Scholz’s offer to Europe + Repair • Table.Briefings

Dear reader,

Nils Redeker of the Jacques Delors Centre shares his views on the keynote speech on European policy that Chancellor Scholz gave in Prague yesterday: “The speech is predominantly insightful because it reveals what the German government is prepared to talk about.” The Chancellor’s well-known positions were discussed, such as his support for the admission of the Western Balkan countries, Ukraine, Moldova and, in the long term, Georgia. But Scholz also provided new impetus, for example, by suggesting that Germany would be open to a new aid program along the lines of SURE to mitigate the consequences of the energy crisis. The topics that Scholz neglected to mention drew especially prominent criticism. You can read more about it in our detailed analysis of the speech.

It remains more attractive to simply invest in brand new electric appliances instead of repairing old, defective ones – however, this is supposed to change. The reparability of products could become a visible criterion when buying a smartphone or a washing machine. Several member states, such as Spain, Belgium and Germany, have concrete plans for a repair label. The EU Commission has yet to submit such a proposal. France is already a step ahead: Last year, the country introduced the Indice de réparabilité. The initial results are positive, but NGOs have also identified weaknesses, as Leonie Düngefeld reports.

The EU is working on an emergency instrument to counter the effects of high electricity prices. It is expected to take effect soon. “It is a matter of weeks,” said EU Commission President Ursula von der Leyen at an event with Economic Affairs Minister Robert Habeck at the German Federal Ministry for Economic Affairs yesterday. She also announced a structural reform of the electricity market, which Europe.Table already reported on last week. Here, too, things are supposed to move quickly: The reform is already planned for the beginning of 2023. Read more in the News.

Your
Sarah Schaefer

Scholz presents his offer to Europe

By

Till Hoppe

It will soon be five years since Emmanuel Macron presented his proposals for the European Union at the Sorbonne University in Paris. Under Angela Merkel, the German government failed to respond. The Russian attack on Ukraine, however, has forced the community into a reform discussion that its successor, Olaf Scholz, neither could nor wanted to avoid. In a keynote speech yesterday at Prague’s Charles University, the chancellor outlined his government’s ideas for the future of Europe.

The Czech Republic holds the EU presidency in the second half of the year, but Scholz also wanted to send a message to the Central and Eastern European countries at this point: During the Cold War, their citizens had the feeling of having been forgotten by the West behind the Iron Curtain. This still has an impact today, also in the debates about the future of the EU.

At the scene of the Prague Spring in 1968 and the Velvet Revolution in 1989, the chancellor also wanted to clarify “where the dividing line will be in the future between this free Europe and a neo-imperial autocracy“. Putin’s Russia will define itself in opposition to the European Union for the foreseeable future, he said. China, too, is taking advantage of the open flanks offered by the Europeans. For the EU, he said, it is therefore no longer a matter of just securing peace at home but also of ensuring security abroad. To do this, it must “close ranks, overcome old conflicts and find new solutions”.

He had already touched on many of his concrete proposals in recent months, but Scholz also provided new impetus: He offered to neighboring countries to jointly build a European air defense system. Additionally, Scholz hinted that Germany would be open to a new aid program along the lines of SURE to cushion the impact of the energy crisis. “The speech is particularly revealing because it shows what the German government is willing to talk about,” says Nils Redeker, deputy director of the Jacques Delors Centre. The concrete content would now have to follow.

The chancellor identifies these fields of action :

EU enlargement and reform

Scholz again spoke out in favor of admitting new member states – the Western Balkan countries, Ukraine, Moldova and, in perspective, Georgia. “Europe’s center is moving eastward,” he said, echoing historian Karl Schlögel. If the EU is serious about the prospect of accession, however, it will have to reform itself. Treaty changes are also conceivable “if we come to that conclusion together”. Recently, however, about half of the member states rejected this.

Scholz also supported Macron’s proposal for a European Political Community to bind the non-EU countries more closely to the bloc. Specifically, he advocated sitting down once or twice a year with the heads of state and government of these countries to discuss key issues such as security and energy. However, the EPG should explicitly not be an alternative to accession.
The necessary EU reforms include moving from the principle of unanimity to majority decisions in certain policy areas. In addition to foreign policy, Scholz explicitly mentioned tax policy. In order to address the concerns of the smaller member states, in particular, this could initially be done in sub-areas such as sanctions decisions or human rights issues. Nevertheless, Scholz “still owes the answer as to how he intends to persuade rejecting states such as Poland or the Czech Republic to agree,” says Nicolai von Ondarza, research group leader at the German Institute for International and Security Affairs.
Scholz also stresses that the European Parliament and the EU Commission should not simply grow along with the EU if it has up to 36 member states. Although each country should continue to send a commissioner to Brussels, they should share political responsibility for individual directorates-general, Scholz said.
The topics that Scholz neglected to mention drew especially prominent criticism: “On the issue of strengthening the European Parliament, Scholz falls short of the traffic light coalition agreement,” says Sophie Pornschlegel of the European Policy Centre (EPC). Linn Selle, president of the European Movement Germany, criticizes that in the speech there is “not a word about the coalition’s promise of a European Convention, no decisive innovation to solve the crisis of the rule of law in Europe, and no concrete proposals to strengthen the European Parliament.”

European sovereignty

The EU must become more independent economically and militarily, Scholz demands. A “Made in Europe 2030” strategy is needed, based on China’s industrial strategy “Made in China 2025”.

When it comes to the supply of raw materials, the SPD politician relies heavily on the circular economy – a large part of the lithium or cobalt needed has long been in Europe, namely in cell phones and car batteries. The Commission had already presented a first package of measures in March as part of the action plan for the circular economy, and the second is to follow at the end of November. Europe has so far lacked a political framework. Recycling processes for raw materials from lithium-ion batteries, for example, first require massive investment before they can be profitable. Processes for other raw materials are also still in their infancy here.
In the transport sector, Scholz wants to establish a cross-border space for mobility data. To this end, he said, the Mobility Data Space initiated by the German government should be linked with other offerings. The SPD transport expert in the EU Parliament, Ismail Ertug, praised the idea of an EU database for mobility data: However, it must be “mandatory and come for all modes of transport, from e-scooters to buses and trucks”.
Scholz supports the development of a European satellite Internet. With the Secure Connectivity Initiative, the Commission had already presented plans for a sovereign satellite communications network that would also function in crises.
In terms of technologies for decarbonization, Scholz said, Europe must make use of its head start in time. This includes, for example, a European hydrogen network connecting producers and consumers, and investments in new climate-neutral fuels for air travel.
Scholz also wants to launch a new effort to improve cooperation between member states on arms procurement. Germany wants to lead the way: Specifically, Scholz offered partner countries such as Poland, the Baltic States and the Czech Republic to invest jointly in expanding air defense – this “would be a security gain for all of Europe”. In this way, Scholz is going beyond the offers that have been made publicly so far, says SWP expert von Ondarza.

