With the planned Nature Restoration Law, the EU is taking a pioneering role worldwide, said rapporteur César Luena (S&D) yesterday in the Environment Committee. “I want to take advantage of this opportunity.” In his draft report, Luena aims for higher targets than the Commission. For example, he wants to raise the overall target of restoring 20 percent of ecosystems to 30 percent. That is in line with the new global nature conservation agreement reached in Montreal. Environmental groups welcomed the draft, but the opposition was not long in coming. Timo Landenberger has the details.
Read more about yesterday’s Environment Committee meeting in the news: Leonie Düngefeld summarizes the central points from Alessandra Moretti’s (S&D) draft report on the Ecodesign Regulation for sustainable products and Charlotte Wirth reports on how SPD MEP Delara Burkhardt is fighting fast fashion.
The Irish data protection regulator had long been reluctant to take action against Meta following complaints from customers and privacy activists. But in December, the European Data Protection Board overruled the Irish authority and urged it to take more decisive action. Now the Irish have decided: The Facebook group will no longer be allowed to use its users’ personal data for advertising personalization without being asked. If the decision stands, it will have a massive impact on the legal interpretation of the GDPR and thus for many companies in the EU, writes Falk Steiner in his analysis.
I wish you a good start to the weekend.
A few weeks after the UN Biodiversity Conference COP15 in Montréal, the Environment Committee of the EU Parliament set about its homework. On Thursday, the MEPs discussed the design and implementation of their own environmental protection projects and the planned Nature Restoration Law (NRL) in particular.
With the first legal framework of its kind, the EU is taking a global pioneering role. “We can lead the way globally here in many ways. I would like to take advantage of this opportunity,” said rapporteur César Luena (S&D) when presenting his draft. In it, the Spaniard has increased the level of ambition, in some cases significantly, compared to the Commission’s proposal.
Above all, the overall target of restoring 20 percent of ecosystems is to be raised to 30 percent. This is in line with the new global nature conservation agreement that the nearly 200 parties to the biodiversity conventions agreed on in Montréal at the end of 2022. The EU delegation in particular had vehemently lobbied for this during the negotiations. “We can hardly stay below this level at home, then,” Luena said.
The rapporteur’s other proposed changes include:
No one needs to be convinced of the general necessity anymore. The overriding goal of preserving biodiversity is supported across all camps. However, opinions continue to differ on how it should be structured.
“Nature continues to evolve. It is not obvious why we should continue to the state of 1950. We don’t need restoration, but a future-oriented development of biodiversity, and we must not forget human needs in the process,” said Christine Schneider, shadow rapporteur for the EPP.
In addition, she said, there is a lack of data to clarify why previous environmental targets, such as those from the Birds and Habitats Directives, have not been met. “We need to understand that before we set even higher targets and take even stricter measures and possibly make the same mistakes again,” Schneider said.
Significant impacts on food security would also have to be reckoned with during implementation. Restricting cultivation on parts of the agricultural land would be tantamount to abandoning it. The EPP will not support that, the MEP said. Rather, the Christian Democrat group is calling for a moratorium on burdens, she said.
Group colleague Anne Sander, speaking on behalf of the Agriculture Committee, criticized the incoherence of the policy fields about the green transformation of agriculture. For example, she said, the NRL targets ten percent of agricultural land for renaturation measures. The Common Agricultural Policy (CAP) only provides for four percent, said the agricultural politician from France. The Commission has launched a voluntary certification model for the carbon-lowering performance of soils, she said. At the same time, she said, the NRL provides mandatory targets. “We need a holistic approach.”
Jutta Paulus, the negotiator for the Green Party, welcomed Luena’s draft. Nevertheless, she said, it does not go far enough. In particular, the specific goals for the restoration of peatlands would have to be significantly strengthened. “It must become clearer that renaturation is only possible through rewetting. Otherwise, we will not be able to achieve our climate targets,” she said. In addition, she said, the draft is limited to agricultural land. “However, a large part of the EU’s peatlands are located in forested areas. We have to take those into account.”
As a rapporteur for the EU Forestry Strategy, Ulrike Müller (Renew) criticized the targets for forests in the proposal. “The indicators are generic and ignore the diversity of forests in Europe.” Renaturation based on historical reference forests, moreover, is counterproductive to a “large extent. Climate resilient forests of the future need different structures and species.”
Several environmental groups, including Bird Life, Client Earth, and WWF, welcome the rapporteur’s draft. The law is “a great opportunity to bring nature back to Europe,” they said in a joint statement. Luena’s proposed amendments would further strengthen the package and make it more effective. Nevertheless, further improvements are necessary, for example, in the monitoring and measurability area of progress.
In its most recent meeting at the end of December, the Environment Council also dealt with the Nature Restoration Law. Shortly after the Biodiversity Conference on Nature, the project received broad support from several countries, including Germany, France, and Italy. But there was also headwind, for example from Sweden, which has held the EU Council presidency since the beginning of the year and is supposed to bring the NRL to a successful conclusion.
Jan. 16, 2023; 3 p.m.
Euro Group
Euro Area Enlargement (Current Status of the Euro Cash Changeover in Croatia), Digital Euro (Taking Stock of Project Progress), Coordination of Fiscal Policies in the Euro Area (Energy Support for Households and Businesses) – Case Studies. Provisional agenda
Jan. 16, 2023; 5-10 p.m.
EU Parliament Plenary Session: Anniversary Single Market, Waste, EU Capital
Celebration of the 30th anniversary of the internal market, debate on waste shipments, debate on the report on the creation of a European Capital of Local Commerce. Provisional agenda
Jan. 16, 2023; 7-9:30 p.m.
