Instead of the originally planned Council of Ministers, there was a working lunch in a small group. The disagreements between the two largest countries in the EU had grown in recent weeks, and apparently, the two heads of state, Chancellor Olaf Scholz and President Emmanuel Macron, needed to talk: Instead of the planned 20 minutes, Scholz and Macron consulted privately for three hours. They remained silent about what exactly they talked about, and there was no joint press conference, as Tanja Kuchenbecker reports from Paris.
Markus Grabitz has looked at a proposal from the EU Commission to improve air and water quality. In it, the Commission proposes to significantly lower the limits for air pollutants and to add new substances to the list of the most dangerous water pollutants. Read his Feature to find out what else the proposal contains.
A topic that has recently receded somewhat into the background is now boiling up again: There is a threat of a food supply shortage due to Russia’s war of aggression in Ukraine. A renewed naval blockade by Russia with all its consequences cannot be ruled out, as Timo Landenberger reports.
Currently, transfers to accounts within the EU take several hours to days – an unacceptable situation that the EU Commission wants to change soon. It wants to make real-time transfers not only mandatory but also free of charge.
Another look at Downing Street: In a telephone conversation with the newly elected British Prime Minister Rishi Sunak, EU Commission President Ursula von der Leyen stressed yesterday that she was looking forward to working together on important issues such as climate change and the war in Ukraine. Von der Leyen tweeted after the talks that it was also important for the European Union to find joint solutions within the framework of the Northern Ireland Protocol that would offer stability and reliability.
On Wednesday, the two heads of state met with their teams for lunch at the Élysée Palace. In the end, they did have a lot to say to each other. The one-on-one meeting, originally scheduled for just 20 minutes, ended up lasting three hours.
In the run-up to the meeting, the French side had made it clear how deep the rift was. The Élysée Palace had let the Chancellor’s Office run roughshod over the protocol. It was quite astonishing and unprecedented how Macron’s entourage blatantly revealed the miserable state of mutual relations to the outside world. What had happened? Over the weekend, the German side had announced a joint press conference. A little later, there was only talk of a subsequent statement by Scholz. After all, there was nothing official at all.
Not even a reaction to the meeting was announced from the Élysée Palace. Only the photographers were invited to the courtyard of the Élysée Palace to photograph the meeting of the two. At first, it seemed as if the two did not want to appear in front of the camera together, lest their differences come out clearly. An affront to Scholz, wrote the business newspaper Les Echos.
What has happened to the Franco-German engine in the EU? It has been sputtering, at least since Scholz took office. In the past, Paris and Berlin saw many dossiers differently at the beginning. Even under Merkel, there were differences, for example, when Macron presented his reform plans at the Sorbonne speech. There was no response from Germany for a long time.
The reliable thing, however, was that both sides have always been able to get together in the past decades and agree on compromises at some point. On one side, the extroverted, sometimes dramatic Macron; on the other, the stodgy, Hanseatic Scholz: So far, the two have never been able to find a personal approach to each other. Will they succeed this time? It is too early to make a final assessment.
The foundation of relations is still solid. German government circles said that the meeting was “intensive and based on partnership”. At first, they reportedly discussed a general outlook and the prospects for Europe, defense and security policy, as well as short-term issues such as energy and the economy. The impression was that they were of one mind on major issues, especially Europe. The talks were forward-looking. However, no details or concrete agreements were disclosed.
After the talks, Scholz said Macron and he had a “very good and important conversation.” “Germany and France stand close together and face challenges together,” the chancellor tweeted.
Later, the respective teams engaged in diplomatic pleasantries. They were also told that the French president had underscored a growing convergence between Germany and France over the past five years. France has implemented structural reforms and Germany has moved closer to the French position in foreign and security policy through geopolitical developments.
French media commented that there was a will to appease after the Council of Ministers was canceled. Élysée circles said the meeting had been “very constructive.” Even as the two spoke, government spokesman Olivier Véran said that for five years the Franco-German pair had succeeded at the European level in achieving a reconstruction plan that had never existed before. He said the two countries have always moved forward: “The strength of the Franco-German couple is that they always manage to reach an understanding.” He said the meeting showed that the friendship was very still much alive.