Settle old conflicts

Scholz wants to work to settle old disputes that have pitted EU states against each other – particularly on migration and fiscal policy.

In immigration policy, for example, he advocates that third countries cooperating in taking back illegal migrants should open up channels for legal migration in return.
Croatia, Romania and Bulgaria should become full members of the Schengen area.
In the discussion about a reform of the Stability and Growth Pact and other crisis instruments, Scholz stressed the importance of firm rules but said he was ready for talks: “Ideology has given way to pragmatism,” he said, referring to the aid in the COVID-19 pandemic, which should now be the guiding principle. The traffic light coalition is evidently ready, says Redeker, to enter the upcoming negotiations constructively. “This is definitely something new for the federal government.”
Scholz, moreover, is sending the signal that he is also prepared to talk about a new EU crisis instrument in view of the looming recession: He explicitly praised the SURE loan program, which the EU launched during the Covid crisis and financed through joint debt. Member states were able to draw down €100 billion in low-interest loans to finance German-style short-time work programs. More than 30 million people in the EU had benefited from this, Scholz said. Italy’s Prime Minister Mario Draghi had already spoken out in May in favor of a new edition of the SURE program to finance government measures to cushion high energy prices. “Scholz’s comments show that he is open to talking about a new credit-based unemployment insurance program,” Redeker said.

With Leonie Düngefeld, Markus Grabitz and Corinna Visser.

Repair label: the French example

By

Leonie Düngefeld

What to look for when buying a smartphone or a new washing machine? The reparability of these products could soon become a visible criterion. In March, the European Commission presented its draft for a new Ecodesign Regulation. A proposal for an official product label that reveals information about repairability is also likely to be published soon. Initially, the rating system is supposed to relate to smartphones and tablets, but it could later be extended to other electrical appliances.

France is a pioneer in this respect: As early as January 2021, the government introduced the Indice de réparabilité – a product label that indicates to buyers how well the product can be repaired by means of a colored marking and a score between 0 and 10. So far, it applies to five product groups: smartphones, televisions, laptops, washing machines and lawnmowers.

Manufacturers must determine this value themselves. They receive an evaluation grid from the French Ministry of Ecological Transition. The index is calculated from five criteria, all of which are included in equal measure in the overall rating: documentation, dismantlability, spare parts, spare parts price, and other product-specific criteria such as the availability of software updates. Manufacturers have had to pay a penalty per unlabeled model since January 2022.

Repair helps avoid emissions

The repair index is a measure from the French anti-waste law for a circular economy (AGEC). The government wants to use it to ensure that around 60 percent of electrical and electronic equipment is repaired in the next five years – currently, the figure is around 40 percent. The label is intended to offer consumers more transparency about the sustainability of products and at the same time create incentives for producers to manufacture more durable devices.

According to calculations by the French Agency for Ecological Transition (ADEME), repairs to electrical appliances help avoid significant amounts of emissions: between the equivalent of 13 kg of CO2 emissions for the production of a smartphone to 124 kg of CO2 emissions for a television set. Each year in France, up to 2,218 tons of CO2 emissions can be saved by repairing smartphones and up to 5,704 tons of CO2 emissions per year for televisions, ADEME estimates.

Ronan Groussier is Head of Public Affairs at the French NGO “Halte à l’Obsolescence Programmée” (HOP), one of the interest groups involved in the development process of the label. Overall, he is pleased with the result: “Most of the major obstacles to repair, such as the availability and price of spare parts, have been addressed in the index. That’s good,” he says. Consumers also think the model is a good idea, according to various opinion polls.

French model is a global role model

However, he says the label needs to be more transparent and ambitious. “We observe that most scores are between 6 and 9 out of 10, with very few lower than 5,” Groussier explains. “Many products also have similar scores, despite major differences.” If HOP has its way, the grade calculation must become stricter; initially, all grades should be below 6 to incentivize improvement. Another problem, he said, is that there is a compensation effect between the five criteria: The grades for each criterion can offset each other.

The association “Round Table Repair” also calls for more transparency and control: The French Ministry of the Environment relies on false data and calculation errors being identified and reported by civil society actors, because the supervisory authorities hardly control the values. The data used for the calculation should therefore be publicly accessible. So far, only an overview of assessed products can be seen on www.indicereparabilite.fr.

Meanwhile, the French model is considered a model in other countries. In Belgium, a repairability label based on the French one will be developed as part of the Federal Action Plan Circular Economy. The HOP organization regularly receives inquiries from abroad, such as Sweden and Australia. Recently, the Taiwanese government also wanted to talk to Ronan Groussier about the experience in France.

Member states waiting for the EU Commission

The Spanish Ministry of Consumer Protection has also announced an “Índice de reparabilidad” in 2021. “The reparability plan is currently being advanced internally, to make Spain a pioneer in this area,” a spokesperson for the ministry told Europe.Table. “We are first waiting for the opinion of the European Commission to be able to present a text that does not violate EU rules.” Once the proposal is available, Spain plans to implement its project.

The German government sounds a similar note: “We are committed to the speedy introduction of reparability scores for products at the European level,” a spokesperson for the German Environment Ministry told Europe.Table. “We consider a regulation for the entire EU internal market to be more purposeful than for the national level alone. Nevertheless, we are also looking at whether we can take action at the national level – similar to the French – should there be further major delays at the EU level.”

Ramona Pop, head of the Federation of German Consumer Organisations (vzbv), told the German Press Agency that a model like the one in France is “not only conceivable for Germany but also desirable. More and more people are saying: I don’t have to buy a new one just because something broke. But we also see that high repair costs then deter many after all”. She therefore also proposes a repair bonus, which the Thuringia Consumer Center already introduced at the state level last year.

