It all happened so quickly. Donald Trump is in office, and Viktor Orbán now seems poised to clear the way for the extension of economic sanctions against Russia. Poland, which currently holds the EU Council Presidency, plans to add the rollover to the agenda for the EU ambassadors’ meeting on Friday, expecting a consensus to be reached.
So, no nail-biting until Jan. 31. The foreign ministers can formally approve the six-month extension at their regular meeting on Monday, just in time.
Before Christmas, Hungary’s Prime Minister hinted that extending the sanctions was no foregone conclusion and that he would wait for Donald Trump’s inauguration. That moment has now passed, and the US President has promptly revised one of his campaign promises. He no longer claims he will end Russia’s war against Ukraine in 24 hours but instead gives himself six months to achieve this.
Trump appears to be aiming for a summit with Vladimir Putin to strike a deal. It would not have looked good if Hungary had collapsed Europe’s sanctions regime with its veto beforehand. After all, the US President wants to meet his Russian counterpart from a position of strength.
The lesson is clear: Anyone banking on Trump needs to be flexible. Orbán believed his American idol’s campaign promises and likely held misguided hopes for a swift end to the Russia sanctions despised in Budapest. But Trump has no friends, only interests. It’s possible that Orbán will learn this lesson again in the future, especially regarding upcoming US tariffs or Hungary’s controversial economic ties with China.
In an Analysis by my colleague János Allenbach-Ammann, you can read about what else Donald Trump is planning and what Ursula von der Leyen had to say about the US President at the World Economic Forum.
At the World Economic Forum in Davos yesterday, Commission President Ursula von der Leyen gave a speech that can be interpreted as a response to Donald Trump’s inauguration speech, even if she did not mention the new US President by name. “Our message to the world is simple: If there are mutual benefits in sight, we are ready to work with you,” said von der Leyen, adding: “Europe is open to economic cooperation.”
She explained the recent progress made in negotiations with Switzerland, the Mercosur states, and Mexico by saying that third countries are looking for trustworthy partners in times of intensified competition between the major powers. “We play by the rules. Our deals have no pitfalls,” von der Leyen advertised.
While Trump is threatening high tariffs, von der Leyen announced that she wants to “upgrade” the partnership with India and also “strive for mutual benefit” with China. There may even be an opportunity to “expand trade and investment relations” with China. However, there are currently no concrete plans for this in the Commission.
However, the first sign of whether the EU Commission wants to realign its China policy could come soon. By the end of the week, the EU Commission must decide how it intends to proceed in the WTO case against China, which was launched in response to Chinese retaliatory measures against Lithuanian companies.
Von der Leyen’s speech focused less than in previous years on European values, which the EU wants to cultivate in its economic relations, and more on economic interests. The part of the speech on the USA also focused on common interests rather than values.
Meanwhile, in the US, it is only slowly becoming clearer what exactly the Trump administration has in mind in terms of international economic policy. In a memo, Trump ordered reports to examine various measures against the US economic deficit. The reports are due by April 1. However, this does not mean that the USA’s trading partners can breathe easy until then. On Monday evening, Trump had already speculated about a 25 percent tariff on products from Mexico and Canada, which could be introduced as early as Feb. 1.
In addition to trade policy, international tax policy has also already come under Trump’s scrutiny. In a decree, the US President confirmed the USA’s withdrawal from the global agreement on minimum taxation of companies. The agreement sets a minimum profit tax of 15 percent. It also allows countries to tax globally active corporations additionally if they are taxed at less than 15 percent in the country where they are headquartered.
This extraterritoriality is a thorn in the side of the US President, who therefore does not want to leave it at just pulling out of the agreement. He has ordered his government to examine how it can take action against tax practices in other countries that have an extraterritorial or “disproportionate” impact on US companies. The report is expected within sixty days.
With this broad memo, Trump is not only targeting those countries that implement the global minimum tax agreement. He is also threatening countries that have introduced or want to introduce a digital tax.
Pasquale Tridico, Chairman of the European Parliament’s Tax Committee, called the US withdrawal a “significant setback.” However, he then added in a press release: “Trump’s threat of retaliation should not deter us.”
Economic Affairs Commissioner Valdis Dombrovskis said on Tuesday that he regretted Trump’s decision and that the Commission wanted to discuss this issue with the new US administration. According to Commission spokespeople, the fact that the Commission President has not yet been given an appointment with Trump is a complicating factor in this regard.
Resistance is forming in Brussels against the demands of European Christian Democrats at the weekend to suspend and greatly simplify the EU’s sustainability reporting obligations for companies. In her speech at the World Economic Forum in Davos on Tuesday, Commission President Ursula von der Leyen held out the prospect of “significantly simplifying the regulations for sustainable financing instruments and due diligence obligations.”
However, the CDU politician is counting on the support of the Social Democrats and Greens in the European Parliament. They warn against “deregulation” and fear that opening up key laws of the Green Deal from the previous legislature would jeopardize the socio-ecological transformation.
The line of conflict also runs through the Commission itself. The authority is working on the so-called Omnibus Directive planned for the end of February, which aims to streamline reporting obligations on supply chains (CSDDD), sustainability (CSRD), and financial taxonomy. Liberal Vice-President Stéphane Séjourné and the Commissioner responsible for cutting red tape, Valdis Dombrovskis (EPP), are pushing for the legal texts to be amended in order to substantially simplify implementation for the companies affected.