Meeting of the Committee on the Environment, Public Health and Food Safety (ENVI)
Exchange of views with the European Centre for Disease Prevention and Control (ECDC) on the current COVID-19 situation (particularly in China), draft opinion on ensuring food security and long-term agricultural resilience in the EU, proposal for a regulation on mandatory annual greenhouse gas emission reductions by member states from 2021 to 2030 to contribute to climate change commitments under the Paris Agreement. Provisional agenda
Jan. 17, 2023
Weekly commission meeting
The commissioners meet for deliberations. Info
Jan. 17, 2023
ECJ: Oral negotiations on sanctioning companies for data protection infringements
The Berlin Court of Appeal decides whether the real estate company Deutsche Wohnen must pay a fine. The fine was imposed because the company had kept tenants’ personal data longer than necessary. The Kammergericht is asking the Court of Justice to interpret the General Data Protection Regulation in this regard. It wants to know whether a fine can only be imposed on a company if a culpable breach by a senior employee is attributable to it or whether it is independently liable for data protection breaches, possibly irrespective of fault. Request
Jan. 17, 2023; 9 am.-10 p.m.
EU Parliament plenary session: Swedish presidency, shell companies, court war crimes Ukraine
Presentation of the program of activities of the Swedish Presidency, vote to establish rules to prevent the misuse of shell companies for tax purposes, debates on the establishment of a court for the crime of aggression against Ukraine. Provisional agenda
Jan. 17, 2023; 10 a.m.
Council of the EU: Economy and Finance
Presentation of the program of activities of the Swedish Presidency, exchange of views on the economic and financial consequences of the Russian aggression against Ukraine, adoption of the European Semester 2023. Provisional agenda
Jan. 18, 2023; 9 am.-10 p.m.
EU Parliament plenary session: European Council, far-right networks, human rights violations
Debate on the conclusions of the European Council of 15 December 2022, debate on the terrorist threat to the democratic order posed by right-wing extremist networks, debate on cases of violations of human rights, democracy and the rule of law. Provisional agenda
Jan. 19, 2023
ECJ: Oral hearings on fines against VW in Italy and Germany (prohibition of double jeopardy)
Volkswagen and Volkswagen Group Italia are challenging before the Italian courts a notice issued by the Italian Competition and Markets Authority on August 4, 2016, imposing a fine of five million euros on them for violating the Italian Consumer Code. Request
Jan. 19, 2023; 9 am.-4 p.m.
Plenary Session of the EU Parliament: European Works Council, Questions
Debate on the revision of the directive on the establishment of a European Works Council, major questions. Provisional agenda
The decision of the Irish data protection supervisory authority DPC Ireland in the Facebook case has everything a legal interpretation thriller needs. At the beginning of January, the authority ruled that Meta may no longer use its users’ personal data for advertising personalization without being asked.
If the decision stands, it will have a massive impact on the legal interpretation of the GDPR and thus on many companies in the EU. In the end, almost nothing could work without informed consent, and the business of personalized advertising would probably be at an end. However, if it is not upheld, the GDPR could have to be reformed. Because then it would be toothless.
On one side of the case: the DPC, represented by Commissioner Helen Dixon, and Facebook parent Meta. On the other: Max Schrems, a privacy activist from Austria, and most of the regulators in Europe.
Schrems made a submission to the DPC in 2018. The company Facebook had given users a choice when the General Data Protection Regulation came into force: Accept new terms of use – or leave. Because personalized advertising, Facebook argued, was an integral part of the electronic service. This is why it was also sufficient to obtain consent with the contractual terms and conditions and not separately – and not to allow any use otherwise. Ireland’s data protection authority affirmed this in principle. Above all, it saw violations of transparency obligations under the GDPR.
In turn, the majority of data protection regulators in Europe saw things differently – to the obvious annoyance of the DPC. But it could not get over this. “The binding EDPB decisions make it clear that Meta unlawfully processed personal data for behavioral advertising,” says Austrian data protection commissioner Andrea Jelinek, who chairs the European Data Protection Board EDPB.
“Such advertising is unnecessary to fulfill any purported contract with Facebook and Instagram users. These decisions may also have important implications for other platforms that have behavioral advertising at the core of their business model.” So, that’s the maximum reach of the decision: the core of Google, Facebook, and other advertising social media giants. But that is still a long way off.
If the other supervisory authorities overrule the competent supervisory authority in the EDPB, then the latter must comply with the decision of the European body. This is what Ireland’s chief data protection officer Dixon is now doing, albeit extremely reluctantly. And so the 188-page decision in the Meta case also consists of a wild mixture of reproaches and accusations by the Irish supervisory authority. On the one hand, against the complainant Schrems, with whom it has been in dispute for years, but also against the other supervisory authorities, whom Dixon’s DPC accuses of legally incorrect decisions and exceeding their authority.
Dixon argues that it is not up to the data protection supervisory authority to check whether contracts are also permissible under consumer law. From the perspective of the supervisory authorities, a contract is a contract. And according to the GDPR, data processing can also be justified by contract. There is no precedence for any particular form of the legal basis, such as informed consent, legitimate interest, or as a necessary part of a contract, Dixon says. However, the fact that the effectiveness of a contract must be a mandatory prerequisite for consequences based on it is likely to be the prevailing legal opinion in Ireland as well.
“These decisions do not prevent personalized advertising on our platform,” Meta attempted to reassure investors via blog post immediately after receiving the DPC decision pushed through by the EDPB. “The decisions relate solely to what legal basis Meta uses to serve certain ads.”
That sounds a lot like a sedative pill: In the worst case, Meta would have to delete the illegally collected data, stop using it for advertising, and beg users for consent in the future – the outcome is uncertain. The company says it is now reviewing which legal bases should be used in the future. Even if it thinks that the legal basis chosen so far is correct. Meta announced that it would also take legal action against the decision and the penalties.
“The decision of the EU data protection supervisory authorities on Meta and advertising based on person-related advertising must be viewed extremely critically for both formal and substantive reasons,” says Thomas Duhr, Vice President at the Bundesverband Digitale Wirtschaft. Many online companies whose business model is advertising are also members of the BVDW. The entire process shows that the GDPR is indeed uniform legislation throughout the EU, says Duhr. But the uniform interpretation is missing.
And the next confusion of responsibilities surrounding data, advertising, and users is already looming: The Digital Services Act imposes further obligations on platform operators, both in the use of algorithms and in behavior-based advertising and interface design. However, it is not the data protection supervisory authorities that are responsible here, but either the Commission or national supervisory authorities. At the same time, consumer protection standards can also play a role – and there is a lack of systematics in the interplay between the various areas of legal enforcement.