French government open to revision

A recent study by the Wuppertal Institute published by the Federal Environment Agency recommends a “publicly visible repairability label for appliances (…), analogous to the energy efficiency label”. This should be based on a series of indicators, which the study compiles in a matrix. These include, for example, the depth of disassembly, the type of fastening, tools required for the repair and the manufacturer’s spare parts policy.

In France, HOP and other stakeholders have publicly called for the weak points of the repair label to be revised. The government has shown itself to be open, and talks between politicians, industry and civil society are to begin by the beginning of October at the latest. According to the law, the French repair label is to be transformed into a durability label in 2024, which will provide consumers with even more information about the product’s lifespan. However, details are not yet known. with dpa

Electricity price intervention within weeks

The EU is preparing an emergency instrument to counter the effects of high electricity prices. It should take effect within a few weeks, said Commission President Ursula von der Leyen at a discussion in Berlin yesterday evening. A deeper, structural reform of the electricity market is being prepared for the beginning of next year. The Commission intends to present a legislative proposal for a new electricity market design in 2023 as Europe.Table reported on Friday.

The previously planned special meeting of EU energy ministers is to take place on September 9. This was announced yesterday in Prague by the Czech Minister of Industry and Trade, Jozef Síkela. One of the topics to be discussed is possible emergency aid. The proposal to decouple the electricity price from the gas price will also be discussed.

“The price of gas must no longer dominate the price of electricity,” von der Leyen confirmed in Berlin, hinting at an instrument that would have the same result as an excess profits tax. Those who generate energy at low cost would have to give up a portion when profits are very high, so that low-income households and distressed companies could be supported. Current prices are the result of speculation, von der Leyen criticized.

Commission expects gas supply freeze

German Economic Affairs Minister Robert Habeck (Greens) spoke out in favor of maintaining the merit order so that the cheapest power plants are used to meet electricity demand in each case. “But that doesn’t mean that the merit order prices automatically apply equally to everyone,” Habeck said, also commenting on the prospects for gas-fired power generation: “The quick call of ‘we’re kicking out all the gas-fired power plants’ is probably wrong.”

On the development of Russian gas supplies, von der Leyen also said that the Commission was expecting the worst case: “Putin will very likely reduce gas to zero.”

On the question of how to explain to people that, in addition to energy prices, CO2 prices are also rising, making the burden on consumers even greater, Habeck could not help but emphasize the lack of alternatives to an ambitious climate policy. And von der Leyen also emphasized once again that the Green Deal was the way out of the crisis instead of ensuring that the crisis worsened. ber/luk/dpa

Foreign ministers meeting: suspension of visa agreement with Russia likely

The foreign and defense ministers of the EU states will meet this Tuesday in Prague for consultations on Russia’s ongoing war against Ukraine. Among the topics to be discussed at the talks of the defense ministers in the morning is the proposal of EU High Representative for Foreign Affairs Josep Borrell for a European training mission for the Ukrainian armed forces.

Several EU countries have been training Ukrainian troops for some time. The main goal is to enable them to operate the weapons that Western countries supply to Ukraine. It is not yet clear where an EU training program might be located or what its mandate might be, EU diplomats told Reuters ahead of the defense ministers’ meeting.

Foreign ministers will address, among other issues, whether Russian citizens should be prevented from traveling to the EU as tourists. According to EU officials, they could agree to tighten visa issuance for Russians and discuss a broader ban on tourist visas. Most recently, it was considered likely that, as a first step, the still existing agreement with Russia on facilitating the issuance of visas would be completely suspended.

€80 instead of €35 for a visa

An EU diplomat said on Monday that foreign ministers could agree in principle to suspend the agreement, which would mean Russians would have to pay €80 instead of €35 for EU visas and also face a longer procedure. So far, the agreement has been officially suspended only for businessmen, government officials and diplomats following Russia’s attack on Ukraine.

Czech Prime Minister Petr Fiala has spoken out in favor of a complete suspension of EU countries’ issuance of visas to Russian citizens. “We are convinced that it is necessary to send a clear signal to Russian society,” he said after a meeting with German Chancellor Olaf Scholz in Prague on Monday.

German Chancellor Olaf Scholz and EU High Representative for Foreign Affairs Josep Borrell oppose such a move, saying it could violate EU rules and cut off escape routes for Russian dissidents. Countries such as the Czech Republic have largely stopped issuing new visas to Russian citizens on their own authority for some time. There are very few exceptions there, such as for politically persecuted persons or close family members of EU citizens. In mid-August, Estonia became the first country in the EU to close its border to more than 50,000 Russians with previously issued visas. rtr/dpa

Ceta: Berlin and Brussels agree on clarification

The German Federal Ministry for Economic Affairs and the EU Commission agreed on clarifications to the text of the free trade agreement between the EU and Canada (Ceta) on investment protection. The clarifications, which now still need to be agreed with the other EU countries, are intended to clear the way for Germany to ratify the agreement, which has been provisionally applied since September 2017.

So far, 16 EU member states have ratified Ceta. All EU countries must do so for the agreement to finally enter into force. The traffic light government had spoken out in favor of ratification but made clarifications to the text passages on investment protection a condition.

‘Very technical talks’

The specific goal was to ensure legal certainty and rule out any abuse. The Commission and the Ministry for Economic Affairs announced that during the “very technical talks”, they had agreed on even more precise definitions of the terms “indirect expropriation” and the so-called “fair and equitable treatment” of investors. The main goal here is to ensure that necessary measures in the context of climate, energy or health policy cannot be undermined by investors or lead to claims for damages.

The Commission, which is responsible for the EU’s trade policy, now wants to obtain the agreement of the 26 other member states. Once this has been done, the clarifications are to be discussed with the Canadian side and incorporated into the text of the agreement.

Franziska Brantner (Greens), Parliamentary State Secretary at the German Federal Ministry for Economic Affairs, expressed her support for Ceta: “However, it is important to clarify that the existing agreement will enable the common goal of climate protection and prevent abusive applications in the area of investment protection.” mgr

EMA wants to approve two vaccines against Omicron

Two vaccines specifically designed for the COVID-19 variant Omicron are on the verge of approval in the EU, according to information available to Europe.Table. The European Medicines Agency (EMA) is expected to grant clearance for the vaccines from Biontech/Pfizer and Moderna on Thursday. The EU has concluded supply agreements with both manufacturers. Therefore, the adapted vaccine should be available to EU citizens as early as the next few weeks. The EU has concluded contracts with the manufacturer Biontech/Pfizer for the supply of particularly large quantities.