“If we would not be opening any legislation, we would not need an omnibus,” said Dombrovskis on the sidelines of the meeting of EU finance ministers on Tuesday. In addition to the CSRD, CSDDD, and taxonomy, other elements should be included in the omnibus.
However, Socialist Vice-President Teresa Ribera does not want to undo the laws that have been passed, according to reports in Brussels. She considers it sufficient to limit herself to implementing provisions and to eliminate ambiguities with the help of delegated acts and guidelines.
Green MEP Michael Bloss, for example, had previously criticized the EPP and CDU leader Friedrich Merz for wanting to “tear down the legal framework with a wrecking ball,” thereby creating uncertainty for long-term investments. The mood among the Social Democrats is also heated because of the proposal. They fear that social standards could be dismantled through the back door as a result of the proposal.
The Council of Member States is also divided. They are all committed to reducing bureaucracy. But some countries have already transposed the EU directives into national law. If they turn around, they fear for their credibility. The Polish Council Presidency, on the other hand, is exerting pressure and wants to put cutting red tape on the agenda of every meeting of the finance ministers.
The EPP proposals did not meet with unreserved approval from associations and companies either. The environmental NGO WWF criticized Merz, who threatened to “walk over our future with a lawnmower.” Climate and nature protection are “not a bureaucratic luxury.”
Pierre-François Thaler, Co-CEO of the sustainability rating agency EcoVadis, would welcome greater consistency between the various reporting obligations. However, Thaler told Table.Briefings that a “two-year pause could lead to more uncertainty for companies.” In particular, those companies “that have already invested in resources and processes to prepare for compliance” would be at a disadvantage.
Katharina Reuter from the German Sustainable Business Association told Table.Briefings that “banks, investors and insurers would request the data from the companies.”
A spokeswoman for the Association of German Banks also emphasized the importance of CSRD reports in particular on behalf of the German banking industry. Where possible, they should be a “key source” for “sustainability-related requirements” and “supervisory requirements for risk management.” A postponement would widen the existing data gap at financial institutions. On the other hand, the banking industry welcomes improved transparency and comparability of data through the upcoming Omnibus Act.
Oliver Zander, Managing Director of the employers’ association Gesamtmetall, on the other hand, sees a suspension of the EU laws as “right and absolutely necessary.” He also argues in favor of planning security for companies. However, Zander does not see this as being provided by a postponement, but rather by a hasty introduction of the reporting obligations. “It takes time to create a new paragraph, such as a negative list for non-EU companies,” Zander told Table.Briefings. “Otherwise it will end up in chaos again, as with the deforestation regulation at the end of last year.”
At its leadership meeting last weekend, the EPP also spoke out in favor of postponing the implementation of the CBAM. Philipp Jäger, who researches European climate and economic policy at the Jacques Delors Centre at the Hertie School in Berlin, is critical of the proposal: CBAM is essentially an instrument to protect domestic industry if the EU Emissions Trading System (ETS) results in higher CO2 costs for the economy.
“Delaying CBAM from an EPP perspective would therefore only make sense in combination with a later phase-out of free CO2 certificates for industry,” says Jäger. He sees organizing a majority for further free allocation of emission allowances to the industry as a difficult goal to achieve. In addition, the EU’s climate targets would be “concretely” jeopardized.
When asked, the EPP said that the party was primarily concerned with streamlining bureaucracy. “The number of data points should be reduced.” In addition, the de minimis limits should be increased. “We also need to focus on achieving basic protection against CO2 leakage and creating a more pragmatic structure.” With János Allenbach-Ammann, Lukas Knigge, Caspar Dohmen, and Alina Leimbach
The European Parliament is today debating controversial contracts between the EU Commission and environmental NGOs concluded by the Commission’s executive agency, CINEA, under the LIFE program of the Multiannual Financial Framework. The LIFE program is the EU’s funding instrument for environmental and climate action measures.
In the course of the discharge of the Commission for the 2023 financial year, the head of the Budgetary Control Committee, Niclas Herbst (CDU), is expected to sharply criticize the content of some funding agreements. This is obvious from his statements in the hearings on the parliamentary discharge procedure, which has now been completed.
In particular, the rapporteur is likely to criticize the fact that the Commission has commissioned and paid NGOs to lobby the European Parliament. Herbst is likely to note that this behavior is probably in contradiction to the principle of separation of powers. He is firmly convinced that EU taxpayers’ money should not be spent on lobbying EU institutions.
The Commission has promised to review the contracts between CINEA and NGOs in the LIFE program. In the meantime, the authority has instructed the NGOs to stop lobbying. Nevertheless, Herbst does not agree with the handling of the case: The measures were not sufficient to mitigate the risks, he said. The Commission had provided the NGOs with new guidelines in 2024 in response to criticism from the European Parliament. However, these were not enough to prevent recipients of EU funds from using them to influence the legislature.
Herbst is also annoyed at how slowly the Commission is reacting. Although the Parliament had already drawn the Commission’s attention to the shortcomings in February 2024, the non-binding new guidelines had remained in place. So far, new rules on how the funds totaling EUR 5.4 billion from the LIFE program are to be used by the recipients have only been announced. The Commission must ensure that EU funds are not used for lobbying.
Herbst also reportedly points out that, according to the European Court of Auditors’ special report on the EU Transparency Register, 34% of registered NGOs do not disclose their financial supporters. The NGOs avoided transparency by declaring that they were only pursuing their own interests or the collective interests of their members. Herbst is likely to call on the Commission to close this loophole.
