are not allowed to receive refinancing in the EU.

In addition, the EU sanctions another 14 businessmen plus family members and 146 representatives of the Russian Federation Council who had ratified the recognition of the independence of the separatist areas in eastern Ukraine. Among them are the heads of two fertilizer manufacturers, the CEO of the state airline Aeroflot and the head of VK, the operator of the largest social networks in Russia.

The member states had discussed even more far-reaching punitive measures, such as closing ports to Russian ships. However, the German government, in particular, opposed this. It argued that the first step was to assess the impact of the three far-reaching sanctions packages already adopted. For example, the central bank’s reserves stored abroad were frozen and seven banks were cut off from the Swift payment information system.

The Swift ban now also affects three Belarusian institutions, Belagroprombank, Bank Dabrabyt, and the Belarussian State Development Bank. Transactions with the central bank are also banned and deposits of more than €100,000 are prohibited.

Moscow threatens with counter-sanctions

Moscow yesterday threatened the West with tough countermeasures. “Russia’s response will be swift, deliberate, and sensitive to those it affects,” Russian news agency RIA quoted Dmitry Biritchevsky, head of the foreign ministry’s economic cooperation department, as saying. Details were not initially released.

Western sanctions are placing a considerable burden on the Russian financial system and economy. The rating agency Fitch lowered its credit rating from “B” to “C”. This threatens a default by Russia, which may not be able to meet some of its debt obligations in the wake of the sanctions.

Meanwhile, the government and central bank in Moscow are trying to cushion the impact. The central bank announced that citizens would not be allowed to withdraw more than $10,000 from foreign currency accounts. Russian banks are also prohibited from selling foreign currencies.

Meanwhile, President Vladimir Putin signed a law releasing funds from a national wealth fund for the purchase of government bonds and shares. In addition, a so-called “capital amnesty” was issued: this means that money taken abroad past the treasury can return to Russia without the threat of penalties or taxes.

In addition, Moscow is taking the first steps toward nationalizing the property of foreign companies that leave the country. The Commission for Legislative Activities is supporting a draft law that would allow companies more than 25 percent owned by foreigners from “unfriendly states” to be placed under external management, the ruling United Russia party says via the Telegram messenger service. This would serve to prevent bankruptcy and save jobs. tho/rtr

IfW: US oil embargo against Russia is only symbolic without EU

According to the Kiel Institute for the World Economy (IfW), the US import ban on Russian oil will hardly harm Russia’s economy. An oil embargo would only become much more effective if the EU also participated in it, it said in a statement on Wednesday, following corresponding model calculations at the institute. “The import stop of Russian oil by the US may be of high symbolic significance,” said IfW trade researcher Hendrik Mahlkow. “However, it causes practically no economic damage to the Russian economy and therefore has no direct impact on Vladimir Putin’s financial room for maneuver.”

According to the report, an import ban on Russian oil by the US, the UK, and Canada would reduce Russia’s economic output by only about 0.2 percent of its economic power in the long term. “The US imports only 4 percent of its oil from Russia ($6.7 billion). By producing shale oil, the US exports more oil than it imports and can completely cover its own oil needs,” the IfW said.

Embargo too expensive for the EU

An oil embargo would only become much more effective with EU participation. “In this case, Russia’s gross domestic product would fall permanently by 1.2 percent in the simulation,“ says the research institute. However, such a step would be costly for the EU because individual member countries would also suffer economic losses in the long term. In the case of Estonia, for example, these losses would be as high as 1.1 percent.

Germany would be affected relatively little, with its economy down 0.2 percent in the long run, the IfW said. An oil embargo against Russia would need the participation of the EU to be effective, Mahlkow said. “Even if the long-term damage to Western countries such as Germany is only very moderate, such a step is likely to lead to distortions and high price jumps in the short term.” dpa

EU states work on cyber shield

EU countries are preparing for an increase of cyberattacks in view of the conflict with Russia. Except for the incident at the satellite network operator Viasat, no significant increase in cyberattacks has been observed so far, said French Digital State Secretary Cédric O after a meeting of the responsible ministers in Nevers. However, the situation is being monitored very closely.

In view of the war in Ukraine, the French Council Presidency had changed the agenda of the informal meeting at short notice in order to discuss responses to Russian disinformation and possible hacker attacks. Cyberattacks are an integral part of the Russian security apparatus. Hackers had crippled parliamentary and government websites and installed malware on hundreds of government computers to delete data just before the invasion of Ukraine began. However, with the help of Western security experts, the malware was rendered harmless.