The vaccines are adapted to the Omicron variant ba.1, which circulated at the beginning of 2022. Meanwhile, the ba.4 and ba.5 variants are already on the way. The new vaccines are expected to provide much better protection against severe courses than the previous vaccines. However, even the new vaccines are unlikely to provide comprehensive protection against infection. Experts say that the protection is higher in the first few weeks after vaccination, but then slowly decreases.

Until now, the EMA and the Standing Commission on Vaccination (Stiko) recommendation for a booster vaccination was directed at older people over 60 and at-risk patients. It was based on experience with vaccines that were not adapted to Omicron. With the approval of specially adapted vaccines, the recommendation is likely to be revisited. It is anticipated that the vaccine will soon be recommended to younger and non-risk patients as a fourth and fifth vaccination. mgr

Federal Cartel Office: Google’s supremacy in online advertising

According to an investigation by the German Federal Cartel Office, Google also has a strong market position in online advertising outside its core business with its search engine. This must be investigated under antitrust law, according to a “discussion report” by the authority, which was published in Bonn on Monday. The Federal Cartel Office had already launched an investigation against Google and its parent company Alphabet, on the core business in May 2021.

Behind advertising outside search engines is a “highly complex system of automated trading in online advertising space, which is quite opaque for many,” said Andreas Mundt, president of the German Federal Cartel Office. “Google also has a strong market position in this technical sub-sector of online advertising at almost all stages of the value chain. Numerous competition issues arise, not least for this reason.”

Significant influence on the overall system

Online advertising technology enables highly complex and highly automated trading in advertising space, automated playout of ads, and measurement of advertising statistics. The investigation showed that in this so-called programmatic advertising, individual market participants – and Google in particular – have considerable influence on the overall system.

In this context, head of the authority Mundt referred to instruments of extended abuse control introduced by the German legislature at the beginning of 2021. The new rules of Section 19a of the ARC allow the Federal Cartel Office to intervene earlier and more effectively against the behavior of large digital groups. He added that the Federal Cartel Office would allow market participants and interested parties to comment on the discussion report recently published until October 28, 2022.

A Google spokesman said advertising tools from Google and many other competitors help website and app providers finance their content. He said the Federal Cartel Office’s investigation covered only a fraction of the broad and highly competitive ad tech market. dpa

EU will not appeal court ruling against Qualcomm fine

EU antitrust regulators will not appeal a court ruling scrapping its €997 million fine against US chipmaker Qualcomm because it would be difficult to convince Europe’s top court of the merits, people familiar with the matter said.

The Luxembourg-based General Court, Europe’s second-highest, in its June judgment was scathing of the European Commission’s handling of the case, saying procedural irregularities had affected Qualcomm’s rights of defence. Judges also invalidated the Commission’s analysis that payments made by Qualcomm to Apple were anti-competitive because the regulator had not taken into account all the relevant facts.

The EU competition enforcer in its 2018 decision said Qualcomm paid billions of dollars to Apple from 2011 to 2016 to use only its chips in all its iPhones and iPads in order to block out rivals such as Intel Corp. The judgment was a major setback for EU antitrust chief Margrethe Vestager. The European Commission, which can appeal to the EU Court of Justice (CJEU) on points of law, declined to comment.

Vestager faces her next test on Sept. 14 when the General Court will rule on Google‘s challenge against a record €4.34 billion antitrust fine imposed for using its Android mobile operating system to squeeze out rivals. rtr/dpa

Heiko Gossen – championing digitalization

Heiko Gossen is co-founder and managing director of Migosens.

It has become clear that digitization in Germany still has a long way to go since the pandemic at the latest. One person who wants to support progress is Heiko Gossen, CEO of Migosens, a consulting firm for data protection, information security and worksmart. Migosens’ customers come from the telecommunications, energy, finance or production sectors.

Originally from the Eifel region, Gossen studied energy technology at the Cologne University of Applied Sciences but did not graduate. Instead, he worked for several years in the film industry as a sound assistant. When asked how he got from that to data protection, Gossen says, “I sometimes jokingly say that my resume is like the typical resume of a data protectionist: There’s a lot in it – only the topic of data protection was never on the screen.” In 2004, as luck would have it, a colleague of Gossen’s dropped out for a data protection seminar and Gossen went instead. From then on, the topic never let him go. In 2005, he founded Migosens, together with Paiman Minavi.

Reducing fear of digitization

On the board of the data protection working group of the digital association Bitkom, Gossen has developed several practice guides on data protection. “The working group and its work are so important because the member companies from the digital economy bundle a very large amount of data protection expertise, which at the same time knows the real world with its business models,” says Gossen.

In his opinion, Germany’s reluctance to embrace digitization can be attributed to many factors: “We quite often hear that data protection is a major stumbling block. But I believe that the number of cases where data protection really stands in the way of progress is negligible,” says Gossen. After all, the same data protection regulations apply in other European countries.

At the same time, he said, it is important that companies are not held back by inadequate infrastructure, such as broadband that is available throughout the country. “We also need to continue working to ensure that digitization is not perceived as a specter but as an opportunity. Both by companies and within society,” says the 47-year-old.

Digital authorities as an important factor

That’s why it’s crucial to overcome reservations, for example with regard to the loss of jobs. The shortage of skilled workers, for example, can only be solved through progress, and digitization is an important component of this. “Work is changing, but it is not disappearing,” Gossen is convinced.

The Migosens CEO finds it difficult to predict what successful digitization in business and society might look like. There are too many individual facets. However, he believes that autonomous driving, the automation of processes in companies and the digitization of German authorities are important factors.