Recently, there have been numerous media reports in France and Germany about conflicts over energy policy and defense, among other issues. The interests were too different, it was said. France had also accused Germany of thinking first of German and not European interests. France was disappointed in the chancellor, it sounded. Macron accused Germany of “isolating” itself.
The Commission wants to make water and air cleaner. To this end, it has presented proposals for directives on air pollution control and wastewater treatment, as well as measures to protect groundwater from pollution. 25 substances with problematic consequences for nature and humans are to be added to the list of water pollutants to protect surface waters. The following substances will be included on this list:
The Commission wants to make sure that the fish kill in the Odra River does not happen again and therefore wants to establish a mandatory warning system downstream of an event.
Wastewater treatment plants are supposed to achieve energy neutrality by 2040. The quality of sewage sludge is also supposed to be improved. It will become mandatory to recover nutrients from wastewater. There will also be new standards for microplastics and micropollutants. The threshold for mandatory wastewater treatment plants, which is currently 2,000 for settlements, will be lowered to 1,000. Larger settlements will have to submit management plans for heavy rains, which are becoming more frequent due to global warming. As a result of the Covid-19 pandemic, wastewater will have to be tested for various viruses and antimicrobial resistance. Member states will also have to ensure that vulnerable groups in society also have access to clean water.
Since more than 90 percent of toxic micropollutants in wastewater originate from cosmetics and pharmaceuticals, there will be extended producer liability. Companies will have to pay for the elimination of the damage. In addition, the potential for renewable energies in the wastewater sector is supposed to be tapped. Biogas is an option here. In addition, sulfur from sewage sludge is supposed to be used for the fertilizer industry.
The Commission proposes to introduce stricter limit values for air pollutants from 2030. It does not want to transfer the guideline values proposed by the WHO in 2021 1:1 into EU legislation. By 2050, it wants to ensure that there is no air pollution at all. The limit values will be continuously tightened from 2030 onwards according to the respective scientific status. The criteria for positioning the measuring stations will not be fundamentally changed. This means that, as before, measurements would have to be taken at a distance of ten meters or less from the road. The limit values for air pollutants will be more than halved in some cases. The following is about the annual average value:
There are also limits for sulfur dioxide, benzene, carbon monoxide and various heavy metals.
Eight months into the Russian assault on Ukraine, the impact on global food security and food prices continues to be severe. The situation has recently been alleviated by the lifting of Russia’s blockade of Ukrainian Black Sea ports. However, that could soon change again.
The fragile agreement, which has allowed Ukrainian grain to be exported by sea again since the end of July, expires at the end of November. An extension is not considered certain; after all, Kremlin leader Vladimir Putin has already threatened further blockades and called the agreement a “rip-off” because the agreed easing of sanctions has not been observed.
Before the outbreak of the war, five to six million tons of agricultural products were shipped monthly through the ports around Odesa. After the full blockade, the figure was 3.9 million tons in September, Ukrainian Deputy Agriculture Minister Markian Dmytrasevych told the European Parliament this week. During an exchange with the Agriculture Committee, he called on the EU to work for a continuation of the agreement. This is “absolutely crucial” for Ukrainian agriculture, he said, as well as for numerous countries that depend on supplies.
However, there are already considerable delays. About 150 ships are stuck in traffic jams on the Bosphorus. According to Dmytrasevych, this is due to disproportionately long inspections of the freighters, which is causing Russia to artificially prolong the passage. One should probably be prepared for the sea route to be completely blocked again soon.
This makes it all the more important to further increase the capacities of the EU’s so-called solidarity lanes. These are already being fully utilized. Recently, around three million tons of agricultural products were exported monthly via the alternative routes. These include Romania and the Danube in particular, but also the Polish overland route. But the hurdles are still high.
A freighter can transport up to 82,000 tons of grain. This would require 41 freight trains. Or 3280 trucks. The main problem with rail transport: Different track gauges in Ukraine and Western Europe, which is why the grain has to be loaded at the border. But the appropriate technology and loading terminals are still lacking.
And while Ukraine has about 24,000 wagons for transporting grain, there are only about half that number in all of Western Europe, Dmytrasevych said. This is one of the reasons why the company is in talks with the Polish government about building a pipeline for edible oil. After all, about half of the world’s demand for sunflower oil comes from Ukraine.