“The intended ‘level playing field’ thus remains fiction,” says Thomas Duhr of BVDW, and demands: “We in Germany, in particular, should thus take the event as an opportunity to think specifically about further steps toward a more centralized set-up of data protection supervisory authorities and also about future institutions such as the National Digital Services Coordinator.”
The European Court of Justice (ECJ) must clarify whether competitors may take companies to court over possible data protection violations. The Federal Court of Justice (BGH) in Karlsruhe suspended two proceedings on Thursday to have the facts of the case examined in Luxembourg. The main issue is whether the European General Data Protection Regulation (GDPR) precludes national regulations that grant competitors such a right of action in the event of assumed data protection violations.
The question is particularly interesting because companies, in particular, pursue rights with vigor, said the presiding judge of the first civil senate, Thomas Koch. If a person is directly affected, he can sue anyway. Whether consumer protection associations without a directly affected person also have a general right of action will be clarified in separate proceedings at the BGH – here, an inquiry is also underway at the ECJ.
In the specific cases now at issue, a pharmacist is suing two competitors who sell products via the Amazon internet platform. In his opinion, health data within the meaning of the GDPR is collected, which allows conclusions to be drawn about a person’s state of health. This should not be done without explicit consent. The competition sees things differently. However, the Naumburg Higher Regional Court ruled in favor of the plaintiff.
Due to this special topic, the BGH also wants to know from the ECJ whether details collected during the ordering process, such as the delivery address and type of pharmacy-required – but not prescription – medication, constitute health data within the meaning of the GDPR. Judge Koch clarified that the person ordering the preparations does not necessarily have to be the patient or consumer. dpa
The rapporteur in the EU Parliament, Alessandra Moretti (S&D), presented yesterday in the Committee on Environment (ENVI) her draft report for the Ecodesign for Sustainable Products Regulation. She wants to sharpen the Commission’s draft, especially regarding the environmental impact of products and the destruction of unsold products. She also wants to include the sustainability of products and their social impact.
Moretti’s report calls for EU climate targets and reductions in the overall environmental impact of feedstock to be enshrined in the regulation. She said that products with particularly negative environmental impact (such as iron, steel, cement, aluminum, textile products, tires, detergents, dyes, and lubricants) should be given greater focus in the legislation. The regulation should thus contain a list of these products.
The Commission intends to publish such a list of products it considers a priority by the end of the month. Moretti calls for more transparency: the Commission should publish its work plan and present it to Parliament before it is adopted.
Moretti’s report adds a social dimension to the regulation, saying that in addition to the environmental sustainability of materials and products, social compatibility and due diligence requirements must also be taken into account. Moretti also wants to strengthen information rights for consumers and end users: “Clear, easy-to-understand information is essential to develop environmentally sustainable consumption patterns,” she said.
Moretti also wants to tighten up on the destruction of unsold products. She proposes banning the destruction of textiles and electronic equipment in general. Small and medium-sized enterprises (SMEs) should also be included. She also wants to introduce further amendments to the scope of the application and the role of national supervisory authorities.
Shadow rapporteur Jessica Polfjärd (EPP) expressed concern about the burden on businesses. She called for a longer lead time for the industry and rejected the social dimension that the report proposes. Shadow rapporteur Jan Huitema (Renew) argued for stronger support measures for SMEs. Sara Matthieu (Greens) said the draft still lacked benchmarks for measuring success. The UN Sustainable Development Goals (SDGs) should be a reference point here.
The deadline for amendments in the Environment Committee is Jan. 17. The committee will vote on the report on June 5. leo
After the EU Commission already presented its strategy for sustainable and recyclable textiles in March last year, SPD MEP Delara Burkhardt presented her own-initiative report on the subject to the Committee on Environment yesterday. With her proposal, Burkhardt wants to put an end to the fast fashion model. Among the core demands are:
Some of the requirements are also based on the Ecodesign Regulation. Here, the Commission wants to set sustainability standards for various products by means of delegated acts. Clothing and footwear should be given priority here, demands Burkhardt. In addition, fabrics with fewer microplastics should be given preference, the MEP said.
Yesterday, the Committee on Environment criticized Burkhardt’s proposals only mildly. However, it is important to find the right balance to avoid companies migrating to third countries with less stringent requirements, said EPP shadow rapporteur Pernille Weiss. Therefore, he said, one should not only rely on bans but also create positive incentives for the industry.
At the same time, a change of mentality in the textile industry would require a change in waste management: the separate collection of textiles, for example, would have to be adequately prepared and might require new recycling models, said Christian Ehler (CDU). cw
The International Energy Agency (IEA) expects rapid growth in clean energy technologies but warns of resource dependence on a few countries. If countries fully implement their energy and climate pledges the manufacturing value of clean energy technologies will more than triple to a good €600 billion by 2030, the IEA said in its energy technology report presented Thursday in Paris.
It added the number of related jobs could more than double to nearly 14 million in 2030. The IEA also expects further rapid industrial and employment growth in the following decades as the energy transition progresses.
At the same time, the IEA warns of risks in the current supply chains, as there is a dependence on a few countries for mining and processing resources and for manufacturing technologies. For solar panels, wind turbines, and batteries for EVs, at least 70 percent of production capacity was accounted for by the three largest producing countries, led by China.
At the same time, much of the mining of critical minerals is concentrated in a small number of countries, it said. For example, Congo produces more than 70 percent of the world’s cobalt, and just three countries – Australia, Chile, and China – account for more than 90 percent of global lithium production.
“If everything that has been announced to date is built, investment in clean energy technology production will be two-thirds of what is needed on the path to climate neutrality,” said IEA Director Fatih Birol. The current momentum, he said, is bringing compliance with international energy and climate goals closer. “There is certainly more to come.” dpa
Bulgaria wants to postpone the planned closure of its coal-fired power plants by about twelve years until 2038 – even though this runs counter to the country’s EU reconstruction plan. On Thursday, the Parliament in Sofia instructed the government to negotiate with the EU Commission on a withdrawal of the corresponding commitment. It stipulates that carbon dioxide emissions in the power sector should be reduced by 40 percent by the end of 2025 compared with 2019, which would be equivalent to a coal phase-out probably in 2026.