Even if autonomous driving is still a long way off, Heiko Gossen is still involved in driving in his spare time. Driving a camper van, to be precise. However, he is not one of those who only acquired the camper during the pandemic; it was there before. Gossen appreciates the freedom and flexibility. “So we don’t depend on the weather being good at our location, we pick the place according to the weather.” For him, working digitally is already possible regardless of location, even from a camper van if need be. Sarah Tekath

EUROPE.TABLE EDITORS

Till
Hoppe

Charlotte
Wirth

Falk
Steiner

Timo
Landenberger

Corinna
Visser

Lukas
Knigge

Eric
Bonse

Sarah
Schaefer

Manuel
Berkel

Lisa-Martina
Klein

Markus
Grabitz

Stephan
Israel

Claire
Stam

Dear reader,

Nils Redeker of the Jacques Delors Centre shares his views on the keynote speech on European policy that Chancellor Scholz gave in Prague yesterday: “The speech is predominantly insightful because it reveals what the German government is prepared to talk about.” The Chancellor’s well-known positions were discussed, such as his support for the admission of the Western Balkan countries, Ukraine, Moldova and, in the long term, Georgia. But Scholz also provided new impetus, for example, by suggesting that Germany would be open to a new aid program along the lines of SURE to mitigate the consequences of the energy crisis. The topics that Scholz neglected to mention drew especially prominent criticism. You can read more about it in our detailed analysis of the speech.

It remains more attractive to simply invest in brand new electric appliances instead of repairing old, defective ones – however, this is supposed to change. The reparability of products could become a visible criterion when buying a smartphone or a washing machine. Several member states, such as Spain, Belgium and Germany, have concrete plans for a repair label. The EU Commission has yet to submit such a proposal. France is already a step ahead: Last year, the country introduced the Indice de réparabilité. The initial results are positive, but NGOs have also identified weaknesses, as Leonie Düngefeld reports.

The EU is working on an emergency instrument to counter the effects of high electricity prices. It is expected to take effect soon. “It is a matter of weeks,” said EU Commission President Ursula von der Leyen at an event with Economic Affairs Minister Robert Habeck at the German Federal Ministry for Economic Affairs yesterday. She also announced a structural reform of the electricity market, which Europe.Table already reported on last week. Here, too, things are supposed to move quickly: The reform is already planned for the beginning of 2023. Read more in the News.

Your
Sarah Schaefer

Scholz presents his offer to Europe

By

Till Hoppe

It will soon be five years since Emmanuel Macron presented his proposals for the European Union at the Sorbonne University in Paris. Under Angela Merkel, the German government failed to respond. The Russian attack on Ukraine, however, has forced the community into a reform discussion that its successor, Olaf Scholz, neither could nor wanted to avoid. In a keynote speech yesterday at Prague’s Charles University, the chancellor outlined his government’s ideas for the future of Europe.

The Czech Republic holds the EU presidency in the second half of the year, but Scholz also wanted to send a message to the Central and Eastern European countries at this point: During the Cold War, their citizens had the feeling of having been forgotten by the West behind the Iron Curtain. This still has an impact today, also in the debates about the future of the EU.

At the scene of the Prague Spring in 1968 and the Velvet Revolution in 1989, the chancellor also wanted to clarify “where the dividing line will be in the future between this free Europe and a neo-imperial autocracy“. Putin’s Russia will define itself in opposition to the European Union for the foreseeable future, he said. China, too, is taking advantage of the open flanks offered by the Europeans. For the EU, he said, it is therefore no longer a matter of just securing peace at home but also of ensuring security abroad. To do this, it must “close ranks, overcome old conflicts and find new solutions”.

He had already touched on many of his concrete proposals in recent months, but Scholz also provided new impetus: He offered to neighboring countries to jointly build a European air defense system. Additionally, Scholz hinted that Germany would be open to a new aid program along the lines of SURE to cushion the impact of the energy crisis. “The speech is particularly revealing because it shows what the German government is willing to talk about,” says Nils Redeker, deputy director of the Jacques Delors Centre. The concrete content would now have to follow.

The chancellor identifies these fields of action :

EU enlargement and reform

Scholz again spoke out in favor of admitting new member states – the Western Balkan countries, Ukraine, Moldova and, in perspective, Georgia. “Europe’s center is moving eastward,” he said, echoing historian Karl Schlögel. If the EU is serious about the prospect of accession, however, it will have to reform itself. Treaty changes are also conceivable “if we come to that conclusion together”. Recently, however, about half of the member states rejected this.

Scholz also supported Macron’s proposal for a European Political Community to bind the non-EU countries more closely to the bloc. Specifically, he advocated sitting down once or twice a year with the heads of state and government of these countries to discuss key issues such as security and energy. However, the EPG should explicitly not be an alternative to accession.
The necessary EU reforms include moving from the principle of unanimity to majority decisions in certain policy areas. In addition to foreign policy, Scholz explicitly mentioned tax policy. In order to address the concerns of the smaller member states, in particular, this could initially be done in sub-areas such as sanctions decisions or human rights issues. Nevertheless, Scholz “still owes the answer as to how he intends to persuade rejecting states such as Poland or the Czech Republic to agree,” says Nicolai von Ondarza, research group leader at the German Institute for International and Security Affairs.
Scholz also stresses that the European Parliament and the EU Commission should not simply grow along with the EU if it has up to 36 member states. Although each country should continue to send a commissioner to Brussels, they should share political responsibility for individual directorates-general, Scholz said.
The topics that Scholz neglected to mention drew especially prominent criticism: “On the issue of strengthening the European Parliament, Scholz falls short of the traffic light coalition agreement,” says Sophie Pornschlegel of the European Policy Centre (EPC). Linn Selle, president of the European Movement Germany, criticizes that in the speech there is “not a word about the coalition’s promise of a European Convention, no decisive innovation to solve the crisis of the rule of law in Europe, and no concrete proposals to strengthen the European Parliament.”

European sovereignty

The EU must become more independent economically and militarily, Scholz demands. A “Made in Europe 2030” strategy is needed, based on China’s industrial strategy “Made in China 2025”.