On Wednesday, the EU Parliament’s Transport Committee also cleared the way for a new road transport agreement with Ukraine and Moldova. Among other things, this is intended to facilitate transport between the respective countries without requiring additional permits. For example, Ukrainian driver’s licenses will retain their validity in the EU as well. This is an important step in solving the “bottlenecks” at the border because the border crossings have been completely congested since the outbreak of the war, which is why trucks are often stuck in traffic jams for several days.
Added to the logistics problems are the hugely increased costs of insurance and transportation of agricultural products, Dmytrasevych said. “Ukraine is a net exporter of grain. Prices in our country are lower than the cost of cultivation for farmers.” However, he said, if costs were no longer covered even for exports, the entire industry, one of the most important sectors for Ukraine’s economy, would be in danger of collapsing in the long run.
The deputy minister went on to say that significant crop losses must also be expected for the coming year. Twenty percent of agricultural land is inaccessible due to mines and is located in occupied or contested territory. However, due to massive shortages of seeds, fertilizers as well as other production factors, even the remaining land could not be fully cultivated. “For winter cereals, we have been able to sow only 60 percent of the arable land so far.” Livestock production has also declined by about 15 percent.
The reason for this, in addition to the destruction of numerous stables, was a bottleneck in energy supply, said Dmytrasevych, who asked the EU for assistance in supplying seeds, fertilizers and diesel generators. But the deputies gave the deputy minister little hope, at least in this regard. Fertilizers and generators are also lacking in the EU.
Since the outbreak of the war in Ukraine, the situation on the global food market has worsened significantly. Numerous countries, particularly in North Africa and the Middle East, are heavily dependent on grain supplies from Russia and Ukraine. Egypt, for example, obtains 80 percent of its wheat requirements from the two countries.
The European Union, on the other hand, is largely self-sufficient in the supply of basic foodstuffs and has been able to increase its own cereal exports in recent months. Nevertheless, the explosion in food prices also has an impact here. Since March, food inflation has risen from almost zero to 16 percent, says agricultural and economic scientist Rico Ihle. This particularly affects poorer households, which have to spend up to a third of their income on food.
In addition, the simplified introduction of Ukrainian agricultural goods into the EU is causing local market distortions, explained the European Commission’s Directorate-General for Agriculture. For example, cheap feed corn suddenly leads to unprecedented competition in eastern Poland or Romania.
In the digital age, it is hard to understand why euro transfers from one EU account to another take hours or even days. It is true that banks in Germany also offer real-time transfers, but they often charge an extra fee for it, which is why customers rarely use real-time transfers. In Europe as a whole, too, only eleven percent of all euro transfers are instant payments. The EU Commission wants to change that and make instant payments the standard.
Consumers and businesses are expected to benefit from both the speed (less than ten seconds) and convenience (available 365 days around the clock) of instant payments. The EU also wants this to free up nearly €200 billion a day that are currently blocked in the “payments room” financial system. “This ability to send and receive money in seconds is particularly important at a time when household and SME bills are rising and every penny counts,” said Financial Markets Commissioner Mairead McGuinness when presenting the regulatory proposal on Wednesday.
The 2012 proposal to amend the Single Euro Payments Area (SEPA) Regulation contains four requirements for euro instant payments:
The German banking industry (DK) believes that “such a far-reaching and inappropriate intervention in the market” cannot be justified because there is “basically no market failure”. A legislative preference for real-time transfers runs the risk of “setting false incentives contrary to actual customer needs”. DK calls for a more detailed analysis of aspects such as rising payment processing costs or fraud risks in the legislative process.
The German retail association HDE, on the other hand, supports “the modernization of the EU’s payment system.” Ulrich Binnebößel, HDE’s head of payments, says promoting instant payments is a big step forward. “Similar to the SEPA credit transfer and SEPA direct debit, the banks must be held accountable,” HDE demands. The European consumer organization BEUC also thinks: “Instant transfers should not be a premium service. It’s time to make them the new normal.”