Among the NGOs that claim not to pursue commercial interests and receive EU funding from the LIFE program is the NGO Client Earth. In the EU Transparency Register, Client Earth shows the Commission grant of EUR 350,000 for 2023 for the last completed financial year. According to its own entry, Client Earth’s total budget amounted to EUR 40,483,260. Where the money comes from is not broken down there.
A spokesperson for Client Earth said: “Client Earth is committed to transparency towards the public and its donors.” Client Earth therefore “discloses its financial sources even beyond the requirements of the EU Transparency Register and other legal regulations.” The annual report and financial reports with the most important donors and donations are available on its own transparency page.
The agreement between the NGO European Federation for Transport and Environment (T&E) in the LIFE program is one of the contracts under criticism. T&E received EUR 700,000 in grants from the Commission under the program in 2023. The funding agreement, which Table.Briefings was able to view, is entitled “zero emission and circular cars” in the so-called Work Package. The aim is to “reform EU legislation (fleet legislation) and company car taxation in the member states to achieve 100 percent zero-emission vehicles in company car fleets in all major EU markets by 2030.”
According to “Advocacy” (lobbying), the contract literally states with regard to the year 2024: “With the elections to the European Parliament, we will inform candidates and the media and incorporate [the content] into the election programs as well as into the hearings of the designated Commissioners in Parliament. Whereby we will focus on the political measures needed to achieve zero-emission and circular cars.”
Concrete evidence of the lobbying activities was also agreed upon. After the keyword “expected results,” the contract states: “T&E will have at least five meetings with MEPs to discuss our recommendations for the next mandate.” The Council should also be lobbied: “We will also contribute to the Strategic Agenda of the European Council 2024 to 2029.” T&E was also obliged by the Commission to include questions from MEPs at the hearings: “T&E proposes questions to at least ten MEPs in advance of the Commissioners’ hearings.”
Commenting on the contracts, T&E Executive Director William Todts said: “T&E is completely independent of the European Commission and any other external institutions or funders.” The strategy and annual work plan would be approved by the 49 member organizations in 24 European countries. “T&E only accepts funding that does not compromise our independence and autonomy.” The operating grants that the organization receives from the LIFE program help to ensure that the opinions of the members can be articulated at EU level.
With its work, T&E is creating a counterweight to the powerful automotive, airline and oil lobbies. “The LIFE program – the European Union’s most important funding instrument for environmental and climate action – provides EUR 15.6 million annually for operating grants to NGOs.” In contrast, the 50 largest lobbying organizations would have spent a total of almost EUR 200 million on lobbying in the EU in 2024.
The team for enforcing the Digital Services Act is to grow. This was announced by Executive Vice-President Henna Virkkunen during a debate in the European Parliament. Unlike the US government, the Commission will further strengthen its fight against disinformation and manipulation, said the Finn. To this end, she will ensure that the number of employees responsible for the DSA increases from the current 150 to 200 by the end of 2025.
Virkkunen also pointed out that the Commission is preparing a new European Democracy Shield. The aim is to take stronger action against disinformation and combat serious risks to democracy. Commission President Ursula von der Leyen had already announced such a project before the European elections. Michael McGrath, Commissioner for Justice and the Rule of Law, is responsible.
Against the backdrop of US President Donald Trump ending the government’s fight against misinformation, false information, and disinformation in one of his first executive orders, Virkkunen called the DSA the “most advanced and effective legal framework” for online platforms. It cannot be emphasized often enough that the DSA does not censor content. “It creates efficient mechanisms to remove illegal content that is defined as illegal by EU or national law, such as hate speech,” she said. “What is illegal offline is also illegal online.”
MEPs from the S&D, Green, Renew and Left parties called on the Commission to take tougher action against the platforms. “They must act strongly and quickly now”, said Alexandra Geese (Greens), for example. MEPs from the far right, on the other hand, criticized the DSA for restricting freedom of expression and endangering democracy.
Andreas Schwab (CDU) said that it must be ensured that individual opinions are not amplified by bots or algorithmic distortions. Everyone has the right to express their opinion. However, this right is not unlimited. “There is no freedom of opinion without plurality.” He also called for immediate action by the Commission in the event of violations of the DSA. The sanctions laid down in the law must take immediate effect. vis
Providers of social media platforms and online marketplaces continue to use manipulative designs in their apps, even though the Digital Services Act (DSA) prohibits this. This is shown by a study by the German consumer association VZBV, which is available to Table.Briefings. At the end of last year, the VZBV examined the offerings of 18 Android apps – from Amazon, eBay, Shein and Temu to Facebook, Instagram, TikTok, X, Kaufland, Mediamarkt, Otto and Zalando.
According to the VZBV, providers use designs that tempt consumers to make impulsive purchasing decisions and increase the time spent on the platforms. The consumer advocates consider Hyper-Engaging Dark Patterns (HEDP) to be particularly problematic. These can encourage addictive behavior and have a negative impact on mental health.
Examples of HEDP include intrusive notifications, autoplay, and the use of gamification and gaming elements. The results of the study show that all of the platforms examined use such elements, albeit to varying degrees.
Some of these harmful designs and unauthorized cookies have been stopped in recent years, for example through warnings against Temu and Shein, said Jutta Gurkmann, Head of Consumer Policy at VZBV. But that alone is not enough. “The responsible authorities must now consistently enforce existing regulations.”