When it comes to the supply of raw materials, the SPD politician relies heavily on the circular economy – a large part of the lithium or cobalt needed has long been in Europe, namely in cell phones and car batteries. The Commission had already presented a first package of measures in March as part of the action plan for the circular economy, and the second is to follow at the end of November. Europe has so far lacked a political framework. Recycling processes for raw materials from lithium-ion batteries, for example, first require massive investment before they can be profitable. Processes for other raw materials are also still in their infancy here.
In the transport sector, Scholz wants to establish a cross-border space for mobility data. To this end, he said, the Mobility Data Space initiated by the German government should be linked with other offerings. The SPD transport expert in the EU Parliament, Ismail Ertug, praised the idea of an EU database for mobility data: However, it must be “mandatory and come for all modes of transport, from e-scooters to buses and trucks”.
Scholz supports the development of a European satellite Internet. With the Secure Connectivity Initiative, the Commission had already presented plans for a sovereign satellite communications network that would also function in crises.
In terms of technologies for decarbonization, Scholz said, Europe must make use of its head start in time. This includes, for example, a European hydrogen network connecting producers and consumers, and investments in new climate-neutral fuels for air travel.
Scholz also wants to launch a new effort to improve cooperation between member states on arms procurement. Germany wants to lead the way: Specifically, Scholz offered partner countries such as Poland, the Baltic States and the Czech Republic to invest jointly in expanding air defense – this “would be a security gain for all of Europe”. In this way, Scholz is going beyond the offers that have been made publicly so far, says SWP expert von Ondarza.

Settle old conflicts

Scholz wants to work to settle old disputes that have pitted EU states against each other – particularly on migration and fiscal policy.

In immigration policy, for example, he advocates that third countries cooperating in taking back illegal migrants should open up channels for legal migration in return.
Croatia, Romania and Bulgaria should become full members of the Schengen area.
In the discussion about a reform of the Stability and Growth Pact and other crisis instruments, Scholz stressed the importance of firm rules but said he was ready for talks: “Ideology has given way to pragmatism,” he said, referring to the aid in the COVID-19 pandemic, which should now be the guiding principle. The traffic light coalition is evidently ready, says Redeker, to enter the upcoming negotiations constructively. “This is definitely something new for the federal government.”
Scholz, moreover, is sending the signal that he is also prepared to talk about a new EU crisis instrument in view of the looming recession: He explicitly praised the SURE loan program, which the EU launched during the Covid crisis and financed through joint debt. Member states were able to draw down €100 billion in low-interest loans to finance German-style short-time work programs. More than 30 million people in the EU had benefited from this, Scholz said. Italy’s Prime Minister Mario Draghi had already spoken out in May in favor of a new edition of the SURE program to finance government measures to cushion high energy prices. “Scholz’s comments show that he is open to talking about a new credit-based unemployment insurance program,” Redeker said.

With Leonie Düngefeld, Markus Grabitz and Corinna Visser.

Repair label: the French example

By

Leonie Düngefeld

What to look for when buying a smartphone or a new washing machine? The reparability of these products could soon become a visible criterion. In March, the European Commission presented its draft for a new Ecodesign Regulation. A proposal for an official product label that reveals information about repairability is also likely to be published soon. Initially, the rating system is supposed to relate to smartphones and tablets, but it could later be extended to other electrical appliances.

France is a pioneer in this respect: As early as January 2021, the government introduced the Indice de réparabilité – a product label that indicates to buyers how well the product can be repaired by means of a colored marking and a score between 0 and 10. So far, it applies to five product groups: smartphones, televisions, laptops, washing machines and lawnmowers.

Manufacturers must determine this value themselves. They receive an evaluation grid from the French Ministry of Ecological Transition. The index is calculated from five criteria, all of which are included in equal measure in the overall rating: documentation, dismantlability, spare parts, spare parts price, and other product-specific criteria such as the availability of software updates. Manufacturers have had to pay a penalty per unlabeled model since January 2022.

Repair helps avoid emissions

The repair index is a measure from the French anti-waste law for a circular economy (AGEC). The government wants to use it to ensure that around 60 percent of electrical and electronic equipment is repaired in the next five years – currently, the figure is around 40 percent. The label is intended to offer consumers more transparency about the sustainability of products and at the same time create incentives for producers to manufacture more durable devices.

According to calculations by the French Agency for Ecological Transition (ADEME), repairs to electrical appliances help avoid significant amounts of emissions: between the equivalent of 13 kg of CO2 emissions for the production of a smartphone to 124 kg of CO2 emissions for a television set. Each year in France, up to 2,218 tons of CO2 emissions can be saved by repairing smartphones and up to 5,704 tons of CO2 emissions per year for televisions, ADEME estimates.

Ronan Groussier is Head of Public Affairs at the French NGO “Halte à l’Obsolescence Programmée” (HOP), one of the interest groups involved in the development process of the label. Overall, he is pleased with the result: “Most of the major obstacles to repair, such as the availability and price of spare parts, have been addressed in the index. That’s good,” he says. Consumers also think the model is a good idea, according to various opinion polls.

French model is a global role model

However, he says the label needs to be more transparent and ambitious. “We observe that most scores are between 6 and 9 out of 10, with very few lower than 5,” Groussier explains. “Many products also have similar scores, despite major differences.” If HOP has its way, the grade calculation must become stricter; initially, all grades should be below 6 to incentivize improvement. Another problem, he said, is that there is a compensation effect between the five criteria: The grades for each criterion can offset each other.

The association “Round Table Repair” also calls for more transparency and control: The French Ministry of the Environment relies on false data and calculation errors being identified and reported by civil society actors, because the supervisory authorities hardly control the values. The data used for the calculation should therefore be publicly accessible. So far, only an overview of assessed products can be seen on www.indicereparabilite.fr.

Meanwhile, the French model is considered a model in other countries. In Belgium, a repairability label based on the French one will be developed as part of the Federal Action Plan Circular Economy. The HOP organization regularly receives inquiries from abroad, such as Sweden and Australia. Recently, the Taiwanese government also wanted to talk to Ronan Groussier about the experience in France.

Member states waiting for the EU Commission

The Spanish Ministry of Consumer Protection has also announced an “Índice de reparabilidad” in 2021. “The reparability plan is currently being advanced internally, to make Spain a pioneer in this area,” a spokesperson for the ministry told Europe.Table. “We are first waiting for the opinion of the European Commission to be able to present a text that does not violate EU rules.” Once the proposal is available, Spain plans to implement its project.

The German government sounds a similar note: “We are committed to the speedy introduction of reparability scores for products at the European level,” a spokesperson for the German Environment Ministry told Europe.Table. “We consider a regulation for the entire EU internal market to be more purposeful than for the national level alone. Nevertheless, we are also looking at whether we can take action at the national level – similar to the French – should there be further major delays at the EU level.”

Ramona Pop, head of the Federation of German Consumer Organisations (vzbv), told the German Press Agency that a model like the one in France is “not only conceivable for Germany but also desirable. More and more people are saying: I don’t have to buy a new one just because something broke. But we also see that high repair costs then deter many after all”. She therefore also proposes a repair bonus, which the Thuringia Consumer Center already introduced at the state level last year.