For Markus Ferber (CSU), economic policy spokesman for the EPP Group, a well-functioning ecosystem for instant payments has another advantage: “If instant payments work, there is no longer any scope for stablecoins in the area of payments.” After all, one of the key benefits of private stablecoin initiatives is said to be real-time payment processing. vis
“Let’s see if the German network now supports a video call from the road,” Dirk Martin says from the back seat of his car. It’s jerky, not enough for video during the interview. But Martin doesn’t let that stop him. The 51-year-old founder and entrepreneur of the software company Serviceware constantly deals with the pitfalls of digitization in Germany and Europe.
He is the regional chairman of the family business association in Hesse and he heads the Strategic Advisory Board. Its task is to think about the future for the 6,000-member association, deepen issues and engage in exchange. Martin and his colleagues invite guests to the meetings of the 20-member advisory board. Discussions are held intensively and confidentially in small groups.
The outcome varies. But there are always takeaways, he said. “But it can also be that a commission is then formed.” During the Covid years, the meetings were canceled; face-to-face discourse in presence was part of the concept, he said. In April, Martin and his colleagues were finally able to sit together again. “This is a ‘hobby,’” he says of volunteering. “First and foremost, we are operational entrepreneurs.”
And as such, he is primarily concerned with the practical effects of digital policy – or rather, non-digital policy. In his opinion, “we’re treading water in some areas“. He finds it incomprehensible, for example, why employment contracts in Germany can no longer be signed digitally.
“I don’t know any colleague who doesn’t think this is humbug.” Berlin has unnecessarily chosen a more complicated path in implementing the EU directive on transparent and predictable working conditions than many other states.
In principle, however, Martin sees “huge potential” in European legislation. It could, for example, ensure better digitalized administration. “We are looking very closely at Brussels, hoping that this will perhaps create more external pressure on national authorities.”
Martin has been involved with the Association of Family Entrepreneurs for a long time. During his studies, he became a member of the young entrepreneurs section. Shortly after graduating with a degree in industrial engineering, he founded his company which has been listed on the stock exchange since 2018. What distinguishes a family business from others? “Being enkelfähig,” Martin says.
“Our strategy is very long-term, not just quarterly driven.” Over long periods of time, ups and downs were part of it. That’s why he’s still confident despite the current cluster of crises: “We have to make the best of it.” Paul Meerkamp
Instead of the originally planned Council of Ministers, there was a working lunch in a small group. The disagreements between the two largest countries in the EU had grown in recent weeks, and apparently, the two heads of state, Chancellor Olaf Scholz and President Emmanuel Macron, needed to talk: Instead of the planned 20 minutes, Scholz and Macron consulted privately for three hours. They remained silent about what exactly they talked about, and there was no joint press conference, as Tanja Kuchenbecker reports from Paris.
Markus Grabitz has looked at a proposal from the EU Commission to improve air and water quality. In it, the Commission proposes to significantly lower the limits for air pollutants and to add new substances to the list of the most dangerous water pollutants. Read his Feature to find out what else the proposal contains.
A topic that has recently receded somewhat into the background is now boiling up again: There is a threat of a food supply shortage due to Russia’s war of aggression in Ukraine. A renewed naval blockade by Russia with all its consequences cannot be ruled out, as Timo Landenberger reports.
Currently, transfers to accounts within the EU take several hours to days – an unacceptable situation that the EU Commission wants to change soon. It wants to make real-time transfers not only mandatory but also free of charge.
Another look at Downing Street: In a telephone conversation with the newly elected British Prime Minister Rishi Sunak, EU Commission President Ursula von der Leyen stressed yesterday that she was looking forward to working together on important issues such as climate change and the war in Ukraine. Von der Leyen tweeted after the talks that it was also important for the European Union to find joint solutions within the framework of the Northern Ireland Protocol that would offer stability and reliability.
On Wednesday, the two heads of state met with their teams for lunch at the Élysée Palace. In the end, they did have a lot to say to each other. The one-on-one meeting, originally scheduled for just 20 minutes, ended up lasting three hours.
In the run-up to the meeting, the French side had made it clear how deep the rift was. The Élysée Palace had let the Chancellor’s Office run roughshod over the protocol. It was quite astonishing and unprecedented how Macron’s entourage blatantly revealed the miserable state of mutual relations to the outside world. What had happened? Over the weekend, the German side had announced a joint press conference. A little later, there was only talk of a subsequent statement by Scholz. After all, there was nothing official at all.