Employees of coal-fired power plants and coal mines demonstrated at Parliament in favor of postponing the closure of their operations until 2038. They complained that implementing the previous targets would jeopardize energy security and many jobs. The parliamentary decision in favor of the coal-fired power plants was eventually passed with an overwhelming majority of 187 votes in favor, with only two votes against and nine abstentions.
According to industry data, Bulgaria’s coal-fired power plants generate half of the country’s total electricity demand during the summer months. During the heating season, the figure is nearly 60 percent, he said. Most of them have already started implementing projects to diversify the fuel mix and a coal phase-out. But this cannot be fully achieved within three years, according to an open letter from the industry in November. dpa
The Chairman of Emirati state oil company ADNOC is to lead the upcoming COP28 world climate conference in Dubai as President. Sultan Ahmed al-Jabir, who is also the UAE’s industry minister, has accumulated more than two decades of experience as a managing director and in senior government positions, state agency WAM reported Thursday. “This will be a critical year in a critical decade for climate action,” al-Jabir said of his appointment.
That a top Gulf oil industry official is to head the year’s most important UN conference on climate change drew criticism. Green Party MEP Michael Bloss told the Deutsche Presse-Agentur: “The appointment lets the fox guard the henhouse. The conflict of interest is pre-programmed. Oil companies cannot credibly enforce the Paris climate goals.” The UN must draw a clear line, he said.
The Emirates are among the ten largest oil producers in the world. The COP28 world climate conference will begin on November 30 in the metropolis of Dubai. Around 70,000 participants are expected – possibly setting a new attendance record. According to the environmental organization Global Witness and the Corporate Europe Observatory, more than 600 lobbyists for oil, gas, and coal were registered at last year’s conference in Egypt. dpa
It was still there on Wednesday, but a day later, the name has been removed from the website: Parliament President Roberta Metsola is no longer a member of the steering committee of the European Parliamentary Financial Services Forum (EPFSF), according to her spokesperson. The forum is a discussion forum that brings together leading players and lobby organizations in the financial industry with MEPs and regularly invites them to policy briefs.
Europe.Table reported Wednesday, citing the website, that Metsola had not included her membership of the steering committee in her financial statement, although the parliamentary code of conduct might have required her to do so. Her spokesman now clarified that Roberta Metsola was not involved in any way in the management of the organization during this or the previous legislative term. Nor had she received any financial benefits from it. However, Metsola had not disclosed her membership in her financial declaration in the previous legislative term either.
Metsola is currently working on a 14-point plan to reform parliament. Yesterday, she discussed a first draft with the leaders of the respective parties. The plan includes stricter requirements for former MPs, a ban on friendship groups, and tighter rules on lobby meetings. It is an attempt to improve the image of parliament after the corruption scandal involving Ex-parliamentary Vice President Eva Kaili.
However, the plan has a few loopholes. For example, organizations such as the EPFSD, which provide companies and associations privileged access to parliamentarians, are not affected by the reform plans. cw
On Tuesday, Swedish Prime Minister Ulf Kristersson will present the program of the Swedish Presidency. It is one of the highlights of the coming week in Strasbourg. Others include: the meeting of the ENVI committee to discuss the recently adopted elements of the Fit for 55 package (Monday), and a debate with a resolution on Iran.
But it is, of course, the corruption scandal that will be on everyone’s minds in the EU capital in Alsace. After she was forced to vacate her post, parliamentarians must decide who will succeed Eva Kaili as Vice President on Tuesday.
As readers of Europe.Table, you already know:
Luxembourger Marc Angel is well on his way to replacing Eva Kaili in the Parliament’s presidency. The MEP was nominated on Wednesday as the official candidate of the S&D group. Socialists hope Marc Angel will be supported by the other political groups. Indeed, the main political groups agreed at the beginning of 2022 that this post would fall to the Socialists. The Greens, however, do not agree with this arrangement and are putting forward their own candidate: Frenchwoman Gwendoline Delbos-Corfield, who was also nominated by her group last Wednesday.
Parliament Speaker Metsola yesterday presented 14 proposals to make the EP more transparent. It is an attempt to polish up the image of the Parliament after the corruption scandal surrounding Eva Kaili. Some of the proposals go very far, but there are loopholes.
French Socialist MEP Raphaël Glucksmann, Chairman of the Special Committee on Foreign Interference in EU Democratic Processes, called for the creation of an investigative committee and an EU authority on transparency in public life at the European level, modeled on the French Haute Autorité pour la transparence de la vie publique (HATVP). He comes from a party, the Parti Socialiste Français, that was regularly shaken by scandals until recently. The party is struggling to turn over a new leaf.
The 14-point plan presented by President Roberta Metsola shows her firm intention to take control in this scandal that calls into question not only Parliament’s legitimacy but also her authority – and keep it. After all, their actions are closely watched by the Commission and the Council. Both institutions are anxious to ensure that this scandal does not fall on them, or does not fall on them too much. But does she really have the full support of her group in this? And that of the other parties?
The Christmas holidays could not erase the memory of the political significance of this scandal, quite the contrary. The European elections will take place next year and many fear that this scandal could be exploited by populists of all kinds. Various political headquarters are thus very interested in solving the case as quickly as possible and at the same time showing that they have learned their lesson.
The Parliament has been debating transparency and fighting corruption for 30 years, writes Olivier Costa, Director of political studies at the Collège d’Europe and Research Director at the CNRS (the French equivalent of the Max Planck Institute), in a guest editorial in the French business newspaper La Tribune. Progress has been made, he said, but it is too slow to stop particularly unscrupulous lobbyists and greedy MPs.
The current corruption scandal brings back memories of a shameful incident a few years ago: The EU Register, which has been the subject of repeated reports since the scandal was uncovered, was launched in 2011 in response to the Sunday Times “fake lobbyists” scandal. At the time, three MEPs had been lured into a trap by journalists from the British weekly newspaper and had agreed to submit amendments in exchange for bribes of up to €100,000.
Following a scandal of the magnitude currently affecting the European Parliament, it is to be hoped that anti-corruption legislation will soon change.