On the one hand, the EU states now want to help Ukraine maintain the functionality of civilian telecommunications and government networks as far as possible. On the other hand, they want to prepare themselves: “We must now construct a European cyber shield very quickly,” said Internal Market Commissioner Thierry Breton. A joint declaration by the member states envisages several initiatives, but most of them will not have an effect in the short term:

– The relevant security authorities at EU and national levels are to cooperate even more closely on network protection and exchange information in real-time.

– The EU Commission is to make funds available through a new Emergency Response Fund for Cybersecurity to respond to large-scale attacks.

– The Commission should ensure that the new European Cybersecurity Competence Centre (ECCC) in Bucharest can start work quickly.

– The Commission is to quickly present the planned Cyber Resilience Act, which is primarily intended to prescribe cybersecurity standards for networked products.

– Member states want to quickly conclude negotiations on the revision of the NIS Directive with security requirements for critical infrastructure operators.

– The EU cybersecurity agency Enisa, together with other relevant bodies, is to make recommendations on how to strengthen the resilience of the communications infrastructure.

Breton also promoted his plan to build an independent European satellite Internet, whose signals would be encrypted with quantum technology. One should not rely on a single infrastructure, the commissioner argued: “We need a backup“. tho

EU electoral law reform: transnational lists to come

In the course of the EU electoral law reform, the negotiators of the four major groups in the European Parliament have agreed on the introduction of transnational lists already for the European elections in 2024. As the negotiator for the Greens, Damian Boeselager, announced on Twitter, 28 MEPs are to be able to enter Parliament via such lists. Transnational movements must link parties in at least seven member states or collect a certain threshold of signatures in as many countries.

In addition, there will be a gender quota for electoral lists for the first time. The minimum age for voters will be lowered to 16, although national regulations will continue to apply here.

Another agreement concerns the introduction of a blocking clause. Accordingly, Germany would have to introduce a blocking clause of 3.5 percent. “This shameless self-service is an affront to the Federal Constitutional Court and an attack on our democracy,” criticized Patrick Breyer, MEP for the Pirate Party. The judges had condemned corresponding blocking clauses as unconstitutional. Smaller groups such as the Greens/EFA had spoken out against the clause, but could not prevail with it. The formal vote in Parliament is still pending. The governments in the Council must then reach an agreement and obtain the approval of their national parliaments. klm

Johannes Schraps – the team athlete

His handball training kept him from taking steps abroad for a long time; but a torn cruciate ligament, additional studies, and an internship in Brussels turned Johannes Schraps into a convinced European. Today, the 38-year-old SPD member of the Bundestag is a full member of the European Affairs Committee and the Finance Committee, and is also a deputy member of the Foreign Affairs Committee and the Budget Committee. In the European Affairs Committee, Schraps is the SPD rapporteur for economic and monetary policy issues as well as for the EU’s external relations and European neighborhood policy, especially with neighboring countries in the east and in the Balkans.

Handball taught Schraps that you are stronger together than alone. This attitude permeates his political work: a strong Europe and European integration are among his core beliefs. “I find it extremely important that the traffic light coalition now more actively represents a pro-European attitude,” he says. In view of the Ukraine crisis, for example, it is imperative to adopt a pan-European stance.

Schraps knows no compromise when it comes to the rule of law. He also sees the fact that the traffic light coalition is taking a clearer line here vis-à-vis Poland or Hungary as a personal success: Schraps co-wrote a Bundestag resolution in 2019 that stipulates respect for the rule of law as a condition for receiving EU funding. “For me, the EU rule of law is the basis for the EU’s peace narrative,” Schraps says. “If EU states do not voluntarily submit to this rule of law, it endangers European peace.”

From local to European politics

Schraps grew up in the village of Groß Berkel in the Weserbergland region of Lower Saxony in an “SPD household,” as he puts it: both Schraps’ grandfather and father were local mayors, and his son founded a Young Socialists group in his community and joined the SPD at the age of 16. And, of course, handball. With VfL Hameln he made it into the third league. While studying political science in Bielefeld and Hamburg, he stayed true to the sport, training several times a week. “I didn’t want to let my teams down, so I never traveled for any length of time,” Schraps says. “Instead, I learned what team spirit really means.”

After injuring his cruciate ligament, Schraps used the time he had freed up for additional “Europe intensive” studies with a focus on EU law and economic history, which he completed parallel to his bachelor’s degree. During this time, he has to learn two foreign languages; he chooses Polish and Swedish, not Italian and French like most of his classmates. In his master’s studies, he spent an Erasmus year in Sweden and did an internship at the European Trade Union Institute in Brussels: “That was the spark that turned me into an idealist, an optimist and a European,” Schraps says. “Because I personally benefited from Europe.” Adrian Meyer