French government open to revision

A recent study by the Wuppertal Institute published by the Federal Environment Agency recommends a “publicly visible repairability label for appliances (…), analogous to the energy efficiency label”. This should be based on a series of indicators, which the study compiles in a matrix. These include, for example, the depth of disassembly, the type of fastening, tools required for the repair and the manufacturer’s spare parts policy.

In France, HOP and other stakeholders have publicly called for the weak points of the repair label to be revised. The government has shown itself to be open, and talks between politicians, industry and civil society are to begin by the beginning of October at the latest. According to the law, the French repair label is to be transformed into a durability label in 2024, which will provide consumers with even more information about the product’s lifespan. However, details are not yet known. with dpa

Electricity price intervention within weeks

The EU is preparing an emergency instrument to counter the effects of high electricity prices. It should take effect within a few weeks, said Commission President Ursula von der Leyen at a discussion in Berlin yesterday evening. A deeper, structural reform of the electricity market is being prepared for the beginning of next year. The Commission intends to present a legislative proposal for a new electricity market design in 2023 as Europe.Table reported on Friday.

The previously planned special meeting of EU energy ministers is to take place on September 9. This was announced yesterday in Prague by the Czech Minister of Industry and Trade, Jozef Síkela. One of the topics to be discussed is possible emergency aid. The proposal to decouple the electricity price from the gas price will also be discussed.

“The price of gas must no longer dominate the price of electricity,” von der Leyen confirmed in Berlin, hinting at an instrument that would have the same result as an excess profits tax. Those who generate energy at low cost would have to give up a portion when profits are very high, so that low-income households and distressed companies could be supported. Current prices are the result of speculation, von der Leyen criticized.

Commission expects gas supply freeze

German Economic Affairs Minister Robert Habeck (Greens) spoke out in favor of maintaining the merit order so that the cheapest power plants are used to meet electricity demand in each case. “But that doesn’t mean that the merit order prices automatically apply equally to everyone,” Habeck said, also commenting on the prospects for gas-fired power generation: “The quick call of ‘we’re kicking out all the gas-fired power plants’ is probably wrong.”

On the development of Russian gas supplies, von der Leyen also said that the Commission was expecting the worst case: “Putin will very likely reduce gas to zero.”

On the question of how to explain to people that, in addition to energy prices, CO2 prices are also rising, making the burden on consumers even greater, Habeck could not help but emphasize the lack of alternatives to an ambitious climate policy. And von der Leyen also emphasized once again that the Green Deal was the way out of the crisis instead of ensuring that the crisis worsened. ber/luk/dpa

Foreign ministers meeting: suspension of visa agreement with Russia likely

The foreign and defense ministers of the EU states will meet this Tuesday in Prague for consultations on Russia’s ongoing war against Ukraine. Among the topics to be discussed at the talks of the defense ministers in the morning is the proposal of EU High Representative for Foreign Affairs Josep Borrell for a European training mission for the Ukrainian armed forces.

Several EU countries have been training Ukrainian troops for some time. The main goal is to enable them to operate the weapons that Western countries supply to Ukraine. It is not yet clear where an EU training program might be located or what its mandate might be, EU diplomats told Reuters ahead of the defense ministers’ meeting.

Foreign ministers will address, among other issues, whether Russian citizens should be prevented from traveling to the EU as tourists. According to EU officials, they could agree to tighten visa issuance for Russians and discuss a broader ban on tourist visas. Most recently, it was considered likely that, as a first step, the still existing agreement with Russia on facilitating the issuance of visas would be completely suspended.

€80 instead of €35 for a visa

An EU diplomat said on Monday that foreign ministers could agree in principle to suspend the agreement, which would mean Russians would have to pay €80 instead of €35 for EU visas and also face a longer procedure. So far, the agreement has been officially suspended only for businessmen, government officials and diplomats following Russia’s attack on Ukraine.

Czech Prime Minister Petr Fiala has spoken out in favor of a complete suspension of EU countries’ issuance of visas to Russian citizens. “We are convinced that it is necessary to send a clear signal to Russian society,” he said after a meeting with German Chancellor Olaf Scholz in Prague on Monday.

German Chancellor Olaf Scholz and EU High Representative for Foreign Affairs Josep Borrell oppose such a move, saying it could violate EU rules and cut off escape routes for Russian dissidents. Countries such as the Czech Republic have largely stopped issuing new visas to Russian citizens on their own authority for some time. There are very few exceptions there, such as for politically persecuted persons or close family members of EU citizens. In mid-August, Estonia became the first country in the EU to close its border to more than 50,000 Russians with previously issued visas. rtr/dpa

Ceta: Berlin and Brussels agree on clarification

The German Federal Ministry for Economic Affairs and the EU Commission agreed on clarifications to the text of the free trade agreement between the EU and Canada (Ceta) on investment protection. The clarifications, which now still need to be agreed with the other EU countries, are intended to clear the way for Germany to ratify the agreement, which has been provisionally applied since September 2017.

So far, 16 EU member states have ratified Ceta. All EU countries must do so for the agreement to finally enter into force. The traffic light government had spoken out in favor of ratification but made clarifications to the text passages on investment protection a condition.

‘Very technical talks’

The specific goal was to ensure legal certainty and rule out any abuse. The Commission and the Ministry for Economic Affairs announced that during the “very technical talks”, they had agreed on even more precise definitions of the terms “indirect expropriation” and the so-called “fair and equitable treatment” of investors. The main goal here is to ensure that necessary measures in the context of climate, energy or health policy cannot be undermined by investors or lead to claims for damages.

The Commission, which is responsible for the EU’s trade policy, now wants to obtain the agreement of the 26 other member states. Once this has been done, the clarifications are to be discussed with the Canadian side and incorporated into the text of the agreement.