Not even a reaction to the meeting was announced from the Élysée Palace. Only the photographers were invited to the courtyard of the Élysée Palace to photograph the meeting of the two. At first, it seemed as if the two did not want to appear in front of the camera together, lest their differences come out clearly. An affront to Scholz, wrote the business newspaper Les Echos.
What has happened to the Franco-German engine in the EU? It has been sputtering, at least since Scholz took office. In the past, Paris and Berlin saw many dossiers differently at the beginning. Even under Merkel, there were differences, for example, when Macron presented his reform plans at the Sorbonne speech. There was no response from Germany for a long time.
The reliable thing, however, was that both sides have always been able to get together in the past decades and agree on compromises at some point. On one side, the extroverted, sometimes dramatic Macron; on the other, the stodgy, Hanseatic Scholz: So far, the two have never been able to find a personal approach to each other. Will they succeed this time? It is too early to make a final assessment.
The foundation of relations is still solid. German government circles said that the meeting was “intensive and based on partnership”. At first, they reportedly discussed a general outlook and the prospects for Europe, defense and security policy, as well as short-term issues such as energy and the economy. The impression was that they were of one mind on major issues, especially Europe. The talks were forward-looking. However, no details or concrete agreements were disclosed.
After the talks, Scholz said Macron and he had a “very good and important conversation.” “Germany and France stand close together and face challenges together,” the chancellor tweeted.
Later, the respective teams engaged in diplomatic pleasantries. They were also told that the French president had underscored a growing convergence between Germany and France over the past five years. France has implemented structural reforms and Germany has moved closer to the French position in foreign and security policy through geopolitical developments.
French media commented that there was a will to appease after the Council of Ministers was canceled. Élysée circles said the meeting had been “very constructive.” Even as the two spoke, government spokesman Olivier Véran said that for five years the Franco-German pair had succeeded at the European level in achieving a reconstruction plan that had never existed before. He said the two countries have always moved forward: “The strength of the Franco-German couple is that they always manage to reach an understanding.” He said the meeting showed that the friendship was very still much alive.
Recently, there have been numerous media reports in France and Germany about conflicts over energy policy and defense, among other issues. The interests were too different, it was said. France had also accused Germany of thinking first of German and not European interests. France was disappointed in the chancellor, it sounded. Macron accused Germany of “isolating” itself.
The Commission wants to make water and air cleaner. To this end, it has presented proposals for directives on air pollution control and wastewater treatment, as well as measures to protect groundwater from pollution. 25 substances with problematic consequences for nature and humans are to be added to the list of water pollutants to protect surface waters. The following substances will be included on this list:
The Commission wants to make sure that the fish kill in the Odra River does not happen again and therefore wants to establish a mandatory warning system downstream of an event.
Wastewater treatment plants are supposed to achieve energy neutrality by 2040. The quality of sewage sludge is also supposed to be improved. It will become mandatory to recover nutrients from wastewater. There will also be new standards for microplastics and micropollutants. The threshold for mandatory wastewater treatment plants, which is currently 2,000 for settlements, will be lowered to 1,000. Larger settlements will have to submit management plans for heavy rains, which are becoming more frequent due to global warming. As a result of the Covid-19 pandemic, wastewater will have to be tested for various viruses and antimicrobial resistance. Member states will also have to ensure that vulnerable groups in society also have access to clean water.
Since more than 90 percent of toxic micropollutants in wastewater originate from cosmetics and pharmaceuticals, there will be extended producer liability. Companies will have to pay for the elimination of the damage. In addition, the potential for renewable energies in the wastewater sector is supposed to be tapped. Biogas is an option here. In addition, sulfur from sewage sludge is supposed to be used for the fertilizer industry.
The Commission proposes to introduce stricter limit values for air pollutants from 2030. It does not want to transfer the guideline values proposed by the WHO in 2021 1:1 into EU legislation. By 2050, it wants to ensure that there is no air pollution at all. The limit values will be continuously tightened from 2030 onwards according to the respective scientific status. The criteria for positioning the measuring stations will not be fundamentally changed. This means that, as before, measurements would have to be taken at a distance of ten meters or less from the road. The limit values for air pollutants will be more than halved in some cases. The following is about the annual average value:
There are also limits for sulfur dioxide, benzene, carbon monoxide and various heavy metals.