Gurkmann called for clear rules for digital fairness and against harmful design practices on the internet – including in general consumer law. After all, manipulation also exists with other online offerings such as retailer websites or apps. “The European Commission must use the forthcoming Digital Fairness Act to ensure real fairness online,” said Gurkmann. vis
As the AI Act takes effect and companies prepare for its implementation, one crucial piece of legislation regulating artificial intelligence remains pending: the AI Liability Directive (AILD). Axel Voss (CDU), the rapporteur, and his chief of staff, Kai Zenner, have now presented a timeline for further work on the European Commission’s proposal.
The relevant materials have now been reviewed, and Voss plans to present the initial findings on Feb. 3. On the same date, the first six-week stakeholder consultation is set to begin, Zenner announced on LinkedIn. The aim is to provide a clearer picture of “what we intend to do over the next 12 months so that you can plan accordingly.”
As AILD rapporteur, Axel Voss aims to conduct a legislative process that is “accessible, transparent, and empirically.” To this end, three stakeholder consultations will give all interested parties the opportunity to contribute.
The timeline includes the publication of a draft report in June, followed by a deadline for amendments in July. The second half of the year will be dedicated to negotiating compromises, with the final vote scheduled for January 2026. Zenner has pledged to keep the schedule regularly updated and to provide ongoing updates.
The transmission system operators’ report on the possible reconfiguration of the European electricity bidding zones cannot be published as planned on Jan. 27. The Bidding Zone Review Report will now be published at the end of the first quarter, a person familiar with the matter told Table.Briefings on Tuesday. The publication of the report marks the start of the deadline for member states and the Commission to make a decision on bidding zone sharing.
The reason for the postponement is said to be that the EU Commission is insisting that the transmission system operators calculate all commissioned scenarios – in particular a division of Germany into five electricity price zones. The TSOs consider the significance of the outstanding calculations to be limited, but still have to carry them out. The grid operator association ENTSO-E did not respond to a corresponding request on Tuesday. ber
According to an analysis by the Danish energy group Ørsted, Europe could have offshore wind farms with an additional capacity of 70 gigawatts (GW) by 2050 if planned and operated across borders. This is what Duncan Clark, Head of Region Europe Development, said on Tuesday at the Handelsblatt Energy Summit in Berlin. For comparison, in the Ostend Declaration, the countries of the North Sea had agreed to build 300 GW of offshore capacity by the middle of the century.
The background to this is optimized land use in cross-border planning. For example, a purely national approach can result in one wind farm overshadowing another and reducing the overall output. A joint approach could also reduce grid connection costs. Until now, European planning has been made more difficult because participating countries do not agree on cost sharing.
However, in order to accelerate the expansion of offshore wind farms, suppliers would have to triple their capacities, said Clark. However, given the slow pace of electrification of energy consumption, economists have recently called for delaying the expansion of cost-intensive offshore energy in particular. ber
The European Investment Bank (EIB) wants to significantly increase its support for the defense industry. Last year, the development bank achieved a record sum of one billion euros in investments in the areas of security and defense, said EIB President Nadia Calviño at a meeting with EU finance ministers in Brussels. She expects this amount to be doubled in 2025.
Against the backdrop of the Russian war of aggression against Ukraine, the EU is trying to ramp up arms production. To this end, previous EIB guidelines for cash flows into the industry were changed last year. At the same time, politicians are increasingly calling on the financial sector to invest more in security and defense.
Many of the EU countries are also NATO members and are under additional pressure after US President Donald Trump repeatedly called on them to drastically increase their defense spending. dpa
Following the annulment of the first round of the presidential election in Romania, right-wing extremist Călin Georgescu has failed with an urgent application before the European Court of Human Rights (ECtHR). With a so-called application for interim measures, Georgescu wanted the court to oblige the Romanian government to, among other things, recognize the result of the first round of voting and organize another round of voting.
However, the judges in Strasbourg unanimously rejected this: such measures are only applicable if there is a risk of irreparable damage to human rights. This was not the case here. Whether Georgescu’ s human rights were violated by the annulment of the election will only be decided by the Court at a later stage.
In the Nov. 24 election, the far-right, pro-Russian politician unexpectedly secured first place. However, Romania’s Constitutional Court declared the results invalid and ordered a repeat election, citing significant irregularities in the entire voting process.
The Romanian Constitutional Court had argued, among other things, that voters had been manipulated in the election by unlawfully giving preferential treatment to one candidate on social media. Georgescu, who was little known until shortly before the election, had mainly campaigned for himself on TikTok. TikTok had failed to label Georgescu as a politician and his posts as election advertising, Romania’s government complained. The public prosecutor’s office is currently investigating this.
Only recently, Georgescu’s attempt to have the election annulled was thwarted by Romania’s judiciary. He had filed a lawsuit against the electoral authorities because they had implemented the Constitutional Court’s decision to annul the election and ordered a re-run. Romania’s highest court dismissed this case. The new presidential election is due to take place on May 4. A possible run-off election is planned for May 18. dpa
Andreas Schwab, CDU MEP, was elected Chair of the Conference of Delegation Chairs. This is the political body of the Parliament that coordinates the work of the Parliament’s permanent delegations. Schwab is also EPP Coordinator in the Committee on the Internal Market and Consumer Protection (IMCO).
The Council has appointed Preben Aamann as the new Director General for Communication and Information (COMM). He will take up his post on Feb. 1. The Dane is currently Head of the Council’s Press Office. Between 2012 and 2019, he worked as Deputy Spokesperson for the President of the European Council, Herman Van Rompuy, and as Spokesperson for the President of the European Council, Donald Tusk.