With the planned Nature Restoration Law, the EU is taking a pioneering role worldwide, said rapporteur César Luena (S&D) yesterday in the Environment Committee. “I want to take advantage of this opportunity.” In his draft report, Luena aims for higher targets than the Commission. For example, he wants to raise the overall target of restoring 20 percent of ecosystems to 30 percent. That is in line with the new global nature conservation agreement reached in Montreal. Environmental groups welcomed the draft, but the opposition was not long in coming. Timo Landenberger has the details.
Read more about yesterday’s Environment Committee meeting in the news: Leonie Düngefeld summarizes the central points from Alessandra Moretti’s (S&D) draft report on the Ecodesign Regulation for sustainable products and Charlotte Wirth reports on how SPD MEP Delara Burkhardt is fighting fast fashion.
The Irish data protection regulator had long been reluctant to take action against Meta following complaints from customers and privacy activists. But in December, the European Data Protection Board overruled the Irish authority and urged it to take more decisive action. Now the Irish have decided: The Facebook group will no longer be allowed to use its users’ personal data for advertising personalization without being asked. If the decision stands, it will have a massive impact on the legal interpretation of the GDPR and thus for many companies in the EU, writes Falk Steiner in his analysis.
I wish you a good start to the weekend.
A few weeks after the UN Biodiversity Conference COP15 in Montréal, the Environment Committee of the EU Parliament set about its homework. On Thursday, the MEPs discussed the design and implementation of their own environmental protection projects and the planned Nature Restoration Law (NRL) in particular.
With the first legal framework of its kind, the EU is taking a global pioneering role. “We can lead the way globally here in many ways. I would like to take advantage of this opportunity,” said rapporteur César Luena (S&D) when presenting his draft. In it, the Spaniard has increased the level of ambition, in some cases significantly, compared to the Commission’s proposal.
Above all, the overall target of restoring 20 percent of ecosystems is to be raised to 30 percent. This is in line with the new global nature conservation agreement that the nearly 200 parties to the biodiversity conventions agreed on in Montréal at the end of 2022. The EU delegation in particular had vehemently lobbied for this during the negotiations. “We can hardly stay below this level at home, then,” Luena said.
The rapporteur’s other proposed changes include:
No one needs to be convinced of the general necessity anymore. The overriding goal of preserving biodiversity is supported across all camps. However, opinions continue to differ on how it should be structured.
“Nature continues to evolve. It is not obvious why we should continue to the state of 1950. We don’t need restoration, but a future-oriented development of biodiversity, and we must not forget human needs in the process,” said Christine Schneider, shadow rapporteur for the EPP.
In addition, she said, there is a lack of data to clarify why previous environmental targets, such as those from the Birds and Habitats Directives, have not been met. “We need to understand that before we set even higher targets and take even stricter measures and possibly make the same mistakes again,” Schneider said.
Significant impacts on food security would also have to be reckoned with during implementation. Restricting cultivation on parts of the agricultural land would be tantamount to abandoning it. The EPP will not support that, the MEP said. Rather, the Christian Democrat group is calling for a moratorium on burdens, she said.
Group colleague Anne Sander, speaking on behalf of the Agriculture Committee, criticized the incoherence of the policy fields about the green transformation of agriculture. For example, she said, the NRL targets ten percent of agricultural land for renaturation measures. The Common Agricultural Policy (CAP) only provides for four percent, said the agricultural politician from France. The Commission has launched a voluntary certification model for the carbon-lowering performance of soils, she said. At the same time, she said, the NRL provides mandatory targets. “We need a holistic approach.”
Jutta Paulus, the negotiator for the Green Party, welcomed Luena’s draft. Nevertheless, she said, it does not go far enough. In particular, the specific goals for the restoration of peatlands would have to be significantly strengthened. “It must become clearer that renaturation is only possible through rewetting. Otherwise, we will not be able to achieve our climate targets,” she said. In addition, she said, the draft is limited to agricultural land. “However, a large part of the EU’s peatlands are located in forested areas. We have to take those into account.”
As a rapporteur for the EU Forestry Strategy, Ulrike Müller (Renew) criticized the targets for forests in the proposal. “The indicators are generic and ignore the diversity of forests in Europe.” Renaturation based on historical reference forests, moreover, is counterproductive to a “large extent. Climate resilient forests of the future need different structures and species.”
Several environmental groups, including Bird Life, Client Earth, and WWF, welcome the rapporteur’s draft. The law is “a great opportunity to bring nature back to Europe,” they said in a joint statement. Luena’s proposed amendments would further strengthen the package and make it more effective. Nevertheless, further improvements are necessary, for example, in the monitoring and measurability area of progress.
In its most recent meeting at the end of December, the Environment Council also dealt with the Nature Restoration Law. Shortly after the Biodiversity Conference on Nature, the project received broad support from several countries, including Germany, France, and Italy. But there was also headwind, for example from Sweden, which has held the EU Council presidency since the beginning of the year and is supposed to bring the NRL to a successful conclusion.
Jan. 16, 2023; 3 p.m.
Euro Group
Euro Area Enlargement (Current Status of the Euro Cash Changeover in Croatia), Digital Euro (Taking Stock of Project Progress), Coordination of Fiscal Policies in the Euro Area (Energy Support for Households and Businesses) – Case Studies. Provisional agenda
Jan. 16, 2023; 5-10 p.m.
EU Parliament Plenary Session: Anniversary Single Market, Waste, EU Capital
Celebration of the 30th anniversary of the internal market, debate on waste shipments, debate on the report on the creation of a European Capital of Local Commerce. Provisional agenda
Jan. 16, 2023; 7-9:30 p.m.