Franziska Brantner (Greens), Parliamentary State Secretary at the German Federal Ministry for Economic Affairs, expressed her support for Ceta: “However, it is important to clarify that the existing agreement will enable the common goal of climate protection and prevent abusive applications in the area of investment protection.” mgr

EMA wants to approve two vaccines against Omicron

Two vaccines specifically designed for the COVID-19 variant Omicron are on the verge of approval in the EU, according to information available to Europe.Table. The European Medicines Agency (EMA) is expected to grant clearance for the vaccines from Biontech/Pfizer and Moderna on Thursday. The EU has concluded supply agreements with both manufacturers. Therefore, the adapted vaccine should be available to EU citizens as early as the next few weeks. The EU has concluded contracts with the manufacturer Biontech/Pfizer for the supply of particularly large quantities.

The vaccines are adapted to the Omicron variant ba.1, which circulated at the beginning of 2022. Meanwhile, the ba.4 and ba.5 variants are already on the way. The new vaccines are expected to provide much better protection against severe courses than the previous vaccines. However, even the new vaccines are unlikely to provide comprehensive protection against infection. Experts say that the protection is higher in the first few weeks after vaccination, but then slowly decreases.

Until now, the EMA and the Standing Commission on Vaccination (Stiko) recommendation for a booster vaccination was directed at older people over 60 and at-risk patients. It was based on experience with vaccines that were not adapted to Omicron. With the approval of specially adapted vaccines, the recommendation is likely to be revisited. It is anticipated that the vaccine will soon be recommended to younger and non-risk patients as a fourth and fifth vaccination. mgr

Federal Cartel Office: Google’s supremacy in online advertising

According to an investigation by the German Federal Cartel Office, Google also has a strong market position in online advertising outside its core business with its search engine. This must be investigated under antitrust law, according to a “discussion report” by the authority, which was published in Bonn on Monday. The Federal Cartel Office had already launched an investigation against Google and its parent company Alphabet, on the core business in May 2021.

Behind advertising outside search engines is a “highly complex system of automated trading in online advertising space, which is quite opaque for many,” said Andreas Mundt, president of the German Federal Cartel Office. “Google also has a strong market position in this technical sub-sector of online advertising at almost all stages of the value chain. Numerous competition issues arise, not least for this reason.”

Significant influence on the overall system

Online advertising technology enables highly complex and highly automated trading in advertising space, automated playout of ads, and measurement of advertising statistics. The investigation showed that in this so-called programmatic advertising, individual market participants – and Google in particular – have considerable influence on the overall system.

In this context, head of the authority Mundt referred to instruments of extended abuse control introduced by the German legislature at the beginning of 2021. The new rules of Section 19a of the ARC allow the Federal Cartel Office to intervene earlier and more effectively against the behavior of large digital groups. He added that the Federal Cartel Office would allow market participants and interested parties to comment on the discussion report recently published until October 28, 2022.

A Google spokesman said advertising tools from Google and many other competitors help website and app providers finance their content. He said the Federal Cartel Office’s investigation covered only a fraction of the broad and highly competitive ad tech market. dpa

EU will not appeal court ruling against Qualcomm fine

EU antitrust regulators will not appeal a court ruling scrapping its €997 million fine against US chipmaker Qualcomm because it would be difficult to convince Europe’s top court of the merits, people familiar with the matter said.

The Luxembourg-based General Court, Europe’s second-highest, in its June judgment was scathing of the European Commission’s handling of the case, saying procedural irregularities had affected Qualcomm’s rights of defence. Judges also invalidated the Commission’s analysis that payments made by Qualcomm to Apple were anti-competitive because the regulator had not taken into account all the relevant facts.

The EU competition enforcer in its 2018 decision said Qualcomm paid billions of dollars to Apple from 2011 to 2016 to use only its chips in all its iPhones and iPads in order to block out rivals such as Intel Corp. The judgment was a major setback for EU antitrust chief Margrethe Vestager. The European Commission, which can appeal to the EU Court of Justice (CJEU) on points of law, declined to comment.

Vestager faces her next test on Sept. 14 when the General Court will rule on Google‘s challenge against a record €4.34 billion antitrust fine imposed for using its Android mobile operating system to squeeze out rivals. rtr/dpa

Heiko Gossen – championing digitalization

It has become clear that digitization in Germany still has a long way to go since the pandemic at the latest. One person who wants to support progress is Heiko Gossen, CEO of Migosens, a consulting firm for data protection, information security and worksmart. Migosens’ customers come from the telecommunications, energy, finance or production sectors.

Originally from the Eifel region, Gossen studied energy technology at the Cologne University of Applied Sciences but did not graduate. Instead, he worked for several years in the film industry as a sound assistant. When asked how he got from that to data protection, Gossen says, “I sometimes jokingly say that my resume is like the typical resume of a data protectionist: There’s a lot in it – only the topic of data protection was never on the screen.” In 2004, as luck would have it, a colleague of Gossen’s dropped out for a data protection seminar and Gossen went instead. From then on, the topic never let him go. In 2005, he founded Migosens, together with Paiman Minavi.

Reducing fear of digitization

On the board of the data protection working group of the digital association Bitkom, Gossen has developed several practice guides on data protection. “The working group and its work are so important because the member companies from the digital economy bundle a very large amount of data protection expertise, which at the same time knows the real world with its business models,” says Gossen.

In his opinion, Germany’s reluctance to embrace digitization can be attributed to many factors: “We quite often hear that data protection is a major stumbling block. But I believe that the number of cases where data protection really stands in the way of progress is negligible,” says Gossen. After all, the same data protection regulations apply in other European countries.

At the same time, he said, it is important that companies are not held back by inadequate infrastructure, such as broadband that is available throughout the country. “We also need to continue working to ensure that digitization is not perceived as a specter but as an opportunity. Both by companies and within society,” says the 47-year-old.

Digital authorities as an important factor

That’s why it’s crucial to overcome reservations, for example with regard to the loss of jobs. The shortage of skilled workers, for example, can only be solved through progress, and digitization is an important component of this. “Work is changing, but it is not disappearing,” Gossen is convinced.

The Migosens CEO finds it difficult to predict what successful digitization in business and society might look like. There are too many individual facets. However, he believes that autonomous driving, the automation of processes in companies and the digitization of German authorities are important factors.

Even if autonomous driving is still a long way off, Heiko Gossen is still involved in driving in his spare time. Driving a camper van, to be precise. However, he is not one of those who only acquired the camper during the pandemic; it was there before. Gossen appreciates the freedom and flexibility. “So we don’t depend on the weather being good at our location, we pick the place according to the weather.” For him, working digitally is already possible regardless of location, even from a camper van if need be. Sarah Tekath