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It all happened so quickly. Donald Trump is in office, and Viktor Orbán now seems poised to clear the way for the extension of economic sanctions against Russia. Poland, which currently holds the EU Council Presidency, plans to add the rollover to the agenda for the EU ambassadors’ meeting on Friday, expecting a consensus to be reached.
So, no nail-biting until Jan. 31. The foreign ministers can formally approve the six-month extension at their regular meeting on Monday, just in time.
Before Christmas, Hungary’s Prime Minister hinted that extending the sanctions was no foregone conclusion and that he would wait for Donald Trump’s inauguration. That moment has now passed, and the US President has promptly revised one of his campaign promises. He no longer claims he will end Russia’s war against Ukraine in 24 hours but instead gives himself six months to achieve this.
Trump appears to be aiming for a summit with Vladimir Putin to strike a deal. It would not have looked good if Hungary had collapsed Europe’s sanctions regime with its veto beforehand. After all, the US President wants to meet his Russian counterpart from a position of strength.
The lesson is clear: Anyone banking on Trump needs to be flexible. Orbán believed his American idol’s campaign promises and likely held misguided hopes for a swift end to the Russia sanctions despised in Budapest. But Trump has no friends, only interests. It’s possible that Orbán will learn this lesson again in the future, especially regarding upcoming US tariffs or Hungary’s controversial economic ties with China.
In an Analysis by my colleague János Allenbach-Ammann, you can read about what else Donald Trump is planning and what Ursula von der Leyen had to say about the US President at the World Economic Forum.
At the World Economic Forum in Davos yesterday, Commission President Ursula von der Leyen gave a speech that can be interpreted as a response to Donald Trump’s inauguration speech, even if she did not mention the new US President by name. “Our message to the world is simple: If there are mutual benefits in sight, we are ready to work with you,” said von der Leyen, adding: “Europe is open to economic cooperation.”
She explained the recent progress made in negotiations with Switzerland, the Mercosur states, and Mexico by saying that third countries are looking for trustworthy partners in times of intensified competition between the major powers. “We play by the rules. Our deals have no pitfalls,” von der Leyen advertised.
While Trump is threatening high tariffs, von der Leyen announced that she wants to “upgrade” the partnership with India and also “strive for mutual benefit” with China. There may even be an opportunity to “expand trade and investment relations” with China. However, there are currently no concrete plans for this in the Commission.
However, the first sign of whether the EU Commission wants to realign its China policy could come soon. By the end of the week, the EU Commission must decide how it intends to proceed in the WTO case against China, which was launched in response to Chinese retaliatory measures against Lithuanian companies.
Von der Leyen’s speech focused less than in previous years on European values, which the EU wants to cultivate in its economic relations, and more on economic interests. The part of the speech on the USA also focused on common interests rather than values.
Meanwhile, in the US, it is only slowly becoming clearer what exactly the Trump administration has in mind in terms of international economic policy. In a memo, Trump ordered reports to examine various measures against the US economic deficit. The reports are due by April 1. However, this does not mean that the USA’s trading partners can breathe easy until then. On Monday evening, Trump had already speculated about a 25 percent tariff on products from Mexico and Canada, which could be introduced as early as Feb. 1.
In addition to trade policy, international tax policy has also already come under Trump’s scrutiny. In a decree, the US President confirmed the USA’s withdrawal from the global agreement on minimum taxation of companies. The agreement sets a minimum profit tax of 15 percent. It also allows countries to tax globally active corporations additionally if they are taxed at less than 15 percent in the country where they are headquartered.
This extraterritoriality is a thorn in the side of the US President, who therefore does not want to leave it at just pulling out of the agreement. He has ordered his government to examine how it can take action against tax practices in other countries that have an extraterritorial or “disproportionate” impact on US companies. The report is expected within sixty days.
With this broad memo, Trump is not only targeting those countries that implement the global minimum tax agreement. He is also threatening countries that have introduced or want to introduce a digital tax.
Pasquale Tridico, Chairman of the European Parliament’s Tax Committee, called the US withdrawal a “significant setback.” However, he then added in a press release: “Trump’s threat of retaliation should not deter us.”
Economic Affairs Commissioner Valdis Dombrovskis said on Tuesday that he regretted Trump’s decision and that the Commission wanted to discuss this issue with the new US administration. According to Commission spokespeople, the fact that the Commission President has not yet been given an appointment with Trump is a complicating factor in this regard.
Resistance is forming in Brussels against the demands of European Christian Democrats at the weekend to suspend and greatly simplify the EU’s sustainability reporting obligations for companies. In her speech at the World Economic Forum in Davos on Tuesday, Commission President Ursula von der Leyen held out the prospect of “significantly simplifying the regulations for sustainable financing instruments and due diligence obligations.”
However, the CDU politician is counting on the support of the Social Democrats and Greens in the European Parliament. They warn against “deregulation” and fear that opening up key laws of the Green Deal from the previous legislature would jeopardize the socio-ecological transformation.
The line of conflict also runs through the Commission itself. The authority is working on the so-called Omnibus Directive planned for the end of February, which aims to streamline reporting obligations on supply chains (CSDDD), sustainability (CSRD), and financial taxonomy. Liberal Vice-President Stéphane Séjourné and the Commissioner responsible for cutting red tape, Valdis Dombrovskis (EPP), are pushing for the legal texts to be amended in order to substantially simplify implementation for the companies affected.