Meeting of the Committee on the Environment, Public Health and Food Safety (ENVI)
Exchange of views with the European Centre for Disease Prevention and Control (ECDC) on the current COVID-19 situation (particularly in China), draft opinion on ensuring food security and long-term agricultural resilience in the EU, proposal for a regulation on mandatory annual greenhouse gas emission reductions by member states from 2021 to 2030 to contribute to climate change commitments under the Paris Agreement. Provisional agenda
Jan. 17, 2023
Weekly commission meeting
The commissioners meet for deliberations. Info
Jan. 17, 2023
ECJ: Oral negotiations on sanctioning companies for data protection infringements
The Berlin Court of Appeal decides whether the real estate company Deutsche Wohnen must pay a fine. The fine was imposed because the company had kept tenants’ personal data longer than necessary. The Kammergericht is asking the Court of Justice to interpret the General Data Protection Regulation in this regard. It wants to know whether a fine can only be imposed on a company if a culpable breach by a senior employee is attributable to it or whether it is independently liable for data protection breaches, possibly irrespective of fault. Request
Jan. 17, 2023; 9 am.-10 p.m.
EU Parliament plenary session: Swedish presidency, shell companies, court war crimes Ukraine
Presentation of the program of activities of the Swedish Presidency, vote to establish rules to prevent the misuse of shell companies for tax purposes, debates on the establishment of a court for the crime of aggression against Ukraine. Provisional agenda
Jan. 17, 2023; 10 a.m.
Council of the EU: Economy and Finance
Presentation of the program of activities of the Swedish Presidency, exchange of views on the economic and financial consequences of the Russian aggression against Ukraine, adoption of the European Semester 2023. Provisional agenda
Jan. 18, 2023; 9 am.-10 p.m.
EU Parliament plenary session: European Council, far-right networks, human rights violations
Debate on the conclusions of the European Council of 15 December 2022, debate on the terrorist threat to the democratic order posed by right-wing extremist networks, debate on cases of violations of human rights, democracy and the rule of law. Provisional agenda
Jan. 19, 2023
ECJ: Oral hearings on fines against VW in Italy and Germany (prohibition of double jeopardy)
Volkswagen and Volkswagen Group Italia are challenging before the Italian courts a notice issued by the Italian Competition and Markets Authority on August 4, 2016, imposing a fine of five million euros on them for violating the Italian Consumer Code. Request
Jan. 19, 2023; 9 am.-4 p.m.
Plenary Session of the EU Parliament: European Works Council, Questions
Debate on the revision of the directive on the establishment of a European Works Council, major questions. Provisional agenda
The decision of the Irish data protection supervisory authority DPC Ireland in the Facebook case has everything a legal interpretation thriller needs. At the beginning of January, the authority ruled that Meta may no longer use its users’ personal data for advertising personalization without being asked.
If the decision stands, it will have a massive impact on the legal interpretation of the GDPR and thus on many companies in the EU. In the end, almost nothing could work without informed consent, and the business of personalized advertising would probably be at an end. However, if it is not upheld, the GDPR could have to be reformed. Because then it would be toothless.
On one side of the case: the DPC, represented by Commissioner Helen Dixon, and Facebook parent Meta. On the other: Max Schrems, a privacy activist from Austria, and most of the regulators in Europe.
Schrems made a submission to the DPC in 2018. The company Facebook had given users a choice when the General Data Protection Regulation came into force: Accept new terms of use – or leave. Because personalized advertising, Facebook argued, was an integral part of the electronic service. This is why it was also sufficient to obtain consent with the contractual terms and conditions and not separately – and not to allow any use otherwise. Ireland’s data protection authority affirmed this in principle. Above all, it saw violations of transparency obligations under the GDPR.
In turn, the majority of data protection regulators in Europe saw things differently – to the obvious annoyance of the DPC. But it could not get over this. “The binding EDPB decisions make it clear that Meta unlawfully processed personal data for behavioral advertising,” says Austrian data protection commissioner Andrea Jelinek, who chairs the European Data Protection Board EDPB.
“Such advertising is unnecessary to fulfill any purported contract with Facebook and Instagram users. These decisions may also have important implications for other platforms that have behavioral advertising at the core of their business model.” So, that’s the maximum reach of the decision: the core of Google, Facebook, and other advertising social media giants. But that is still a long way off.
If the other supervisory authorities overrule the competent supervisory authority in the EDPB, then the latter must comply with the decision of the European body. This is what Ireland’s chief data protection officer Dixon is now doing, albeit extremely reluctantly. And so the 188-page decision in the Meta case also consists of a wild mixture of reproaches and accusations by the Irish supervisory authority. On the one hand, against the complainant Schrems, with whom it has been in dispute for years, but also against the other supervisory authorities, whom Dixon’s DPC accuses of legally incorrect decisions and exceeding their authority.
Dixon argues that it is not up to the data protection supervisory authority to check whether contracts are also permissible under consumer law. From the perspective of the supervisory authorities, a contract is a contract. And according to the GDPR, data processing can also be justified by contract. There is no precedence for any particular form of the legal basis, such as informed consent, legitimate interest, or as a necessary part of a contract, Dixon says. However, the fact that the effectiveness of a contract must be a mandatory prerequisite for consequences based on it is likely to be the prevailing legal opinion in Ireland as well.
“These decisions do not prevent personalized advertising on our platform,” Meta attempted to reassure investors via blog post immediately after receiving the DPC decision pushed through by the EDPB. “The decisions relate solely to what legal basis Meta uses to serve certain ads.”
That sounds a lot like a sedative pill: In the worst case, Meta would have to delete the illegally collected data, stop using it for advertising, and beg users for consent in the future – the outcome is uncertain. The company says it is now reviewing which legal bases should be used in the future. Even if it thinks that the legal basis chosen so far is correct. Meta announced that it would also take legal action against the decision and the penalties.
“The decision of the EU data protection supervisory authorities on Meta and advertising based on person-related advertising must be viewed extremely critically for both formal and substantive reasons,” says Thomas Duhr, Vice President at the Bundesverband Digitale Wirtschaft. Many online companies whose business model is advertising are also members of the BVDW. The entire process shows that the GDPR is indeed uniform legislation throughout the EU, says Duhr. But the uniform interpretation is missing.
And the next confusion of responsibilities surrounding data, advertising, and users is already looming: The Digital Services Act imposes further obligations on platform operators, both in the use of algorithms and in behavior-based advertising and interface design. However, it is not the data protection supervisory authorities that are responsible here, but either the Commission or national supervisory authorities. At the same time, consumer protection standards can also play a role – and there is a lack of systematics in the interplay between the various areas of legal enforcement.