Eight months into the Russian assault on Ukraine, the impact on global food security and food prices continues to be severe. The situation has recently been alleviated by the lifting of Russia’s blockade of Ukrainian Black Sea ports. However, that could soon change again.
The fragile agreement, which has allowed Ukrainian grain to be exported by sea again since the end of July, expires at the end of November. An extension is not considered certain; after all, Kremlin leader Vladimir Putin has already threatened further blockades and called the agreement a “rip-off” because the agreed easing of sanctions has not been observed.
Before the outbreak of the war, five to six million tons of agricultural products were shipped monthly through the ports around Odesa. After the full blockade, the figure was 3.9 million tons in September, Ukrainian Deputy Agriculture Minister Markian Dmytrasevych told the European Parliament this week. During an exchange with the Agriculture Committee, he called on the EU to work for a continuation of the agreement. This is “absolutely crucial” for Ukrainian agriculture, he said, as well as for numerous countries that depend on supplies.
However, there are already considerable delays. About 150 ships are stuck in traffic jams on the Bosphorus. According to Dmytrasevych, this is due to disproportionately long inspections of the freighters, which is causing Russia to artificially prolong the passage. One should probably be prepared for the sea route to be completely blocked again soon.
This makes it all the more important to further increase the capacities of the EU’s so-called solidarity lanes. These are already being fully utilized. Recently, around three million tons of agricultural products were exported monthly via the alternative routes. These include Romania and the Danube in particular, but also the Polish overland route. But the hurdles are still high.
A freighter can transport up to 82,000 tons of grain. This would require 41 freight trains. Or 3280 trucks. The main problem with rail transport: Different track gauges in Ukraine and Western Europe, which is why the grain has to be loaded at the border. But the appropriate technology and loading terminals are still lacking.
And while Ukraine has about 24,000 wagons for transporting grain, there are only about half that number in all of Western Europe, Dmytrasevych said. This is one of the reasons why the company is in talks with the Polish government about building a pipeline for edible oil. After all, about half of the world’s demand for sunflower oil comes from Ukraine.
On Wednesday, the EU Parliament’s Transport Committee also cleared the way for a new road transport agreement with Ukraine and Moldova. Among other things, this is intended to facilitate transport between the respective countries without requiring additional permits. For example, Ukrainian driver’s licenses will retain their validity in the EU as well. This is an important step in solving the “bottlenecks” at the border because the border crossings have been completely congested since the outbreak of the war, which is why trucks are often stuck in traffic jams for several days.
Added to the logistics problems are the hugely increased costs of insurance and transportation of agricultural products, Dmytrasevych said. “Ukraine is a net exporter of grain. Prices in our country are lower than the cost of cultivation for farmers.” However, he said, if costs were no longer covered even for exports, the entire industry, one of the most important sectors for Ukraine’s economy, would be in danger of collapsing in the long run.
The deputy minister went on to say that significant crop losses must also be expected for the coming year. Twenty percent of agricultural land is inaccessible due to mines and is located in occupied or contested territory. However, due to massive shortages of seeds, fertilizers as well as other production factors, even the remaining land could not be fully cultivated. “For winter cereals, we have been able to sow only 60 percent of the arable land so far.” Livestock production has also declined by about 15 percent.
The reason for this, in addition to the destruction of numerous stables, was a bottleneck in energy supply, said Dmytrasevych, who asked the EU for assistance in supplying seeds, fertilizers and diesel generators. But the deputies gave the deputy minister little hope, at least in this regard. Fertilizers and generators are also lacking in the EU.
Since the outbreak of the war in Ukraine, the situation on the global food market has worsened significantly. Numerous countries, particularly in North Africa and the Middle East, are heavily dependent on grain supplies from Russia and Ukraine. Egypt, for example, obtains 80 percent of its wheat requirements from the two countries.
The European Union, on the other hand, is largely self-sufficient in the supply of basic foodstuffs and has been able to increase its own cereal exports in recent months. Nevertheless, the explosion in food prices also has an impact here. Since March, food inflation has risen from almost zero to 16 percent, says agricultural and economic scientist Rico Ihle. This particularly affects poorer households, which have to spend up to a third of their income on food.