“If we would not be opening any legislation, we would not need an omnibus,” said Dombrovskis on the sidelines of the meeting of EU finance ministers on Tuesday. In addition to the CSRD, CSDDD, and taxonomy, other elements should be included in the omnibus.
However, Socialist Vice-President Teresa Ribera does not want to undo the laws that have been passed, according to reports in Brussels. She considers it sufficient to limit herself to implementing provisions and to eliminate ambiguities with the help of delegated acts and guidelines.
Green MEP Michael Bloss, for example, had previously criticized the EPP and CDU leader Friedrich Merz for wanting to “tear down the legal framework with a wrecking ball,” thereby creating uncertainty for long-term investments. The mood among the Social Democrats is also heated because of the proposal. They fear that social standards could be dismantled through the back door as a result of the proposal.
The Council of Member States is also divided. They are all committed to reducing bureaucracy. But some countries have already transposed the EU directives into national law. If they turn around, they fear for their credibility. The Polish Council Presidency, on the other hand, is exerting pressure and wants to put cutting red tape on the agenda of every meeting of the finance ministers.
The EPP proposals did not meet with unreserved approval from associations and companies either. The environmental NGO WWF criticized Merz, who threatened to “walk over our future with a lawnmower.” Climate and nature protection are “not a bureaucratic luxury.”
Pierre-François Thaler, Co-CEO of the sustainability rating agency EcoVadis, would welcome greater consistency between the various reporting obligations. However, Thaler told Table.Briefings that a “two-year pause could lead to more uncertainty for companies.” In particular, those companies “that have already invested in resources and processes to prepare for compliance” would be at a disadvantage.
Katharina Reuter from the German Sustainable Business Association told Table.Briefings that “banks, investors and insurers would request the data from the companies.”
A spokeswoman for the Association of German Banks also emphasized the importance of CSRD reports in particular on behalf of the German banking industry. Where possible, they should be a “key source” for “sustainability-related requirements” and “supervisory requirements for risk management.” A postponement would widen the existing data gap at financial institutions. On the other hand, the banking industry welcomes improved transparency and comparability of data through the upcoming Omnibus Act.
Oliver Zander, Managing Director of the employers’ association Gesamtmetall, on the other hand, sees a suspension of the EU laws as “right and absolutely necessary.” He also argues in favor of planning security for companies. However, Zander does not see this as being provided by a postponement, but rather by a hasty introduction of the reporting obligations. “It takes time to create a new paragraph, such as a negative list for non-EU companies,” Zander told Table.Briefings. “Otherwise it will end up in chaos again, as with the deforestation regulation at the end of last year.”
At its leadership meeting last weekend, the EPP also spoke out in favor of postponing the implementation of the CBAM. Philipp Jäger, who researches European climate and economic policy at the Jacques Delors Centre at the Hertie School in Berlin, is critical of the proposal: CBAM is essentially an instrument to protect domestic industry if the EU Emissions Trading System (ETS) results in higher CO2 costs for the economy.
“Delaying CBAM from an EPP perspective would therefore only make sense in combination with a later phase-out of free CO2 certificates for industry,” says Jäger. He sees organizing a majority for further free allocation of emission allowances to the industry as a difficult goal to achieve. In addition, the EU’s climate targets would be “concretely” jeopardized.
When asked, the EPP said that the party was primarily concerned with streamlining bureaucracy. “The number of data points should be reduced.” In addition, the de minimis limits should be increased. “We also need to focus on achieving basic protection against CO2 leakage and creating a more pragmatic structure.” With János Allenbach-Ammann, Lukas Knigge, Caspar Dohmen, and Alina Leimbach
The European Parliament is today debating controversial contracts between the EU Commission and environmental NGOs concluded by the Commission’s executive agency, CINEA, under the LIFE program of the Multiannual Financial Framework. The LIFE program is the EU’s funding instrument for environmental and climate action measures.
In the course of the discharge of the Commission for the 2023 financial year, the head of the Budgetary Control Committee, Niclas Herbst (CDU), is expected to sharply criticize the content of some funding agreements. This is obvious from his statements in the hearings on the parliamentary discharge procedure, which has now been completed.
In particular, the rapporteur is likely to criticize the fact that the Commission has commissioned and paid NGOs to lobby the European Parliament. Herbst is likely to note that this behavior is probably in contradiction to the principle of separation of powers. He is firmly convinced that EU taxpayers’ money should not be spent on lobbying EU institutions.
The Commission has promised to review the contracts between CINEA and NGOs in the LIFE program. In the meantime, the authority has instructed the NGOs to stop lobbying. Nevertheless, Herbst does not agree with the handling of the case: The measures were not sufficient to mitigate the risks, he said. The Commission had provided the NGOs with new guidelines in 2024 in response to criticism from the European Parliament. However, these were not enough to prevent recipients of EU funds from using them to influence the legislature.
Herbst is also annoyed at how slowly the Commission is reacting. Although the Parliament had already drawn the Commission’s attention to the shortcomings in February 2024, the non-binding new guidelines had remained in place. So far, new rules on how the funds totaling EUR 5.4 billion from the LIFE program are to be used by the recipients have only been announced. The Commission must ensure that EU funds are not used for lobbying.
Herbst also reportedly points out that, according to the European Court of Auditors’ special report on the EU Transparency Register, 34% of registered NGOs do not disclose their financial supporters. The NGOs avoided transparency by declaring that they were only pursuing their own interests or the collective interests of their members. Herbst is likely to call on the Commission to close this loophole.