“The intended ‘level playing field’ thus remains fiction,” says Thomas Duhr of BVDW, and demands: “We in Germany, in particular, should thus take the event as an opportunity to think specifically about further steps toward a more centralized set-up of data protection supervisory authorities and also about future institutions such as the National Digital Services Coordinator.”
The European Court of Justice (ECJ) must clarify whether competitors may take companies to court over possible data protection violations. The Federal Court of Justice (BGH) in Karlsruhe suspended two proceedings on Thursday to have the facts of the case examined in Luxembourg. The main issue is whether the European General Data Protection Regulation (GDPR) precludes national regulations that grant competitors such a right of action in the event of assumed data protection violations.
The question is particularly interesting because companies, in particular, pursue rights with vigor, said the presiding judge of the first civil senate, Thomas Koch. If a person is directly affected, he can sue anyway. Whether consumer protection associations without a directly affected person also have a general right of action will be clarified in separate proceedings at the BGH – here, an inquiry is also underway at the ECJ.
In the specific cases now at issue, a pharmacist is suing two competitors who sell products via the Amazon internet platform. In his opinion, health data within the meaning of the GDPR is collected, which allows conclusions to be drawn about a person’s state of health. This should not be done without explicit consent. The competition sees things differently. However, the Naumburg Higher Regional Court ruled in favor of the plaintiff.
Due to this special topic, the BGH also wants to know from the ECJ whether details collected during the ordering process, such as the delivery address and type of pharmacy-required – but not prescription – medication, constitute health data within the meaning of the GDPR. Judge Koch clarified that the person ordering the preparations does not necessarily have to be the patient or consumer. dpa
The rapporteur in the EU Parliament, Alessandra Moretti (S&D), presented yesterday in the Committee on Environment (ENVI) her draft report for the Ecodesign for Sustainable Products Regulation. She wants to sharpen the Commission’s draft, especially regarding the environmental impact of products and the destruction of unsold products. She also wants to include the sustainability of products and their social impact.
Moretti’s report calls for EU climate targets and reductions in the overall environmental impact of feedstock to be enshrined in the regulation. She said that products with particularly negative environmental impact (such as iron, steel, cement, aluminum, textile products, tires, detergents, dyes, and lubricants) should be given greater focus in the legislation. The regulation should thus contain a list of these products.
The Commission intends to publish such a list of products it considers a priority by the end of the month. Moretti calls for more transparency: the Commission should publish its work plan and present it to Parliament before it is adopted.
Moretti’s report adds a social dimension to the regulation, saying that in addition to the environmental sustainability of materials and products, social compatibility and due diligence requirements must also be taken into account. Moretti also wants to strengthen information rights for consumers and end users: “Clear, easy-to-understand information is essential to develop environmentally sustainable consumption patterns,” she said.
Moretti also wants to tighten up on the destruction of unsold products. She proposes banning the destruction of textiles and electronic equipment in general. Small and medium-sized enterprises (SMEs) should also be included. She also wants to introduce further amendments to the scope of the application and the role of national supervisory authorities.
Shadow rapporteur Jessica Polfjärd (EPP) expressed concern about the burden on businesses. She called for a longer lead time for the industry and rejected the social dimension that the report proposes. Shadow rapporteur Jan Huitema (Renew) argued for stronger support measures for SMEs. Sara Matthieu (Greens) said the draft still lacked benchmarks for measuring success. The UN Sustainable Development Goals (SDGs) should be a reference point here.
The deadline for amendments in the Environment Committee is Jan. 17. The committee will vote on the report on June 5. leo
After the EU Commission already presented its strategy for sustainable and recyclable textiles in March last year, SPD MEP Delara Burkhardt presented her own-initiative report on the subject to the Committee on Environment yesterday. With her proposal, Burkhardt wants to put an end to the fast fashion model. Among the core demands are:
Some of the requirements are also based on the Ecodesign Regulation. Here, the Commission wants to set sustainability standards for various products by means of delegated acts. Clothing and footwear should be given priority here, demands Burkhardt. In addition, fabrics with fewer microplastics should be given preference, the MEP said.
Yesterday, the Committee on Environment criticized Burkhardt’s proposals only mildly. However, it is important to find the right balance to avoid companies migrating to third countries with less stringent requirements, said EPP shadow rapporteur Pernille Weiss. Therefore, he said, one should not only rely on bans but also create positive incentives for the industry.
At the same time, a change of mentality in the textile industry would require a change in waste management: the separate collection of textiles, for example, would have to be adequately prepared and might require new recycling models, said Christian Ehler (CDU). cw
The International Energy Agency (IEA) expects rapid growth in clean energy technologies but warns of resource dependence on a few countries. If countries fully implement their energy and climate pledges the manufacturing value of clean energy technologies will more than triple to a good €600 billion by 2030, the IEA said in its energy technology report presented Thursday in Paris.
It added the number of related jobs could more than double to nearly 14 million in 2030. The IEA also expects further rapid industrial and employment growth in the following decades as the energy transition progresses.
At the same time, the IEA warns of risks in the current supply chains, as there is a dependence on a few countries for mining and processing resources and for manufacturing technologies. For solar panels, wind turbines, and batteries for EVs, at least 70 percent of production capacity was accounted for by the three largest producing countries, led by China.
At the same time, much of the mining of critical minerals is concentrated in a small number of countries, it said. For example, Congo produces more than 70 percent of the world’s cobalt, and just three countries – Australia, Chile, and China – account for more than 90 percent of global lithium production.
“If everything that has been announced to date is built, investment in clean energy technology production will be two-thirds of what is needed on the path to climate neutrality,” said IEA Director Fatih Birol. The current momentum, he said, is bringing compliance with international energy and climate goals closer. “There is certainly more to come.” dpa
Bulgaria wants to postpone the planned closure of its coal-fired power plants by about twelve years until 2038 – even though this runs counter to the country’s EU reconstruction plan. On Thursday, the Parliament in Sofia instructed the government to negotiate with the EU Commission on a withdrawal of the corresponding commitment. It stipulates that carbon dioxide emissions in the power sector should be reduced by 40 percent by the end of 2025 compared with 2019, which would be equivalent to a coal phase-out probably in 2026.