In addition, the simplified introduction of Ukrainian agricultural goods into the EU is causing local market distortions, explained the European Commission’s Directorate-General for Agriculture. For example, cheap feed corn suddenly leads to unprecedented competition in eastern Poland or Romania.
In the digital age, it is hard to understand why euro transfers from one EU account to another take hours or even days. It is true that banks in Germany also offer real-time transfers, but they often charge an extra fee for it, which is why customers rarely use real-time transfers. In Europe as a whole, too, only eleven percent of all euro transfers are instant payments. The EU Commission wants to change that and make instant payments the standard.
Consumers and businesses are expected to benefit from both the speed (less than ten seconds) and convenience (available 365 days around the clock) of instant payments. The EU also wants this to free up nearly €200 billion a day that are currently blocked in the “payments room” financial system. “This ability to send and receive money in seconds is particularly important at a time when household and SME bills are rising and every penny counts,” said Financial Markets Commissioner Mairead McGuinness when presenting the regulatory proposal on Wednesday.
The 2012 proposal to amend the Single Euro Payments Area (SEPA) Regulation contains four requirements for euro instant payments:
The German banking industry (DK) believes that “such a far-reaching and inappropriate intervention in the market” cannot be justified because there is “basically no market failure”. A legislative preference for real-time transfers runs the risk of “setting false incentives contrary to actual customer needs”. DK calls for a more detailed analysis of aspects such as rising payment processing costs or fraud risks in the legislative process.
The German retail association HDE, on the other hand, supports “the modernization of the EU’s payment system.” Ulrich Binnebößel, HDE’s head of payments, says promoting instant payments is a big step forward. “Similar to the SEPA credit transfer and SEPA direct debit, the banks must be held accountable,” HDE demands. The European consumer organization BEUC also thinks: “Instant transfers should not be a premium service. It’s time to make them the new normal.”
For Markus Ferber (CSU), economic policy spokesman for the EPP Group, a well-functioning ecosystem for instant payments has another advantage: “If instant payments work, there is no longer any scope for stablecoins in the area of payments.” After all, one of the key benefits of private stablecoin initiatives is said to be real-time payment processing. vis
“Let’s see if the German network now supports a video call from the road,” Dirk Martin says from the back seat of his car. It’s jerky, not enough for video during the interview. But Martin doesn’t let that stop him. The 51-year-old founder and entrepreneur of the software company Serviceware constantly deals with the pitfalls of digitization in Germany and Europe.
He is the regional chairman of the family business association in Hesse and he heads the Strategic Advisory Board. Its task is to think about the future for the 6,000-member association, deepen issues and engage in exchange. Martin and his colleagues invite guests to the meetings of the 20-member advisory board. Discussions are held intensively and confidentially in small groups.
The outcome varies. But there are always takeaways, he said. “But it can also be that a commission is then formed.” During the Covid years, the meetings were canceled; face-to-face discourse in presence was part of the concept, he said. In April, Martin and his colleagues were finally able to sit together again. “This is a ‘hobby,’” he says of volunteering. “First and foremost, we are operational entrepreneurs.”
And as such, he is primarily concerned with the practical effects of digital policy – or rather, non-digital policy. In his opinion, “we’re treading water in some areas“. He finds it incomprehensible, for example, why employment contracts in Germany can no longer be signed digitally.
“I don’t know any colleague who doesn’t think this is humbug.” Berlin has unnecessarily chosen a more complicated path in implementing the EU directive on transparent and predictable working conditions than many other states.
In principle, however, Martin sees “huge potential” in European legislation. It could, for example, ensure better digitalized administration. “We are looking very closely at Brussels, hoping that this will perhaps create more external pressure on national authorities.”
Martin has been involved with the Association of Family Entrepreneurs for a long time. During his studies, he became a member of the young entrepreneurs section. Shortly after graduating with a degree in industrial engineering, he founded his company which has been listed on the stock exchange since 2018. What distinguishes a family business from others? “Being enkelfähig,” Martin says.
“Our strategy is very long-term, not just quarterly driven.” Over long periods of time, ups and downs were part of it. That’s why he’s still confident despite the current cluster of crises: “We have to make the best of it.” Paul Meerkamp