Among the NGOs that claim not to pursue commercial interests and receive EU funding from the LIFE program is the NGO Client Earth. In the EU Transparency Register, Client Earth shows the Commission grant of EUR 350,000 for 2023 for the last completed financial year. According to its own entry, Client Earth’s total budget amounted to EUR 40,483,260. Where the money comes from is not broken down there.
A spokesperson for Client Earth said: “Client Earth is committed to transparency towards the public and its donors.” Client Earth therefore “discloses its financial sources even beyond the requirements of the EU Transparency Register and other legal regulations.” The annual report and financial reports with the most important donors and donations are available on its own transparency page.
The agreement between the NGO European Federation for Transport and Environment (T&E) in the LIFE program is one of the contracts under criticism. T&E received EUR 700,000 in grants from the Commission under the program in 2023. The funding agreement, which Table.Briefings was able to view, is entitled “zero emission and circular cars” in the so-called Work Package. The aim is to “reform EU legislation (fleet legislation) and company car taxation in the member states to achieve 100 percent zero-emission vehicles in company car fleets in all major EU markets by 2030.”
According to “Advocacy” (lobbying), the contract literally states with regard to the year 2024: “With the elections to the European Parliament, we will inform candidates and the media and incorporate [the content] into the election programs as well as into the hearings of the designated Commissioners in Parliament. Whereby we will focus on the political measures needed to achieve zero-emission and circular cars.”
Concrete evidence of the lobbying activities was also agreed upon. After the keyword “expected results,” the contract states: “T&E will have at least five meetings with MEPs to discuss our recommendations for the next mandate.” The Council should also be lobbied: “We will also contribute to the Strategic Agenda of the European Council 2024 to 2029.” T&E was also obliged by the Commission to include questions from MEPs at the hearings: “T&E proposes questions to at least ten MEPs in advance of the Commissioners’ hearings.”
Commenting on the contracts, T&E Executive Director William Todts said: “T&E is completely independent of the European Commission and any other external institutions or funders.” The strategy and annual work plan would be approved by the 49 member organizations in 24 European countries. “T&E only accepts funding that does not compromise our independence and autonomy.” The operating grants that the organization receives from the LIFE program help to ensure that the opinions of the members can be articulated at EU level.
With its work, T&E is creating a counterweight to the powerful automotive, airline and oil lobbies. “The LIFE program – the European Union’s most important funding instrument for environmental and climate action – provides EUR 15.6 million annually for operating grants to NGOs.” In contrast, the 50 largest lobbying organizations would have spent a total of almost EUR 200 million on lobbying in the EU in 2024.
The team for enforcing the Digital Services Act is to grow. This was announced by Executive Vice-President Henna Virkkunen during a debate in the European Parliament. Unlike the US government, the Commission will further strengthen its fight against disinformation and manipulation, said the Finn. To this end, she will ensure that the number of employees responsible for the DSA increases from the current 150 to 200 by the end of 2025.
Virkkunen also pointed out that the Commission is preparing a new European Democracy Shield. The aim is to take stronger action against disinformation and combat serious risks to democracy. Commission President Ursula von der Leyen had already announced such a project before the European elections. Michael McGrath, Commissioner for Justice and the Rule of Law, is responsible.
Against the backdrop of US President Donald Trump ending the government’s fight against misinformation, false information, and disinformation in one of his first executive orders, Virkkunen called the DSA the “most advanced and effective legal framework” for online platforms. It cannot be emphasized often enough that the DSA does not censor content. “It creates efficient mechanisms to remove illegal content that is defined as illegal by EU or national law, such as hate speech,” she said. “What is illegal offline is also illegal online.”
MEPs from the S&D, Green, Renew and Left parties called on the Commission to take tougher action against the platforms. “They must act strongly and quickly now”, said Alexandra Geese (Greens), for example. MEPs from the far right, on the other hand, criticized the DSA for restricting freedom of expression and endangering democracy.
Andreas Schwab (CDU) said that it must be ensured that individual opinions are not amplified by bots or algorithmic distortions. Everyone has the right to express their opinion. However, this right is not unlimited. “There is no freedom of opinion without plurality.” He also called for immediate action by the Commission in the event of violations of the DSA. The sanctions laid down in the law must take immediate effect. vis
Providers of social media platforms and online marketplaces continue to use manipulative designs in their apps, even though the Digital Services Act (DSA) prohibits this. This is shown by a study by the German consumer association VZBV, which is available to Table.Briefings. At the end of last year, the VZBV examined the offerings of 18 Android apps – from Amazon, eBay, Shein and Temu to Facebook, Instagram, TikTok, X, Kaufland, Mediamarkt, Otto and Zalando.
According to the VZBV, providers use designs that tempt consumers to make impulsive purchasing decisions and increase the time spent on the platforms. The consumer advocates consider Hyper-Engaging Dark Patterns (HEDP) to be particularly problematic. These can encourage addictive behavior and have a negative impact on mental health.
Examples of HEDP include intrusive notifications, autoplay, and the use of gamification and gaming elements. The results of the study show that all of the platforms examined use such elements, albeit to varying degrees.
Some of these harmful designs and unauthorized cookies have been stopped in recent years, for example through warnings against Temu and Shein, said Jutta Gurkmann, Head of Consumer Policy at VZBV. But that alone is not enough. “The responsible authorities must now consistently enforce existing regulations.”