Employees of coal-fired power plants and coal mines demonstrated at Parliament in favor of postponing the closure of their operations until 2038. They complained that implementing the previous targets would jeopardize energy security and many jobs. The parliamentary decision in favor of the coal-fired power plants was eventually passed with an overwhelming majority of 187 votes in favor, with only two votes against and nine abstentions.
According to industry data, Bulgaria’s coal-fired power plants generate half of the country’s total electricity demand during the summer months. During the heating season, the figure is nearly 60 percent, he said. Most of them have already started implementing projects to diversify the fuel mix and a coal phase-out. But this cannot be fully achieved within three years, according to an open letter from the industry in November. dpa
The Chairman of Emirati state oil company ADNOC is to lead the upcoming COP28 world climate conference in Dubai as President. Sultan Ahmed al-Jabir, who is also the UAE’s industry minister, has accumulated more than two decades of experience as a managing director and in senior government positions, state agency WAM reported Thursday. “This will be a critical year in a critical decade for climate action,” al-Jabir said of his appointment.
That a top Gulf oil industry official is to head the year’s most important UN conference on climate change drew criticism. Green Party MEP Michael Bloss told the Deutsche Presse-Agentur: “The appointment lets the fox guard the henhouse. The conflict of interest is pre-programmed. Oil companies cannot credibly enforce the Paris climate goals.” The UN must draw a clear line, he said.
The Emirates are among the ten largest oil producers in the world. The COP28 world climate conference will begin on November 30 in the metropolis of Dubai. Around 70,000 participants are expected – possibly setting a new attendance record. According to the environmental organization Global Witness and the Corporate Europe Observatory, more than 600 lobbyists for oil, gas, and coal were registered at last year’s conference in Egypt. dpa
It was still there on Wednesday, but a day later, the name has been removed from the website: Parliament President Roberta Metsola is no longer a member of the steering committee of the European Parliamentary Financial Services Forum (EPFSF), according to her spokesperson. The forum is a discussion forum that brings together leading players and lobby organizations in the financial industry with MEPs and regularly invites them to policy briefs.
Europe.Table reported Wednesday, citing the website, that Metsola had not included her membership of the steering committee in her financial statement, although the parliamentary code of conduct might have required her to do so. Her spokesman now clarified that Roberta Metsola was not involved in any way in the management of the organization during this or the previous legislative term. Nor had she received any financial benefits from it. However, Metsola had not disclosed her membership in her financial declaration in the previous legislative term either.
Metsola is currently working on a 14-point plan to reform parliament. Yesterday, she discussed a first draft with the leaders of the respective parties. The plan includes stricter requirements for former MPs, a ban on friendship groups, and tighter rules on lobby meetings. It is an attempt to improve the image of parliament after the corruption scandal involving Ex-parliamentary Vice President Eva Kaili.
However, the plan has a few loopholes. For example, organizations such as the EPFSD, which provide companies and associations privileged access to parliamentarians, are not affected by the reform plans. cw
On Tuesday, Swedish Prime Minister Ulf Kristersson will present the program of the Swedish Presidency. It is one of the highlights of the coming week in Strasbourg. Others include: the meeting of the ENVI committee to discuss the recently adopted elements of the Fit for 55 package (Monday), and a debate with a resolution on Iran.
But it is, of course, the corruption scandal that will be on everyone’s minds in the EU capital in Alsace. After she was forced to vacate her post, parliamentarians must decide who will succeed Eva Kaili as Vice President on Tuesday.
As readers of Europe.Table, you already know:
Luxembourger Marc Angel is well on his way to replacing Eva Kaili in the Parliament’s presidency. The MEP was nominated on Wednesday as the official candidate of the S&D group. Socialists hope Marc Angel will be supported by the other political groups. Indeed, the main political groups agreed at the beginning of 2022 that this post would fall to the Socialists. The Greens, however, do not agree with this arrangement and are putting forward their own candidate: Frenchwoman Gwendoline Delbos-Corfield, who was also nominated by her group last Wednesday.
Parliament Speaker Metsola yesterday presented 14 proposals to make the EP more transparent. It is an attempt to polish up the image of the Parliament after the corruption scandal surrounding Eva Kaili. Some of the proposals go very far, but there are loopholes.
French Socialist MEP Raphaël Glucksmann, Chairman of the Special Committee on Foreign Interference in EU Democratic Processes, called for the creation of an investigative committee and an EU authority on transparency in public life at the European level, modeled on the French Haute Autorité pour la transparence de la vie publique (HATVP). He comes from a party, the Parti Socialiste Français, that was regularly shaken by scandals until recently. The party is struggling to turn over a new leaf.
The 14-point plan presented by President Roberta Metsola shows her firm intention to take control in this scandal that calls into question not only Parliament’s legitimacy but also her authority – and keep it. After all, their actions are closely watched by the Commission and the Council. Both institutions are anxious to ensure that this scandal does not fall on them, or does not fall on them too much. But does she really have the full support of her group in this? And that of the other parties?
The Christmas holidays could not erase the memory of the political significance of this scandal, quite the contrary. The European elections will take place next year and many fear that this scandal could be exploited by populists of all kinds. Various political headquarters are thus very interested in solving the case as quickly as possible and at the same time showing that they have learned their lesson.
The Parliament has been debating transparency and fighting corruption for 30 years, writes Olivier Costa, Director of political studies at the Collège d’Europe and Research Director at the CNRS (the French equivalent of the Max Planck Institute), in a guest editorial in the French business newspaper La Tribune. Progress has been made, he said, but it is too slow to stop particularly unscrupulous lobbyists and greedy MPs.
The current corruption scandal brings back memories of a shameful incident a few years ago: The EU Register, which has been the subject of repeated reports since the scandal was uncovered, was launched in 2011 in response to the Sunday Times “fake lobbyists” scandal. At the time, three MEPs had been lured into a trap by journalists from the British weekly newspaper and had agreed to submit amendments in exchange for bribes of up to €100,000.
Following a scandal of the magnitude currently affecting the European Parliament, it is to be hoped that anti-corruption legislation will soon change.