Gurkmann called for clear rules for digital fairness and against harmful design practices on the internet – including in general consumer law. After all, manipulation also exists with other online offerings such as retailer websites or apps. “The European Commission must use the forthcoming Digital Fairness Act to ensure real fairness online,” said Gurkmann. vis
As the AI Act takes effect and companies prepare for its implementation, one crucial piece of legislation regulating artificial intelligence remains pending: the AI Liability Directive (AILD). Axel Voss (CDU), the rapporteur, and his chief of staff, Kai Zenner, have now presented a timeline for further work on the European Commission’s proposal.
The relevant materials have now been reviewed, and Voss plans to present the initial findings on Feb. 3. On the same date, the first six-week stakeholder consultation is set to begin, Zenner announced on LinkedIn. The aim is to provide a clearer picture of “what we intend to do over the next 12 months so that you can plan accordingly.”
As AILD rapporteur, Axel Voss aims to conduct a legislative process that is “accessible, transparent, and empirically.” To this end, three stakeholder consultations will give all interested parties the opportunity to contribute.
The timeline includes the publication of a draft report in June, followed by a deadline for amendments in July. The second half of the year will be dedicated to negotiating compromises, with the final vote scheduled for January 2026. Zenner has pledged to keep the schedule regularly updated and to provide ongoing updates.
The transmission system operators’ report on the possible reconfiguration of the European electricity bidding zones cannot be published as planned on Jan. 27. The Bidding Zone Review Report will now be published at the end of the first quarter, a person familiar with the matter told Table.Briefings on Tuesday. The publication of the report marks the start of the deadline for member states and the Commission to make a decision on bidding zone sharing.
The reason for the postponement is said to be that the EU Commission is insisting that the transmission system operators calculate all commissioned scenarios – in particular a division of Germany into five electricity price zones. The TSOs consider the significance of the outstanding calculations to be limited, but still have to carry them out. The grid operator association ENTSO-E did not respond to a corresponding request on Tuesday. ber
According to an analysis by the Danish energy group Ørsted, Europe could have offshore wind farms with an additional capacity of 70 gigawatts (GW) by 2050 if planned and operated across borders. This is what Duncan Clark, Head of Region Europe Development, said on Tuesday at the Handelsblatt Energy Summit in Berlin. For comparison, in the Ostend Declaration, the countries of the North Sea had agreed to build 300 GW of offshore capacity by the middle of the century.
The background to this is optimized land use in cross-border planning. For example, a purely national approach can result in one wind farm overshadowing another and reducing the overall output. A joint approach could also reduce grid connection costs. Until now, European planning has been made more difficult because participating countries do not agree on cost sharing.
However, in order to accelerate the expansion of offshore wind farms, suppliers would have to triple their capacities, said Clark. However, given the slow pace of electrification of energy consumption, economists have recently called for delaying the expansion of cost-intensive offshore energy in particular. ber
The European Investment Bank (EIB) wants to significantly increase its support for the defense industry. Last year, the development bank achieved a record sum of one billion euros in investments in the areas of security and defense, said EIB President Nadia Calviño at a meeting with EU finance ministers in Brussels. She expects this amount to be doubled in 2025.
Against the backdrop of the Russian war of aggression against Ukraine, the EU is trying to ramp up arms production. To this end, previous EIB guidelines for cash flows into the industry were changed last year. At the same time, politicians are increasingly calling on the financial sector to invest more in security and defense.
Many of the EU countries are also NATO members and are under additional pressure after US President Donald Trump repeatedly called on them to drastically increase their defense spending. dpa
Following the annulment of the first round of the presidential election in Romania, right-wing extremist Călin Georgescu has failed with an urgent application before the European Court of Human Rights (ECtHR). With a so-called application for interim measures, Georgescu wanted the court to oblige the Romanian government to, among other things, recognize the result of the first round of voting and organize another round of voting.
However, the judges in Strasbourg unanimously rejected this: such measures are only applicable if there is a risk of irreparable damage to human rights. This was not the case here. Whether Georgescu’ s human rights were violated by the annulment of the election will only be decided by the Court at a later stage.
In the Nov. 24 election, the far-right, pro-Russian politician unexpectedly secured first place. However, Romania’s Constitutional Court declared the results invalid and ordered a repeat election, citing significant irregularities in the entire voting process.
The Romanian Constitutional Court had argued, among other things, that voters had been manipulated in the election by unlawfully giving preferential treatment to one candidate on social media. Georgescu, who was little known until shortly before the election, had mainly campaigned for himself on TikTok. TikTok had failed to label Georgescu as a politician and his posts as election advertising, Romania’s government complained. The public prosecutor’s office is currently investigating this.
Only recently, Georgescu’s attempt to have the election annulled was thwarted by Romania’s judiciary. He had filed a lawsuit against the electoral authorities because they had implemented the Constitutional Court’s decision to annul the election and ordered a re-run. Romania’s highest court dismissed this case. The new presidential election is due to take place on May 4. A possible run-off election is planned for May 18. dpa
Andreas Schwab, CDU MEP, was elected Chair of the Conference of Delegation Chairs. This is the political body of the Parliament that coordinates the work of the Parliament’s permanent delegations. Schwab is also EPP Coordinator in the Committee on the Internal Market and Consumer Protection (IMCO).
The Council has appointed Preben Aamann as the new Director General for Communication and Information (COMM). He will take up his post on Feb. 1. The Dane is currently Head of the Council’s Press Office. Between 2012 and 2019, he worked as Deputy Spokesperson for the President of the European Council, Herman Van Rompuy, and as Spokesperson for the President of the European Council, Donald Tusk.
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